Home Staging Mistakes to Avoid in Austin

Home Staging Mistakes to Avoid in Austin

by | Aug 29, 2025 | News Feed

Home Staging Mistakes to Avoid in Austin

In Austin’s fast-moving housing market, buyers often decide how they feel about a home within the first few minutes—sometimes before they even step inside. With so much competition across Central Austin bungalows, South Austin ranch homes, and newer builds in areas like Circle C, Mueller, and beyond, smart Austin home staging can be the difference between strong early offers and a listing that lingers.

The good news: you don’t need a full redesign to create an “I want to live here” feeling. The challenge is that even small home staging mistakes can distract buyers, weaken photos, and reduce perceived value. Below are the most common staging mistakes we see when staging a home in Austin—plus practical home staging tips Austin sellers can use to sell your Austin home faster.

Why staging matters in the Austin market

Austin buyers tend to be visual and research-driven. They compare listings online, track price reductions, and notice when a home “feels” dated or high-maintenance. Staging helps your home:

  • Photograph better for online search results (where most showings begin)
  • Show more spacious in person—especially important in older Central Austin floor plans
  • Feel move-in ready, which can reduce objections during negotiations
  • Stand out seasonally—for example, keeping a home bright and cool during hot summer months, or cozy (not cluttered) during the holiday season

With more normal seasonal patterns returning in many Texas markets—busy spring and early summer, calmer late summer, and an uptick after the holidays—staging supports your price by helping buyers connect emotionally, regardless of the time of year.

Home staging do’s and don’ts for Austin sellers (quick guide)

Do

  • Prioritize curb appeal and the entry experience
  • Declutter like you’re moving (because you are)
  • Use light, neutral color palettes that complement Austin’s natural light
  • Highlight indoor-outdoor living spaces (patios, decks, yards)
  • Make small repairs before showings start

Don’t

  • Over-personalize with loud decor or theme rooms
  • Overfill rooms with oversized furniture
  • Ignore odors (pets, smoke, cooking, mildew)
  • Hide issues with temporary cover-ups that will show up in inspection
  • Assume buyers will “look past” messy closets or garages

Now let’s get specific about the staging pitfalls that most often cost Austin sellers time and leverage.

1) Ignoring curb appeal in a city where drive-bys still matter

Austin buyers frequently do a drive-by before booking a showing—especially for homes priced above neighborhood averages or homes with fewer listing photos. If the outside looks neglected, buyers assume the inside needs work too.

Common curb appeal staging mistakes

  • Dead patches in the lawn or overgrown landscaping blocking windows
  • Peeling paint on trim, fencing, or the front door
  • Cluttered porch (shoes, toys, packages, recycling bins)
  • Dirty walkways, stained driveways, or cobwebbed entry lights

Staging tips for Austin homeowners

  • Power wash the front walk and driveway (especially after pollen season)
  • Refresh mulch and trim shrubs so windows look larger
  • Swap in a new doormat and a simple potted plant for a clean, welcoming look
  • Touch up paint on the front door—classic colors photograph well and signal “maintained”

This is one of the easiest ways to strengthen the first impression and support your price from day one.

2) Leaving rooms overcrowded (Austin buyers notice flow)

Many Austin homes—especially older neighborhoods—have charming layouts but smaller rooms. Overfilling those rooms with furniture makes them feel tight, even when the square footage is reasonable.

Common staging mistakes

  • Sectionals that swallow the living room
  • Extra chairs, side tables, and bookcases that narrow walkways
  • Large dining sets in a space that functions better as an eat-in kitchen + small table

What to do instead

  • Remove 30–50% of furniture to open walk paths
  • Float furniture slightly away from walls only if the room is large enough to support it
  • Use appropriately scaled pieces to show the room’s purpose (not everything needs to be “fully furnished”)

When preparing a home for sale in Austin, think like a buyer: “Can I imagine my furniture here?” If the answer is no, scale back.

3) Over-personalizing (buyers want to picture themselves, not you)

Austin is full of personality—and your home can still feel warm without feeling like a museum of personal history. The goal isn’t to erase character; it’s to reduce distractions so buyers focus on the space.

Common staging mistakes

  • Walls packed with family photos, diplomas, and kids’ artwork
  • Bold paint colors in multiple rooms (especially saturated reds, deep purples, bright oranges)
  • Highly themed decor (sports bars, tiki rooms, heavy farmhouse in a modern home)

Austin-friendly staging approach

  • Keep one or two tasteful “personality moments” (local art, a few curated books, a plant) and remove the rest
  • Stick to light neutrals that work with Austin’s sun and make rooms feel airy
  • If repainting, choose a consistent palette throughout the house for a calmer, more updated feel

These home staging do’s and don’ts are especially important for online photos, where bold choices can dominate the frame.

4) Bad lighting (a top reason listings look dull online)

Lighting is one of the most overlooked home staging mistakes. In Austin, natural light can be a major selling point—unless it’s blocked by heavy curtains, dirty windows, or dark wall colors.

Common lighting issues

  • Burnt-out bulbs or mismatched color temperatures (some yellow, some bright white)
  • Closed blinds during showings
  • Small lamps missing in rooms with limited overhead light

Home staging tips Austin sellers can use immediately

  • Use consistent bulbs in the 2700K–3000K range for a warm, inviting tone
  • Open blinds and clean windows (yes, it matters in photos)
  • Add a floor lamp in dim corners to balance the room
  • Replace dated fixtures when cost-effective—especially in dining areas and entryways

Good lighting makes spaces feel cleaner, larger, and more current—three things Austin buyers tend to reward.

5) Forgetting the “Texas heat” reality: comfort cues matter

When staging a home in Austin, comfort isn’t just about aesthetics. Summer showings are common, and buyers pay attention to how the home handles heat.

Common staging mistakes

  • Setting the thermostat too high during showings
  • Musty odors from closed-up rooms, especially after storms or high humidity days
  • Hot, stagnant air in upstairs rooms or bonus spaces

Green flags buyers notice

  • A comfortably cool interior during peak heat (without feeling like a freezer)
  • Ceiling fans working and set correctly
  • Clean air filters and a fresh, neutral scent (avoid heavy plug-ins)

These are simple Austin real estate tips that build confidence. Buyers may not say it out loud, but comfort influences how long they linger—and how favorably they remember the home.

6) Skipping minor repairs (staging can’t cover maintenance)

Staging helps a home look its best, but it can’t overcome obvious deferred maintenance. In fact, great staging can backfire if buyers feel the home is “pretty but hiding something.”

Common staging mistakes that raise red flags

  • Loose doorknobs, sticking doors, and missing switch plates
  • Leaky faucets, running toilets, and cracked caulk in tubs
  • Damaged baseboards, chipped trim, or patched drywall that was never painted

Step-by-step: a simple pre-listing fix plan

  • Step 1: Walk the home like a buyer and write down every “small annoyance.”
  • Step 2: Tackle quick fixes first (hardware, caulk, touch-up paint, bulbs).
  • Step 3: Address anything that could show up on an inspection report (plumbing leaks, GFCI issues, visible water staining).
  • Step 4: Keep receipts and notes—helpful during negotiations.

