by Zillow | Sep 3, 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 today’s rapidly evolving real estate market, Realtors are constantly seeking strategies that not only boost immediate sales but also ensure sustainable growth for years to come.
One such strategy — building a robust referral network — has proven indispensable, effective regardless of market conditions.
Why focus on referrals?
In an industry where trust is the currency and relationships are the backbone, the power of referrals is monumental. Imagine a scenario where every client you delight becomes a vocal advocate for your business, where your reputation precedes you, opening doors and building bridges before you even step foot through them. This is the ecosystem you cultivate with a strong referral network.
Referrals amplify your marketing efforts organically and help build trust with prospective clients before you even meet them. A referral comes with a built-in level of trust and a higher likelihood of conversion, compared to leads generated through other channels.
Here’s how focusing on referrals can transform your business: and why events like Inman Connect New York and Inman Connect Austin can be game-changers in how you approach this strategy.
Building a referral network:
- Deliver unforgettable service: The journey starts with service that goes beyond satisfactory. Exceptional is your benchmark, creating memorable experiences that clients are eager to share and setting the stage for referrals.
- Maintain visibility: Engage and re-engage through regular, meaningful communication like newsletters and social media interactions, ensuring your name remains top-of-mind.
- Express appreciation: Never underestimate the power of a sincere thank you. Acknowledging a referral with gratitude encourages a continual partnership that thrives on mutual respect.
- Utilize smart technology: Utilize tools such as advanced CRMs to maintain connections effortlessly, ensuring no client feels neglected. Modern tech solutions, especially those leveraging AI, can predict client needs and timing, making your interactions timely and more impactful.
- Actively expand your network: You know what they say: Your network is your net worth. Attending events like Inman Connect give you the time and space to make genuine connections in a short amount of time. And ultimately, lead to more deals.
The Inman Connect experience
Why attend Inman Connect? These events are more than just conferences; they’re a nexus of innovation and inspiration. They offer a platform for:
- Expert-led insights: Sessions are designed to dive deep into the mechanics of referral strategies, enriched by real-world applications and success stories from those who’ve mastered the art.
- Peer connections: It’s where deals are made, partnerships are formed, and future referrals are born. Networking here means you’re growing your referral base with every handshake.
- Revitalization and inspiration: It’s easy to get caught in the grind. Inman Connect offers a fresh perspective that will rekindle your passion and drive for the real estate profession.
Embracing the future, and growing your network, with Inman Connect
As the industry stands on the cusp of significant shifts—from technological advancements to changing market dynamics—Inman Connect positions you at the forefront.
Opportunities to join us:
- Inman Connect Austin, October 9, 2024: A more intimate, yet supercharged one-day event.
- Inman Connect New York, January 22-24, 2025: The flagship event experience with 3,000+ industry pros and 50+ sessions over three days.
These cities, emblematic of innovation and resilience, provide the perfect backdrops to explore and harness the full potential of referral strategies.
Inman Connect isn’t just about keeping pace; it’s about setting the pace.
Whether you’re looking to refine your approach to the luxury market, integrate cutting-edge tech into your daily operations, or simply find better, more effective ways to connect with clients, these events promise to equip you with unparalleled insights and tools.
Join us at Inman Connect and start writing your next chapter in real estate. Don’t just keep up with the industry—set the pace.
Step into the next chapter of your career with industry leaders who will boost your confidence and success. This is your invitation to turn every introduction into a lasting impression and every client into a stepping stone towards greater success.
Register now and secure your place at the forefront of the real estate industry. The next chapter is yours to write—make it extraordinary with Inman Connect.
Register for Inman Connect Austin—October 9, 2024.
Register for Inman Connect New York—January 22-24, 2025.
by Kevelyn Guzman | Sep 2, 2024 | Industry, News Feed
Buyers failed to bite this summer despite falling mortgage rates. It has agents about as down on their business prospects as they’ve been all year heading into the NAR settlement era, according to Intel’s Client Pipeline Tracker.
