Commercial market bottom nears as foreclosures surge

by Jeff Richmond | Jul 29, 2024 | Industry, News Feed

Bulletproof Ohio home goes under contract after multiple offers

by Annette DeCicco | Jul 29, 2024 | Industry, News Feed

Lights! Camera! Action! Egypt Sherrod touches down in Las Vegas

by Weichert Real Estate Affiliates Inc. | Jul 29, 2024 | Industry, News Feed

Inman Connect Las Vegas is LIVE this week! Get all your real estate questions answered and network with thousands of industry leaders. Join us virtually from anywhere in the world — the future of real estate is unfolding now.

Egypt Sherrod is on a tear.

Indeed, the 2023 Inman Influencer regularly juggles episodes of her “Marriage and Money Podcast with Egypt and Mike” alongside husband Mike Jackson and her popular HGTV reality series Married to Real Estate.

She also leads a home furnishing line, Indigo Road, which she’s expanding with the recently announced Indigo Road Training Center, a state-of-the-art center for real estate agents, and, of course, her brokerage firm, Indigo Road Realty.

And today she’ll appear on live on stage in Las Vegas for Luxury Connect.

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In advance of her appearance at Connect, Inman chatted with Sherrod via email (she was on a well-earned vacation) to hear more about her plans in Las Vegas and a recently announced season four of Married to Real Estate.

Inman: What are you looking forward to most at your first-ever Inman Connect Las Vegas appearance?

Egypt Sherrod: I am looking forward to connecting with some of my amazing fellow broker friends who are traveling from far and wide to attend. Also, relationship building and networking of course, and tapping into the pulse of the next hottest technology for our industry.

What do you like most about Las Vegas?

It’s the lights and action of the strip for me! I always try to catch a good show whenever I’m in town.

What can you tell us about the recently announced season four of Married to Real Estate?

It was just announced that our show spans 19 countries now. It’s still beyond belief! The fact that we come from such humble beginnings and this show has grown to be an international hit is mind boggling. Mike and I are so very grateful for the deep love and loyal viewership.

In season three, fans watched us launch Indigo Road. Now in season four, they get to see that the company has grown into not only a robust real estate brokerage, but a legacy brand with a family of companies under the Indigo Road umbrella including a full scale design house and a home furnishing division.

We also have some amazing clients who fans may recognize (wink), and both the projects and the family grow! That’s all I can share for now.

Do you have any fun plans while in Vegas for Inman Connect? What will you do, or where will you eat?

I am literally there for 20 hours before I head to speak in Cincinnati. Can you believe it?

But in that time I plan to have a few great business meetings, hold a fireside chat on Inman’s main stage about brand building, catch a delicious dinner at Giada’s, and speed shop!

Email Lillian Dickerson

Lesson Learned: Realtors are keepers of the American dream

by Inman | Jul 29, 2024 | Industry, News Feed

Inman Connect Las Vegas is LIVE this week! Get all your real estate questions answered and network with thousands of industry leaders. Join us virtually from anywhere in the world — the future of real estate is unfolding now.

With a specialty in farm and land sales, Hunter Hindman, one of the National Association of Realtors’ 30 under 30 recipients for 2024, requires a unique kit when he goes out on a showing or listing appointment. His supply list often includes a utility vehicle, trailers, boots, mapping programs, chainsaws and, in his words, “anything else it takes to get the job done.”

Find out how this third-generation Realtor puts his background and love of the land to work for clients ranging from farmers to hunters to developers of therapy and religious retreats — and why he’s such a believer in the American dream of land ownership.

Name: Hunter Hindman

Title: Land specialist

Experience: 7 years in the business with a degree in agricultural business sales and marketing and a minor in real estate

Location: Leasburg, Missouri

Brokerage name: Living The Dream Outdoor Properties

Team size: Me and two buyer’s agents, Lucas McElhannon and Donna Housewright; transaction coordinator, my stepmom Tammy; listing inputs coordinator and marketing manager, my sister Paige Hindman; and, of course, my broker and father, Darrell Hindman, from whom I seek advice almost every day.

Transaction sides: 49

Sales volume: $15 million-plus

Awards:

• National Association of Realtors 30 under 30
• No. 1 agent in company out of 50 agents for the number of transactions sold (2021)

As a child, what did you want to be when you grew up? 

I am very proud to be a third-generation Realtor, following in the footsteps of my grandfather, Clifford Hindman, and my dad, Darrell Hindman.  I attended my first Realtor event at the age of 2 when I watched my dad be installed as president of the St. Louis Realtors.

While I didn’t grow up playing with lockboxes, I grew up appreciating our family tradition of outstanding service to clients and customers.  From an early age, I knew that I wanted to continue in that tradition as a keeper of the American dream.

What’s the best advice you ever got from a mentor?

