At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: Ed Zorn, Anthony Lamacchia and others weigh in on buyer agreements, commission sharing and everything you need to know about the new forms.

“How will you communicate offers of compensation?”

“Are you still using MLS PIN?”

“Are you going to allow broker-to-broker sharing of commissions?”

This week, broker Anthony Lamacchia shared just some of the questions he’s hearing right now as the Aug. 17 implementation date approaches.

“There’s a little bit of this awkward period of, ‘Well, what do we do?’” Lamacchia said.

The time has come to make sure you have an answer to that question.

Whether you’re taking a class at the local association, sitting in training at your brokerage or asking your favorite mentor for advice, this is the time the rubber meets the road. Part of being a real estate expert is knowing your forms backward and forward and answering client questions. That means getting up to speed on paperwork, policies and the logic behind the changes.

That being the case, in this week’s Download, we’re bringing you resources, expertise and thought leadership that’s all about getting your ducks in a row for the real-world shifts ahead.

In the first in a two-part interview with California Regional MLS General Counsel Ed Zorn, Inman’s Andrea V. Brambila discussed impending changes to the commission structure and how it will impact agents.

Zorn is not only the vice president and general counsel of the nation’s largest multiple listing service, California Regional MLS, he is also president of real estate investment firm ZEC Investments, a mediator and arbitrator of real estate disputes, and a former adjunct professor of real estate at California Baptist University.

He held a California broker license for many years until it expired in 2022, and has held a broker affiliate license under eXp Realty in Tennessee since 2019.

In the Q&A, Zorn talked about his upcoming appearance at Inman Connect Las Vegas, which will lean into practical, actionable strategies to ensure agents are on the right page when it comes to the nuts and bolts of paperwork and transaction management.

“We’re going to be doing some live role-playing: buyer and seller objections post-Aug. 17,” Zorn said. “James [Dwiggins] is going to moderate and the three of us are going to give examples of “This is what my listing presentation would look like.” “This is how I would communicate things with a buyer.” James will hit us with questions: How would you overcome this objection? Or, what if a seller says, “I don’t want to pay anything?” How do you handle that?”

EXTRA: Ed Zorn to the real estate industry: Get rid of commission-sharing now (Part 2)

The back-and-forth, will-they-won’t-they of industry changes is coming to a head in less than a month. Are you ready? At this point, you need to lock in what you’ll say to buyers and sellers, how you’ll talk about commissions and you need to make sure you know every detail of your new paperwork. Inman contributors are offering plenty of detailed advice to keep you compliant and client-focused.

27 resources you’ll need to be ready for the Aug. 17 transition

Consider this a resource roundup to guide you through the changes you’ll make, the client conversations and even the mindset shifts that are necessary right now.

Commission Crunch: 5 tips to avoid scrutiny and remain in compliance

Clients are watching you now more than ever, compliance expert Summer Goralik writes. Here’s how to implement best practices now, so you can avoid complaints as the industry shifts.

Can you hear me now? Why your clients miss 50% of what you say

Less talk, and more listening. Inman contributing writer Rachael Hite shares the real reason your transactions turn topsy turvy — and why it has everything to do with what’s lost in translation.

At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

Effective communication is more crucial than ever for building and maintaining client relationships, closing deals and establishing a professional reputation. Proper phone etiquette plays a significant role in an effective communication process. 

As a real estate agent, your phone manner can leave a lasting impression. It can help you develop — or lose — trust and influence how clients perceive you and your services. These essential phone etiquette tips will help you reach out with confidence.

Preparing for the call

Before making a call, it’s important to be well-prepared. Research the person or company you are calling to understand their background and needs. This can include reviewing client files, recent property listings in a neighborhood or any prior communications. For instance, if you are calling a buyer lead, familiarize yourself with their property preferences and budget.

• Agenda setting: Have a clear purpose for the call. Outline the key points you want to discuss, such as property details, appointment scheduling or follow-up on a previous conversation.
• Environment: Ensure you are in a quiet place with a good phone connection. Background noise can be distracting and unprofessional.

Beginning the call

How you start a call sets the tone for the entire conversation.

• Greeting and introduction: Always start with a polite greeting and introduce yourself. For example, “Good morning, this is [your name] from [your real estate brokerage]. How are you today?” Then, actually listen to the response. You’ll pick up valuable insights into their mood, concerns and state of mind.
• Identity confirmation: If this is the first time you’re reaching out, or the first time in a long while, confirm you are speaking with the correct person. You don’t want to discuss sensitive information or financial details with the wrong person.

During the call

Maintaining professionalism throughout the call is essential.

