by Lauren Fox | Jul 30, 2024 | Industry, News Feed
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Nile Lundgren
How can agents show off their unique value proposition? One way is by bringing a scale model of the development they’re representing everywhere they go, Nile Lundgren of SERHANT. showed Inman Connect Las Vegas attendees on Tuesday.
During a panel that included moderator Katie Kossev of Side and luxury agents Michelle Griffith of Douglas Elliman and Ben Belack of The Agency, Lundgren toted to the stage a model of the Mercedes Benz Places in Miami, a 791-unit development that SERHANT. is currently representing.
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“This is how you stand out from the crowd,” Lundgren said. “Because when we make bids for pitches, we make bold statements.”
Of course, every agent is different, and such “bold” tactics for differentiation won’t work for everyone. Griffith, for instance, said that she instead prefers to focus on her own calling cards, which include her social media, company profile and website. She constantly reevaluates these assets to ensure they’re making a current and accurate reflection of her business.
“I want to make sure that’s always up to date and projecting my brand,” Griffith said.
For his part, Belack thought it important that an agent be able to intelligently and succinctly articulate their value proposition to a potential client.
Ben Belack | The Agency
“I pretty much say the same thing, which is, the job of the real estate agent has changed,” Belack said. “We’ve had to become master marketers and master advertisers … It is my job to emotionally captivate buyers at first contact.” He explained that because buyers are so captivated by swiping for homes on Trulia and Zillow today “at the same cadence” that they’re swiping for potential partners on dating apps, it’s important that agents be able to grab their attention.
One way he does that is by showing potential clients how many views his marketing videos receive on social media, which is more effective than just saying something general about how good his or his firm’s marketing is.
Lundgren added that to stand out among the 80,000-plus agents he’s competing against in Manhattan, he makes those “bold moves” like jumping into a pool with a suit on during a marketing video. But he has also worked hard to develop consistency in his marketing over time and has worked to simplify his communication so that it’s easily understood by potential clients.
“At the end of the day, sales is nothing more than a transfer of excitement,” he added.
Michelle Griffith | Douglas Elliman
Griffith added that authenticity is also an important part of the equation.
“I’m loving all of this and how they stand out,” she said. “So much of this is what’s authentic to Nile, what’s authentic to Ben, and what’s authentic to myself.”
In addition to customizing her marketing, Griffith said that listening is another big component of her value proposition.
“A big point is listening,” she said. “Sometimes we go into these pitches and want to show everything we can do, and that’s great. But we have to be listening.”
It’s also good for agents to realize that they don’t have to be the agent that appeals to all people.
“I know I’m not for everyone and I’m OK with that,” Belack said. “I think if I were advertising to everyone, I would have no one.”
Lundgren agreed, saying, “I think you have to understand who you are. It’s very important for everyone in this room to determine what it is exactly that you’re good at. When I started in the business, I didn’t know anything. But I did know one thing: I was in the city that never sleeps, and I would be the broker that never sleeps.”
Katie Kossev | Side
At that point in the discussion, Lundgren paused, marveling at the smoke in the room, which it turned out, was just part of the staging and special effects.
“There’s a lot of smoke here,” Lundgren mused, wanting to be sure nothing had caught fire.
“I was like, ‘Am I high?’” Belack admitted to thinking.
“No, you’re not high, Ben. It’s just Vegas,” Kossev said.
Returning to the topic of discussion, Griffith noted that a great way for newer agents to get in front of clients is to just start with a small focus area that can be refined.
“[With] a lot of the new agents I’m mentoring, I say, start in your neighborhood, where you’re comfortable,” Griffith said. “What is your wheelhouse?
“You can become an ambassador of this one small area, and your passion [will] translate,” she added.
Belack added that agents really need to put in the work to succeed, which means aiming for a diversified lead flow and making it happen by scheduling dedicated time to make calls every day.
“You’ve got to spend an hour a day prospecting, you’ve got to spend one hour following up, and you’ve got to spend one hour talking to your SOI,” on a daily basis, Belack said.
“I’m human, though,” Belack added. “I don’t always hit my numbers … But because there’s a plan in place, internally, when it’s 4 o’clock every day, I’m like, I’m going to pick up the phone.”
In closing, Lundgren showed off his model one more time, while encouraging agents to be authentic, be good listeners and keep consistent.
“Be authentic to who you are,” Lundgren said. “Lean into that, clearly communicate it, be an active listener and the sky’s the limit.
