Virtual real estate is the market’s new frontier thanks to the metaverse, so agents and brokers need to know what it means for the industry and how it works.

Nowadays, it seems as if there’s virtual everything. Virtual artwork, virtual events, virtual marketing. But what about virtual real estate? Is that a thing, and if so, can you invest in it?

Enter metaverse real estate(link is external), an online platform where people can connect to play games, release products, offer services, and host events. Businesses often own these virtual properties. And, just like any other type of real estate, they can be bought, sold, purchased, and leased.

The metaverse is still new and still evolving, which leaves many wondering if investing in virtual real estate is worth the cost. 

What Is the Metaverse in Real Estate and How Does it Work?

Metaverse real estate can be purchased similarly to how you would purchase an NFT.

A quick recap: An NFT, or nonfungible token, is a unique or collectible virtual item that can be purchased and is housed completely in the virtual world, such as digital artwork.

Just as NFTs are, real estate in the metaverse is bought with cryptocurrency. After the transaction is complete, you receive a unique piece of blockchain code, which serves as a deed of ownership.

Properties are bought and sold on a platform called the “metaverse,” a digital platform where virtual reality and augmented reality are used to create a virtual world. The idea is that a metaverse platform provides a connection between the virtual and actual worlds. Sandbox, for instance, is a metaverse platform that takes shape as a game and a virtual world. Unlike traditional video games in which users simply play through the levels until they beat the game, in Sandbox, users have the opportunity to claim ownership in the world itself. Plots of “land” are bought, sold and traded.

The first step is to set up a digital wallet to use in the metaverse. A digital wallet gives you a way to make transactions through software without cash. There are different kinds of digital wallets, and metaverse wallets are essentially a block chain wallet with some additions. It allows users to work with different cryptocurrencies, transferring, holding, and accepting tokens, but also allows users to administer and grow digital assets.

To participate in a transaction, you must create an account on one of the many metaverse platforms and link it to your digital wallet. Then browse for properties that look attractive to you and make a purchase.

Anyone can purchase in the metaverse, but it is important to identify your reasons for buying digital property and assess whether or not doing so is a good investment. For example, if someone wants to promote their business or invest in something tech forward, the metaverse is probably a good choice. The metaverse also opens up investment opportunities for those who might not otherwise be able to do so since, in general, property prices are much lower than that of traditional real estate.

However, for those who are adverse to the unknown and risk, this might not be the appropriate investment avenue.

Similar to real world transactions, metaverse purchases will go through brokers and property managers. But unlike real life, these brokers and property managers do not need a real estate license(link is external) and are not regulated by any organizations. In this space, buyers and sellers will want to work with someone they can trust.

What Is the Cost of Metaverse Virtual Real Estate?

Virtual real estate values fluctuate depending on demand, but they have been showing an upward trajectory so far. When Decentraland, one of the “big four” of metaverse real estate owners(link is external), held its first auction in 2017, a parcel of land cost just $20. By 2021 they were selling for $6,000, and at the start of 2022, they rose in price to about $15,000. In the metaverse a parcel is 106 yards by 106 yards in size, and is determined by the plot’s number of pixels.

With increased interest in the platform, the potential price tag on a metaverse property seems to have no end. While most properties are priced between $6,000 and $100,000, anomalies will happen. One of the biggest sales, for instance, was the purchase of a property(link is external) adjacent to Snoop Dogg’s parcel in the Sandbox for $450,000.

How Will Metaverse Real Estate Affect the Industry?

The metaverse spells big changes for the real estate industry. Here are some to consider:

• It opens up real estate to a wider pool of investors: The metaverse offers real estate in various shapes, sizes, locations and price points. It can be purchased with a wide range of currencies. The affordability and accessibility mean almost anyone can invest.
• It puts emphasis on size and location over utility: With real world real estate, size, location, and utility are all important factors. In the metaverse, the aim of purchasing land is to develop it or lease it out. This prioritizes size and location, while utility falls to the wayside.
• It can serve as a platform for real-world activities: In the future, people may be hosting more real-world activities on the metaverse including trade shows, exhibitions, weddings, and other social gatherings. This may reduce the demand for brick-and-mortar properties used for these purposes.

