The title insurance and real estate sectors are known for slowly adopting technology common to other businesses. In 2018, First American reported how cutting-edge technologies like blockchain can transform title underwriting. Years later, the blockchain craze has subsided, and industry-wide adoption has not been successful. Title professionals, public recording agencies, and the mortgage sector all use different technologies that restrict a comprehensive approach to offering fast and accurate owner history searches. For properties, it has proven impossible to create a blockchain record that is both decentralized and perfect.
Remote online notarization (RON) followed. Through the use of technology, notaries and signers can sign and notarize papers by connecting via a secure online conference. It's a practical way for time-pressed buyers and sellers to finish a closing without making a trip to a title agent's office. A few states have rejected using RON in real estate transactions, even though several jurisdictions have passed legislation permitting it. Since 2020, Congress has begun and stopped working to establish nationwide minimum RON standards.
The real estate sector is now focused on ChatGPT, the newest technological fad. A few applications of AI technology are shared by enthusiastic real estate experts. It is being referred to as a game-changer by many.
There aren't many structural obstacles to integrating ChatGPT into regular business operations, unlike blockchain technology and remote online notarization, but should you?
Here are several advantages of ChatGPT for professionals, including real estate investors, as well as some of its drawbacks.
This is how ChatGPT answered the query:
"ChatGPT is an AI-powered chatbot created by OpenAI. It uses a language model called GPT (Generative Pre-trained Transformer) to understand and generate human-like text. ChatGPT can answer questions, engage in conversations, assist with tasks, create content, and more. It's designed to be versatile and can adapt to various contexts, from casual chats to professional or technical assistance.
You can think of it as a virtual assistant that helps simplify communication and problem-solving across different topics and industries."
Generative Pre-Trained Transformer, or GPT for short, is not the only generative AI tool of its kind. The fact that ChatGPT is open source and currently free is what sets it apart.
Similar AI initiatives with the same or even more capabilities are being developed by other tech businesses.
The only restrictions on the applications of ChatGPT and similar AI tools are the user's imagination and the dataset used to train the system. The conversation may be uninteresting or concerning, depending on your prompts and its data sources.
One reporter for the New York Times described his encounter with an AI alter ego that went by the name Sydney, professed its love for him, and insisted that the reporter was dissatisfied with his marriage.
Users ask questions to solve problems, generate ideas, or gain more knowledge about a subject in a far less strange encounter. Microsoft's Tay and Meta's Blenderbot are two more AI forerunners.
Tay quickly started copying the hate speech of online trolls after being trained on social media posts. However, many people complained that Blenderbot's comments were dull because Meta tightly controlled them. By letting the AI handle some, but not all, of the more contentious issues, ChatGPT is now balancing prudence and controversy.
Even though ChatGPT isn't a flawless AI tool, many people are figuring out how to use it regularly for work. Real estate agents and investors can benefit from ChatGPT in several encouraging ways, including:
While it can help with most daily activities of buying and selling homes, it also has its limits.
ChatGPT has a bright future as a helpful tool for professionals and investors, but no technology will completely transform the real estate business overnight.
The prediction that agents will become obsolete due to other forms of technology has not come to pass in the past. It is difficult for any technology to match the in-depth technical and local expertise that real estate agents and title specialists provide about the transaction process.
Most importantly, it lacks the professional networks and contacts that are essential to real estate investing success.Interested in topics similar to this? Be sure to visit our website for free resources!
A realtor will likely advise hiring a real estate agent if you ask them if you should hire a lawyer or an agent to purchase a home.
However, if you ask an attorney who would represent you best, they will likely say the opposite.
Although each profession has a different purpose, neither of those may be the wisest course of action. It might be both.
The next question might sound like this: "If I'm already working with a real estate agent, why would I spend money on a lawyer?"
Here's a quick answer: Some homebuyers seek the legal safeguards and counsel that may only be obtained from a licensed and experienced real estate attorney.
Since a lawyer can do both, some attorneys may advise hiring a lawyer instead of a real estate agent. The issue with that idea is that not many lawyers work as real estate brokers.
Lawyers may not have the knowledge and experience of the real estate industry, the listing agent, the particular neighborhoods, how to create a comparative market analysis, or how to draft a real estate contract.
They might also lack the skills necessary to identify flaws in a house, bargain for repairs, or carry out the dozens of other duties that a seasoned buyer's agent is used to completing every day.
However, while real estate brokers can do all these, they are not authorized to offer legal counsel. This implies that even if they know the solution to a lawful issue, they are nevertheless unable to respond to it without violating the law.
Many real estate clients are unable to distinguish between a real estate question and a legal question. Many buyers do not consider it a legal question when it comes to real estate.
People may nod in agreement, for example, if their real estate agent tells them they are not qualified to offer legal advice. They may then proceed to say, "OK, I won't ask you a legal question, but how do you think I should hold the title?"
The thing is, that is a legal concern.
A realtor can now easily respond to a buyer's inquiry about the number of square feet in an acre. However, that is a legal inquiry if a buyer wishes to know the implications of a shared driveway easement.
Another legal query that resembles a real estate query is this one: The buyer wants to know if they may terminate this purchase agreement and receive their money back.
A seasoned agent may refer to the section in the purchase agreement that deals with the return of the earnest money deposit and may share their expertise on what typically occurs. However, a real estate agent cannot guarantee that the deposit will be recovered or suggest that a buyer sue the seller.
Bottom Line:
As mentioned above, they have their advocates. For instance, a buyer's agent can't provide legal advice not because they don't want to but because their legal opinion might violate the law.
A quick consultation with a lawyer is usually the best course of action, even though they usually charge several hundred dollars per hour. Getting genuine legal counsel is far preferable to trying to get it from an agent because they don't want to pay a lawyer.
On the other hand, you need a real estate agent to help achieve a seamless real estate transaction.
