February March 2024 Maryland REALTORS Magazine

MULTI-CULTURAL ORGANIZATIONS 5

GET READY FOR INNOVATE 2024 14

Vol LVIII, No 2 | FEB/MAR 2024

mdrealtor.org | marylandhomeownership.com

AI and Real Estate Get ready for the Brave New World

THE VALUE IN MEMBERSHIP 18

Advanced Education for Growing Your Business

GRI

The Graduate REALTOR® Institute Designation Be the first pick.

Stand out from the crowd.

Earn Your GRI Designation One Time Completion

sophisticated than ever, requiring

Must complete Series 100 & 200 for a total of 72 hours, no renewal required.

professionalism. By earning the

Continuing Education

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Each six-hour course offers advanced guidance for the modern REALTOR® and most provide continuing education credits.

Your clients are more

you to perform at a higher level of Graduate, REALTOR® Institute the pack with real-world knowledge about new

technologies, laws and marketing techniques that positively affect your bottom line.

Questions? Email: GRI@MDRealtor.org

Online Classes Each GRI series is offered virtually twice a year through Maryland REALTORS®.

Sessions run from 9:00am to 3:45pm.

TO REGISTER, SCAN QR CODE OR VISIT: www.mdrealtor.org/Professional-Development/ Certifications-and-Designations/Graduate-REALTOR-Institute

CONTENTS FEATURES 5

Real Estate’s Multicultural Organizations

8

AI and Real Estate

8 5

14

16

DEPARTMENTS 3

President’s Perspective

16 Housing Advocate

4

REALTOR® Talk

18 CEO Corner

14 Commercial

20 From the Hotline

15 Industry View

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2024 MARYLAND REALTORS® LEADERSHIP TEAM

Maryland REALTORS®

200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348 443.716.3500 | www.mdrealtor.org

Leadership Team

Chris Hill

Cheryl Abrams Davis

PRESIDENT

PRESIDENT-ELECT

Century 21 New Millennium 23063 Three Notch Road California, MD 20619 301.862.2169 chris@thechrishillteam.com

RE/MAX United Real Estate 14340 Old Marlboro Pike Upper Marlboro, MD 20772 301-702-4200 cherylabrams@remax.net

Chris Hill | President Cheryl Abrams Davis | President-Elect Chris Jett | Treasurer Denise Lewis | Secretary Yolanda Muckle | Immediate Former President Chuck Kasky, RCE | Chief Executive Officer

Editor

Daniel Patrell | dan.patrell@mdrealtor.org

Advisory Committee

Rebekah Kleinman | Chair Kristin Skeweris | Vice Chair

Advertising

Arlene Braithwaite | 410.772.0820

Publication Design

HBP, Inc., 952 Frederick Street, Hagerstown, MD 21741 800.638.3508 | www.hbp.com The opinions expressed by nonstaff contributors may not reflect the official opinion of Maryland REALTORS® and/or policies derived from leadership and staff.

Denise Lewis

Chris Jett

SECRETARY

TREASURER

Brook-Owen Real Estate 41 E. Main Street Westminster, MD 21157 410-871-1110 denise@denisehasthekeys.com

Shore 4U Real Estate 23 Fountain Drive W 2nd Ocean City, MD 21842 443.523.2360 chris@shore4u.com

Mission Statement Maryland REALTORS® exists to support all segments of its membership and their specialties. Maryland REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®: ■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners; ■ Assists members in ethically and professionally serving the public; ■ Promotes and preserves the right to own, transfer and use real property; and ■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations.

In principle and in practice, Maryland REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.

Yolanda Muckle

Chuck Kasky, RCE

IMMEDIATE FORMER PRESIDENT

CHIEF EXECUTIVE OFFICER

Long & Foster Real Estate 9300 Lottsford Rd., Suite 500 Largo, MD 20774 301.249.1600 yolanda.muckle@lnf.com

Maryland REALTORS® 200 Harry S Truman Pkwy.

Suite 200 Annapolis, MD 21401 800.638.6425 chuck.kasky@mdrealtor.org

Maryland REALTOR® (USPS 0016-017) is published bimonthly by Maryland REALTORS®, Suite 200, 200 Harry S. Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, Suite 200, 200 Harry S. Truman Parkway, Annapolis, MD 21401-7348.

Member subscriptions of $3.81 are paid with annual dues.

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members.

Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing.

Also include purpose for request.

While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2024 Maryland REALTORS®, Inc.

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PRESIDENT’S PERSPECTIVE

Engaging on What Matters On the second day of this new year, I had the pleasure of meeting Salim Furth, Senior Research Fellow for the Mercatus Center at George Mason University. Salim studies housing policy, land use regulation, and is very knowledgeable about “missing middle housing,” something you’ve heard about from us quite a bit.

Salim and I were there to film our parts for Maryland REALTORS®’ latest video—this one about missing middle housing. This is an important topic. I encourage you to watch it and share with your community. As of this writing, this video is pinned to the top of our YouTube page. Follow the QR Code on this page to get there. You can hear more from Salim, by the way, as he is the featured guest on CEO Chuck Kasky’s February podcast, “Get Real Estate.” It’s definitely worth a listen.

We’re in the midst of our legislative season, and yes, we remain in a housing crisis. No surprises there, of course, and yet we’re happy to welcome others who recognize this, as well. In January, Governor Wes Moore pushed the issue further by saying, “You cannot continue to have economic growth if we continue to have a housing crisis.”

And he’s right.

