Real Estate Industry News

The word "realtor" describes only one aspect of working in the real estate industry. Professionals who own their companies must have a firm grasp on every element that impacts operations - whether the commodity is land, housing or commercial property. The sections that follow span a broad spectrum of subjects key to growing a healthy business.

• Prospecting for Luxury Expired Listings? 3 Critical Game Changers for Getting to ‘Yes’

  By Diane Hartley

  What if you could reach out to hundreds of potential clients who were already warmed up to sell their luxury listing?

  When you work expired listings, that’s exactly what you’re doing.

  The problem?

  Reaching out to expired listings isn’t exactly a “secret” real estate marketing strategy, and sellers are often contacted by a number of other luxury real estate professionals pitching their services.

  So the real question is, how do you get these (often frustrated) sellers to say “yes” to you taking on their expired listing?

  The short answer: You need a fresh approach.

  Here are three tips to get your foot in the door.

  1. Lead With Empathy

  Expired listing sellers are often wondering, “Why doesn’t anyone want my home? What’s wrong with it? Should I even do this again?”

  The fact is these folks have likely spent some significant time and money trying to get their home to sell. Even though they’re ready to move on from their home, it can sting to know other homes in the area are selling while theirs is stuck on the market.

  And yet, most real estate professionals don’t address these feelings sellers might have right off the bat and go straight into their pitch.

  Alternatively, putting yourself in the seller’s shoes can soften your introduction.

  Debbie De Grote, founder and coach at Forward Coaching, guides her students to first approach expired listing sellers with an expired listing package. Inside that package, she suggests including an educational resource that explains why the home may not have sold and what to do about it.

  This addresses some of those feelings of rejection and lets them know an expired listing could be a result of poor marketing, targeting the wrong buyers or even having the wrong timing.

  In fact, at this point, the agent should not be pitching themselves. Rather, they should simply be breaking the ice and helping the seller realize their home does have potential with the right strategy.

  The right place to put your credentials and track record instead? Your cover letter. You can also include this in your expired listing package. Remember though, the goal is to get in the door and start the conversation—not to get a hard “yes” the day you deliver your package.

  2. Create a Clear Follow-Up Plan and Stick to It

  Dropping off a well-thought-out expired listing package is a great start, but the magic is in the follow up. In this case, aiming to get in front of the seller in person is ideal, but it may not happen the first time you try.

  That means you may have to schedule times to go back and knock on their door until you’re able to connect in person, and scheduling times for follow-up calls.

  And if you’re wondering what you might say? De Grote suggests just showing up, showing enthusiasm and being genuinely curious about their home can be beneficial.

  She recalls a loose script she used as a new luxury real estate professional in which she’d simply ask the seller if she could see the home.

  After the initial ask to see the home and having sellers object that they weren’t listing at the moment, she would ask again if she could see it anyway, in case she had a buyer or could think of one after seeing the home.

  If they still objected? She’d ask if she ever did come across a buyer, if they would still want to sell. If they said yes, she’d then let them know she’d be in the area anyway and would ask again if they’d let her come see the home.

  When she did visit the home, she’d give them confirmation that their home was a great space. She’d also let them know she didn’t have a buyer at the time, but that she could get it sold if they were willing to sit down and talk.

  She recalls this same script landing her ten expired listings in one month, and suggests new and seasoned luxury real estate professionals stick to a script when handling expired listing follow-ups.

  3. Don’t Let Your Lack of Experience in a Certain Market or Price Point Scare You

  All sellers—but especially ones with expired listings who are anxious to sell—want to know their luxury real estate agent has experience selling homes like theirs in their market.

  So, it makes sense that one of the most common questions from brand new luxury real estate professionals is, “What if I don’t have a track record selling luxury homes like the expired listings I’m after?”

  Fortunately, there are a few ways to get around this fear.

  The first way is to lean on the track record of the company you’re with.

  Instead of leaning on your own personal experience in certain price points and markets, make sure you show up knowing your company’s numbers instead. This is also something you can do in the cover letter you include in your expired listing package.

  The second way is to co-list.

