Tag: North Texas real estate

  • AI Won’t Save You

    AI Won’t Save You

    When talking about AI, people tend to act like it affects everyone equally.

    I don’t think that’s true.

    Look back to the steroid era in baseball. A lot of people talked as though steroids turned ordinary players into superstars. As if anyone could take a few injections and suddenly start hitting fifty home runs.

    That wasn’t really what happened.

    You still had to be able to hit a baseball. And that’s a skill most people never come close to mastering.

    The player who couldn’t hit before steroids? He couldn’t hit afterward either. The player with mediocre talent and a mediocre work ethic didn’t magically become great.

    What steroids did was amplify what was already there.

    Most people focus on the added strength. The home runs. The highlights. But the bigger advantage was recovery. A player could train harder and more often. He could deal with nagging injuries better. He could stay closer to his peak performance over a long season.

    The biggest gains went to the people who already had talent and were already willing to work. Those so keen on getting an edge they’d keep at it even after it became illegal.

    A decent player might become a good player. A good player might become a star. A star might become an all-time great. Later disgraced to hear some tell it, but at the time it was amazing to watch.

    AI is a lot like this.

    The person who doesn’t understand land values today isn’t suddenly going to understand land values because AI exists. The person who has poor judgment isn’t going to develop good judgment because a machine gives them answers.

    In some cases, the opposite may happen.

    As I said last week, there are really two groups using AI right now.

    One group is using it as an escape hatch. They don’t want to do the work, learn the subject, or develop the expertise. They want the answer without the process.

    That works right up until the machine gives them a bad answer.

    Then they’re stuck, because they never learned enough to recognize the mistake.

    The other group is still doing the work. They’re still learning, still analyzing, and still making the decisions. AI simply helps them move faster. It helps organize information, challenge assumptions, and automate things that used to consume more time than they were worth.

    That’s how I use it.

    When I’m working on a Land Reality Check, AI isn’t determining value. It isn’t selecting comparable sales. It isn’t deciding what matters and what doesn’t.

    I’m doing those things. Because I’m responsible for the answer. But because I can do things faster, I improve more quickly.

    People predicting AI will make everyone equally capable are missing something.

    The people using it to avoid thinking are going to get worse, and those using it to enhance their thinking are going to get better.

    And the gap is likely to grow a lot faster than most people expect.


    PS – Most landowners are not planning to sell today.

    But markets change. Development pressure changes. Buyer demand changes too.

    The people who make the best decisions usually aren’t the ones scrambling to learn everything at the last minute. They’re the ones who already have a pretty good idea of what’s happening around them.

    That’s what the MBR Land Reality Check is for.

    It looks at nearby sales, competing properties, market activity, and the factors affecting value that are easy to miss if you don’t spend much time in the land business.

    You don’t have to do anything with the information.

    But is it a bad idea to know where things stand?


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  • You Can Use It, But Be Careful Not To Lose It

    You Can Use It, But Be Careful Not To Lose It

    On Wednesday I wrote about how someone can sound pretty smart to people who know less than they do. At least until an actual expert walks into the room.

    Most of the time it’s harmless, or close enough for government work. Nobody is really acting on what these people are saying, so a little error doesn’t matter much.

    But if they did act on it, things could get expensive.

    There’s a term for it: knowing just enough to be dangerous.

    It’s hard to go anywhere today without hearing somebody talk about AI.

    Depending on who you ask, AI is either going to make everyone rich, put everyone out of work, or both.

    I don’t know.

    But it’s obviously making the “knowing just enough to be dangerous” problem worse.

    This week Dan Kennedy mentioned a commercial real estate investor who was bragging that he had delegated all the due diligence on a deal to AI and got an answer in eight and a half minutes.

    The investor thought this was wonderful.

    Kennedy’s response was simple:

    “Have you ever done the same analysis yourself and compared the two?”

    That’s the right question.

    Because there are really two kinds of people using AI right now.

    The first group is using it to avoid doing the work.

    Those people are headed for trouble, and you should avoid doing business with them if you notice it.