Is Metaverse Virtual Real Estate a Good Investment?

Right now, metaverse real estate looks like a terrific investment. As prices rose by as much as 300% in just four years, it seems like a great way to get rich quick.

However, there are risks involved. It’s a relatively new entity and it’s hard to say how successful some platforms may be over the long term. Privacy and security can also play roles in yielding losses. The best advice may be to proceed with caution.

The metaverse presents the real estate industry in a whole new light. So far, it has been highly successful, but as with anything new, time will decide its true viability.

©National Association of REALTORS®
Reprinted with permission

You can fix some issues by rebooting. But others will require professional help. Know when you can resolve tech problems yourself.

Numerous cyber threats lurk on the internet, but perhaps nothing is more dangerous to your business than having your computer or smartphone infected with a virus. Don’t ignore the signs: Your computer or phone may fail to start, begin operating at a slower speed or generate unknown error messages.

Most viruses make themselves known once your gadget has been infected. However, some lurk under the surface of your device and require detective work to find them. Check out these quick tips for determining whether your personal device is infected.

1. Your phone keeps restarting. Devices may restart themselves when you haven’t installed a critical update or there’s a random glitch in the software. Sometimes, however, your device may restart because a criminal has access to it and is installing malicious software. If this happens, shut your device down immediately. Take it to your tech professional to get a thorough check of your device for possible infection.
2. Random error messages appear. Most devices have antivirus software that runs automatically and keeps things running problem-free. So, it’s rare that your device will display error messages saying that you need to update drivers or there is a breach of your IP address. These messages are more likely to appear from malicious software that has been installed on your device or your browser being hijacked during a drive-by hacking. Sometimes, a simple reboot of your device is all you need to do to remove these bogus messages. You also can attempt to find the malicious program and remove it from your device.
3. A promise from tech support that’s really a scam. Watch out for these schemes in which a criminal may pose as tech support to gain access to your device and “solve” a problem for you. If you’ve fallen for one, you likely had software installed that allows them to log onto your gadget whenever they want to steal your valuable information. Again, look to see if there are any unknown programs installed on your device. If you find any that you are not familiar with, remove them immediately.
4. You can no longer access files on your devices. When you suddenly can’t access documents, videos and pictures on your gadgets, you likely have devices that have been infected with ransomware, one of the worst forms of malware. This malicious software will lock or encrypt your files so you can no longer access them. It also could be a variety of “wiper” viruses, which will wipe your device clean. If your device gets hit with ransomware or a wiper, your only option is to restore your files from a backup. Here’s an important reminder: Always keep a backup of your files.
5. Your devices are running hotter than usual. This could mean you’re a victim of “crypto-jacking,” where a hacker has installed malicious software onto your device. Crooks who are looking to mine cryptocurrency will take over computers, tablets, smartphones and, sometimes, gaming systems to use their power source to mine more cryptocurrency. Watch to see if your device won’t stay cool or shuts down because of overheating. If this happens, you will have to find the mining software running in the background and disable it.

How to Prevent Viruses in the First Place

Nearly all cyberattacks that happen to devices require user interaction. As such, in most instances, you will need to click on a link to open a door for a hacker to gain access to your gadgets or fall for a scheme that tricks you into allowing someone to gain access to your computer, laptop, smartphone or tablet.

In many instances, you can fix these issues by restarting your Windows, macOS, Android, or iOS device to see if your device works better. But if you can’t access files, this trick won’t work; only restoring from a backup will. Also, running a scan with your antivirus program might help pinpoint the offending program. If that’s not an option or these other methods don’t seem to be helping, you will need to call in tech support or an IT professional to do some additional checks. As we rely on our devices more and more for work and throughout our personal lives, cyberattacks likely will only grow more common. Don’t be naive about the threats. Always stay vigilant when it comes to keeping your data as well as your business and personal information protected.