This report is available exclusively to subscribers of Inman Intel, the data and research arm of Inman offering deep insights and market intelligence on the business of residential real estate and proptech. Subscribe today.
As mortgage rates continue to drop, real estate agents are increasingly able to picture a future in which more seller clients are lured back into the market.
There just may not be many buyers waiting to meet them.
Agent sentiment toward their future revenue pools reached a 10-month low in late August, according to Intel’s Client Pipeline Tracker metric.
These worsening attitudes were mostly driven by a reported thinning of buyer pipelines over the last 12 months — and a growing sense that first-time buyers will remain tough to recruit in the year ahead.
Client Pipeline Tracker score in August: -10
- Previous score: -7 in July
- Recent peak: +7 in January
Chart by Daniel Houston
The Client Pipeline Tracker is an updating measure of agent sentiment toward the pool of potential real estate buyers and sellers. The metric is powered by the Inman Intel Index monthly survey of real estate professionals.
This souring of expectation over the past month coincides with the immediate aftermath of the Aug. 17 deadline for changes stemming from the NAR settlement.
However, an Intel review of its own surveys and purchase-loan data suggests that market forces are also weighing heavily on the brokerage business.
Read the full breakdown of the latest Client Pipeline Tracker results in the report below.
Buyers beware
Intel’s Client Pipeline Tracker is a compilation of how agents feel about their buyer and seller pipelines — both over the past year and in the near future.
Intel described the full methodology in this post, but here’s a quick refresher on how to interpret the scores.
- A score of 0 represents a neutral period in which client pipelines are neither improving nor worsening.
- A positive score reflects a market in which client pipelines have been improving, or are widely expected to improve in the next 12 months. The higher the rating, the more confident agents are in that conditions are moving in a positive direction.
- A negative score suggests client pipeline conditions are worsening, or are widely expected to get worse in the year to come.
An extremely positive combined score falls somewhere around +20. This type of score would signify that much of the industry is in agreement with the fact that pipelines are improving and will continue to improve.
An extremely negative combined score, on the other hand, falls closer to -20. That’s a bit lower than where the industry stood in September, the first time Intel surveyed agents about their pipelines.
For the four individual components that go into the score, results as high as +50 or as low -50 are sometimes observed.
Here are the component scores for August, and how each sentiment category changed from the previous month.
CPT component scores
July → August
- Present buyer pipelines: -33 → -41
- Future buyer pipelines: +2 → -5
- Present seller pipelines: -18 → -18
- Future seller pipelines: +2 → +5
This represents a clear downward shift in buyer pipeline conditions — both in the present day and in terms of what is expected to occur over the next 12 months.
The latest numbers appear to confirm last month’s slight improvement in buyer pipelines were a one-month blip. They also contribute to a broader pessimistic trend that has only deepened since the NAR settlement was announced in March.
Notably, agents in August actually reported an uptick in optimism when it comes to their listing pipelines.
- 35 percent of agents in late August told Intel they expect their seller pipelines will be heavier a year from now — up from 31 percent the previous month.
One possible contributor to this? Recent economic data has made the path ahead clearer for the Federal Reserve.
Inflation has cooled, job growth is slowing and “the time has come for policy to adjust,” Fed Chair Jerome Powell said Aug. 23 at the Jackson Hole economic conference in Wyoming.
That could mean lower rates in the near-to-mid future, softening a stubborn impediment to homeowners swapping their ultra-low mortgage rates for a new loan at today’s prices.
But real estate agents, despite being well aware of these signals, appear to have more pressing issues on their minds.
Trends overshadowed
It’s unclear how much agent pessimism can be attributed to the Aug. 17 deadline, and how much is linked to actual business conditions on the ground.
But looking at the data, there’s a case to be made that both are affecting agent attitudes.
When the NAR settlement is most on the minds of agents, they tend to report a more pessimistic outlook on their future buyer prospects.
