Best 10 States for Real Estate Agents

1. West Virginia

• Cost of living ranking: 9th
• Agent competition ranking: 7th
• Median annual agent salary: $70,830 (18th in the country)
• Homeownership ranking: 1st

Within the tree-covered Appalachian Mountains, West Virginia, is the state that tops our list of best states for real estate agents. More than just its low cost of living, West Virginia ranks number one primarily because it has both the highest percentage of owner-occupied homes and homeownership rates in the country at 74.5% and 79.4%, respectively. This data tells us that listings are abundant and that homebuyers are financially ready to purchase.

Another reason that West Virginia ranks as the best state to do real estate is its low agent competition. With 0.486 agents employed per 1,000, it’s ranked seventh among all the US states. Combining this data informs us that agents wouldn’t have to market themselves too hard to find clients in West Virginia.

2. New Hampshire

• Cost of living ranking: 42nd
• Agent competition ranking: 3rd
• Median annual agent salary: $73,830 (18th in the country)
• Homeownership ranking: 6th

New Hampshire ranks high on our list of the best states to do real estate primarily because of its low agent competition. It has the third-lowest agent competition rate, and the mean annual wage of agents is $73,830—about $4,000 more than the national average. This fact means it’s ideal for new real estate agents to start their careers without worrying about a market saturated with many experienced agents. 

New Hampshire also ranks well in homeownership, with a 79.4% homeownership rate and 72.3% owner-occupied homes. In fact, the only area in New Hampshire that doesn’t rank well compared with other states is its cost of living—although it takes a specific type of person to handle the winters. With a love of winter gear and activities, a real estate agent could absolutely be successful in New Hampshire. 

3. Vermont

• Cost of living ranking: 41st
• Agent competition ranking: 8th
• Median annual agent salary: $100,750 (3rd in the country)
• Homeownership ranking: 4th

For agents looking for a reason to pack their bags and head Northeast, the salary of a Vermont real estate agent tops six figures at $100,750, which is the third highest in the nation overall. Another benefit of Vermont is the agent employment rate of 0.52 out of every 1,000 people!

Although the median home value is the 21st highest of all the states, this could actually benefit agents wanting to work with first-time homebuyers. It also has the 4th highest homeownership rate, meaning that Vermont residents are more likely to want to purchase a home. Time to start packing your snow boots and cross-country skis!

4. Tennessee

• Cost of living ranking: 10th
• Agent competition ranking: 26th
• Median annual agent salary: $84,110 (7th in the country)
• Homeownership ranking: 22nd

Based on our exclusive variety of calculations, Tennessee is the fourth-best state to be a real estate agent. Even if you have no interest in the country music scene, Tennessee has plenty of other things to offer as a home state, like a relatively low cost of living (10th overall), a high number of available homes (32,362, ranking 5th) for agents to sell, and a homeownership rate of 70.9% (15th). 

Combined with a high salary for real estate agents at $84,110, Tennessee would be an excellent entry point for any new real estate agent trying to start their business. Plus, Nashville is among our top 10 best cities for real estate agents.

5. Michigan

• Cost of living ranking: 15th
• Agent competition ranking: 4th
• Median annual agent salary: $68,430 (21st in the country)
• Homeownership ranking: 7th

As our fifth-best state for real estate agents, Michigan is ideal for agents who want to keep expenses low as they build their business. It boasts a low cost of living (15th on our list in terms of affordability) and has the 4th lowest rate of agent competition in the country. This combination means new agents could market to their farm area or niche audience more affordably.

The only perceived drawback of an agent starting in Michigan is the lower salary, which ranks in the 23rd spot at $68,430. However, with a low cost of living and low competition, agents could expect to be successful here and grow their knowledge. Plus, with its position near the Great Lakes, agents could have fun in unique real estate niches like lakefront properties!

6. Maine

• Cost of living ranking: 38th
• Agent competition ranking: 10th
• Median annual agent salary: $73,110 (9th in the country)
• Homeownership ranking: 3rd

If you’ve ever had the pleasure of spending a summer day in Maine or even a crisp fall morning, you will understand the appeal of living in the country’s furthest state in the northeast. Maine is one of the best states for real estate agents primarily because of its low agent competition (ranking number 11 on our list) and high rates of both homeownership (77.2%) and owner-occupied homes (74.1%). With such high homeownership rates, agents can potentially help clients across varying generations of home buyers and sellers. 

On the other hand, Maine doesn’t rank as well in cost of living (38th among other states) and home values, with the median price being $373,700. However, if you’re prepared with a financial cushion, Maine offers plenty of listing opportunities.

7. Connecticut

• Cost of living ranking: 39th
• Agent competition ranking: 1st
• Median annual agent salary: $84,810 (15th in the country)
• Homeownership ranking: 31st

Even though Connecticut is the seventh-best state to get a real estate license on our list, it is the number one state for low agent competition, with only 0.27 agents per 1,000 people. This statistic alone is a great reason to start or grow your real estate career in Connecticut. However, another huge benefit of doing real estate in Connecticut is the high annual wage of $84,810—the 4th highest in the nation.

Even though Connecticut ranks exceptionally well in agent competition and salary, the major drawback is its high cost of living, ranking 39th in affordability. However, such a high salary could be worth the risk for aspiring agents. The housing market in Connecticut is also growing at a healthy rate, with a 9.6% increase in home prices year over year. Check out our 2024 housing market charts if you’re considering the move.

8. New Jersey

• Cost of living ranking: 40th
• Agent competition ranking: 2nd
• Median annual agent salary: $82,490 (5th in the country)
• Homeownership ranking: 43rd

New Jersey ranks eighth on our list of best states to be a real estate agent because of its low agent competition (second on our list, just below Connecticut) and high agent salaries (sixth overall). Agents can expect to make an average of $82,490, the fourth-highest salary overall. 

However, this state has an undeniably high cost of living, being just a stone’s throw from Manhattan, ranking 40th. It ranks just slightly more expensive than Connecticut, which ranks 39th. However, the higher agent salary may balance out this drawback for experienced agents. In addition, New Jersey has a low homeownership rate of 59.9%, which could limit potential business.

9. Minnesota

• Cost of living ranking: 21st
• Agent competition ranking: 13th
• Median annual agent salary: $62,050 (39th in the country)
• Homeownership ranking: 8th

Aside from bordering Canada and Lake Superior, Minnesota has a great real estate market for agents. It’s one of the best states to be a real estate agent because of its homeownership rate of 71.8% (eighth overall) and its rate of owner-occupied homes at 72.1%. These two real estate statistics show that Minnesota residents generally choose to buy instead of rent, making it a great place to get real estate listings.

Minnesota also ranks better in terms of cost of living than our previous three states, with an index of 94.1 (ranking 21st). It also has a relatively low competition rate for agents, with only 0.654 agents for every 1,000 residents.

10. Mississippi

• Cost of living ranking: 1st
• Agent competition ranking: 11th
• Median annual agent salary: $67,770 (22nd in the country)
• Homeownership ranking: 11th

The main reason that Mississippi is one of the top 10 best states to be a real estate agent is due to its low cost of living—ranking number one among all states! Mississippi also has high homeownership rates (10th highest) and low agent competition, with only 0.635 agents per 1,000 residents—better than Minnesota and Tennessee.

However, the flip side of its low cost of living is that its homes have a low median home value of $271,200. This affordability is almost the lowest in the US, ranking 50th. To combat the decreased income from lower home prices, agents will have to sell more houses—but the combination of homeownership rates and agent competition makes that extremely possible.

Full Data & Methodology for Best States for Real Estate Agents Data

The complete data can be viewed here, but read our breakdown and methodology below.

Our proprietary tool collated and analyzed data sets from numerous verified sources, ranking each state. We started by dividing all the data into five categories and then gave each category an equal weight of 20%. In addition to the categories, multiple data points were gathered to depict each location’s ranking accurately. This ranking system ensured objectivity and resulted in a score for each city. 

Cost of Living Ranking

• Cost of living index (data from World Population Review): The cost of living ranking is based on the cost of living index per state. The lower the cost of living, the more agents can afford. 

Agent Competition Ranking

• Agent employment per 1,000 people (data from US Bureau of Labor Statistics): Fewer agents per 1,000 is better for agents as they will experience less competition.
• Location quotient (data from US Bureau of Labor Statistics): This measures the density of and occupation in an area compared with the US average; fewer agents per location gives less competition and more opportunity for agents to succeed.