Here’s my question—my challenge— to you: what are you doing as a REALTOR® to engage your community leaders and elected officials on the importance of missing middle

housing—duplexes, triplexes, even ADUs—in your community? What tools will you need, to have these conversations? Lobby Day will soon come, then go, but the issues remain of paramount importance. Keep an eye toward future “Maryland REALTOR® Reports” (formerly known as the “HotSheet”) for the State of Maryland Housing Infographic, not to mention complete results from our survey of Maryland voters taken at the beginning of the year. Keep our Lobby Day Talking Point kits handy, as well; they remain a useful, compact tool to communicate our legislative priorities.

to explore the world of Artificial Intelligence (AI) and its intersection with real estate. This story starts on page 8; there are things you can do now with AI to help your business.

We’re off to a great start in 2024.

There is a lot happening, with more to come. Register today for a Regional Roundtable. We look forward to engaging with you in person. ■

Register for our Regional Roundtables.

And then let’s talk about these issues further. Where? We have two Regional Roundtables: March 7 in Cambridge, and April 3 in the Baltimore area. Follow the QR Code to register for a roundtable.

These have proven to be insightful, impactful, and lively!

This is an interesting issue of Maryland REALTOR® magazine.

Maryland REALTORS® works closely with several multicultural real estate organizations. Individually, each organization works hard to support and protect their community— REALTORS® and consumers alike.

Collectively, they help all of us to embrace and practice the principles of Diversity, Equity, and Inclusion.

Check out the story, which starts on page 5.

And here’s something fun: We asked Maryland REALTORS® IT Director Michael Cunningham

MARYLAND REALTOR®

Watch our new Missing Middle Housing video.

Chris Hill Is Maryland REALTORS®’ 2024 President.

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REALTOR® TALK

Like and Subscribe, Maryland REALTORS®!

BY JACKY MUECK REALTORS® across the state work hard, going from showings to settlements to appraisals, so we at Maryland REALTORS® work hard for you, which includes building resources for REALTORS® and clients.

From webinar recordings, news announcements, and forms reviews, our YouTube channel is a resource that works with your schedule. Couldn’t make it to the webinar on the GRI designation? Not a problem, you can still access all the information in our Professional Development playlist.

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to the Maryland REALTORS® Legal Dream Team.

Our most recent videos include:

Our YouTube channel offers more than just an archive of our webinars. We offer opportunities to get to know our Leadership Team, like 2024 President Chris Hill, and staff members, from CEO Chuck Kasky

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Our NEW video about Missing Middle Housing

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The Maryland REALTORS® Legal Dream Team review of Legal Hot Topics.

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A MarylandHomeownership.com consumer webinar, focusing on first-time homebuyers (perfect to share with your clients!).

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A focus on REALTOR® Safety, featuring Watchdog Krav Maga and members in a safety training.

The Maryland REALTORS®’ Value Proposition, exploring the value members receive from our efforts in Advocacy, Legal, Strategic Communications, Professional Development, and Operations.

And there are more videos to come!

If you aren’t already, subscribe to our channel for updated information and critical resources that work for you on your time. Follow the QR Code to visit Maryland REALTORS®’ YouTube page.

Get Ready for a World of Opportunity The CIPS Institute, Certified International Property Specialist, will make its return this spring in May! If you’ve thought about expanding your client portfolio to include international opportunities, now is your time.

The CIPS Institute will run for five days. On May 15 and 17, it will be virtual only. The following week, May 20-22, classes will be taught hybrid or in person at GCAAR’s offices in Rockville. As 2024 gears up to be an active year, this could be the ideal means to expand your horizons.

Follow the QR Code for more information. ■

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Working for an Equitable Tomorrow Organizations that to help remove barriers, creating communities for all

M

aryland REALTORS® proudly works alongside organizations dedicated to Diversity, Equity, and Inclusion (DEI) efforts in real estate— gender, sexuality, race, and more. The groups highlighted here work to increase homeownership rates and accessibility for historically marginalized groups while working against discrimination and laws that can hurt the chances of finding a home for many. Through the Maryland REALTORS®’ DEI Advisory Group, members of these organizations work together for a more diverse, equitable, and inclusive real estate community for both REALTORS® and consumers.

The Asian Real Estate Association of America (AREAA) The Asian Real Estate Association of America (AREAA), advocates for sustainable homeownership, extending its mission beyond the boundaries of Asian American communities. We are devoted to fostering enduring housing opportunities for all Americans and amplifying the collective voice of housing and real estate professionals within this dynamic market.

At its core, AREAA is a champion for inclusivity, seeking to dismantle barriers to homeownership for everyone.

By moving beyond the confines of ethnic specificity, AREAA recognizes the broader implications of its mission. The association strives to create a landscape where every American family, regardless of their heritage, can achieve the dream of owning a home.

The heartbeat of AREAA lies in its commitment to sustainability—extending beyond environmental concerns to the long-term viability of homeownership itself. Sustainable homeownership is not just about immediate transactions but also about ensuring enduring financial stability, AREAA works tirelessly to equip both professionals and consumers with the tools needed to navigate the ever-evolving real estate landscape. There are two main approaches we take:

1. Being a national voice.

AREAA advocates for policies that foster an environment conducive to homeownership by consolidating the perspectives of professionals serving diverse communities.

In cultivating this national voice, AREAA becomes a unifying force, fostering collaboration among housing and real estate professionals. This unity is not just symbolic—it is a practical strategy to address the specific challenges faced by diverse communities.

AREAA knows that a collective front, fortified by a shared commitment to sustainable homeownership, can bring about substantive change.

2. Being dedicated to education.

AREAA invests in educational initiatives because informed professionals are better equipped to guide consumers. By enhancing the knowledge base of its members, AREAA contributes to the overall empowerment of those seeking homeownership opportunities, furthering its commitment to sustainability. AREAA’s education opportunities also play a pivotal role in strengthening the Asian American and Native Hawaiian/ Pacific Islander community (AANHPI), fostering resilience and empowerment.

