AI Frameworks

AI Real Estate Glossary

Comprehensive definitions of the AI frameworks and methodologies taught by Build Things That Build Things. These frameworks transform how real estate professionals leverage AI for competitive advantage.

Jump to:

Context Engineering • The 5 Essentials • HOME Framework • OODA Loop • Strategic Displacement • Context Cards • 80/20 Rule
CE

Context Engineering

Context Engineering is the practice of pre-loading AI systems with high-signal tokens—your voice, brand DNA, market expertise, and common objections—to maximize output quality and consistency.

Unlike generic prompting which starts from scratch every conversation, Context Engineering creates reusable briefing documents that train AI to understand your unique positioning. The result: 95% usable outputs without editing, generated in seconds rather than hours.

Context Engineering for real estate includes: voice patterns and communication style, local market expertise and neighborhood knowledge, common buyer/seller objections with your responses, brand guidelines and messaging preferences, target client personas and their priorities, and property description templates.

Key Insight: Context Engineering is the difference between "generic AI slop" and "this sounds exactly like me." Agents who master this get 95% usable content on the first draft while others constantly edit and rewrite.

5E

The 5 Essentials

The 5 Essentials is the formula for writing effective AI prompts. Every complete prompt covers five elements that ensure AI understands exactly what you need.

1

Task

What you want the AI to do—the specific action or output you need

2

Audience

Who will consume the output—first-time buyers, luxury sellers, investors

3

Channel

Where it will be published—MLS, social media, email, website

4

Materials

Specific data and context—property details, market stats, client info

5

Style

Tone, voice, and formatting—professional, casual, length, structure

Key Insight: Agents who master the 5 Essentials get 95% usable outputs without editing. Like a listing agreement, if you leave a blank, the prompt is invalid—this framework eliminates the guesswork.

H

HOME Framework

The HOME Framework is a structured workflow for AI-assisted content creation in real estate. It ensures every piece of content has both emotional resonance and factual grounding.

H — Hero

Identify the protagonist and their challenge. Who is this content for? What problem are they facing?

O — Outcome

Define the desired transformation or result. What does success look like for your hero?

M — Materials

Gather facts, data, and supporting information. Ground your content in verifiable details.

E — Execute

Prompt the AI with complete context. Combine your Hero, Outcome, and Materials into a comprehensive request.

Key Insight: HOME turns 8 hours of analysis and writing into 20 minutes. It prevents the two biggest content failures: content that's emotionally flat (missing Hero/Outcome) or factually weak (missing Materials).

O

OODA Loop for AI

The OODA Loop for AI adapts military decision-making theory to AI workflow optimization. Originally developed by military strategist John Boyd, this framework helps agents systematically identify and automate tasks.

O — Observe

Gather data about your current workflows and bottlenecks. Track where your time actually goes.

O — Orient

Analyze which tasks are candidates for AI automation. Consider leverage and replaceability.

D — Decide

Select specific AI tools and implementation approach. Prioritize high-impact, easy-to-automate tasks.

A — Act

Deploy the solution and measure results. Then return to Observe and refine.

Key Insight: OODA is iterative. Agents who cycle through OODA repeatedly make faster decisions than competitors stuck analyzing or implementing without feedback.

SD

Strategic Displacement

Strategic Displacement is the practice of ruthlessly identifying and replacing low-leverage administrative tasks with AI automation, allowing agents to focus exclusively on revenue-generating activities.

Unlike general automation advice, Strategic Displacement uses a Job Audit methodology to categorize every task by two dimensions:

  • → Leverage — How directly does this task impact revenue?
  • → Replaceability — How suitable is this task for AI automation?

Tasks that are low-leverage and highly replaceable become immediate displacement targets. The goal is not to work less, but to work only on activities that directly generate commissions.

Key Insight: Most agents have 15-20 hours per week of "admin rot"—necessary but low-leverage tasks that AI can handle. Strategic Displacement recovers that time for closing deals, not busywork.

CC

Context Cards

Context Cards are structured briefing documents organized in a 4-layer hierarchy that provide AI systems with persistent context across conversations.

L1

System Layer

Your identity, role, and core positioning. Who you are and what you do.

L2

Voice Layer

Communication patterns, phrases you use, phrases you avoid, tone preferences.

L3

Knowledge Layer

Market expertise, property types, client personas, local knowledge.

L4

Task Layer

Specific instructions for the current request—changes per conversation.

Key Insight: Context Cards solve the "starting from scratch every time" problem. Layers 1-3 persist; only Layer 4 changes per task.

80

The 80/20 Rule for AI

The 80/20 Rule for AI states that 80% of an agent's results come from 20% of their activities—and AI should automate the other 80% so agents can focus on the high-leverage 20%.

Also known as the Pareto Principle, this framework guides Strategic Displacement by prioritizing automation of administrative tasks while preserving human involvement in high-impact activities.

Automate (80%)

  • • Transaction coordination
  • • Email triage and responses
  • • Content creation
  • • Listing descriptions
  • • Follow-up sequences

Preserve Human (20%)

  • • Relationship building
  • • Price negotiations
  • • Strategic decisions
  • • Complex problem-solving
  • • High-stakes conversations

Key Insight: The goal isn't to work less—it's to spend more time on the 20% of activities that generate 80% of your commissions.

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