by Latham Jenkins | Jul 26, 2024 | Industry, News Feed
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We’ve all heard listings are the key to success in this business, but listings are only one side to the transaction. Every successful transaction involves the buyer’s side and in most cases an agent working with the buyer.
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There is a significant difference between average buyer’s agents and exceptional buyer’s agents. Here are the differences, and the 11 things great buyer’s agents know before they ever show property.
1. They know the value of a buyer
Great buyer’s agents understand the buyer has more value than just the one transaction. They understand that a happy buyer sends referrals. They also understand a closed buyer transaction creates a marketable event that can lead to other buyer referrals.
The old saying “birds of a feather flock together” absolutely applies to buyers. The great buyer’s agents understand that if they provide world-class service to their current buyer, odds are they will be able to attract or receive referrals for other buyers just like them.
2. They know whether this buyer is working with another agent
One of the biggest mistakes real estate agents make when working with buyers is not knowing whether they are already working with another agent. Most agents have learned this lesson the hard way and found themselves finding the ideal home for a buyer only to realize right before writing an offer that the buyer has a friend in the business that they will be using as their agent.
The great agents ask if the buyers are working with another agent early to save unneeded time, effort and frustration. This question will become even more valuable as we head into a post-NAR settlement era where a buyer’s broker agreement will be required for a buyer to see a home listed in the MLS.
3. They know what the buyers can afford through pre-approval for a mortgage
Another mistake most agents make is not knowing how much the buyers qualify for before showing homes. The best agents understand the pre-approval process is not just to make sure the buyers can buy, but also to make sure the buyers see homes that are in a price range that is doable for them.
Early in my career I made the mistake of assuming a buyer could afford a certain price range only to find out they qualified for homes that were $75,000 less than the ones I showed them. The buyers never could get satisfied with a home in the price range they qualified for after seeing the higher priced ones. This is a mistake I learned from and never repeated.
The best agents don’t show property until their prospective buyers have been pre-approved for a loan.
4. They know what the buyer wants and needs
Great buyer’s agents understand how valuable their time and the buyer’s time is. They ask questions to understand what the motivating factors are for the buyers. They ask them if there is a specific time deadline when they need to be in the home. They ask them where they will be spending most of their time outside their home to uncover if there are amenities, schools or offices they need their home to be near.
By understanding the buyer’s wants and needs, they can provide them with the homes for sale that best fit their desires and make sure their wants/needs are met.
5. They know and can communicate the local market trends
Great buyer’s agents understand and can easily communicate the current local market trends to the prospective buyers in a way that they can understand how they will affect their buying process. This process of educating them on the local trends provides insights that shape the buyer’s expectations.
If there is limited inventory, the great agents provide the buyers with an understanding of how that might affect their need to move quickly and offer above asking price when they find the right home for them in order to win in potential multiple-offer situations.
If the days on market are growing and the average list-to-sale price is moving towards 95 percent, then the agent will educate them on how this might affect their ability to negotiate price in a manner that is reflective of these market trends. Although each home and each negotiation are different, understanding the trends is knowledge that can bring value to the buyer.
6. They know and can communicate specific neighborhood market trends
Occasionally specific neighborhood trends can deviate from the overall local market trends. Great buyer’s agents understand which neighborhoods are demanding a premium and which lend themselves for more aggressive negotiation. This knowledge can pay big dividends for the prospective buyers.
7. They know the history of the homes they are showing
Great agents have a good idea which houses the buyer will be most interested in, prior to showing them, based on their understanding of the buyer’s needs/wants. The next step great agents take is gathering historical information about the homes they are confident the buyer will be interested in.
This includes when the home was built, who the builder was, any renovations that were done and when they were done. They know the details of the last few sales, including sales price and when the homes were sold. They gather property tax information and estimated homeowners’ insurance costs.
Great agents don’t wait for the buyers to ask questions and then gather the answers. They educate themselves on the homes and are ready when and if the questions come.