AREAA’s mission transcends ethnic confines and embraces a vision of sustainable homeownership for all Americans. Through advocacy, collaboration, adaptability, education, and the strengthening of the AANHPI community, AREAA is a powerful national voice, amplifying the call for inclusive and enduring housing opportunities. AREAA not only serves the Asian American communities but enriches the broader American tapestry with the promise of a home for all.

For more information on AREAA, please follow the QR Code.

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The LGBTQ+ Real Estate Alliance, Central Maryland Chapter The LGBTQ+ Real Estate Alliance Central MD Chapter is entering a transformative 2024 where collaboration knows no limits, awareness blooms, and diversity is not just celebrated—it becomes the cornerstone of our collective success. We are architects of change in real estate, shaping a landscape where diversity thrives, and inclusion is not just a goal but a lived reality.

Founded as a non-profit corporation in June 2020 in Minnesota, the Alliance is dedicated to enhancing the professional lives of our members while providing consumers with the proper resources to assist in buying, selling, and enjoying their home. The Alliance advocates for fair housing for all and promotes LGBTQ+ homeownership. We elevate professionalism in the industry through education and networking.

In a year marred by a troubling surge of discriminatory legislation, the need for Diversity, Equity, and Inclusion (DEI) advocacy in real estate has never been more vital. It’s not just a call to action; it’s a beacon guiding us through these challenging times. Far too many are being impacted by the current wave of hate and discrimination. This includes those being forced to leave (or to consider leaving) their homes, friends, families, and jobs for safer communities. Whether it be a record number of anti-LGBTQ+ bills, unprecedented anti-Asian and anti-Hispanic hate crimes, or opposition to the Black Lives Matter efforts, the vocal minority is loud.

In the vibrant mosaic that is the LGBTQ+ community, every shade of humanity finds its place, regardless of race, nationality, or creed. United, our diversity is a key that unlocks a future where acceptance knows no bounds, and equality becomes the common language.

Together, we amplify our voices to pave the way for a more inclusive, equitable, and enlightened tomorrow.

This year, we’re tapping into the wealth of expertise within our membership and cultivating partnerships with our fellow DEI organizations to work on a diverse range of topics. We will be diving into what it is to be an ally, fostering understanding, and cultivating a community where authenticity and allyship are not just buzzwords but lived experiences. Whether you’re looking to slay the day with us at a Pride celebration, take the Stop Hate in Real Estate Pledge, or support the cause as a sponsor, there’s a place for everyone to champion a future where every home is a haven.

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Please follow the QR Code for more information on the Alliance’s Central Maryland chapter.

Maryland Hispanic Real Estate Association (MHREA) Members of The Maryland Hispanic Real Estate Association (MHREA) offer real estate and real estate related services for the benefit of Hispanic and Latino individuals who own, buy, sell, or rent property in the State of Maryland. We work to improve business conditions in real estate for the Latino Community.

The MHREA mission is to guide and encourage homeownership for Hispanic and Latino individuals, as well as help remove obstacles that they may face in obtaining homeownership. Our members strive to provide accurate information and professional advice to their clients and customers while treating everyone ethically, fairly, and equally.

MHREA utilizes its industry connections when connecting with the community at large, specifically business partners that provide goods and services to the Hispanic/Latino population. We strengthen these connections by networking with other organizations (including other Hispanic/Latino organizations), Hispanic/Latino agents in the industry, and spreading the word about our organization at Housing Fairs. We also work to establish connections with local, county and state officials and the local chambers of commerce for the Hispanic/Latino community.

MHREA provides resources and educational sessions utilizing current technologies to both the general public and to real estate professionals geared towards to the Hispanic/Latino population. These courses include: ■

Educational seminars

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Credit and financial seminars

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Process of renting a home

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Process of buying a home (and criteria to use when selecting a loan officer or real estate agent)

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Process of selling a home

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How to maintain a home

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Property tax savings programs

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How to identify and report discriminatory behavior

Another part of our mission includes expanding membership. We invite you to attend our next meeting. You do not have to speak Spanish to contribute to and be welcome in our organization. For more information and to join, please follow this QR Code.

National Association of Real Estate Brokers (NAREB)/Real Estate Brokers of Baltimore (REBB) The Real Estate Brokers of Baltimore, Inc., (REBB, Inc.) is the Baltimore chapter of the National Association of Real Estate Brokers (NAREB). REBB was chartered in 1948, one year after NAREB in 1947. Our collective mission is to promote and support democracy in housing locally and nationwide to eradicate discriminatory practices that prevent Black populations from owning homes.

The home ownership rate for Black people is low in comparison with other groups. According to NAREB’s 2023 State of Housing in Black America Report (SHIBA), in 2022, the Black homeownership rate was 45 percent, a level that was only modestly higher than it was at the time of the passage of the 1968 Fair Housing Act; the gap in homeownership rates between Black and white populations is larger than it was more than half a century ago.

The issues that pose challenges for home ownership are income, credit, and down payment. Although these challenges exist for some, Black people encounter significant hardships because of systematic barriers that have been in place for decades. Moreover, lack of inventory and high sales prices have impacted home affordability.

Diversity, Equity, and Inclusion (DEI) affects housing also. Conversations about housing disparities, which affect Black and brown communities, must continue.

DEI is important because diverse hiring practices from real estate agents and brokers, to loan officers, processors, underwriters, and appraisers, helps with supporting and understanding the needs of a community.

REBB Goals for 2024 include: 1.

Collaborate with organizations and partners who understand the importance of increasing home ownership in our community.