Agent Salary Ranking

• Annual mean salary range (data from US Bureau of Labor Statistics): Higher salaries indicate better opportunities for agents to make more money in the specific state. 
• Hourly median salary range (data from US Bureau of Labor Statistics): Similar to above, there are more opportunities to earn a higher wage, but also research hourly for more accuracy and to account for part-time agents. 

Home Value & Commission Ranking

• Median home price (data from World Population Review): The higher the home prices, the higher the agent commission. 
• Average rent (data from World Population Review): Similar to above, rental commissions are typically one month’s rent, so the higher the rental price, the more money agents earn. 
• Number of homes available (data from FRED): When there are more available homes in the area, agents will have more opportunities to work with clients, increasing their likelihood of completing more transactions. 
• Median days on the market (data from FRED): When median days on the market are lower, homes sell quicker, meaning agents can complete more transactions. 

Home Ownership Ranking

• Homeownership rate (data from Census Bureau): If the state has a high homeownership rate, this indicates that people relocating to this area will likely buy instead of renting.
• Percentage of owner-occupied homes (data from PropertyShark): Similar to above, if homeowners are occupying properties in a particular state, it indicates interested buyers and sellers, which gives agents more business opportunities. 

Frequently Asked Questions (FAQs)

What is the best state to be a real estate agent?

What are the worst states to be a real estate agent?

What state pays real estate agents the most?

Bringing It All Together

Choosing the best states for real estate agents isn’t quick and easy. We used extensive data on various important factors, like cost of living, agent salary, median home values, homeownership rates, and real estate agent competition. However, other factors can’t be calculated for all agents, like the location of their family and climate preferences. If you’re looking for a fresh start and the highest chances of real estate success, pack your bags and business and head to one of our top ten states.

Which state do you live in? Let us know how the market is by you!

The post 10 Best States for Real Estate Agents for 2024 appeared first on The Close.

As an agent and homeowner, I represented myself during the sale of my as-is property five years ago, and I’m going to help you be prepared to answer “How do I sell my house as-is?” for your clients.

What Does It Mean to Sell a House As-is?

Selling a home “as-is” means that the seller plans to sell the house without making any repairs. In other words, “what you see is what you get.” Purchasing a house as-is implies that the buyer will acquire the property in its current condition, with no further repairs, cash concessions, or enhancements paid for by the seller. The buyer ultimately assumes all risks and responsibilities for any issues that may arise post-purchase.

Generally, properties advertised as-is are priced lower. The buyer is expected to shoulder additional renovations and improvement expenses once they become the official homeowners. Therefore, potential buyers should prepare for these extra costs.

Reasons to Consider Selling a Property As-is

There are various reasons sellers will sell their home as is. It can be a homeselling myth that all as-is properties have significant defects. A seller also may sell a home as-is at full market value, even if the repairs are minor, if they’re underwater on their mortgage, or if it is a short sale. They simply don’t have the financial resources to pay for anything.

Below are some of the most common reasons real estate agents might want to consider selling their clients’ houses as-is:

• Insufficient finances: This is the most common reason sellers choose to sell their properties as-is. Home improvements and repairs can be expensive. Selling a house as-is allows the homeowner to avoid those costs.
• No time: Renovations can cause delays and may not add enough property value to justify the expense. So, if time is critical, it’s best to assist clients in selling their property as-is and avoid the added stress of renovations.
• Price reduction: A homeowner may need to sell as-is due to the listing price needing a reduction. Before dropping the price, figure out why the home isn’t selling.
• Lack of desire to do renovations: Your clients may not want to deal with the hassle of renovations.
• Convenience: If a home is inherited or needs to sell post-divorce, the seller might opt for an as-is sale, sidestepping the responsibility of preparing the house for the market.
• Inheritance: A seller who hasn’t lived in the house may list it as is because they don’t know the actual condition.
• Substandard conditions: When your client’s home is unlivable, selling as-is to a real estate investor may be the best option.

Pros & Cons of Selling a House As-is

Like any real estate transaction, selling a house that needs repairs has upsides and downsides. Some of its pros and cons are the following:

How to Sell a Home As-is as an Agent in 7 Steps

In learning how to sell a home as is, you must showcase everything, including the flaws. It doesn’t exempt you or the seller from disclosure of all material defects. From doing market research through closing, you must work diligently to get the most money for your clients, negotiate with buyers, and facilitate a smooth closing.

To learn how to sell a house as-is and market it successfully, follow these steps below:

Step 1: Do a Comparative Market Analysis (CMA)

As a real estate agent, you will help homeowners set a reasonable price by conducting a comparative market analysis (CMA) of similar recently sold homes in the area. As with any CMA, you’ll need to find properties within the same relative location, the same number of bedrooms and bathrooms, similar square footage, etc. However, pay particular attention to the homes you compare to your subject property; they might be in excellent condition, where your seller’s property needs work. You may need to make adjustments in your CMA for deferred maintenance.

Once you find a few homes to compare to the subject property, set a baseline and adjust your numbers as you uncover the defects. This process will help you arrive at a reasonable price and help you answer, “How do I sell my house as is?” for your seller clients.

Step 2: Facilitate a Thorough Home Inspection Before Listing

Securing a home inspection before listing and selling a property as-is is useful. This thorough examination involves checking the property’s condition, including structural, electrical, and plumbing systems and other issues that clients may not be aware of. It allows sellers and agents to disclose everything upfront, potentially speeding up the sale of your client’s home. A professional inspection typically costs $200 to $500, depending on the location, home type, and square footage.

Buyer agents should encourage their clients to get an inspection and not rely solely on the seller’s inspection report. The seller’s inspection is about disclosure, while the buyer’s inspection is to protect them from buying a property with repairs beyond their abilities and budget.

Suppose you are interested in pursuing a career as a home inspector. If so, check out our guide, How to Become a Home Inspector in 5 Easy Steps, which provides helpful information on how to get started.

Step 3: Get Cost Estimates for All Potential Repairs

Obtaining cost estimates from local contractors will give you better bargaining power if buyers try to haggle the as-is price (which they still may!) Share these estimates with the seller to see if it will net them more at closing to make some repairs.

Here are some examples of home repairs with their average costs:

Step 4: Set a Reasonable Price

Setting a fair and honest price that considers the property’s good and bad features is essential. Otherwise, you’ll get few showings. Proper pricing helps you market the property confidently to potential buyers while ensuring homeowners get the best deal. Use the comp data from your CMA, the list of defects, and cost estimates to determine the best price for the as-is property.

Example: A fair market value for a two-bed, two-bath home is $300,000. However, the roof needs $9,800 worth of repairs, and the electrical panel needs replacement for $3,000. Factor that into the cost by lowering the price by about $10,000-$13,000. While this is an oversimplification, the general concept should be used to calculate a fair price for an as-is property. You don’t have to deduct the entire repair cost but stay in the ballpark.

My Story

When I sold my home, I listed it at full market value but received a $30,000 below-asking price offer. I agreed to sell “as is” at that price, reminding the buyers of their inspection contingency if they wished to back out if they didn’t like my as-is terms. When the inspection revealed a $22,000 cost for a septic system replacement, the buyers backed out. We repaired the septic and eventually sold the property for the full price. Lesson learned: always consider repair costs when setting the selling price, especially with inspection contingencies in play.

Step 5: Disclose & List All Defects

Sellers and real estate agents must disclose all material defects, so they should provide a comprehensive seller’s disclosure report detailing all issues with the house, no matter how big or small. Staying proactive will help avoid potential legal problems if the buyer discovers undisclosed defects later and decides to withdraw from the deal or, worse, sue you and your client.

Step 6: Market the Property

Create a property description that highlights the positives of your listing but mentions that the sellers are selling “as is.” If there are significant repairs, such as a new roof, heating, or septic systems, include this. Choose real estate words to write a realistic yet optimistic description, targeting the right audience. Most often, people looking for as-is homes will be fix-and-flippers, investors, or individuals looking for a renovation project to call their own.

