The Limits of AI in Real Estate: Why Buyers and Sellers Still Need an Experienced Team

Artificial intelligence is everywhere right now — drafting contracts, answering questions, analyzing data, even “explaining” legal documents in seconds. It’s no surprise that buyers and sellers are starting to wonder:

Do I really need a lawyer or a full real estate team if AI can just tell me the answer?

The short answer: AI can be helpful — but it has real limits. And in real estate, those limits can be expensive.


AI Is a Tool. It Is Not Judgment.

AI excels at pulling together general information:

  • Explaining common contract clauses
  • Summarizing inspection reports
  • Flagging typical timelines or steps in a transaction

What AI cannot reliably do is apply judgment — the kind that comes from handling hundreds (or thousands) of real deals, across different municipalities, personalities, and risk profiles. AI cannot provide legal advice for your specific circumstances, nor can it replace an experienced agent’s input.

Real estate transactions are not plug-and-play. They are deeply contextual:

  • Local custom matters
  • Municipal rules matter
  • The people involved matter

AI does not know when something that looks “standard” is actually a red flag.


Real Estate Is Local — AI Is General

AI pulls from broad datasets. Real estate law and practice are intensely local.

A clause that is routine in one county can be problematic in another. A practice that works fine in one transaction can be disastrous in a slightly different scenario.

An experienced real estate attorney or agent knows:

  • Which issues routinely derail deals in your area
  • Which risks are theoretical versus real
  • When a small change now avoids a major problem later

AI can’t sit across the table from a local lender, municipal official, or opposing counsel and say, “I’ve seen this before — here’s how it actually plays out.”


AI Doesn’t Bear the Risk — You Do

One of the most important differences is this:

AI has no accountability.

If an AI-generated answer turns out to be wrong:

  • You can’t sue it
  • It doesn’t carry malpractice insurance
  • It doesn’t fix the problem

Your real estate team does.

Experienced professionals:

  • Stand behind their advice
  • Carry professional responsibility
  • Are invested in the outcome of your transaction

That accountability matters when you are involved in one of life’s largest personal transaction. six or seven figures are on the line.


Contracts Don’t Fail on the Obvious Issues

Most real estate problems don’t arise from the obvious, headline issues. They come from:

  • Timing misalignments
  • Ambiguous language
  • Unspoken assumptions
  • Unusual property history
  • Personality conflicts that escalate

AI is very good at answering the question you ask.
It is not good at identifying the question you didn’t realize you needed to ask.

That’s where experience shows up.


The Real Risk: False Confidence

Perhaps the biggest danger of relying too heavily on AI is false confidence.

AI answers are often:

  • Polished
  • Confident
  • Definitive-sounding

But real estate law is full of:

  • “It depends”
  • Exceptions
  • Strategic choices, not just correct answers

An experienced real estate team knows when certainty is an illusion — and when slowing down or pushing back is the smartest move.


The Best Use of AI in Real Estate

AI can be valuable when used correctly:

  • As a starting point for questions
  • To help clients understand terminology
  • To organize information

But it works best alongside an experienced real estate team — not instead of one.

Think of AI as a calculator. Helpful? Absolutely.
But you still want an expert who knows what to calculate — and why.


Bottom Line

AI is changing real estate, and that’s not a bad thing. But buying or selling property is still a legal, financial, and emotional transaction where judgment, experience, and accountability matter.

The smartest buyers and sellers don’t choose between AI or professionals.
They use AI with a trusted real estate team who knows how to see what the technology can’t.


Understanding the Real Estate Reassessment Process in New Jersey

              The reassessment of real estate is a crucial process under the New Jersey Constitution, ensuring that property values remain equitable and reflect current market conditions. Specifically, Article VIII, Section 1, Paragraph 1 of the New Jersey Constitution requires that all real property be assessed for taxation “under general laws and by uniform rules” based on true value. This provision ensures that property assessments remain fair and equitable, preventing disparities in taxation.

              While the Constitution mandates uniform assessment, the specific procedures for reassessment and revaluation are governed by state laws and regulations, including oversight by the New Jersey Division of Taxation and county boards of taxation.

              Real estate reassessment in New Jersey is a systematic process conducted by municipal tax assessors to adjust property values to align with the current market conditions. The goal is to ensure that all properties within a jurisdiction are assessed fairly and equitably, thereby distributing the tax burden appropriately among property owners.

              The reassessment process involves:

  • Data Collection: Inspecting properties and reviewing relevant data such as recent sales, property improvements, and neighborhood trends.
  • Market Analysis: Comparing similar properties to determine accurate and fair market values.
  • Adjustment of Property Values: Updating assessments to reflect changes in market conditions, ensuring a fair tax distribution.
  • Notification to Property Owners: Property owners are informed of their new assessments and given an opportunity to review or challenge them.

How Often is Reassessment Done?

              There is no set statewide schedule for reassessment in New Jersey. The frequency of reassessment varies by municipality and is determined by local conditions and the need to maintain tax equity. However, reassessments typically occur when:

              A municipality determines that assessed values no longer reflect true market conditions.

              A significant disparity exists between assessed values and market values.

              There is an order from the county board of taxation or the State Director of Taxation due to unequal property tax distributions.

              While some municipalities conduct reassessments annually, others may only do so every few years, depending on market fluctuations and local government decisions.

Is Reassessment Mandatory?

              Reassessment is not automatically mandatory across all municipalities in New Jersey. However, state law requires municipalities to maintain fair and uniform property assessments. If a municipality fails to do so, it may be compelled to reassess properties by the county board of taxation or the State of New Jersey.

              Additionally, if a municipality’s tax ratio (the ratio of assessed values to true market values) deviates significantly from the state-mandated level, reassessment or revaluation may become necessary to correct the imbalance.

Purpose of Reassessment

              The primary purpose of reassessment is to ensure fairness and uniformity in property taxation. Key objectives include:

  • Equitable Tax Distribution: Ensuring that all property owners pay their fair share of taxes based on accurate property values.
  • Reflecting Market Conditions: Updating property assessments to align with current market values and economic trends.
  • Preventing Tax Disparities: Reducing tax imbalances that may arise due to outdated assessments.
  • Compliance with Legal Standards: Meeting constitutional and statutory requirements for property tax administration.

How Was The Haddon Township Tax Reassessment Scheduled?

              In April 2022, the Camden County Board of Taxation ordered Haddon Township to conduct a district-wide property revaluation to be completed in 2023 and implemented for the 2024 tax year. This order was approved by John Ficara, Acting Director of the Division of Taxation. Subsequently, in May 2022, the Board granted Haddon Township a one-year extension, adjusting the completion to 2024 and implementation to the 2025 tax year. camdencounty.com  The revaluation was completion in 2024, with the new assessments taking effect in the 2025 tax year.

Conclusion

              The real estate reassessment process in New Jersey plays a vital role in maintaining fair property taxation. While not mandated on a fixed schedule, municipalities must conduct reassessments as needed to uphold tax equity. Property owners should stay informed about reassessment practices in their area and understand how changes in property value can impact their tax obligations.

The NAR Settlement – Another Perspective

There is a lot of available information explaining the recent NAR settlement effecting the residential home buying process. Many of the explanations have been offered by brokerages, social media from those in the industry, and state or local realtor estate associations. I found the explanation offered by Tanya Monestier a contract Law Professor from Buffalo, New York, or in other words, someone without “skin in the game,” to be a neutral explanation providing good advice. As with anything these days, there is a lot of information available, as well as misinformation. It’s quite simple actually…you simply need to understand what you are signing and negotiate the best deal that works for you. As always, Bergmann Law is here to help with your real estate questions.