Tutorial 2/5: How ChatGPT Works for Real Estate

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Hello, and welcome to this tutorial!

Today, we’re diving into how ChatGPT works and why it’s a game-changer for real estate professionals, especially in a dynamic market like Malaysia.

What is Generative AI? Discover the magic behind ChatGPT—how it uses advanced AI to create tailored responses.

What Happens When You Ask ChatGPT a Question? See how ChatGPT processes your queries to provide localized answers, like insights into Malaysian property laws or market trends.

Accuracy Considerations: ChatGPT is powerful, but it’s not perfect. Learn why it’s essential to fact-check outputs, especially when dealing with Malaysia-specific legal or market details.

Beyond Text Generation: ChatGPT is more than just a writing tool, we’ll show you its versatility.

Real estate is a fast-moving industry where time and accuracy are everything. By understanding how ChatGPT works, you’ll be equipped to use it effectively to handle repetitive tasks, focus on client engagement, and even elevate your marketing game.

Let’s unlock the full potential of ChatGPT for your real estate journey in Malaysia. Ready? Let’s get started!

1. What is Generative AI?

Let’s start with the basics and make it relatable. Generative AI, like ChatGPT, is an artificial intelligence tool designed to create content based on patterns it has learned. Think of it as your digital assistant that can generate text, craft ideas, and even provide insights tailored to your needs—all in seconds.

Generative AI isn’t just about fancy tech terms; it’s about practical applications that make your job easier. Here’s how it can help real estate professionals in Malaysia:

Scenario 1: Generating Property Market Reports

In Malaysia’s fast-paced real estate market, staying updated on trends in areas like KLCC or Damansara can set you apart.

Prompt Example:

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"Summarize the latest property trends in Damansara for residential developments."

Output:

"Damansara’s residential market remains stable with a slight uptick in demand for landed properties. New developments like [Project Name] offer competitive pricing, with average price appreciation at 5% annually."

Why It’s Useful:

Saves time on research.

Gives you quick insights to share with clients or include in presentations.

Scenario 2: Writing Personalized Property Descriptions

Crafting engaging property descriptions can be time-consuming, especially if you’re managing multiple listings. ChatGPT makes it effortless.

Prompt Example:

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"Write a property listing for a 3-bedroom condo in KLCC with a gym, pool, and city views."

Output:

"Experience luxury living at this 3-bedroom condominium in KLCC. Enjoy panoramic city views, state-of-the-art facilities including a fully equipped gym, and a swimming pool. Perfect for families or professionals!"

Why It’s Useful:

Generates polished, professional descriptions in seconds.

Lets you focus on what matters—closing deals and connecting with clients.

Why Generative AI Matters in Real Estate

Imagine this: You’re about to meet a high-net-worth client, and they ask about the latest property trends in Bangsar. Instead of scrambling for data, you use ChatGPT to summarize it quickly and impress them with your insights. That’s the power of generative AI—it’s not just about speed, but also about enhancing your professionalism and client interactions.

Let’s now explore what happens behind the scenes when you ask ChatGPT a question!

2. What Happens When You Ask ChatGPT a Question?

When you type a question or request into ChatGPT, the magic begins! Behind the scenes, the AI goes to work, breaking down your input, understanding the context, and crafting a response tailored to your needs. Let’s make this process more relatable.

How ChatGPT Processes Your Question

Understanding Your Input:

ChatGPT dissects your question or prompt into smaller parts, analyzing the intent behind your words.

Example: If you ask, "What are the benefits of buying property with a strata title in Malaysia?"

ChatGPT recognizes that you’re asking for a localized explanation about strata title benefits.

Generating a Response:

Using its vast training data (up to 2024), ChatGPT selects the most relevant information to provide an accurate and coherent answer.

Response Example:

"Strata titles are common for high-rise properties like condominiums and serviced apartments. They ensure shared ownership of common facilities like pools and gyms and outline maintenance responsibilities."

Localized Expertise in Action

One of ChatGPT’s strengths is its ability to incorporate country-specific details, making it especially useful for Malaysian real estate professionals.

Localized Example 1: Real Property Gains Tax (RPGT)

Prompt Example:

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"Explain Malaysia’s Real Property Gains Tax (RPGT) for 2024."

Output:

"As of 2024, Malaysia’s RPGT applies to property disposals made within the first five years of ownership, with rates varying for individuals and companies. Properties held for more than five years are exempt from RPGT."

Why This Matters:

You get quick, localized insights without wading through complex documents.

Great for client consultations or when preparing investment presentations.

Why Context and Precision Are Key

The quality of ChatGPT’s response depends on how well you craft your question (or prompt). Providing clear context, like “Explain Malaysia’s RPGT” instead of just “What is RPGT?”, ensures the output is tailored to your needs.

