Latest / The Jon Sanchez Show / How AI Is Changing Real Estate Forever

Transcript

How AI Is Changing Real Estate Forever · The Jon Sanchez Show

• Jon G. Sanchez, CEO: Good Thursday afternoon to you. Welcome to the Jon Sanchez show on News Talk which it's a pleasure to be with you. And we got all the boys. We're going to go around the horn welcoming back Mr. Dwight Millard of On Cue Home Loans. How are you, my friend? We missed you. ⁓ Dwight Millard: It's a pleasure to be back with you, Jon. you know, and I got good, I got good connection too. You know, when you travel, you don't have, it's awful, but you know, it is, it is. Well, least, at least I'm not driving and trying to do it like you've said anymore. You know, I just, ⁓ so cheeseburger and a Coke. Yeah, yeah. My phone in the middle. No, I know. ⁓ Jon G. Sanchez, CEO: It's always a challenge when you do a live radio. This is true. This is true. Cheeseburger in one hand doing 88. Yeah, that's right. Exactly. Well, Not currently. As he's got older, Aaron, he's mellowed out. let's just say, let's see, Dwight, you and I have been together on this show since 2008, right? Yeah. So when he was really rocking, Aaron, you know, I'm going to say around that 2010, 2011. Aaron Clark, Edge Realty: It's not hard to imagine that, to be honest. So, Dwight Millard: And then eight and then eight, yeah, yeah, yeah. Jon G. Sanchez, CEO: And then there after the recovery time period, ask him how many speeding tickets he got because he was B B. Yeah. Yeah. Yeah. Asked. Yeah. His son. Yeah. Yeah. Dwight Millard: Mmm. You can ask, no, you can ask Kaden. Just ask Kaden. And I've only been let off one time. I got pulled over going up Mount Rose and he said, you're on the Jon Sanchez show. And I go, yeah, it's starting in a few minutes. ⁓ yeah, we got, yeah, he let me go. yeah, yeah, as a listener. ⁓ yes, absolutely. Aaron Clark, Edge Realty: ⁓ I know the stories. Yeah. Jon G. Sanchez, CEO: I remember that. I remember that. ⁓ Can we make this quick? Just tell me where I saw it. It's nice having an HP is is is listeners of the show. We appreciate that. But he's mellowed out there. And as you know, like like like we all have, he keeps it under 70 in most parts. Yeah. And he can't he he can't eat cheeseburgers anymore. So maybe he's, know, he's not he. Now I know what those taste like. I don't remember those anymore. Yeah. Dwight Millard: I have, have. Mm-hmm. Yeah, exactly. Yeah, there you go. No fries, cheeseburger. Yeah, yeah. There's no more fries under the seats anymore, you know. Yeah. Aaron Clark, Edge Realty: Yeah, the body won't let the mind do what it wants to do now. He's lactose intolerant. Jon G. Sanchez, CEO: You know, you're, you know, you're getting old and your biggest treat in life is when you look forward to like, okay, I'm going to have a cheat day. I'm going to go to in and out and I'm not going to get a double double. I'm going to get a single and you just savor every bite because you know, you're not going to able to do that again for a couple of months. ⁓ my God. That's so funny. Aaron Clark of Andrew Liddy. How are you? He's Aaron's a shake in his head. God, man. These old, these old guys, they just Dwight Millard: yeah, yeah. Aaron Clark, Edge Realty: Yeah. Dwight Millard: Right, ⁓ Aaron Clark, Edge Realty: Good, good. Dwight Millard: He's still got a little time left to do all this. Yeah. Jon G. Sanchez, CEO: Yeah, exactly. You got, you got enough time to eat some cheeseburgers. Not going to affect you. You're a healthy young man. Aaron Clark, Edge Realty: Well, and I don't want to get speeding tickets right now because gas prices are way too high. keeping it below the speed limit, you know? Dwight Millard: No. Yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah, yeah. Jon G. Sanchez, CEO: Yeah, a real funny story before we let of you know what we're going to be talking about today. But Aaron and I were chatting on what was it Tuesday during one of the breaks and we were talking about gas prices and obviously how expensive things are. And you're so many of your buddies are now like, hey, think it's time for me to go get a Tesla because I mean, you know, this has got to be great for Tesla sales of these prices at this level. You just know it. ⁓ yeah. Aaron Clark, Edge Realty: Yeah. ⁓ I can't imagine. Evie's got to be going crazy. Jon G. Sanchez, CEO: Absolutely. Good. That's crazy. speaking of Aaron, today is going to be a lot about Aaron. You know, one of the great things we love about having Aaron on when he has to fill in for Corey is younger than most of us. So he's in the know. He's a technology. ⁓ I him a technology genius because you guys don't even hear half of his knowledge about technology that we chat about during breaks and after hours and things like that. So I to bring it back into your corner today, Aaron. don't remember how long ago it was, but it was a while back that ⁓ asked you to talk about AI in real estate. But have changed a lot, right? I mean, almost every day things change in AI. And so I want to bring this topic back because obviously this weather feels like it's summertime, other than today is a little bit cooler. So it's going to be, as you and Corey both have said, it was going to be an early selling season. And I think that is definitely to come true in this situation. Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: You know, we're talking about disruption, right? AI has disrupted my world, it's disrupted Dwight's world and starting to disrupt your world, the world of real estate. you know, we all remember the kind the egg on the face that Zillow guy a few years back when they tried using AI and some of their models and things like ⁓ So I to just really get into with you today, talking about AI and ⁓ how you a realtor use it in estate, but really, I want you, and you're so good at doing this, I want you to kind of peer into your crystal ball ⁓ about where you think things are gonna be over say the next two to five years, not that far out, because world is evolving as fast as Dwight and I's as far as the AI is concerned. everybody's concerned about losing jobs, but as we all know, not the three us, we're very confident in what we do. And I'll tell you, I see enough mistakes that AI makes when I try to use it. So, you know, good luck trying to ⁓ live your life without an advisor or mortgage banker or realtor or real estate broker. luck on that, right? And we all have, you know, are convinced and wholeheartedly in all seriousness that the will be, it'll be a combination of a great professional. care if you're talking to an attorney, CPA or anything that we all do in combination with slash technology, right? That is the absolute most powerful combination. ⁓ And I know nobody better that utilizes technology and specifically AI than this man, Aaron Clark. Aaron, ⁓ going to kind of freeform it here. I know we've got some pre-prepared, well, doesn't make sense, some prepared questions for you. ⁓ But want to dig into your heart because you so passionate about AI as I am. And I really want to dig into your mind and your heart and find out ⁓ what you see on right now, how you're using it. And but also, like I said, most important to me, I don't know about Dwight, is where you're seeing this going, right? Because we can't blink an eye without AI changing in all forms of our life right now. Aaron Clark, Edge Realty: Absolutely, yeah, because I mean, in the past, you'd sit down, you'd crunch numbers, you'd try to add every single aspect ratio, neighborhood data points, et cetera. And it would take hours, days, weeks sometimes, especially if you're doing something that was not really a common property, like a specific home in a tracked neighborhood. And AI has helped so much to be able to accelerate that process and taking in more considerable points that we couldn't before. Jon G. Sanchez, CEO: Yes. Mm-hmm. Mm-hmm. All right. Yeah, yeah, yeah. Aaron Clark, Edge Realty: It's a huge tool that's beneficial right now in my. Jon G. Sanchez, CEO: Yeah, it is. It is. Absolutely it is. yeah, your world is a realtor, but also the beneficial it's used correctly and you how to use it from a real estate professional standpoint for the buyer and or the seller, of course. ⁓ It's like world. I always spend a lot of time with a new client educating them upfront how the investments work, the good points, the bad points, et cetera, ⁓ because that invested upfront, number one, you a happy client. That's all we care about. And when things get rough, they understand. It's like, ⁓ yeah, I remember talking about that. ⁓ Aaron Clark, Edge Realty: Yes. Jon G. Sanchez, CEO: And same with you, Aaron and Dwight, the more you prepare your clients, which both of you are so excellent at doing that, and informing them about how things are changing and so on and so forth. You know, again, the bottom line is that makes a happy client, which is what each of us get out of bed every day to do, is to please people, Dwight, chime in very quickly here. Dwight Millard: Absolutely. Well, mean, yeah, you're starting to see the AI just really kick in. You we've had AI for a long time, right? D-U-L-P. You know, program, they put those algorithms in there, and we the results. But now they're taking it another step, right? And we'll talk about, they're just going to a whole other step. Will they ⁓ able to the true professional? I it. Because I mean, if you get, ⁓ you know, how do let AI know, you know, they just cut me Jon G. Sanchez, CEO: You have a long time. Dwight Millard: 10 hours a week. I mean, that's it's it gets a little tougher there and everybody's got everybody's got a situation and a story, Jon. So, ⁓ know, it's it's hard to tell a I that story. So, yeah, it'll be interesting. I Aaron's got a lot here to I mean, yeah, it's moving fast. You warned us about this. ⁓ You and both. This isn't going to take, you know, years. This is taking months, ⁓ months, months. yeah. Jon G. Sanchez, CEO: Sure, sure. Yes, that's a good way to put it. Situation and a story. It is. Yeah. years now, months. Yeah, you got it. Yeah, it's gonna be a fun topic, guys. I can't wait to get to that. let's get you up to date on what happened in the market today. Again, interesting day. is ⁓ I spend three hours