Can We Trust AI With Property Research? Comparing SRX, EdgeProp, PropertyGuru, 99.co, and Ohmyhome

For decades, artificial intelligence (AI) technology has made its mark across various industries, and now it’s reshaping the Singapore real estate market, influencing how properties are bought and sold.

During the peak of the pandemic, when we were all confined to our homes due to government restrictions, property viewings were revolutionised by 3D virtual tours. Buyers could explore properties without leaving their homes, let alone their beds, and sellers gained a wider pool of potential buyers.

These days, it is predictive analysis that has become one of the most common uses of AI in Singapore’s property market. AI tools developed by SRX, EdgeProp, PropertyGuru, 99.co, and Ohmyhome leverage algorithms to generate home valuation estimates. 

From instant home valuations to property recommendations, the traditional role of human property agents faces a formidable challenge. However, with the market saturated with such tools, and each one offering varying home valuations, choosing the right one can be tricky. Now the questions arise: Should you prioritise the efficiency and objectivity of AI, or should you continue to rely on the expertise and personalised service provided by property agents?

 

Pros and cons of using AI tools for property research

Where before you had to wait, and pay, for an official home valuer from, let’s say, HDB, now you can just tap a few buttons and receive an estimated home valuation—and is updated every month so you can track any changes — instantly. (You don’t have to pay for a bank valuation, but there’s no guarantee on how quickly you can schedule an appointment for the appraisal.)

The funny thing is, in this very specific case of home valuation estimates, property agents are just as reliant on AI as you are. Their presentations or reports on the property market are often gleaned from AI tools such as Homer AI or SRX X-Value. 

AI Pros	AI Cons
Efficiency: AI tools can provide instant property valuations or recommendations, saving time.	Lack of Personalization: AI tools may not offer the personalised guidance and expertise of human agents.
24/7 Availability: AI tools are accessible anytime, allowing users to research properties at their convenience.	Limited Contextual Understanding: AI may struggle to understand complex nuances or specific preferences of individual buyers or sellers.
Objective Analysis: AI tools offer data-driven, unbiased property valuations and recommendations.	Potential Technical Errors: AI algorithms may produce inaccuracies or errors in property valuations.
Cost Savings: Using AI tools for property transactions may be more cost-effective than hiring human agents.	Less Emotional Intelligence: AI cannot empathise or understand the emotional aspects of property transactions.
Privacy: Users can explore properties privately without direct human interaction.	Limited Negotiation Skills: AI may not possess the negotiation skills or tactics employed by experienced human agents.
Access to Comprehensive Data: AI tools can process vast amounts of data from various sources, providing comprehensive insights into the real estate market.	Dependency on Data Quality: AI tools heavily rely on the quality and availability of data, which can impact the accuracy of their recommendations.

Pros and cons of using property agents for property research

In a Reddit thread, some people see property agents as “sharks” who “love money” because they are in a “commission-based job”. There is some truth to this, as the commission earned on selling and leasing homes tends to rise with higher home prices and rentals. Commission rates can be 3-4% for private properties and 2% for resale properties. 

However, such generalisations can be harmful as it stigmatises an entire profession based on the actions or perceptions of a few individuals. While it’s true that some property agents may prioritise their financial gain over their client’s best interests, there are property agencies that have effectively removed commission-based real estate advisory by hiring full-time, salaried property agents and offering fixed fees for their services. 

Property Agent Pros	Property Agent Cons
Personalised Service: Human agents offer personalized guidance tailored to the specific needs of buyers and sellers.	Limited Availability: Human agents may have restricted availability, leading to delays in communication or assistance.
Expertise and Experience: Human agents bring expertise, market knowledge, and negotiation skills to the table.	Subjectivity: Human agents’ opinions and recommendations may be influenced by biases or personal preferences.
Emotional Intelligence: Human agents can empathize and understand the emotional aspects of property transactions.	Potential Cost: Hiring a human agent typically involves paying commissions or fees, increasing the overall cost of property transactions.
Contextual Understanding: Human agents grasp complex nuances and preferences, providing customized recommendations.	Dependence on Agent’s Expertise: The quality of service may vary depending on the expertise and experience of the individual agent.
Negotiation Skills: Experienced human agents are skilled negotiators, advocating for their clients’ interests.	Potential Conflicts of Interest: Human agents may prioritize their own interests or agendas over those of their clients.
Face-to-Face Interaction: Human agents provide direct, face-to-face interaction, fostering trust and rapport with clients.	Reliance on Manual Processes: Human agents may rely on manual processes, leading to slower response times or errors in information dissemination.

