Bonus: Download the Dual Agency Agreement Template

Disclaimer: Check with your state and brokerage to see if they have specific dual agency forms you need to use

What Is Dual Agency?

The real estate term dual agency is when a real estate agent represents both parties in a transaction. A dual agency relationship differs from a single agency in that the buyer and seller are represented by the same agent, who has to balance the interests of two clients. While this could streamline the buying and selling process, it also includes a lot of challenges regarding objectivity and confidentiality.

The real estate agent in a dual agency has a code of ethics that must be rigidly adhered to to deal fairly with both parties. This includes fully disclosing the dual agency relationship with a dual agency agreement and getting informed consent from the buyer and the seller. Otherwise, there may be some legal implications from such a breach of fiduciary duty.

What Is a Dual Agency Agreement?

A dual agency agreement is a critical document that ensures explicit agreement on the facts of a dual agency relationship between the agent and buyer and seller. The role played by the agent, with the limitations of dual agency, must be understood by both the buyer and the seller. The important components of the dual agency agreement include:

• Disclosure: This refers to the clear explanation given to the principal about the nature and extent of the dual agency relationship, including the possible benefits and associated risks.
• Consent: Both parties must consent in writing to their understanding and acceptance of the dual agency arrangement.
• Responsibilities: A detailed description of what duties the agent will perform. This idea would include maintaining neutrality, confidentiality, and adhering to their fiduciary duty.
• Compensation: In case of a reduced commission rate pact, how will their commission be divided or handled.

Responsibilities of a Dual Agent

Since the agent represents both buyer and seller in the case of dual agency, they should deal with their buyers’ and sellers’ interests impartially. Agents must also balance their responsibilities to ensure fairness and adherence to high ethical standards. Some of the responsibilities in a dual agent real estate situation are: 

• Impartialness: The agent should be unbiased and avoid doing anything to benefit one party at the expense of the other. It is challenging since the agent has to balance the interests of the two clients under their control.
• Disclosure: The agent shall disclose all the material facts about the property to both parties. Material fact means any information that may influence a buyer’s judgment or impair a seller’s ability to sell a property.
• Confidentiality: The agent is bound not to disclose any confidential information from one party to the other without explicit prior consent. This confidentiality protects sensitive information that includes negotiation strategies or personal financial details.
• Fiduciary duties: These include the duties of care, loyalty, and obedience to both clients. An agent should always protect the best interests of both parties. They are bound to give honest and competent advice without compromising either party’s interests.

Commission in Dual Agency

Since only one agent or real estate brokerage is involved, a dual agency may make the commission structure a bit easier. Agents can be lenient with their commission rate in a dual agency scenario because no other agent is involved. 

Therefore, they don’t have to worry about another agent’s involvement if they want to discount their commission by a percentage to get the deal done and benefit their clients. However, it should be very clear exactly how the commission division works as outlined in the dual agency agreement and where the cost savings are for both the buyer and seller.

Pros & Cons of a Dual Agency

Agents should consider dual representation real estate if both the buyer and seller want a smooth and efficient transaction and both parties are comfortable with one agent representing both sides. It can be of great value if an agent has specific knowledge about the property and the local market, providing value to both parties. 

Another advantage associated with a dual agency is the leeway to negotiate commission rates, thus benefitting the deal. In dual agency, however, there are potential conflicts of interest between both parties, and each party needs to be aware and comfortable moving forward. Knowing the dual agency pros and cons will help you decide whether you want to put yourself in that situation.

In Which States Are Dual Agency Legal?

Dual agency is legal in many states, although regulations and requirements differ from state to state. States that do allow dual agency require the agents to follow certain disclosure and consent procedures. Dual agency is not permissible in these states:

• Alaska
• Colorado
• Florida
• Kansas
• Maryland
• Texas
• Vermont
• Wyoming

Agents should familiarize themselves with the laws of their state on dual agency so they don’t get involved in illegal activities. This includes knowing additional documentation or disclosure that may be required and how such agreements and letters to clients are to be worded.

Tips to Operate as a Dual Agent

Great care and rigid adherence to ethics should be taken when operating as a dual agent to avoid conflicts of interest and loss of trust. Successful navigation of dual agency is characterized by clear communication, neutrality, and professional integrity. Consider the key practices for effective management of dual agency:

Tip 1: Provide Full Disclosure

Make sure the two parties are fully aware of the existence of a dual agency relationship right from the very start. This would be important in establishing trust and ensuring that both the buyer and the seller know that the agent represents both of them. Full disclosure avoids misunderstanding and possible legal disputes in the future.