every day on this radio show sharing with you everything that I experienced and watching and learn ⁓ know, so and so forth. Because, you know, guys, as shared this before, I become I beat that. I've been very frustrated these last few weeks because you've heard me say it over and over again. This market has no common sense at this point. You expect it to do one thing that historically it would have done, and it does just the opposite. So you almost go, well, whatever experience tells me to do, I'm going to do the opposite. And then the next day, like today up until mid-session, it was acting the way that it should. So you're getting a few days where it's like, OK, ⁓ parameters are happening, so the markets should go up or it should go down. Yeah, I'm not crazy. Aaron Clark, Edge Realty: I'm not crazy. Dwight Millard: Yeah. Jon G. Sanchez, CEO: But the point is, what's interesting is, guys a heck of a lot smarter than women, a heck of a lot smarter than me that manage billions if not trillions of dollars. I watch them all day long on CNBC, and they're as confused. I saw an interview this morning with the fund manager. He manages billions, hundreds of billions of dollars, and he's like, it's anybody's guess. My team and I, we don't know. Same thing as I just said, we think things are going to do this, this, and this, but then Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez, CEO: just the opposite happens. it's got everybody. And it's normal, all right? Because you've got two major headwinds right now. You've got the president that you never know what he's going to say when he comes out. He had a big cabinet meeting this morning, made some comments like, I'm really surprised that the market and oil prices are holding up as good as they are. I'm like, oh, good gosh, please don't tell you. And sure enough, there goes the market, because the market goes, well, if the president thinks that the market shouldn't be this high, we're sure as heck not going to be. And sure enough, we, you know. We saw oil prices go up all of sudden. We saw the stock market go down. So you're dealing with that. And then, of course, the headlines coming out. Iran saying one thing and ⁓ saying another and on on. It's just very much of a headline driven. And then, of course, you get the entire behind the scenes of what oil is doing. ⁓ I good luck trying to figure out where the next move on oil is. I think going to go up, as I've said before. ⁓ But at same ⁓ like we just out a moment ago, ⁓ it takes is one comment from Iran or one comment from the from the president ⁓ they it can go south on you Yeah, I mean the oil is moving like a stock does nowadays. So that said so it is a confusing market There's no doubt about that. I'm not gonna sure you could it but ⁓ let share with you what with what the president had to say a few after the After the stock closed so it was about 115 120 right around there and I want to I ⁓ want to try find the scene so He came out and he said that he is going to pause the military attack on Iran's energy infrastructure until April the 6th. So remember, we started this week. Remember, it was supposed to be Saturday. Or excuse me, Friday by 5 o'clock Eastern time, right? Then on Saturday, he extended that for a week. And then today, he came out and said, OK, April 6 is now the the new deadline to go attack the energy infrastructures of Iran. Once again, whether you like Trump or you dislike him or not, the world is telling him, do not do it. think as military leaders are telling him, do not do it, it is by all accounts an actual war crime. You're not supposed to purposely attack, even though of course Iran is doing it, you're not supposed to attack those type of infrastructures, right? It's just, but you war, who writes the rules in war? So given us a little bit of a spike. I'm seeing oil prices just relax just a little bit here. So it could be a good day tomorrow after those comments, but that's what I mean. You just never know when something's gonna come out like that. But we back from the break, I wanna kind of share you a comment that he made on True Social this morning that really got the day started in somewhat of a negative fashion. And then we just kind of up doing that. Poor Dwight's gonna have to tell us what these mortgage rates that I took a sneak peek in. Yeah, buckle your seatbelt on this one. So tough day in the equity markets, tough day in oil, tough day in precious metals, and absolutely a tough day in the mortgage side. But we're going to lay it out for you, and then we're going to get into our topic, how AI is changing real estate forever, with Aaron and Dwight. Let's turn it over to Kristen Snow, right now, at Traffic Center. Hello, Kristen. Welcome back to the Jon Sanchez show on Newstalk 780k awaits with Aaron Clark of Edgerie Lady and Dwight Mallard of OnCue Home Loans. Alright, here's how we finish the day. Buckle your seatbelts as I said earlier. 469 decline on the Dow down 1.01%. 45,960 was our closing level. The Nasdaq, this is the one that hurts. I hate having to say the five word when I give a Nasdaq closing number. 