AI is enabling some homebuyers to skip the realtor and save on commissions

HOUSTON - Would you buy a home using Artificial Intelligence instead of a realtor if it saved you thousands of dollars?  Some homebuyers have started doing just that using an AI-powered platform called Homa.

AI platform for homebuyers

What they're saying:

"I am excited. I love the backyard. That’s a big selling point for me," said DJ, a pharmacist in Tampa, Florida.

DJ is a first-time homebuyer.  But he didn't go the traditional route with a realtor.  He used an AI platform called Homa to find and purchase a $420,000 house in Tampa Bay.    

"I saved about 2.5% in commission, around $10,500, which I’m going to use for other things around the house," he said.

How it works:

Rather than signing with a realtor, Homa allows buyers to use AI to search MLS listings for the criteria they want in a home.  

"When you want to schedule a tour, we have a network of agents that get you into the home. We pay them a certain fee hourly to do that," explained Arman Javaherian, CEO and co-founder of Homa.  

When a buyer wants to make an offer, Homa offers AI-generated pricing analysis using data, such as how long a home's been on the market and comparable sales.  

But Homa also offers a human broker to help navigate the process.

"We offer a human broker that reviews the offer for you, that negotiates with the seller’s side for you, that reviews the contract, and helps you with closing, negotiating, with title, escrow, and lenders," said Javaherian.

The aim is to save buyers time and money.

"On a $500,000 home, a 3% commission would be about $15,000. That’s what a seller would pay the buyer's agent.  We capture that because we act as the agent. And during closing, we rebate all of that back to the buyer, less our $2000 fee," said Javaherian.

Critics say homebuyers may miss out on the benefit of a realtor's knowledge of neighborhoods, negotiating experience, and guidance throughout the process.  

"That’s why we have a human expert that reviews every offer, discusses offer strategy, goes over the offer, goes over the offer pricing, because every home is different," said Javaherian.  

DJ said he felt supported throughout the process as a first-time homebuyer.

"They kind of walk you through step-by-step. They have a checklist of what you're going to go through," he said.

What's next:

Homa is only available in Florida right now, but plans to expand to Texas and other states soon.

Buyers can use their own lender or Homa’s partner, called Realfinity, an AI-powered mortgage platform.