The two biggest single-month drops in the future buyer pipeline score each occurred after major developments in the lawsuits:
- the largest in late March, when the NAR settlement was first announced and the future buyer pipeline score dropped by 19 points;
- and the second-biggest just this past month, when agent sentiment toward future buyer pipelines fell by 7 points immediately after the NAR changes went into effect.
But these aren’t the only factors potentially weighing on agents.
- Existing-home sales as reported by NAR continue to come in especially low — at an annualized rate of around 4 million a year or below.
Even in more recent weeks, as mortgage rates continued to drop, buyers were reluctant to apply for purchase loans.
- After a brief spike in January, the Mortgage Bankers Association Purchase Loan Index in August fell back down near where it was in October, effectively its lowest point in decades.
All that to say, market forces may be playing a big role in agent assessment of their present-day buyer pipelines, and both may be souring the future outlook, for now.
Methodology notes: This month’s Inman Intel Index survey was conducted Aug. 19-30, 2024, and had received more than 620 responses as of Aug. 26. The numbers used for this article are preliminary and subject to revision. The entire Inman reader community was invited to participate, and a rotating, randomized selection of community members was prompted to participate by email. Users responded to a series of questions related to their self-identified corner of the real estate industry — including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. Results reflect the opinions of the engaged Inman community, which may not always match those of the broader real estate industry. This survey is conducted monthly.
Email Daniel Houston
by Sean Frank | Sep 2, 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.
There’s a lot of confusion around the particulars of the National Association of Realtors (NAR) commission lawsuit settlement and the resulting business practice changes. Compliance expert Summer Goralik is here to help clear up some of the looming questions so that we can move forward together as an industry.
Read the entire series.
This week’s question
Can I say “call for buyer’s agent compensation” in the private remarks?
Compliance expert answer
This question caught my attention for two key reasons. First, it can be answered in just one word. Second, while the answer is straightforward, it highlights a deeper, more complex issue regarding compensation offers in today’s real estate industry. Let’s break it down.
To begin with, here’s a quick recap of recent events. The practice modifications resulting from the National Association of Realtors (NAR) settlement took effect on Aug. 17.
By now, all Realtors and multiple listing service (MLS) participants should be adapting to this new landscape, which emphasizes the decoupling of real estate commissions and a more consumer-focused approach. Fully embracing these changes is essential to avoid future litigation and antitrust issues.
Now, regarding the question of whether a licensee can input “call for buyer’s agent compensation” in the private remarks of a listing on the MLS, the answer, in my opinion, is an unequivocal no.
Although I’m not an attorney, here’s why I strongly advise against this practice:
- NAR settlement compliance: The NAR settlement prohibits unilateral offers of compensation through the MLS. As a result, offers of compensation cannot be advertised on, or facilitated through, the MLS.
- MLS policy and enforcement: MLS platforms nationwide have been removing commission fields and modifying their rules to comply with this new requirement. For example, the California Regional MLS (CRMLS) has modified or enacted rules in response to the NAR settlement, including Rule 7.15. This rule explicitly states that a listing broker cannot use the MLS to offer or convey any amount or willingness to share a commission with a buyer broker, nor can a seller offer a specific compensation amount to a buyer broker.
Given this, any mention of agent compensation in the private remarks would likely be flagged by MLS enforcement, potentially leading to fines. It’s an easy target for MLS compliance teams, and such a non-compliant listing would almost certainly be reported by other practitioners, especially in this heightened regulatory environment.
It’s also important to note that peer enforcement may increase during these early months as agents and brokers learn to navigate and apply these significant changes to their operations. The interpretation of these rule changes, as seen in the proposed activity discussed in this week’s question, is where we may encounter a range of questionable conduct.
- Broker accountability: If an agent is found to be non-compliant, their responsible broker will likely be displeased, especially if policies and procedures were established to guide agents through this transition. Responsible brokers are expected to oversee their agents to ensure compliance, and disciplinary measures may be in place for agents who fail to follow the rules.
Now that I have answered the primary question, I will explore the underlying issue that can’t be ignored.
