Artificial intelligence can create housing market misinformation, fake property documents and false identities. Here’s how to intercept these threats.

Editor’s note: This article was written and edited with the assistance of AI tools.

Artificial intelligence has become ubiquitous in our daily lives, from Google searches and maps to popular graphic design software such as Canva and smart-home devices like Alexa. However, with the growing use of AI-powered tools like ChatGPT in the real estate industry, it’s essential to understand the potential risks and dangers. While the benefits of AI are vast, real estate professionals must remain vigilant and take proactive steps to mitigate potential risks, such as fraud and scams, cyberattacks and data breaches.

By addressing the potential dangers of AI, adopting ethical standards and safeguarding consumer data and privacy, the real estate industry can continue leveraging technology’s benefits while protecting the interests of all parties involved in real estate transactions. Here are the top potential safety and security dangers of artificial intelligence in the real estate industry:

Misinformation

AI systems can be used to generate fake reviews, testimonials, articles, emails and other types of information which could mislead buyers or sellers.

Solutions:

• Train agents and staff to detect, recognize and report fake information.
• Use AI systems that can detect and flag fake information, but understand that this is not an exact science yet.
• Develop guidelines and best practices for ethical AI usage that include avoiding creating and distributing fake information.

Data Security

The use of AI in the real estate industry involves collecting and analyzing large amounts of personal and financial data, which could be vulnerable to security breaches or unauthorized access.

Solutions:

• Implement strong security measures, such as encryption, access controls and monitoring tools, to prevent unauthorized access to sensitive data.
• Regularly review and update security protocols and procedures to stay ahead of emerging threats.
• Use AI systems that can detect and alert to potential security breaches.
• Regularly review and update security protocols and procedures to stay ahead of emerging threats.

Job Displacement

AI systems could automate certain real estate industry tasks, leading to job displacement for some workers. Therefore, it may be tempting to use AI-generated content to take the place of professional advice, including legal, tax, HR, risk assessment or even safety training(link is external). Based on new laws and rules, plus unverified information, relying on AI-sourced knowledge places the agent or brokerage in danger. Use professional safety and security experts to reduce liability.

Solutions:

• Limit, control and verify the contents and use of AI regarding critical safety and security topics. 
• Build a culture of trust and transparency by communicating openly about the role of AI in the workplace.
• Engage verified experts to advise on updated and relevant laws and rules.

Fraudulent Property Listings

AI systems could be used to create fake property listings, which could deceive real estate agents, buyers and sellers.

Solutions:

• Use AI systems that can detect and flag fake property listings based on patterns or inconsistencies in the data. You should understand that this technology isn’t exact, so additional verification needs to be conducted.
• Verify the identity of the seller or buyer to ensure they are legitimate as well.
• Conduct thorough due diligence, including previewing and inspecting the property as well as reviewing legal documents.
• Use Google Lens(link is external) to see if the property has been or is currently listed.
• Review Google Maps to confirm the existence and location of the property.

Phishing Scams

AI-generated emails and messages could be used to trick agents and consumers into giving away personal and financial information.

Solutions:

• Educate agents and staff on how to recognize and avoid phishing scams.
• Use AI-powered anti-phishing tools that can detect and prevent malicious emails from reaching the intended recipients.
• Regularly test and update security protocols to stay ahead of emerging threats.
• Confirm and verify the contents of the message in the email.

Ransomware Attacks

Cybercriminals could use AI to identify vulnerabilities in a real estate company’s network and launch ransomware attacks, which could result in the loss of important data.

Solutions:

• Implement robust security measures to prevent ransomware attacks, such as data backup and recovery plans, network segmentation and intrusion detection systems.
• Use AI systems that can detect and prevent ransomware attacks by identifying and blocking suspicious network activity.
• Engage an IT and security professional to regularly review and update security protocols and procedures to stay ahead of emerging threats.

Automated Scams

AI systems could be programmed to automatically send out scam messages to potential buyers or sellers in order to extract money or sensitive information.

Solutions:

• Educate consumers, staff and agents on how to recognize and avoid scam messages.
• Regularly test and update security protocols to stay ahead of emerging threats.

Fake AI-Generated Identities

AI systems could be used to create fake identities, which can be used to impersonate real estate agents or consumers to steal money or sensitive information.

