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Experts Have Mixed Thoughts On Artificial Intelligence In The Real Estate Industry 

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Artificial intelligence has embedded itself in nearly every industry around the world, and real estate is no different. Agents and experts use AI to write listing descriptions, draft marketing emails, develop social media posts, enhance listing photos, and much more. 

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Individuals within the industry are divided, the same way everyone is when it comes to AI and how it’s used. Many think that AI generated descriptions and enhanced photos of listings are untruthful, flat, and generally inauthentic. 

Pritesh Samani, chief technology officer for The Real Brokerage, argued to Real Estate News that the “AI slop” narrative misses the point of how this technology can, and is, used. 

“I don’t consider it slop. I consider it just better content. AI is already better than humans at many tasks — and continuing to improve quickly. The real change isn’t quality but scale: AI can produce an overwhelming amount of content in a short period of time,” Damani told the publication. 

“Every time I do something, I ask myself, ‘How can I get an AI to do this?’ Start replacing yourself actively while you’re in control of it.” 

Holly Mabery, eXp Realty’s chief brokerage officer, said that the rise of AI in general feels like “a cautionary tale.” 

“It reminds me of Milli Vanilli. What’s real and what’s not? At the core of everything, it has to be you. We have to go to the heart of how you are going to show up for that client.”

This is the biggest argument surrounding AI in so many of the industries it’s become embedded in. Authenticity is integral when it comes to buying or selling property. 

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“What is real and what is not? At the core of everything, it has to be you. We have to go to the heart of how you are going to show up for that client,” Mabery said. 

She added that while AI can enhance and automate busywork, it can’t replace human credibility, and that;s already shaping brokerage policy. Mabera said that eXp updated their listing agreement last fall to fully disclose that AI may be used in the creation of marketing materials, and the company has begun training agents on best practices regarding photo enhancement and virtual staging. 

“We wanted to get out in front of it. People should know what’s real and what’s been virtually enhanced,” she said. 

Wendy Gilch, a research fellow with the Consumer Policy Center, said AI’s risks go beyond just marketing as well. “If you’re blindly using it and taking the first answer it’s given you to make really big decisions, that’s really dangerous,” she said.

“If an agent is using AI to do the research, to do maybe a lot of the things that they may have done in the past, I can see why people would question, ‘Why am I paying you?'” she said.

“Those are the types of issues that the industry should be trying to get ahead of. In 10 to 15 years, are we going to look at [our approach to] AI and think, ‘We probably should have done this differently’?”

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Emphasizing Innovation And Community In Real Estate 

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The real estate world is constantly changing and developing. In order to feel confident in buying or selling one’s property, finding the right real estate agent is integral.

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Olympian Jordan Chiles States Her Interest In Entering The Real Estate Industry 

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23-year-old two-time Olympian Jordan Chiles made headlines this summer for her incredible performances representing the USA at the 2024 Paris Olympics. While the athlete is planning on continuing her professional gymnastics career, in a recent interview she stated what she could see herself doing career-wise in the future. 

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“The future is such a huge word, but there are so many things that you can do within that future,” Chiles said during the Teen Vogue Summit.

“Whenever that happens, I’m going to go into real estate. I love building. I love being creative. I love seeing things just be designed in different ways. That’s one thing.”

Chiles and her fellow Olympian and close-friend Simone Biles have both been sharing their interests and journeys into the real estate sector. 

Biles has been sharing online the process of building her dream home with husband Jonathan Owens. The couple bought a plot of land back in 2023 and began developing and building their home in March. 

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More recently, in October, Biles went online to state that construction is only a few projects away from being completed.

“Updating y’all on my bye week from tour. Obviously had to check in on the progress at the new house,” Biles wrote on her Instagram.

Both Chiles and Biles homebuying and building experience will help them develop a future in the industry, as it’s currently unclear whether or not Biles and her husband will continue to build their portfolios after developing their property this year. 

Chiles has referred to Biles as a big sister, they’ve both supported each other as they competed in the 2024 Games, and in their own personal lives as well. It’ll be interesting to see the future for the two and what other industries the two powerhouses will enter as they continue their successful careers. 

How To Avoid Cyber Criminals In Real Estate 

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Now that we’re heading towards the end of the Covid-19 pandemic, the real estate industry has been able to thrive thanks to an influx in prospective buyers who are ready for a change of scenery. Real estate wire transfer scams and crimes also tend to rise when the market is doing well due to the amount of transactions occurring, so how can we avoid them? 

Wire fraud typically occurs in the real estate industry when a scammer poses as a trusted source, like a vendor, company, or family member. These individuals always request an immediate wire transfer of funds, and often make up some sort of emergency as a way to emotionally manipulate the victims out of the money. 

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According to the American Land Title Association, more than 11,600 individuals were victims of real estate wire transfer fraud in 2019. Experts claim that number has increased exponentially throughout the pandemic, and it likely will continue to get worse. 

