AI Agent Takes Your Commission: Can Buyers Go It Alone?

The real estate industry is undergoing a massive shift, with artificial intelligence moving from the periphery to the core of innovation. Nearly every software-as-a-service (SaaS) product in real estate is expected to be rebuilt with AI at its foundation. This isn't future speculation; it's happening now, enabling tools that can reason, respond, write, and even make strategic decisions.One of the most direct challenges posed by AI is to the traditional agent model, particularly for buyer representation. A new proptech company named Homa has recently launched in Florida, explicitly positioning itself as an AI-powered alternative for homebuyers. Homa's core pitch is designed to appeal directly to consumers concerned about costs and "agent pressure," promising the ability to "Make offers on your terms, without agent pressure" – and critically, with no commissions fee.Homa provides buyers with AI tools that offer capabilities traditionally provided by buyer's agents. This includes the equivalent of a comparative market analysis (CMA) and suggestions for a "smart, data-driven offer price". The platform also facilitates scheduling home tours and provides guidance to buyers once an offer is accepted, leading them through the complexities of the closing process.However, it's important to note that Homa does not represent buyers in the transaction. Instead, it aims to empower experienced buyers with a cheaper, do-it-yourself (DIY) option by supplying the necessary tools. The co-founder, Arman Javaherian (a former senior director at Zillow), believes that following recent industry settlements, consumers are now more aware of commission fees and potentially responsible for paying their agents out of pocket, making them more receptive to a tech-based approach that questions the value proposition of agents. Javaherian stated that a common theme from homebuyers he encountered at Zillow was questioning why agents were paid significant amounts like "$20,000, $30,000, $40,000" when buyers felt they were already doing much of the work themselves through portals like Zillow.Florida was selected as the initial testing ground partly due to a regulatory environment seen as friendly for testing new AI technologies. Homa plans a slow, deliberate rollout to other states, acknowledging the varying regulatory rules they will encounter.Interestingly, Homa has made it clear that it is not trying to replace listing agents, acknowledging the significant liability involved in selling a home that requires professional representation. They even indicate support for listing agents by displaying them prominently and explaining how working with unrepresented buyers using Homa could be beneficial, potentially resulting in a quicker closing process. This suggests a targeted disruption rather than a complete overthrow of the agent role.Homa also throws shade on traditional portals, suggesting they aren't truly pro-buyer because they profit from the agent model by selling leads to buyer's agents and prioritize agent connections over buyer savings.The company is starting by offering its tools for free to buyers but plans to transition to a flat fee model eventually.While "AI agents" like Homa challenge the traditional commission structure and buyer representation model directly, AI impacts real estate technology in other ways as well. For instance, malicious "bad bots" leveraging AI are a growing cybersecurity threat, making up a significant portion of internet traffic. These sophisticated bots can scrape contact information, crack passwords, and launch attacks. Protecting digital presence from these bots requires robust security measures and awareness. This highlights the dual nature of AI in real estate: a tool for innovation and potential disruption, but also a sophisticated element in growing cyber threats.Other tech advancements noted in the sources include the integration of digital payment solutions like Earnnest into MLS workflows to reduce agent risk and streamline transactions, the use of AI/computer vision by companies like Aivre to drastically reduce appraisal time, platforms like Rayse addressing agent value misconceptions by providing data-driven insights, new digital ad tools like Rechat Digital Ads, and partnerships bringing immersive listing products like Zillow Showcase to more agents. Even significant funding rounds for proptech companies like Adam Neumann's Flow ($100M+ raised, $2.5B valuation focusing on rentals/co-living) show continued investment and belief in technology reshaping the industry, though Flow's focus is different from direct transaction-level buyer tools like Homa's.Navigating the "AI agent world" requires agents and brokers to get smart fast. Experts like Kevin Hawkins are in the trenches, teaching professionals how to practically use AI to write better, work faster, and compete smarter. This includes understanding simple explanations of AI, learning top ways agents save time using it, and avoiding ...