  Will you give up some of your commission? Yes. However, you’ll get to see how a seasoned luxury professional handles an expired listing from start to finish—and you’ll likely gain more confidence going forward.

  Co-listing is one of the easiest ways to get a personal track record under your belt, and it creates a win-win for the agent you’re listing with.

  You can ask other agents at your company, or you can do some research and reach out to an agent who inspires you.

  In fact, this is one of the most valuable parts of becoming an Institute Member or earning your Certified Luxury Home Marketing Specialist designation.

  By joining an elite group of luxury real estate professionals, you open yourself up to opportunities to partner with some of the top performing agents in the industry.

  Ready to Give Your Luxury Real Estate Practice an Absolute Advantage?

  Becoming a member of The Institute for Luxury Home Marketing (The Institute) gives you access to some of the top producers in the industry and done-for-you marketing tools that give you a tremendous advantage.

  The Institute also offers a wide range of resources for you to invest in yourself at any stage in your luxury real estate career—even if it hasn’t begun yet.

  • Subscribe to our Estate of Mind podcast and/or Estate of Mind video series on YouTube for monthly deep-dives into specialized luxury real estate topics with industry experts;
  • Take our Luxury Livestream or Luxury Online training to qualify for Institute Membership and its many member benefits;
  • Visit your Membership Portal for brand-new training sessions, as well as check out our book, Rich Buyer Rich Seller: The Real Estate Agents’ Guide to Marketing Luxury Homes, which is available for free to all Institute Members and also available on Amazon.

  Diane Hartley is the president of the Institute for Luxury Home Marketing, a premier independent authority in training and designation for real estate agents working in the upper-tier residential market. Hartley brings her passion for luxury marketing and more than 20 years of experience growing and leading businesses to her role as president of the Institute.

  Source: REALTOR Mag, January 12, 2021  (https://magazine.realtor/technology/feature/article/2021/01/a-new-bucket-of-essential-technology-tools)

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• A New Bucket of Essential Technology Tools

  By Adrian Fisher

  The coronavirus pandemic has dramatically shifted the real estate industry. Agents have had to keep up with new in-person safety protocols, market changes, and consumer fears. As we settle into a “new normal,” real estate agents have to rely more heavily on technology to meet client needs.

  New technologies have come to market, and others have increased in importance during the COVID-19 pandemic. However, technology can be a challenge for many agents: Nearly half of all real estate firms say keeping up with technology is one of the most significant challenges they face over the next two years, according to National Association of REALTORS® data.

  To help wade through your options for tech solutions, consider the essential tools you’ll need to navigate this new real estate landscape. These six technologies allow any agent to thrive and find success.

  • Social media technologies. The top four technology tools real estate professionals turn to for generating high-quality leads are social media (47%), MLS site (32%), brokerage’s website (29%), and list aggregator site (29%), according to NAR. Creating engaging content is one piece of the social media puzzle. Another piece is using social media schedulers to push out consistent content to followers. Social media is relatively easy to automate, so use a scheduler that’s simple and intuitive. But don’t forget to engage. Add leads you get through social media to your CRM so they don’t go stale.
  • 3D virtual tours. This technology is especially useful for buyers who may want to avoid seeing multiple properties in person. They can view the 3D virtual tour and then decide whether the property deserves an in-person visit. This cuts down on property showings, too. If listing photos don’t do the property justice, 3D virtual tours can add greater detail and pique buyer interest. Drone footage used in virtual tours can highlight unique features of properties and potentially excite buyers more.
  • Virtual staging tools. Staging makes a difference when selling a property. Eighty-three percent of buyer’s agents say staging a home makes it easier for buyers to visualize living there, according to NAR’s 2019 Profile of Home Staging. But the task has become more difficult due to the industry’s COVID-19 guidelines. Still, buyers need help imagining how to use spaces. Virtual staging tools take the expertise of architects and technologies such as 3D Max, Photoshop, and 3D virtual staging software to show how a buyer can use a space. This is especially helpful for vacant properties.
  • Transaction management software. In-person contract signings are becoming obsolete, and this is especially true during the pandemic. No one wants to unnecessarily come into contact with others, which has made transaction management technology even more critical. DocuSign—a REALTOR Benefits® Program partner—dotloop, and RealPage IMS are popular transaction management solutions. (Through Jan. 31, members can sign up for a three-month free trial of DocuSign under NAR’s Right Tools, Right Now program.) The need for transaction management software will only increase given social distancing guidelines.
  • CRM. A robust CRM system will help you keep track of leads as they move through the sales funnel. Many agents already use a CRM, but disruptive new systems have made lead-tracking even more manageable. Look for a system that integrates with social media, since leads from social networks will only increase. A CRM that can verify leads also will help you stay aware of real prospects who need follow-ups and touchpoints. Don’t just settle for the CRM you already have if it’s not working for you. Find one that works with all real estate needs.
  • Email automation tools. Many agents use some sort of email automation to send buyers new listings. Email automation tools can do much more than that. Using this software, you can stay in touch with past clients, which will put you top of mind regarding referrals. You can segment lists and inform past clients about neighborhood happenings, send them seasonal greetings, and more. It’s too time-consuming to do this manually, so use software to set and forget follow-up emails.

