Brokers should model the traits they want their agents to have when moving forward in a new industry order.

It’s healthy to talk openly about the challenges and changes occurring in the real estate industry, but getting stuck on them is not. The moment is ripe with opportunity despite the initial discomfort of a new order in the profession following the National Association of REALTORS®’ settlement agreement. But “where there’s change, there’s always significant margin,” Peter Sheahan, a C-suite advisor and entrepreneur, told attendees at NAR’s REALTOR® Broker Summit in San Diego. 

Whether or not leaders reap the benefits of that margin is directly tied to their propensity for honesty, ability to adapt and willingness to lead with optimism, Sheahan added. 

The reality, he said, is that talking in a loop about what has changed or is changing in the industry is not the same thing as accepting those changes. And acceptance of change is the only thing that will enable leaders to move forward. Sheahan used the tumult caused by the Sitzer-Burnett case as an example but noted that the settlement gives some clarity to what change will look like.  

He said industry leaders like executives and brokers are tasked with reflecting on what’s different now, using the clarity provided by the settlement to create a plan of action.  

Question Your Assumptions 

The mindset of “this is how it’s always been done” is detrimental for a leader, Sheahan said. “You don’t want to shoehorn the past into the future.” 

He challenged brokers to collaborate with each other on areas of their businesses where they might be making assumptions about how things need to be done. Instead, Sheahan said, it’s important to take a step back from time to time and look at things objectively. It’s only when leaders are willing to challenge their own assumptions that they can make progress on systems and ways of doing things that are no longer working. 

Now is a great time for real estate leaders to challenge themselves to let go of resistance to the changes that are inevitable and look instead at the possibilities. “Your value proposition, in many cases, relies on your ability to lead through the change rather than waiting,” Sheahan said. 

Sheahan urged leaders to see the current uncertainty in the industry as an opportunity for growth, noting that agents are likely to be attracted to leaders who are creating the future rather than holding onto the past. He noted that brokers would be wise to prepare now for the changing compensation model rather than waiting until things feel like “they’re on fire.” 

“You do not want to spread anxiety and fear,” he said. “You have an obligation to be operating from burning ambition rather than a burning platform.” 

Take Responsibility and Lead 

Leaders often don’t realize that the people surrounding them are watching their every move. Sheahan used an experience from his own business as an example: He wanted to go home after a holiday party, but he was waiting on his staff members to leave first. A trusted staffer let him know that everyone was staying because Sheahan was still present. Sheahan says he didn’t believe the staffer but decided to test what she said. Once he left the party quietly, many of the staff members started leaving as well. 

The test was a moment of clarity for him. Once he realized his influence as a leader, he resolved to lean into soliciting feedback from his employees on how he could do so. He encourages brokers and real estate leaders to do the same. “Your agents will respond. They’re looking to you for direction,” Sheahan said. 

He stressed the importance of brokers being willing to figure out what their agents need and align those needs with their leadership style. He also spoke in depth about the importance of brokers leading with a mindset that aligns with their business goals. “Your job is to set the tone, and you should set a tone of optimism. If you are the leader in optimism, your agents will follow.” 

National Association of REALTORS®
Reprinted with permission

No one understands the unique challenges of running a brokerage like another broker. Invest in relationships and build rapport with other brokers so you have a support system.

In the wake of the announcement of the National Association of REALTORS® (NAR) lawsuit settlement on March 15, Erin Cestero, San Antonio Division President of JB Goodwin REALTORS ®, contacted other top brokers in her area. They met to discuss how best to communicate their value proposition to consumers and help address their questions about the role of real estate professionals. Cestero left the session more confident and recommended that her board begin holding similar meetings regularly.

The Broker Power Hour hosted by NAR and various local and regional meetups among brokers, has long been a source of education and camaraderie. Here are some other ways brokers can bolster each other and the industry.

Meet for Lunch

Once a month, Cestero [right] breaks bread with another local broker to share ideas. “Think about how often we pick up the phone when we have concerns in transactions,” she emphasizes. “It’s easier to solve problems if I have a rapport with another broker.”

