Real Estate Leaders Debate Buying vs. Building AI Tools

Real estate leaders are grappling with the strategic decision of whether to buy or build artificial intelligence (AI) tools to integrate into their workflows, a critical step for success in the housing industry. This debate was a central theme during a session at HousingWire’s AI Summit held on Tuesday afternoon in Dallas. Tyler Morton, broker-owner of REMAX Victory + Affiliates and founder of TroyOS, an AI operating system designed for real estate brokerages and agents, shared his experiences with the "build" approach. Morton's initial attempt to create an AI tool for streamlining communication between himself and his agents proved unsuccessful because the tool did not meet the agents' needs, addressing a problem for him rather than for them. This led him to pivot and redesign the tool as a text-message-based system, a more accessible interface than requiring agents to download and use a new application.

Morton's decision to build his AI solutions stemmed from a desire to improve the agent experience, which he described as using "duct taped together" tools, without necessitating a complete overhaul of existing systems. He acknowledged that for common needs shared across many brokerages, purchasing an existing solution is often more practical and efficient. Morton stated that if a particular functionality is a universal requirement, it has likely already been developed to a high standard by third-party vendors, making it redundant to "reinvent the wheel" by building a new CRM, for example, when well-established options exist.

Brooke Anderson-Tompkins, founder and CEO of Bridge AIvisory, also participated in the discussion, offering insights into the AI adoption landscape for real estate businesses. While the provided text does not detail Anderson-Tompkins' specific recommendations or experiences, her presence alongside Morton indicates a broader industry-wide consideration of AI integration strategies. The core challenge for real estate companies lies in identifying which AI functionalities offer the most significant competitive advantage and determining the most cost-effective and operationally sound method for their acquisition. This involves evaluating the trade-offs between the customization and control offered by in-house development versus the speed of deployment and established expertise associated with purchasing off-the-shelf solutions.

The discussion highlighted that the "buy vs. build" dilemma is not a one-size-fits-all answer but depends on the specific needs of the brokerage, the maturity of available AI technologies, and the internal capacity for development and maintenance. Companies must carefully assess their unique operational challenges and strategic goals to make informed decisions about AI investment. The ongoing evolution of AI capabilities means that this strategic evaluation will likely be a continuous process for real estate firms aiming to leverage technology for enhanced efficiency, agent productivity, and client service. The summit provided a platform for industry leaders to share practical insights and foster a deeper understanding of AI's transformative potential within the real estate sector.