When preparing a home for sale in Austin, repairs are part of staging because they protect the impression of “well cared for.”

7) Neglecting kitchens and bathrooms (Austin buyers scrutinize these)

Even in a strong market, kitchens and bathrooms carry outsized influence. Buyers often use them to justify price—or to negotiate.

Common staging mistakes in kitchens

  • Counters crowded with small appliances, knife blocks, and paperwork
  • Grease residue on vent hoods or visible grime in grout lines
  • Pantries packed so tightly they look too small

Common staging mistakes in bathrooms

  • Personal toiletries everywhere (especially in shower niches and on vanities)
  • Old towels, mismatched bath mats, and worn shower curtains
  • Slow drains or mildew smells

What works well

  • Clear counters to a few intentional items (soap dispenser, one small plant, neatly folded towels)
  • Deep clean grout and recaulk where needed
  • Use matching, neutral textiles to create a “hotel clean” look

These upgrades are cost-effective and photograph beautifully—key to sell your Austin home faster.

8) Making closets, garages, and laundry rooms an afterthought

Austin buyers often prioritize storage, especially households relocating from apartments or smaller rentals. If storage areas are jammed, buyers assume the home lacks space.

Common staging mistakes

  • Closets stuffed to the top (it reads as “not enough storage”)
  • Garages full of bins, tools, and random overflow that blocks the walls
  • Laundry rooms that feel like utility closets, not functional spaces

Staging tips for Austin homeowners

  • Aim for closets no more than two-thirds full; use matching hangers for a cleaner look
  • Group garage items into tidy zones (yard, tools, sports) and sweep the floor
  • Add a simple shelf and a neutral basket in the laundry area to suggest organization

Storage staging is one of the most underrated home staging tips Austin sellers can apply without spending much.

9) Going too trendy (and dating the home in photos)

Trends move fast, and Austin is no exception. The risk with overly trendy staging is that it can look dated within a year—or turn off buyers whose style is different.

Common staging mistakes

  • Too many statement wallpapers or bold accent walls
  • Overdoing a single trend (all black hardware, overly rustic decor, ultra-minimal rooms that feel sterile)
  • Buying inexpensive “staging decor” that looks cheap up close

A better approach

  • Keep the base neutral and add subtle, classic accents (pillows, art, greenery)
  • Let the home’s architecture lead (mid-century, craftsman, modern) rather than forcing a trend
  • Choose quality over quantity for decor pieces buyers will see up close

This is one of those Austin real estate tips that protects your listing from polarizing reactions.

10) Not staging for how Austin buyers actually live (indoor-outdoor, flexible space)

Austin lifestyles often include patios, decks, pools, and flexible rooms for remote work. If these spaces aren’t clearly defined, buyers may undervalue them.

Common staging mistakes

  • Empty patios that look unused, even if they’re a major feature
  • Home offices doubling as storage rooms during showings
  • Bonus rooms staged in a confusing way (half gym, half clutter)

Staging tips for Austin homeowners

  • Create a simple outdoor moment: a small table and chairs, or two seats and a side table
  • Stage one clear work-from-home area, even if it’s a small nook
  • Give each flexible room one primary purpose so buyers understand value quickly

When staging a home in Austin, showing how spaces function can be just as important as making them look pretty.

How to stage your Austin home step-by-step (a practical checklist)

If you’re feeling overwhelmed, here’s a simple staging process that works for many sellers.

  • Step 1: Start with a “photo audit.” Take pictures of every room. You’ll spot clutter and awkward furniture placement more easily in photos.
  • Step 2: Declutter and depersonalize. Pack personal items early, reduce countertop items, and clear floor space.
  • Step 3: Deep clean like a showing is tomorrow. Focus on kitchens, bathrooms, floors, baseboards, and windows.
  • Step 4: Handle visible repairs. Fix drips, squeaks, scuffs, and anything that signals neglect.
  • Step 5: Optimize lighting and scent. Consistent bulbs, open blinds, fresh air, and neutral odors.
  • Step 6: Stage key “money rooms.” Entry, living room, kitchen, primary bedroom, and primary bath first.
  • Step 7: Finish with curb appeal and outdoor spaces. Buyers remember the first and last impression.

This approach reduces home staging mistakes by focusing on what buyers notice most—online and in person.

When to DIY vs. hire help (pros and cons)

DIY staging

  • Pros: Lower cost, faster decisions, you control the look.
  • Cons: Easy to miss blind spots; furniture scale and photo readiness can be tricky.

Professional staging consultation or full staging

  • Pros: Stronger layout choices, better photo presentation, fewer common staging mistakes, often helps justify price.
  • Cons: Added cost; scheduling; may require moving out some items.

For many sellers, a middle-ground works well: a professional consultation plus selective updates. In a competitive segment, that can be a smart investment to sell your Austin home faster.

Final thoughts: Austin home staging is about clarity, not perfection

The best Austin home staging doesn’t try to impress buyers with expensive decor—it removes doubts. By avoiding these home staging mistakes, you help buyers see the home’s layout, light, storage, and lifestyle potential. Use these staging tips for Austin homeowners as a roadmap, and you’ll be in a stronger position for showings, feedback, and negotiations.

Stop the spam: 5 recruiting tactics that need to end

by | Apr 29, 2025 | Industry, News Feed

Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!

Recruiting pressure is at an all-time high, as shown in the latest Inman Intel Index, and how you handle it says everything about your company. When your first touchpoint is lazy, impersonal or misleading, agents don’t chalk it up to a bad day. They assume that’s your culture and your leadership and what working with you would feel like.

TAKE THE INMAN INTEL SURVEY FOR APRIL

Here are five tactics that need to go and what to replace them with.

1. Mass emailing and blind outreach

Agents know when they’re part of a list, and they talk.

Years ago, I received a recruiting email from a brokerage leader praising my “recent production” and “impressive sales.” The only problem? I hadn’t sold anything that year as I was a non-selling managing broker. They were clearly blasting a roster without doing their homework. It reminded me of the third-party award programs I still get invited to … despite still having no production.

In talking with Sean Soderstrom, co-founder and CEO of Courted.io, he put it plainly: “Just like you’d never walk into a listing presentation without knowing the comps, you shouldn’t reach out to an agent without doing your homework. The difference now is that modern tech can do that homework for you instantly.”

He’s right. Research shows that personalized communication significantly increases response rates and improves the perception of your organization. A recent McKinsey research study shows that 76 percent of people are frustrated by impersonal interactions. If you’re still mass-blasting and calling it a strategy, you’re sending the wrong message and alienating your audience.

