by Molly McKinley | Aug 7, 2024 | Industry, News Feed
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After almost five years back at the helm of the company he co-founded, Zillow Group CEO Rich Barton is passing the baton to Chief Operating Officer Jeremy Wacksman effective immediately. Barton stepped down once before, with co-founder Spencer Rascoff taking the reins from 2010 to 2019, while Barton focused on his duties as the executive chairman of Zillow Group. Barton returned as Zillow Group’s CEO in 2019.
Rich Barton
“Zillow’s business is firing on all cylinders and performing well through a challenging real estate macro,” Barton said in a prepared statement. “We’ve built and integrated products, completed strategic acquisitions, enhanced our agent partner network, and leaned in hard on our Mortgages and Rentals businesses.”
“This is due in no small part to the leadership of Jeremy Wacksman, with the past three years being a time of particularly impressive innovation for the company,” he added. “Lloyd [Frink, Zillow Group’s executive chair] and I could not be more confident in Jeremy as CEO, in the caliber of the broader team and in Zillow’s bright future.”
Wacksman joined Zillow in 2009 as the vice president of marketing and product management, a role that drew on his prior seven years of brand and product management experience with Trilogy Software, Procter & Gamble and Microsoft Xbox.
From there, Wacksman was promoted to chief marketing officer in 2015 and then president of the Zillow brand in 2018. Wacksman was promoted again in 2021 to chief operating officer.
“With the strength of Zillow’s brand, our highly engaged audience and a steadily growing business portfolio, we are in a great position to capture meaningful transaction share for years to come,” Wacksman said of his latest appointment. “The work we’re doing to bring the integrated transaction to life through exceptional tech solutions for consumers and agents will transform residential real estate.
“I love this company and its mission, and I am honored to lead our extraordinary team into the next phase of Zillow’s growth,” he added.
Wacksman’s journey has been a winding road.
Jeremy Wacksman | Credit: LinkedIn
As the VP of marketing and product management, he oversaw the growth of Zillow’s mobile apps, and as CMO, he helped solidify the company’s place as a real estate and pop culture icon, with Zillow becoming synonymous with the home search process in the U.S. As president, he oversaw the 2018 rollout of Zillow Offers, the portal’s now-defunct iBuying business.
As COO, he began focusing on making the homebuying process “one-click nirvana” by strengthening the connective threads among the company’s key segments — Premier Agent, Zillow Rentals, Zillow Offers, dotloop, and Zillow Home Loans. Barton said he had “full confidence” in Wacksman’s ability to deliver a more cohesive consumer experience amid an intensifying industrywide quest to create the ultimate all-in-one transaction flow.
“You’ve heard us talk a lot about wanting to create this more seamless experience for customers; we’ve called that [Real Estate 2.0],” Wacksman told Inman shortly after becoming COO. “[Our segments] have all grown really well, and they’ve started to talk to each other, but they’ve all grown relatively independently because they are fast-growing new things. What we’re finding is, as customers discover these services, they want that one-click nirvana.”
COVID-induced market fluctuations threw a wrench into Zillow and Wacksman’s plans in November 2021 with the closure of Zillow Offers. The demise of Zillow Offers didn’t keep the company down for long, with Wacksman and fellow members of the leadership team turning their attention to the maturation of Zillow’s Super App, teaming with rivals Redfin and Realtor.com on syndicating 3D home tours and rental listings and throwing Zillow’s hat back into the iBuying ring through a partnership with Opendoor.
The company also focused on making a series of savvy acquisitions, including the late 2021 purchase of agent favorite ShowingTime+ and the 2023 purchases of Follow Up Boss and Aryeo. ShowingTime+, in particular, has become the backbone of Zillow’s push to strengthen its value proposition to listing and buyer’s agents, respectively, as the industry barrels toward several landmark changes to commissions and heated competition from CoStar-owned portal Homes.com and its “Your Listing, Your Lead” model.
“Zillow is the leading product innovator in residential real estate, with features such as Real Time Touring, Listing Showcase, and Zillow Home Loans pre-qualified buyers,” Wacksman said in a first-quarter shareholders letter. “We believe that agents who work with our high-intent customers and use our industry software tools are best positioned to accelerate their share in any version of an industry evolution from here.”