My mentor, my father Darrell Hindman, taught me to always go the extra mile for our clients.  He showed me from my first day in this business that my success was tied to the success and satisfaction of the buyers and sellers I served. 

As a land specialist, he showed me the importance of not just selling the property but selling the outdoor lifestyle that he and I both love. He taught me that looking out for our clients and doing everything possible to help them succeed in their real estate journey would help me grow in life and my profession. 

I will always remember the words that he taught me to live by in our profession: “No commission is worth your reputation.”

What do clients need to know before they begin a real estate transaction?

Clients need to think about and know what they are hiring their Realtor for before they begin their buying or selling journey.

Clients need to ask questions of the Realtor they are interviewing:

• Do they have the right tools?  In my business, that probably includes an off-road vehicle, maybe a chainsaw, and boots that make walking acreage workable. 
• Do they have the right knowledge and experience?
• Have they sold the type of property you are selling? 
• Are they knowledgeable about real estate values in your community or county? 

While countless surveys show that clients are generally happy with their Realtor after the transaction, so many clients don’t listen to their agent’s advice. They sometimes forget that it is just as crazy to hire a Realtor and ignore their advice as it is to ignore their doctor’s or lawyer’s advice.  

What do too few agents know that would make their lives easier?

Few agents know how to compartmentalize and allocate their time. This can be a hard business that can take a lot of time, but a successful agent must know how to manage their time.

Allocate time for clients. Never quit prospecting for new clients and new listings. Allocate time for marketing and promotion to keep business coming. Our business is constantly changing, so our lives will be. Most importantly, allocate time for family and friends. A well-rounded life will bring you success in your career and business.

Tell us a story about your most memorable transaction

Helping clients through what is usually the biggest financial transactions of their lives is always a reminder of the vital role we play in the lives of our buyers and sellers. My most memorable transaction has always been an illustration for me about serving our clients and “doing right” by them can impact their lives as well as ours.

My memorable transaction began one morning when Mick walked into my office. He was looking for help selling his 160-acre farm in Osage County, Missouri.

We chatted for over an hour about the farm and, while he didn’t have to sell, he wanted to move to Florida. He shared with me the good, the bad and the ugly of the property. We quickly hit it off as agent and client and soon became friends. 

In life and business, I have always strived to be bound by my word and doing right by clients, friends and families. To me, in business, I have always worked to go beyond my legal responsibilities and to treat clients like I would want to be treated. When we got an offer on his property that was somewhat lower than he had hoped for, I feel I did the right thing and adjusted my commission so he could receive close to the net proceeds he needed. He promised that he would not forget my kindness and hard work.

A few months later, Mick called me to list his home in Sullivan, Missouri. The beautiful home on 25 acres sold quickly and without issues. Due to the hard work and dedication, Mick had no concerns or issues with listing his home at the full commission normally charged by my company.  

Mick tells me that the closing gifts I gave him at each closing — Orca coolers with our Living the Dream logo on it — sit beside his pool at his Florida home as a reminder of our working together. Working with Mick showed me once again the importance of “doing right” by people in business and all aspects of life. Having a client call you his friend is the greatest reward you can receive in our business.

Email Christy Murdock

13 more questions agents should ask about commission settlements

by Kristine Milkovich | Jul 29, 2024 | Industry, News Feed

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.

An industry shift is upon us. The long-awaited change is coming and coming fast. Post Sitzer | Burnett, the ramp-up to Aug. 17, 2024, has been taking place at a furious pace. It has been a never-ending sea of trainings, webinars, coaching, scripts, dialogues, videos, meetings, rollouts of new forms, revisions and “expert predictions” of what may happen with a plethora of videos on social media and on we go. 

While we got the basics down, so much uncertainty remains. We knew this industry was complicated, but I don’t think anyone was prepared for how complicated it is between umpteen nuances and particulars involved in working through this massive industry disruption. 

There remains a plethora of issues to be sorted out, and some of these may not ever get resolved, at least in the near future. Here are thirteen questions agents should be asking right now:

1.How exactly will buyer agency 2.0 be monitored and enforced, if there will be such a thing? 

Beyond the requirement of turning in a buyer’s agreement with offer and/or documentation into a brokerage’s transaction management platform, how will consistency of protocols and procedures be ensured across local marketplaces? 

2. What will the protocol be for buyers who refuse to sign any kind of buyer agency agreement whether it is exclusive or non-exclusive, even limited to one property or one day? 

Will they really be denied the ability to tour a home?

When a buyer who likes to dodge the “system” (and there is always a handful) signs multiple one-day and/or one-property buyer representation agreements and goes from house to house refusing to commit to any agent and has multiple agreements signed that they don’t know one from the other, can’t keep track of them, can’t conveniently “find” them, etc. — then what?