What to do instead: Take the time to research, or use smart tools like Courted, to personalize your outreach. The time and effort will be validated in the responses and results. Lead with relevance, not desperation.

2. Copy-and-paste messaging (via text, social and anywhere else)

Yes, it’s easier. It’s also the way to be dismissed, or worse.

A brokerage executive once sent the same generic message to thousands of agents. Another firm turned it into a contest: If you received the message and sent a screenshot, your office got a raffle entry to win a happy hour.

What was meant to be outreach became a punchline. The happy hour contest sounds cutthroat, but it was effective in erasing any sense of exclusivity, and it devalued the message entirely.

“Agents are savvy,” Soderstrom said. “They’ve seen it all before. If you can copy and paste it, it’s probably not worth sending.”

What to do instead: Mention a standout transaction they handled. Reference feedback from one of your agents who enjoyed working with them. Point to a marketing campaign or listing that caught your attention. The best outreach feels like it was written for one person, the person you’re messaging.

3. ‘Let’s grab coffee. No recruiting; I promise’

This one has to go.

A top-producing agent recently told me she agreed to a “casual, no-pressure coffee,” the first meeting she’d taken in years. Within five minutes, the broker launched into a full-on filibuster about tools, culture and their entire brokerage offering. She left the meeting and said she had no interest in working with that brokerage, now or in the future.

There’s a trust gap in recruiting, and tactics like this bait-and-switch widen it.

What to do instead: Be upfront. Say, “I’d love to talk about the possibility of working together. Here’s why I think it could be a good fit.” Honesty like that is rare enough to stand out.

4. ‘We’re like a family’ (and other clichés)

Agents aren’t looking for a new family. They’re looking for a place to grow their business and professional sphere.

I’ve lost count of how many brokers and recruiters still lead with “We’re like a family.” In most industries, that phrase has become a meme, usually signaling blurred boundaries, unrealistic expectations or a lack of professionalism. It doesn’t resonate, and it doesn’t work.

The Inman Intel Index backs this up: Nearly a third of agents responding ranked cultural fit as their top priority, but not in a vague or sentimental way. They want mentorship, strong leadership and a collaborative environment that pushes them forward.

What to do instead: Highlight real stories and case studies of mentorship, collaboration and growth. If your culture is what you say it is, agents will feel it without you needing to lure them with your “family.”

5. Overpromising support, tools and resources

This may be the most damaging tactic of all, especially when word gets out.

I’ve spoken with agents who were interested in and joined a brokerage based on promises of robust support, marketing tools and coaching, starting with their first interaction.

One told me she was promised full marketing support with a shared designer and marketing coordinator. When she reached out to utilize that support, multiple staff members ghosted her. She left after four weeks, and her entire peer group heard about it.

Soderstrom was direct, “Saying you offer ‘the best tools’ means nothing if you can’t show how those tools actually grow an agent’s business. Results speak for themselves — especially when your agents can share their own success stories.”

What to do instead: Use data. Share case studies. Show how your value proposition solves the problem that the agent is experiencing without inflating. Enlist your top agents and brand advocates to speak directly to recruits, sharing your company’s value proposition as they live it. Peer proof beats your polished pitch, every time.

It’s not a numbers game

Recruiting isn’t about sending more messages, duping someone into meeting you or exaggerating your offering. It’s about sending the right message in the right way.

Agents are looking for leadership, systems and culture that align with and support their goals. Your message and the delivery set the tone. It either builds trust or breaks it. A miss now may result in a lost opportunity for years to come.

When recruiting is your biggest challenge, refining your approach, investing in the right tools and committing to personalization can turn it into a strength. Don’t just reach out. Reach out in a way that reflects who you are and why you’re worth joining.

Kevin Van Eck is the EVP of innovation and education at @properties in Chicago, Illinois. Connect with him on Instagram or Facebook.

This post was originally published on this site

The Realistic, Repeatable Path to Investing for FIRE in Your 20s

by | Sep 27, 2024 | Investing, News Feed

Young, old, or in between, you need to hear this episode! Today’s guest paid off over $80,000 of debt, grew her net worth to $100,000 and did it all just years after graduating from college without a sky-high income. How did she make such quick progress, and what’s her secret to skyrocketing her net worth early in her career? She’s sharing it all in this episode, and you (no matter your age) can follow her repeatable path, too!

Want to see your net worth leap so you can fast-track your road to FIRE? Anna Foley is the person you should listen to. Through common-sense smart spending, diligent investing, and salary-increasing career pivots, Anna and her partner went from $80,000 debt to debt-free and finally hit six-figure net worth status. The best part? They did all of it WITHOUT giving up what makes life enjoyable, and they still sport a phenomenal savings rate!

Anna is sharing how she saves a significant portion of her income every month, why she decided to rent (not buy) a house, how “paying yourself first” can get you debt-free before you know it, and why she does NOT follow the traditional advice of chasing a “FIRE number.” In your twenties? Copy Anna’s plan! Closer to retirement? Follow Anna’s smart saving and investing tactics, and you can get there faster!

Click here to listen on Apple Podcasts.

Listen to the Podcast Here

Read the Transcript Here

Mindy:
At just 27 years old, my guest has already built a net worth of over $100,000 and is well on her way to financial independence. But what does it take to grow your wealth at such a young age? How do you stay disciplined, save aggressively, and still enjoy life in your twenties? Today we are diving deep into her mindset, strategy, and the steps she’s taking to achieve financial independence, whether you’re starting out or well on your way, this episode is great for what and all. Hello, hello, hello and welcome to the BiggerPockets Money podcast. My name is Mindy Jensen and Scott Trench is play and hooky today. So you just have me. I am here to remind you that BiggerPockets has a goal of creating 1 million millionaires. You are in the right place if you want to get your financial house in order because I truly believe financial freedom is attainable for everyone no matter when or where you are. Starting today, we’re going to discuss ways to invest early with a salary below six figures, how to pay down $80,000 of student loans and answer the question should you have a fine number. Anna, thank you so much for joining me today. I’m so excited to talk to you.

Anna:
Yeah, thanks for having me.

Mindy:
How long have you been investing?

Anna:
So I started investing when I graduated college back in 2021. I just started out with my 401k. That’s how most people start out. I didn’t really know exactly what I was doing. Luckily my older brother helped me out a bunch. He taught me all about investing and personal finance and what I should be doing. So he eventually told me I should open up a Roth IRA. So then I also got into that. So it’s been about three or four years.

Mindy:
So he said, you should invest in a Roth. What did he specifically teach you about investing in personal finance?

Anna:
So he kept it pretty simple. He said that index funds are the way to go, right? That’s not new news. That’s what all the finance people will tell you to do. So he said, just automate your investments, set it into a retirement account or a taxable brokerage and just let it go.

Mindy:
Okay, so you’re right. This isn’t new. This isn’t sexy. This isn’t groundbreaking information, but it is absolutely the simple path to wealth. Oh, see what I did write there. Have you read that book?