It goes without saying to use the Multiple Listing Service (MLS), Zillow, and Realtor.com to connect with potential buyers. But also, post your listings on social media platforms and send out targeted email marketing campaigns to your sphere of influence (SOI). Remember that although the home may seem like it may be in disrepair, it is someone’s dream home. The right price and marketing strategy will bring the perfect buyer for your as-is listing.

Zillow Premier Agent offers analytics and tracking tools to help you manage and optimize leads. The platform provides detailed reports on lead volume, response rates, and conversion metrics to see how well your advertising efforts are paying off. If you’re a team lead, ZPA’s performance analytics also track the team’s effectiveness, ensuring everyone contributes efficiently to your team’s overall success.

Step 7: Complete the Sales Process

When you find an interested buyer, the remaining process will be similar to a traditional sale: receive an offer, counteroffers (if applicable), negotiations, and closing. Remember: while the buyer can request an inspection, the sellers can reject any offer contingent on making repairs to the home, and the buyers can negotiate if this issue arises. 

Tips for Real Estate Agents to Easily Market & Sell an As-is Property

After learning how to sell a house as-is, use these tips to help you easily market the as-is property. The following tips will help you make a smooth and successful sale:

• Tip 1: Be transparent about the home’s current condition. Clarify in the listing and any marketing materials that no repairs will be made or problems addressed. Putting this information in writing in the purchase and sale agreement is imperative. Additionally, disclosing inspection details establishes trust with potential buyers and makes the situation more appealing, which could result in a faster sale. Moreover, the inspection report can assist you in setting a fair price for the home.
• Tip 2: Remember to keep things clean and organized. While the sellers may not be inclined to invest in significant upgrades, that doesn’t mean they should disregard the importance of presenting the home in the best possible condition. This includes keeping the yard trimmed, surfaces clean, beds made, and dishes put away while minimizing clutter as much as possible. Always be prepared for viewings, as you would with any home sale.
• Tip 3: Know how low your client can go. Work out the lowest offer your client would accept in advance, and be prepared to counteroffer quickly if someone bids lower than that. Some buyers might still try to negotiate based on the home inspection results when you’re selling a house as-is. If repairs are needed and only a few hundred or thousand dollars are in the way of closing the deal, your client can either agree to do the repairs or reduce their asking price. This can make a solution that works for both parties.

Frequently Asked Questions (FAQs)

What does it mean to sell a house as-is?

Is it good to sell a house as-is?

How does selling a house as-is affect its price?

Final Thoughts 

If your client asks, “How do I sell my house as-is?” and doesn’t have the funds or the time to invest in house renovations or does not want to deal with prolonged negotiations, you can use this information to help them. Nevertheless, this does not relieve you or the seller from the disclosure obligation. They must inform prospective buyers of any issues that may deter them from purchasing the property.

Have you sold a property as-is? We’d love to hear your story!

The post How Do You Sell a House As-is? Everything Agents Need to Know appeared first on The Close.

Top 5 States with the Best Housing Market

Want to know which state has the best housing market? These top five states with the best housing markets in the US have seen an increase, or rank higher, in median home prices, number of homes available, new construction, and median household income. The states with the best housing markets have also suffered less from the increasing mortgage rates and current housing market than other states. Keep reading to find out if your state made it to the top five!

1. New York

• Property Value Ranking: 10th
• Inventory Ranking: 6th
• Affordability Ranking: 24th
• Economy Health Ranking: 11th

New York is “the city that never sleeps,” and it’s no wonder, given that it has the best housing market in the US. As of May 2024, a whopping 32,957 existing homes were up for grabs, securing its position as the 4th highest in availability across the US. Amidst the low inventory market, the city still boasts a significant number of available homes. Moreover, the state saw an impressive 4,076 new constructions, ranking it 9th highest in the country. 

With a median household income of $74,314 and a median home price of $819,900 (1st), the state offers a mix of affordability and opportunity. The impressive 9.62% appreciation rate and the lowest current mortgage interest rate at 6.29% make it an attractive prospect for prospective homeowners. Moreover, New York boasts a commendable ranking in terms of crime rate, landing the 10th lowest spot, and excels in community well-being with the 5th highest index score. No wonder New York’s real estate scene is creating a buzz!

Are you considering pursuing a real estate agent career in New York? Remember that New York does not have reciprocity agreements with any other state. However, if you’ve completed qualifying education outside of the state, you can apply for a waiver for the required course(s) for the state license. For more detailed information, look at our guide, Real Estate License Reciprocity & Portability: A State-by-State Guide.

2. Utah

• Property Value Ranking: 24th
• Inventory Ranking: 19th
• Affordability Ranking: 1st
• Economy Health Ranking: 17th

The Beehive State has been ranked second among all states with the best housing markets. It’s also recognized as the most affordable state for housing, which should make you feel financially secure and comfortable. With an average mortgage rate of 6.36% (8th lowest), a tax burden of 0.58% (8th lowest), a relatively low cost of living index (29th lowest), and a median household income of $79,449 (12th highest), the Beehive State is indeed a great place to call home.

Utah’s economy is thriving, ranking 17th overall. It scored 10th highest for community well-being and boasts the 11th lowest unemployment rate at just 2.9%. Not to mention, there’s a healthy housing market with 9,229 homes available and 2,309 new ones constructed. Moreover, Utah has a high median home price of $440,200 (15th highest) and a low number of foreclosure filings at 576 (18th lowest). These statistics highlight the stability and growth of Utah’s housing market, making it one of the states with the best housing market in 2024.

3. Virginia

• Property Value Ranking: 33rd
• Inventory Ranking: 15th
• Affordability Ranking: 15th
• Economy Health Ranking: 3rd

Virginia is one of the states with the best housing markets in 2024, coming in third among all states. This “Mother of Presidents” state also ranked third in the healthiest economy overall. Its unemployment rate is 2.7%, the 6th lowest, ensuring you can find employment if you move to Virginia. Moreover, the state has a high community well-being index score, ranking 11th highest and maintaining a low crime rate (8th lowest). These positive indicators make Virginia attractive to people seeking a stable and prosperous living environment.

Moreover, with an existing home inventory of 13,465 (18th-highest) and 2,386 new constructions, where Virginia has more new construction than any other state, ranking 15th-highest, so buyers looking for a brand-new home or planning to move will find a growth in available housing. The median household income is $80,963 (11th-highest), and the median home price is $304,400. The average mortgage interest rate dropped from 7.31% in 2023 to 6.55% in 2024, indicating an optimistic view for real estate agents and investors.

4. Massachusetts

• Property Value Ranking: 4th
• Inventory Ranking: 33rd
• Affordability Ranking: 29th
• Economy Health Ranking: 1st

Massachusetts, securing the fourth spot, has emerged as one of the states with the best housing market in the US this year. This Bay State ranked 1st in community well-being index score, 2nd lowest in crime rates, and 18th lowest in unemployment rate at 3%. This data ensures that people interested in moving to Massachusetts will indeed have an excellent living environment, with a strong job market providing financial security. 

Furthermore, this state ranked 4th overall for property value ranking, indicating a high median home price at $614,700 (6th highest), a high appreciation rate at 9.12% (13th highest), and a reassuringly low number of foreclosure filings at 1,314 (33rd lowest). This state’s stability and potential for growth make it an ideal choice for home investors. People in this state have the 3rd highest median household income ($89,645), confirming they can buy a house confidently at current rates and terms.

5. Wisconsin

• Property Value Ranking: 17th
• Inventory Ranking: 21st
• Affordability Ranking: 26th
• Economy Health Ranking: 7th

Wisconsin, also called the Badger State, was ranked as the fifth-best real estate market in the US in 2024. This is because of its strong economy, ranking 7th overall. The state also has a low unemployment rate of 2.9%, the 12th lowest in the country. Additionally, Wisconsin has relatively low crime rates, ranking 12th lowest, and a relatively high community well-being score, ranking 25th highest. These factors show that Wisconsin is suitable for real estate investment and has the potential for market growth.

The state’s high appreciation rate of 9.28% makes it an attractive place for real estate investment. However, potential investors should be cautious, considering its ranking of 34th for median home prices ($297,100) and 25th for foreclosure filings. The state also has a reasonably low inventory, ranking 21st overall, and a high property tax burden of 1.85% (46th lowest), which should be factored into investment decisions.