“Orienting our business around the best agent teams — those who provide superior customer experiences, have a proven ability to scale, and make the most money to invest alongside us — positions us well for potential shifts within the profession,” he added.
At Inman Connect Las Vegas last week, Barton laid the groundwork for Wacksman’s time at the helm with his prescient keynote about the next iteration of the portal experience. That experience, he said, will focus on bringing order to a chaotic “multi-party, multi-partner, multistage” transaction process by investing in technology, partnering with competitors, and staying in tune with what consumers and agents need to make homebuying as easy as purchasing a latte.
“You all may not know this, but less than half of our company’s revenue now comes from buyers agents, lead generation or original business model,” he said. “Our growth and opportunity as a company now comes from investing in this array of digital workflow, tools and technologies for the industry as a whole.”
“We did not build, invest in and integrate these products to keep them inside the walled garden,” he added. “We did it to make them broadly available and to power your businesses.”
Although he’s no longer CEO, Barton will remain on the Zillow Group Board of Directors and will serve as co-executive chair alongside Zillow co-founder and current executive chair Lloyd Frink. Wacksman will also receive a place on the Board.
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by Christian Ashley Harris | Aug 7, 2024 | Industry, News Feed
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Zillow Group’s momentum continued into the second quarter, as the Seattle-based residential portal’s revenue grew 13 percent year over year to $572 million — a performance that put Zillow 7 percent ahead of the midpoint of its outlook range ($533 million).
Zillow’s mortgage segment led the way in terms of percentage growth, with a 125 percent year-over-year increase in purchase loan origination volume pushing the vertical’s overall revenue up 42 percent year over year to $34 million. The company’s rental segment also logged double-digit growth, as a 44 percent jump in multifamily revenue pushed overall revenues up 29 percent year over year to $117 million.
Although the company’s residential revenue still lagged behind the rental and mortgage segments in terms of percentage growth (+8 percent), the segment — which includes Premier Agent, ShowingTime+ and Follow Up Boss — accounted for the lion’s share of Zillow’s success during the quarter with revenues reaching $409 million.
Zillow improved its net losses, dropping from $35 million in Q2 2023 to $17 million. The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased roughly 20 percent year over year to $134 million thanks to higher-than-expected residential segment revenue.
Jeremy Wacksman | Credit: LinkedIn
In his first statement as Zillow Group CEO, Jeremy Wacksman said the company’s performance reflects the Zillow team’s dedication to creating the “digital future of real estate.”
“Zillow outperformed the residential real estate industry for the eighth consecutive quarter, delivering better-than-expected revenue across the business,” he said in a written statement. “We’re executing well, continually shipping exceptional products and services in Zillow’s housing super app as we build the digital future of real estate.”
“With an increasingly diversified and growing business, we are on our way to deliver strong GAAP profitability over time and meet our 2024 expectations to deliver double-digit revenue growth and modestly expand our Adjusted EBITDA margin,” he added. “We are well positioned to capture more of our total addressable market and help more people get home.”
In a shareholders’ letter, Zillow co-founder and former CEO Rich Barton laid out his hopes for the company’s next chapter as it leans into a new era of opportunities and challenges, including the fallout from the National Association of Realtors buyer-broker commission settlement terms and an ever-intensifying portal war.
“The Zillow business is in great shape financially, strategically, operationally and organizationally, consistently outperforming the residential real estate industry,” Barton said. “We are executing well and methodically shipping great software and services in the Zillow housing super app that aim to digitize and integrate home buying, selling, financing, and renting, empowering consumers and partners alike.”
“Jeremy is right and ready to be CEO of Zillow now, and I’m excited to support him as he leads us through our next chapter of building the digital future of real estate,” he added.
The company said its growth strategy continues to yield strong results as it expands its digitally integrated transaction experience to additional Zillow Enhanced Markets (i.e. markets with access to integrated financing, hand-picked partners, Real-Time Touring, etc.). At the end of Q2, Zillow had 19 Enhanced Markets, with the goal of reaching 36 by the end of August and 40 by the end of 2024.