  We’re going to see more technological changes in the real estate world as we move forward with COVID-19 protocols in place. Shifting to a more technology-driven experience can only help, as buyers and sellers appreciate keeping everything online. Agents can gain a competitive edge by relying on technology to move prospects down the sales funnel and lock in new clients.

  Source: REALTOR Mag, January 12, 2021  (https://magazine.realtor/technology/feature/article/2021/01/a-new-bucket-of-essential-technology-tools)

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• Creating a Culture of Contribution

  By Maria Patterson

  Born into an entrepreneurial family, Scott Nordby learned early on the importance of honesty, integrity, dedication and loyalty, both in his role as a successful REALTOR® and in life overall. These are also the principles around which Nordby and his wife, Lora, operate their firm, Berkshire Hathaway HomeServices Innovative Real Estate, which is why the pair is being named the recipients of RISMedia’s 2020 National Homeownership Award.

  Sponsored by Rocket Mortgage®, RISMedia’s National Homeownership Award is bestowed upon members of the real estate community who continuously demonstrate extraordinary contributions toward increasing homeownership and building better communities. The Nordbys exemplify these attributes through both their company culture and their family life.

  Scott Nordby started out by working in his family’s construction and development business in Washington state. He met Lora in 1999 while teaching a class, and the pair married in 2002. In 2003, the Nordbys founded Innovative Real Estate in the Denver metro area and joined the Berkshire Hathaway HomeServices franchise in 2017. Today, the firm is home to nearly 200 agents in four offices serving Colorado’s Front Range.

  Scott says his partnership with Lora is the "perfect combination."

  "I’m always focused on driving growth and supporting agents. She’s all about creating processes and systems," he explains.

  Throughout their business success, the Nordbys have adhered to a strong belief in family, balance and contribution. "We started Innovative Real Estate because we wanted to build a company where agents could be successful selling real estate while living amazing lives at home," says Scott. "We focus on mindset first, skillset second and activities third. We believe in abundance over scarcity and collaboration—with the end result always being to serve the client in the best way possible."

  With this philosophy at their company’s core, it’s no surprise that the Nordbys and their agents prioritize community involvement—whether it be teaching health and fitness classes, volunteering with schools and sports organizations, or getting actively involved at church.

  "We have always believed that when you get really plugged into your community, not only does it help benefit your business, but you also connect with others you might have never met otherwise," says Lora.

  The Nordbys and their agents have supported an array of community and charitable efforts over the years, including Almost Home, A Precious Child, The Sunshine Kids and the Detroit-based Empowerment Plan.

  Berkshire Hathaway HomeServices Innovative Real Estate is also dedicated to the cause of homeownership.

  "We are always thinking about our community and homeownership," explains Lora. "We provide free classes for first-time homebuyers, a program called Give Your Kids a Chance—where we educate parents on how to fund college through investment properties—and we help the senior community with downsizing or estate planning."