522 point decline on the NASDAQ, down 2.38 % to a close of 21,408. S &P down 115, 1.74%, closing at 64,777. And the Russell 2000 down 1.7%, a 43 point give up there. It was rising oil prices. It was, like I said, rising bond yields. The comments that we spent the first sector of the show talking about, it was everything just kind of thrown in. You know, you kind of look at this and we did have some periods where I thought this could be definitely easily be a five, 600 point loss days. So, you know, once again, set your expectations low and you're surprised, right? So, yeah, finishing down for 69, not all that bad when you thought it was going to be six or 700 points, right? That's the, that's the mental game you need to play with yourself. Um, but let's go to the oil speaking of which $4 and 10 cent gain. Dwight Millard: Mm-hmm. Yeah. Jon G. Sanchez, CEO: Closed at 9443. Aaron, remember on Tuesday, I numerous times, $100 oil, $100 oil, that's going to be the line in the sand there. Now, let share with you, ⁓ again, before get to Dwight, because this kind of ties into this, ⁓ let me with you what the president said this morning. Again, this kind got things started. It was a true social post. And he said ⁓ Iran, quote, better serious soon before it's too late, because once that happens, there is, and now it goes into capital letters, no turning back and it won't be pretty. also labeled Iran's negotiators as very different and strange, claiming they were begging the US to make a deal to end the now four week war. Well, again, Iran came back today. Remember yesterday US presented a 15 point plan. Iran came back yesterday with their own five point plan. I didn't see, not that I'm world negotiator, I didn't see one point on there that I think we would give on. ⁓ You know, they want to be in control of the the of the straight they want Basically to be paid for the destruction that we have caused in Iran. I mean just a bunch of crazy stuff Today they came back and said well, maybe we're open for negotiations But we really don't want to talk to the US because right now what Trump is doing he's going through Pakistan That's where the all these Negotiations are going through at this point. So we really didn't get anywhere What I'm sensing is, know, I think both sides are trying to throw some some softballs out there just try to calm things down a little bit. Evidently 10 ships got through the strait. These were oil tankers. So what that going to really equate to? Obviously it didn't have much impact on the oil prices. ⁓ that broke today. thought, well, maybe we're going to see oil come down, but it didn't quite happen. OK, let's to the bond market. This is where it was a tough one also. Nine basis point increase on the 10-year. You'll close $4.42. Dwight, take it away. Dwight Millard: Ahem. I have to? No. Here we Well, this, okay. ⁓ So, know, mortgage-backed securities, repriced three times today, Jon. So it was down 66 points mortgage-backed securities, which is a big, big movement. ⁓ you know, you get an... Jon G. Sanchez, CEO: You have to add it. I had to do the stock market. You got to do the you got to do the mortgage rates now. So put that in English, put that in English for people. Dwight Millard: eighth ⁓ in the cost for about every three or four points. So you, ⁓ you, quite a bit today. You know, now it'll kind of carry over to tomorrow, but you can't expect anything, not during a war over a weekend. I mean, so you're, I suspect you just get phenomenal opening, you'll see deterioration from what we currently have now. But just to enlighten, yeah. ⁓ Jon G. Sanchez, CEO: Let me interject one point because you shared with me with one of the analyst calls that you receive on big days. And he brought up a really good point indicating that support level was broken. So once again, folks, you hear me talk about support levels on stock charts and things. bond traders look at the exact same thing on the bonds. And so ⁓ 66 basis point decline. So remember, what Dwight is saying in English is that bond went down 66 basis points. Remember, there's 100 basis points and 1%. And of course, we know the inverse reaction, the bond yield goes up and therefore now deliver your bad news. Now they understand. Dwight Millard: Yeah, and Jon, and the Treasury demands and mortgage are just horrible, right? Nobody wants them. So, I mean, so now kind of fast forward. Now, go back exactly four weeks today, Jon, four weeks from today, we were euphoric about, we went into 5.99. That was on Thursday before we went into the Iran thing on Saturday. So here we are today, 5.99 today. You're at 6.62 on your 30-year fixed rate. Jon G. Sanchez, CEO: Saturday. 