2. Educate consumers and provide financial literacy, which will assist them in purchasing a home.

REBB is committed to providing homebuyer workshops, seminars, panel discussions, and financial literacy sessions. We advocate for equality and democracy in housing so that families can have a piece of the American dream of home ownership and from this create generational wealth for their families.

REBB is participating in NAREB’s 60 City Community Day in April 2024. It will be a day when 100 Chapters across the country will provide homebuying workshops, and more, in their respective communities. Now is a great time to be a Realtist!

If you would like to learn more about REBB, please follow the QR Code.

If you would like to review the 2023 SHIBA Report, please follow the QR Code.

Women’s Council of REALTORS® of Greater Baltimore The Women’s Council of REALTORS® Greater Baltimore is a dynamic organization that is devoted to promoting Diversity, Equity, and Inclusion (DEI) within the real estate industry. While our name reflects our historical foundation, we are extremely proud to embrace a vision of inclusivity that welcomes all professionals, regardless of gender, to be a part of our community.

Our Mission Statement is clear: We are a network of successful REALTORS®, advancing women as professionals and leaders in business, the industry, and the communities we serve.

Did you know that, nationwide, membership in the Women’s Council is 10% male? We always extend a warm invitation to men to actively participate in our organization. At the Women’s Council of REALTORS® we understand that diversity is not just about representation; it’s about creating an environment where all unique perspectives and backgrounds are valued and celebrated. Our organization is enriched by having a diverse membership that enhances the real estate industry. continued on page 13 MARYLAND REALTOR®

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AI and Real Estate Moving Past the Buzz to Practical Uses

BY MICHAEL CUNNINGHAM

R

EALTORS® are no strangers to embracing new technologies. We have launched a constellation of apps, subscribed to dozens of services, and managed countless social networks to better serve our customers and streamline the transaction process.

The newest buzzword in popular media is AI, Artificial Intelligence. Thousands of articles have been written about how AI is going to disrupt the marketplace. Tech companies are jumping on the bandwagon, releasing new products or add-ons to existing ones that include AI. But beyond the noise, what are the short-term practical uses of the new technology in real estate?

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The most visible advancements in artificial intelligence revolve around 2 branches, large language models and natural language processing. Essentially, we have taught computers how to infer intention and context from our words and images and generate additional content based on the probability of what comes next.

By being able to infer intent and translate it into application-specific action, AI is going to revolutionize user interfaces and flatten the learning curve for many applications. Tasks that previously required years of experience, specialized training, and dedicated support teams are on the verge of becoming easy tools for the typical REALTOR® and their clientele.

Spot the AI Inaccuracies!

Notice anything wrong in this AI article? All the images were generated by DAL-E, an AI created by OpenAI. While they look great at first glance, closer examination shows some of the limitations of AI and how far it still must go.

Your mission, should you choose to accept it, is to find the mistakes and inconsistencies in these images.

Head over to our Facebook page, and beneath the post for this sidebar identify some of the mistakes you’ve seen in the AI-created images used in this story, and post your thoughts there.

…we have taught computers how to infer intention and context from our words and images and generate additional content based on the probability of what comes next.

AI has a lot of potential, but it is not infallible. Consider these images as “puzzles filled with errors.“ Everybody who accurately identifies AI-generated errors wins!

What do you win? The knowledge of your own sense of human-powered insight and expertise.

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Content generation is another powerful capability of AI. Although AI doesn’t truly comprehend what it is generating, it is often able to generate plausible content based on statistical patterns. A surprising amount of what we as humans write is derivative of previous work, which is something AI excels at generating.

AI tools are still at the early stages of development, but companies are rushing products to market at a breakneck speed. In the coming months we will be inundated with products trying to fulfill the marketing hype. Here’s what to look for.

Improved Property Search Natural language searches are already making it into mainstream apps, such as Zillow, which allow the search of MLS listings using the standard search fields, but it’s about to be taken to the next level.

As REALTORS® we have access to a huge amount of data beyond MLS listings. We have detailed information about inventory, communities, and our customers. But often we are forced to manually assemble data from multiple sources or lean upon years of hard-won knowledge of the market or individual properties. Consider the following request.

“I need a 4 bedroom, 2 bath house for under $600,000. I want a kitchen with dark cabinets and stainless appliances, and a large window above the sink. The stove should be gas. I need it to be less than 20 minutes from mom, 30 minutes from work, and walkable to the local elementary school.

The schools in the area should be good.”

Based on our current tools and data this request is possible, but it would be a time-consuming journey figuring out what neighborhoods met the distance, school requirements, looking up tax records, and reviewing listing photos.

AI will make this a lot easier. Because it can understand both the request and the data being searched regardless of formatting or source, it can tie together disparate data sources into a single search using natural language queries instead of a wall of dropdowns and checkboxes.

AI can even interpret listing photos and pull content found in the images. We will soon be able to search

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MLS, SDAT, RPR, Geolocation data, image data, etc. all from a single natural language search. AI excels at translation so all those queries can be made in the client’s native language.

Timeframe: Most of the pieces to do this already exist, vendors just need to license data and scale up their infrastructure. Expect many of these features to materialize in the next few months.

Impact: REALTORS® will need to create more detailed listings, encompassing richer narratives and imagery. Clients will likely become more specific in their searches, focusing on increasingly detailed features. This precision will unlock new avenues in investment property scouting, making it easier to identify opportunities that meet exacting criteria.

Automated Listing Generation AI is already being used to generate property listings with products like ListAssist and Epique. By analyzing a property’s characteristics from public data, AI can quickly draft detailed listings from existing property information. Moving forward these tools will be able to add additional detail from external data sources such as tax data, nearby points of interest, and photographs.

As AI is being fed detailed information, and listings follow a relatively straightforward template, listing generation is a great fit for automation. The program isn’t being asked to be terribly creative and it can even be asked to match your writing style for a more personalized feel.