    Not because AI is always wrong. It’s not.

    But because they have no reliable way to know when it’s wrong.

    And if they keep relying on it, eventually they won’t know how to do the work without it.

    Think about navigation in your car. Most people can still get around, but they’re not nearly as good at it as they used to be. The skill slowly deteriorates because they stopped using it.

    The same thing can happen with analysis, writing, valuation, negotiation, or anything else.

    If you’re not careful, before long you’re no longer using the tool. The tool is using you.

    You’re just accepting answers instead of evaluating them.

    It won’t bite you every time.

    But it doesn’t have to.

    The people getting the most value from AI tend to use it differently.

    They’re still doing the thinking.

    They’re still forming opinions.

    They’re still responsible for the answer.

    I use AI for things. I’d be crazy not to.

    But I’m using it to enhance and accelerate what I was already doing, not as an easy button like on the commercials.

    I’m able to create better reports and information for people, much faster than I could a year ago.

    Not because the AI is doing the work.

    Because I’m still doing the work.

    It helps organize information. It can challenge assumptions. Sometimes it points out something I missed. Sometimes it’s right. Other times I tell it to shove off.

    But it isn’t making the decision.

    I am.

    There’s a difference between using a tool to augment what you’re doing and letting the tool do all the work.

    Right now those two people can look very similar.

    Give it a few years.

    They won’t.



    PPS – If you’re not ready for a Land Reality Check but enjoy reading about land, negotiation, markets, and how business actually works in the real world, you can sign up below and get future posts in your inbox.

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  • Just Smart Enough To Get You In Trouble

    Just Smart Enough To Get You In Trouble

    I just renewed my real estate license.

    I wasn’t looking forward to the mandatory continuing education classes. Thankfully it turned out I wasn’t due to take any this time.

    But it did get me thinking about all the classes I’ve taken in the past.

    I’m old enough that when I started in this business, the internet technically existed but wasn’t really part of everyday life yet. So the classes were in person.

    A memory from one of them came back to me after writing last week about staying in your lane.

    The thing about real estate licensing classes is they are designed for the average agent. And since most agents end up working in residential, that’s what almost everything revolves around.

    Most of the coursework is designed to teach you what not to say so you don’t get sued later.

    Which is useful as far as it goes.

    As for learning how to become a successful broker, I’d say the value is more questionable. You’d probably learn at least as much reading this blog for a few months.

    Especially if you understand the importance of reading between the lines.

    But anyway.

    Almost the entire course was geared toward houses.

    Contracts, disclosures, house valuations, common residential problems. Pretty boring if you already know that’s not the business you’re going to be in.

    Out of about thirty hours they spent maybe fifteen minutes one day touching on land and commercial property.

    Which was entertaining, although probably not for the reason they intended. Pretty much everything they said was backwards.

    Maybe not backwards in a technical sense. More like simplified to the point that it stopped being true in the real world.

    To a normal person, it would sound smart enough in conversation.

    But if you actually applied it the way they described, you could get yourself or your client in trouble pretty quickly.

    Luckily almost nobody else in that room was ever going to deal with serious land or commercial transactions anyway.

    So no real harm done.

    Did I say anything?

    No.

    It wasn’t worth turning a continuing education class into a debate. And I didn’t particularly feel like helping introduce the word “mansplaining” into the culture twenty years early.

    But I remember thinking even then that it was another example of why specialization matters.

    People assume broad familiarity is the same thing as expertise.

    Usually it isn’t.

    Especially in businesses where nuance is what keeps small mistakes from becoming expensive ones.



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  • You Owe It To Yourself To Work With An Expert

    You Owe It To Yourself To Work With An Expert

    One of the people I did a MBR Land Reality Check for reached out to me recently. They had a rental house coming available and asked if I’d like to handle it for them.

    Which is sort of how I always talk about this business working.

    Most people are not looking to do a real estate deal today.

    But eventually, many of them will.

    The idea is not to pressure somebody into moving before they’re ready. It’s to already be there when the time comes.

    You don’t know who, when, or what the situation will be. But if you position yourself correctly over time, opportunities tend to show up.