These hackers aren’t your typical trolls who try to get you to click a link so they can access all your personal information. They follow the entire real estate process from start to finish, posing as fake real estate agents and figure heads to get their victims to feel safe in their transactions. 

These hackers are able to acquire the money once they deceitfully reroute the closing instructions for the wire transfer. At the end of the transfer, where a certified check would typically appear to make sure the transaction is legitimate, these hackers instead just complete the exchange and take the money. 

These sort of crimes have been on the rise in the past year due to the amount of real estate transactions that have now been occurring online. It’s becoming harder and harder for buyers to determine who’s a trusted agent and who could potentially scam them. 

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According to ABC News, some of the best things you can do as a prospective buyer, when it comes to determining the legitimacy of your transaction, is “read and double-check everything carefully. Always forward emails, never reply. Remember, a title company will never create urgency or urge you to move quickly.”

“Verbally verify everything through a phone number you recognize. Change your passwords regularly, never email financial information, and always report suspicious activity.”

Michael McKenna, the president and co-founder of Weichert McKenna & Vane, spoke to the media recently about what he tells his clients to look out for in order to protect themselves and their money: 

“You really want to focus on validating the wire instructions with a phone call and verifying the phone numbers and verifying the wiring information, the account numbers that you are sending and receiving monies to and from. That verification on the phone, understanding that you are talking to a voice that you’ve probably spoken to before and you trust in that voice, is very critical.”

NYC Real Estate

New York City Luxury Real Estate Expected To Thrive In 2021

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Based on New York City real estate’s last quarter of 2020, the luxury sector of the market is expecting to thrive in 2021. Sales of homes that cost more than $4 million increased slightly when compared to how they were selling this time in 2019; a surprising shift in the market considering we’re currently in the worst phase of the Covid-19 pandemic yet. 

Donna Olshan is the president of luxury real estate broker Olshan Realty who claims this increase is partially due to “a demand that was never met because we lost the most important real estate quarter to the pandemic – the spring. The upward tick also occurred because most of these sales are [to] New Yorkers, or from the New York metro area, betting on the home team. They are getting Covid-19 discounts, they’re looking at the long-term prospects of New York, and they’re buying.”

Jonathan Miller is the president and chief executive officer of Miller Samuel appraisers who thinks that NYC will see a major uptick in sales in 2021 because while many made the move to the suburbs during the pandemic, that craze will soon be over as the world begins to reopen. 

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“The way I think of the suburbs is that they had their moment. The ‘fleeing the city’ narrative is already extremely dated. While suburban sales are still up year over year, it’s just no longer a rocket ship of growth.” Miller also believes that this over-saturation of individuals in these suburbs are going to drive those markets way up, along with the prices of property. “And the jump in pricing, largely caused by what I would call panic buying—where people left the city out of fear—that was front end-loaded, and I don’t see a compelling reason why that [price growth] can be sustainable.”

Olshan believes that Brooklyn in general will stay as hot on the market as it has been; the pandemic hasn’t really impacted the real estate in the borough. “Luxury” real estate in Brooklyn is also much “cheaper” when compared to what’s considered luxury on the Upper East Side. Any home over $2 million in Brooklyn is considered luxury, which according to Miller is the main reason the area is so popular. 

“Brooklyn is certainly accelerating, and I don’t see any reason for that to stop I mean a million dollars buys you more space, and once you get into that luxury sector, that value grows quite a bit.”

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Foreign buyers investing in luxury New York City properties throughout the pandemic have certainly helped keep the industry, and economy, afloat, however, this has also caused the pricing to increase exponentially, and considering we’re in the middle of one of the worst economic disasters in US history, less American investors are likely to purchase these properties. 

In Manhattan this will especially be an issue considering how large the luxury condominium market is now in the borough, which Miller describes as being “burdened with a tremendous amount of supply.” 

“In 2020 we had 8.7 years of sellout, meaning it would take 8.7 years to sell all unsold Manhattan new-development condos. That is likely to drop to 7.2 years in 2021, because there’s an anticipated decline of new products coming into the market. Plus, additional sales will occur as buyers are drawn by discounted pricing. I think in 2021 we’ll see a continued drop in price trends.”

The next few months will be determined by how well the economy is able to recover with the new Covdi-19 economic relief packages, as well as how the country begins to recover with the rollout of two vaccines. 

Technology’s Major New Role In The Real Estate Industry 

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Technology has been implemented within the real estate industry for more than a decade now, however, with the Covid-19 pandemic using the multitude of tools and websites available on the internet has never been more crucial for the survival of this industry. When the pandemic inevitable begins to slow-down in 2021, industry leaders will have to make sure to take advantage of all the technology that they have available to them to help the markets in America grow again, and thus help the economy recover. 

Buyers are able to virtually access almost any property online now. This type of “virtual open house” technology has existed long before the pandemic, however, during an era where we’re meant to stay home indefinitely, these tools have never felt more relevant. 