Timeframe: Tools are available now with increasingly complex feature sets. Look for integration into existing mainline products this year.

Vendors to watch: ListAssist, Epique, and many others.

Impact: REALTOR®s will be able to create more detailed listings more quickly.

AI Assisted Visualization Projecting forward, AI will increasingly be used to visualize what a property could become, transforming listings into interactive, virtual dollhouses for clients to decorate. Potential buyers can change room colors, add furniture, and personalize spaces in a virtual environment, offering a dynamic and immersive experience.

Enhanced visualization tools, powered by AI, will provide customers with a clearer, more tangible sense of a property’s potential, aiding significantly in their decision-making process. These tools will allow REALTORS® to help clients overcome surface detail fixations such as paint color or personal property distractions such as decorating choices, which may have caused clients to dismiss properties in the past.

Personalized High-End Marketing AI’s analysis of publicly available data, like social media, can provide deep insights into individual customer preferences, paving the way for micromarketing strategies and ultimately leading to an era of Massively Automated Personalization. This means that high quality marketing materials, once designed for a broad audience, can now be tailored to the individual, enhancing engagement and relevance.

With AI we can craft automated, personalized media campaigns featuring multitouch emails, social media posts, flyers, brochures, newsletters, phone calls, and even video with little to no human intervention.

Timeframe: Tools are available now but not yet mature. Look for existing products to start incorporating some of these features into their existing products soon.

You can already see some early examples like Redfin’s “Redesign” feature that allows changing of paint colors and floor covering on any listing. Other services like REimagineHome and Virtual Staging AI take this to the next level, with the ability to declutter a room or remove and replace furniture.

It is important to use caution when using “enhanced” imagery. For example, removing a piece of furniture that was in front of a window may force the AI to guess what was behind it. Did the window continue to the floor, or was the dresser hiding a hole in the wall? For listings, these changes may constitute false advertising so proceed with caution.

Timeframe: Tools are available now but not yet mature.

Vendors to watch: Roomvo, REimagineHome, Virtual Staging AI Impact: Presents new opportunities for REALTOR®s to bond with their clients as they assist them in selecting the “right” home.

Vendors to watch: Epique, Gan.AI, Canva Impact: REALTORS®s will need to up their marketing game to keep pace with the slick advertising of competitors.

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Although AI doesn’t truly comprehend what it is generating, it is often able to generate plausible content based on statistical patterns.

Improved Personal Digital Assistants When tools like Siri and Google Assistant were launched, many thought that we were entering an era where we could give our phone a task, and it would autonomously fulfill our request. The vision was never fully realized because every function required hundreds of keywords to cover the different ways someone could ask for something. Think of all the different ways that we could ask our phone to call grandma: the programmers would have to handwrite code for each variation.

Multiply this for every function of every app and you get the idea why this was never going to work the way Steve Jobs envisioned.

13 years later AI is poised to fulfill many of these promises. If AI can translate our language into intent, it becomes a lot easier to integrate the apps we use every day. Programmers only need to worry about the features, not all the ways people might request them.

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Expect major vendors like Apple and Google to offer much better assistants in the next year.

The real change is going to happen when we can start customizing these assistants to work with our business apps and our workflows. Once this happens, we can start making requests like: “Hey Google, put together 5 comps for the 115 Poplar Way house and text them to me, Tina and Roger Smith for discussion. Also include the tax records for the property.” or “Hey, Siri put together an offer from the Smith’s on the 115 Poplar Way house for $650,000 using the standard template but add an inspection contingency and a $10,000 escalation clause.

Email me a Word document for review. Also, text Fay Jones at KW and let her know we will have an offer to her shortly.”

There are a countless number of tasks like this that we all could do every day. A lot of the plumbing to achieve this already exists using services like Zapier and Power Automate. AI simply provides a usable way to interact with them that doesn’t require a PhD in computer science.

Timeframe: Unknown Vendors to watch: Google, Apple, Zapier, Productive.Ai Impact: Provides a productivity boost to REALTORS and could greatly speed up transactions.

leading to substantial productivity improvements for REALTORS® and their clients, with minimal drawbacks.

The path for AI in content creation is more challenging. Tasks like generating property listings or customizing marketing materials are manageable and can be fine-tuned into usable products quickly. In contrast, AI continues to struggle with more open-ended writing and creative tasks, often requiring careful human oversight to avoid errors.

Despite these challenges, demand for AI tools will continue to grow due to their considerable potential to enhance productivity. Over the next 12 to 18 months, as the gap between marketing promises and actual functionality narrows, we can expect a clearer vision of the future to come. In the meantime, take the time to play with the early offerings and have fun! ■

What does the future hold?

AI technology, while still in an early phase, is evolving rapidly with an influx of innovative ideas and solutions.

Currently, AI is better at interpreting and responding to user inputs than in initiating conversations. Products that excel in user interactions, by converting human intentions into actionable technological responses, are poised to make significant early impacts. These products will simplify the complex interfaces of traditional software,

Michael Cunningham is human, not AI, and is the IT Director for Maryland REALTORS®.

WORKING FOR AN EQUITABLE TOMORROW continued from page 7

Our commitment to DEI is reflected in several key initiatives for 2024: ■

Inclusive Membership: We actively encourage and welcome everyone to become part of our organization. By opening our doors to all real estate professionals and affiliates, we foster a more diverse and collaborative community.

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Events, Education and Training: We offer a range of educational resources and workshops that include the perspectives of all. This empowers our members to create equitable inclusive workspaces.

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Networking: Our networking events facilitate connections among members and non-members from diverse backgrounds. These interactions help build bridges, promote understanding, and facilitate career growth.