Admittedly, when I think about this moment of critical change and all the ways agents might accidentally get it wrong or react improperly, the private remarks on the MLS aren’t the issues that keep me up at night. Blame it on my compliance background, but I tend to focus on the more serious aspects of this question.
The real issue isn’t just whether you can advertise buyer agent compensation in MLS remarks — it’s whether you should be advertising offers of compensation at all.
According to NAR’s frequently asked questions (FAQs) available on its website, offers of compensation, including cooperative compensation, aren’t outlawed, but they are prohibited from being displayed or facilitated on the MLS. Theoretically, this leaves some leeway for agents and brokers to advertise compensation through other channels, such as websites, signage and social media.
However, if you follow the logical path — or what some might call a “rabbit hole” — that this question leads us down, there are broader implications to consider.
Despite NAR’s guidance that cooperative compensation isn’t illegal, there are strong warnings and narratives advising against it.
For example, some state associations initially revised their forms to remove all references to compensation tied to the MLS but have since gone further by removing broker-to-broker compensation altogether. At least, that was the case in California.
Complicating matters further, consumer watchdog groups like Consumer Advocates in American Real Estate (CAARE) offer advice that differs from NAR’s. Its website provides guidance and suggestions for both sellers and buyers in the post-NAR settlement era.
Not only do they argue against cooperative compensation, labeling it as collusion, but they also suggest that sellers should not offer compensation to buyer brokers upfront, as it can artificially inflate fees. Instead, they recommend negotiating these terms during the offer process and emphasize that offering compensation directly to buyer brokers may not be in the seller’s best interest.
Similarly, some leaders in the real estate industry argue that advertising any kind of buyer agent compensation or concessions in advance of offers is actually a disservice to the homeseller and works against an agent’s fiduciary duty owed to their principal.
As someone with a background in real estate compliance, I can’t help but think about the larger legal concerns that even simple questions can raise. Whether that’s a talent or a curse, I’m not sure.
Although I don’t have all the answers, I am certain that practitioners will need to dig deeper, expose the more challenging questions, and by extension, address the most paramount compliance concerns. Agents must work closely with their responsible brokers, legal counsel, and trusted advisors to implement these practice changes and ideally avoid crossing the line into regulatory trouble or litigation.
Part of my ongoing wish list for the industry is clear, consistent guidance that aligns with the standards set by the United States Department of Justice and watchdog organizations. The sooner agents receive uniform direction, the better it will be for everyone involved.
I believe that agents are committed to doing the right thing, but their success depends on having explicit instructions on how to get it done right, as well as clarity about prohibitive behavior that could result in compliance issues or legal risks.
Editor’s note: Licensed real estate agents should always check with their responsible brokers for guidance, direction and policy regarding the new practice changes, and licensed real estate brokers would be wise to consult with a licensed attorney for legal clarification and support.
The opinions, suggestions or recommendations contained in this discussion are based on Summer Goralik’s experience working for, and knowledge of the laws enforced by, the California Department of Real Estate and must not be considered legal advice or relied upon as legal advice. You should consult with your brokerage, and/or appropriate legal counsel in your jurisdiction, for further clarification.
Summer Goralik is a real estate compliance consultant and former CA DRE Investigator in Huntington Beach, California. Connect with her on LinkedIn.
by Jim Dalrymple II | Sep 2, 2024 | Industry, News Feed
Nashville, Tennessee, is best known as the home of country music, but alongside its entertainment venues and Southern charm, the city also offers an abundance of opportunities. “It’s an incredible and welcoming place to live with varied economic drivers, whether that’s healthcare, technology, finance or music,” says Shawn Tate, a global real estate advisor at Zeitlin Sotheby’s International Realty — and a local resident.
Tate, who has a musical background and a master’s degree in arts, entertainment and media management, arrived in Nashville from Chicago, Illinois, nearly 30 years ago to pursue a career in the music industry. But in 2010, he shifted his goals to real estate and has been with his brokerage ever since.