Imagine needing to explain property ownership laws to a client in Bangsar or KLCC—ChatGPT can quickly provide concise, professional responses that save you time and build client trust.

Let’s move forward to see how to ensure ChatGPT’s outputs are as accurate as possible.

3. Accuracy Considerations

While ChatGPT is a powerful tool, it’s important to approach its outputs with a sense of responsibility. It can provide fast and contextually relevant answers, but like any AI, it has its limitations. Let’s break this down to make it practical and relatable.

Why Does ChatGPT Need Fact-Checking?

Training Data Limitations:

ChatGPT is trained on information up to 2024. This means it might not reflect recent updates in Malaysian property laws or new market trends.

Example: If RPGT rates change in 2025, ChatGPT’s response may still reflect 2024 rates unless you provide updated context.

Generic Knowledge:

While ChatGPT excels in understanding global concepts, it might lack the finer details specific to Malaysia’s property landscape.

Example: ChatGPT might confuse property tax systems in Malaysia with those in other countries, leading to inaccuracies.

Examples of Potential Inaccuracies

Here are a few scenarios where ChatGPT might not get it 100% right:

RPGT Rates:

It might provide outdated rates or fail to highlight exemptions that apply to Malaysian property owners after certain holding periods.

Property Loan Terms:

ChatGPT might generalize loan terms, missing specific details like Malaysia’s margin of financing or eligibility requirements for government-backed loans.

Regional Nuances:

Malaysia’s property market is diverse. ChatGPT might overlook key differences between landed property trends in Johor vs. Selangor.

Best Practices for Ensuring Accuracy

To make the most of ChatGPT’s capabilities while avoiding pitfalls:

Double-Check Outputs:

Always verify important details using reputable sources like:

National Property Information Centre (NAPIC): For the latest market trends and property statistics.

Jabatan Penilaian dan Perkhidmatan Harta (JPPH): For property valuation and related services.

Official Government Websites: Especially for legal updates or tax-related matters.

Collaborate with Experts:

For legal matters, consult a trusted property lawyer to ensure agreements or contracts meet Malaysian standards.

For financial insights, cross-check with licensed property consultants or bankers.

Think of ChatGPT as your helpful assistant, not a final authority. It’s great for speeding up tasks like drafting tenancy agreements or creating property descriptions, but critical decisions should always be guided by verified information and professional advice.

By combining ChatGPT’s efficiency with your expertise and due diligence, you’ll have a winning formula for navigating Malaysia’s property market.

Next, let’s explore how ChatGPT can go beyond text generation to support you in other areas!

4. Beyond Text Generation: ChatGPT’s Practical Applications

ChatGPT isn’t just about answering questions—it’s your virtual assistant for handling various real estate-related tasks, saving time, and elevating professionalism. Let’s explore how this tool can make your day-to-day work as a real estate professional in Malaysia more efficient and personalized.

a. Drafting Email Responses

Writing professional yet friendly emails can be time-consuming. ChatGPT makes this quick and seamless.

Scenario: Responding to a tenant’s rent extension request.

Prompt Example:

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"Write a polite email to a tenant who has requested an extension for paying rent in Kuala Lumpur."

Output:

Dear [Tenant’s Name],

Thank you for informing us about your situation. We understand that challenges may arise, and we are willing to grant an extension until [date]. Please confirm your ability to meet this deadline. Let us know if further assistance is required.

Best regards,

[Your Name]

Why It’s Useful:

Saves time crafting thoughtful responses.

Ensures clear and professional communication with tenants.

b. Managing Tenant Communication

Quick replies on platforms like WhatsApp can make a big difference in securing leads.

Scenario: Answering a rental inquiry about a property in Old Klang Road.

Prompt Example:

📖

"Write a friendly WhatsApp message to a tenant who is inquiring about a rental property in Old Klang Road."

Output:

"Hi [Name]! Thank you for your interest in the rental property at Old Klang Road. It’s a 2-bedroom unit with parking, available at RM1,800/month. Let me know if you’d like to arrange a viewing!"

Why It Works:

Keeps communication prompt and professional.

Maintains a personable tone to build rapport with potential tenants.

c. Summarizing Property Market Reports

Digesting dense reports can be overwhelming, but ChatGPT simplifies it into actionable insights.

Scenario: Summarizing JPPH reports on Klang Valley property trends.

Prompt Example:

📖

"Summarize the latest JPPH report trends for property sales in Malaysia’s Klang Valley."

Output:

"The JPPH report highlights a steady increase in property sales in the Klang Valley, particularly for high-rise apartments. Demand is highest in areas like Petaling Jaya and Shah Alam, driven by urbanization and infrastructure improvements."

How This Helps: