AI is changing real estate fast. Here’s a plain-English glossary of every term you’ll encounter.

A

AI (Artificial Intelligence) — Software that performs tasks requiring human-like thinking. In real estate: writing listing descriptions, responding to leads, analyzing market data, and generating marketing content.

AI-Powered CRM — A customer relationship management system with AI features. Tools like Lofty and Follow Up Boss use AI to auto-respond to leads, suggest follow-up timing, and prioritize your pipeline.

Automated Valuation Model (AVM) — AI that estimates property values using comparable sales, market trends, and property data. Zillow’s Zestimate is an AVM. Useful for quick estimates, not a replacement for a CMA.

C

Chatbot — An AI that responds to messages automatically. Real estate chatbots on your website can answer visitor questions, capture lead info, and schedule showings 24/7.

ChatGPT — The most popular AI assistant. Useful for listing descriptions, client emails, social media content, and market report narratives. Free or $20/month.

CMA (Comparative Market Analysis) — AI can help generate the narrative portion of a CMA, but the data and pricing judgment are still yours.

Context Window — How much information AI can process at once. A larger context window lets you paste an entire market report and ask for a summary.

E

Epique AI — An AI platform built specifically for real estate agents. Templates for listings, emails, social posts, and neighborhood guides. Free tier available.

G

Generative AI — AI that creates new content. When ChatGPT writes a listing description, that’s generative AI. When an AVM estimates a price, that’s analytical AI — different thing.

H

Hallucination — When AI makes up information that sounds real. It might invent neighborhood statistics, school ratings, or property features. Always verify AI-generated facts against actual data.

I

IDX (Internet Data Exchange) — The system that lets you display MLS listings on your website. AI is increasingly integrated with IDX to provide smart search and recommendations to visitors.

L

Lead Scoring — AI ranking your leads by likelihood to convert. Based on behavior (website visits, email opens, response speed). Helps you focus on the leads most likely to transact.

Lofty (formerly Chime) — An AI-powered real estate CRM. Auto-responds to leads, qualifies them through conversation, and manages your pipeline.

M

Machine Learning — A type of AI that improves with more data. Your CRM’s lead scoring gets better over time as it learns which leads actually converted.

MLS (Multiple Listing Service) — AI tools are increasingly integrated with MLS data for automated market reports, listing descriptions, and competitive analysis.

N

Natural Language Processing (NLP) — AI understanding and generating human language. Every AI writing tool uses NLP. It’s why ChatGPT can write a listing description that sounds natural.

P

Predictive Analytics — AI analyzing data to forecast future trends. In real estate: predicting which homeowners are likely to sell, which neighborhoods will appreciate, or when a lead will be ready to buy.

Prompt — The instruction you type into an AI tool. “Write a listing description for a 3-bed ranch in Oak Park” is a prompt. More specific prompts = better results.

R

Retargeting (AI-enhanced) — Using AI to show ads to people who visited your website or listings. AI optimizes which ads to show, when, and to whom.

S

Smart Home Integration — AI-powered home features (thermostats, security, lighting) that are increasingly relevant in listings. Mentioning smart home features in AI-generated descriptions can improve appeal.

T

Token — The unit AI uses to process text. Affects how long your prompts and responses can be. Most agents never need to think about this — the tools handle it.

V

Virtual Staging — AI that digitally furnishes empty rooms in listing photos. Tools like Virtual Staging AI and Stagezy can stage a room for $15-30 vs $2,000+ for physical staging.

Voice AI — AI that handles phone calls. Some real estate teams use voice AI to answer initial inquiry calls, qualify leads, and schedule showings.

---

Bookmark this page. We update it as new AI real estate tools emerge.