How AI is revolutionizing real estate from virtual staging to smarter home searches

• Zillow has introduced a feature allowing users to search for homes using natural language, simplifying queries by factors like commute, affordability, and school districts.
• Toronto agents are using AI tools like Besty AI and Hostfully’s InboxAI to reduce both time and costs.

Driving the News: Zillow, a leader in online real estate, last week expanded its AI-powered home-search capabilities, allowing users to search for homes using everyday language, such as “Austin homes under $400,000” or “houses near Roosevelt High School,” versus traditional filters.

• Zillow’s AI scans millions of listings to deliver tailored search results based on criteria like affordability, commute time, and proximity to schools or points of interest.
• AI is continually learning from user queries to improve accuracy and deliver better search results over time.
• Many of Zillow's key features are already powered by AI, including the Zestimate home valuation tool, and Showcase listings, which provide buyers with detailed virtual views of homes before visiting in person.

Why It Matters: With more people relying on AI-powered tools in their daily lives—whether for virtual assistants, personalized recommendations, or customer service—the real estate industry is following suit, transforming everything from home searches to property management.

• Jamie Harnish, a Toronto-based agent for Bosley Real Estate, uses AI to virtually stage homes, allowing buyers to visualize renovations or new designs with just a few clicks, saving time and money compared to traditional staging.
• Besty AI automates guest communications for vacation rentals, boosting efficiency for property managers. Launched in 2023, the startup has experienced a 34% month-over-month growth rate and now serves over 15,000 properties across 25 countries after raising $1.5 million in seed funding.
• Hostfully’s InboxAI tool streamlines guest inquiries by generating personalized, AI-powered responses using data from property management software and digital guidebooks, helping managers save time and improve guest interactions.

Industry Insight: “With major players like Zillow using AI-driven algorithms to recommend homes and predict market trends, clearly it's time to step it up,” Carrie Soave, an AI consultant to real estate brokerages, said in a LinkedIn post. “The smartest agents are already generating leads, automating tasks, and closing deals faster than ever before with AI.”