Can an ‘AI agent’ get homebuyers to the finish line? 

A new artificial intelligence platform designed to help buyers purchase a home — without an agent — is getting a trial run in one of the country's biggest real estate markets.

This week, Homa launched in Florida, positioning itself as an AI-powered alternative to a buyer's agent. The pitch? "Make offers on your terms, without agent pressure" — and no commissions fee — the website states. Notably, the company is only focused on buyers and made it clear that it's not trying to replace listing agents.  

An AI agent? Homa's AI tools, the company says, provide buyers with the equivalent of a comparative market analysis and "suggest a smart, data-driven offer price." Buyers can also use the platform to schedule home tours, and once an offer is accepted, Homa guides them through closing.

Homa does not represent buyers in transactions, but aims to be a cheaper, DIY option that supplies all the tools they need, said Arman Javaherian, the company's co-founder.

A prime testing ground: Javarherian, a tech veteran and former senior director of product at Zillow, said the company chose Florida as a launchpad because the state offers a friendly regulatory environment for testing AI technologies — and has a lot of experienced buyers who might be willing to give these tools a try. 

From there, he expects to begin a slow, steady rollout to other states, which all have different regulatory rules to consider.

A post-settlement opportunity: Homa's foray into the Florida housing market will test whether homebuyers are ready to use technology in lieu of agent representation. Javaherian believes the timing is right, betting that consumers will be more receptive to this approach now that they are more aware of commissions fees — and potentially responsible for paying their agent out of pocket — following the antitrust lawsuits and settlements that rocked the industry.

Giving buyers what they want? Javaherian said he started thinking about a tech-based alternative for buyers years ago when he worked at Zillow and realized that consumers were questioning the value of using an agent.

"One of the common themes that we would hear from homebuyers was that they didn't know why these agents are getting paid what they're getting paid," Javaherian said. "They felt like they're going on Zillow, finding the house, going to the open house, managing their lender. They're doing all these things themselves and then these agents come in and take $20,000, $30,000, $40,000."

Support for listing agents: While the company believes technology has reached a point where experienced buyers can purchase a home without representation, "we're not trying to replace the listing agent," Javaherian said. "There's a lot of liability and issues when you're selling a home that you need someone to be there for you."

Javaherian said Homa supports sell-side agents by prominently displaying them on listings, and the company is proactively reaching out to explain how listing agents can benefit from working with unrepresented buyers who use Homa — and why they shouldn't be afraid to do so. 

For one, when buyers use Homa it will "absolutely" result in a quicker process, Javaherian believes. "If they've decided to go through it themselves… Homa can help them get to that sophistication level and help that transaction close."

Throwing shade on portals? Despite its co-founder's ties to Zillow, Homa suggests that home search sites are not pro-buyer, stating in its FAQ: "While traditional listing sites appear buyer-friendly, they ultimately profit from the typical agent model. These platforms make money by selling leads to buyer's agents, prioritize agent connections over buyer savings, offer limited direct purchasing tools, and essentially force buyers to use agents."

Homa's tools are currently free for buyers, but the company eventually plans to transition to a flat fee.