Much like the previous quarter’s shareholder letter, Real-Time Touring and Zillow Showcase were the stars of the show as the portal behemoth shores up its value proposition to buy- and sell-side agents. Premier partners who connected with homebuyers through Real-Time Touring experienced conversions three times higher than average, with homebuyers embracing the introduction of short-term touring agreements.
The agreements are good for seven days and enable buyers’ agents and consumers to comply with upcoming changes to commission procedures, including the requirement that buyers’ brokers sign representation agreements with buyers before taking them on a home tour.
“The early indicators of success we saw in our pilot gave us the confidence to integrate it into Zillow’s touring experience, and just last week, the agreement became part of the “request a tour” flow on Zillow for nearly 80 percent of our tour connections,” the letter read. “We plan to roll it out to remaining tour connections in the coming months.”
On the sell side, Zillow said Showcase is driving higher views, shares and saves than similar non-Showcase listings on the site, enabling agents who use Showcase to win more listings and sell those listings for an average premium of $9,000. One percent of all new listings now use Showcase, with Zillow nearing its Showcase listing coverage goal.
“We are on our way to our goal of 5 percent to 10 percent listing coverage, which represents a $150 million — $300 million annual revenue opportunity,” the letter read. “And we believe there is potential for future growth beyond that.”
Wacksman said the company’s strides with Real-Time Touring, Listing Showcase, and developments in its rental and mortgage segments show Zillow is well on its way to delivering a completely integrated “super app experience,” as traffic to the portal’s mobile and app sites reaches 231 million average monthly unique visitors per year. Although 231 million visitors represent flat traffic growth, total visits during the quarter grew 4 percent year over year to 2.5 billion.
“As you’ll remember from previous calls, and our February investor presentation, about 80 percent of our users come to us organically, and they’re using our app three times more than anyone else in the category,” he said in a Wednesday evening earnings call. “Another way to measure traffic and brand strength is through ComScore, which is widely viewed among internet brands as a reliable, transparent, third-party source because it aims to capture the number of unique visitors while de-duping cookies.”
“According to ComScore, Zillow groups apps and sites [were] at 116 million average monthly unique visitors in Q2,” he added. “We’re pleased with the progress we’re making to transform and digitize the moving experience on behalf of buyers, sellers, renters, agents, and the broader industry.”
Wacksman said Zillow and its partner agents are well-positioned to navigate upcoming changes — the largest of which is the Aug. 17 deadline for removing offers of compensation to buyer’s agents in Realtor-affiliated multiple listing services and requiring that buyers’ brokers sign representation agreements with buyers before taking them on a home tour.
“Our Premier Agent partners represent some of the best, most professional agents in real estate, who we believe are poised to take share in the evolution the industry is experiencing,” he said. “We’ve oriented Premier Agent around some of the best agent teams … The top 20 percent of agent teams handle 80 percent of transactions, and nearly four in five Zillow premier agent partners are in that top tier.”
Wacksman declined to predict how commissions may change after the deadline; however, he said Zillow and its partner agents have delivered a consistent performance throughout multiple market shifts — a trend he doesn’t expect to change.
“We believe we and our partners are the outsized beneficiaries of these changes coming in the industry. We have the most customers. We work with the best partners,” he said. “We provide the most technology, and we expect our Premier Agents will deliver and get paid because they provide great service.”
“So that’s how we’re seeing it,” he added. “That’s been very consistent for a while now, and nothing has really changed our minds on that based on the latest things that we can see.”
Zillow’s stock (NASDAQ: Z) experienced a post-earnings pop, increasing 12.52 percent to $47.00 per share. The company’s market cap stands at $3.47 billion.
Note: This story has been updated with commentary from Zillow’s earnings call.
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by Matt Carter | Aug 7, 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.
Would-be homebuyers grew even more frustrated with elevated home prices and mortgage rates in July, but most didn’t see last week’s big drop in mortgage rates coming, according to a monthly survey of consumers by mortgage giant Fannie Mae.