Anna:
I have. That’s a good one.

Mindy:
What made you start investing right when you graduated college?

Anna:
I think a lot of it was my older brother. I didn’t really know much about investing at all. I mean, growing up we never talked about money. We didn’t talk about investing. So I really leaned on him to give me advice and help me out. And it was kind of like you hear about 4 0 1 Ks and you don’t really know what they are until all of a sudden you’re graduated and now it’s like, oh shoot. What actually is a 401k? How does it work? So I asked him all of those questions. He taught me the importance of it, getting your employer matched, just starting out that muscle of investing at a young age and get the habit of doing it and carry that through your twenties, thirties, forties.

Mindy:
Anna, do you invest anything in real estate?

Anna:
I do not currently invest in real estate. I don’t even own a primary residence either. We are currently renting.

Mindy:
Okay. And why are you currently renting?

Anna:
So we started renting right out of college. My husband and I graduated about a year apart, and we just rented an apartment while I was finishing up my grad school year. And then once I graduated, we moved to a house and just started renting that and we were kind of deciding where do we want to end up? We’re currently on the east side of Michigan near Detroit, but our family’s from the west side of Michigan. So we’re in limbo between jobs and things of like where should we end up? What should we do? We didn’t really have a good answer and didn’t know what we wanted to do. We decided renting was the best option. It was also around 2020 when prices were starting to climb and then they just kept climbing. Real estate was really expensive and we didn’t have any cash to buy a home or to put a down payment down.

Anna:
So at first it sounded like buying would be really nice, right? In 2019, home prices were pretty low. You could put a small amount down and your mortgage could be reasonable, right? You could pay 1200, 1500 for a mortgage in the Detroit area. Of course, not in all places of the country, but we’re pretty lucky to be in the Midwest. So then as prices got more and more expensive, we were like, okay, we can buy a home now, but if we buy a home, the mortgage is probably going to be closer to 2,500. So we decided to stick with our current situation. We’re renting a three bed, two bath for $1,800 a month in the Detroit area versus buying a home Now that’s equal or more house, and our housing costs would go up $700 a month or more. So right now it doesn’t make a whole lot of sense for us to buy. We still don’t know where we want to be. Long-term for sure. So that’s the biggest thing. I think real estate is great if you’re going to live in it for a long time and you’re not planning to just hop around and sell it or if you’re planning to keep it as an investment property or use it as an income generation. But if you’re just going to talk about primary homes, I don’t think that buying is always the right move for every person.

Mindy:
And that’s because you’re right, buying is not always the right move for every person. Ramit Satis says it best. He says, when you own a home, your mortgage is the least, you’ll pay monthly. But when you rent, your rent payment is the most you’ll pay monthly. If something breaks, your landlord fixes it. And what you’re saying to me says that you’ve thought this through. I think there’s a lot of people who buy a house because it’s the American dream, and that’s what you do. You graduate from college and then you buy a house you don’t have to buy. And I say that as a lover of real estate. I’m a real estate investor, I’m a real estate agent. I work at BiggerPockets. I mean, estate is my jam, but it’s not for everybody. And also if everybody owned, then there would be no tenants. So it’s perfectly fine for you to be a renter. I just wanted to get that out there. I like the way that you’re thinking about it and the fact that you are thinking about it.

Anna:
Yeah. I like what you said about how people just think that they should be buying, and that’s my favorite thing now, is to ask people why they want to buy a home and if they have a good reason. Sure. There’s lots of reasons to buy a home, right? You want to grow roots, you want to start a family. All that stuff makes perfect sense. But when people say, I don’t know, isn’t that just what people do? And it’s like, no, you don’t have to buy a home if you’re not ready yet. You can still figure it out. You can rent your whole life. Ramit safety still rents to this day he doesn’t want to own. That’s amazing. If that’s what you want to do, do it.

Mindy:
Yeah, exactly. But again, with Ramit, he’s thinking about it and he has decided based on thought, not just, oh, everybody else is doing this. He’s decided I don’t want to be an owner, so I’m not going to be an owner, and he’s got a reason behind it. Do you ever see yourself buying a house or investing in real estate?

Anna:
Yeah, I definitely see myself buying a home. My husband wants to buy a house much more than I do at this point, but I think I’m going to let him have that one. And we will buy a home eventually, and we’re wanting to start a family soon, so we will own a home probably in the next five years. But as far as investing in real estate goes, I haven’t quite figured out what we’re going to do. He doesn’t like the idea of being a landlord, so I’m trying to push him on that a little bit. But I think the plan will be to focus on index funds and investing in the stock market in our twenties and maybe our thirties, and then in our forties or fifties when we’ve maybe got some more free time and more money, maybe jump into real estate investing.

Mindy:
And real estate investing isn’t for everyone. There are plenty of people who listen to this show, who have no interest in investing in real estate and are still reaching financial independence. I think real estate is a great way to get there, but it’s definitely not the only way to get there. And there’s all different levels of real estate investing. So when you’re ready, come to biggerpockets.com, review the forums, go in there and see what different kinds of investing people are doing. We have a new podcast in our podcast network called Passive Pockets, which focuses on syndication deals. And if you are investing in a syndication deal, you give them money and then that’s the end of your responsibility. So you don’t have to be a landlord. You’re not getting the phone calls from the tenant saying, Hey, there’s something wrong with the property. It’s a great way to invest in real estate without having to be on the phone with your tenants all the time.

Mindy:
It does have some risk, and that’s why we created this new podcast called Passive Pockets so that you can start to learn how to invest in syndications. Not all syndications are made the same. So when you’re ready, give me a call. We’ll chat. We’re going to take a quick break before we hear more from Anna Foley on how she was able to wipe out $80,000 of debt in under four years. Welcome back to the show. So let’s look back to your financial snapshot. When you graduated from college, you had $80,000 in student loan debt, or you had $80,000 in debt.

Anna:
$80,000 in student loans between my husband and I. So he graduated in December of 2019 and he had about 60,000 in debt. And then I graduated in May of 21, and I had about 20,000. So total we had about 80 in student loans. And then we also had a car that was about 14,000. So when we graduated, when he graduated in 2019, our net worth was like negative 95,000. And then when I graduated in 21, our net worth was negative 75,000. So we’d made some progress just paying the minimums on his student loans and the car. But yeah, just working through that.

Mindy:
And how did you pay down that $80,000? How long did it take and what steps did you take to make it happen?

Anna:
So it took us about three and a half years, and the biggest thing we did was at the beginning of every month, we made a plan for how much we wanted to put towards our student loans. And each time we got paid, we would send that money directly to the student loans before we could even use it. If we were going to wait until the end of the month, that money was going to go somewhere, we were going to find something to spend it on. So we made sure that we put that money towards the student loans right away. And over those three years, we did increase our income. So every time we got a raise, yes, we had some fun, but we also made sure that we were using that extra money to pay off our loans quicker. So just really staying disciplined and focusing on making those payments every month.