Top 5 States With the Worst Housing Market

Shifting from the best states to buy real estate, the five worst housing markets in the US suffer from a low number of available homes and new construction as mortgage rates rapidly increase. The impact of low household incomes, which are significantly lower compared to other housing markets in the country, is a major factor that makes it difficult for potential homebuyers to afford homes, even with lower home prices. Read on to see if your state is among the worst to buy a house in.

1. Kentucky

• Property Value Ranking: 37th
• Inventory Ranking: 28th
• Affordability Ranking: 49th
• Economy Health Ranking: 46th

Kentucky has been identified as the worst housing market in the US. This is due to its extremely low median home prices, which rank 49th highest in the nation, and a low median household income, which is the 45th highest. Further, Kentucky faces the challenge of extremely high average mortgage rates, standing at 6.62%. The state is also battling a high unemployment rate of 4.6% and a meager community well-being index score, ranking 46th highest in the country.

The state also faces challenges in boosting its low housing inventory, with only 7,704 available homes (ranking 30th) and 1,602 new construction properties (ranking 23rd). For real estate investors, it’s crucial to exercise caution when considering investments in this state due to its relatively low appreciation rate of 6.42% compared to other states. This caution will ensure you are well-informed and prepared for potential risks.

2. Missouri

• Property Value Ranking: 36th
• Inventory Ranking: 24th
• Affordability Ranking: 44th
• Economy Health Ranking: 42nd

Missouri, known as the Show-Me state, has a challenging real estate market. It ranks second among the worst housing markets in the US. This ranking is driven by high average mortgage rates (49th lowest) and low median household income (41st highest), making it tough for people to purchase homes in the state. 

In addition, Missouri is facing economic challenges, with a high unemployment rate of 3.5%, higher crime rates (ranked 41st lowest), and a low community well-being index score (34th highest), which could discourage potential residents from relocating to the state.

3. Texas

• Property Value Ranking: 50th
• Inventory Ranking: 2nd
• Affordability Ranking: 46th
• Economy Health Ranking: 45th

Despite being at the top for new construction and having the second-highest number of homes available, Texas surprisingly has the third-weakest housing market in 2024. This ranking is due to its low property value, with rankings of 49th for foreclosure filings, 45th for appreciation rates, and 21st for median home prices. Besides that, the Lone Star State faces a hefty property tax burden of 1.8% and average mortgage rates of 6.61%. The state also grapples with high unemployment rates (4%), crime rates, and a low community well-being score.

4. Washington

• Property Value Ranking: 46th
• Inventory Ranking: 11th
• Affordability Ranking: 47th
• Economy Health Ranking: 39th

Amid the high volume of homes available on the market (15th highest), new construction (11th highest), and median household income (8th highest) in the US., Washington suffers from the high cost of living (43rd lowest) and average mortgage rates (48th lowest). These rankings provide a comprehensive view of the housing market conditions in Washington. 

In addition, the Evergreen State suffers from relatively low median home prices ($297,100), low appreciation rates (3.19%), quite a high property tax burden (0.94%), very high unemployment rates (48th lowest), and high crime rates (44th lowest), making it one of the worst housing markets in the US.

5. Oregon

• Property Value Ranking: 49th
• Inventory Ranking: 27th
• Affordability Ranking: 27th
• Economy Health Ranking: 37th

Oregon’s housing market presents various challenges. Compared to other states, Oregon has relatively low median home prices, ranking 38th highest, and appreciation rates, ranking 48th highest. Additionally, the high number of foreclosure filings contributes to the market’s weakness, ranking 21st lowest. On a positive note, the state performs well in community well-being, ranking 14th highest. However, Oregon struggles with high unemployment, standing at 4.2% (39th lowest) and crime rates, ranking 42nd lowest.

Full Data & Methodology for States with the Best Housing Markets

If you’d like to see all the information used to conduct our study, click here for all the data.

We analyzed several key components to determine the states with the strongest housing markets. These included median home prices, appreciation rates, existing inventory, new construction, household income levels, mortgage interest rates per state, and unemployment rates. These important real estate statistics provide valuable insights into the overall health of a housing market.

To determine the strongest and weakest housing markets in 2024, click the tabs below to dive into the individual data and sites:

Property Value Ranking

In this data, we evaluated the following:

• Median home prices (from World Population Review)
• Appreciation rates (from Statista)
• Number of foreclosure filings (from World Population Review)

The price of housing is the most important indicator of the housing market’s health. This is because the price is the main factor buyers consider when searching for property. Higher home prices, increased appreciation rates, and lower foreclosure filings indicate a ‘hot’ market, showing homes are in high demand.

Inventory Ranking

In this data, we analyzed the following:

• Number of homes available as of May 2024 (from FRED)
• New construction, permits per state as of April 2024 (from BPS—Permits by State)

When fewer homes are available, buyers have fewer choices and tend to buy less. On the other hand, having more homes for sale creates a strong housing market, attracts buyers, and helps the overall financial health. Additionally, building new homes helps communities grow by offering more options for middle-income or first-time homebuyers, giving those with a limited budget more choices, and showing overall growth in the housing market.

Affordability Ranking

In this data, we looked at the following:

• Median household income (from World Population Review) 
• Cost of living index (from World Population Review) 
• Property tax burden (from District Lending)
• Average mortgage rates, 30-year-fixed as of May 2024 (from Business Insider)

Household income is vital for buying a home. Lower incomes make it less likely, while higher incomes make it easier. Higher incomes also indicate a stronger housing market. Low mortgage rates can show high demand for home loans and a “hot” market.

Economy Health Ranking

In this data, we assessed the following:

• Unemployment rates as of May 2024 (from US Bureau of Labor Statistics)
• Crime rates per 100,000 (from World Population Review)
•  Community well-being index score, out of 100 (from Interactive Map—Sharecare) 

When analyzing whether a state has a robust real estate market, it’s important to consider the overall economic well-being. This consideration includes examining unemployment, crime, and community well-being index scores. These indicators provide valuable insight into the health and stability of the local economy, which is a key determinant of the strength of the real estate market.

Frequently Asked Questions (FAQs)

What state has the most reasonable housing prices?

What state has the hottest real estate market right now?

Bringing It All Together

New York was named the state with the best housing market. It offers affordable home prices, a good number of available homes, decent wages, and a growing population and job market. On the other hand, Kentucky has the worst housing market in the US, with low median home prices and median household income. The number of available homes and new construction is low, and the mortgage rates are pretty high. 

Now that you have the inside scoop on the data for the best (and worst) states, comment below to let us know how the market is doing in your state!

The post Top 5 States with the Best Housing Market (+ 5 Worst) in 2024 appeared first on The Close.

Gen Z (1999-2004)

According to the National Association of Realtors (NAR) 2023 report, Gen Z comprised 4% of buyers and 3% of sellers in the US. The age and generational real estate statistics show they have the highest percentage of single female buyers at 31%. They also have the lowest median household income of $50,400, and 62% purchased a detached single-family home with a size of 1,501 to 2,000 sq ft (42%), three bedrooms (70%), and energy-efficient appliances (39%). 

Notably, 30% of Gen Z real estate buyers moved directly from their family members’ homes into homeownership. A convenient location near friends and family was most important to this group when buying a home. In addition, 22% of buyers purchased a house to care for aging parents.

Impact of Gen Z on the Real Estate Market 

Now:

• Many Gen Zers have financial difficulties, such as debt from school loans, which can hinder their ability to buy a home. They know that housing costs are outpacing pay growth and homes are becoming more expensive. That is why those Gen Zers who can afford to buy are eager to do so. 
• Therefore, most Gen Zers prefer purchasing a home at a higher price than paying steadily rising rent. Gen Z has begun to make inroads into the housing market in mid-sized, comparatively cheap states like Illinois, Nebraska, and Minnesota. 

In the future:

• Larger homes, better schools, and a more family-oriented lifestyle may cause Gen Z to move toward suburban living once they grow older, make higher wages, or start families.
• The real estate agents who help Gen Zers climb on the property ladder could be rewarded with lifelong clients. They’ll need hand-holding as they navigate their first purchase. And if you nurture them, they’ll return to you when they’re ready to upgrade, want to buy investment properties, assist their parents in selling their homes, or want to help their kids become homeowners. 