  Over the years, the Nordbys have demonstrated this same level of commitment to their family as well.

  "Lora and I have always put what is most important to us on our calendars first—date nights, kids’ sports, church events and vacations," says Scott. "We have always believed that you need to live your priorities. We think our clients really respect that we have boundaries. It helps us come back to the table as our best selves so that we’re able to serve at the highest level."

  Finally, when it comes to sharing advice with other real estate professionals seeking to become more involved in their communities, the Nordbys’ message is simple: "Find something you are motivated by."

  For more information, please visit www.innovativere.com.

  Source: RISMedia, December 17, 2020  (http://blog.rismedia.com/2020/creating-culture-contribution/)

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• Emergence of the Modern Agent: Do You Have What It Takes?

  By Lane Hornung

  Over and over again, across every industry, consumers say that more than anything else, they want to work with sales professionals they trust. That’s why modern real estate agents must prioritize the relationship, not the transaction. They put clients first—always.

  To prioritize relationships as a modern agent, it takes the right tool set, knowledge and insight. As Green Ocean TV notes, the modern agent is “educated, equipped and empowered” using the marketing, technology and systems that give them the edge in today’s highly competitive market.

  The modern agent needs to have a clear approach and message for homeowners and sellers. Today, that means presenting all the selling solutions available, and using technology to keep up to speed with all of the different options that your clients want to consider.

  Diving Into All Selling Possibilities Wins the Listing

  Imagine working with a lender that only extends loans to borrowers with 750-plus FICO scores. That lender could work for a lot of buyers, but definitely not for everyone, right? You need a mortgage partner that provides alternatives, solves problems and overcomes hurdles.

  Your sellers feel the same when choosing a real estate agent. But providing what they want requires a mindset shift. To be a modern agent, you have to present homeowners with all the selling solutions available. That includes instant offers from iBuyers and buy-before-selling options from bridge solution providers, as well as listing on the open market.

  If you don’t, to sellers, it’s like working with a mortgage partner that won’t offer your client a VA loan, even when it’s clearly their best option. How do you think someone feels when they know there’s a better solution for their needs, but their professional advisor doesn’t talk about it?

  Perhaps you’re a luxury agent and think discussing every selling option doesn’t apply to you. However, your clients need to understand why a high-end home isn’t going to get an iBuyer instant offer—or they’ll think you just don’t know what choices are available to them.

  A modern agent is all about providing alternatives and solving problems, and that helps them win more listings.

  Your Home-Court Advantage: Offer Every Selling Solution

  Your home-court advantage is the fact that clients want to work with you—and that’s why the modern agent remains at the center of every sales transaction, no matter what path their seller chooses. A modern agent helps clients better understand all selling options and decipher both the process and the financial possibilities. They can provide sellers objective pros and cons for all of their potential choices.

  zavvie empowers agents by providing the tools they need to stay at the center of every sale. Because the modern agent owns all selling solutions, they are the real estate expert, which clients expect and value.

  That’s why you have been successful. Because you brought your client solutions. Why would you fail to offer your sellers new solutions?

  When you bring your clients all the solutions and leverage your long-term relationship, you are unbeatable.

  Source: RISMedia, December 12, 2020  (https://rismedia.com/2020/12/20/emergence-modern-agent-have-what-it-takes/)

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• Hold On, That’s My Client!

  By Deanne M. Rymarowicz

  It sounds simple enough: To earn a commission, a broker or agent must be the procuring cause of the sale. But misunderstandings can arise about how that term applies in some transactions. Knowing the factors that establish procuring cause can help you avoid disputes and deliver better client service.

  Determining Procuring Cause

  NAR’s Arbitration Guidelines, created pursuant to Article 17 of the REALTOR® Code of Ethics, define procuring cause as “the uninterrupted series of causal events which results in the successful transaction.” In practice, the broker whose efforts set off that unbroken chain of events will be regarded as procuring cause.

  Which practitioner do you think is the procuring cause in this scenario?