Distribute Resources

Brokers can support each other by sharing best practices and tools, notes Leigh Brown, broker-owner at One Community Real Estate® in Concord, N.C. “If there’s an update coming from the state legal counsel, I’ll text my fellow brokers about it.” She might say, “I found this great framework for a policy and procedures manual. I’d love for you to have access to it as well.”

Become Active in Associations

“One of my regrets is not getting involved with associations sooner,” Brown [left] admits. “I thought I was on my own and had to behave that way. And when I found the associations and the caliber of my fellow professionals, it elevated my business.” In the future, she feels broker communication will be even more critical. “You don’t need to be lonely and isolated—the industry can be collaborative and healthy.”

Karen Hatcher, CEO and Head Broker at Sovereign Realty & Management in Atlanta, GA, agrees. An active member of NAR’s broker engagement committee, she recommends participating in local, state and national associations (including broker councils). Attend events, seek out broker tracks and suggest topics for conferences to cover, she adds.

Mentor Each Other

“As an independent broker, I lean on my broker network—and have since I became a broker,” says Hatcher. “If I’m taking on business outside of my area of expertise, I’ll have someone counsel me through it.” For instance, she currently relies on a broker operations coach to help her set up her operations, from software to policy manuals and connectivity. Whether the mentorships are formal or informal, Hatcher reaches out to experts to help her flesh out her ideas. For instance, when she was considering getting involved in association management, she asked a broker colleague how they thought it would impact her company.

Be Open and Empathetic

“I see a better level of communication between brokers now, which I attribute partly to fewer listings and brokers having more bandwidth,” observes Brown, “We’re doing a better job of taking care of each other as humans. When you go to a lunch, open house or event, you see more of, ‘How are you?,’ ‘Can I help you with anything?,’ and ‘How is your family?’” By the opposite token, she says, social media can sometimes be problematic because most users post upbeat stories rather than admitting to struggles.

Discuss What Works—and What Doesn’t

Don’t miss social gatherings at conferences, says Hatcher [right], noting, “You get ideas from these random conversations.” For instance, at a broker meetup at an NAR conference, she learned operational strategies from a colleague running two virtual real estate offices from her ranch. “I might have a conversation with someone from another part of the country and tell them I’m thinking of expanding into titles. And they’ll say, ‘Yeah, we did that three years ago.’ We’ll talk about the pros and cons, which will help me decide whether I want to pursue that. Being able to talk about challenges with counterparts in different states and regions so you don’t have the local competition—that’s where the NAR network has shown a big benefit,” she reflects.

…But steer clear of certain topics that should not be discussed among competitors

“As brokers, we need to be sensitive to the risk of legal liability,” Brown warns, saying she is careful not to disclose competitive information or discuss topics that could veer into the territory of antitrust violations. Do not discuss any confidential information, including pricing strategies, business plans and the specifics of buyer or listing consultations. “Any discussion of these topics risks potential legal liability,” she adds.

National Association of REALTORS®
Reprinted with permission

Making use of data is a great way to convey facts rather than headlines and educate your agents.

On a regular rotation, the National Association of REALTORS® collects and presents market data to help brokers stay up to date on market trends. Use these stats to help guide your agents and your business.

At the 2024 Broker Summit in San Diego in mid-April, Jessica Lautz, chief economist for NAR, observed that while current market trends are difficult, there’s opportunity embedded in the numbers.

Current Numbers of Note

• Nearly a third—27%—of the agents in the field are considered new, having entered the industry since 2020, which means many agents haven’t yet experienced a market with high interest rates and low inventory. Brokers can use this moment as an educational opportunity to offer training and support.
• Most brokerages, 82%, are one-office firms that average three full-time licensees, making the boutique brokerage the industry norm.
• As of March 2024, home prices were at a record high—higher than those in any other March period NAR has recorded. The opportunity here is that those who have been in their homes for a while have substantial equity, and if they want to move, many can do so comfortably. Brokers should take care to educate agents on how to approach clients. Interest rate buy-downs and large down payments can offset interest rates and high costs.

