by Christine Cruz | Sep 9, 2024 | Industry, News Feed
Seattle-based brokerage Redfin is taking its commission-based payment model, Redfin Next, nationwide on Oct. 27. Redfin Next enables agents to keep their W-2 status and benefits while earning competitive commission splits.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
After several expansions over the past 11 months, Seattle-based brokerage Redfin is taking its commission-based payment model nationwide. Starting Oct. 27, all Redfin agents will have access to Redfin Next, which enables agents to keep their full-time W-2 status and traditional benefits while getting variable commission splits of 70 to 75 percent based on the average home price in their market.
With Redfin Next, Redfin still covers agents’ business expenses, provides a 401k alongside medical and stock equity benefits, and offers technology, support programs and leads.
Jason Aleem. Image: Redfin
“We’re fully committing to Redfin Next because it has played a significant role in transforming our business and propelling our growth,” Redfin Chief of Real Estate Services Jason Aleem said in a blog Monday morning. “Redfin Next has empowered our agents to amplify their businesses and unlocked the opportunity for them to earn more money, while also inspiring other entrepreneurial agents to join us.”
“Having the best agents in the industry is critical to our mission to make real estate better for consumers, and with Redfin Next, we know we can continue to grow our impact,” he added.
Aleem said Redfin Next has significantly improved the brokerage’s retention and recruitment efforts, with top producers in their biggest markets breaking seven figures in commissions in 2024.
“I have always made a great living at Redfin, but under Redfin Next I’m setting and exceeding goals that I never knew were possible,” Orange County-based Redfin agent Maryam Amiri said in a written statement. “When I talk to other agents, they can’t believe the quality of technology, marketing, and leads I get for free through Redfin on top of the other employee benefits. Redfin understands that when those things are taken care of, I am free to focus on my customers and let my expertise shine. I’ve never been so confident in the future of my business.”
Glenn Kelman
In August, Redfin CEO Glenn Kelman said Redfin Next was an integral part of the brokerage’s growth during the second quarter, with market share reaching 0.77 percent of U.S. existing home sales by units — a 2.66 percent increase from Q2 2023. The brokerage also added 200 agents across the 36 markets where Redfin Next currently exists.
“The capacity that Next has given us to hire more and better agents, with less financial risk, has been why we could become more disciplined about requiring a lead agent to host the first meeting with a home buyer, in the all-you-can-meet program we launched broadly this spring,” Kelman said. “In years past, Redfin asked the contractors we hired for short-notice property access to handle up to 40 percent of our customers’ first tours. Our lead agents make the Redfin case far better than these contractors.”
“We’ve hired more than 200 top producers over the last six months. Over the next nine months, our lead-agent census is likely to keep increasing, but without the capital risk of salaried agents,” he added. “This month, Next will be how we pay agents in markets that accounted for 74 percent of 2023 revenue, up from 17 percent in January and 30 percent in May.”
Kelman and Aleem have said Redfin Next is also an integral part of Redfin’s post-settlement strategy. The company settled Gibson for $9.25 million on May 6.
“In the wake of the NAR settlement, customers are telling us this is more important to them than ever before,” Aleem said in a previous statement to Inman. “We’ve always been focused on giving consumers a better deal, so we’re well equipped to support them.”
“We believe Redfin Next will be transformational for our brokerage, helping us retain our best agents, recruit top talent, and grow market share faster through both the ups and downs in the market,” he added.
The brokerage is hosting a reservation-only webinar about Redfin Next’s nationwide expansion on Sept. 26.
Email Marian McPherson
by Christine Cruz | Sep 6, 2024 | Industry, News Feed
Keeping clients fully informed and helping them to think ahead about the logistics and financial implications of a second-home purchase can create more positive feelings and better outcomes, Jonathan Pressman writes.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
The popularity of second homes popped during the pandemic when millions of Americans sought vacation homes and investment properties. Unfortunately, many of those buyers regretted their purchases, particularly when they went beyond their budgets or rushed their decisions.
Whether you’re helping clients buy a second home or looking for yourself, here are six tips to prevent second-home buyer’s remorse.
Try before you buy
If you want to buy a second home for your own enjoyment, why not take a home in the area on a test run first? With short-term rentals, it’s easy to preview what it might be like to have a second home somewhere without committing to a months-long lease.
If you’re exploring a summer or winter vacation home, try a seasonal lease before you spend hundreds of thousands of dollars or more. This will also give you a chance to spend some more time in a place, familiarize yourself with the neighborhood and decide firsthand if you think it’s worthwhile to buy.