8. They know the value of relationships with other agents
Great buyer’s agents understand the relationships they have with other agents can affect how smooth the transaction will be or how tough it may be. They understand their job is to advocate and negotiate for their buyers, but they also realize their professionalism with and respect toward the other agent can make a difference for their buyers as well.
9. They know how to represent buyers at a high level
Great buyer’s agents know that to represent buyers at the highest level, they must develop their skills. They understand their skill level in presentation, communication and negotiation will have a direct impact on the transaction and the experience the buyers they represent will have in that transaction.
The National Association of Realtors has encouraged agents to develop these skills by offering free access to the Accredited Buyer’s Representative (ABR) designation course through the end of 2024. For more details on the free access provided, check out this page.
10. They understand the value of good communication
An article in Forbes states the three biggest complaints about real estate agents are that they “lie, are lazy and don’t communicate well.” Based on this article, poor communication is viewed in the same way as lying and laziness. Great agents understand providing good communication is a way to separate themselves from their competition and one of the most common complaints people have of agents.
This should start from the beginning. Sending a text the morning of your first meeting reminding them of the meeting and making sure the time and place still works for them sets the tone for your communication throughout the process.
Emailing, calling or texting the buyers with the agenda for the time you will spend with them provides clarity for what to expect. Consistent communication from the search process all the way through to post-closing follow-up will deepen the trust and relationship you have with your buyers.
By turning what the public views as a negative into a positive, great agents understand that great communication is the path to lifelong clients and referral partners.
11. They understand the value of a lifelong client relationship
The first point in this article was that great agents understand the value of a buyer, and it is only fitting that we close with the fact that great agents understand the value of a lifelong client relationship. The best agents understand that everything begins and ends with the clients.
This business is about them and how you serve them. When you focus on becoming the agent that not only deserves their business but an agent that earns their business for life, your business can’t help but grow.
Buyers need and deserve you to become the best version possible of yourself. Our industry needs great agents to step forward in this time of change and show the value we bring to the process of purchasing a home. This is a pivotal point in our industry and in your career. Now is the time for you to step forward and be the great agent you have the ability to become.
Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.
by Stephanie Alfonso | Jul 26, 2024 | Industry, News Feed
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Navigating the complexities of downsizing can be a daunting task for anyone, but it becomes especially challenging for people who have spent decades in the same home or who might be facing normative changes associated with age.
As the largest group of home sellers in recent years, baby boomers (ages 59 to 77) are at the forefront of the downsizing trend, making up 45 percent of home sellers in 2023, according to the NAR’s 2023 Profile of Home Buyers and Sellers. Meanwhile, the silent generation (78 and up) accounts for 6 percent. Combined, these two groups comprised over half of all home sales in the U.S., a trend expected to continue in the coming years.
This shift means that real estate agents are increasingly encountering clients who need more than just transactional assistance. Those selling homes they’ve lived in most of their adult lives tend to face unique emotional and logistical challenges associated with relocating. These obstacles are tied not just to age but to the profound life changes involved in letting go of a long-term residence.
Age-related physical limitations and cognitive declines sometimes associated with aging or illness can add layers of complexity to the downsizing process. Coupled with the sheer volume of possessions accumulated over decades, these factors can turn what might seem like a straightforward move or home sale into a significant emotional and logistical undertaking.
by Kevin Van Eck | Jul 25, 2024 | Industry, News Feed
The merger with the team managed by Esther Ozuna continues the growth of an Atlanta team that has ranked among the RealTrends 100 nationally in recent years.
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Keller Williams Heart of Atlanta Group announced on Thursday that it had picked up another team with the addition of 11:11 Realty Group.
The firm said it had picked up the team led by Esther Ozuna, who is president of the Women’s Council of Realtors Atlanta and a board member of the Atlanta Realtors Association.
“Esther has long been an influencer and promoter of opportunity in various real estate spaces that I have admired for many years,” said Manny Recinos, team leader of Keller Williams Realty Metro Atlanta. “To have her and the 11:11 group join our Keller Williams family here in Decatur is an honor and we look forward to all we will accomplish together in the future.”