Solutions:

• Verify the identity of agents or consumers using multi-factor authentication or other secure methods.
• Educate all parties about this cyber threat and potential danger.
• Regularly review and update security protocols and procedures to stay ahead of emerging threats.

False AI-Generated Property Documents

AI systems could be used to create fake property documents, such as deeds or titles, which could deceive buyers and sellers.

Solutions:

• Use AI systems that can possibly detect and flag fake property documents based on patterns or inconsistencies in the data.
• Verify the authenticity of property documents using legal and regulatory guidelines.
• Research county property records to confirm the authenticity of the documents.

Mitigating these risks requires the real estate industry to be aware of the potential dangers and develop robust cybersecurity protocols to protect customer data and safeguard against cyberattacks. Expert-led training to assess, spot and determine dangers will help alleviate and overcome these potential crimes.

©National Association of REALTORS®
Reprinted with permission

Don’t know exactly what you want from a customer relationship management tool? Ask these questions to identify which options will address your true needs.

Choosing the right customer relationship management tool may be one of the most frustrating aspects of setting up your real estate business. Many practitioners have tried several systems but still can’t seem to find the one that fits their needs. If it works correctly, your CRM should serve as a silent partner, providing the structure to organize and nurture your contacts and relieve you of repetitive, mundane duties so you can focus on building your business. But too often, real estate pros find that their CRM doesn’t offer enough of the support they wanted.

Before choosing a CRM, you have to know what you want out of it. Blindly trying out systems can quickly become a waste of time. Micah Olson, associate broker at RE/MAX Results in Orem, Utah, advises that pros pass on CRMs that aren’t real estate–specific because they won’t be able to address your specialized needs. “I don’t see why anyone would want to customize a non-real estate CRM,” he says. “There are enough systems available today that are already set up for how real estate professionals work and the information they need,” he adds.

But Olson has learned that it’s rare for a single CRM to have all the features and functionality a practitioner needs. So how can you find the one that comes the closest? Here are some questions to ask as you look for the CRM that will work best for you.

1. Is it compatible with other tools you’re already using? Olson, who uses Top Producer(link is external), found that he could easily integrate video service BombBomb(link is external) and the Riley lead management system(link is external) into his CRM. Focus particularly on a CRM that will be compatible with your lead generation tools, Olson suggests. “Talk to your top three sources of leads and find out which CRM integrates most naturally with their system so you won’t have to enter [customer] information manually.”
2. Does it have robust automation features? A CRM’s capacity to set up and automate routine correspondence and marketing campaigns is probably most important for real estate professionals, Olson says. He’s created automated communication plans for a range of business opportunities, such as buyer and seller leads, new listings, valuation requests, buyers under contract, and follow-up with clients. “I can even set auto emails to go out six months after doing something like a valuation request, asking a client if they would like an update,” he says.
3. Does the CRM provider offer sufficient customer support? It’s important to know that if you run into problems using your CRM, you’ll get adequate assistance. When Joe Pryor, CRS, broker-owner of The Virtual Real Estate Team in Oklahoma City, upgraded to RealtyJuggler(link is external) four years ago, one of the aspects of the CRM he appreciated most was its video tutorials and step-by-step guides on how to use its features. “So you don’t have a huge learning curve,” Pryor says. And if he needed to call or email customer support, a representative was always quick to respond, he adds. “I really appreciate how personable, available, and responsive customer support is if you have a question.”
4. Does the company behind the CRM have staying power? Newer companies may be creating CRMs with more state-of-the-art features, but if they haven’t established longevity in the market, you could be stuck looking for another CRM if they go out of business. Mary Pope-Handy, CRS, CIPS, a sales associate with Sereno Group in Los Gatos, Calif., was using one CRM but the company folded. As a result, she lost all of the email records that were attached to her contact list. She wanted assurance that her next CRM provider would be around for the long haul, so she decided to use PropertyBase(link is external), which integrates with SalesForce.com(link is external), a longstanding company. “SalesForce is a big platform, and it won’t go out of business,” Pope-Handy says.
5. How much time are you willing to invest in learning a CRM’s features? “You can find a CRM system with basic functionality that’s easy to use—but it doesn’t do much,” Pope-Handy says. “Or you can choose a system that will do whatever you want, like track referrals, but you have to be willing to invest your time to learn how to use it.” She says her CRM can “do anything you can imagine,” though it took her about a month to learn how to navigate the system. So when you’re evaluating CRMs, first look at the basic features you need, then determine how many extra features you have the patience to learn.
6. Will the CRM be appropriate for everyone on your team? Chris Kallin, a sales associate at Realogics Sotheby’s International Realty in Seattle, says that when he joined the brokerage’s four-person Seattle by Design team a year ago, each team member was using a different CRM. “One of the first questions I asked was, ‘If we are going to use a CRM, why not implement the same system for everyone?’” Kallin says. Over several months, he sought recommendations from other real estate professionals, researched dozens of options, and tried several before narrowing his list down to the top three, based on factors such as price, user interface, and intuitiveness of the software. User interface in particular is an overriding factor when choosing a CRM for a team, Kallin says.
7. Do you want your CRM to focus on sales or relationships? When you launch your CRM, what kind of information first pops up? “If it’s a sales funnel and weighted opportunity figures, then it’s a sales-focused CRM, and that purports to be its primary value,” Kallin explains. “If it first presents you with contact records, then it’s more people-focused.” His team members emphasize client relationships, so they chose IXACT Contact(link is external) as their team CRM. Kallin especially likes a feature that includes the name of a client’s partner or spouse in each contact entry and uses both names in automated correspondence.