Mindy:
So when my husband was paying off, his student loans we’re old, so we were writing checks. You didn’t pay it online because the internet didn’t exist. And I wrote that last check and I was like, this is the best check I’ve ever written. Goodbye student loans. How great did it feel to be out of debt?

Anna:
It did feel really good. It was a long time coming. We originally planned, I think, to finish paying off our loans at the end of this year or next year, but because we were able to increase our income, we paid it off quicker than we expected. So it felt even better that we got it done quickly. And then what was really nice about it’s we were allocating all this money towards their student loans, and then as soon as that was paid off, we were like, oh, what do we do with that money? Now let’s just start investing it. Right? So it was really easy to make that transition to investing after we paid off our debt.

Mindy:
So paying off $80,000 in three and a half years, how much were you making at the time?

Anna:
So when Brett graduated in 2019, he started out making 60,000 a year. I was still in school, so I was probably making 20 to 30 just through my internship. But over that time, once I graduated, I started making low sixties as well. So we were up to one 20 gross income. And then over the last couple years, I’ve gotten a few raises and work overtime to make more, so I’m up to about $80,000, and Brett has jumped around to a couple of different jobs and he’s now up to 105. So last year our gross income was around $190,000. So it went from about a hundred, 120 up to one 90,

Mindy:
And that’s awesome. That is how you pay off $80,000 in student loans in three and a half years. As you steadily increase your income, you put the money to the loans first. This sounds a lot like when people say, oh, you pay yourself first. So you take your paycheck and you put X percentage into your savings, 20%, 40%, whatever you’re choosing. You put that into savings, you don’t even see it to spend it. When you put the money to the loans, you’ve already made your payment, and now you have the rest of the money to do with as you choose, as opposed to, like you said, if you leave it till the end of the month, you are absolutely going to find a way to spend that. What are the investing vehicles that you’re currently using to help you towards financial independence? Are you still solely in index funds?

Anna:
Yes. We still are a hundred percent in index funds. All of my stuff is with fidelity, so I’m in FX, A IX, just s and p 500 all the way. Brett has his 401k through principal, and they don’t have the best options for investing, so we picked the best one. They have, I think it’s an s and p 500 equivalent, just has a higher expense ratio on it. But yeah, all of our investing is in index funds currently.

Mindy:
I love that. Now you mentioned a Roth IRA and a 401k. Are you maxing those out?

Anna:
We are both maxing out our Roth IRAs. We’re not maxing out our 4 0 1 Ks. We’re contributing up to the employer match right now. And then Brett also has an HSA that he’s maxing out.

Mindy:
Okay. And what are you doing with, I don’t want to say the extra, because there’s no such thing as extra money. What are you doing with the remainder

Anna:
Right now? We’re saving actually potentially for a house in the next few years. So we’ve been trying to save two or $3,000 a month. We were saving up for a car. We just bought a car, and then now we’re going to start transitioning to saving for a house.

Mindy:
And do you have any sort of after tax brokerage investments?

Anna:
Not yet. I’ve been thinking about opening one of those up and just starting to get that ball rolling, but it’s hard to give up the tax advantage of all the retirement accounts. So kind of struggling with that decision on which one I should do.

Mindy:
Yes. Well, I totally understand that. We have an episode about the middle class trap where you are a millionaire on paper, you’ve got a million dollars or more in your retirement account, in your 401k in your home equity, but you don’t have any way to really access that without paying penalties and what have you. And that is episode 543. I encourage you to go and listen to that one just to prevent yourself from becoming, I mean, it’s not a terrible position to be in. You’re 40 years old and you’re a millionaire. You just can’t access any of it without paying penalties. So the cure to that, if you haven’t gotten to 40, if you’re younger, you should start an after tax brokerage account. So you do have access to funds. You can always access the money you put into your Roth, but not the gains before.

Mindy:
You’re 59 and a half I think, and I’m sure I’m saying that wrong, and somebody is going to email [email protected] to tell me about that, but you hedge your bets and do an after tax brokerage account so you can access those funds earlier. Another way to access those funds, if you are, I hate the way that I’m wording this, but I can’t think of a different way. If you have fallen victim to the middle class trap, we just did an episode with Eric Cooper about the 72 T where you can access your retirement funds early through separate but equal periodic payments, which means you have to take out the exact same amount every single year. So there are ways to access it, but not even having to do all that monkey business is even better.

Anna:
For sure. I did actually just listen to that episode. It was a good one.

Mindy:
Yeah. Oh, I love Eric. He’s so great. Anna, what would you guess your savings rate is

Anna:
So far this year? Our average monthly savings rate has been around 43%, so some months are a little bit above 30. Some were in the fifties, so it just depends month to month. But yeah, a pretty good average. It was actually higher than I expected. I hadn’t really tallied it up for what the average was this year yet, and it was higher than I expected. But yeah, I’m happy with it.

Mindy:
Okay. I’m going to challenge our listeners right now. If you have a savings rate, if you are able to be saving instead of spending everything that’s coming in, what is your savings rate? Email me, [email protected]. I’m so curious just to see, I’m not going to name names. I won’t read this on air, but I think it would be interesting to say, oh, the average BiggerPockets money listener saves 25% or 3% or 97% or whatever it is. So email [email protected] and tell me your savings rate. I would love to hear it. Let’s talk about your yearly expenses now. Do you have a good sense of how much you’re spending on average?

Anna:
Yeah, I’ve been tracking our finances for the past few years. I started with just a simple Google spreadsheet and was putting in our income and expenses, and then this past year, I just actually purchased a wealth dashboard from my wealth diary on Etsy. She makes these really incredible spreadsheets that are really detailed, and I could never create something that good, but it was like 40 bucks to buy it, and you can use it over and over, just create a copy and edit the information. So last year we spent around $98,000 total, and that’s not including extra student loan payments and saving and investing. So that was just all spending that we had to do, and that comes out to about $8,000 per month. And then last year we spent around the same. So we’ve been pretty consistent spending between 7,000, $8,000 a month, even though our income has been increasing.

Mindy:
So 7,000, 8,000 a month, that can be construed as maybe a lot. Do you feel comfortable with how much you’re spending or do you wish you were spending a little less?

Anna:
I do feel really comfortable with how much we’re spending. That’s a big thing that I’ve wanted to focus on is not restricting our spending a lot. We make a lot of money. We are saving and investing for our future. We paid off our debt. We don’t need to be nickel and dimming everything. So yes, we have some maybe expensive things that we buy or pay for things that we do, but everything that we do is important to us. So we’re trying to focus on spending our money on things that make us happy and cutting out things that don’t make us happy. So we go to a gym that’s probably considered expensive. It’s like $250 a month for both of us to go to this gym. And yes, we could just go to a really cheap $10 month Planet Fitness gym, but we like the gym. We’re going to, it keeps us healthy. So that’s a really worthwhile expense for us. We like to golf. Golf is pretty expensive sport, but we like to do it. We don’t mind spending the money on that. So we try and really focus on spending in alignment with our values and not focusing on the dollar amount.