• Active listening: Show that you are listening by using verbal indicators, like “I see” or “That makes sense.” Summarize key points to confirm understanding. For example, “So, you’re looking for a three-bedroom house in the downtown area, correct?”
• Clear communication: Speak clearly and at a moderate pace. Avoid industry jargon unless you are certain the other person understands it. For example, instead of saying, “The cap rate on this property is 5 percent,” you might say, “The projected return on this property is 5 percent per year.”
• Professional tone: Maintain a friendly yet professional tone. Avoid slang and overly casual language unless you know the other person well. For example, instead of saying, “Hey, what’s up?” use, “Hello, how can I assist you today?”
• Handling difficult situations: Stay calm and composed if the conversation becomes challenging. Use phrases like, “I understand your concerns” and, “Let’s find a solution together.”

Ending the call

Closing the call properly leaves a positive final impression.

• Summarize key points: Recap the main points discussed and any agreed-upon action items. For example, “To confirm, I’ll email you the property listings by the end of the day, and we’ll schedule a viewing for next Tuesday between the hours of 2 and 5 p.m.”
• Express gratitude: Thank the person for their time. For example, “Thank you for speaking with me today. I look forward to assisting you further.”
• Proper closure: Close the conversation politely, such as, “Goodbye” or, “Have a great day,” and wait for the other person to hang up first.

Following up

Following up after a call reinforces professionalism and reliability.

• Follow-up email: Send a summary of the call, including any next steps or appointments. For example, “Thank you for our conversation today. As discussed, here are the property listings that match your criteria. Please let me know your availability for a viewing.”
• Timeliness: Ensure the follow-up is timely, ideally within 24 hours.

Common phone etiquette mistakes to avoid

Being aware of common phone etiquette mistakes can help you avoid them.

• Interrupting the caller: Let the other person finish speaking before you respond. Interruptions can seem rude and dismissive.
• Background noise: Make sure there are no distracting noises in your environment. For example, avoid taking calls in a noisy café or while driving.
• Unclear communication: Avoid mumbling or speaking too quickly. Clear and concise communication is key to professionalism.

Virtual calls (Zoom, Skype, Teams, FaceTime)

With the near-ubiquity of virtual meetings, it’s important to adapt phone etiquette to video calls.

• Stable connection and good lighting: Ensure your internet connection is stable and your face is well-lit. Poor lighting and connectivity issues can distract from the conversation.
• Mute when not speaking: To avoid background noise, mute yourself when you’re not speaking.
• Professional background: Use a neutral background or a professional virtual background. Try to avoid distractions in the background like a spinning ceiling fan or the light from a window.
• Backup plan: Know what you’ll do if your power or WiFi signal goes out. If you were planning to share a presentation, have a PDF of your graphics or shoot a quick video and send it via text or email instead. Be sure to follow up to see if there are any questions or concerns.

Good phone etiquette is vital for real estate agents looking to build strong professional relationships and provide excellent customer service. Proper preparation, professionalism and follow-up can leave a lasting positive impression on clients and colleagues alike. Implement these tips to enhance your communication skills and succeed during every conversation.

At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

Aspen Valley Ranch, previously owned by Tellurian co-founder and natural gas pioneer Charif Souki, has been sold in pieces after hitting the market for $220 million in 2020, The Wall Street Journal reported on Thursday.

A year after the lavish Colorado ranch was listed, two homes on the 830-acre property were sold for $47 million. Souki ended up in a legal battle with lenders, losing control of the remainder of the property.

In January, lenders bought that property out of bankruptcy for $30.5 million, public records show. Five months later, Bay Point Advisors, an Atlanta-based hedge fund, purchased 300 acres of the ranch from Souki’s lenders, company officials said.

According to Bay Point President and Chief Investment Officer Charles Andros, Bay Point intends to finance the construction of future homes to be built on the property.

“We’re going to end up selling them off,” Andros said.

Souki purchased the property back in 2013 for $27 million. He spent millions building homes and ultimately a “mini-country club” on the ranch where he lived with his family, Souki told The Wall Street Journal. Once construction was complete, he intended to sell the ranch.

After defaulting on over $100 million in loans back in 2020, creditors foreclosed on Souki’s assets and sold them, the ranch included.

According to Andros, Aspen Valley Ranch, located roughly 10 miles from Aspen, consists of 11 residences among other amenities — equestrian facilities, a swimming pool, and a repurposed historic barn for recreational activities.

Bay Point owns five home sites and three homes, one of which the firm intends to put on the market– a $20 million, 5,750-square-foot residence stretching across 98 acres.

Jennifer Banner at Christie’s International Real Estate has the listing.

Email Richelle Hammiel

At Inman Connect Las Vegas, July 30-Aug. 1 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

Millions of homeowners could soon have the option of using a debit card to make their monthly mortgage payments instantly with the integration of payment processing technology developed by REPAY into ICE Mortgage Technology’s Servicing Digital solution.