Client-first approach
Tate’s transition to real estate was kickstarted by a negative home-buying experience of his own. He and his wife were looking for a home with certain features, but the realtor did not show them relevant properties. “It was frustrating,” says Tate. Once the couple finally managed to purchase a property — through another realtor — Tate decided to explore what he could bring to the industry. “I found myself in real estate school — and became the realtor that I should have had on day one,” he says.
The key to his success, he says, is simple: listening. “Before I can bring my skill set to the table, I want to make sure that I understand my client, their goals and where they’re trying to get to,” says Tate. “That’s something that did not happen in my own initial transaction.”
Tate believes that it is imperative to put your client’s needs first. “It’s not really about you. It’s all about those you serve,” he says. “Every day is a real joy because I have the opportunity to help people achieve their goals. When they win, I win.”
Crafting success
Tate’s time in the music industry gave him the techniques he needed to stand out in a saturated real estate market. “Today, every prospective buyer and seller has access to the internet. I took all the skills I used for marketing musicians and turned them around for me. Videography and photography communicate the essence of who I am as a realtor before one phone call. It’s a successful strategy.”
Once you have attracted a client, it is important to then demonstrate your knowledge of the industry. “Know your craft,” Tate advises. “Understanding the real estate profession and clearly articulating your value proposition is imperative to winning prospective buyer and seller business.”
A supportive network
After the Zeitlin brokerage became an affiliate of Sotheby’s International Realty, Tate noticed the positive impact on his business. “There are more than 1,100 Sotheby’s International Realty offices around the world. I have enjoyed building authentic relationships with my colleagues in different markets,” he says. “It has increased my referral business because the advisors I have taken the time to know trust me to serve their clients as they would.”
Tate will enhance those relationships this September when Nashville plays host to the Sotheby’s International Realty Global Networking Event (GNE). Held every 18 months, the event brings together more than 3,000 agents from around the world for expert panel sessions, prominent guest talks and peer networking. “The GNE is an investment in your business,” says Tate. “If you participate, you will grow personally and professionally. I have. We all walk away from GNE as better agents to serve clients more effectively.”
by Lindsey Harn | Aug 31, 2024 | Industry, News Feed
Do we still want to work like it’s 1999? No, that’s why agents need to ask themselves what they really want their work, life and compensation to look like moving forward, Rachael Hite 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.
Labor Day is marked by parades, barbecues, and a general sense of relief at the unofficial end of summer. However, the essence of Labor Day is rooted in the struggles of workers who fought for better working conditions, fair wages and reasonable hours.
As of late, agents have had nothing but commission on the brain, but trying to define what a “fair” wage is for the value agents provide is bittersweet in our post-settlement era, where buyer agents have to prove their worth upfront to earn a paycheck at all.
While the industry is focused on commissions and continuing to make what they made pre-Aug. 17, maybe what we should be focused on is the flexibility that real estate offers and how we can improve our whole lives due to that flexibility.
After all, there’s a good chance there’s not enough business for everyone to be a full-time agent in our New Normal. Last year, the Consumer Federation of America released a report that showed that 49 percent of agents sold one or fewer homes in 2023. And that was before the rule changes.
So if you’re anywhere near that 49 percent or your business is down double-digits like many agents, what will your life look like in the future? How can you continue to support yourself and your family while spending less time closing deals and more time enjoying your personal life?
What if we stopped looking at part-time agents as less than professional and started shifting into the mindset that being an agent part-time can be a fulfilling side hustle (or main hustle) that allows you to work less, close a higher volume of business and win at our new vision of life.
The good news is that it’s 2024, and the modern workspace looks nothing like it did in the 1900s, back in the days of picking up the keys at the listing office and printing out listing books.
These days, four-day workweeks are becoming more prevalent, and technology and effective time management can allow us to complete work as it comes in rather than sitting by the phone 24/7. Maybe these rule changes are a gift in that this shift could allow us to get out of the top-producer-or-bust mind frame (which encourages a high rate of failure) and allow us to get serious about having a realistic career that encourages more work-life balance.