“If we’re able to stay consistent over the long term, eventually you’ll get that 1-million-view listing video,” he added.
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by Jessica Souza | Jul 30, 2024 | Industry, News Feed
With the help of a firm employing more than 100 undercover researchers, the real estate tech strategist tested agents at roughly 30 brokerages. They found that more than 1 in 3 inquiries never received a response from the agent.
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A nationwide “secret shopper” operation of undercover researchers found that nearly half of potential leads from online forms and open houses were slipping through agents’ fingers due to low human response rates and inconsistent followup efforts.
Real estate tech strategist Mike DelPrete — who conducted the study with the help of a firm that specializes in these “secret shopper” efforts — revealed on Tuesday that 47 percent of inquiries made through the online form on agent websites never received a human response, and 42 percent of open-house attendees were never asked for contact information by the listing agent.
Sometimes the researcher posing as a client did receive a response, but it was automated. After accounting for these, more than 1 in 3 online form inquiries never received any kind of response at all from the agent they reached out to, DelPrete said.
“Now, in a period of time when everybody’s worried about justifying their commission, what if I showed this to the homeowner that the agent was representing?” DelPrete asked an audience of real estate professionals at the Inman Connect conference in Las Vegas. “That would, in effect, be like the agent saying to the homeowner, who they’re paying to sell their home, ’42 percent of the time, I’m not going to do my job.’”
And it got worse from there, DelPrete said.
“When the contact information was given, still there wasn’t a followup,” DelPrete said. “At the end of the day, 62 percent of shoppers had no follow-up.”
Even the agents who did respond to potential client inquiries were slow on the draw, DelPrete said. The typical response came more than eight hours after the secret shopper reached out to the agent on average.
The study employed more than 100 secret shoppers and reached out to agents at 30 brokerages. DelPrete’s biggest takeaway? Consumers received remarkably inconsistent treatment, he said. Some agents were great about responding promptly and providing helpful service. Others ignored requests for information altogether — to the potential detriment to their business.
DelPrete argued that agents spend too much time worrying about things outside their control — such as changes to commission practices or the effect of higher interest rates on home sales — and ignoring things within their control that could have a meaningful impact on their businesses.
“If someone calls, call them back,” DelPrete told conference attendees. “No. 2, if somebody texts or emails you, write them back. And third, build a meaningful relationship.”
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by Latham Jenkins | Jul 30, 2024 | Industry, News Feed
Andy Florance suggested rival portals are more interested in selling leads than houses and called a lawsuit against his company a “PR stunt.”
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Perennial portal warrior Andy Florance, who leads Homes.com parent CoStar, said Tuesday that his company’s differentiator is an interest in getting homes sold — and added later that a high-profile lawsuit against his firm is a “PR stunt.”
The comments came during Florance’s appearance on the main stage of Inman Connect Las Vegas — a platform that Florance has used multiple times in the past to call out rival portals such as Zillow and Realtor.com. Florance’s comments this time were less explicitly pugnacious, but in response to questioning from moderator Brad Inman, he did say that “what we’re focused on is selling the house.”
Florance drew a contrast between that approach and other portals, which he said are focused on selling leads, not homes. He compared the situation to old classified ads in newspapers, arguing that companies such as Zillow made every “ad” — in this case, a home listing — the same size, and then included a phone number for an agent who doesn’t hold the listing itself.
Homes.com, on the other hand, can put agents’ listings “front and center” and give agents tools “so they could demonstrate to the seller that they’re adding more value,” Florance said. He added that agents who use Homes.com “are getting 50 percent more listings,” which translates to “about $100,000 a year.”
The comments were a reference to CoStar’s “your listing, your lead” strategy, which aims to funnel consumers to the agents who hold listings, rather than agents who pay a portal for lead generation.
Brad Inman, left, and Andy Florance at Inman Connect Las Vegas on Tuesday. Credit: AJ Canaria Creative Services
Florance also weighed in during the session on a legal battle between his company and Realtor.com parent Move, Inc. The battle began earlier this month when Move sued CoStar for theft of trade secrets. At issue is an editor who previously worked for Realtor.com but later took a job at CoStar. That editor, James Kaminsky, spoke out just days ago to say he is innocent.
While on stage, Florance described Kaminsky as a “poor guy” with two special needs kids, who didn’t have a non-compete and is not running Homes.com.