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Community Outreach: Our commitment extends beyond our membership. Women’s Council of REALTORS® Greater Baltimore engages in community outreach that supports underserved communities.

Through our commitment to DEI, the Women’s Council of REALTORS® Greater Baltimore underscores its determination to shape a real estate industry that mirrors the diverse fabric of our society. Collectively, we have the power to forge a real estate community that is fortified, more vibrant and exemplifies inclusivity.

To find out more and to connect with the Women’s Council of REALTORS® Greater Baltimore, please follow the QR Code. ■ MARYLAND REALTOR®

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COMMERCIAL

Get Ready to INNOVATE

BY DIAMOND SMITH, ESQ. Maryland REALTORS® is excited to present its Commercial Symposium, INNOVATE 2024, on Thursday, March 28, 2024, at the College Park Marriott featuring guest speaker, Dr. Anirban Basu.

discuss properties with commercial industry professionals and learn of current opportunities that may be available to your clients.

Do you have a property that you would like to include in the Deal Exchange? If so, all submissions must be submitted by March 21, 2024. This opportunity is exclusive to attendees of INNOVATE 2024.

For more information on how to submit your property, please visit the events page on our website at mdrealtor.org. Be sure to stay up to date on the Symposium and our upcoming 2024 commercial webinars through our bi-weekly Maryland REALTOR® Reports (formerly the HotSheet) and social media.

Dr. Basu is Chairman and CEO of Sage Policy Group, an economic and policy consulting firm that provides strategic analytical services to energy suppliers, law firms, medical systems, government agencies, and real estate developers. Selected as one of Maryland’s 50 most influential people by the Daily Record in 2007, 2016, and 2022, developers, commercial REALTORS®, and residential REALTORS® alike will enjoy this micro and macroeconomics seminar from Dr. Basu.

Do you know a top producing commercial REALTOR® and want to recognize their hard work? Are you that top producing commercial REALTOR®? If so, the Maryland REALTORS® Commercial Excellence Award could be calling your name. This award recognizes the REALTOR® member who best carries the REALTOR® brand in local commercial real estate circles. The prospective recipient must be a member of Maryland REALTORS® and their local board

Dr Basu’s presentation will be followed by a panel discussion featuring local economic development specialists and an afternoon filled with informative commercial Continuing Education courses. To register for INNOVATE 2024, follow the QR Code at the bottom of this page.

In addition to informative musthave industry insight, Maryland REALTORS® is happy to announce the return of our Deal Exchange and happy hour at the close of the Symposium. As an attendee of INNOVATE 2024, you will have the opportunity to include one commercial property in the Symposium’s Deal Exchange presentation. At the Deal Exchange, you will have the opportunity to

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Register Today for INNOVATE 2024.

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and have had no Ethics violations in the past 3 years. This award recognizes civic involvement in a variety of ways, so please share the ways the REALTOR® gives back to their community. Transactions in sales and leasing are weighed equally. Also considered will be the complexity of issues and the ability and efficacy of solving the problems that arise.

Last year’s recipient of the Maryland REALTORS® Commercial Excellence Award, Ed Stanfield, was recognized for his 50+ years of outstanding contributions to the commercial real estate industry.

Look around at your peers, who’s next?

For more information, please visit mdrealtor.org. All applications must be submitted by February 15, 2024. The winner will be nnounced during the INNOVATE 2024 Commercial Symposium. See you there! ■

Diamond Smith, Esq., is Associate Council at Maryland REALTORS®

INDUSTRY VIEW

Manage Inspection Expectations!

BY RACHEL OSLUND

When buyers understand more about houses (and home inspections) before they even start looking at properties, they are more likely to get to settlement. Here are the top six ways to manage clients’ expectations and get to settlement!

to health and safety and components that are not working the way they were intended to work, we’re not doing a code inspection. They should know that an unrenovated home built in the 1900s is not required to meet current code to sell.

1. There’s No Such Thing as a Perfect House

3. Only Two Types of Houses

Every home, no matter how new and shiny it looks, is going to have its quirks and what we inspectors call “defects” or “observations.”

And we all know that a home inspection report with a long list of defects (no matter how tiny or inconsequential) can scare a buyer from fulfilling on their ultimate goal of buying the house. So, prepare buyers for the reality that there’s no such thing as a flawless home.

We’re in the business of uncovering those imperfections and providing a bit of perspective so that they can make informed decisions and not walk away from a home when it really is what they want.

2. A Home Inspection Isn’t a Code Inspection Home Inspectors are not here to identify or enforce building codes or city/county regulations. We’re here to evaluate the home’s current condition and point out any potential issues. Remind buyers that while we are looking for conditions related

Repeat after me: There are only two types of houses: ones that have problems and ones that are going to have problems.” It’s a home truth (pun intended) that every property, from the cozy bungalow to the sprawling mansion, has its own set of issues waiting to emerge. It’s all about managing expectations and making sure buyers don’t expect perfection. Understanding that regular and consistent home maintenance can reduce the potential for problems in the future can be useful in this part of the conversation.

4. Old but Operating as Intended?

Not a Defect Old doesn’t always mean bad.

If those vintage appliances or 30-year-old roof are still doing what they were designed to do, they won’t make it onto the report as defects. As Home Inspectors, we are focused on functionality and safety. Because we want to manage expectations, we will remind buyers to budget to replace those components (you might even recommend a home warranty in that situation).

5. It’s Not About the Cosmetics A home inspection is not a beauty contest. We won’t scrutinize the color of the curtains or style of the wallpaper. Our job is to look beyond the surface and at the structural, mechanical, plumbing, and electrical components of the property.