    At least that’s the idea.

    This probably would have been fairly easy money.

    My license allows me to handle residential leasing. I could have figured out a reasonable rent pretty quickly. Probably could have helped coordinate repairs too.

    But then you start getting into the details.

    Which upgrades actually increase rent versus just costing money? Which repairs matter most? What corners can safely be cut, and which ones become expensive later?

    That’s where specialization starts mattering. And I’m not a residential leasing guy.

    A good leasing agent already knows which improvements tenants say they want versus what they’ll actually pay extra for. They know what tends to lease quickly, what creates problems later, and which contractors consistently do solid work.

    I don’t know those things the way they do.

    And that matters.

    If I had taken the listing, I’d estimate there was probably a 90% chance everything goes smoothly and nobody ever notices the difference.

    But what about the other 10%?

    When something unusual happens, experience starts compounding very quickly. The person who has already seen that exact situation three times operates differently than the person figuring it out in real time.

    So I passed on it.

    I appreciated the opportunity. I offered to help them find somebody who focuses on residential leasing instead, and we’ll see what happens.

    I think that was the right decision.

    And not just for them, for me too.

    I’ve said before that everybody has the same amount of time. Every hour spent doing something outside your core competency is an hour not spent getting sharper at the thing you actually specialize in.

    A lot of people in this business try to be everything at once. Residential. Commercial. Land. Leasing. Investment sales. Farm and ranch. Property management.

    Sometimes they can pull it off.

    There’s usually a reason the best people narrow their focus over time.

    You owe it to yourself to work with somebody who already lives in the world you’re stepping into.

    Not somebody hoping they can figure it out as they go.



    PPS – If you’re not ready for a Land Reality Check but enjoy reading about land, negotiation, and how markets actually work, you can sign up for the blog below and get future posts in your inbox.

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  • You Mean I Get All This For Free?

    You Mean I Get All This For Free?

    Most people are skeptical of anything advertised as “free.”

    And we all know why. Usually “free” means one of three things:

    Either the information is so shallow it’s basically useless…

    Or it’s really just bait to get you on the phone…

    Or it’s the beginning of a process designed to slowly wear you down until saying yes feels easier than saying no.

    That’s why a lot of landowners hesitate to even ask questions about value. Because they assume there’s going to be a catch.

    With a lot of people, there is.

    A lot of “free property evaluations” are little more than a quick guess, a couple nearby sales pulled from MLS, and a setup for a listing presentation.

    If I’m going to put my name on something, I want it to actually be useful.

    Even if the person requesting it never lists property with me.

    So when somebody requests one, I generally try to approach it the same way I would if I were preparing to seriously advise somebody on bringing the property to market.

    That usually means looking at comparable sales, competing inventory, utility availability, development patterns, access, floodplain, topography, buyer profile, and all the little things that quietly affect value but rarely get discussed.

    And those things can be different for every property.

    Sometimes the conclusion is positive, sometimes not. But either way, I try to explain why.

    Here’s some reaction from people who have had a Reality Check done:

    I’m not claiming the reports are perfect.

    And they’re not appraisals.

    Even if you’re not planning to sell today, it’s still valuable to understand what you own, what affects value, and how the market is likely to respond if circumstances ever change.

    Because circumstances do change.

    Sometimes slowly.
    Sometimes all at once.



    PPS – If you’re not ready for a Land Reality Check but enjoy reading about land, markets, negotiation, and how this business actually works, you can sign up below and get these posts in your inbox.

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  • Anyone Can Promise “No Pressure”

    Anyone Can Promise “No Pressure”

    Every real estate agent says there’s “no pressure.”

    Every car salesman says it too.

    Which is probably why most people don’t believe it.

    The reality is a lot of people avoid even asking questions about property values because they know what often comes next.

    The follow-up calls.
    The texts.
    The emails.
    The “just checking in.”
    The slow transition from “free information” into feeling like you accidentally entered a sales funnel you can’t get out of.

    So people avoid the process altogether.