“I frankly think it’s just a PR stunt,” Florance said of the lawsuit. “We have paid for his counsel, and we have put him on leave indefinitely. We’re not going to let him be the fall guy for this.”
At another point in the session, Florance also discussed CoStar’s recent marketing campaign, which has involved paying for ads during high-profile events such as the Super Bowl and the Olympics. The ads are designed to raise the profile of Homes.com, though Florance’s rivals have expressed skepticism of the campaign’s efficacy. Florance, however, pushed back Tuesday, saying that the ads have increased consumers’ unaided awareness of the brand and that they have resulted in billions of impressions.
Florance ultimately concluded his remarks by offering advice to entrepreneurs in the audience, suggesting that the key to success is perseverance.
“The folks who stick with it beyond a certain point,” he said, “just begin to learn how to surf.”
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by Leah Curtis | Jul 30, 2024 | Industry, News Feed
FHA premium cuts spur growth, but borrowers with stellar credit can still do better taking out conventional Fannie Mae- or Freddie Mac-eligible mortgages with private mortgage insurance.
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Although they helped nearly 800,000 Americans buy a home in 2023, private mortgage insurers lost market share to FHA and VA programs last year — a trend that continued into the first quarter of 2024.
In the wake of the 2007-09 housing crash and Great Recession, FHA or VA loans were often the best bet for many homebuyers who hadn’t saved up much for a down payment.
But private mortgage insurers — who provide a backup to lenders that’s required by Fannie Mae and Freddie Mac when homebuyers put less than 20 percent down — have been working to claw back market share for a decade.
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For a time, increased FHA premiums made private mortgage insurance the cheaper option for many borrowers. Programs from Fannie Mae and Freddie Mac that allow low-income homebuyers to buy homes with as little as 3 percent down have also helped private mortgage insurers attract more first-time homebuyers.
First-time homebuyers accounted for close to two-thirds (64 percent) of the loans backed by private mortgage insurance in 2023, up from 61 percent in 2022, according to a report released Tuesday by U.S. Mortgage Insurers (USMI).
Close to one in five borrowers (18 percent) who depended on private mortgage insurance to get approved last year made only a 3 percent down payment, up from 11 percent in 2020, the report said.
Seth Appleton
“Without private mortgage insurance, far too many buyers would remain on the sidelines instead of building intergenerational wealth and working towards the American Dream of homeownership,” said USMI President Seth Appleton in a statement.
(USMI is an industry association representing five of the six active U.S. mortgage insurers — Enact, Essent, MGIC, National MI, and Radian.)
After insuring $283 billion in new mortgage originations last year, private mortgage insurers were standing behind close to $1.6 trillion in home loans — including $1.4 trillion in mortgages guaranteed by Fannie Mae and Freddie Mac.
FHA and VA take back market share
Losses on claims in the wake of the 2007-2009 Great Recession made it difficult for private mortgage insurers to write new policies.
However, after seeing their share of the market for insured mortgages drop below 20 percent in 2009 and 2010, private mortgage insurers gradually reclaimed some of their business from FHA and VA loan programs.
From 2008 to 2013, annual premiums on FHA loans rose from 50 basis points to 135 basis points as the Obama administration coped with losses that led to a $1.69 billion bailout of FHA Mutual Mortgage Insurance Fund in 2013.
Private mortgage insurers steadily grew their share of the mortgage insurance market back to nearly 50 percent in 2022.
But as the economy improved and the FHA program recovered, the Obama administration was able to cut annual FHA premiums by 50 basis points in 2015. Another 30 basis point cut announced by the Biden administration last year made FHA mortgages more attractive than Fannie and Freddie mortgages “for most borrowers putting down less than 5 percent,” according to analysts at the Urban Institute.
During the first quarter of 2024, private mortgage insurers saw their market share drop to 40.1 percent of insured mortgages, down from 47.3 percent in Q1 2023, according to data compiled by Inside Mortgage Finance and the Urban Institute.
Of the $145 billion in mortgages originated with some kind of insurance during Q1 2024, private mortgage insurers still backed the biggest chunk of loans, totaling $58.2 billion.
But FHA’s share of the market grew from 29.9 percent in Q1 2023 — before annual premiums were slashed by $678 million a year — to 36.4 percent in Q1 2024.
Analysts at the Urban Institute calculate that borrowers with a FICO score of less than 740 will find FHA financing to be a better deal when putting 3.5 percent down.