63 basis points in four weeks. Dwight Millard: Yeah, and keep in mind that this is 780 borrower. When they do this survey, we've had this gentleman on but when they do this survey, it's the of the top, and this typically has some point, if not one point, cost to it. you are now, you're a 660 credit score, 5 down MI, you might be in the sevens. So I'm not saying that be doom and gloom, but I mean, it's just really tough. Jon G. Sanchez, CEO: Mm-hmm. Yeah, no facts are facts. Dwight Millard: We didn't hit this, we were talking off air, it was August of 25, that was the last time we saw this type of rate. since August we've actually improved and now we've taken 10 steps backwards. it's. Jon G. Sanchez, CEO: Aaron, I want to bring you in the fold because were talking again, as Dwight said, during the break. And you brought up a very interesting point I want you to share with the audience. And I Aaron, what are you hearing as a realtor right now? What are you hearing, seeing, et cetera? And you ⁓ that most especially first-time buyers, no clue really what's going on with rates. So if Dwight quotes them, ⁓ whatever, 662, 670, whatever, they don't have any baseline to go against. Now someone may be going from their first property to their second one. Like you said, they're more in tuned, of course, where mortgage rates are. I found that interesting. I would have thought in today's technology world, everybody would be dialed in. But both of you, said the same thing, Dwight. A lot of people just have no idea that 662 is up substantially from four weeks ago, right, at 599. So Aaron, give us your comments on that. Aaron Clark, Edge Realty: Yeah, well, I mean, you got to think most first time home buyers sort of have a stereotypical hyper dramatized version of what it's like to buy a house in their brain that they got to have so much money that they don't have and this, that and the other. So they're already way beyond expectation of reality. So then when we sit them down and we go, you know, you can buy something at 3 % down or three and a half, whatever, 5%. And they don't really have a basis for what a payment would be. Then right now they're just looking at can I afford that? So when they find out, okay, need, you I can get into something with $15,000 down and my payment's gonna be affordable, they don't really care if it's 6.5%, 7%, or 5%. They just wanna know that they can make that payment. So those guys that are coming in, if they can afford it, they're doing it. Yeah. Jon G. Sanchez, CEO: Mm-hmm. Mm-hmm. Yeah, and that's human nature, right? I was going to say, Aaron, is that more towards the first time, Byron? But I'm thinking, I think we're all that way, no matter what financial level we're at in life, right? Dwight Millard: Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: Yeah, we are. I think people that currently own property that have a loan, they're all, I mean, it's like the first conversation when I get into a room with anybody that knows me and what I do, they go, what are rates at? And it's like, I'm not even, don't even, I don't do it, Dwight does, but I still, you know, because everybody wants to know, maybe I should refi. Is it time to pull out some money? Is it time to do this? Is it time to do that? And so it's sort of a temperature regulation for how Dwight Millard: little more savvy. Jon G. Sanchez, CEO: Right. Aaron Clark, Edge Realty: the housing market is doing in their mind. And it's something that everybody's always interested in. But the first time homebuyer has no reference point for that. Dwight Millard: Yeah. Jon, to add to that, it's like the borrower walks into a model home and builder will tell you this first thing they ask is what's your incentive? They haven't even looked at the house, they know what lots are available, so this the programming that's going on. But real quickly, I have a very intelligent client right now and I talked to him, his house isn't gonna be delivered until June. Jon G. Sanchez, CEO: Mmm. Dwight Millard: So he kind of got, called me up and says, Hey, I just want to check in. rates are going down. Jon, where have you been for the last, where have you been? He's retired military. So, you know, he's in the know. knows that what's going on. But to my kind of Aaron's point, most of them aren't in the know. And I was very dumbfounded when he said, I said, you're kidding me, right? you been watching things? you? And he just thought they were still going down. Jon G. Sanchez, CEO: It's not intelligent, but yeah, yeah. Yeah. Okay. Yeah. Yep, yep. I got a marketing piece of advice for you, Dwight. You know what I'd do if I were you? I would do every, probably in the morning or whenever you wanted it, I'd send out a rate update to your clientele, especially guys like that, right? Because just keeping them in the know of what's going on, then they're not gonna complain to you when you go, hey, yeah, you're at 666. Well, wait a minute, Dwight, a month ago when I started this, you said 599, right? Like you and I have always joked. Dwight Millard: Yeah. Jon G. Sanchez, CEO: get blamed when the stock market goes down, you get blamed when mortgage rates go up. So yeah, this little idea there. ⁓ Dwight Millard: Right. It'd be one of your clients calling out, here we're over 50,000 on the Dow. Well, yeah, that was forever ago. We're not there. ⁓ Yeah. Jon G. Sanchez, CEO: Yeah, yeah, right, right, right. Yeah, Yeah, just not there. Perfect. All right, guys. Well, great update. All right, folks, you're up to date. What happened in the market, the mortgage side of things, et cetera. When we