Younger Gen Y aka Younger Millennials (1990-1998)

According to millennial home buying trends, younger millennials make up 12% of homebuyers and 6% of homesellers. Among those homeowners, 70% are first-time homebuyers, and 72% are homesellers. They had the highest share of unmarried couples (20%) buying homes, and 52% are married couples. This generation was the most educated age group, with 80% holding at least an associate’s degree. 

When considering location, the convenience of a job was most important to this group when buying a home, and they considered commuting costs to be the most important environmental feature at 35%. Younger millennials only viewed one home online without seeing it in person. Additionally, 22% of this age group received down payment help through a gift or a loan from a friend or relative. Agent referrals by friends, neighbors, or relatives were highest among younger millennial buyers (50%). 

Impact of Younger Millennials on the Real Estate Market 

Now:

• Younger millennials are impacting the real estate market as they become first-time homebuyers and look for urban living accessible to their workplace. Some of this age group may put off homeownership or alternate housing options due to affordability issues driven by student loan debt and increasing housing costs. The impact of low inventory, remote work, and their preferences for sustainability and well-being are shaping the features and locations of their homes.

In the future:

• Younger millennials continue to impact the real estate market of the future significantly. Due to the high percentage of first-time homebuyers and the growing suburban living trend, demand in those areas will be driven by their preferences for larger homes and better school and transportation access. The rise of eco-friendly communities and smart home features will be influenced by their focus on sustainability and technological integration. 
• Furthermore, their dependence on friends and family for financial support highlights the value of social networks in their home-buying decisions. It emphasizes the relevance of referrals in the real estate market. In addition, due to higher home ownership costs, rent prices are increasing much faster than purchasing. This trend will lead to lower homeownership rates and vacancies in the rental market. 

Older Gen Y aka Elder Millennials (1980-1989)

Elder millennials make up 16% of all homebuyers, and 46% are first-time homebuyers. This age group also has one of the highest shares of married couples (66%), with a median household income of $102,900. In addition, 70% of older millennials have at least one child under 18 residing in the home.

When looking for a home, the NAR’s age and generational real estate statistics reveal that a detached single-family home, the quality of the neighborhood, and overall affordability are the most important things for elder millennials. Despite these generational trends in real estate, they are most likely to relocate 15 miles from their previous home. This generation also used their savings (57%) for their down payment for home purchases.

Married couples were the highest population among elder millennial homesellers at 82%. Moreover, 76% used a referral or the same real estate agent they had previously worked with, and 83% were the most likely to recommend their agent. Those selling their homes are likely doing so because their current home is too small (32%), because of a job relocation (14%), or because their neighborhood has become less desirable (13%).

Impact of Elder Millennials on the Real Estate Market 

Now:

• As elder millennials start buying residential real estate, technology plays a significant role in their home search. This generation uses mobile or tablet devices to look up properties, view them, and contact real estate agents. In addition, they are progressively purchasing larger first houses than earlier generations. They were among the groups buying homes during the COVID-19 pandemic when house showings were only conducted online. Plus, older millennials typically favor living close to their jobs.

In the future:

• Elder millennials are anticipated to play a significant role in the future of the real estate market. As many homebuyers are married couples with a high median household income, their preferences for detached single-family and family-friendly homes, neighborhood quality, and affordability will continue to drive demand in these sectors.
• Additionally, their dependence on savings for down payments, preference for referrals and working with past real estate agents, and tendency to recommend their agents all emphasize the value of personalized and trusted relationships in real estate transactions.

Gen X (1965-1979)

Gen Xers comprised the highest percentage of homebuyers at 24%, of which 21% are first-time homebuyers. This group remains the highest-earning homebuyer group, with a median income of $114,300. They were the second group most likely to purchase a multigenerational home at 17%, behind the older boomers at 18%. When looking at the reason to buy a house, they were more likely to purchase closer to jobs, school, transit, or a job relocation or move.

Aside from these, Gen X prefers to buy a detached single-family home with 2,001 to 2,500 sq ft, three bedrooms, and two full bathrooms. As for home selling generational trends in real estate, 35% are first-time sellers, and 65% are repeat sellers. This age group sold their previous homes for job relocation and to move closer to friends or family.

Impact of Gen X on the Real Estate Market 

Now:

• Of all the generations, Gen Xers are in the best position to afford homes in the current housing market. They were well-established in their careers before the property market crash and subsequent recession in 2001. Gen X found housing relatively more affordable because they had made more money or savings than previous generations. As a result, Gen X is currently quietly dominating the housing market.

In the future:

• Gen X will continue to have the highest percentage of homebuyers who prefer homes with extra rooms and spaces for multigenerational living, such as caring for adult children and aging parents. 
• Gen X may be an ideal demographic for real estate agents to target when looking for homeowners interested in upgrading to a larger and better home. The agent might receive two commission checks for assisting a single client in selling their existing house and purchasing their new one.

Younger Boomers (1955-1964)

Younger boomers had the second-largest share of buyers at 23% and had a median income of $94,200. This generation typically purchased detached single-family homes in rural areas to be closer to family, friends, and relatives. Also, they are more likely to buy a new home to be able to choose and customize design features. As for the homebuying process, younger boomers contacted a real estate agent as a first step more often than other generations. Plus, 90% of younger boomers purchased their home through an agent.

Younger boomers comprise the largest share of sellers, at 30%, and have a median income of $89,500. In addition, 84% of the sellers are repeat sellers, and only 16% are first-time sellers. The age-generational real estate statistics also show that younger boomers typically owned their homes for 11 years before deciding to sell their property. 

Impact of Younger Boomers on the Real Estate Market 

Now:

• Many younger boomers choose to downsize from their larger family homes to more compact living as they enter retirement. Some want a property that requires less maintenance and is easier to manage, while others like easy access to medical facilities and social activities within the community to accommodate their needs. In any case, the demand for smaller homes—predominantly single-family, condominium, and townhouse properties—is rising due to this trend.

In the future:

• Younger boomers will continue to be active homebuyers and sellers, as becoming a homeowner reflects on their accomplishments and future plans. The migration towards states with warmer climates, like California or Florida, also begins at this age. Therefore, real estate agents must focus on those locations and home features to accommodate the younger boomers’ needs and wants.

Older Boomers (1946-1954)

Older boomer homebuyers tend to be married couples (59%) with a moderate income level of $84,900. They prefer detached single-family homes, prioritize the quality of the neighborhood, and are motivated by a desire to be closer to family and friends. Additionally, they increasingly use online platforms for property search (51%), and the agent’s reputation plays a significant role in their decision-making process (18%).

Moreover, older boomer homesellers tend to be experienced, as 94% are repeat sellers. They sold their homes in a suburb/subdivision (34%) for personal reasons, such as moving closer to friends or family (27%). The majority of older boomer sellers (84%) sold their homes using an agent or broker, emphasizing personal referrals (30%) and the agent’s reputation when making choices (29%).

Impact of Older Boomers on the Real Estate Market 

Now:

• Older boomers currently feel the need to buy or sell, and an increasing number of them prefer to downsize for reasons that include health difficulties, the death of a spouse, financial concerns, or retirement. However, some older boomers opt to live with family members, resulting in multigenerational households. 
• Multigenerational family arrangements have become more prevalent as elderly people start to move in with their adult children after selling their homes to get the support they require and desire. As a result of this trend, the need for larger homes that can house extended families is increasing.

In the future:

• It’s clear that older boomers will continue to significantly impact the housing market. This age group, which makes up one of the largest shares of homesellers, has successfully taken advantage of market prices to sell their properties for a higher price. We can expect them to persist in buying and selling their properties, desiring to upgrade or downgrade their current living situation.

Silent Generation (1925-1945)

With a 4% share, the Silent Generation was one of the smallest buyer groups. The primary reason for their purchases was to live near friends and family, and 12% were in senior-related housing. Compared to other groups, they were more likely to base their neighborhood choice on how close it was to medical facilities. This age group also had the highest percentage of military veterans, with 41%. Most buyers from the Silent Generation mentioned that they might have to move because of a family member’s health, but they still planned to stay in the property for 15 years.

Silent Generation buyers were most likely to work with an agent they had previously used to buy or sell a home, and an agent’s reputation was most important to them. As for home selling, this age group only has a 7% share of all sellers, of which 95% are repeat sellers. Also, 34% of Silent Generation sellers reduced their asking price at least once.