Fannie Mae’s Home Purchase Sentiment Index (HPSI), which had been climbing back from an all-time low of 56.7 registered in October 2022, fell 1.1 points in July to 71.5.
The HPSI distills six questions from Fannie Mae’s monthly National Housing Survey into a single number, and four of those questions showed consumer sentiment worsening in July: buying conditions, selling conditions, home price outlook and job loss concern.
More than eight in 10 household financial decision makers surveyed by Fannie Mae in July said it was a bad time to buy — a share that’s remained consistent since January 2023, Fannie Mae Chief Economist Doug Duncan said in a statement.
Doug Duncan
Those who said it was a bad time to buy “continue to point to elevated prices and mortgage rates as the primary reasons for that belief,” Duncan said. “Meanwhile, there seems to be little expectation among the general population that homebuying conditions will improve in the near future: More consumers than not see home prices rising further; and slightly more consumers think mortgage rates will increase, rather than decrease, over the next 12 months.”
The two HPSI components that improved from June to July were mortgage rate outlook and change in household income.
Although the percentage of respondents who expected mortgage rates to ease in the next 12 months increased from 24 percent in June to 29 percent in July, most would-be homebuyers did not see last week’s big drop in rates coming.
Seven in 10 of the 1,055 household financial decision makers surveyed in July (69 percent) thought mortgage rates would either stay the same (38 percent) or go up (31 percent).
In fact, rates on 30-year fixed-rate conforming mortgages hit their 2024 peak of 7.27 percent on April 25, and have been coming down gradually ever since, according to rate lock data tracked by Optimal Blue.
The latest National Housing Survey was conducted between July 1, 2024, and July 19, 2024. During that period, rates on 30-year fixed-rate conforming mortgages averaged 6.84 percent, falling from 7 percent on July 1 to 6.78 percent on July 19, according to Optimal Blue
Last week’s release of two surprisingly weak jobs reports accelerated the decline in mortgage rates, with investors who fund most mortgages now convinced the Federal Reserve will bring short-term interest rates down more quickly this year than previously anticipated.
Rates on 30-year fixed-rate loans hit a new 2024 low of 6.40 percent on Monday, meaning rates have come down by more than half a percentage point since Fannie Mae fielded the latest National Housing Survey.
While mortgage rates have come down, Americans think it’s harder to get a mortgage than it was three years ago, when rates were at historic lows.
Although the question is not factored into the HPSI, 58 percent of those surveyed in July said they thought it would be difficult to get a mortgage, up from 54 percent in June and 37 percent in 2021.
Only 42 percent said it would be easy to get a mortgage in July, down from 46 percent in June and 60 percent in 2021.
While lending has tightened since 2021, mortgage credit availability increased in June for the sixth consecutive month, according to the Mortgage Bankers Association’s most recent Mortgage Credit Availability Index (MCAI).
But the increase in the MCAI was due largely to lenders expanding their offerings of cash-out refinance loan programs, and the index is still hovering near 2012 lows, the MBA said.
As seems to be the case with mortgage rates, many Americans who expect home prices to keep rising may be behind the curve of recent events.
Fannie Mae and MBA economists predict that national home price appreciation will fall to about 3 percent annually by the fourth quarter of next year, which is less than half the current rate. Many local markets could see price declines, as has already been the case in some Sunbelt metros where supply exceeds demand.
But most of those surveyed by Fannie Mae in July (78 percent) think home prices will either go up (41 percent) over the next 12 months or stay the same (37 percent).
While only 21 percent of those surveyed in July expected home prices to fall in the year ahead, that’s up from 17 percent in June. With the percentage of respondents who expect home prices to rise also falling 4 percentage points from June to July, the net share of those who say home prices will go up in the year ahead decreased 7 percentage points from June to July.
Perceptions that mortgage rates and home prices are too high meant 82 percent of those surveyed by Fannie Mae in July said it was a bad time to buy, up from 81 percent in June. With the percentage saying it was a good time to buy falling from 19 percent in June to 17 percent in July, the net share of those who said it was a good time to buy decreased by one percentage point from June to July.