©National Association of REALTORS®
Reprinted with permission

Despite its slow adoption in real estate, digital currency has the power to improve accessibility to homeownership and shorten the home-buying process.

Key takeaways:

• Using digital currency and the blockchain to buy and sell property could be a huge game changer for the real estate industry.
• Now is the time for real estate professionals and companies to jump on the cryptocurrency and blockchain train.
• This type of digital transaction has the power to make homeownership possible for people who once thought such was out of reach.

Kristin Smith, a real estate agent at Dave Perry-Miller Real Estate in Dallas, has been investing in cryptocurrency since 2017.

Not long before she started investing, she had an experience that brought to light the power and accessibility of digital currency. She and her brother traveled to Cuba with cash in hand. They thought they’d brought enough with them for the duration of the trip, but they ran through their money faster than expected.

Smith recalls the painful process of accessing more money, noting that wire transfers took days and she had to have a Cuban citizen pick up the cash for her, further delaying her access to her money.

“It was eye-opening. If I just had crypto, it would have been there for me right away,” she adds.

The access and transparency of cryptocurrency, or crypto for short, had Smith hooked from the start, and she’s long felt that this innovative financial technology could change the real estate industry. She’s been advocating for more real estate professionals to get involved in crypto ever since. She’s also the chair of the National Association of REALTORS® Cryptocurrency Presidential Advisory Group, which was established to study how the technology is impacting the real estate market and how industry professionals can best move forward in this realm.

Natalia Karayaneva, founder and CEO of Propy, a real estate transaction platform that is a member of NAR’s REACH accelerator program, says her company is proof that the change is already happening.

Propy has already completed over $4 billion in real estate transactions on the blockchain. Recently, the company seamlessly transferred ownership of a Tampa, Fla., condo in 15 minutes. The process offered transparency that the traditional real estate transaction does not. Everything from the appraisal to the offers was available online.

The blockchain, crypto and nonfungible tokens are still novelties to most real estate agents, says Smith, but she thinks this new era in finance is an important one to jump into.

A Brief Intro to Fintech and Digital Currency

For beginners, the new wave of doing business with the blockchain, cryptocurrency and tokens can be overwhelming. The terminology feels foreign if digital technology isn’t something you’ve explored before.

“Fintech,” or financial technology, is defined by Columbia University as “a catch-all term referring to software, mobile applications and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike. Fintech can include everything from straightforward mobile payment apps to complex blockchain networks housing encrypted transactions.” It includes transactions such as depositing your check using your smartphone, raising money for a business startup on an online platform like Kickstarter or using digital money, among others.

Here are some of the main terms you’ll hear when referring to digital currency and the digital sales world:

Cryptocurrency – This digital form of money, Smith says, allows transactions to be verified and records to be maintained by a decentralized system using encrypted databases, rather than by a centralized authority such as a government. Digital currency is bought and sold online and has no tangibility, as does a paper dollar or a coin.

Some of the top cryptocurrency systems include bitcoin, ethereum, XRP, cardano and litecoin. The digital money can be used as a virtual form of cash to pay for many items these days, including homes.

Blockchain – This technology enables the existence of cryptocurrency. It is a shared, unchangeable ledger that facilitates the process of recording transactions and tracking assets in a business network, Smith says. When you decide to buy an asset that costs 100 bitcoin, for example, you submit the transaction; that 100 bitcoin becomes a block, which is added to that digital currency’s chain with all of the other transactions that have taken place using that currency.

An asset can be property, car, cash or intangible items such as intellectual property, patents, copyrights and branding.