Impact of Silent Generation on the Real Estate Market 

Now:

• The Silent Generation’s impact on the real estate market will persist, albeit not as buyers or sellers, but rather due to the homes their children inherit. If they prefer to buy, this age group moves closer to family and friends. Properties that will make their life easier while maintaining a high level of privacy are ideal for them as they age and may require extra attention.

In the future:

• As the Silent Generation ages, they will gradually transition out of homeownership, leaving chances for younger people to enter the real estate market. However, since the Silent Generation is composed of experienced and repeat homesellers, selling their homes later in life affects home inventory availability and potentially drives up prices. 

Bringing It All Together

It becomes evident that the preferences and priorities of each generation significantly shape the real estate market—from the demand for sustainable and technologically advanced homes among millennials to the downsizing trends of the Silent Generation. By recognizing and adapting to the evolving needs of diverse age groups, real estate professionals can position themselves for success in a market that continues to be influenced by the nuanced preferences of each generation.

The post Generational Real Estate Statistics 2024: How Age Impacts the Market appeared first on The Close.

1. Inconsistent Income 

Money is the most cited factor negatively impacting US adults’ mental health, so it’s no wonder that working a commission-based job can often lead to financial stress. Commission income in real estate is stressful if you don’t properly manage it. The inconsistent and unpredictable nature of income, heavily influenced by deal flow and market conditions, proves challenging for many real estate agents. 

Before getting my license, I knew I would need at least six months’ worth of income saved to cover my expenses if I didn’t close a deal. I made sure to have that saved, plus a little extra, with the bonus of having a couple of clients lined up and ready to go when I got my license. Even then, I realized that I had not saved for marketing expenses. Without proper guidance, learning all the financial aspects of building a real estate business can take some devoted time and energy to ensure you’re covered. 

The bright side: Being a real estate agent does not cap your income potential, meaning that if you stay consistent, you can reap the rewards of a high real estate agent salary.

How to Manage This Stressor 

• Before starting a career as a real estate agent, try to save a year’s income with money set aside for marketing so that you can begin to invest consistently in your business. 
• Create a financial plan as part of your business plan. This will help you forecast your needs and save for tax season and slower market times. 
• Don’t be afraid of gig work if you need the extra cash. Having an additional source of income, like a side hustle, can help you continue building your business. 
• If you have the opportunity, join a team that offers compensation. Some teams will pay for help with admin or marketing work. 
• If you work in an area where rentals are popular, working with landlords and tenants is a great way to make extra money between bigger deals. 

2. Lack of Clients 

There’s a common saying among real estate agents that we wake up unemployed every day. Not only do we need to know how to source leads, but we also need to know how to convert them. This fact can be overwhelming for some agents, preventing productivity. 

Ruler Analytics found that the average lead conversion rate in the real estate industry is 2.4%. Without knowing our lead conversion numbers and the strategies to keep a full pipeline, it’s easy to find ourselves in a cycle of working with clients and starting from square one after our deals close. 

The bright side: You may find yourself more immersed in networking and your community. This creates a sense of social engagement that is actually healthy for work-life balance.

How to Manage This Stressor 

• Success in this field requires proactive planning. Always work ahead of yourself, even when working with clients. Think at least 45 days ahead.
• Schedule networking events with industry professionals, such as lenders and attorneys, or with a social group or organization you enjoy.
• Create brand ambassadors by staying in touch with your sphere and past clients. 
• Invest in lead generation platforms to help take some of the burden off your prospecting efforts. 
• If you don’t have any listings, make yourself available to host open houses for agents with listings. This is an effective way to reach potential buyers.

Market Leader is an all-in-one platform with a customizable internet data exchange (IDX)-enabled website, paid lead generation service, and customer relationship manager (CRM) to manage your contacts and workflows. A lead generation platform like this is a great way to automate your outreach, nurture your leads, and boost your pipeline.

3. Market Conditions

I’m sure you’ve often been asked, “Is being a realtor stressful?” and “How is the market?” And, of course, we know the answer is yes because the ebbs and flows of the real estate market can strain real estate agents’ businesses. 

When the market is thriving, business is good. However, agents must compete more fiercely during slow periods, which can become discouraging. Real estate is stressful in slow markets. Overcoming a sluggish market requires not only effective business systems and strategies but also considerable mental resilience.

The bright side: Busy markets can be lucrative, and slower markets allow extra, focused time with loved ones.

How to Manage This Stressor 

• Incorporate market research into your daily life. When you understand what is happening in the market, you can see a possible downturn and prepare beforehand. 
• Have the mindset of a business owner, not a salesperson. 
• Always have money set aside for a slower market. 
• If the market is too unstable for you, consider another job in the industry. 
• Lean on and learn from your fellow real estate agents. 

4. Schedule & Time Management 

A lot of people become real estate agents with the idea of being able to make their own schedule, only to find out that they are working more than they used to. Real estate is a stressful job, even if you work part-time. If you don’t manage your time well and take control of your schedule, you’ll eventually burn out. 

However, it doesn’t have to be this way. I became more productive and efficient once I started using time blocking in my schedule and mastered this strategy. If you let your business control you instead of the other way around, it can feel like being stuck on a hamster wheel with no way to get off.

The bright side: You are your own boss! So you can set up your schedule and business to fit into your life.

How to Manage This Stressor 

• Have solid systems for your follow-up, marketing, prospecting, and other business-building tasks.   
• Learn how to time block your schedule and include breaks throughout the day. 
• Always leave time for your personal life. You need to recharge on your own, with loved ones, or do something you love to be your best self in your business. 
• Work with another agent to cover each other when you need time away from work. 
• Batch and automate any work that you can. For example, set up your emails or social posts in advance. 

5. Lack of Boundaries 

It’s completely understandable to feel overwhelmed by your clients’ demands, especially when they expect you to be available at all hours. Constant calls and emails can be exhausting, which is why it’s important to establish boundaries. 

Without setting limits, we can feel tied to our phones, which can distract us from other important aspects of our lives. I once had a client call me at 1 a.m., which woke me up. From then on, I always informed my clients of my working hours and how I handled calls, emails, and texts.

The bright side: Creating hours of business operation gives you back control of your time. Setting boundaries will give you more freedom than restrictions.

How to Manage This Stressor 

• Establish clear boundaries with your clients right away. This will help you maintain a healthy work-life balance. 
• Work with another agent to provide a backup when you are unavailable.
• Honor the time you have set aside for yourself.
• Consider limiting beliefs that may be holding you back from setting boundaries. Write down and work through your limiting beliefs. This will help you understand why you think you need to be available 24/7. 
• Set up automatic responses outside of business hours, reassuring your clients of your response time.

6. Workload 

Being a real estate agent is stressful, and managing the many moving parts of a real estate business can feel daunting. Especially when working with clients, it’s easy to get sidetracked by current deals and ignore important tasks like marketing and lead gen. 

Without proper systems, it can feel like you’re constantly scrambling to keep everything organized. I noticed that I was less productive when I allowed disruptions to interfere with my focus on the task at hand.

The bright side: Learning highly efficient strategies to tackle your work allows you to have more present moments outside of work.

How to Manage This Stressor 

• Bringing an assistant on board might be helpful. Training them may take extra effort, but in the end, it’ll give you more time to focus on growing your business.
• Just like hiring an assistant, building a team allows you to delegate tasks. You might want to consider bringing in a buyer’s agent with some experience so they can hit the ground running and start helping out right away.
• Become comfortable passing on some business if you are spread too thin. Referrals can be a great way to still get paid without having to burden yourself with extra work, which is definitely a pro of being a real estate agent. 
• Time-block your schedule for more efficiency, and don’t forget to take breaks throughout the day. 
• It is crucial to have the right resources to run your business. Each brokerage offers different tools, such as CRMs and transaction management software, so be sure to choose one that offers everything you need. 

Using a CRM like Wise Agent helps agents manage their clients from start to finish. You can manage your transactions and listings, create customizable landing pages, and set up drip campaigns.

7. Varying Client & Transaction Types  

As a real estate agent, you’ll meet all kinds of clients and handle various transactions. The needs of first-time homebuyers are different from those of seasoned sellers, and dealing with a straightforward sale is quite different from managing a short sale. 