A Few Stats to Take Action On

One of the most effective ways to use NAR’s data and findings is to take relevant numbers and make business decisions that reflect the current trends. Here are a few:

Add Renovation Expertise to Your Repertoire

Lautz said the average age of a purchased home in today’s market is 38 years, so there is an opportunity to educate buyers and sellers on renovation projects and partner with renovation professionals.

Millennials Outpace Boomers Yet Again

Last year, the market was all about boomers as they outbid and outbought millennials, but the tides have turned and millennials are now overtaking boomers in the marketplace. In many cases, millennials are repeat buyers, Lautz said, observing the industry needs to remember that on the older end of the millennial generation, buyers are up to 44 years old, settled in a career, with a viable income and previous experience in the real estate market.

Buyers Want to Be Close to Friends, Family

At the height of the COVID-19 pandemic, buyers were moving from their original locations, sometimes for hundreds of miles, but that’s subsided quite a bit, Lautz says. They’re still willing to move a little further away than before the pandemic—up to 20 miles, as opposed to the 1989 average of 10 miles away. Still, for young people, the data shows that being close to friends and family is important to young buyers.

That said, about a quarter of buyers are still moving upward of 500 miles, but data shows that it’s to be closer to grandchildren, parents or friends.

Cash Rules the Market

Nearly one-third of buyers—28%—are all-cash buyers, so they don’t care about interest rates. This means that mindset is important for brokers and agents. Yes, interest rates are high, but a substantial portion of the market isn’t worried about interest rates.

‘Houses Before Spouses’

Single women and men make up one-third of the first-time buyer market, with women dominating the space, Lautz says. What’s more, 29% of Black first-time home buyers were women, signaling that they’re prioritizing homeownership. Priorities are different in today’s market, and real estate professionals need to be cognizant of what’s available for single people ready to get into homeownership.

Unique Living Situations

Still, with affordability being a key component for first-time buyers, companionship and support of varied kinds make for a market with diverse needs. Unmarried couples, friends and multiple generations of families are teaming up on homeownership to afford bigger or more comfortable living arrangements than they would be able to on their own.

Pets are also important, she says, observing that 19% of home buyers consider their pets’ needs during their search for a home.

Don’t Skimp on Tech and Online Marketing

A sticky trend—a figure that continues to surface time and again—is that buyers are purchasing homes without seeing them in person. Since the start of the pandemic-fueled housing frenzy, the number of buyers purchasing homes without setting foot in them is creeping up, and Lautz projects that it will continue to do so. That means now is as good a time as any to ensure technology is up to date and in use and that online options for potential customers to view homes are available.

National Association of REALTORS®
Reprinted with permission

Unruly real estate agents can cause issues small and large at the brokerages where they work, from creating distractions during training sessions to leaving the office with a stash of snacks, cups and plates intended for visitors and clients.

Brokers lamented problems such as these on Sunday at the Idea Exchange Council for Brokers Forum during the REALTORS® Legislative Meetings in Washington, D.C. The small discussion groups agreed that conversations with agents around these topics are never easy—but are necessary. 

One attendee, Ann Enos, a former longtime broker and now director of professional development at the Rhode Island Association of REALTORS®, noted that brokers are better off having uncomfortable conversations with disruptive agents sooner than later. Brokers shared the following tips: 

Think about the relationships: If disruptive agents’ behavior patterns aren’t addressed, it could sour relationships far and wide. Agents who conduct themselves with respect might sour on a broker who allows one agent to continually act in a way that causes problems. Likewise, an agent who is causing issues inside the office is likely causing issues outside the office, too, which reflects on the brokerage. Relationships with industry partners, clients and the local community could be at risk.  

Give agents more responsibility: Sometimes, disruptive agents need more responsibility. For example, an agent might be causing distractions during training sessions out of boredom. In these cases, Enos said, the agent could take on a more active role and lead a training if they have an area of expertise or a skill that helps them drive business.  