NFTs – Nonfungible tokens are unique blockchain-based assets that represent items such as artwork, music, videos and real estate, says Karayaneva. “NFTs are in full compliance with U.S. regulations,” she says.

What Makes Cryptocurrency and the Blockchain Appealing in Real Estate

As a real estate professional with 15 years of experience, Karayaneva was frustrated with the traditional real estate transaction, which is time-consuming and rife with fraud potential. She wanted something better, safer and faster for all parties involved. At first, though, she didn’t think this kind of fintech was the answer.

“In fact, three years ago, I was interviewed by reporters and told them it was not possible to achieve this type of transaction within the next 10 to 20 years,” she says.

Karayaneva says she is surprised by how fast the technology has come along. Making the homebuying experience a process complete in a couple of clicks is a big feat.

The Tampa condo deal is one example of the ease and speed at which a real estate deal can be settled with the use of the blockchain and NFTs. Karayaneva says it was completed through Propy’s new NFT Marketplace, which provides all participants in the transaction with the ability to view the process in real time.

Smith believes that transactions completed on the blockchain move so quickly because of the lack of credit and background checks. Unlike traditional funding, cryptocurrency does not use these processes to purchase assets.

“They only look at your collateral. It opens up a whole new world of buyers,” she adds. “You are no longer being judged on credit score or background checks.”

Many people are afraid of cryptocurrency because of its unpredictability, but there are some types of cryptocurrency, called “stablecoins,” that reduce risk.

The Tampa condo sale was completed using a form of stablecoin called USDC, whose value is tied to the U.S. dollar, to limit the risk.

How Blockchain and Crypto Could Make Homeownership More Accessible

Though more risk is involved when background checks and credit checks aren’t completed, using cryptocurrency and the blockchain opens the world of real estate up to a pool of buyers that might have otherwise been ineligible.

For instance, some companies will lend crypto users up to 50% percent of the loan if the collateral is in bitcoin, a particular kind of crypto. That same person might not have qualified for a traditional loan because of their credit score or lack of tangible collateral, but crypto opens up their options.

Smith believes that even without credit checks, more private lenders will come forward to be a part of the blockchain and crypto movement. Those lenders, she says, will likely charge higher interest—she believes from 8% to 10%—but she says that people will pay that amount.

Even though the real estate market is slowing, prices are still high, and competition is still tough. For instance, 100,000 people moved to Dallas from 2020 to 2021, Smith says. Some can’t compete with all-cash buyers or get a loan because of a lack of down payment funds or a low credit score. Paying a higher interest rate is not a deterrent for people who want to buy a home but haven’t been able to either because of the state of the market or because they don’t qualify for a mortgage in a traditional setting.

“If the lenders only look at your collateral, it’s a whole new world of buyers. They will no longer be judged on credit score,” she adds.

How Real Estate Professionals Can Learn About Blockchain Sales

New and intangible things like crypto are scary, but at one time, the internet was considered new and intangible as well.

Smith says removing the fear starts with learning more about how the blockchain and crypto work. That’s why she’s getting the word out.

At the April Brokers Summit in Phoenix, Smith gave a presentation on the basics of the blockchain and cryptocurrency and how they are used in the real estate market. When she started learning about this kind of fintech, she consumed everything she could, turning to podcasts, articles, YouTube videos and whatever else she could find in her research. Smith encourages others to do the same.

Karayaneva says Propy offers a Crypto Certified Agent course. There are seven sessions of 30 minutes each, explaining crypto transactions in the housing industry. Currently, over 1,000 real estate professionals across the country are certified. She says these agents share their knowledge every Friday with agents who are new to the course during an online session. Karayaneva also suggests looking at websites such as CoinDesk.com and Cointelegraph.com for updated information.

Both Smith and Karayaneva believe that the blockchain and crypto will continue to be a game changer in the real estate industry. For that reason, the more industry professionals who understand how they work, the better.

“Blockchain is a huge phenomenon that will change our world,” says Karayaneva. “It already is—just like the internet did. Fundamentally, it will change finance, real estate and other aspects of our lives.”