come back, we're going to get into Aaron's world, the world of AI and real estate. It's going to be fascinating. Don't go anywhere. Let's turn it over to Jim Poston. He's got News, Traffic, and Weather. Hi, Jim. Welcome back to the Jon Sanchez Show on Newstalk 780K, which with Dwight Blard of OnCue Home. loans and Aaron Clark of Edgrility. All right, once again, we lost 469 on the Dow, then NASDAQ gave up 100, or excuse me, two, I'm looking wrong one, as they gave up 500. See, my brain did that on purpose, guys. My brain does not want to say down 522 points on the NASDAQ, but that's what it was, 2.38 % loss, 115 decline on the S &P, which is, again, that one's painful to say also. All right, we're gonna get into a little AI with you here with Aaron. You know, again, Dwight Millard: Eric? ⁓ Jon G. Sanchez, CEO: We've always loved having Aaron on the show when he fills in for Corey because again, he's of the younger generation and he has always embraced technology. you're pretty much, I mean, I don't think you mind me saying this, you're pretty much a one man business. mean, you don't, yeah, you don't have any assistants, you do everything. And you know what blew me away, Dwight? I don't know if you were on the show when I, or maybe we were talking off Aaron, you literally said you do everything off your phone. Aaron Clark, Edge Realty: I am a one man business, yeah. I do everything. Dwight Millard: Mmm. Yeah. Aaron Clark, Edge Realty: Mm-hmm, pretty much. Other than this. Jon G. Sanchez, CEO: that you have literally closed realist. Yeah, you've other than this. Yeah. Sorry to have you blow blow blow. Yeah. Sorry to make you blow the dust off your laptop. ⁓ Yeah, exactly. But but I mean, that's that's because Aaron utilizes technology and so many on the marketing side, which is a whole nother whole nother subject. So he is one we definitely want pick his brain. And then we're going to bring Dwight into the fold, of course, and talk about AI and in the Dwight Millard: And he might still be on the phone. Aaron Clark, Edge Realty: Yeah, I know. have to charge it twice a week. ⁓ Jon G. Sanchez, CEO: mortgage side of things. know, Aaron, why do you think a few years ago, right? We're going to start AI pricing homes, right? This is something, of course, when Zillow came around, everybody went, ⁓ my God, I can finally find out what the price of my home is without hiring an appraiser. And then, like I said, a few years ago, I remember was Clitor's Day, Zillow came out, they tried using, we didn't really know what AI was at that point. I forget what they called it, but they came out and said, yeah, we're going to really be using you know, AI, again, no one knew what it was and they fell flat on their face. They ended up taking hundreds of millions of dollars of write-offs. I think the following quarters, I think they shut that side of it down, which I thought was strange because they kind of started, it wasn't known as AI, but you know, essentially it was AI, right? Aaron Clark, Edge Realty: Well, they were doing more algorithmic data collection and then calculations. So think of it like importing a bunch of numbers into an Excel spreadsheet and each cell has its own formula and then it interprets the data by using those formulas. That's more of what they were doing. And that was actually the downfall because five homes in the same neighborhood that are the exact same square footage do not equal the same value. We know that obviously, which is common sense. And so when you have Jon G. Sanchez, CEO: Okay. I see. Aaron Clark, Edge Realty: algorithmic data that's running through an Excel spreadsheet with using formulated cells, you're going to get the same computation for all five homes when all five homes actually shouldn't have the same computation. Now AI comes in and it takes in all of those other data points will separate those five and utilize the information to come out with five different valuations of those five same square foot homes. It's interpreting it, correct. Jon G. Sanchez, CEO: Mm-hmm, sure. Okay. but it's interpreting the data. It's not just presenting that it's interpreting the data, right? Aaron Clark, Edge Realty: it's interpreting it and it's taking more. So it's just relying upon mathematical computation. can look trends, can look at the county websites, it can look at the map location, it can look at everything. No, it only crunches numbers. ⁓ Dwight Millard: Yeah. Jon G. Sanchez, CEO: right, which an algorithm can't. Let me stop you right there, because think that you, thank you. You bring up an excellent point. think, shame on me for not explaining that. An algorithm is nothing more than a formula, right? And it says, if this happens, you do this. That's how you've heard my examples on the stock market side. But AI can take that algorithm and then go, hmm, let's see. And Aaron wanted to know what the trend is in Northwest Reno for a three-bedroom, two-bath, 1,800 square foot home. Dwight Millard: Right. Aaron Clark, Edge Realty: Correct. Yes. Jon G. Sanchez, CEO: What's the trend, right? AI is going to answer that in the blink of an eye for you, where