Consider the liability: Enos made clear that brokers must consider that their agents’ behaviors could cost them. Liability falls on the broker should an agent’s behavior turn from disruptive to ethically questionable. It’s the broker’s license that’s on the line, which is why brokers need not delay a conversation to establish boundaries and make clear the expectations for an agent’s conduct.  

Bring in the team lead: Brokers with teams can delegate some responsibility to team leads, especially if a troublesome agent is on one of those teams. Team leads are in positions of authority and should be ensuring the agents under them act in a way that aligns with the brokerage’s core values.   

Have empathy when warranted: Some brokers said that agents sometimes act out because of a need, which might be true in the case of an agent who routinely takes office supplies, food or what might be deemed as a household essential, like toilet paper. A conversation without empathy at its core might elicit shame or embarrassment on the part of the agent. These conversations should be handled with privacy and care in mind.

Likewise, if an agent is suffering through some kind of struggle, the brokerage can come up with creative solutions to aid, Enos said. When she was a broker, she initiated an “in-house charity” fund. She and her agents contributed a nominal amount to the fund when they had the financial means. She said that over time, the fund grew to a substantial amount and did help agents in need. It also boosted morale in her office.  

Suggestions for difficult conversations:

• Don’t wait too long to have a conversation. Doing so could empower an agent to continue their poor behavior.
• Establish boundaries. Make expectations for behavior clear, and when you can, tie it back to core values or office policy.
• Be direct in your communication while also listening and showing empathy. Agents might be having outside struggles that are driving the behavior. 

If all else fails, remember that an agent’s behavior is a reflection of you and your brokerage. If you must make adjustments to protect your reputation and avoid liability, do not hesitate, brokers said.

National Association of REALTORS®
Reprinted with permission

New Insights Hub provides information on your agents’ training, education and association involvement.

In the REALTORS® M1 database, brokers now have access to pertinent association-related data—credentials, education, volunteerism and more—on the agents in their office.

M1’s Insights Hub, which was once reserved for association leadership, has been reconfigured to include a dashboard for brokers. The announcement came from Laura Vinci, director of association technology services at the National Association of REALTORS®, at a meeting of the Broker Engagement Committee on Monday during the REALTORS® Legislative Meetings in Washington, D.C. Vinci said the data can help brokers assess where improvement can be made in their office in areas such as training, education and certifications.

George Zoto, NAR’s director of data science, noted that when a broker logs into M1 to access the Insights Hub, the various dashboards are automatically customized for their office. If a broker has more than one office, a dropdown menu enables them to switch between offices to gather agent data from each. Most importantly, Zoto said, the data is fully private and belongs to the brokers.

The dashboards provide data on agents, including:

• Code of Ethics training status by cycle
• Designations and certifications achieved through NAR
• Endorsements earned through NAR
• Involvement in NAR committees

An example of member data provided through the new Insights Hub feature, available to brokers through the M1

Zoto also noted that the association is looking for feedback from brokers on what other dashboards and data they’d like to see implemented. Brokers can then take the dashboard data and export, email or share it as needed. “Brokers are the owners of the data. NAR provides the insights,” Zoto said.

National Association of REALTORS®
Reprinted with permission

Post-transaction follow up boosts an agent’s sales and a brokerage’s bottom line, so make it easier for your agents to engage their clients over time.

Nearly 90% of home buyers and sellers say they’d recommend their real estate agent, according to National Association of REALTORS® data. Unfortunately, many never do it because they forget their agent’s name, says Shay Hata, Team Lead of The Buy Sell Love Chicago Team at BHHS Chicago. The reason? Instead of post-transaction follow-up (PTF), many agents focus on how quickly they can segue from contract to closing and onto their next client, observes Isaiah Hazward, a real estate agent and Director of Sales at Coalition Properties Group in Washington, D.C.