©National Association of REALTORS®
Reprinted with permission

360-degree tours give listings an extra edge and weed out the window shoppers from serious buyers. So now the question is, do you hire a professional or create your own?

I was an early adopter of 360-degree tours for listings in 2014 because I saw both the value in distinguishing myself from the competition and the benefits for buyers and sellers alike. We’ve used them for every listing no matter the price point, and our portfolio includes over 120 tours across various platforms.

Today there are more options than ever to capture and display listings.

So why should you be using 360-degree technology?

“While pre-COVID, virtual tours may have been a nice-to-have, today they are a must-have(link is external) to help differentiate a real estate agent from competitors,” says Dan Smigrod, founder of We Get Around Network, a resource focused on helping real estate professionals with 3D and 360 platforms. “Potential home sellers are starting their journey online.”

By not utilizing 360-degree technology, you may not even know you are missing business opportunities.

“Prospective buyers who contact an agent after taking an online virtual tour are far more likely to be serious about buying the property than the neighbor and their friends who show up at an open house for something to do over the course of a weekend,” says Brad Filliponi, co-founder of BoxBrownie(link is external)., a 2018 National Association of REALTORS® REACH partner.

Working With a Professional

According to Smigrod, more than 50% of all real estate agents outsource real estate photography and virtual tours to professional real estate photographers.

“As a real estate agent, if you have a multimillion-dollar listing, are time-poor or want ultra-premium results, you should always hire a professional,” he says.

Hiring a professional to create a standalone 360-degree tour will typically cost around $200. The 360-degree tour service is often sold either as part of a marketing package or as a package add on. Searching for local providers in my area in Minnesota, the results showed that several companies offer packages that include photos, a virtual tour and a floor plan for between $340 and $475. Most quoted a turnaround time between 24 and 48 hours.

Many camera providers also have a network of photographers, with a directory on their websites where interested clients can book directly with the photographer. For example, Asteroom(link is external) has on-demand photographers in over 70 metro areas. Clients can book with the photographer for a $299 package that includes a 3D tour, floor plan, 30 MLS shots and virtual twilight shots.

Going the DIY Route

Creating DIY 360-degree tours isn’t as out of reach as it may seem. In fact, Smigrod says he’d prefer to do so.

“In this piping-hot market, with such easy access to the 360-degree cameras and photo editing technology, if I were [an agent], I would definitely be shooting 360-degree virtual tours myself,” he says. “It gives you an instant advantage over your competition.”

There is an upfront cost to think about. Going DIY means acquiring the necessary technology if needed and covering ongoing hosting fees. Smigrod recommends deciding on which platform(link is external) first, then picking out a camera and additional equipment. The process to create, capture and edit a tour is different for each platform, and the way the properties are displayed and navigated differs, so choose your preferred platform and then find a compatible camera.

Hosts charge either a flat fee or an ongoing monthly payment. BoxBrownie offers a flat fee per tour, starting at $16. Asteroom is $59 per tour. Ricoh(link is external) costs around $45 a month, and Matterport(link is external)’s most popular plan is $69 a month.

Then it’s time to pick equipment. For DIY 360-degree tours you’ll need:

• Camera
• Tripod
• Memory card

For cameras, Insta360(link is external) offers a package that includes the One X2 camera, a tripod and a memory card for around $500. Ricoh’s Theta line ranges from $300 to $1,000 for the camera alone; you can add a good tripod for about $100.

If you’d like to skip the camera altogether and use your phone instead, Asteroom offers a DIY kit that includes a tripod and rotator. The cost for the pair is $110. If, however, you decide you want to use a camera, the kit is also compatible with Ricoh, Insta360 and Trisio cameras.

Though the upfront cost might feel like a heavy lift, shooting virtual tours yourself is much more affordable than hiring a professional every time, says Filliponi.