  A buyer contacted broker Jim to show her several homes over a period of weeks. The buyer liked one home, and asked broker Jim to reshow the property to her and her mom, dad, and sister. Broker Jim showed the property a third time to the buyer, her dad, and a plumbing inspector. As they were leaving the home, the buyer said she would email broker Jim to follow up. A few days later, broker Jane, who had not shown the property, called broker Jim and offered a 25% referral fee, as broker Jane wrote an offer on the property for the buyer, which the seller then accepted.

  If you think broker Jim is the procuring cause, you’re falling into the common trap of believing it’s based on one definitive factor—in this case, showing a property. Many more facts, including follow-up communication with the buyer, the buyer’s motivations, and how broker Jane entered the picture, should be considered.

  Like the scenario above, most procuring cause issues arise when two cooperating brokers claim they’re entitled to the buyer’s side commission. Article 17 requires REALTOR® principals to submit procuring cause disputes to mediation and arbitration. An arbitration hearing panel will consider all relevant details of the underlying transaction, guided by a number of factors to determine procuring cause. Those may include:

  • The nature and status of the transaction.
  • Roles and relationships of the parties.
  • Initial contact with the buyer.
  • Continuity and breaks in continuity.

  What’s important to keep in mind is that it’s the interplay of these factors that indicates procuring cause. One factor alone will not decide a case.

  Avoiding a Dispute

  Being aware of the factors that affect procuring cause can assist real estate professionals in their day-to-day dealings with clients. Here are tips to help avoid a dispute:

  • Ask prospective buyers if they are working with another broker and whether they signed an exclusive representation agreement.
  • Always use a buyer brokerage agreement. Attend open houses and tour model homes with buyer clients, and sign in as their broker.
  • Stay in contact with buyer clients, keep a communications log, and, when they’re interested in a property, ask if they want to write an offer.
  • If you discover you’re writing an offer on a property that buyers saw with another broker, ask the buyers why they didn’t pursue the property with the other broker.

  When a dispute is unavoidable, don’t interfere with the transaction. Allow the sale to close. Then, the cooperating broker who believes he or she is the procuring cause may request mediation and, if that is unsuccessful, may file an arbitration request with the local REALTOR® association. To learn more, visit nar.realtor and search for “procuring cause.”

  Source: Realtor MAG, November 2020 (https://magazine.realtor/law-and-ethics/feature/article/2020/11/hold-on-thats-my-client)

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• Will the Return of iBuyers Be a Challenge for You?

  By Melissa Dittman Tracey

  As the COVID-19 outbreak began in the U.S. this spring, well-funded, Wall Street–backed iBuyers paused their instant cash offers to homeowners in a suddenly uncertain housing market. During the second quarter, iBuying giants such as Opendoor, Zillow Offers, and OfferPad purchased the fewest homes in more than three years—essentially since iBuying became mainstream.

  iBuyers mostly resumed purchases, albeit at a much slower pace, as state coronavirus lockdown orders lifted this summer. Will their promise of contactless closings amid social distancing protocols cause further disruption in the real estate industry, or are sellers favoring public listings to capture more equity in a now-booming housing market?

  iBuyers make instant cash offers to sellers who wish to bypass the traditional MLS marketing route, often for assurance and a quicker sale. However, homeowners tend to pay higher fees for the convenience. Buyers, too, may be drawn to iBuyer-owned homes that tout self-guided touring options and promises of vacant, sanitized homes.

  But while a hands-free transaction may be appealing, iBuyers face several challenges in growing their market share back to the 0.5% of sales nationally they commanded pre-pandemic. The field of iBuyers, which don’t rely on repeat customers to fuel growth, has become overcrowded, so there’s low differentiation among offerings in consumers’ eyes, Mike DelPrete, a real estate technology strategist who studies iBuying in the industry, said during a recent webinar.

  “You now have portals, aggregators, brokerages, and individual real estate brokers that have gotten into the space with their own iBuying programs,” DelPrete said. “There’s a lot of competition. But at the end of the day, customers taking an instant sale just care about the actual number and what their home is worth after all fees are taken out. It’s all about the number.”