Tour the home in person
You can buy just about anything online, and homes are no exception. With blind offers on the rise, more buyers are willing to put in an offer sight-unseen. And while photos and virtual tours are a great starting point for homebuyers, they don’t paint a complete picture of a property. Regardless of whether it’s your first or second home, seeing the property in person can help prevent buyer’s remorse and unwelcome surprises.
Make sure the math works
A second home can come at a considerable cost, so make sure you run the numbers — including the cost of financing the purchase, property taxes, insurance, maintenance and utilities. For vacation homes, weigh the pros, cons and costs of buying versus renting. In some cases, it may make more sense to rent.
If it’s an investment property, look at comparable leases in the area, calculate the cap rate and do your research to see what the rental demand is like in that market. You’ll also need to consider the cost of property management, or if you’ll be managing it yourself, the time and effort you’ll spend and any additional expenses such as rental management software.
Wait for the right time
It’s easy to get caught up in the excitement of a competitive market. For buyers looking at a second home for vacationing, it can be especially emotional when you start thinking about holiday gatherings, connecting with family and friends, and enjoying other good times with the ones you love.
For investors, a hot market might feel like a wave you don’t want to miss. In either case, it’s important to exercise patience, wait for the right time, and never buy a second home on a whim or because you’re afraid of missing out.
Know what you want to get out of it
Before you buy a second home, make sure you know what you want to get out of it. Is the goal to escape the hustle and bustle of everyday city life or to generate income? Maybe you want to focus on building stronger bonds with family and friends.
However you decide to use your second home, you should know what you want to get out of it to make sure you feel fulfilled and satisfied with your purchase.
Create a plan for how you’ll use it
Once you know what you want to get out of a second home, make a plan for how you’ll use it. If you’re using the home for vacation or to go skiing, when and how often will you go?
If you’re buying a second home because you want to escape the summer heat or head south to warmer climes, think about what you’ll do during the offseason. Second-home ownership doesn’t stop just because you’re not at the home.
Though you might only use it for a few months a year, remember, it’s a year-round commitment. If it’s an investment property, what’s your investment strategy? Will you look for long-term tenants, or will you play the short-term rental game? If so, who will manage the day-to-day operations? The last thing you want to do is have a second home that’s underutilized, which is why making a plan for how you’ll use it before you buy is so crucial.
MSN reported that boomers especially might have regrets about their second home purchases. But with a little preparation and patience, your clients can feel more secure in their second-home purchases and reduce the chances they’ll walk away with buyer’s remorse.
Jonathan Pressman is a Realtor who writes on a wide range of financial topics. Connect with him on LinkedIn and Instagram.
by Christine Cruz | Jul 18, 2024 | Industry, News Feed
At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Who do you become in the face of change?
What do you do when faced with changes in your life and business?
Here’s the truth, many of the real estate entrepreneurs we work with set goals to create a change in their business with a desired outcome. Sometimes, those changes are external to you and the goals you outlined in your business planner for the year.
Voluntary, self-identified goals may relate to team building, creating new expectations and processes, or mapping out a plan to create an increase in your average price point or overall sales volume.
Right now, we’re coming up against big external circumstances and involuntary changes such as market shifts, rising interest rates or, of course, the implementation of operational changes as part of the commission lawsuit settlement, coming up on Aug. 17.
Either type of change pushes us to pivot in the ways we do business and communicate to prospective clients. One thing is certain and clear — change is inevitable.
Not only is it inevitable, but change offers us endless opportunities to do better, be better and have businesses that perform better. However, many people are unwilling to contend with the changes required on their end to reach their goals, such as expanding their skill set and training or creating new boundaries or procedures.
The idea that you can create a macro change in your business or your life without many micro changes along the way isn’t realistic. Those sea change moments that many people seek are built upon a whole host of smaller changes.
To paraphrase mystery novelist Rita Mae Brown, we can’t do the same thing over and over and expect different results. Different results require different ways of thinking, different actions and different strategies. In short, it requires change.
Too often, change makes people uncomfortable, sometimes nervous, many times scared. Change can feel overwhelming, if not a bit daunting. As a result, many of us resist change, and cling to the familiar — even if we’ve outgrown our current circumstances and relationships (or they no longer serve us). We may resist change, even if it’s tied to a larger goal or intention.
In real estate as in life, growth and change are not just inevitable; they are essential for success. Ask the most sustainably successful agents in the business and you’ll find they are constantly evolving, adapting and leveling up in their businesses and personal lives.