Testing the Options

I tested a number of platforms. Five of those were done by professionals. For the others, I opted for DIY with a few different camera options.

I found the DIY process straightforward. Using one of the above-mentioned apps on my phone and a camera on a tripod, each 360-degree tour took from 20 to 30 minutes. The Matterport app did require some work to make sure shots were aligned properly to stitch together; each of the others simply had me label the panoramic photos prior to uploading. Ricoh’s tour platform required adding navigation points and choosing starting points. Of the DIY options, only Asteroom included a floor plan; the others required uploading your own. Ricoh plans to release an automated feature to create floor plans from the 360-degree images in the near future.

There can be discrepancies in room measurements and overall square footage among platforms. “We really hang our hat, so to speak, on our degree of accuracy,” says Michael Vervena, VP of sales & marketing for iGuide. “We know from studies buyers want accurate and reliable listing information. Accurate square footage and room dimensions are critical for providing the best service for buyers and sellers so they can easily make informed decisions.”

Here are some examples of the various platforms and camera solutions. Click on each link for a look at the 360-degree video the listed platform and camera produce.

Professional 360-Degree Tours

1. Matterport shot by professional using Pro 2 camera(link is external)
2. RealVision shot by professional using DSLR(link is external)
3. Asteroom shot by professional using Trisio
4. EyeSpy360 from Obeo(link is external)
5. iGuide(link is external)

DIY 360-degree Tours

1. Asteroom shot with cellphone
2. BoxBrownie shot with Theta Z1(link is external)
3. Matterport shot with Insta360(link is external)
4. Ricoh360 tours shot with Theta Z1(link is external)

Using Tours on the MLS

Using 360-degree tours on the MLS requires that you take steps to ensure you’re in compliance with MLS policy. First, make sure the tour is unbranded. Next, there can’t be any external links within the tour—you’ll want to comb all aspects of the tour, including the map and disclaimer, to make sure there are no external links. Most companies are aware of this requirement and have the option to turn off the links to make the tours MLS-friendly. Be sure to verify compliance ahead of time to avoid a fine from your MLS.

If you haven’t embraced 360-degree tours for your listings yet, hopefully, you might try them. There are many ways to capture a property, and it doesn’t have to cost a lot of money. It was a lot of fun testing these different solutions. Which do you think looks best? What listing trends are you seeing in your marketplace?

©National Association of REALTORS®
Reprinted with permission

Real estate pros are connected to multiple tech platforms on a daily basis. Get insights on the most popular ones from NAR’s 2022 Member Profile.

REALTORS® use multiple technology platforms daily to promote their business and stay connected to clients. While smartphones and email are key tools that facilitate most of those connections, 53% of REALTORS® also use social media apps or GPS features daily, according to the National Association of REALTORS®’ 2022 Member Profile.

Typing proves more popular than talking to clients. According to the survey, 94% of REALTORS® say they prefer to communicate with their clients over text message, followed by telephone (92%) or email (90%). About 27% of REALTORS® say they prefer to use video chat to connect with customers.

Here’s a snapshot of more technology use among REALTORS®.

Keeping a website presence: Websites continue to be a big piece of maintaining a digital presence online. Eighty-four percent of REALTORS® say they included their own property listings on their residential brokerage website, along with home buying and selling information, links to their brokerage’s website, social media links, and mortgage or financial calculators. Commercial brokerage specialists were more likely to include links to the commercial information exchange, virtual tours, comparative market analysis, and the National Association of REALTORS® on their websites.

While websites are viewed as a key tool among real estate professionals, 57% of REALTORS® reported bringing in no inquiries or business directly from their website; 27% cited one to five inquiries from their website.