Mindy:
I love that so much. I want to go back and underline every single thing you just said because I reached financial independence by not doing that. I reached financial independence by being as cheap as I possibly could and stuffing a lot of money into the 401k, the IRA, the after tax brokerage account, and not really enjoying the journey. And I wish I would’ve done it differently, but you can’t go back and change things. So I love that you are saving responsibly and also living your best life because you could absolutely get to fly earlier with the most miserable existence ever, which is what, it wasn’t the most miserable existence ever, but it certainly wasn’t anything fun. We didn’t go on vacation, we didn’t go out to eat all that much. We didn’t enjoy the journey. And it sounds like you are enjoying the journey, being mindful of where you’re spending. And again, it all goes back to the thought process. You’re thinking about things. You’re not just, oh, well, I should buy a house. Everybody else is, I should buy a new car because I think that one’s pretty, I should do all of these things. I should spend all of this money. No, I want to get to financial independence, so I’m going to pay myself first and then I’m going to enjoy what’s left.

Anna:
Yeah, a hundred percent agree. I have to give a lot of credit to my husband on that one. He is the one that’s like, we need to still enjoy ourselves and have fun and not focus all on the numbers and on retirement. And we’re still so young. We’ve got a lot of time. So

Mindy:
Yes, shout out to your husband. We have to take one final break, but more on Anna’s next financial milestone that you should be hitting to after this. I am excited to jump back in with Anna. Do you have a PHI number, like a specific 4% rule number that you’re working towards?

Anna:
We don’t have a specific PHI number. In my mind. I’ve always kind of been shooting for 3 million, but I haven’t really run the numbers. 3 million just seems reasonable because using the 4% rule, it’d be like 120,000 a year. So that’s 10,000 a month, which seems reasonable. I mean, we’re spending around eight now and we don’t have any kids or anything yet. So that potentially could go up, but seems like a pretty safe number to shoot for, and we’re kind of not focused on the end number. If you think about having $3 million invested and you’re only 27 years old, that just seems like impossible, right? That’s such a huge number. You’re so far off. So I like to focus on setting yearly goals. So each year we’ll set maybe a net worth goal or how much we want to invest and shoot for those so that it’s much more tangible and we can measure it easier because hard to know for sure if you’re on track or not. So much is going to change between now and when we’re 30, 40, 50 years old. So really focusing on the short term and setting goals for now.

Mindy:
Okay. I just love that so much. Do you think the fire movement changes the way people perceive work?

Anna:
Yeah, I think it does. I mean, I think before I knew about the fire movement, probably when I was in college, right before I graduated, I found out about the fire movement. And what was really cool to me was that you get all the freedom, right? You’re basically buying back your time by investing in real estate stocks, whatever it is. And it’s cool because growing up, you just watch everyone work for 40 years and retire when they’re 65 or older, and that’s just life. You just think that’s how the world works, right? You’re just a little kid, you don’t know. Once you actually get there, you realize that you don’t have to work until you’re 65, right? How long you work can really be up to you if you’re willing to invest some of that money. So that really changed my perspective on work now because I’m working right now to make money and I’m investing some of it, I’m having fun with some of it. But ultimately, if I’m able to retire at 40, 50, 60 years old, it’d be really great to not have to work until I’m 65, and I know we’re on track to not need to work until we’re 65. So it feels good knowing that we’re not going to be trapped in our job for that long.

Mindy:
Yeah, that’s really, really awesome to have that mentality. And I just sent a note to my producer. Can you imagine learning about PHI in college?

Anna:
That would be so awesome. I’m pretty lucky. I mean, now that technology’s out there, there’s so many podcasts and books and everyone is talking about it, so it’s just way easier to find out about it.

Mindy:
It is, and it doesn’t take a huge amount of change in your life, especially when you’re earlier in your financial independence journey when you’re younger, it doesn’t take a huge amount of change to completely change your trajectory. You could be going like this, but you make a little tiny change and now you’re going through the roof. Your 40% savings rate is awesome, and you will continue. You probably increase it as you increase your salaries, and I’m so excited for your future because your future is going to be so awesome.

Anna:
Yeah, I like what you said about how a tiny change when you’re young can make a big difference because that is so important. Time is the most important ingredient when it comes to investing, and I don’t think people realize that a little bit of money today can grow to be such a big amount of money later on that even just investing a hundred dollars a month, $200 a month in your twenties, and continuing that on all the way through until you’re 60 years old, can become millions of dollars. So it’s just really important to set it up when you’re young, the right way, so that you’re spending less than you’re making so that you’re not having to realize at 40, oh, shoot, I haven’t saved anything. I don’t have anything invested for retirement. Now you have to downgrade your lifestyle in order to invest money to try and catch up when you could already have created your lifestyle around your income, knowing that you were going to save and invest some.

Mindy:
I love that. Are you sure you’re only 27?

Anna:
Yes, I’m positive.

Mindy:
So for many, earning more income is the key to fire, whether that’s passive or through your W2, and you have said that you have increased your income, your husband has increased his income by changing jobs. You’ve mentioned some small milestones today, rather than working towards a FI number, what’s your next biggest financial goal or milestone?

Anna:
So this year, our goal was to get to $125,000 for our net worth. And right now we’re at one 13, so we should meet that by the end of the year with no problem. So now my focus is on having a hundred thousand dollars invested, and we’re at about 90,000 right now. So I’m hoping to get that up to a hundred thousand by the end of the year, and that’ll be a big one. They always say that’s the hardest one to get to, and after that compound interest starts taking over. So we’re excited about that.

Mindy:
It does, and it’s hockey stick growth. It’s pretty awesome. Do you ever plan on investing in individual stocks or anything outside of V-T-S-A-X besides the real estate that we already talked about?

Anna:
No. No plans to do that. If I were to do that, I’d keep it to a very small percentage of my portfolio, just for fun to see how it would go. But I’ve read enough of the books, I’ve listened to enough of the podcasts that index funds are the way to go. There’s really no point in trying to beat the market, so we’re just going to ride those out.

Mindy:
I love that answer, listeners. I did not prompt her for that answer. That is totally her answer. But I love it so much, so much. I love that you’re putting thought into your financial situation, and it doesn’t have to be a ton of thought if you don’t want to think about it at all. Read a Simple Path to Wealth by JL Collins. By the way, Anna, you are making his heart sing with all the things that you’re saying. I know he’s just going to love you to death. What is your biggest piece of advice for someone just hearing about financial independence and just starting out on their financial journey?