    Even when they know that having a handle on what they own and what it’s worth is in their interests.

    Honestly, I understand that completely.

    My industry has absolutely earned that skepticism.

    That’s part of why I structured the MBR Land Reality Check differently.

    Not because I’m morally superior to everybody else.
    And not because I somehow don’t want listings.

    But I also understand something important:

    They just know information is good to have.

    Sometimes they inherited property.
    Sometimes they’re thinking ahead.
    Sometimes they’re dealing with probate, partnerships, taxes, changing plans, or just plain curiosity about what something might realistically bring today.

    A lot of them simply want a clearer picture without feeling like they’re about to get dragged into a process they didn’t ask for.

    And apparently that difference stands out more than I realized.

    Recently I started asking people what surprised them most after receiving a Land Reality Check.

    Here are a few of the responses regarding how much pressure they felt:

    Honestly, that may say more than anything I could write myself.

    You don’t have to sell. You don’t have to decide anything.

    But it’s just smart business to allow yourself to get a qualified opinion.

    Because things change. Sometimes slowly, sometimes fast.



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  • You Can’t Sell Something That Is Free

    You Can’t Sell Something That Is Free

    Continuing with the pattern of God giving first, it just keeps showing up.

    God gives, and we keep screwing it up.

    A man named Naaman comes to Elisha because he has leprosy. Naaman is important, wealthy, and powerful, but none of that can fix what’s wrong with him.

    Aside from that, he’s the commander of an enemy army. An enemy of Israel.

    That doesn’t prevent God from healing him. He doesn’t even require him to switch sides first.

    That part is probably worth remembering whenever we start thinking we need to clean ourselves up before going to God. If He’s willing to heal Naaman, He’s willing to heal us.

    Anyway.

    Elisha tells him what to do, Naaman is healed, and naturally he tries to give Elisha gifts afterward.

    Elisha refuses them because the healing wasn’t for sale. It was a gift from God, given long before Naaman could think about earning it.

    Then enters Gehazi.

    Gehazi is Elisha’s servant, and apparently the whole thing bothers him. Naaman leaves healed, wealthy, and still in possession of all his money and gifts.

    Gehazi can’t leave it alone.

    So he runs after him and lies. Says Elisha changed his mind and now wants payment after all.

    It almost feels modern. God gives freely, and somebody immediately starts trying to figure out how to monetize it.

    You can see it on TV every Sunday.

    “Plant your seed!” “Give first and God will multiply it back!” “Send your offering here!”

    Curiously, the address is usually their own.

    But it’s not just televangelists. It’s all of us.

    We do it ourselves with churches. With ministry. With generosity. With reputation. With morality itself. We constantly try to turn grace into transaction.

    We want a formula. A leverage point. A way to put God in debt to us.

    He gives first, and keeps giving despite how persistently we misuse what we’re given.

    As for Gehazi, he ends up struck with Naaman’s leprosy and is told it will cling to him and his descendants forever. There’s not much mention of him after that, so we don’t really know how his story ended.

    But considering everything else we’ve looked at, it wouldn’t surprise me if even that wasn’t the end of it.

    Which is fortunate for all of us.

  • Maybe You Don’t Want Their House.

    Maybe You Don’t Want Their House.

    If you’ve been looking in Bridges at Preston Crossing, you already know what’s happening.

    There are new lots coming.

    But most of those are tied up with production builders.

    That works for some buyers.

    Other buyers want more control than that.

    They want to choose the builder.
    Control the design.
    Build on their own timeline.
    Not pick from three floorplans and a design center menu.

    That narrows the field pretty quickly now.

    At that number, it’s probably the best value currently available in the subdivision if your goal is still to build custom.

    Both neighboring lots are already built, so you’re not sitting there wondering what eventually gets dropped beside you.

    That matters more than people think.

    Especially in subdivisions transitioning away from purely custom product.

    This is one of the few remaining spots where you still control the process.

    You either care about that or you don’t.

    If you do, this one deserves another look.

    Photos, aerials, and property details are below.