To ensure your team doesn’t miss out on repeat and referral business generated from PTF, “lighten the load for agents,” urges Hazward. Streamline some of this outreach so your agents can focus on what they’re best at: selling real estate. Here’s how.

Provide Perspective

Explain to agents that real estate is a long game. National Association of REALTORS® data finds that buyers expect to live in their homes for a median of 15 years. That’s why they must build client relationships over time, staying in touch long after closing day. If they’re doing enough PTF, agents who’ve been in the field for more than a couple of years should expect at least 80% of their business to come from past clients and their sphere of influence, shares Hata.

Systematize Follow-Up

To make sure agents stay on top of PTF, automate it via an integrated CRM and transaction management system, urge Hazward and Hata. Once you’ve chosen a system (Hata uses Realvolve and Hazward uses Brivity), write follow-up messages and newsletters and establish workflows.

Since workflows begin on closing dates, message content can be tied to the stage of home ownership. For instance, an email sent to someone five years post-closing might suggest a sump pump replacement. Then ask an admin to help individual agents learn the system and tailor messages to reflect their communication style. After closing, all agents need to do is initiate that client’s workflow—and the system will automatically send targeted messages. In addition, brokerages can create holiday cards and weather-related newsletters, which their agents can send to their databases.

Encourage Additional Outreach

Make sure agents supplement these automated messages with calls and texts, suggests Hazward. Of the 36 times clients hear from Coalition post-closing, about two-thirds of this outreach will be event invites, calls and texts, he explains. To prompt agents, take a cue from Hata and program your CRM to send quarterly reminders to text clients. Also encourage agents to follow and engage with their clients on social media, which will help them keep tabs on their life events (like moves).

Automate Reviews

Hata suggests that to ease the load further on agents, use RealSatisfied to automate customer reviews. All agents need to do is enter their client’s name and email address and whether they’re a buyer or seller. Then, the system will send the client a survey and review request. If they leave a review, the system can generate and share a post about it on realtor.com®, Facebook and Twitter. It also sends the client a thank you message with an e-gift card.

Ease Client Gift-Giving

Client gifts shouldn’t be limited to closing gifts or the holiday season. If an agent is to stay top-of-mind, sending small trinkets to clients to celebrate a milestone or life event makes a big difference.

To send gifts, all Coalition agents need to do is use a basic app the brokerage created with Jotform. Once they choose from a curated gift selection and enter basic client data, a Coalition admin handles the rest. Meanwhile, Hata’s team configured specific gifts for specific occasions: a branded onesie for a baby, windchimes for bereavement, chocolate-covered berries for a new job, and a branded poop bag holder for a new dog. This method streamlines the process and makes it easier for everyone.

Host Events

Both Hazward and Hata recommend hosting gatherings, like annual client appreciation parties. Since party planning can be time-consuming and agents don’t have the bandwidth, Hata suggests brokerages use staff to do the legwork, while individual agents pay a set per client fee.

For instance, brokerages can rent a hair salon for a day, with agents paying for individual client blow-outs. Using the same cost model, agencies can put together photoshoot sessions, movie nights, pick-your-own-pumpkin outings and Thanksgiving pie giveaways. “The key is for events to be close to your clients,” says Hata. So, if your farm area is big, consider smaller events in multiple locations. In the interest of lead generation, tell agents to encourage their clients to bring friends and family. After events, remind agents to follow up with clients and their invited attendees.

Track Follow Up Efforts

Monitor your team to ensure they stay on top of PTF, suggests Hazward. Since Brivity includes a tracking tool, Coalition is aware of all calls made on company-owned devices. To supplement this data, his agents fill out daily KPI trackers. Each week, the brokerage’s leadership team reviews this information and, when necessary, advises agents on outreach efforts.

Motivate Wth Incentives

Consider following Coalition’s example and offer agents monthly awards for PTF and other business-promoting activities. Since they began such a program a few months ago, Hazward estimates a 20-30% increase in contacts and appointments.

National Association of REALTORS®
Reprinted with permission