Anna:
My biggest piece of advice would be to save and invest first. So we talked about it earlier. When you get paid and you leave that money in your account, you’re tempted to spend it and you’re likely going to, there’s so many things to find to spend money on. So it’s really important that when you get paid automatically send that money to your savings accounts, to your investment accounts so that you can’t spend it, and then you can spend whatever’s left over a hundred percent guilt-free, because it doesn’t need to be saved. It doesn’t need to be invested. It’s yours to do whatever you want with. So I think the biggest thing when you’re younger is to sit down and think about how much money am I going to make? Take that number. Take out all of your necessary expenses. You need to have a place to live. You need a car and you need food. Take out all the necessary stuff, see what’s left over and of that, make sure that you’re saving, investing some of that too. And then whatever is leftovers is your suspend on whatever you want.

Mindy:
Anna, I love that. It’s just like the anti budgett that Paula pant talks about. You save ahead of time, you save in the beginning, and then you can spend the rest and you’re paying yourself first. I think it’s brilliant. Anna, thank you so much for your time today. I love your story. I love your future. It looks so bright. I’m going to date myself. Your future’s so bright. You got to wear shades. Okay, cue the groaning. She’s like, I don’t even know that song. I don’t. Timac three from 1987.

Anna:
I’m so bad with songs. I’m not your audience.

Mindy:
Oh, you’re so bad. From with songs that were 30 years before you were born.

Anna:
Yeah, that too. Especially

Mindy:
Where can people find out more about you?

Anna:
So I’m on Instagram at five 20 Money. That’s FIVE two zero money, M-O-N-E-Y. I started a money coaching business last fall to help people out with their personal finances. So if you’re looking for help paying off debt or starting to invest, all that stuff, I’d love to help young people get started on the right foot so that they can retire early too.

Mindy:
Oh, I love that so much. Thank you so much, Anna. I really, really enjoyed talking to you.

Anna:
Yeah, thank you.

Mindy:
Alright, that was Anna Foley, and that was such a fun story. If you did not listen to this episode with your kids in the car, rewind and put it on play. The next time that you’re all together, this is absolutely the right way to set yourself up for life. Oh look, a Scott Trench reference, and he’s not even here, don’t worry, he’ll be back next week. But tracking your spending, increasing your income, investing wisely, these are the key tenets to reaching financial independence. If you can do this, you can reach financial independence. I’m not going to drop my mic because feedback, but if I could, I would. This is absolutely the roadmap to reaching financial independence in a healthy way. Alright, that wraps up this episode of the BiggerPockets Money Podcast. I am Mindy Jensen saying, see you soon, raccoon. I.

Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds. Thanks! We really appreciate it!

In This Episode We Cover

  • How to become debt-free and achieve a six-figure net worth before you’re thirty!
  • Why Anna decided to rent a house, not buy one, to maximize her savings
  • What Anna invests 100% of her income in (it’s not real estate!)
  • The “middle-class trap” to avoid when maxing out your retirement accounts
  • Why you DON’T need a FIRE number, and why Anna’s more achievable goals work better
  • Boosting your income and why job-hopping can explode your income-generating potential
  • And So Much More!

Links from the Show

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

A 5-step plan to reduce buyer stress and sell more homes now

by | Aug 30, 2024 | Industry, News Feed

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.

In a market filled with buyer agency changes, compensation questions and fluctuating interest rates, is it any wonder that prospective buyers are stressed out by all the confusion? This article shares a simple, five-step process for reducing buyer stress that will not only lead to more sales now but more referrals in the future as well.

TAKE THE INMAN INTEL INDEX SURVEY FOR AUGUST

1. Bring clarity and confidence

When you bring a buyer clarity about the process and confidence that you will get them to the closing table, they move from a place of nervousness to excitement. The pathway to clarity and confidence is achieved through three aspects you can provide using the acronym ACE.

A – Assistance

A buyer’s understanding that you will be with them every step of the way, offering assistance and guidance throughout the process, breeds confidence. You can help them better understand how this assistance will look by sharing details about the resources you have available.

You should discuss your relationships with lenders, title companies, inspection companies, etc. Let them know how you will not only help them find the best service providers but guide them in choosing the highest quality programs and services available through these providers.

C – Communication

The most common complaint about real estate agents is their poor communication skills. This is an opportunity to turn what is normally a negative into a positive.

Give them consistent updates about the process from your first meeting until after closing. Be consistent, concise and thorough in your communication. By telling them upfront what they can expect from you and communicating throughout the process, lifelong client relationships can be built.

E – Experience

Buyers need to know the agent they are working with has experience in helping other buyers. Stats tell but stories sell, so one effective way to build a buyer’s confidence is to share the stories of how you’ve helped others. This is an example of subtly showing your experience through sharing a story:

Just like the two of you, I was working with a couple a few months ago who weren’t sure about the price of the home they could afford. The process we utilized for them — and that I will be suggesting for the two of you — involved me introducing them to a lender that many of my clients have used successfully in the past.

The lender requested all the needed financials from them, and after evaluating their situation, he provided them with the loan options they qualified for. At that point, I worked with them to evaluate the options. We looked at monthly payment options, closing costs and down payment options.

After evaluating their options, they chose the loan program that made the most sense for them. This gave them the confidence, just as it will you, that when they found their perfect home, they were able to write an offer with confidence that they would be approved for the loan and have no surprises throughout the loan process.

When you share stories of your experience, you bring much-needed clarity and confidence to the process (and your value).

2. Remove fears about signing a buyer agreement

Many buyers in this new post-NAR settlement environment are hesitant to sign a long-term buyer’s broker agreement right after meeting an agent. So how do we remove or mitigate these fears?

For this example, let’s imagine a couple coming into town over a weekend to see properties in an area for the first time. Before this trip, they’ve never met the agent who will be showing them properties. This is an example of how that conversation could go to remove these fears:

In case you haven’t heard, in order to see any homes listed in the MLS, a buyer must now sign a buyer agreement prior to seeing the home. I know this is our first meeting, and I would not want to sign a long-term agreement with someone I just met, so I imagine you feel the same way.

So, here’s my suggestion that I think helps both of us decide if we want to commit to working with each other long-term. This buyer’s broker agreement is limited, and it states I will represent you as your buyer’s agent on any homes we might see this weekend.

This way, our agreement to each other only applies to any homes I show you this weekend. If we don’t find the perfect home this weekend, then we can both decide if we want to commit to each other through a more formal, longer-term agreement. How does that sound?

By eliminating their fears, you’ve positioned yourself to build trust and the foundation for a lifelong client.

3. Answer questions before they ask them

Uncertainty leads to stress, and stress often comes from not having a complete grasp of a process or answers to questions you might have. One way to reduce the number of questions your prospective buyers might have is to prepare a frequently asked questions page that you can give them early in the process.