While close to two-thirds (64 percent) of those surveyed said they would buy rather than rent if they were going to move, that’s down from 68 percent in April and 71 percent a year ago.
Duncan said that’s a trend that bears watching.
“The share of respondents who say they would rent, rather than buy, on their next move has been trending slowly upward of late,” Duncan said. “Right now, it’s difficult to tell if this reflects simple buyer fatigue or a greater sense of disenchantment with the market, but we think it could have important implications should the trend continue.”
Duncan pointed to another recent Fannie Mae survey that found 92 percent of consumers said owning a home is important, but many are overestimating minimum down payment and credit score underwriting requirements.
Nine out of 10 consumers overstated or didn’t know the minimum down payment required for most mortgages, and many were also confused about underwriting criteria like minimum credit scores and maximum debt-to-income ratios, Fannie Mae’s Mortgage Understanding Study found.
While July might have been a bad time to buy, most Americans (65 percent) agreed it was a good time to sell — although the net percentage who said it was a good time to sell dropped 2 percentage points from June to July.
One explanation could be that inventories are swelling in some markets as would-be homebuyers balk at asking prices and homes spend more days on market.
Almost two-thirds (64.7 percent) of homes for sale in June had been listed for at least 30 days without going under contract, with the share of “stale” listings up in 44 out of the 50 most populous U.S. metros, Redfin reported last month.
Speaking at Inman Connect Las Vegas last week, Zillow Senior Economist Orphe Divounguy said it will be up to agents to bring sellers back down to Earth, if they have unrealistic expectations about what prices the market will bear.
“While we’re seeing signs that affordability may be improving in certain parts of the country as supply slowly comes online, household incomes remain stretched relative to would-be mortgage or rent payments, and our latest survey once again reflects real consumer frustration with the housing market,” Duncan said.
The HPSI is up 4.7 points compared to the same time last year. While the index has a long way to go to get back to pre-pandemic levels, it’s only dipped below 70 once this year — in May, when it hit 69.4.
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by Makenzie Green | Aug 7, 2024 | Industry, News Feed
Households have deferred moving, partially due to high “hidden” homeownership costs such as property taxes, insurance and climate change, according to a report.
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Higher “hidden” homeownership costs have brought a halt to many buyers’ plans to move out of their current neighborhoods, according to a report released last week by Bank of America.
Households have deferred moving not just because of high home prices and interest rates, but partially due to high “hidden” homeownership costs such as property taxes, insurance and the economic impacts of climate change.
Gen Zers and lower-income families, however, are bucking the trend in search of affordable housing.
Data suggests that Gen Zers make up 13 percent of those moving to another city, up from 8 percent in June 2020, while households earning less than $50,000 annually make up 18 percent of this group, up from 12 percent in 2020.
Analysts attribute the rise in inter-city relocation for these groups to “moving more out of necessity” as costs of homeownership in some areas, along with declining housing affordability, leave homeowners “with less disposable income to fund a move.”
According to Census Bureau data, the homeownership rate is 35 percent for 25- to 30-year-olds compared to 66 percent across all ages, and metropolitan statistical areas (MSAs) with relatively affordable rent have seen the fastest population growth in the second quarter of 2024.
‘Hidden’ costs can be quantified by evaluating mortgage payment growth for non-movers
According to the Federal Reserve Bank of St. Louis, it is estimated that 92 percent of all mortgages in the U.S. are fixed-rate loans. Non-movers are unlikely to have seen a change in base mortgage (interest and principal repayments) over the last year.
On the other hand, they are likely paying more to live in their home as a result of rising property taxes and insurance premiums, which are often tied to mortgage payments.
According to Bank of America data, non-movers have seen positive median mortgage payment growth YoY for the past three years, sitting at 3 percent YoY, compared to 5 percent YoY across all customers, including movers.
Populations significantly declined in northern and western MSAs in the second quarter of the year, a pattern that has remained consistent since the COVID-19 pandemic.
In the Northeast, New York and Boston saw large net population outflows while in the West, San Francisco, Los Angeles, Seattle and Portland, Oregon, saw significant YoY declines.