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In the old school days of real estate, agencies would have thick binders full of printed stats, graphics and plans for each of their listings. Today it’s all condensed into a PDF to be easily shared via tablet for easy viewing. The conversion of paper to digital has been a massive cultural shift for the entire world and its many industries, however, for the real estate industry, this shift has made it easy for anyone to grow their business from anywhere. 

Clients and agents can easily contact each other from far distances, and in the middle of a pandemic where certain individuals may be looking for a complete change in scenery, that’s everything. Many agencies also opt for virtual interactive “house maps” that allow prospective buyers to virtually “walk around” a certain property thanks to 360 degree imaging. 

Retail and commercial real estate businesses tend to use other technology to advance their own operations. For example, many commercial real estate owners use apps that help track credit card data to understand how their clients shop or utilize their own companies website. For retailers looking at consumer behavior and data is crucial for its success. 

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One of the biggest advantages that technology offers real estate agencies, as well as any major industry in America, is the multitude of marketing opportunities. Social media makes it easier than ever for any agency, no matter how small, to get their name out there. Creating not only a website, but profiles on platforms such as Facebook, Twitter, or even Instagram, can help spread the word about certain property listings, agent recommendations and business opportunities for your clients; who can then easily share your profiles with their friends. 

For any industry technology is crucial for creating a solid marketing strategy, it also can provide an amazing learning opportunity for older individuals who have watched the real estate industry grow and develop within the past two decades. The older generation learning from the younger generation of real estate professionals, and vice versa, can create an amazing environment for learning, growth, and most importantly, success. 

As the Covid-19 pandemic continues to impact the nation and its multitude of businesses, technology will also continue to impact the way in which we perform these business transactions. As the world begins to reopen and the virus eventually dissipates, these technologies will continue to grow and exist as well, so take advantage now!

US Real Estate Industry

US Housing Markets Expecting To Make A Comeback In 2021

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Based on current economic trends in parts of the United States, certain real estate markets are expected to thrive in the new year in what will likely be a stark juxtaposition to what a majority of the industry has witnessed this year as a result of the Covid-19 pandemic.

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America’s Struggling Rental Market Could Bring New Housing Crisis For The Nation

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A large number of renters have been unable to pay some or all of their rent since the Covid-19 pandemic began impacting the US back in March.

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Hawaii Real Estate

Hawaii Real Estate Agents Report Unexpected Spike In Sales 

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Catherine Pennell is a real estate agent representing Kauai for KW Kauai Keller Williams in Hawaii, who claims that the housing industry in Hawaii has been booming since April. Pennell says she’s fielding two to three phone calls everyday from people living in the United States looking to move to Hawaii. 

“I think people are saying, ‘Life is short.’ It’s a lot of talk because they’re not here yet and they can’t get here yet, but I’ve done more sight-unseen sales than I’ve ever done during the pandemic, three in the last three months.”

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Julie Peters is another real estate agent working for Island Boutique Realty on the island of Hawaii, who recently spoke with the press about how when wildfire season began in August she was fielding at least one call each day from residents of California looking for places on the island away from all the smoke and fire danger. 

Peters recalled how “one person wanted to come over immediately and rent in the meantime because she was so done with smoke. The last five closings I did were sight-unseen. I had rarely done that before.” This seems to be a major new pattern for Hawaii real estate, but also the industry in general. Buyers are more willing to invest in properties before seeing them either because they want an immediate escape from their current reality, or due to the Covid-19 pandemic making in-person viewings difficult in many areas of the country. 

She claims that a majority of her buyers this year have been from the Bay Area. According to Title Guaranty, which owns the largest real estate database in Hawaii, from January to June 2020, California residents bought $587.6 million worth property in Hawaii, making up 41% of total sales during that period coming from the U.S..

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“Demand for Hawaii is always there, but it’s just grown exponentially this year. A lot of people that were already looking toward retirement here sped it up, or people found out they could work from home. We got a rush of that and then the West Coast fires happened.”

Hawaii is also currently enduring a massive wave of new condos and other properties being placed on the market. In August 2020 new listings for condominiums went up by 97% when compared with the previous year. Single-family homes, on the other hand, are being bought at a much quicker rate. 

Cash offers have also been the most common form of payment, as those offers are more likely to go over the initial asking price. This influx in purchasing, however, doesn’t mean that the industry in Hawaii isn’t struggling like the rest of the world. Active listings were down by nearly 20% between April – August 2020 versus 2019. Honolulu County specifically saw an 18% decline while Maui County saw a 9% dip. 

West Coast buyers have increased exponentially as well as the concept of virtual listings/house tours. The pandemic, wildfires, and lack of active travel make it nearly impossible for buyers in the US to look at spaces in real life in Hawaii to move to. This new wave of blind buying is likely just the beginning of a new era of real estate in a post-pandemic world.

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Global Real Estate Leader Discusses Covid-19 Impact On Design And Commercial Industry

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Jack Paruta is the senior project architect with Gensler; one of the largest architecture, design, and consulting firms in the real estate industry.

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