Tip 2: Stay Neutral

No act on an agent’s part should be interpreted as favoring one party over another. Provide each client with roughly equal service, information, and comparable support. This helps to establish confidence in the process by assuring both buyer and seller of fair treatment. Balance the needs and interests of both parties without compromising either side.

Tip 3: Use Clear Communication

The agent shall maintain clear and truthful communication with the parties involved. This includes timely progress reports regarding the transaction and immediate disclosure of any material facts or problems as they arise. Effective communication shall help keep both clients fully informed and involved, thereby preventing or minimizing the potential for conflict and misunderstanding. Both parties are to receive timely, accurate information, which will help facilitate informed decision-making.

Tip 4: Practice Professionalism

Abide by statutory and regulatory state requirements relevant to a dual agency that include confidentiality, the truthfulness of information, and loyalty to the client’s interest. The responsible management of a dual agency means being professional in ensuring all acts are within the confines of the law and ethical standards. High professional standards foster trust with one’s clients and facilitate the transaction process through its successful completion.

Scripts to Use When Clients Ask About Dual Agency 

Whenever a client inquires about dual agency in real estate, it is important to respond clearly and with simple language that dispels their fears with clear transparency and total neutrality. Whether describing how the dual agency works, explaining possible conflicts of interest, or just outlining it as an option, your responses reassure the client that their interests will be equally well-guarded. 

The following scripts will guide you through these conversations confidently and help your clients fully understand the implications of dual agency.

Script 1: Explaining Dual Agency to a Client

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Client: “What exactly is dual agency, and how does it work?”

Agent: “Good question. Dual agency would exist if I represented you, the buyer, and the seller in the same transaction. Basically, I have a duty to both of you, and I must remain neutral throughout. I will work to facilitate the transaction as efficiently and smoothly as possible while providing the same service and flow of information to you and the seller.

I’ll disclose all material facts about the property to both parties, but I won’t be able to advocate for one party over the other. What’s important is that both of us, as well as the seller, be comfortable with the situation, and we would all need to sign a dual agency agreement to proceed.”

Script 2: Addressing Concerns About Conflicts of Interest

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Client: “I’m worried that you might be biased towards the seller since you’re representing both of us.”

Agent: “I completely understand your concern, which I take very seriously. I am supposed to be impartial as a dual agent, offering you and the seller the same level of service while providing both of you with all the information. Therefore, I won’t be able to choose one side over the other or give only one side confidential information.

My role is to ensure both parties have the facts they need to make the best decisions possible. If you ever feel uncomfortable or if, at some point, you believe there is a conflict of interest, then we can discuss it and determine what is best.

Script 3: Pitching Dual Agency to a Client

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Agent: “I would like to discuss an option with you that would very much befit your situation: dual agency. This would make me the representative of both you and the buyer. This would streamline communication between us and save us time during negotiations. Because you know I am knowledgeable of the local market, the information and advice I will provide will be useful to both parties involved.

Plus, because I would be handling both ends of the transaction, there would be some opportunity to negotiate a slightly lower commission being paid out on my part, which could save you money. Of course, I would work through that process in a completely neutral and open way. If this is something you’d be open to, I’d be happy to run through the details and answer any questions you might have.”

Script 4: Responding to a Client’s Hesitation About Dual Agency

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Client: “I’m not sure if I’m comfortable with dual agency. What happens if I decide not to go with it?”

Agent: “It’s normal that you should have reservations about dual agency, and that is quite understandable. You must be sure of the decision you are making. If you don’t want to proceed with dual agency, we can certainly look at other options, such as separate representation for each party. The key is to choose a situation that makes you feel most comfortable and confident about the transaction. I am here to support you either way and will be sure that your best interest is protected.”

FAQs

Should real estate agents avoid dual agency?

What is an example of a dual agency?

What is the difference between a sub-agency and a dual agency?

Bringing It All Together

Proper navigation of dual agency requires some thought and clear communication to ensure a fair and efficient transaction for buyers and sellers. The ins and outs of how commissions work, when it’s proper to represent both parties, and formalizing that relationship with a detailed dual agency agreement are all essential considerations. This navigation enables agents to maintain transparency, neutrality, and professionalism in dealing with dual agency situations and support increasing their gross commission income (GCI).

The post What Is a Dual Agent? A Guide for Real Estate Agents appeared first on The Close.