    MLS #20995494

    If you’d like to walk the lot or discuss the neighborhood, text me at 214.354.3583. Or have your agent reach out.

  • Maybe It’s Time For Another Look

    Maybe It’s Time For Another Look

    H2 Deerwood is back on the market.

    And the math has changed.

    This is the one-acre lot in Waterstone Estates northeast of McKinney. Minimum 3,500 square foot build requirement. Higher-end neighborhood. Custom home product.

    If you’re a builder in Collin County, or an agent working with buyers looking for this type of area, you already understand the appeal.

    At that number, it’s currently the best-priced lot in the subdivision.

    That doesn’t suddenly make it “cheap.” That’s not the point.

    Most serious lot buyers are not reacting emotionally to land right now.

    They’re running numbers.

    Interest rates being what they are, the monthly cost of a custom home is materially higher than it was a few years ago. The less somebody spends on the lot, the lower the overall project cost and the less money they have to borrow.

    Also don’t ignore lot prep costs.

    A heavily treed lot may look beautiful finished, but it can also cost substantial money to clear and prep before construction even starts.

    This lot is flat, open, and straightforward.

    That matters more right now than it did when money was cheap.

    This is also one of those properties where the right buyer probably knows fairly quickly whether it fits or not.

    You either need a build site in this type of area, or you don’t.

    If you do, this one deserves another look.

    Photos, aerials, and property details are below.

    If you’d like to walk the lot, text me at 214.354.3583 and I’ll give you the gate code. Or have your agent reach out.

  • It Happens To Me Too

    It Happens To Me Too

    I write on here often that the reason many people don’t check into their land’s value isn’t because they don’t want to know or don’t think it’s smart business to know.

    It’s everything that tends to go with it.

    You just want to know what’s happening, and next thing you know you feel like you’re in a timeshare presentation. Where you feel like the thing isn’t going to end until you say yes, no matter how many times and ways you say no.

    It just happened to me.

    There are a couple commercial real estate platforms that sell subscriptions with various marketing and data tools. I’ve tried both over the years. For what I do, they usually aren’t worth carrying full-time.

    If I need exposure for a particular property, I can just pay to promote that listing specifically and be done with it.

    What they really want to sell is data.

    Buyer information.
    Seller information.
    Mailing lists.
    Contact databases.

    All of that could theoretically be useful to me.

    So they call me. And call. And call.

    I generally ignore the calls. But sometimes one slips through because I think it might actually be somebody calling about property. Like the other day.

    The guy complimented me on the number of listings I have, started talking about how much local buyer and seller information they had access to, and wanted to meet and show me the platform.

    I told him it was probably going to cost more than I was willing to spend.

    To his credit, he at least admitted pricing was somewhat dynamic instead of pretending there was one magic number for everyone. I eventually got a rough range out of him anyway.

    It was more than I wanted to spend. As expected. I told him I didn’t want to waste his time.

    Didn’t matter.

    He still wanted to meet. He suggested a day that was already blocked out on my calendar. When I told him that, he just pushed it back a week.

    Eventually I just said okay because I was tired of the conversation and figured at least I’d get a free cup of coffee out of it.

    Now I’m probably going to have to say no several more times later.

    And eventually I may have to be rude about it.

    I don’t really blame the guy. I understand why companies sell that way. It must work often enough to keep doing it.

    But it also reminds me why so many people avoid talking to agents, salespeople, and brokers in the first place.

    It’s not that people hate buying things. And it’s usually not even that they hate being sold.

    They hate the feeling that they are no longer fully in control of the conversation.

    There’s a difference between staying in touch and trying to corner somebody.

    If you ask me for a valuation, am I going to follow up lightly from time to time?

    Of course. It only makes sense to.

    But am I going to make you feel trapped in a process you can’t comfortably back out of?

    Never.

    You should always feel like you can say no.

    The minute somebody feels like they can’t comfortably say no anymore, the entire interaction changes.



    PPS – If you’re not ready for a Land Reality Check but enjoy reading about land, markets, negotiation, and how this business actually works, you can sign up below and get these posts in your inbox.

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