The South shows a mixed trend with Austin, Texas; San Antonio; and Tampa, Florida, seeing large inflows, while Miami, Orlando, Florida; and Washington, D.C. have seen declines in population. In the Midwest, Columbus, Ohio, has consistently seen large gains.
‘Hidden’ costs associated with climate change can be quantified by comparing household location with utility payments
A recent Treasury Department report stated that over half of U.S. counties face heightened exposure to climate hazard, whether it’s flooding, wildfire or extreme heat. As climate conditions change, households face financial strain.
For example, households exposed to heat waves are more likely to utilize air conditioning, which could increase energy consumption and utility payments. A recent Residential Energy Consumption survey indicated that 88 percent of U.S. households currently use air conditioning.
In March, the average utility payment per customer was nearly $300, a 23 percent increase since 2019 on a three-month rolling basis.
Lower-income customers and customers in the Northeast and West have been feeling the financial pressure, with average utility payments that were 38 percent higher in March than the 2019 average. For the two-week period ending March 21, 2024, 38 percent of households with incomes lower than $50,000 were unable to pay their energy bill or were unable to pay the full amount at least once over the last year.
The Northeast and the West have experienced the highest average urban price of electricity, resulting in the fastest growth in average utility payments since 2022.
In the second quarter of 2024, moves from one MSA to another fell 4 percent year-over-year (YoY) following a 15 percent YoY decrease in Q2 2023. This is a significant change from the second quarter measurement in June 2021, when pandemic-era relocations yielded a 32 percent YoY increase as more employees worked from home and further from their offices.
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by Inman Content Studio | Aug 7, 2024 | Industry, News Feed
Choose not to be offended. Have conflict resolution strategies in place. Stay calm, acknowledge the difference in opinions, and move on to other topics, Keller Williams’ Julia Lashay Israel writes.
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.
For real estate agents, discussing politics with clients can be a delicate matter. Navigating political discussions with clients requires tact, respect and professionalism. By following these guidelines, you can maintain positive client relationships while avoiding potential pitfalls associated with political conversations.
Here are some key points to consider:
1. Know your audience
Some clients enjoy and want to engage in political discussions, while others may prefer to avoid them entirely. If a client brings up politics, listen respectfully. Recognize that clients come from diverse backgrounds and may have differing political views.
If their opinions differ from yours, come from curiosity and actively listen to the client’s views without immediately responding with your own opinions. If you initiate the conversation, pay attention to verbal and non-verbal cues to assess if the client is comfortable with the topic.
Consider the nature of your relationship with the client. Long-standing relationships might have more leeway, while newer or more formal relationships may require greater caution.
2. Focus on the business relationship
Engaging in political conversations could be risky. Establishing trust is crucial in real estate. Political discussions can be polarizing and may undermine the trust you’ve built. It’s often best to focus on building relationships through shared interests and goals rather than political affiliations. Emphasize non-political topics that are relevant to your relationship or work together.
Be sure to keep the client’s priorities at the forefront. Concentrate on helping them achieve their real estate goals, whether buying, selling or investing and keep conversations focused on the client’s needs, property details, market conditions and other real estate-related topics.
3. Consider relevance to real estate
Ensure that any political discussion is relevant to the client’s interests or the nature of your professional relationship. For instance, discussing policy changes that directly impact the client’s buying or selling decisions could be appropriate.
When discussing policies that directly impact real estate (property taxes, zoning laws, housing regulations), stick to the facts and discuss broader economic factors (interest rates, market trends) in a neutral manner. Provide insights on how these policies might affect the market. Provide objective, fact-based information relevant to the real estate market without injecting personal political opinions.
4. Lead with respect and professionalism
Always be respectful and professional. Show respect for differing opinions. Acknowledge the client’s perspective, even if you don’t agree. Avoid contentious debates or making derogatory comments about any political figures or parties.
Be aware of your company’s policies regarding political discussions. Many real estate firms have guidelines to ensure agents maintain a neutral and professional demeanor.