But borrowers with FICO scores of 740 and above will do better taking out a conventional Fannie- or Freddie-eligible mortgage with private mortgage insurance.
Those calculations reflect not only last year’s reduction in FHA premiums but changes to upfront fees that lenders pay when selling mortgages to Fannie and Freddie that were designed to help low- and moderate-income borrowers, the Urban Institute said.
One remaining drawback of FHA loans for borrowers making down payments of less than 10 percent is that the only way to get out of paying mortgage insurance premiums is to refinance out of their FHA mortgages or sell their homes.
Mortgage trade groups have urged the Department of Housing and Urban Development to ditch the “life of loan” premium payment requirement, but so far HUD remains intent on rebuilding FHA’s Mutual Mortgage Insurance fund for the next downturn.
Having slashed annual FHA mortgage insurance premiums by 35 percent last year — and with 2024 FHA loan limits rising to a minimum of $498,257 in affordable markets and up to $1.72 million in high-cost states like Alaska and Hawaii — total insurance in force is growing faster than reserves.
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by Verl Workman | Jul 30, 2024 | Industry, News Feed
REAL Dallas Properties & Management brings its 70-agent team to United in a move that both parties say benefits consumers and agents.
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United Real Estate announced on Tuesday that it would continue its expansion in Texas with the addition of the 70-agent REAL Dallas Properties & Management.
REAL became the third brokerage to join United in the past 12 months, the brokerage said. It now has more than 800 agents across North Temple.
REAL Dallas Properties agents who transition will move onto United’s transaction-fee model, which the firm says will help give agents more control over negotiating competitive fees with their clients.
That’s particularly relevant, as the changes outlined in the settlement agreement brokered by the National Association of Realtors are set to take effect Aug. 17. The changes are expected to put more focus and transparency around agent commissions.
“We are thrilled about our merger with United because we feel the culture and commission model are the right fit,” REAL Dallas broker/owner Luna Zenati said. “We are blending the best of both worlds: maintaining our culture and strong group of agents while adding a national partner and its array of resources at no cost to our agents.”
Zenati said REAL agents should expect to earn more money as a result of the merger.
“They are getting a raise. Not to mention, they can access exciting services they never had before, such as PPO health plans, wealth management & retirement planning, LeadBoost, Marketing Hub and national training,” Zenati said in a statement. “We are upgrading and becoming better versions of ourselves.”
United Real Estate was founded in 2011 and has grown into one of the largest brokerages in the country by volume.
“With upcoming changes in our industry, we are preparing our agents with the flexibility in how they do business,” United owner Nieke Valadez said in a statement. “Our transition from a brokerage commission-split model to a transaction-fee model means they can negotiate more competitive client fees and win more business in any type of market.”
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by Andrew Reichek | Jul 30, 2024 | Industry, News Feed
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When creating a brand, professionals often get caught up in the aesthetics — the trendy font, the eye-catching color scheme or the unique logo. While those things matter, four branding experts said the secret sauce lies in creating a distinct, authentic feeling that homebuyers and homesellers won’t forget.
Agent Upgrade co-founder Kevin Knight asked the Inman Connect MARTECH — short for marketing tech — crowd to imagine walking into a grocery store and going to an aisle with rows and rows of brightly-colored bags of chips. Many of the chips on the aisle are made with the same ingredients and have similar taste profiles. But what makes you choose Plain Lays potato chips over another brand? Or what makes sour cream and onion Ruffles the right choice for a family barbecue instead of Cheetos?
“Who are you marketing to? Who’s gonna buy your products? Spoiler alert: it’s not everyone,” Knight said on Tuesday while standing in front of a screen emblazoned with rows of chips. “What attracts that audience to you, right? For the barbecuing dad, it could be the sour cream and onion ridges on Ruffles that resonate with him and that’s what attracts it. That would be a value.”
“Then you’ve got your style, how you present yourself, how you communicate. It’s what you drive. It’s what you wear,” he added. “It’s how you talk. And then you’ve got the essence. And the essence is, ultimately, that feeling that you leave people with after every interaction with your brand.”
Sydney Miller and Kevin Knight | Credit: AJ Canaria Creative Services
Knight and his business partner, Sydney Miller, pointed to Whole Foods, Trader Joe’s, REI Co-Op, Mercedes Benz, BMW and Volvo as shining examples of branding done right. Each company, they said, has a clear vision of its target consumer and has built a brand that connects with its consumers’ pathos.
