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Realogics Sotheby’s International Realty (RSIR), led by President and CEO Dean Jones, has inked an exclusive agreement with proptech startup Realtie that will enable the firm to identify potential redevelopment locations across major cities in Washington state, the firm announced Wednesday.
Dean Jones | Realogics Sotheby’s International Realty
Realtie is an artificial intelligence-powered analytical software that can scan areas for potential listings and predict what sellers might enter the market soon, and similarly target potential sellers with property offers and turnkey solutions so that they can sell to local builders and be connected with relocation services. The company was cofounded by Tadashi Shiga, who is also executive director of the Land Division for RSIR, and software entrepreneur and Real Wave founder Ofer Avnery.
“It’s far more than a tool,” Jones told Inman. “It’s an entire ecosystem that is going to elevate our housing stock from the mind up.”
The platform also features a virtual architect that can test-fit a development plan on a lot that either has an existing structure or not, and consider a variety of factors that play into the design in seconds, a press release said. Developer clients can then purchase the property with a vision for its future by buying from the seller, partnering with the landowner or setting up another deal structure.
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Realtie’s development comes at just the right time, as Washington House Bill 1110 was passed in 2023 and municipalities will need to comply with the new law by July 1, 2025. The new law will aim to increase the “missing middle housing” (medium-density, diverse housing stock) in the state by allowing more housing types in the state’s cities with populations of 75,000 or more and fewer limits on how they are regulated. Lots traditionally relegated to single-family housing will now be upzoned to allow options like townhouses, fourplexes, courtyard apartments and more.
A screenshot of the platform’s analysis of a parcel in Redmond, Washington | Courtesy of Realtie
“We are elated to partner with Realtie on this first-to-market solution, which will be implemented immediately upon municipal governments publishing their response to the HB1110 mandate,” Jones said in a statement. “Our platform provides a win-win-win scenario for the existing owners of land, for the ecosystem of partners within the redevelopment process, and ultimately for the consumer seeking attainable housing options.”
Tadashi Shiga | Realogics Sotheby’s International Realty
Although the state passed down this mandate, each of roughly 30 municipalities encompassed within the scope of the new law is responsible for adopting its own regulations and methods for putting the law into effect by that July 1 deadline. As municipalities update their individual regulations, the team behind Realtie is also updating the software in real time so that it can make predictions based on the specific municipality.
“All the stars right now are aligning,” Shiga said. “The stars are, first of all, the upzoning that is happening. And then we have all the incredible market-makers in our industry, which is Dean Jones and Realogics, Ofer [Avnery] and his incredible technology, all the brokers and developers who we have assembled throughout the year to create this whole ecosystem that is only happening right now.”
The response from developers has been very positive so far, the team told Inman.
“When they saw what we’ve created, what Ofer has been working on for the last eight years, they were all … ‘Oh my god, everything else looks prehistoric. We want it. And it can help us in the short-term and long-term,’” Shiga said.
Because the software relies on such hyper-local data to operate, it is currently only available in Washington state. Jones said that it’s possible that it could eventually spread to other applicable franchises within the Sotheby’s International Realty network that have new development teams who could benefit from the software, and the Realtie team has expressed a willingness to work with municipalities in other states undergoing zoning reform.
Ofer Avnery | Realtie LLC
“We believe the Sotheby’s International Realty network and its local leadership are the best partner to scale with us — they have the infrastructure for training and supporting the program, while their agents are among the most trusted and productive in the industry,” Avnery said in a statement.
“We could be simultaneously deploying Realtie in Atlanta through Atlanta Fine Homes Sotheby’s International Realty and in Arizona through Russ Lyon Sotheby’s International Realty. Our team is also available to consult municipalities in any state that might be considering the propensity to flip the switch on progressive zoning legislation.”
Jones has a background in development, and so is perhaps uniquely positioned to host Realtie’s rollout at RSIR. He and Shiga are hosting a series of broker training courses at RSIR as HB1110 is rolled out.
Realtie’s virtual architect tool | Courtesy of Realtie
As far as how the state’s zoning changes stand to impact the market, Jones said he thinks the new law has the potential to get sellers off the sidelines and spur municipalities to create better zoning regulations in order to attract more developers away from other cities.
“The upzone adds value to many single-family lots, in many cases where the land potential is now greater than the traditional house and lot value,” Jones said in an email. “This compels a property owner to consider selling and respond to a ‘make me move’ offer from a Realtie/RSIR broker.”
“I also think municipalities will face a modern day ‘space race’ to attract development to their city by offering quicker permits, lower fees, better zoning and ‘one up’ the competition,” Jones continued. “There will be winners and losers in this race but it’s too early to tell. Cities can also ‘double down’ and improve their zoning if they feel like they are slipping in the developer’s eyes. They also have to balance voter sentiment.”
Avnery said that the zoning changes would certainly “reshuffle the real estate industry,” creating an advantage for those who can adapt quickly. Shiga added that the new law will help “unlock hidden potential” in neighborhoods that had previously been hemmed in by single-family zoning.
“For agents, it’s not just a zoning change; it’s a generational opportunity,” Shiga said in an email. “This law empowers brokers to become true advisors, guiding homeowners, developers and investors through a new lens of value creation. The most forward-thinking agents will leverage AI tools, like those we’re building at Realtie, to uncover opportunities others overlook — identifying parcels primed for infill, helping homeowners partner with developers, and forecasting neighborhood shifts before they hit the market.”
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Email Lillian Dickerson