Mortgage loan servicers typically won’t accept credit card payments because they don’t like the fees. But paying your mortgage with a debit card provides some of the advantages of a credit card — like speed, security and convenience, Atlanta-based REPAY claims.

“Debit card acceptance capabilities expand payment options for borrowers, allowing them to make payments during month-end and grace periods, which enhances their overall ability to manage finances efficiently,” REPAY said in announcing the deal Thursday. “This feature also improves the resolution of collection accounts by increasing the ability to promptly address them, and it reduces the need for slower and often costlier methods like wires or overnight payments.”

Paying your mortgage with a debit card is more convenient for borrowers than a traditional paper check or wire transfer payment, REPAY says, and pulling funds from the borrower’s account instantly means they’re less likely to get hit with late fees while also getting real-time payment confirmation. Lenders can tap stored payment data for future transactions while ensuring compliance with the Payment Card Industry Data Security Standard (PCI DSS).

REPAY processed about $25.7 billion in debit card payments last year through 262 integrations with various software providers, the company said in its most recent annual report to investors.

The integration deal with ICE Mortgage Technology will help REPAY expand the reach of its payment processing solutions beyond core verticals including personal and automotive loans, receivables management and business-to-business payments. REPAY accelerated its entry into the mortgage and healthcare payments verticals in 2020 with the acquisition of CDT Technologies, which did business as Ventanex.

Founded in 2006 by current executives John Morris and Shaler Alias, REPAY went public in a 2019 merger with a special purpose acquisition company (SPAC). Repay Holdings Corporation trades on the Nasdaq Capital Market for early-stage companies that have relatively low market capitalizations under the ticker RPAY.

ICE Mortgage Technology says its MSP loan servicing system was used by 92 mortgage and home equity servicing clients to handle more than 50 million loans last year. MSP integrates with Servicing Digital, a consumer-facing mobile app and responsive web solution that loan servicers can brand as their own.

Servicing Digital not only allows borrowers to see their loan status and make payments but serves as a “customer engagement and retention tool” by providing information about the borrower’s home equity and neighborhood property values and helping loan servicers market a new mortgage to clients who are ready to refinance or buy their next home.

Servicing software ICE Mortgage Technology’s biggest business

Source: Intercontinental Exchange Inc. quarterly earnings report. 

ICE’s acquisition of Black Knight in the third quarter of 2023 made it a major player in mortgage servicing technology — a new line of business that is now the biggest source of revenue for the company’s ICE Mortgage Technology segment. At $214 million in Q1 2024, mortgage servicing software generated 43 percent of ICE Mortgage Techology’s revenue for the quarter.

After surging above $1 billion in 2021 during the refinancing boom, revenue generated by mortgage origination technology declined as rising interest rates curbed borrowing activity. ICE Mortgage Technology saw revenue generated by originations technology fall by 22 percent in 2022, to $798 million, and by another 13 percent last year, to $694 million.

Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

The Federal Communications Commission has plans to tighten the reigns on artificial intelligence-generated robocalls.

Jessica Rosenworcel | Credit: FCC

FCC Chairwoman Jessica Rosenworcel announced her plan on Tuesday, requiring callers to disclose the AI-generated robocalls when obtaining prior express consent from consumers. Even with prior express consent, callers would be required to make another disclosure on every AI-generated call they make, a measure Rosenworcel said would help consumers “identify and avoid” calls that “contain an enhanced risk of fraud and other scams.”

The plan also calls for creating tech that helps consumers identify and block unwanted AI-generated calls and protecting “positive uses” of AI-generated calls for consumers with disabilities.

Rosenworcel said her proposal builds on several recent actions the FCC has taken to regulate robocalls, including the passage of a declaratory ruling that said voice cloning technology is illegal and a $6 million fine levied against a New Hampshire man who made voice-cloned robocalls to sway 2024 primary voting.

The plan will undergo a three-part voting process, starting at the FCC’s August Open Meeting. If commission members approve it, it will face public comment and a final vote before implementation.

Although the plan doesn’t mention any specific industry, it addresses a critical component of many real estate agents’ lead generation plans and emerging tech that uses AI to automate cold calls.

Last year, Texas-based franchisor Keller Williams settled a $40 million class action lawsuit for unsolicited, pre-recorded telemarketing calls its agents made to consumers without their consent. The lawsuit leaned on the 1991 Telephone Consumer Protection Act (TCPA), which Rosenworcel cited multiple times in her announcement on Tuesday.

“Bad actors are already using AI technology in robocalls to mislead consumers and misinform the public,” she said in a written statement. “That’s why we want to put in place rules that empower consumers to avoid this junk and make informed decisions.”

Katie Lance

In an email to Inman, marketing expert Katie Lance said Rosenworcel’s proposal is a “significant development” that agents and brokers shouldn’t ignore.

