In tough real estate markets, agents need every advantage they can get to enhance lead generation, market understanding and client engagement strategies. And by tough, I mean volatile markets with low inventory and fierce competition — the kind where properties are gone before you can say “under contract.”

Let’s dive into five practical AI techniques that can help you not just survive — but thrive — in these kinds of markets.

1. AI-powered chatbots for 24/7 lead capture

In fast-moving markets, missing out on leads because you’re unavailable isn’t an option. This is where AI-powered chatbots come into play.

Basic approach: Start with pre-built chatbots like Drift, Manychat or Intercom. These chatbots engage with visitors on your website, answering basic questions, collecting contact info and even scheduling showings — 24/7. Whether it’s 2 a.m. or during your kid’s soccer game, your chatbot is there. However, note that these ready-made chatbots can only act as knowledge boxes in most cases. If you’d like your AI chatbot to be able to pencil in a viewing or create contact in your CRM automatically, you’d have to move to the advanced option.

Advanced approach: Take it up a notch by developing a custom AI chatbot that taps directly into your MLS data. This bot can suggest properties based on a visitor’s browsing habits and preferences in real time. Imagine a bot that not only talks to your visitors, but also recommends homes based on their last search for “3-bed homes in a quiet neighborhood.” That’s instant, personalized lead generation.

In a market where buyers are skittish and sellers are picky, this type of engagement can turn casual visitors into serious leads before they even talk to you.

2. AI-generated property brochures

Marketing in a tough market means showing up with materials that make you stand out. Manually creating brochures? A time-waster. AI-generated property brochures can make the difference here.

Basic approach: Use tools like Canva’s AI design assistant or Lucidpress to streamline your design process. But bear in mind that you’ll still need to manually enter the data — number of bedrooms, square footage and property features — into the template. Nevertheless, within minutes, you’ll have a polished, professional PDF ready to email or hand out at your next showing.

Advanced approach: Create a custom AI tool that updates these brochures in real time, tapping directly into your MLS or CRM system. Price just dropped? Photos got updated? The AI makes those changes for you.

3. AI-powered neighborhood insights for targeted outreach

In volatile markets, buyers and investors want to know everything about the neighborhoods they’re looking at — schools, crime rates, walkability scores, you name it. AI can deliver those insights instantly.

Basic approach: Use neighborhood analysis tools like NeighborhoodScout or Placer.ai to generate hyperlocal reports. These tools pull real-time data on crime, schools and market trends. Send these reports to buyers who are hesitant or undecided, and you become the neighborhood expert.

Advanced approach: Develop a custom AI system that allows clients to specify exactly what they want in a neighborhood — like “quiet streets” or “near good schools” — and the AI generates a report based on those preferences. This system can even pair those insights with property recommendations and send updates as soon as something new hits the market.

4. AI-powered property recommendations for buyers

In competitive markets, manually matching buyers with properties? No thanks. AI recommendation algorithms can do that heavy lifting for you.

Basic approach: Leverage tools like Zillow Premier Agent or Realtor.com that automatically suggest homes based on a buyer’s search history. These AI-powered platforms analyze past behavior to suggest similar properties. It keeps buyers in the loop without much effort from you.

Advanced approach: Build out a custom AI tool that goes beyond basic search criteria. Instead of just price and location, this AI tool factors in lifestyle preferences like proximity to work, preferred school districts or even pet-friendliness.

5. AI for real-time property valuation

Setting the right price is everything in a tough market. Price too high, and your listing sits. Price too low, and your client leaves money on the table. AI valuation tools are here to fix that.

Basic approach: Use platforms like Zillow’s Zestimate or Redfin’s home value estimator. These tools calculate property values based on market conditions, recent sales and neighborhood data. You can use these valuations to provide sellers with a realistic price range.

Advanced approach: Build an AI valuation system that updates in real time. This custom tool could pull data not only from comparable sales, but also from real-time demand signals like online interest in the neighborhood, local economic indicators or even buyer behavior on your own website.

If you’re navigating a tough, competitive market, don’t just keep doing the same old thing. Leverage AI. It’s a game-changer, helping you work smarter, faster and with precision that no human could replicate at scale. Whether it’s chatbots, dynamic brochures or AI-driven insights, these tools are here to help you stay competitive and close more deals.

Wes Snow, president of Dallas-based Ascendix Technologies, is a CRM and CRE technology consultant with more than two decades of expertise in CRM suites and working with real estate clients.