As the American dream becomes harder to achieve, let’s rethink what our work-life should encompass and how we can get there with less of a hustle culture mentality.
Do agents earn enough?
Most Americans are aiming to earn enough income to be considered middle class, but this always squeezed income bracket is becoming harder to maintain as inflation continues to stifle progress and wages fail to keep up with the cost of basic necessities like food, utilities, child care, senior care and affordable housing.
In 2020, The Pew Reserach Center launched a middle class calculator, and its insights are very helpful for those who are not sure they are making “market rate” income for the job they are doing. It’s more difficult to calculate this for agents because of low inventory and over-saturation of agents in many markets.
The median age of Realtors is 55, which shows that most of the folks in the business have either been in the business for multiple years or have joined the ranks as a second or third career choice.
The median income for U.S. households is $74,580, according to U.S. Census data from 2022, the most recent data available. According to the National Association of Realtors 2024 Member Profile, the median gross income of Realtors was $55,800 in 2023.
The average agent makes less than the median income required to qualify for “middle class” in America, and one could argue that the labor involved in navigating and closing transactions calls for appropriate compensation of commissions because the work is performed without payment upfront.
Culture shifts around labor
A 9-to-5 at one employer for 30 years isn’t the only way to make a living anymore. When it comes to rethinking our work life, millennials especially have learned to embrace multiple income streams and career glow-ups.
Labeled by Gallup as the “job hopping generation,” poor economic conditions have taught millennials to be self-reliant and not to rely on corporate structures for a long-term career.
Working one job for an entire career isn’t realistic anymore. Data shows that staying at a job for long periods of time almost guarantees that you are not being paid a market rate. Forbes reports that some folks are making 50 percent less than their peers by staying at their current jobs too long.
The U.S. Labor Department reports that more Americans are working two or more jobs than ever before, and women are more likely to be working multiple jobs than men.
Younger generations are creating a culture shift with the realization that they aren’t their jobs. They’re more focused on living a good life, working less, and prioritizing self-care and downtime. According to Business Insider, millennials are willing to take a 20 percent pay cut to attain a better work-life balance.
Rethinking what work should be
The dated practice of a 40-hour workweek does not work any longer, and as our country continues to age, with 1 in 6 Americans 65 or older, it’s just not realistic. This weekend, let’s focus on honoring the evolution of work — from hard labor to flexibility.
As you sip your beverage of choice this Labor Day, take a minute to appreciate the amazing work that you’ve done and consider how you want to move forward in your life. Ask yourself how much labor is enough and where you will draw the line between hustling and home life. Perhaps taking a step back and rethinking your workweek is one of the major opportunities that will spring up from these challenging times of change.
Rachael Hite is a business development specialist, fair housing advocate, copy editor, and former agent. Rachael is currently perfecting her long game selling forever homes in a retirement community in Northern Virginia. You can connect with her about life, marketing and business on Instagram.
by Drew Thompson | Aug 30, 2024 | Industry, News Feed
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
Looking for a quick catch-up on the buzziest stories of the week? Here’s Inman Top 5, the most essential stories, according to Inman readers.
And don’t miss The Download, our weekly column that breaks down one of the top stories of the week and equips you with what you’ll need to meet next Monday head-on.
Nagel Photography / Shutterstock.com
Eight Realtors are seeking class action status in their lawsuit against Realtor.com for allegedly selling unvetted and fraudulent buyer and seller leads. This is the third lawsuit against Realtor.com and parent company Move over its lead gen business.
In a new report, University of Buffalo contracts law professor Tanya Monestier details ways in which contracts allow buyer agents to collect more compensation than agreed-to with the buyer.
Photo by Andrew Harnik/Getty Images
“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” Attorney General Merrick Garland said on Friday.
Trainer Rachael Hite breaks down the latest viral TikTok trend and gives guidance on whether real estate agents should hop on the bandwagon.
With confusion around the new commission rules, compliance expert Summer Goralik unpacks whether listing agents should verify signed buyer-broker agreements before showing a property.
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