Staying connected on social media: Seventy-two percent of members say they use Facebook for professional use; 55% use LinkedIn; and 45% use Instagram professionally. Still, more than a quarter of members—or 29%—say they do not use social media at all for their business. (View: 7 Tips to Help Brokers Master Social Media and Develop a Growth Strategy for Your Social Media Content)

Leveraging business software: Sixty-three percent of REALTORS® use MLS software every day. Other software used regularly includes electronic contracts and forms, along with e-signature, document preparation, contact management, and social media management tools, the survey shows.

©National Association of REALTORS®
Reprinted with permission

A data breach also may cost you money and ruin your reputation. An NAR attorney helps you build a strong data security plan in the latest “Window to the Law.”

You’re putting your livelihood at risk if you’re “asleep at the wheel” when it comes to creating a data security plan, especially as the real estate industry faces growing cyberthreats, says Maame Nyamekye, staff attorney at the National Association of REALTORS®, in NAR’s latest “Window to the Law” video. The impact of a cyberattack on your business could be great: “A data security breach could potentially hurt your business financially, lead to a lawsuit and tarnish your reputation,” Nyamekye says.

Still, many businesses are unprepared. Only 35% of companies have programs in place to detect, prevent and respond to fraud threats, according to a survey earlier this year by tax services firm KPMG. “Fraud, compliance risk and cyberattacks are increasing at an alarming rate, eating away profits across the U.S.,” says Amanda Rigby, forensic service network leader at KPMG. “Collectively, these issues create a ‘threat loop,’ which can quickly overwhelm companies with economic loss, regulatory loss and reputation loss. Despite the potential for calamity, the majority of U.S. companies are not ready to fight the threat loop.”

In the video, Nyamekye highlights what brokers and agents can do to minimize their risk in the event of a data security breach. The tips are based on Federal Trade Commission principles for creating a data security plan. Nyamekye urges members to:

1. Take stock of the information your brokerage handles and where it’s being stored. You also need to know who in the company has access to what.
2. Have a retention policy outlining what information your company will retain and for how long based on legal requirements and your business’s needs, Nyamekye says. At least 35 states have laws addressing the proper disposal of personal information.
3. Be proactive in having safety measures in place both for your technology and physical space to protect any sensitive information and prevent unauthorized access.

©National Association of REALTORS®
Reprinted with permission

Passage by the House sets the stage for a Senate vote on NAR efforts to bring more real estate transactions into the digital age.

The U.S. House of Representatives passed a bill Wednesday evening to expand the availability of remote online notarization (RON) nationwide, a key advocacy priority for the National Association of REALTORS®. The bipartisan SECURE Notarization Act now goes to the Senate for consideration.

RON allows a notary and signer in different physical locations to safely and securely execute electronic documents using two-way audiovisual communication.

Nearly half of states have expanded RON during the COVID-19 pandemic, enabling real estate professionals to facilitate closings safely and securely. But because of the patchwork of state laws, agents in other states had to adapt to drive-by closings and other social-distancing methods. NAR pressed lawmakers throughout the pandemic to pass a national RON bill while simultaneously working on the state level to enact changes.

“REALTORS® have always been leaders in technology in the real estate profession. NAR supported RON even before the pandemic,” says Shannon McGahn, NAR’s chief advocacy officer. “But now more than ever, this progress makes sense. REALTORS® want to devote their time to helping home buyers, not on paperwork.”

Even as COVID-19 becomes less of a factor, virtual sales and closings will remain in demand. In June 2022, NAR reports, 12% of sales took place virtually. Speaking about the House bill, McGahn says, “This measure establishes minimum standards to ensure strong consumer protections while providing certainty for interstate commerce.”

©National Association of REALTORS®
Reprinted with permission

Bad actors are taking advantage of surging demand for remodeling projects and home warranties to dupe consumers. Share these warning signs with your clients.

Housing-related phone scams surged by more than 300% in May, according to telecommunications technology provider First Orion’s 2022 Mid-Year Phone Scam Report(link is external). Scammers increasingly are trying to dupe consumers on home-related items, including remodeling projects and home warranties.

