Use of AI in Real Estate Buyers Agents Blogs

Many are amazed by the power of AI. So we decided to put one of the most popular AI engines to the test on 18 Jan 2023. We asked OpenAI to write a blog about the current Melbourne Property market. And this is how it went:

> Write a blog about the current Melbourne property market.

The Melbourne property market is booming right now, with strong demand from buyers and rising prices. In recent months, house prices have shot up by as much as 10% in some parts of the city, while apartments have also seen significant increases.

The demand for housing in Melbourne is being driven by a number of factors. A strong economy and population growth are both key drivers, with the city’s population expected to exceed five million by 2041. The city’s affordability and liveability are also factors, with Melbourne having some of the most affordable property prices in Australia and consistently ranking highly in global quality of life surveys.

The result is that buyers are increasingly looking to the Melbourne property market for their housing needs. This has caused prices to rise rapidly, with some areas seeing double-digit growth in recent months. This has been particularly true for apartments, with demand for inner-city units increasing as people look to take advantage of the city’s vibrant lifestyle.

Investors have also been pouring money into the Melbourne property market, with many seeing it as a safe and lucrative option in the current market. Low interest rates and strong rental returns have made investing in the city an attractive proposition, and many investors are taking advantage of the current market conditions.

Overall, it’s a great time to be in the Melbourne property market. Prices are rising, and there is strong demand from both buyers and investors. This is likely to continue in the coming months as the city’s population and economy continues to grow.

How do you rate this article?

How accurate is this AI generated blog:

Information presented here is largely generic. If a reader is well read (which most readers are, these days), they would have read these information many times.

What is wrong with this AI generated information

1. Melbourne's population has already exceeded 5million. It exceeded 5 million back in 2019, 3 years ago.

2. AI's views re buying apartments is incorrect. Apartments are seldom recommended, if you do not need the convenience. There is a sever oversupply of apartments in Melbourne. So, resale and valuation of apartments are very often a hundred thousand below

3. Median apartment sold prices might have increased, due to the Melbourne government's Zero stamp duties for apartments, and developers aggressively giving incentives for sales agents to sell the left-over new units, and developers giving aggressive cash backs to buyers. In this sense, the AI failed to understand the dynamics that's happening, failed to understand the pricing dynamics and what's happening on the ground, simply because these information IS NOT available in the internet. The AI generated blog doesn't value add to the information.

4. At the time this AI generated the blog (jan 2023), the Melbourne property market is going through a decline, after months of interest rates hikes.

Implications for the Buyers Agents using the AI

In its current state, if a buyer's agent were to operate without a good understanding of what's happening on the ground, they will be making the wrong recommendations, and ultimately, their clients will be the one suffering. Would you be buying an apartment, because the AI has mentioned it and indirectly recommended it?

This is an issue with buyers agents or buyers advocates, buying in states and cities which they are unfamiliar with. Our director and founder, Rayson, holds a PhD in Big Data and has over 30+ years experience in data analytics, data mining and big data, and almost 10 years as buyer's advocates. Here are his views of data and information.

Data don't lie. It is true. However, there are problems with this statement:

1. Data is lagging. Data only reflects what HAD happened. It does not necessarily predict the future.

2. How the data is interpreted will lead to what information is derived from the data. Data cannot be interpreted in a stand alone manner. To derive accurate and meaningful information from the data, you will need to overlay the data with what's happening on the ground. And this, unfortunately relies on the skills and experience of the interpreter.

Now, the next problem... the notion that "Data Don't Lie" has been abused by the interpreter or sales agents, to CONvince buyers. Thus... you need to be wary of where you get the data and information from and who is presenting them.

In some languages such as Hokkien, Artificial Intelligence (AI) is loosely translated into Keh Kiang, which means being a smart ass. And unfortunately in its current state, it is.

Let us know what you think of the AI's view of the Melbourne Real Estate Market.