Remember that choosing a CRM is a personal decision and should reflect what you consider most important in your business, Kallin says. Once you’ve compiled a short list of potential solutions, the best proof is in their use. “Most CRMs offer a free trial,” Kallin notes. “Spend a couple of hours under the hood seeing how records are set up, what kind of action plans it provides, and how much of the work is already done for you. Then you’ll know which one is your best choice.”

©National Association of REALTORS®
Reprinted with permission

Cybercriminals are using artificial intelligence to impersonate agents and other parties to a real estate deal. Here’s how you can stop them.

You’ve probably seen “deepfake” videos online purporting to show a person doing or saying something that they never actually did. It’s one of the dangers of artificial intelligence: Savvy users can imitate or replace a person’s face or voice to create highly convincing video or audio forgeries and manipulate or deceive audiences. Deepfakes are often used against political or public figures to disrupt discourse. But how can deepfakes put your real estate business at risk?

1. AI can create fake listings, like fraudulent rental ads, to defraud consumers.
2. Deepfake videos can trick agents into taking listings or writing virtual sales contracts for properties that don’t exist or are not representative of the actual condition of the property.
3. AI can create fake reviews or video testimonials for real estate agents or brokers. Fraudulent reviews may convince consumers—or even other real estate pros—to work with agents who have ethical, disciplinary or criminal issues.
4. Deepfakes can be used to slander, defame or damage an agent’s reputation by depicting him or her saying things that were never said.
5. Deepfakes can impersonate real estate professionals in order to gain access to sensitive information about clients and defraud them.
6. Fake AI-generated property tours online could deceive buyers and agents about property condition.
7. Deepfake videos can be used to lure agents into virtual meetings with a cybercriminal who poses as a legitimate party to the transaction.
8. Cybercriminals can use AI to impersonate clients and seek unauthorized information about a property, net proceeds from a sale, confirm financial information from lenders or get employment details.

One of the most significant risks of AI in real estate has to do with wire fraud. The use of deepfakes has made wire fraud even more challenging to detect. Case in point: In 2019, a cybercriminal used AI voice technology to trick the CEO of a U.K.–based energy firm to transfer $243,000 to a secret account(link is external).

Get deepfake safety handouts(link is external) to share with other agents and consumers.

To protect buyers and sellers from such risks, you must take the necessary steps to ensure that your clients’ identities and transactions are secure. This includes verifying identities, implementing secure payment procedures and adopting strict security measures. 

You should consistently advise clients of the prevalence of wire fraud in the real estate industry as well as potential deepfake crimes. One step to prevent wire fraud is to put a warning in your email signature. (The National Association of REALTORS® provides a template.) 