  As more real estate brokerages get into the instant-offer game, iBuying firms are trying to vary their offerings to better compete and differentiate themselves.

  How iBuyers Are Trying to Grow

  Opendoor essentially began the iBuying movement in 2014, seeking to change the way real estate is transacted. Since then, iBuyer firms have multiplied nationwide. Looking to broaden its reach from 21 to 100 markets, Opendoor recently announced an IPO through a merger with Social Capital Hedosophia Holdings Corp. II. Opendoor generated $4.7 billion in revenue last year on 18,000 home sales across its 21 markets. However, Opendoor, like other iBuying firms, has struggled with profitability. In the first quarter, Opendoor reported net losses of about $20,000 per home, DelPrete’s data shows. iBuying companies appear willing to lose money as they vie for market share, DelPrete says.

  To try to ramp up profits, they’re taking a cue from some traditional real estate brokerages by adding in-house ancillary services, such as title insurance, escrow, and mortgage services. They’re also trying to unlock savings by targeting their single biggest expense: commission payments to buyer’s agents when selling the properties they own. More iBuyers are hiring real estate agents to offer new brokerage services.

  Starting in January, Zillow plans to have salaried agents work with sellers who seek cash offers through Zillow Offers. Opendoor started bringing real estate professionals onto its team in Phoenix this summer to support its “Home Reserve” iBuying platform, where it will list sellers’ homes and purchase their next home with an all-cash offer. Also, Offerpad, another iBuying giant, is bringing licensed agents onto its team. Its newly launched Real Estate Solutions Center allows sellers to have an option of accepting an instant cash offer or listing a home publicly with one of its affiliated listing agents. That brings it more in line with brokerage iBuyer offerings, such as Keller Williams’ Keller Offers and Realogy’s RealSure, in which licensed agents guide sellers through options of instant offers or a public listing on the MLS.

  Who Will Own the Space?

  At the same time that iBuyers’ purchases are down—Opendoor, for example, bought 50% fewer homes year over year in July, according to DelPrete’s data—selling on the MLS is increasingly attractive. Publicly listed homes are spending less time on the market, selling in a median 22 days in August, and fielding competitive offers in bidding wars, according to National Association of REALTORS® data. Homeowners may be more enticed to capture as much equity as possible by listing publicly than selling to a firm via an instant offer. “You could make the claim that the consumer proposition of iBuying is lower than what it was six months ago,” DelPrete says.

  Keller Offers, Keller Williams’ iBuying arm, uses agents to present instant offers and has seen demand pick up recently. “Many people have a curiosity over the cash offer, but that doesn’t mean they will take it,” says Gayln Ziegler, COO of Keller Offers. “In fact, we’ve learned that most won’t take it. They want to capture as much equity as they can, especially right now.” But for some sellers who need the assurance of a quick sale or are concerned about home tours in a pandemic, iBuying may be an option. Keller Williams agents can present multiple cash offers to clients from multiple entities through Keller Offers and also discuss the pros and cons of an instant offer versus a public listing.

  “Brokerages are becoming bigger contenders in this space,” Ziegler says. “Agents are starting to own this trend and not allowing it to overtake their role. We’ve found their role is even more vital in an iBuying situation. Agents serve as a trusted adviser and can help identify and solve their clients’ needs while making sure their client is represented with whichever route they choose.”

  Even before the pandemic, when iBuyers were beginning to amass some market share, the clear majority of consumers chose to work with an agent in a traditional transaction. And they will now, DelPrete says. “The data and evidence suggest single-digit market share for iBuyers going forward. It’s going to get harder for iBuyers when there’s less incentive to sell to them. There are lots of limits to their market share. There’s also the psychology of selling your biggest asset to a company, [as] opposed to using an agent who can guide you through the process. Companies that just outsource with all tech tend to fail. There needs to be a blend of technology and people. You can’t streamline all of real estate.”

  Source: Realtor MAG, October 20, 2020 (https://magazine.realtor/sales-and-marketing/feature/article/2020/10/will-the-return-of-ibuyers-be-a-challenge-for-you)

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