6. Not a Pass or Fail Last but not least, there is no passing or failing a home inspection.

We’re not here to give homes a grade. Instead, we’re here to provide a comprehensive snapshot of a property’s condition, warts and all.

It’s all about helping your clients make an informed decision, not labeling a house as “good” or “bad.”

Home inspections can be scary and overwhelming, especially for first-time home buyers. It’s up to you to keep them really present to their commitment to buy a home and to help them understand what to expect before they even hit the streets to look at houses. Keep in mind that EVERYTHING can be fixed—it just might take some time and/or money. ■

MARYLAND REALTOR®

Rachel Oslund is the Managing Partner of LodeStar Inspection Services.

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HOUSING ADVOCATE

Dollars and Sense

BY LISA MAY “Economics? It’s supply and demand. That’s it!”

While that line from Saturday Night Live character Father Guido Sarducci was played for laughs, there is quite a bit of truth to the importance of that principle in our economy.

What is the law of supply and demand? It states that the supply of a good or service and the demand for it in the marketplace are linked together, ultimately affecting the price that is charged for those items.

When demand exceeds supply, the price tends to go up. Conversely, when supply exceeds demand, the price tends to go down to incentivize consumers to purchase that product or use that service.

In theory, housing is no exception to the rule but with so much unmet demand, in an efficient market producers would rush in to fill the gap. But that hasn’t happened, in large part because of the constraints local governments have placed on new housing.

and demand for other commodities. In September 2023, the Financial Times outlined study results showing that consumers correctly noted what would happen to prices when supply shortages or overages exist for cars, grain, labor and imported goods. Not only that, but they also chose the correct answer by a nearly two-to-one margin.

Also, we are witnessing a rejection of this fundamental concept when it comes to housing production. A significant number of consumers and even state and local elected officials believe that building additional housing units (i.e., adding supply) causes housing prices to increase, not decrease. The thinking is so prevalent that scholars now have a term for it: supply skepticism.

However, when asked what impact a 10% increase in housing supply would have on local housing prices, 40% of respondents said housing prices would rise, compared to only one-third who correctly stated they would fall.

Supply skepticism is particularly vexing when you consider that Americans subscribe to supply

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Why do we think this is? Researchers have some ideas—but also data to refute those assumptions. |

mdrealtor.org

First, you will hear a number of advocates and policy makers state that housing holds a unique place in the economy. REALTORS® would likely agree. Yet what makes housing unique is that it actually has more constraints on supply than other commodities.

States, counties, and cities have the land area that they have. Short of annexation from other areas (which is net neutral), they are not making more of it. And, unlike other consumer goods, excess housing stock in one area of the country or even within the same state cannot be relocated to areas of undersupply as you could with food or sneakers. continued on page 19

Sell More With Maryland.

The Maryland Mortgage Program is here to help REALTORS® by offering flexible financing options for their customers to purchase affordable homes throughout the state. Take a look at our Specialty Loan partnership products for eligible Maryland first-time homebuyers:

GREENBELT HOME ADVANTAGE

Gives current renters in zip code 20770 purchasing in Greenbelt, a grant of $15,000 for down payment assistance and closing cost assistance.

MONTGOMERY EMPLOYEE DPA LOAN (MEDPAL)

Helps employees of certain Montgomery County departments purchase a home in Montgomery County by offering an MMP first loan with a generous Down Payment Assistance (DPA) second loan.

MONTGOMERY HOMEOWNERSHIP PROGRAM

Helps purchase a home in Montgomery County by offering an MMP first loan with a generous Down Payment Assistance (DPA) second loan.

Learn more about how our programs can help you sell more:

mmp.Maryland.gov/Realtors

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Square Only use blue and/or white.

For more details check out our Brand Guidelines.

@MarylandMMP

CEO CORNER

The Two Sides of Value

BY CHUCK KASKY

We talk a lot about value and recently distributed a video about Maryland REALTORS®’ Value Proposition. I hope you’ve had the opportunity to view it. If not, please follow the QR code at the end of this article to view it on YouTube.

Our Value Proposition is the unique statement of the value we offer to our members. It differentiates why being a member is different than not being one. It’s the reason members pay their dues, invest in a class, or invest in new technology. It is a promise of what you will receive in exchange for your investment.

to support legislation that positively impacts the community and combat legislation that adversely impacts your business. Also, we worked tirelessly to convince the Real Estate Commission to recognize virtual CE, not just during the pandemic, but permanently.

We are committed to providing, among other things: ■

Influential Advocacy in the legislative and regulatory processes.

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Tools like Statewide Forms and continuing education to enhance your business.

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The latest and most accurate industry information and guidance.

Our Statewide Forms provide the tools our members rely on to conduct over 63,500 transactions each year. We also provide education, guidance on best practices, and professional development opportunities to enhance our members’ businesses.

As they say, if you’re not at the table, you’re on the menu. This statement couldn’t be truer when it comes to protecting our industry and homeownership and strengthening our communities.

Our many communications channels reach members where they are. By some estimates, we have five generations of professionals in our industry, and we know what it takes to reach you. Whether it’s this magazine in hard copy or on our website; through video, podcast, or social media, we will curate the most timely, complete, and accurate information available

Maryland REALTORS® and its advocacy staff work hard to ensure your voice is heard, both in the Maryland General Assembly and at the Maryland Real Estate Commission.

We work with elected officials

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and disseminate it to our members through all channels at our disposal.

We will continue to provide practical guidance on the use of the many tools we offer. The sum of all this is our Value Proposition.

The other type of value we need to keep front and center is how our members’ experience and expertise help home buyers and sellers realize their dreams of homeownership or transitioning from one living situation to the next one.

For most Americans, purchasing real property is the largest transaction they will make in their lifetime. In buying real property, whether that’s a home, investment property, vacation home, etc., there are hundreds of thousands of dollars on the line.