Steps to Protect Against Deepfakes

• Stay informed. Know the latest developments in deepfake technology, and be aware of the potential ways cybercriminals could use it to harm the real estate industry. It’s imperative for brokers to provide regular cybersecurity training. Technology changes quickly.
• Verify information. Be cautious with any information or media related to real estate. Regardless of the source—whether it’s a lender, colleague or client—take steps to verify the authenticity of the information before acting on it. Reach out directly to the source to confirm, and make sure to communicate via an email address or phone number you know to be authentic.
• Use secure communication channels. Use domain-based and encrypted email and messaging apps rather than free email accounts when communicating with clients or colleagues about sensitive information related to real estate.
• Use watermarks on real estate documents. To guarantee the authenticity and integrity of real estate documents and materials, employ watermarks and other authentication techniques to detect any unauthorized modifications.
• Educate others. Teach your fellow real estate pros and consumers about the dangers of deepfakes and the importance of being vigilant. 

It’s important to note that deepfake detection tools are still in the early stages of development and may not always be effective at detecting all deepfakes. However, there are several software tools that can be helpful. Two popular and highly rated ones are ZeroGPT(link is external), a free resource with a 98% accuracy rate, and Sensity(link is external), a deepfake detection tool that uses artificial intelligence to analyze facial expressions and other video features to determine if they have been altered. It also helps verify ID cards and documents.

Integrating ChatGPT, artificial intelligence and deepfakes into the real estate industry brings benefits and potential risks. As technology continues to evolve, real estate pros and consumers need to stay informed and take action to mitigate the potential dangers of these technologies. By being cautious, verifying the authenticity of information and transactions and implementing proactive measures, you can ensure a more trustworthy and secure real estate market for all stakeholders.

©National Association of REALTORS®
Reprinted with permission

From bidets to smart toilets, the bathroom is getting a tech upgrade that makes life more convenient and a little less germy.

As technology continues to advance, it’s no surprise that the smart home takeover has made its way into the bathroom. Kohler, a well-known manufacturer of kitchen and bath products, has introduced a range of bidet seats and smart toilets to meet the growing demand for advanced toilet technology. This kind of tech makes for a more sanitary, streamlined and sustainable experience in the bathroom.

Kohler offers a range of bidet seats and smart toilets, from the simple PureWash bidet seat, which does not require power outlets and is easy to install, to the Numi 2.0 Smart Toilet, which uses the Kohler Konnect app for expanded personalization and control. Each of Kohler’s smart bathroom products offers price points and features to meet the needs of consumers looking to upgrade their toilet space.

The Everyday Bidet

Once thought of as a luxury or other-worldly bathroom addition, the bidet is becoming more mainstream as more consumers realize that a cleaner, more hygienic bathroom option exists. Interest in bidets has grown in the last few years, and it continues to be one of Kohler’s fastest-growing bathroom categories.

At one time, a separate receptacle was needed to add a bidet to a bathroom, making it difficult for consumers with limited space within which to work. Not anymore. Kohler’s bidet seat(link is external) makes it possible to add the feature to the existing toilet, which is also easier on the budget.

Most bidets come with their own feature upgrades, like Kohler’s stainless-steel wand with automatic UV light cleaning technology, which automatically cleans the product once a day.

Full Toilet Upgrades

Smart toilets are all about the touchless, clean experience delivered through automated and new or more comfortable features that traditional toilets don’t have. Kohler’s smart toilets(link is external) have lids that automatically open as the user walks up to the fixture, eliminating the need to touch the seat or lid. The built-in heated seats and night lights, and the warm air dryer that runs after using the integrated bidet, are not found on most other toilets today.

Kohler smart toilets also feature automatic flushing and use less water when needed so that consumers can help save a little water without sacrificing performance.

Adding color or unique finishes to the toilet space is also a growing trend within the bathroom. Kohler offers up to 10 different color options for customers to personalize their bathroom designs to stand out or match closely with their other fixtures.

A Boon for New Construction

In new construction, builders are adding power outlets near the toilet or water closet area to make upgrading when the time is right. Some builders even include upgrade options with Kohler’s bidet seats and other options, so customers can easily add them during the new-home build.