“For agents who rely on AI to streamline their marketing tasks, this move underscores the importance of ethical and compliant AI usage,” she said. “AI has revolutionized our industry by enabling more personalized and efficient communication with clients; however, it’s crucial for agents to understand the boundaries of these tools to ensure they are not infringing on consumer privacy or regulatory standards.”

Lance said AI must be used responsibly, and this is the time for agents to review what AI tools they’re using and adjust how they’re using them.

“For agents, this means being vigilant about the sources and methods of their AI tools, ensuring they comply with all relevant regulations, and focusing on building genuine connections with clients,” she said. “AI should augment our efforts, not replace the personal touch that is so vital in real estate.”

Email Marian McPherson

At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

Two weeks after filing a theft of trade secrets lawsuit against competitor CoStar Group, Realtor.com parent company Move, Inc. has asked a judge in California to block CoStar Group’s access to files at the center of the lawsuit.

Move’s attorneys filed the preliminary injunction on Monday with Judge Steve Kim of the U.S. District Court in California, asking the court to block CoStar Group and former Realtor.com News and Insights Editor James Kaminsky’s access to Move-owned files outlining core information about Realtor.com’s N and I editorial budget, audience and revenue numbers, alongside employment summaries for several Move employees.

Move said Kaminsky accessed those files at least 37 times after taking a position as an editor at Homes.com in January. Move wasn’t aware of Kaminsky’s alleged actions until June 3, when a Move employee got an alert that Kaminsky’s Gmail account had opened a core file for the Realtor.com News and Insight team. Move then barred Kaminsky’s Gmail address.

In addition to the preliminary injunction, Move’s counsel also wants CoStar Group to provide a list of electronic devices (e.g., desktop computer, laptop computer, cell phone) Kaminsky has used since joining Homes.com. Move also asked for a forensic inspection of said devices.

“Move easily meets the standards for entry of a preliminary injunction and for an order authorizing limited expedited forensic discovery,” the injunction request read. “With an appropriately crafted Order, the Court can help Move stop further misappropriation of trade secrets, ensure unauthorized access to its computer systems has stopped, prevent more spoliation, and determine where Move’s stolen information has been sent.”

Gene Boxer | Credit: CoStar

In an email to Inman, CoStar Group General Counsel Gene Boxer characterized the preliminary injunction as “a knee-jerk filing” and another “PR stunt” from Realtor.com as competition heats up between the two residential portal behemoths.

“Last week, we noted that plaintiffs with real concerns about trade secrets file for injunctions when they file complaints, and that Move had not, and we predicted that now that we had called them out, they would file such a motion,” Boxer said in a statement to Inman. “That’s exactly what happened. Realtor.com’s motion confirms that they’re using a mid-level employee as a pawn and that they have zero evidence of any involvement by CoStar. None.”

Inman also contacted Realtor.com; however, a company spokesperson said, “[Realtor.com] doesn’t comment on pending litigation.”

The lawsuit is the latest chapter in Move and CoStar Group’s battle over which residential portal can rightfully claim the second-place spot during a pivotal point in a years-long portal war.

CoStar Group caught the industry’s attention in October 2023 when the company announced its residential portal, Homes.com, had drawn 100 million monthly unique visitors in September — a metric that meant Homes.com had grown its traffic by 117 percent in one month.

Despite questions about the correctness of those claims, CoStar Group and Homes.com quickly leaned into messaging about surpassing Realtor.com as the second-most trafficked portal in the U.S., putting $1 billion into a star-studded marketing blitz to drive traffic and memberships to the site.

CoStar Group founder and CEO Andy Florance and Realtor.com CEO Damian Eales spent much of the first quarter of 2024 delivering slight jabs at each other. Both leaders embraced competition and touted the strength of their respective platforms during their Inman Connect New York appearances; however, the stakes have heightened since then.

Eales began putting additional pressure on Florance and CoStar Group in May, using his time at the National Association of Realtors MLS Forum of the Realtors Legislative Meetings to lambast CoStar Group for casting Homes.com Network traffic figures as Homes.com traffic figures.

In July, Move took Eales’ concerns to the Better Business Bureau National Programs’ National Advertising Division, which recommended that CoStar stop using “Homes.com just reached 156M monthly unique visitors” and “Homes.com now has DOUBLE Realtor.com’s traffic” in its ads as both claims are based on traffic for the Homes.com Network.

CoStar Group acquiesced to NAD’s recommendations, with recent advertising highlighting Homes.com’s 100 million monthly unique visitors. The company can still highlight traffic numbers for the Homes.com Network if they “explicitly disclose it in the body of its advertisements.”

The Court will decide on the preliminary injunction during a hearing on Aug. 14.

Email Marian McPherson