Recinos said that by merging with 11:11 Realty Group, Keller Williams Heart of Atlanta Group would look to continue scaling in the region.
The group was founded in 1996 by Rick Hale and is currently managed by operating principal Brett Caldwell. It has ranked among the RealTrends Top 100 Real Estate Brokerages nationwide in recent years.
“My vision for 11:11 Realty Group was to cultivate a culture with a strong dedication to our diverse clientele and ensure that culture stands out,” Ozuna said.
“Additionally, I aimed to adopt a forward-thinking approach towards the Atlanta market and the opportunities it offers to both our agents and clients. Having grown in the industry over the years, I am now thrilled to partner with Keller Williams Metro Atlanta as we align closely in our vision and share a hopeful outlook for the future; drawn particularly to their standout education, office culture, and technology offerings.”
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by Jonathan Pressman | Jul 25, 2024 | Industry, News Feed
Delta Media Group published a white paper on Monday detailing the benefits of brokers adopting all-in-one tech solutions in the face of decreasing transaction volume.
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The real estate industry must pivot away from tech “frankenstacks” and lean into the power of artificial intelligence-based all-in-one solutions, according to a new analysis by Delta Media Group released Monday.
The 28-page white paper, “Future-Proofing Your Real Estate Brokerage,” cites costly third-party vendors and “disjointed” tech stacks as top reasons why many all-in-one solutions fail for brokerages and agents.
Michael Minard | Credit: LinkedIn
“Agents are burdened by the weight of standalone tools meant to simplify their lives,” Delta Media Group CEO Michael Minard said in the report. “Unfortunately, this jumbled chaos of disjointed applications, dubbed ‘frankenstacks,’ has become a monstrous obstacle to growth and productivity. These patched-together systems fail to deliver the streamlined experience that modern real estate professionals crave.”
“As the industry pivots to the reality of fewer transactions,” he added, “this outdated marketing approach is quickly losing ground to a sleeker, more efficient,and highly affordable contender: the all-in-one marketing platform.”
Delta Media Group is an all-in-one solutions provider that counts Berkshire Hathaway Home Services and Coldwell Banker franchises as well as several leading independent brokerages among its client base.
The paper said all-in-one solutions offer brokerages enhanced data flow and accessibility, improved operational efficiency, an enhanced customer experience, and a holistic view of business processes that enable brokers to quickly shift their financial and growth strategies.
The healthcare, retail, finance and travel industries are already reaping the benefits of all-in-one solutions, as evidenced by health records platform MyChart’s 15 percent increase in patient use, Walmart’s 40 percent online sales boost, banks’ and consumers’ rapid adoption of Plaid to easily connect their financial accounts, and Marriott’s 5 percent increase in mobile bookings.
“A consistent theme across these industries is the move towards streamlined processes,” the report read. “Time and resources are precious commodities, and any technology that can help reduce waste, simplify tasks, and enhance operational efficiency is worth consideration.”
The number one factor that’s stopped real estate from fully embracing the all-in-one trend is the fallacy that using multiple best-in-class solutions will automatically yield a best-in-class experience for agents, Delta said. The chase for the latest and greatest tool causes brokerages to waste time and money and heightens frustrations among agents who attempt to adopt new systems.
“This approach can prove to be a costly and time-consuming endeavor for any brokerage,” the report read. “That’s because real estate firms invest significant resources in acquiring, maintaining, and updating these separate technologies, only to find that they quickly become outdated as new innovations emerge.”
“Agents, like most professionals, value stability and familiarity in their work processes,” it added. “They are more likely to stick with the tech they know, even if it may not be the most cutting-edge, to avoid the disruption and time investment required to start anew.”
The report said the emergence of artificial intelligence makes adopting all-in-one solutions the best approach, as AI can manage mundane tasks on the backend and create a more engaging experience for consumers on the front end.