A specific trend in new construction is Kohler’s hidden cord toilets and bidet seat combination options. These toilet designs allow installers and homeowners to hide the water supply line and power cords needed for most bidets for a clean design while delivering the bidet features homeowners want.

Pricing and Models

To buyers on a budget, Kohler recommends some of its basic bidet seat models, allowing the homeowner to keep the current toilet and upgrade the seat. To those doing a remodel or wanting to replace the entire toilet, Kohler’s smart toilets help bring the touchless and spa-like experience into the bathroom.

Kohler has a range of models from those that do not require power outlets and come with basic bidet features, such as front or rear wash, that start for around $99. The newest model, the Innate smart toilet, starts at around $2,500.

©National Association of REALTORS®
Reprinted with permission

Startups are bringing real estate solutions for everything from financial and property management to lead generation and more.

Proptech is rising to the challenge to meet more needs in the real estate industry, from rental management and second-home programs to managing your digital reputation, commissions and more. Encouraging greater leading-edge technology development in the real estate space, Second Century Ventures, the investment arm of the National Association of REALTORS®, announced Tuesday the 2023 classes of its REACH(link is external) and REACH Commercial(link is external) programs. The 14 startups chosen—seven in each program—will receive education, mentorship, networking and national exposure as they look to expand their mark on the global real estate marketplace.

“These 14 companies represent some of the most promising and innovative solutions in the real estate technology space,” says Dave Garland, managing partner of Second Century Ventures. “By supporting and investing in innovative small businesses through the REACH program, we can ensure that REALTORS® have access to the latest and most effective tools and technologies, enabling them to better serve their clients and stay ahead in an ever-evolving industry.”

This year’s cohort encompasses solutions for financial planning, second-home property ownership, property management, lead generation, marketing, mortgage asset management, tenant retention and more. The 14 companies have collectively raised more than $100 million in funding. “Their solutions are poised to make a significant impact and help overcome the challenges that lie ahead in the real estate industry,” says NAR CEO Bob Goldberg, who is also president of SCV.

The 2023 REACH Class

• Flock(link is external): offers a seamless and tax-deferred exit from rental property that uses the 721 exchange, allowing property owners to passively earn income and appreciation without the traditional responsibilities of ownership.
• HighNote(link is external): brings a drag-and-drop presentation and proposal platform to help agents pitch and sell listings, offers, neighborhoods and themselves.
• Plus Platform(link is external): modernizes asset management and trading with a platform for residential mortgages that provides transparency and liquidity to the mortgage market.
• Prisidio(link is external): offers a digital vault to capture and securely share your most important information with the key people in your life.
• Real Grader(link is external): measures, manages and maximizes digital reputation for real estate professionals across search, social media and real estate platforms. 
• Summer(link is external): aims to simplify the process of finding, buying, designing and monetizing a vacation or investment home through a nonfractional approach.
• Tongo(link is external): offers a private card-based product for agents to draw against pending commissions ahead of closing, and only repay when they get paid.

The 2023 REACH Commercial Class

Alongside REACH, which is now in its 11th year, the 2023 REACH Commercial class also was announced Tuesday. In that cohort, the companies “bring solutions that fundamentally change commercial real estate operations, finance and brokerage, as well as how we manage, experience and understand properties in which we live and work,” says Bob Gillespie, executive director of REACH Commercial.

• APM Help(link is external): brings property management solutions that prioritize quality and customer service and leverage expertise in finance, operations and accounting.
• BlueStreak IoT(link is external): improves the efficiency and performance of services in commercial real estate, including ScentBridge’s ambient scent delivery, indoor air quality monitoring, clean air as a service, replenishment management and performance compliance.
• Dwellwell Analytics(link is external): touts a comprehensive monitoring and early warning maintenance platform for residential property owners who need to reduce operating costs and avert disasters.
• Fortress PropTech(link is external): offers an innovative platform using automation technology and data integration to streamline property management and efficiency.
• Fyma(link is external): delivers occupancy and human activity analytics to improve asset management and property operations.
• Rockport(link is external): provides mission-critical commercial real estate systems to the top financial institutions in the world.
• Work & Mother(link is external): offers a commercial lactation suite service with an associated technology that satisfies property owners’ legal obligations to provide “mother’s rooms.”

©National Association of REALTORS®
Reprinted with permission