the old days of just an algorithm is going to say, OK, here's your data. Now, Aaron Clark, realtor extraordinaire, you, your brain, interpret that data. Aaron Clark, Edge Realty: Correct. Exactly. So AI will be able to take all that data, give you some sort of a range point, if you will, and then it relies upon someone like me to come along and then take that information and then put it together into some sort of a strategy. So that's the part where AI can't really cross the threshold. Jon G. Sanchez, CEO: prevalent is the use of AI in aspects of being a realtor these days? ⁓ How is it among your competition? And be honest, is this that, I mean, if you're going to be a realtor now, you've got to be able to use AI and interpret data and so on and so forth, or is it still ⁓ in its stages? Aaron Clark, Edge Realty: I would say that the primary use function that I see out there with AI and Realtors is being used more in the ⁓ video world and staging. Cause you can, ⁓ can upload photos. There's so many AI sites where for Realtors where you pay a monthly fee, you can upload photos and then it basically creates this really dramatic video walkthrough just off the photos. So it fills in all the blanks and makes the video. Jon G. Sanchez, CEO: Hmm, interesting. Mm-hmm. Aaron Clark, Edge Realty: It does all these zoom ins and zoom outs and all that. Social media posts. The thing that I've seen it use a lot for would be digital staging. So if you have a vacant home, ⁓ so it to be, so again, computation, we could send a photo to some photography company in and pay $5 a photo and their customer service department will throw in a bunch of furniture and you could kind of it wasn't great. Jon G. Sanchez, CEO: Talk to me about that, yes. Okay. Aaron Clark, Edge Realty: Now, AI, it can put it in and add shadows and all kinds of different things and make it look very realistic for the space with a click of a button. So it's accelerated it tremendously. So that's where I see the majority of it. Because you're selling the staging that's in there, you're using the staging to identify the space. So I always tell people, like, when you do staging of a home or whatever, it's primarily to identify space for people. Because it's hard to tell. Jon G. Sanchez, CEO: Why is that not false advertising? Mm-hmm. Sure. Sure. Yeah. Aaron Clark, Edge Realty: in a photo of a vacant home. I see AI being utilized in those arenas more than any and even that I would say only maybe five 10 % of realtors out there that are doing it. Marketing side, correct. Jon G. Sanchez, CEO: Wow. So more on the marketing side than the actual valuations, et cetera. Why is it not being used more? you need, mean, think, I mean, you think about it, yeah, the marketing is great, but I want to make sure that my realtor is telling me this is a good price to pay for the home based on his or her data analysis, right? And if so, if agents aren't doing that, they're really not doing their job. Aaron Clark, Edge Realty: I think that. Mm-hmm. Yes. I mean, you've heard the term you can, you can feed a man a fish, but or you can teach a man to fish and he'll eat for the rest of his life. Right. So AI is, is ⁓ of similar to that. You have to be a fisherman. You have to actually learn the that it processes the way it thinks. And then you have to learn how to cue it and it's its own language. And so we've talked about this several times. The key to AI is you have to be able to speak AI language right now. Jon G. Sanchez, CEO: Yes, that's right. Yes. Aaron Clark, Edge Realty: and it's moving fast. So you have to be so invested in the growth of it and how it's changing and stay up on top of it. And it's very overwhelming. So because of that, I think a lot of people, it's just so overwhelming. They just go to hell with it and I'm not gonna worry about it. But then the others are there and are embracing it. They're doing fantastic. Jon G. Sanchez, CEO: I don't know if I agree with you real quick before we go to break. don't know if I agree with you because we, folks you hear LLMs, large language models. So chat GPT is a prime example of that, right, Aaron? You said there and you just talked to like, hey, give me the price history of Southwest Reno, just as an example, right? And it'll go in and do all of it's data, et cetera. Why are you saying that? you gotta know what to ask it because that's the idea of LLMs is anybody can ask it. It's not like Claude, for example, where you gotta almost get into some programming. Aaron Clark, Edge Realty: Because when you ask it, those questions on those simplistic forms that you just stated, you get simplistic data. don't get, you don't get, yes, you have to know how to prompt it in a way that you tell it what weight and perspective it needs to put into each thing. for example, right now, we are looking at a seller or a buyer's market. I don't know if you saw recent articles. Jon G. Sanchez, CEO: simplistic answers. Garbage in garbage out the old adage. Aaron Clark, Edge Realty: the amount of listings that are hitting the market are exceeding the amount of buyers. So we're flipping. So we have to explain to