Homebuyers are increasingly leveraging artificial intelligence to reduce real estate fees, with some saving tens of thousands of dollars. This emerging model targets buyers who conduct their own property searches and attend open houses but desire expert assistance for offers, contracts, and the closing process without incurring traditional percentage-based commissions.
AI-powered brokerages like TurboHome are introducing flat-fee structures. TurboHome, which launched in late 2024, charges a set fee at closing. If the seller agrees to a buyer-agent commission that exceeds this fee, TurboHome rebates the difference to the buyer. For instance, on a $1.5 million home with a 3% buyer-agent commission ($45,000), TurboHome would retain its $12,000 flat fee and return the remaining $33,000 to the buyer. These rebates can be applied to closing costs, mortgage rate buy-downs, or, in some cases, received as cash post-closing.
TurboHome reports facilitating 388 transactions totaling $440 million in home sales. The company's CEO, Ben Bear, described the new platform as "Zillow on steroids," highlighting its ability to automate tasks such as comparable sales analysis, disclosure reviews, and property recommendations. The AI-driven dashboard allows buyers to search properties using conversational queries, request valuations, book tours, and initiate offers, while remaining connected to both an AI assistant and a human agent through a single interface.
Ravi Surampudi, a software engineer, is set to receive a $21,750 rebate after purchasing a $1.125 million home. In his case, the builder agreed to pay a 3% buyer-agent commission, and TurboHome's flat fee structure allowed Surampudi to benefit from the remaining amount. Surampudi noted that the model suited his needs as he and his wife had already identified their desired property. "TurboHome’s model made a lot more sense for us because we are getting the best of both worlds," Surampudi stated, referring to the combination of closing cost credits and human agent support.
Melissa Pereira, who purchased a $625,000 property in Roseville, California, also found savings through TurboHome. In her transaction, TurboHome charged the seller a flat fee, which reduced the overall commission cost and allowed money to be used to lower Pereira’s purchase price. She estimated this arrangement saved her approximately $10,000. "If you’re trying to buy in a more competitive area, TurboHome is an excellent tool," Pereira said, particularly for second-time homebuyers who know what they are looking for.
Industry professionals acknowledge that AI-powered brokerages could increase pressure on traditional commission structures, especially for less complex transactions. Bob Miller, broker and owner of Millshire Realty, believes technology will transform the industry but not eliminate agents entirely. "I don’t believe AI signals the end of the real estate agent, but I absolutely believe it will change the industry," Miller stated. He suggests that AI might handle simpler deals, while more complex purchases will continue to rely on human judgment, experience, and relationships. Miller emphasized that the primary impact of AI may be forcing agents to better justify their value. "AI isn’t going to eliminate the real estate agent. It’s going to force real estate agents to prove what their human expertise is actually worth," he said.
Concerns regarding data privacy and consumer protection have also emerged with the rise of AI in real estate. TurboHome states it utilizes third-party AI models without using consumer data for training, processing chat messages, files, and buyer profiles for personalization but not sharing sensitive information with external entities. Miller noted that as automation increases, scrutiny of data handling is warranted. "There are also legitimate privacy and consumer-protection concerns," he said. "Real estate transactions involve sensitive financial and personal information, so consumers need to know how that data is being stored, protected and used."