In fact, they welcome change knowing change is the pathway forward to new levels of fulfillment, prosperity and purpose. Research supports the fact that adaptability and flexibility to change are key traits in successful (and happy) humans.
Growth and evolution are core ingredients of success and they require us to step out of our comfort zones, confront our fears and embrace the possibilities that change brings. Instead of viewing change with trepidation or resistance, create a new relationship with change, one in which change is recognized as a gateway to realizing your full potential in life and business, to fulfill those big goals.
By reframing your relationships and approach, you can more easily embrace change as a positive force in your life, opening yourself up to new opportunities, experiences and growth. Instead of fearing and resisting change, you can consciously and actively choose to embrace it as a catalyst for transformation, progress and reaching (and even surpassing) your goals.
How can you set yourself up to be more welcoming of growth and change?
Develop a growth mindset
Our beliefs and thought patterns shape our reality and influence our actions. Shifting our mindset to one of growth, abundance, and possibility is crucial for navigating the challenges and seizing the opportunities that come our way in the real estate industry.
A growth mindset is one that is dynamic, flexible and makes the most of challenges by recognizing them as opportunities. It’s a surefire way to create a new relationship with the challenges that change often delivers along the way to success.
Ask yourself
- What beliefs or thought patterns do I need to shift to support my growth and success in real estate?
- Am I willing to view challenges and changes as opportunities for self-improvement, learning and forward momentum?
Check your circle of influence
The people we surround ourselves with have a significant impact on our mindset, behavior, and ultimately, our success. Jim Rohn stated that we’re the average of the five people we spend the most time with.
Surrounding ourselves with supportive individuals who share our values and aspirations is essential for staying motivated, inspired, and focused on our goals.
Ask yourself
- Do the people I share time and space with believe in me and my goals?
- Do I feel supported by them?
- Do they seek growth in their own lives and businesses?
- Do we have shared values and goals?
- Do I feel energized and motivated after being in their company?
- Do I feel stressed or drained after spending time with them?
- What changes do I need to make in my social circle to align with my vision for success?
Check in on your systems, procedures, processes
Systems, procedures and processes are the backbone of a successful real estate business. They provide the necessary structure to operate smoothly and sustainably with consistency and efficiency. While most can agree that this is true, it’s common for many to resist creating reliable and effective systems in the first place. Even more resist changing these systems and cling to outdated methods that may no longer serve them.
Specifically, consider the impact of new commission settlement requirements and the necessity to adapt to these changes. Embrace new methods of working, enhance communication strategies with clients, and invest in relevant training to stay ahead in the industry.
Ask yourself
- Which systems, procedures and processes are currently working well in my business?
- Which ones are outdated or ineffective and need to be updated or replaced?
- Am I resisting changes in my systems and procedures due to the fear of the unknown?
- Am I willing to complete the necessary training and education to evolve and grow?
- How can I implement new ways of working, communicating with clients, and incorporating ongoing training and education to improve my business operations?
Evaluate your habits and routines
Our habits and behaviors cumulatively shape our daily routines and ultimately determine our long-term success. Identifying and cultivating positive habits that align with our goals and values is essential for personal and professional growth in real estate and in life. Often, our habits and behaviors are so taken for granted, we lose sight of all the small details that add up to big results, positively or negatively.
Ask yourself
- What habits or behaviors are holding me back from reaching my full potential?
- What new habits do I need to cultivate to support my personal and professional development?
- Are my habits and behaviors in alignment with and a reflection of a resilient growth mindset?
To make positive changes in the way we think about and react to the world, our mindset, the company we keep and the ways in which we move through the world in the day-to-day requires us to tap into our awareness and identify the areas where change is needed. To do so requires honest self-reflection and a willingness to step outside of our comfort zones.
Whether it’s shifting our mindset, surrounding ourselves with supportive individuals, creating a conducive environment for growth or adopting new habits, every change we make reflects a willingness to create change, embrace change and not be afraid of change.
This new relationship with the change required by our goals brings us closer to the vision of success we seek to create and experience.
As real estate professionals, your journey toward personal and professional fulfillment is paved with opportunities for growth and change.
Ask yourself
- How will you meet those changes?
- In what ways do you imagine your life and business flourishing as a result of creating a new relationship with change?
- Does the idea of embracing change and exploring new possibilities energize you?
By approaching change with positivity, asking yourself the right questions and taking intentional action, you can create a life and career that brings you joy, fulfillment, and a sense of purpose and prosperity. This is true success.
Melanie C. Klein, M.A. and Emily Bossert are highly sought-after coaches known for empowering individuals and teams to achieve their full potential and success.