What if this buyer puts an offer on a home that they have signed more than one buyer agency agreement with? They can’t remember what they had signed or chose not to relay that and so they are on the hook for paying one or more buyer’s agents. Now what happens?

3. How will open houses be handled so that buyers won’t feel like they must put their hands up and walk slowly backwards towards the front door due to explanations and potential disclosures that must be provided? 

Yes, there are all sorts of ways to explain what must be disclosed to potential buyers before they can tour the home as far as representation, but we really have no idea how this is going to go. Will “by appointment” open houses (like what happened during the pandemic) become a preferred practice? This allows an agent more time to address the change in buyer practices in a less chaotic environment.

How will all of this flow in real life? Buyers are an impatient bunch and thanks to the instant gratification of our society, used to being able to see what they want when they want. 

4. How will referral fees be handled post-settlement?

There has been little discussion surrounding referral fees and how those will be handled because of the settlement. Referral fees are big business and a viable pipeline for brokerages. Referrals come from a multitude of channels, whether that is generated through a relocation company, broker-to-broker, affinity programs, lenders, lead generation platforms, portals, etc.

How does the new way of doing business impact referral fees if lesser amounts of compensation are paid to the buyer’s brokerage in a transaction that results in not being able to pay a referral fee? 

What about those situations where the buyer must pay for all, or part of their agent’s compensation and the buyer cannot afford to pay it (and seller will not). Will buyers opt to find an agent who will not be attached to a referral fee from another source?

Referral sources need to be transparent with the buyer and seller leads they are generating in addressing the required practice changes because of the class action litigation, so they understand how this can potentially impact them, the agent they are working with and their buying and/or selling process.

More transparency is surely needed with this aspect of the business. The agent they are referred to should not have to be the sole explainer of the new way of doing business. All leads should be primed into the new normal and prepared on what to expect before being connected to an agent in the market where they need assistance. 

5.What about the many variables and unknowns with the process for confirming compensation with listing agents other than by phone, email and text at this point, in addition to forms to solidify compensation and the process for them?

These are murky at best, depending on where you are located. Many what ifs about “bait and switch” compensation by listing agents and if compensation agreed to by a seller depends on what the buyer’s offer is and things along those lines.

In reality, will agents be forced to negotiate their compensation depending on what their buyer’s offer is? This is a big anxiety point among agents working with buyers. And just to point out, many agents fall on both sides of the buyer and seller aisle. Sellers become buyers and buyers become sellers.

6. What is the role of the Department of Justice with respect to brokerage, state and local Realtor association forms? 

We’ve seen recent intervention with their formal inquiry into the California of Association of Realtors buyer representation agreement. Will they be making more inquiries? Are they quietly requiring these forms to be sent to them for review before the Aug. 17, 2024, settlement implementation date? Will there be more inquiries into the various forms and business practices as we go along? Will these change periodically based on continual Department of Justice input? NAR has said very little because of their meetings with the DOJ. 

7. Who are all the players involved in the Consumer Federation of America (CFA), who makes up their staff, do they have a roster of consultants, how much are they paid and how do they get their funding? 

Why have they taken such a vocal role against the real estate industry? What is the connection between the Department of Justice and all the attorneys involved in these class action lawsuits? Does NAR know more about this than they are sharing with us, their membership? Why aren’t we as an industry asking more questions about this group and demanding more transparency?

How are they obtaining the various real estate forms that they are critiquing, criticizing and contacting the Department of Justice about? So many questions arise about this mysterious organization that continually weighs in on a profession that they have never worked in. Their characterization of the real estate business, how agents service buyers and sellers, claims about representation, fees charged and how to negotiate with a consumer are completely misguided.

Their recent commentary regarding various forms comparing one brokerage’s buyer representation agreement to an actual state form that accounts for numerous details and situations and is extremely thorough is like comparing apples to oranges. Why so much focus on the real estate industry over other professions? 

Why don’t they look into other industries? For example, what about the mortgage industry with closing costs and fees? Those fees are not negotiable. Lenders may push loan products that yield them the best commission, not always what is in the best interest of the customer.

Furthermore, many lenders are concerned about clawbacks, whereby they may have to pay back the commission earned on the loan if the consumer refinances within a year, which may affect the kind of advice and loans they are suggesting. This is a little-discussed secret in the lending world.

The title insurance industry is another one whereby the costs of title insurance are not negotiable and little legwork is being done on a closing until a file has been sent to the title or escrow company. Yes, sometimes closings fall through, but that pales in comparison to the time and effort that a real estate agent has put in with their buyer or seller, particularly if they are unrealistic, complicated, difficult and indecisive, which seems to be many real estate consumers given the current climate. 