It’s normal to juggle all of these simultaneously, and it can be exhausting. I remember going from a tough showing to meeting excited buyers. I realized that if I didn’t reset my energy, I would bring negative vibes to the next showing with clients who deserved my full attention and excitement.

The bright side: Part of the thrill of working as a real estate agent is that no two days—or deals—are the same. You get to meet many people, some of whom could become good friends.

How to Manage This Stressor 

• Recognize your own style as a real estate agent. It’s okay to work with clients who vibe with your personality and to refer others to a different agent who might be a better match for them.
• Email your clients, outlining your work process and availability. This will help avoid surprises and give you both a point of reference when needed.
• Have regular check-ins with your clients throughout the time you’re working together. 
• Don’t be afraid to bring in another agent or your managing broker to help with challenging deals. 
• Good business partners are stress relievers! Rely on your lenders, attorneys, or home inspectors to help clients navigate the transaction details.

Self-Care Strategies to Incorporate Daily   

It’s essential to do things that are not work-related to keep stress at bay. I learned this the hard way when I experienced burnout. I wasn’t putting enough effort into my self-care, leaving me feeling totally drained. It’s much easier to prevent burnout by incorporating healthy habits into your daily routine than it is to recover from it. 

Choose at least one healthy habit to focus on for the next 30 days and see its positive impact on you and your business.

• Take brain breaks throughout the day; step away from work for 5–10 minutes.  
• Take a workout class, stretch, or walk outside.  
• Write down what you’re grateful for at the end of each day. 
• Start a new book. 
• Get enough sleep, fuel your body with good food and water, and stay active.
• Practice breathing exercises as needed during your day. 

FAQs

What is the toughest thing about being a real estate agent?

How likely are you to succeed as a real estate agent?

Bringing It All Together

Being a real estate agent is stressful, but there’s nothing better than being armed with information to help you lessen the effects. Our well-being is just as crucial as our success, so spend the time to evaluate your schedule, habits, and business strategies to see what you can improve. Let us know what self-care strategy you picked to incorporate into your day! 

The post Is Being a Real Estate Agent Stressful? 7 Stressors & Solutions appeared first on The Close.

1. Make Networking a Lifestyle

I don’t mean networking in a hollow, handing-out-business-cards-at-your-kid’s-baseball-game kind of way. When you network, your goal is to always be on the lookout for ways to make a connection with someone. If done thoughtfully, your kid’s baseball game is actually a great place to network, especially if you’re just looking for that first handshake. 

Getting to know the team parents, coaches, and team sponsors is just extending your sphere of influence. You don’t have to saddle up next to the pitcher’s mom with a new listing flier. Instead, use these opportunities to organically ensure that people know your business and that you’re always available to help. This extends to every area of life: book clubs, parent-teacher organizations, pickleball teams, alumni and neighborhood groups, happy hours, and the ever-classic networking activity, golf. 

2. Look for Ways to Help

As a real estate professional with specialized training and tons of experience, you are one of the most informed people in the room. You know about schools, development projects, zoning, design trends, pricing, interest rates, and hot new restaurants. You know tons of people and are good at connecting them. You understand your community’s history and can predict its future, probably better than most. 

That puts you in a unique position to be helpful. So think of “networking” as looking to offer help to someone else. This could mean offering to write recommendations and reviews, carry groceries, host informational meetings with young people in their career search, volunteer at local schools, sponsor teams, serve on nonprofit boards, or plan community events. 

In Charleston we deal with flooding, and there are plenty of opportunities to serve the community in flood mitigation planning. These boards attract plenty of agents who are eager to improve their community with their real-estate-specific perspective. Not only does offering to help demonstrate your abilities, skills, experience, and generosity, but it also builds loyalty and puts goodness out there that is sure to circle back. 

3. Be Prepared

If you treat every interaction as an opportunity to meet, connect, and be helpful, you must always stay ready with your elevator pitch. You might even need several versions of it—one for a kid’s sports event, one for a luxury real estate conference, and one for when you’re in line at the grocery store. 

Make sure you can explain not only your work but also what unique value you bring. Your pitch should include what sets you apart and what special skills and experience you offer. Bonus points for practicing pitches with friends, family, fellow agents, and in front of the mirror. Here’s an example elevator pitch:

copy to clipboard

I’m a Charleston real estate agent with seven years of experience. I specialize in selling historic homes in the South of Broad neighborhood, but I’m best known for my commitment to my clients. They appreciate that I’m always available for help or questions, my attention to detail, and my local expertise.

4. Set Networking Expectations

Chances are you’re not going to sell a home today to someone you met at the grocery store this morning. But let’s say you add that person to your email list, and they start to receive your monthly newsletters. Then, a year later, they want a new home and give you a call. Fantastic. But not every person you meet will become a client, and you can’t go into every single interaction expecting it to turn into a deal. 

Often, sitting down with your target demographic through networking leads to a better understanding of their needs, concerns, and experiences. Sometimes, reviewing your target demographic will lead to learning about something new: a new housing development, skill, or technology. The key to successful real estate networking is understanding that as you network and your sphere expands, so do the opportunities. 

5. Actually Listen

We’ve all met that person who asks a question and then immediately loses focus while you answer—their eyes stray and scan the room, looking for someone more important to talk to. Don’t be that person. When you ask a question, listen to the answer. Yes, it’s good manners, but it’s also important for successful networking in real estate. You never know what a casual conversation could lead to, and if someone drops a hint that they have a real estate need, you want to be right there to pick it up. 

6. Think of Good Questions

It’s easy to zone out if you ask boring questions. Remind yourself of what you’re trying to accomplish by making these connections, and then ensure your questions get to the heart of what you need. Instead of asking a potential lead, “What do you do?” ask, “What do you think has been the secret to your success?” Imagine what their answer will reveal. You’ll immediately get insight into their experience, but more importantly, their values. It’s the kind of information that could be invaluable if you eventually deliver a listing presentation.

Of course, it depends on the networking situation, but here are some questions that go beyond the basics: 

• How do you spend your time? 
• What do you like to do for fun?
• Have you had positive or negative experiences with Realtors?
• What’s the greatest lesson you’ve ever learned?
• What’s something you’ve done that I should do?
• How can someone like me provide value to you?

7. Ask for Help 

While we’re often in a position to offer help, sometimes we’re the ones in need, and it can be hard to ask. The secret to keep in mind is that people actually like being asked to help—they like to feel like they can be of service to others (just like you do when practicing tip No. 2). 

Just be sure that when you do ask for help, you’re very clear about what you need. You might be asking for an introduction to a big-time developer or need the name of a new mortgage broker. You might be asking for a review from a client or a referral to a friend or family member. You might not always get what you want, but there’s no harm in asking.  

8. Take Notes

As you’re chatting with someone, you’ll probably learn a lot about them: their interests, their career path, and their kid’s baseball record. While we think we’ll remember all the little details, we probably won’t. Keep careful notes (ideally in your customer relationship manager) so that when you reach out in the future, you can check to see how things are going—did little Timmy win that tournament? It helps to be thoughtful and engaged. Like Michael Scott’s Rolodex in The Office, those little nuggets of personal detail can help turn a warm lead into a signed client.

9. Follow Up

When agents ask how to network as a real estate agent, this step is crucial but often overlooked. For networking to be effective, you have to follow up. The follow-up cadence can vary based on the relationship, but if you meet someone once and never send an email or text again, you’ve wasted your time. Use your customer relationship manager (CRM) to set up an alert, check the notes you took after your last meeting, and send a message. You don’t have to write a novel and you don’t have to write too often (it could even be as simple as reaching out on social media), but make sure those lines of communication stay open.

Of course, the only CRM you’ll use is the one you like. My favorite affordable CRM is Wise Agent. It’s user-friendly and intuitive, and its automations make it easy to manage leads and stay in touch with your networking contacts.

10. Network With Fellow Agents 

Networking isn’t all lead generation and sphere of influence—it’s also about building a real estate agent network within your own industry. Maybe you’re wondering how to network with real estate agents, but even more than that, you’re wondering why. The simple answer is that fellow agents provide a support group (who else understands the torture of a dad following the home inspector around when his daughter is under contract?). 

Fellow agents can also be valuable referral sources, especially if you’re specialized. Not every agent works with first-time homebuyers, but if that’s your jam, other agents you network with can recommend you. Additionally, fellow agents and brokers can offer career opportunities. Perhaps you’re recruiting for your team or interested in joining a new brokerage. Networking helps you keep doors and options open. 