Home warranty scams targeting seniors are skyrocketing, the report shows. Such schemes typically provide a callback number that captures the personal information of those who respond. First Orion estimates that U.S. mobile subscribers received more than 100 billion scam phone calls during the first six months of 2022. That resulted in financial losses of up to $40 billion.

Overall, the most common and emerging phone scams across industries involved vehicle warranties, health care, Social Security, life insurance, financial assistance and home warranties, the First Orion report finds. Kent Welch, First Orion’s chief data officer, recently spoke with REALTOR® Magazine about the growth in home-related scams and what consumers need to watch out for.

Q: What’s behind the big jump in the number of housing-related scams lately?

A: Scams are a big business, and we see scammers alter their tactics and their ploys to fit the season or the current events. We often notice seasonal trends; for example, tax scams soar during the first-quarter tax preparation season. Scammers also tend to take advantage of consumers’ needs, which can be tied to current events or pending legislation around themes such as student loan forgiveness.

It’s been a seller’s market lately in housing. During the pandemic, record numbers of consumers quit their jobs or retired early, opting to downsize or sell to take advantage of inflated pricing associated with the recent demand for homes. Likewise, consumers working from home have fueled an increase in demand for homes outside the typically strong job markets. Also, remodeling projects and home enhancements are in demand.

Interest rates are also going up, which can spark a rush on the housing market from buyers who are anxious to lock in rates or renters who want to move but can’t commit to a long-term loan.

What housing-related scams are you noticing increasing the most?

In June, housing-related scams were still growing, but by more like 90%, as opposed to the more than 300% growth in May. Here are some examples from more recent phone call scams:

• “Hi, this is Suzie. I’m a homeowners associate calling on a recorded line in regards to safety concerns within your home. How are you doing today? I’m with Consumer Council regarding home improvement. My callback number is…” 
• “Hi, this is Laura. I’m a homeowners associate calling on a recorded line in regards to making improvements within your home. How are you doing today? I’m with remodeling loans. My callback number is…”
• “Hi, this is Stephanie. I’m a homeowners associate calling on a recorded line in regards to safety concerns within your home. How are you doing today? I’m with customer care regarding home improvement. My callback number is…”

Some of the buzzwords like “remodeling” and “safety concerns” are interesting. The scams are targeting more of the homeowner population as opposed to the mix of homeowners and renters, like in May.

The reference to “Consumer Council” is very common with other scams like Medicare, health care and vehicle warranty, suggesting the same scammers are alternating the theme, but the messaging is mostly the same or similar to other scams.

How can homeowners or renters avoid becoming a victim of these scams? Any more tips or red flags they should beware of?

First and foremost, don’t answer unknown numbers. If it’s important enough, they’ll leave a voicemail.

Perhaps one of the biggest mistakes people make on these calls is giving out personal information like their Social Security number or birth date over the phone. And definitely don’t give away banking information if you’re unsure if the person calling is in fact from your bank or, in this case, an homeowners association or a landlord. If they ask you to pay with a gift card or wire transfer, it’s definitely a scam. Hang up, look up the phone number to verify it and call them back.

Additionally, if you hear a robotic voice asking you if you’d like to be placed on the “do not call list,” don’t fall for it. Don’t press the button, don’t say yes—because that’ll put you on a list of active callers. Just hang up.

Lastly, consider getting a call tagging or call blocking service or consider registering with the federal Do Not Call registry(link is external).

Is there anything you’d like the real estate community to know about helping to educate their clients on this?  

Branded communication is helping to restore trust between businesses and their customers over the phone. Businesses can brand calls with their logo, company name, department and reason for calling on the recipient’s mobile device at the time of the call and in the call log afterward, increasing the likelihood the customer calls back. With so many people now conditioned to ignore calls from unknown numbers, this reduces the number of unanswered calls and also helps identify the real calls from the fraudulent ones.

©National Association of REALTORS®
Reprinted with permission