Any professional services business has a services/fee agreement whether you are hiring a general contractor, interior designer, accountant, attorney, home improvement company and the list goes on. Are those fee agreements scrutinized and analyzed for “fairness” to the consumer? What about the builder contracts buyers must sign when purchasing a new home? Those are unilateral and always in favor of the builder. Talk about needing an attorney to review before a consumer signs those.

However, it really won’t matter because builder contracts are typically non-negotiable, and the builder’s answer to agent questions and concerns on behalf of their buyers, as well as buyer questions and concerns, is whether it is their way or the highway. Why is this organization not taking more issue with these kinds of things? 

8.What about the plethora of cases and post-settlement lawsuits by buyers and sellers? 

Several cases are ongoing against the original defendants in the Sitzer Burnett case as well as other cases. Issues range from allegations that buyers paid too much when buying a home because sellers had to pay a real estate commission, to more seller plaintiffs’ claims that the current settlement amounts from the Sitzer | Burnett case are not enough.

Will any of this ever get resolved or will it pave the way for even more lawsuits to continually be hanging over the industry like a hurricane that won’t move, but continues to gain steam?

9.When all is said and done, how much do the attorneys in all of these lawsuits (including copycats) get vs. the amount paid out per seller that opts into the class action? 

What about the lead plaintiffs in the Sitzer Burnett case? Various numbers have been bantered about over the last few months, but we should demand a full accounting of what ends up being paid, the exact amounts and to what parties and the number of sellers that opted in. What about those sellers that do not opt-in? Will they still receive something?

It is not unusual with large class action lawsuits to receive a surprise check in the mail or notice you are eligible for some obscure amount of money, even when the consumer didn’t opt into the lawsuit in the first place. 

10.Will dual agency, transaction brokerage or whatever term is used in various markets that allow one agent to represent a buyer and seller in the same transaction no longer be permitted in states where it is currently allowed? 

Will state governments make that call and pass legislation prohibiting this or will that be something done at the Federal level?

11. So what happens after 7 years or because of staff changes at the DOJ from an election or otherwise? 

Will the settlement be dissolved, amended or extended after seven years? Will a different administration or changes in staff result in different priorities for the Department of Justice other than the real estate industry?

Will they be open to feedback because of the practice changes that took place and any adjustments that need to be made? Or will the way real estate is done continually change depending on the administration and the Department of Justice?

Will the forms used in buyer and seller representation and associated with the purchase of real estate be subject to DOJ approval each time changes are made?

That sounds like an awful lot to administer and keep track of.

12. Will buyer representation eventually become required and administered at the Federal level? 

Although some states already require it and other states may be planning to make it mandatory, what about the states that just rely on the NAR settlement? For buyer agency to have more significance and to reinforce the profession to be taken more seriously, should it be required by the United States government? Is it time for a United States Department of Real Estate vs. funneling all through the Department of Justice for approval and all the stress that ensues from that, not knowing what will and won’t be taken issue with?

The countries that were cited in the Sitzer | Burnett case, although they have vastly different real estate systems vs. the United States, require buyer agency in their respective governments. That is very different from a complicated patchwork across all the states in the United States of America with different rules and requirements. 

13. Where do we go from here as far as pre-, post-licensing, continuing and license renewal education? 

What will the content of future coursework be like? Do entirely new training classes need to be developed beyond buyer agency to essentially revamp and retrain agents across the country? Perhaps real estate 3.0? 

While the fundamentals haven’t changed, there are so many new ways of interacting and connecting with the consumer who has access to more information than ever. At the same time, the industry has access to more big data than ever. How can we effectively utilize this data in a responsible manner to reinforce our professionalism, knowledge, savvy and insight to help become even better advocates for the buyers and sellers we represent?

Will stricter licensing requirements eventually ensue because of the lawsuits? Will it require more education, training and mentoring before a new agent can work with a buyer or seller on their own? Sure, agents are supposed to be legally supervised by their manager or broker, but as we know, the range of that varies widely from brokerage to brokerage. 

The class action litigation and issues arising from all of this are far from over. There are still many unknowns and confusion to work through and the outcome of pending cases could impact practice changes.

Conflict will likely arise as the implementation goes into effect. There won’t be a buyer agent “articulation of value problem,” there will be an “industry confusion problem,” over processes, procedures, various buyer agency situations, compliance, enforcement and working with consumers in a clear, confident and consistent manner that has been effectively communicated by all agents in the respective marketplaces they work.

We are going to need more than “Good Luck” and “Godspeed” to move through the turbulence ahead. Make sure your seatbelts are fastened low and tight and brace for potential impact. 

Cara Ameer is a bi-coastal agent licensed in California and Florida with Coldwell Banker. You can follow her on Facebook or on X, formerly known as Twitter.

Forced to move? Not quite. The real reasons buyers are shopping now

by Rachael Hite | Jul 29, 2024 | Industry, News Feed