One of our favorite resources for inner-industry networking and referrals is NuOp. It’s an easy way to solicit and receive referrals—and it’s completely free.

11. Network Online

We love in-person networking, but don’t underestimate the value of connecting and maintaining relationships on social media! While LinkedIn is the obvious one—and very important for career networking in real estate—be sure to consider other channels as well. We have several guides to help you make the most of social media platforms and leverage them in your networking. 

1. LinkedIn for real estate agents
2. Ways to drive engagement on Instagram
3. Facebook Pages that bring in leads 
4. Videos perfect for nurturing leads
5. Facebook mastermind groups

Secrets to Real Estate Networking for Introverts 

Real estate networking can actually be really fun. It can also be pretty easy, even for my introverts out there. Remember that networking doesn’t have to be transactional or opportunistic. It’s just about making connections. And you, as an agent, do that every single day. As you think about how you might implement the tips above into your networking approach, try to orient your thinking away from anxiety-inducing, old-school networking and toward a bright new day, where the goal is to simply have a good conversation. The people you meet and network with are going to help you build your business and a successful real estate career. 

If you’re an introvert, we have a few tips specifically for you:

• Focus on smaller groups: Find networking opportunities in one-to-one coffee dates.
• Utilize social media: Liaising online can be just as effective as in-person networking.
• Get a networking buddy: Bring someone along that is easy to be around and will give you confidence.
• Know you can leave: If you need to do a bigger networking event, make a goal for yourself (e.g., meet five new people) and then let yourself go home. 

Where to Network in Person

While I’m a firm believer that every event is a networking event, there are specific opportunities for those wondering how to network as a real estate agent. Here are some of our favorite places and ways to network in person:

• Local realtor association board
• Chamber of Commerce 
• Volunteer opportunities
• Alumni groups
• Real estate conferences
• Host your own events (a first-time homebuyer educational event, for example)
• Join the board of nonprofits you support
• Offer real estate education to local religious organizations 
• Meet regularly with a team of experts related to your industry

The Close writer and real estate coach Trevor James has this advice to offer: 

“Remember your niche. You might have a local LGBTQ Chamber of Commerce or a Women’s Leadership group in town. Get involved with your people. Organize a local food drive or coordinate a community event. Two birds with one stone: develop yourself personally as well as professionally.”

Trevor James, writer and real estate coach, The Close

Bringing It All Together

The most effective way to network as a real estate agent is to make it a lifestyle. Be constantly looking for ways to provide value to others, to ask thoughtful questions, and to connect with members of your community. Networking allows you to give back, offer knowledge, gather information, and expand your sphere of influence. Being friendly and interested in others is the first step, and by far the easiest one.

The post 11 Expert Tips for Real Estate Networking appeared first on The Close.

1. Intuitive AI Integrations are on the Rise (But With a Caveat) 

What I’m seeing from the conference 

Many companies incorporate AI into their platforms, especially for lead qualifying and nurturing. The AI is improving at mimicking human interactions, asking questions that make sense, and giving clients a more robust user experience. As much as agents feared incorporating artificial intelligence into their workflow, the sizable amount of data collected and delivered to agents will become too challenging to manage alone.

How will it impact agents in the field?

The idea is to help agents manage more significant amounts of leads so that fewer slip through the cracks. These lead gen companies are generating tons of leads, but agents need more time to work the leads through to the closing table. Most of these companies are trying to take the heavy lifting out of lead conversion to positively impact the ROI for agents.

My takeaway

I love this for agents! Working leads, especially the leads that are more than six months away from converting, is a huge time suck. Any company that can help agents convert more of their paid and organic leads is a partner in my book. 

In fact, one of the coolest AI iterations I saw at Inman Connect New York was ROOF from Offrs. Their  AI assistant does more than help you with leads. It will set appointments, segment your marketing audience, automate marketing efforts, track website visitors’ behaviors, and much more. Raia has a memory, so it can pick up a conversation even if your lead leaves the site and returns later. It’s pretty impressive!

2. Overproduced Videos Are Out 

What I’m seeing from the conference 

Many speakers at Inman Connect New York stressed the importance of authenticity in marketing. One element that was singled out is the overproduced videos we’ve seen so much of since video first took over social media. Kyle Scott, President of SERHANT Ventures, specifically said, “Raw is in” for 2024. Audiences are immune to the overly polished, overproduced content agents have created. It’s time to just get on camera, no makeup, hair in a messy bun, and show clips of you doing you in real life. 

Check out our video with Kyle here.

How will it impact agents in the field?

This trend is good news for agents. If anyone hesitates to get on video because they’re afraid it won’t be “perfect,” this is liberating. Your audience wants to get to know you so you can let go of the idea that you must look perfect and polished every time you get in front of the camera. 

My takeaway

I would love to see more agents take advantage of this easily accessible way of communicating with their clients and leads. Here’s the truth–you’re not used to seeing yourself while talking, but everyone around you is. So, let people like you for you. This rawness is how your audience is going to connect with you. We’re entering a new era where the old methods of trying to reach your audience will be taboo–no one wants to get into a legal situation over cold-calling or door-knocking, but that’s becoming a thing. So, now is the time to lean into this authentic marketing that lives online.

3. Closed Ecosystems Are Coming On Strong

What I’m seeing from the conference

In the past, I’ve pushed against these all-in-one ecosystems, called walled gardens, because I like having options. But more and more, companies are creating exclusive ecosystems, and agents are taking advantage of an all-in-one system that handles everything from lead capture and prioritization to hand-off when the lead is hot. These companies are, in essence, building an entire system that runs the back end of real estate agents’ businesses from end to end.

How will it impact agents in the field?

For agents who are not tech-savvy, these walled gardens are ideal. What’s great about them is they make things simple for agents. For example, companies like Zurple or Lofty start with an IDX website that gives users a positive experience to keep them returning. Then, it deploys lead generation strategies, nurturing, funneling from outside lead gen sources, and lead prioritization on autopilot within its built-in CRM.  

My takeaway

In my experience, agents typically aren’t great at follow-up or lead conversion. With the new AI integrations taking this lift, agents will see a higher return on investment from these platforms. My only issue is that for new agents just starting, the investment for this tech level might be a lot to take on. I didn’t close my first deal until I was six months in the business. Paying hundreds of dollars monthly for tech in my real estate business until that first transaction closed might have bankrupted me before I started. 

These walled gardens aren’t made for solo agents anyway. I talked with an agent at the conference about how things are moving towards more team structures, leaving solo agents out in the cold. One of the speakers, Mauricio Umansky, founder and CEO of The Agency, said that boutique brokerages will become extinct within several years.

4. Using Real Estate Technology for Transparency in Negotiations is In

What I’m seeing from the conference

I visited Final Offer, a real estate technology company to watch while exploring the vendors at Inman Connect New York. Final Offer allows listing agents to place their listings on the platform and track listing prices, best offer pricing, and seller terms to get the house sold quickly. A listing agent can share as much or as little information as they and their seller agree. Still, anyone who has favorited the listing will be notified when an offer is submitted, opening the floor for anyone else who may have been interested in submitting an offer.

How will it impact agents in the field?

One thing that has become painfully obvious is our clients, both buyers and sellers, have an innate distrust for our industry. As real estate agents, we are responsible for creating more transparency in what we do for our clients. This real estate technology trend is timely, with the real estate commission lawsuits still looming.  

My takeaway

This type of tech is the future of real estate technology. If clients demand more transparency in their real estate transactions, more tech that allows everyone to get on the same page in real time will enter the field. I love their platform and its ability to expose transactions, creating a transparency that has been touted as a needed shift in our industry. 

Your Take On Real Estate Technology Trends

Inman Connect New York was an exciting event, and I got to take in a lot. I love going to conferences, and if I walk away with one little nugget, something that I can take back and implement in my business, it is worth the investment. This year at ICNY 2024 I was blown away by all the amazing technology in real estate that’s being created to help agents build more relationships, increase their lead gen ROI, and close more transactions.  Did you attend Inman Connect New York this year? What were your takeaways? Let me know in the comments!

The post 4 Real Estate Technology Trends to Watch in 2024 appeared first on The Close.