5. Avoid controversy
Expressing strong opinions can lead to discomfort or conflict. Set clear boundaries for what topics are appropriate. Avoid discussing highly controversial or polarizing political topics that could create tension. If you choose to discuss politics, it’s generally best to maintain a neutral stance to avoid alienating or offending your client, especially if you’re unsure if the client may have differing views.
Be prepared to agree to disagree. Not every conversation needs a resolution, and maintaining a professional relationship is more important. If a disagreement arises, choose not to be offended and have strategies in place for conflict resolution. Stay calm, acknowledge the difference in opinions, and move on to other topics.
If the conversation starts to become too intense or uncomfortable, politely redirect the conversation to a more neutral topic, such as shared interests or business-related matters.
For example, “I appreciate your perspective. Let’s focus on finding the perfect home for you.”
For real estate agents, discussing politics with clients should be approached with caution and professionalism. Keeping conversations focused on real estate, maintaining neutrality and respecting client boundaries can help preserve and strengthen client relationships.
Your primary goal should always be to serve the client’s real estate needs and ensure a positive and successful transaction experience. By keeping these points in mind, you can navigate political discussions with clients in a way that maintains professionalism and respect.
As the head of inclusion and belonging for Keller Williams Realty International, Julia Lashay Israel advises, trains and coaches leaders, team members and agents to recognize and address diversity, equity and inclusion opportunities and challenges across the organization.
by Jeff Tucker | Aug 6, 2024 | Industry, News Feed
RentSpree’s latest reporting product is designed to help property management providers more accurately verify the income of lease applicants.
Innovation is in our DNA at Inman — that’s why we’re excited about August’s Technology and Innovation Month. We’ll kick it off by celebrating the companies and individuals pushing the industry forward with an expanded slate of Inman Innovator Awards at Inman Connect Las Vegas. Then, we’ll continue to celebrate the brightest minds in real estate all month long.
RentSpree’s latest reporting product is designed to help property management providers more accurately verify the income of lease applicants, Inman has learned in an exclusive press release.
The fintech feature, the result of an integration with Finicity, a Mastercard company, links to the individual’s bank account to record transactions over the last 12 to 24 months to pull data directly from the source, a practice that’s been manual, paper-based and dependent on credit agencies since its inception. Applicants often scan or provide actual copies of paystubs and rely on reference phone calls to employers.
“Finicity provides a one-time encrypted connection during which an applicant is prompted to log into their bank account, thereby generating a detailed financial report,” the release stated.
RentSpree provides automation solutions for all stakeholders of the rental industry, including residential sales agents, which it delivers largely through partnerships with multiple listing services. It processes payments, flattens tenant screening, empowers marketing and automates the application process, among other features.
RentSpree co-founder and CEO Michael Lucarelli, fresh from appearing on panels at Inman Connect Las Vegas, said his company’s reporting tools are critical time savers, and this one particular soothes a searing pain point for leasing agents.
“This feature facilitates the rapid verification of an applicant’s income based on actual transactions, providing clear evidence of their capacity to afford the monthly rent,” he said. “It’s extremely challenging to accurately assess the income of rental property applicants.”
Fraud is not uncommon in the income verification process and can lead to an inability to collect lost rent or pursue tenants for damage.
Lucarelli has been putting his company in front of multiple listing services for several years to encourage sales agents to reconsider how they view the rental community. Renters become buyer leads, he often says, and it’s not uncommon for agents to work as property managers or alongside multi-family investors.
RentSpree added tenant credit building to its repertoire earlier in 2024, allowing users to report on-time payments to credit bureau TransUnion.
The need for apartments to rent remains critical to housing Americans. CBRE, a global commercial real estate company, expects vacancy rates to remain healthy in 2024 and into 2025, and stated that “enough demand should keep the average occupancy rate above 94 percent,” the company predicted.
“Multifamily real estate is playing a more important role in alleviating a severe shortage (at least 3.1 million) of single-family homes that is contributing to homeownership challenges, particularly in a high-interest-rate environment. The premium for an average monthly mortgage payment of a newly purchased home vs. average monthly rent is expected to remain above 35 percent in 2024 versus 52 percent in 2023,” CBRE said.
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