These purchases are anything but routine. They are high stakes and complex. It’s no wonder that 89% of Americans choose to work with a REALTOR® to represent them in such transactions. Most people want trusted, professional experts to

guide them through the most significant financial decision of their lives.

Buyer representation has enduring value. In fact, more buyers use a REALTOR® now than 20 years ago.

The explosive growth of information has not, as predicted, resulted in fewer buyers choosing representation. Prospective buyers are easily overwhelmed by the volume of information and complexity of the process and have come to realize that professional assistance is crucial to the overall success of their transaction.

For sellers, a great agent is a jack of all trades. We help sellers prepare their home for sale, set a price, determine a marketing strategy, and guide the negotiations with buyers. A listing agent

will know how to maximize your property value, so sellers receive top dollar for their home. They’ll be able to identify which improvements the seller should make to the home to increase the amount it sells for. They may also recommend service providers like inspectors, contractors, painters, landscapers, stagers, etc.

We will continue to monitor industry trends, especially any that may be forthcoming as a result of

the numerous lawsuits around the country. No matter what happens, Maryland REALTORS® will continue to offer value to our members and our members will always provide value to consumers. We will adjust our practices, if necessary, but we will never shy away from being proud of the work we do or apologize for earning a living doing what we love. ■

Chuck Kasky is CEO of Maryland REALTORS® and host of the Association’s podcast, “Get Real Estate,” which is available through any podcast app.

The Maryland REALTORS® Value Proposition

HOUSING ADVOCATE continued from page 19

Another common refrain is that you only help housing affordability not with market-rate housing but by building dedicated affordable housing units. Again, the research does not bear this out in practice.

Adding just high-end housing to an area has benefits across the income spectrum. Certainly, only upperincome earners will have that housing available to them. However, that new supply allows them to vacate more moderately priced housing, and in turn, allows moderate earners to vacate housing that is then available for lower-income earners.

This is true for rental rates as well.

Contrary to claims that only rent control can stop rising prices, data again points to additional supply as a key component of decreasing rates. Minneapolis, a city which

has constructed more multi-family housing than any of its surrounding metro areas, saw rental rates decrease relative to inflation since 2017. Other major cities in the United States and internationally are seeing the same results: Increased supply equals more affordable rents.

Interested in learning more about supply skepticism and housing supply? Follow the QR codes to these three intriguing articles.

Repeat after me: building any new homes reduces housing costs for all

As with many of these debates, the answer to anecdote is data.

Fortunately for housing advocates, the data backs our claims that the answers to our housing crisis start with building more housing. ■

The Housing Crisis Is Breaking People’s Brains – The Atlantic

Lisa May is the Director of Advocacy and Public Policy for Maryland REALTORS®.

MARYLAND REALTOR®

NIMBYism and Economic Ignorance (reason.com)

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FROM THE HOTLINE

About Transaction Coordinators

BY KATHLEEN DARTEZ, ESQ.

Q:

Agents within my brokerage have asked me about the rules regarding transaction coordinators.

Some have asked about off-site or virtual transaction management services, while others have asked about hiring licensed or unlicensed transaction coordinators.

Can you provide any? guidance?

A: Although the Maryland Real

impermissible activities. As a best practice, we strongly urge you to have a written agreement with transaction coordinators.

Estate Commission (MREC) has not enacted any regulations directly addressing the role of a transaction coordinator, they have issued guidance regarding which activities are permissible for an unlicensed assistant to perform and which activities are impermissible. Please follow the QR code at the end of this article to review information on MREC’s Website.

In the absence of a Maryland regulation, we would suggest the following “best practices” with respect to transaction coordinators:

Regardless of whether a transaction coordinator is on-site or off-site, the Broker still has the responsibility to “reasonably and adequately” supervise the transaction coordinator. We have heard that some companies offering virtual transaction management services are unwilling to enter into a written agreement to address matters such as confidentiality, compensation, and permissible/

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Any transaction coordinator providing services for a brokerage must have a written agreement with the Broker of the brokerage for which those transaction coordinator services are being provided;

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The written agreement should specify the services being provided by the transaction coordinator and any compensation being paid to the transaction coordinator for those services;

Guidelines for the Use of Unlicensed Employees and Online Chat Providers Maryland Real Estate Commission (MREC) Division of Occupational and Professional Licensing

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The written agreement should identify activities which are permissible or impermissible for an unlicensed individual to perform, consistent with MREC’s guidance mentioned above;

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The written agreement should specify that the transaction coordinator owes the Broker the duty of confidentiality.

A Broker who hires a transaction coordinator remains responsible for the transaction. Hiring a transaction coordinator in no way eliminates the Broker’s responsibilities or obligations to the Broker’s customer or client, to the other Broker, or to the parties to the transaction. ■

Kathleen Dartez, Esq., is the Director of Legal Affairs for Maryland REALTORS®’.

You have challenges?

We have answers.

The Maryland REALTORS® Legal Hotline

Ask us about: 9 Contracts 9 Addenda and Inspections 9 Forms 9 General Legal Information 9 Licensing 9 Real Estate Transactions

Call us:

Monday, Wednesday, Friday

10 am – 12 pm and 2 pm – 4 pm

Reach us online: members need to login

The Maryland REALTORS® Legal Hotline is your member-exclusive tool to help you. When you have a legal question relating to real estate, our lawyers—the Maryland REALTORS® Legal Dream Team—will provide information that follows the law and clarifies your next steps.

When you have challenges, we have answers.

Call (443) 716-3502

DISCOVER A WORLD OF OPPORTUNITY Register today

for the CIPS Institute and unlock a world of opportunity here and abroad.

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