“By centralizing data from various sources, such as property listings, client interactions, and market trends, an all-in-one platform can create a rich tapestry of information and insights,” the report said. “Leveraging AI and machine learning, brokerages can analyze this data to identify patterns, predict trends, and generate actionable recommendations.”
“The future of residential real estate, enhanced by AI, promises a landscape where precision, efficiency, and insight drive success and sustainability in the ever-evolving real estate industry,” it added.
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by Summer Goralik | Jul 25, 2024 | Industry, News Feed
California is home to nearly half of all cities where it costs at least $1 million to buy a starter home. Nationwide, 237 cities are now “million-dollar” cities.
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A typical starter home costs at least $1 million in 237 cities in the U.S., a huge spike since the pandemic, according to a new report Zillow released on Thursday.
That’s nearly three times the number from before the pandemic, when the typical starter home cost at least $1 million in 84 cities, the report found.
California accounted for nearly half of all cities on the million-dollar list, with 117 cities, followed by New York with 31 and New Jersey with 21.
“Home buyers are battling affordability and availability today. So much so that $1 million is the norm for a starter home in hundreds of cities,” said Orphe Divounguy, a senior economist at Zillow. “However, it’s looking more and more like there will be some good news ahead for first-time buyers. More homes are for sale, price cuts are on the rise, and buyers have a few more days to weigh their options as homes sit on the market.”
Starter homes are defined as those in the lowest third of home values for a given region.
The typical starter home costs $196,611 in the U.S., Zillow said. That’s up 54.1 percent over the past five years, a growth rate that exceeded the price increase for the typical home over that same span of time.
The New York metropolitan area — which includes parts of New Jersey and Pennsylvania — has more million-dollar cities than any other area, Zillow said. San Francisco was second on the list, followed by Los Angeles, San Jose, Miami and Seattle.
Those tend to be markets with more restrictive zoning codes that make it more difficult to build new housing, Zillow noted.
“Markets with the most restrictive building regulations tend to have more cities with $1 million starter homes,” Zillow said. “They are also markets with lower homeownership rates.”
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by Michael Zaransky | Jul 25, 2024 | Industry, News Feed
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In the most recent development in allegations of sexual assault and rape against luxury brokers Tal and Oren Alexander, new reports claim that executives at their long-time firm, Douglas Elliman, and their most recent white-label partner, Side, knew about allegations of sexual misconduct while the brothers were associated with the firms.
Individuals familiar with the matter who spoke with The New York Times and The Wall Street Journal alleged that Oren had warned at least one senior executive at Douglas Elliman that he might be publicly accused of sexual assault. The executive reportedly dismissed the conversation at the time and did not think about it further.
“The recent lawsuits and press reports concerning the Alexanders are shocking and disturbing, and Douglas Elliman expresses the utmost sympathy for anyone who may have been a victim of sexual assault by them,” a representative for Douglas Elliman said in a statement emailed to Inman.
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Three former members of Tal and Oren’s real estate team at Douglas Elliman told The WSJ that Oren would frequently boast about his sex life and show off pictures of him and his brothers — including security executive Alon Alexander who has also been accused of sexual assault and rape — with naked women.
Tracy Tutor of Million Dollar Listing LA fame also came forward to The New York Times and alleged that she had been drugged by Oren Alexander at a party in 2014.
“I am still struggling to remember the details,” Tutor said, claiming that after sharing a drink with Oren, she blacked out. “Staying silent for so long has been damaging on so many levels, and remembering now what happened feels debilitating.”
Another Douglas Elliman agent said he found Tutor that evening in a bathroom with Oren and removed her from the room. The agent did not disclose his name out of fear of retaliation. He said he informed a top executive at the firm about the incident at the time but did not file a formal complaint.
Barbara Wagner, a public relations executive who worked with Douglas Elliman for more than 16 years, also came forward to The Times to confirm that allegations against the Alexanders had been floating around the firm for a long time. Wagner now runs her own firm and is not affiliated with Douglas Elliman.
“These allegations were so widespread that they were common knowledge in the residential real estate industry for more than a decade,” Wagner said.