AI these sorts of nuances within it, tell it to take everything into consideration, even those articles. And then once it's taken all that stuff into consideration, then it can actually give a true interpretation on what a trend is on a specific house in the neighborhood. If you just say, are homes doing in Southwest Reno or in this neighborhood, do you think my home's worth? Jon G. Sanchez, CEO: Mm-hmm. Aaron Clark, Edge Realty: you know what it's going to do? It's going to pull realtor.com, Zillow.com, Trullia.com, all these different websites, and it's just going to pull their estimates and whatever, and then it's going to use what their, don't know what the right word would be, their propagandized sort of housing only information to create a price, ⁓ take into scope that there might be a new grocery store going down the street. And you want all of that. Jon G. Sanchez, CEO: Mm-hmm. Mm-hmm. All right. Okay. There you go, there you go. Love it, that's great stuff. right, we're gonna turn it over to Dwight when we come back. We'll talk about how AI is influencing the mortgage world. Let's wrap it up with Kristen Snow. She is in the Right Now Traffic Center. Hello, my dear. Welcome back to the Jon Sanchez Show on New Stock 780K, which is Dwight Millard of OnCue Home Loans. What's phone number there, Mr. Millard? Dwight Millard: Yes, sir, 240-2022. Jon G. Sanchez, CEO: Thank you, sir. Mr. Aaron Clark of Edge Reality, phone number, sir. Aaron Clark, Edge Realty: 673 6700 Jon G. Sanchez, CEO: Beautiful. right, we're talking about AI in real estate. I know we've touched on this a few times. We're trying to bring a couple different angles. ⁓ that was an excellent explanation, difference between algorithms and AI, ⁓ your industry is using it. So wrap up with you before I turn it over to Dwight, what would you tell one of our listeners right now that is looking to hire a real estate agent that they should ask in those initial meeting questions in regards to the utilization of that agent or broker in AI? Because almost a must now, right? ⁓ okay, so what should they be asking? Aaron Clark, Edge Realty: ⁓ absolutely. I mean, you're, you're, you're in a place where you're in a deficit if you're not utilizing it. So you just need to ask people what they're using. If they're regular users of those AI models, if how they're using it, you know, are they using it to help marketing your property? Are they using it to help data collect for your property? Things like that. I mean, the hard part right now is can anyone really prove it? I mean, not The only way you can really tell is when they list it is test it. Yeah. Jon G. Sanchez, CEO: Test them. Test it. Aaron Clark, Edge Realty: Get on there and look at it. Ask him the questions. Have him show you. So that's another one. Jon G. Sanchez, CEO: Well, you brought up a really good point during the break. you said, look at Jon, GPT, which everybody knows, everybody uses, is third grade. You get into open clod and perplexity and some of these others. Now you're college level, right? So I that's a defining point, right, Dwight? I mean, do you want your agent using something as simple as chat GPT? Because frankly, now that you've said that, if that's the case, why do I need to go pay 3 to 6 % commission to an agent if that's what they're going Because I could do the same thing, right? We've all seen stories on the internet. Aaron Clark, Edge Realty: Mm-hmm. Dwight Millard: Yeah. Jon G. Sanchez, CEO: guys that have bypassed the real estate agent, they use ChatGPT or some other forms of AI list the house, to do everything, right? Make the listing, do everything. I just watched a video the other day of a guy in Florida and he did the whole thing himself. any points on that, Dwight, ⁓ mean, Aaron Clark, Edge Realty: No, I mean, that's that's pretty much it. You got to make sure that they're using it. If they are just saying, ⁓ I'm using chat GPT to write up your listing remarks, then run because that's not I mean, that's that's nothing. There's so much more that goes into it. Jon G. Sanchez, CEO: I've just got some breaking news here. Trump has signed an executive order to circumvent Congress and unilaterally pay the TSA agents as Congress continues to negotiate funding or funding of the Department of Homeland Security. So, looks like they're gonna get their paychecks. Yeah, there you go. All right, Dwight, bring us up to date on AI in your world of mortgages. Dwight Millard: Yeah. Aaron Clark, Edge Realty: Good news for flyers. Dwight Millard: Yeah, so quickly, Jon, we've talked about automated approvals. Game changer, believe it or not, they were introduced in the industry in 1997. So yeah, so 29 years ago. But what it does is it takes the algorithms. It really came into play once we started developing credit scores, right? Because then it took your credit score and the algorithms and it generated an approval. And what you really want it to do is, OK. Jon G. Sanchez, CEO: Wow. All right. We got it. We got it. I'm sorry. Do I? We got to go. bad. I didn't look at the clock. Great job always boys. We'll see everybody tomorrow. A couple of us.