A tale of technocratization and the real estate “super” broker.

The empowered real estate professional of the future will be supported by artificial intelligence derived from contextual local data to guide the process and provide insights. Like any other major shift in the world, it will take time to derive meaningful algorithms. In the process, there will be a refinement in ethics given that software and hardware solutions are inherently subjective with a given goal in mind, and it is often just about making money, (not all, some) and not aiming to solve a problem. To some degree, that cycle will correct itself as people will eventually decipher between such competing voices; hopefully machine learning will produce super intelligence that is self motivating toward “mindfulness.” Just as we hope that real estate brokerages and developers  that make a career out of “opportunity zones” act beyond speech and actually purport positive change by giving back to the same community. 

  Constituents use artificial intelligence keywords to differentiate and gain market share, because technically, and literally, there are current laws governing how a real estate brokerage should be structured. This actually limits what can be done by a robot vs a licensed real estate agent depending on location. While the purported tech rhetoric has to some degree dislocated smaller brokerages and brokers, there are players that realized that in order to compete aggressively it is imperative that they go beyond speech and actually use relevant data to feed the machine and obtain aiding answers in pricing and pairing of customer and real asset. Thus, traditional closed systems that own compilations of such relevant data sets, can now crunch that data to churn it into gold, thereby enhancing the real estate agent in their brokerage into a “super agent.” This process or paradigm shift will create a division between brokerages who cannot afford to buy market intelligence or data, and scientists and engineers to build smart systems. Technocratization also created a market- place for non traditional real estate brokerage services for different classes (single family, condos, ect). Moreover, there are companies offering to streamline most of the transactional process for a fraction of the traditional cost. While I do not imagine that there is a unicorn that can streamline the buying or selling process for every asset, there are some fair artificial intelligence solutions that can be helpful, depending on the user’s goal. Human time and effort is still needed to guide the algorithms, label the data, collect data, and understand the linguistic environments where such “innovation” takes place. 

    Conclusively, I would not make my bet on having artificial intelligence dramatically replace a system and process that is local, and to some degree analog, operating through a specific legal framework changed overnight. The process of creating meaning in our society and cultures takes time, that includes the understanding of new technologies by many, the cost of such shift, and the adoption of it. The questions that we are left to ponder are related to: what is the value that is created? Who loses? people without access? Does it solve a real problem? Is it long term? Is it viable? And it will eventually become the norm? Within what framework?

Advertisements

Building for Sale, Milan, Italy

Available for sale, an office building located in Milan, Italy (area: Vigentino, south of Milano) currently listed at $6,200,000. “Mirror Towers” was built in 1985 and renovated in 2004 featuring 15 floors. Current use is office, but it could be converted to residential use. Parking accommodates 47 cars.  Subject property located near high traffic zones. Please inquire for additional details. Info@manhattanlifere.com mirror towersIMG-2170

Technological Innovation and the added value of a real estate professional in a transaction.

There is a tremendous dynamic movement in the innovation of digital spaces for communication and information. One of the biggest industries moving forward, it seems, is the technoscape. What this means, of course, is that there will be more possibilities for individuals looking to lease or purchase an apartment – to explore listings and options. New York City is a very particular market, somewhat contextual, and because of the process involved in purchasing  either a cooperative, or a condominium, or even leasing a retail space, or office space, there is indeed a need for real estate brokers. Who will be the leaders of tomorrow in this arena? the personnel, adapting to that shift.  Real estate investments, for example, are not just about finding a “foreclosure,” but understanding various approaches to buying an asset that will continue to produce, even in an uncertain economic cycle. In other words, the local knowledge that a broker brings, by being involved with the market first hand, with the process, the valuation, the socio structural understanding, will be an added value to the continuation of digital implementations to distribute listings. When a prospective buyer, renter, business owner develops a trusting partnership with a real estate professional, they can add value for a better transaction. It is not as useful to see them as one entity replacing another. I always look forward to working with my customers/clients, and to understand their priorities, and to share the information that is available via the various innovative informative mediums. Team work; the leadership of today, and tomorrow, is many, not one isolated incident with an app after dark looking for ways to get around the broker. 

The importance of listening and communication

We are all busy it seems. New York City is a very fast-paced city. Recently, I have noticed, that people are constantly so distracted, they do not listen, they do not take time to respond properly. We are heading towards a speech style that is going to sound more like text. That is, short chopped up sentences that leaves us confused as to the intended meaning of the message. Imagine what would it be like if people paused in the first contact of interaction to say: “hello, how are you today?” pause, and then go on. It is something to think about…..

New Year/Inventory

2013 could be a year of additional movement for our real estate market. At this time, judging from research – it appears that inventory is somewhat low and prices have started to see some increases. While there are new listings; both cooperatives and condominiums,  the selection is still somewhat controlled. Since the  (2008 +)  economic decline, affecting new constructions and loans there was a decline in new construction, something that is also changing as of  2012, and into 2013. There are some new notable luxury condominiums splashing the midtown landscape. Additionally, the Hudson Yards appears to have approval for a 90 plus year lease deal to be able to develop residential and commercial properties, which will continue to add to the on-going revitalization of Manhattan’s undeveloped areas.