Putting the AI tools to the test: How much does a 4-room resale HDB flat (818 sq ft) in Toa Payoh Central cost?

Almost all AI tool providers claim to do the same, so it will also benefit you to compare the different home valuation estimates from each AI tool. So let’s take a look at how SRX, EdgeProp, PropertyGuru, and Ohmyhome valued this 4-room resale HDB flat in Toa Payoh Central. 

4-room resale HDB flat (818 sq ft) in Toa Payoh Central
SRX – X-Value Home Report	$744,000
99.co – Property Value Tool	$744,000
PropertyGuru – Property Valuation Tool	$799,634
EdgeProp – Edge Fair Value	$760,000
Ohmyhome – Homer AI	$777,000

Based on the most recent transaction of a 4-room flat in the same block, which was sold at $788,000 in December 2023, the closest estimated home value came from Ohmyhome’s Homer AI. PropertyGuru’s estimate was a little too high, and SRX, 99.co, and EdgeProp’s were lower. 

As a rule of thumb, your home valuation should not be significantly lower or higher than the last transacted price in your HDB block, condo development, or surrounding area. If you price your property too high, you stand to lose genuine buyers; price it too low and you’ll shortchange yourself. 

 

I still can’t decide. How do I choose which AI tool to use? 

When choosing to decide which AI tool to use, you can also consider its comprehensiveness and user-friendliness. For example, Homer AI by Ohmyhome has integrated various functionalities, such as financial calculators and market trend dashboards based on historical transaction data, into a single platform, streamlining your buying and selling journey. It has also integrated a Singpass verification system to authenticate property ownership and provide the most accurate home valuation estimate.

However, it must be acknowledged that the accuracy of these AI tools relies heavily on the quality, availability, and accessibility of property data. For instance, the availability of private property transaction data can be limited as it relies on caveats lodged in URA, which may not occur automatically. Therefore, there may be fewer transactions to draw comparisons from when an AI tool is generating a home valuation estimate, leading to potential inaccuracies or errors.

That said, the convenience AI tools offer is still unparalleled. With AI technology, you can make informed decisions about property transactions without extensive manual research and additional costs. In contrast, hiring a property agent will require you to pay up to 2-3% commission, or even 4% at times, which increases the overall cost of your property transaction. Some AI tools also require you to upgrade to a paid subscription plan after a period of time, but overall, they remain to be more cost-effective. 

You’ll also have to depend entirely on your property agent’s expertise and experience, which does vary, and so the advice you receive may not be as extensive as what an AI tool can provide. Not to mention that property agents are just as reliant on technology.

AI tools can process vast amounts of data from various sources and are therefore able to provide comprehensive insights into the property market. They’re also available 24/7 and can be accessed from anywhere, unlike property agents who are often restricted by a packed schedule, leading to delays in communication or assistance. 

However, property agents can empathise and understand the emotional aspects of property transactions. In sensitive cases such as divorce, death, or bankruptcy, they grasp the complex nuances of the situation and can provide custom recommendations accordingly. 

On the other hand, these circumstances may also call for a more objective analysis. Some sellers and buyers may appreciate the data-driven approach of an AI tool. There’s always a risk when working with a property agent, for biases, personal agendas, or conflicts of interest to affect the transaction. 

Incentives such as referral programs, where users are rewarded for sharing their experiences and expanding the platform’s reach, add extra value to AI tools. With Homer AI, you can receive a $5 incentive for each home connected to Homer AI using your unique referral link.

There’s no real way of telling where the pendulum will swing in the future; if AI will replace property agents. Chances are high that the new generation of buyers and sellers—who are younger, highly educated, and tech-savvy—will choose to represent themselves in a property transaction. However, it will take some time before the traditional way of transacting property with agents is completely phased out. There is still the very important matter of data security and governance when using AI tools, which are essential in fostering trust, mitigating risks, and maximising its benefits.

 

Found this article useful? Share it with your friends!

 

---

About the author

Maelyn Lagman has been in the property industry for over 5 years and is currently a Content Marketer at Ohmyhome, a customer-centric property technology platform in Singapore that provides end-to-end property solutions and services for buying, selling, renting, renovating, and managing properties. 

Since its launch in 2016, Ohmyhome has transacted over 14,500 properties and received more than 8,000 genuine reviews with an average rating of 4.9 out of 5 stars. Today, Ohmyhome is the first Singaporean company listed in the US this year and the first women-only founded proptech company listed in the US. 

---