“REI is a brand that [reflects its values] extremely well,” Miller said. One of the campaigns that they did that I think really shows their values is a campaign they did a few years back called Opt Outside. Basically, on Black Friday, they shut their doors, which is unheard of, right, for like a big retail store.”
“They said, ‘You know what? Instead of going shopping at REI, we’re gonna be closed. Go outside,’” she added. “And what does that show you? It shows you that REI values its values more than even making sales … That is how they’re able to really build this loyal community around them — because they stand for something.”
Miller and Knight said setting company values and boldly following through on them — a la REI — is what gives a company name or logo meaning. To prove the point, they flashed logos for Mercedes Benz, BMW and Volvo and asked the audience to yell what words come to mind.
“Luxury!” someone shouted for Mercedez Benz. “Performance,” another person said about BMW. “Safety,” another attendee said about Volvo.
“People ask me who the strongest brand on earth is,” Knight said. “I think it might actually be Volvo because it doesn’t matter how big a room I do this in, anywhere in the country, when I show the Volvo logo, everyone sees safety.”
“To Sydney’s point, you don’t have to say it necessarily. This is not a tagline or a slogan or something like that,” he added. “This is how you communicate your whole self in every single interaction.”
Moderator Katie Kossev with Griff O’Brien and Elias Astuto | Credit: AJ Canaria Creative Services
In a separate session, Estate Media co-founder and CEO Griff O’Brien and #TEAMFAST Powered by eXp Realty Director of Sales and Coaching Elias Astuto said video content is the most effective and dynamic way for agents to strengthen their brands and stoke growth through authenticity.
“The opportunity is for us to speak our voice, our purpose, our cause, our crusade, our mission,” Astuto said of video content. “When you’re aligned with that, then what happens is that you have a sense of freedom. But I feel like we all battle at some level when we’re starting out in this game with the imposter syndrome.”
“Well, the moment that you can get rid of that imposter syndrome and just be whoever the heck you are and be comfortable with it, I think that’s when the freedom comes in,” he added. And now you’re free to be yourself; it’s like being in a good relationship. But don’t chase the vanity…”
Astuto said agents need to focus on providing substance in their videos, which gives your sphere of influence a clear, realistic picture of who you are and what you bring to the table. O’Brien said that focus on substance extends to the visual mediums agents choose to connect with their audience.
“If you try to force someone right into a medium, or a series, or some piece of content that they are not excited about, it’s going to show, and it’s going to come through on screen,” O’Brien said. “So we’re really focused on creating IP and assets with talent, whether that’s a newsletter, whether that’s a podcast, whether that’s a video series, it might be [an] option for television.”
“It always starts, again, with what you are an expert in, what you like, and what challenges you are currently facing,” he added. We always start from that central premise of, again, what you have perhaps wanted to do that you have not been able to, and how can we then help get that done?”
Although most agents’ goal for video content is monetization, both men said agents must have other motivating factors, as growth may come slowly. Once agents are clear about their main motivations and who they want to connect with, they can stick to a plan that provides satisfaction and long-term success.
“As you’re starting out, ask yourself a very simple question. Who is this video for?” Astuto said. “If you’re a mom and you’re balancing being a mom and a wife and an entrepreneur, create that type of content because then other people see it like, ‘Wow, if she can do it, I can do it.’”
“At the end of the day, it’s what’s in it for them, and then leveraging other people’s audience,” he added. “If you’re out in a community, you’re shooting a video at the local bakery, or wherever it is, you tag that company, and your hope is that they repost that. Then their audience gets to see your face.”
“I’m like, ‘Oh, I like that bakery. She likes that bakery. I might want to follow her,’” he added. “Then they go to your page and they see your lifestyle. They see the things that you are doing with your family, who you are as a human. And you know what? Now I want to stay.”
If this sounds daunting, both men said agents can start by building a robust email list that’s not subject to wild algorithmic changes on social media sites and creating content buckets that make it easier to generate posts. Some of Astuto’s favorite content buckets are inspirational, educational and conversational — each one creates a dialogue between an agent and their audience.
“How can I produce something that is shareable, saveable and of substance?” Astuto said. I don’t care about the vanity metrics. I want to know how many people are actually going to save this, come back to this, and how much value that is. When you stop chasing vanity, then you can start to be more yourself.”
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