You may be wondering, “But how do I know what the most frequently asked questions prospective buyers have?” This is where ChatGPT can really help. If you’re wanting to prepare this for your prospective buyers, this is a prompt you can use:

Act as an expert real estate copywriter and provide me with a frequently asked questions page with the questions and answers to the 20 most common questions prospective real estate buyers have about buying a home.

This simple step will streamline the process and answer many of the questions your prospective buyers have.

4. Show them, don’t just tell them

Most buyers won’t remember everything you discuss with them. This is where having a buyer brochure or premade buyer folder available can provide the buyer prospects with confidence in your ability to move them from wanting to buy a home to owning a home.

This brochure or folder should have specific items included, such as:

  • A letter from you thanking them for the opportunity to earn their business
  • An outline of your plan of action to find their ideal home, including the use of the MLS, utilizing your network of other agents to identify “coming soon” listings for them before other buyers, and your plan of action to uncover off-market opportunities for them
  • Testimonials from other buyers you’ve worked with in the past

If you’re unsure about what these should look like, do a simple Google search for “real estate buyer brochure examples.” Utilize the examples or templates you find to build a buyer brochure that you will be proud to share with prospective buyers.

5. Tell them their next steps

Confidence comes from knowing what to expect next. Here are a few examples of how you can communicate their next steps and consistently build their confidence in you and the process:

  • Now that we’ve completed our initial meeting, the next step is for me to introduce you to a lender who can help you get pre-approved for a loan.
  • Now that you’ve been preapproved for your loan, and we know the price range of the home you’ll be looking for, let’s discuss neighborhoods that might fit your desires and price range.
  • Now that we’ve identified your target neighborhoods, the next step is for me to send you an email with the homes currently for sale in these neighborhoods so we can choose the homes you’d like to see.
  • Now that we’ve found a home you love, the next step is for me to prepare an offer for you to make on the home.
  • Now that we are under contract, the next steps are for the lender to order an appraisal and for me to order a home inspection.

Focus on the buyer’s pressure points. Be attentive to their fears, and do everything in your power to give them confidence in you and their ability to buy a home. When you do this, transactions will run smoother and opportunities to help buyers will come more frequently.

Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.

NAR interim CEO: Settlement was ‘unequivocally’ the right move

by | Aug 15, 2024 | Industry, News Feed

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.

Nykia Wright, interim CEO of the National Association of Realtors, may not have direct experience in real estate. During her entire career, however, she has been focused on constant disruption.

That made her a good pick for the moment to lead staff at NAR through the most tumultuous time in the industry’s modern history, she said during a recent podcast interview.

Wright recently sat down with a team of friendly interviewers from the Real Estate Insiders Unfiltered podcast, including NextHome CEO James Dwiggins and NextHome CSO Keith Robinson. Dwiggins has been a vocal ally of NAR through the past year, offering critiques while also calling for support of the organization.

Wright has declined through NAR to sit for an interview during her roughly eight months as the organization’s CEO, so the podcast offered a rare glimpse into the staff leader of the organization at a critical time for NAR and the industry at large.

Whereas NAR President Kevin Sears has granted multiple interviews and appeared before large crowds during his time as head of leadership, including appearing on stage at Inman Connect Las Vegas last month, Wright has worked to lead staff behind the scenes.

Dwiggins asked Wright whether NAR’s brokering of a settlement, which will include paying $418 million in the coming years and making sweeping business practice changes that take effect on Saturday, was the right decision.

“Absolutely, unequivocally,” Wright said. “We have to understand what we were faced with. It’s not like we had an entire option set. Of the options that we were given, this was the path that made the most sense for us. Now, that said, we are not resting on our laurels.”

She acknowledged that members were upset about changes that have engulfed the organization and the real estate industry.

“Some people will take a while and some people may never come back,” Wright said, “but we are not going to count the day before evening and assume that that’s true.”

She repeatedly urged NAR members to “lean in” and engage with the organization.

Wright didn’t mention any NAR detractors by name, including the American Real Estate Association, a new real estate organization formed by Compass agent Jason Haber and The Agency CEO Mauricio Umansky.

However, she said NAR is proactively working to do what it can to win back disgruntled members.

“There’s a saying, ‘listen to the whispers so you don’t have to hear the screams,’” Wright said. “So the whispers of people wanting to leave is where we put our head on a swivel, get out there and start figuring out how we can bring those people back into the fold.”

“When people are leaning out right now, it concerns me a little bit because their voice is not part of a future solution,” Wright said. “Being in business for yourself but not by yourself, when you leave the association, I consider [leaning out] going into the ‘by yourself’ type of box. And I think that we are truly stronger together, and we just have to continue to prove that.”

Wright also didn’t mention a new class action lawsuit filed earlier this week by agents and brokers in Michigan against NAR, but she did appear to address critics more broadly.

“I understand that people are frustrated with things, but bring those frustrations in house so that we can be the best organization that we can be,” Wright said. “Because we’re confusing consumers, we’re confusing plaintiffs’ attorneys, we’re confusing the Department of Justice, we’re confusing all of these people based on how many followers we have and how many users we have.”

The interview also gave the public and NAR’s 1.5 million members perhaps their most thorough insight into Wright’s background and allowed them to hear from her about why it’s what the organization needed for this moment in time.

“I probably was not built for yesterday and who knows what I’m built for in the future,” Wright said. “But right now, it makes sense based upon my background.”

Wright’s background

Wright is from Atlanta and studied finance at Carnegie Mellon University before moving to Europe and studying international business at the University of Cambridge. She returned home and eventually got her Master of Business Administration degree at Dartmouth.

She called herself a “business doctor,” working as a consultant for private and public companies, including unnamed real estate companies. That consulting work, and a later position as CEO of the Chicago Sun-Times, gave her experience in industries that are constantly being disrupted, Wright said.

“The last consulting firm that I was part of, there was a sign at the front door; it was six feet tall by about three feet wide,” Wright said. “The sign said, ‘While you are reading this, your business model is being disrupted.’ That helped us understand and develop a discipline for when we were helping our clients.”

Wright also said an immediate focus when she joined NAR as its interim CEO was on the organization’s communications strategy, saying real estate was facing its “Y2K moment.”

“Making sure that we are able to speak to all of those audiences and companies at the same time is a very, very difficult task,” Wright said. “That’s not an excuse. But that was one of the primary challenges that we had to face.”

Wright pointed out that while she didn’t have direct experience as a real estate operator, her skills and business background are complementary to those of Kevin Sears, a long-time broker from Massachusetts.

“One additional person having a real estate background is not going to move the needle,” Wright said. “But if you’ve got someone with decades of real estate experience and someone with decades of experience … outside of the real estate industry but having adjacent experience, that is a really, really powerful thing.”

When asked whether she hoped to stay on past the end of the year, Wright was somewhat reticent.

“I will say that I will not change anything as it relates to how my life has been designed,” Wright said. “I bloom where I’ve been planted, and I let the universe take care of the rest of the details.”

Email Taylor Anderson