Top Douglas Elliman agent Jessica Cohen also reported being hospitalized after a party spent with all three Alexander brothers in 2010, although exactly what transpired is unclear. Time-stamped photos sent to The NYT show Cohen spending time with the brothers throughout the evening. A medical report shows that a bystander found her alone in the street that night and called 911. Later, she woke up at Manhattan’s Mount Sinai West Hospital; her vomit-covered clothes had been taken off her.
In trying to piece together what happened that night, Cohen said she talked it over with other Douglas Elliman colleagues, including former CEO Dottie Herman. Douglas Elliman said Herman had no recollection of the conversation.
Then in 2012, Cohen also recalled that evening in confidence to Douglas Elliman Inc. President and CEO Howard Lorber over a game of chess, telling the exec she believed she may have been drugged by Tal and Oren. She asked Lorber to keep the incident a secret, out of fear of the consequences if it went public.
“I was terrified,” Cohen told The NYT. “I was afraid they would hurt me.”
A Douglas Elliman representative said that no formal complaint was ever issued and that Lorber wanted to respect Cohen’s wishes regarding confidentiality.
“Douglas Elliman is committed to fostering a workplace environment that is safe, comfortable and free of sexual assault or harassment,” the firm said in a statement sent to Inman. “As to Oren and Tal Alexander, the Company never received any complaints of sexual assault or harassment, nor was management aware of any such claims. Had any such complaints been received, those complaints would have been thoroughly investigated consistent with our policies and procedures, as has been the case with complaints made from time to time against others at the Company over the years.
“Over at least a decade ago, a broker told a senior executive about having blacked out at a social event,” the statement continues. “She said that she did not know what, if anything, happened, she did not specify who may have been involved, and she insisted on absolute confidentiality. Douglas Elliman respected her wishes, and she has been a valued colleague at the company since then. Another senior executive who the broker says she separately spoke to has no recollection of speaking with the broker about this subject.”
The NYT report states that on at least two separate occasions before Tal and Oren signed on to launch Official with white-label firm Side, different brokers raised concerns to Side’s leadership. A statement sent to Inman from Side, however, suggests that such conversations could not have taken place, since the firm upholds a policy of confidentiality prior to launching new partnerships.
“Side does not share information about partnerships with outside agents prior to the actual launch of the new company, so it is not possible that agents from other brokerages could have informed anyone at Side about these allegations before the launch of the firm,” an emailed statement from Side said. “The first time we heard about the allegations was a day before they were published. We never would have moved forward with or maintained a partnership had we been aware.”
Brian Meier, who was with Douglas Elliman for over a decade and is now affiliated with Berkshire Hathaway HomeServices, said that at a dinner he was invited to with Side executives, he was specifically asked what he knew about sexual assault allegations against the brothers. Meier reported much of what others have also said as the investigation has continued — that their reputation for sexual assault had been an open secret in the industry for years. He also said that it was known throughout the firm that Lorber was aware of at least one such case.
“Side knew about this stuff and still went forward with them,” Meier told The Times.
A New York-based female broker who wished to remain anonymous also told The NYT that she told then-Side executive Meredith Moore she would not work with the company if it partnered with the Alexanders.
Moore then passed those concerns along to CEO Guy Gal but received little reaction. Moore was included in a series of Side layoffs a few weeks later.
“I passed along the message, but there did not seem to be a sense of urgency,” Moore said. “He did not bring it up again.”
The revelations about the Alexander brothers’ former brokerage firms having some knowledge about their problematic history with women comes a few weeks after news broke that the brothers have become the target of an FBI probe. Dozens of women have now made public their alleged encounters with the Alexanders, recounting stories of being drugged, sexually assaulted and/or raped by them, sometimes in coordinated attacks.
There are currently two active lawsuits against Oren and Alon, and one against Oren, Alon and Tal. The incidents referenced in the lawsuits date back to 2010 and 2012.
Tal and Oren both stepped down from their positions as co-founders at Official last month.
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