You need to embrace this technology and use it to help more clients (and help your pockets grow, too)! I will break down what predictive analytics in real estate are, how you can use them, their benefits, and which real estate analytics software you can use to boost your business. Here we go! 

What Is Predictive Analytics in Real Estate?

Predictive analysis is a technique that uses data, statistical algorithms, and machine learning to identify the likelihood of future outcomes based on historical data. It involves analyzing current and past information to predict future events. 

In real estate, predictive analysis can help agents forecast market trends, identify potential buyers and sellers, set competitive prices, and make strategic business decisions. These real estate analytics companies pull together millions (if not billions) of data points from multiple sources to give you important insights. 

Common data sources include the following:

• Property
• Demographics
• Behavioral trends
• Event data (user-generated activity data from products, software, or websites)

Why Predictive Analytics Matters in Real Estate

If you’re a MARVEL fan, you may remember in Captain America: The Winter Soldier the scene where Jasper Sitwell gets kicked off the roof by Black Widow for information about Zola’s algorithm. Ok, we won’t be kicking anyone off any rooftops, but Zola’s algorithm is a great example of predictive analysis. It provided data on who to target, when to target them, and how to take them down.

The same concept is applied to PA in real estate. Imagine if you had a list of homeowners in your farm area who were identified via predictive analytics as highly likely to sell their homes in the next 12 to 18 months. Think of the time, energy, and money you could save by marketing specifically to those homeowners. You can make it work for you in your real estate business with a company that knows how to harness it.

Ok, let me give you some actual data to consider. One of our top picks, Offrs, provides 30 guaranteed leads in a chosen ZIP code every month, and those leads come with an astounding 72% prediction accuracy rate. Assuming that prediction rate, you’d have about 20 solid leads each month. The average listing commission is over $12,000. So, if you convert half of your leads, that’s $120,000. As Offrs says: It’s not magic; it’s math.

Benefits of Using Predictive Analytics for Real Estate 

Real estate predictive analytics is changing the game, giving agents and brokers powerful tools to understand market trends and customer behaviors. With tons of data and smart algorithms, this tech helps you make better decisions, market more effectively, and stay ahead of the competition. 

Using predictive analytics in real estate offers several key benefits:

• Accurate market predictions: Helps agents predict market trends, including which properties are likely to sell and when.
• Targeted marketing: Allows more accurate marketing efforts by identifying potential buyers and sellers, leading to better conversion rates.
• Improved pricing strategies: Assists in setting competitive sales prices based on data-driven insights rather than gut feelings.
• Enhanced customer insights: Provides a better understanding of customer preferences and behaviors, allowing you to personalize your services.
• Competitive advantage: Gives agents an edge over competitors who may not use predictive analytics.
• Increased sales: Ultimately leads to higher sales and revenue through more effective and targeted business strategies.

How Agents Can Use Predictive Analytics

Now that you know what PA is, why it’s important, and what the benefits are, it’s time to put predictive analysis to work for your business. While residential real estate analytics isn’t fully on par with the commercial side yet, we’re getting closer to seeing every agent, team, and broker using AI or data analytics tools in 2024.

Here are a few ways you can start to incorporate PA into your business practices: 

• Identify potential sellers
• Competitively price the properties
• Optimize lead generation
• Improve client relationships
• Predict future market trends

The Best Predictive Analytics Companies in 2024

Wondering which companies are at the forefront of predictive analytics in real estate? These companies are transforming how agents predict market trends and make informed decisions. If you’re considering integrating predictive analytics into your real estate strategy, here are some top recommendations for real estate data analytics companies that are reshaping how agents predict market trends, identify potential clients, and optimize their business strategies.

Take a look at some of the top players in the game.

1. Smartzip: Best for Sellers Leads

Pros It has easy-to-use CRM and dashboard. Smart Targeting product allows automated print marketing. It is easily applicable to an existing real estate farming strategy.	Starting Monthly Prices The company’s prices are based on the size of the geographic area you’re targeting. Prices start at $299 per month with a 12-month contract.
Cons Pricey—most Smartzip users spend at least $1,000 per month (or more). Leads are nonexclusive. It can take a long time to nurture and convert leads.

By combing through consumer data (from places like credit card companies), market data (from places like your MLS), and demographic data, Smartzip predicts which homeowners in your targeted region are most likely to sell. Realtors who sign up with Smartzip immediately get access to the Smartzip CRM, populated with “Smart Data” for their areas. 

Essentially, this is a list of all the property owners in your targeted area, ranked by how likely they are to sell their home in the next year and a half. Armed with this information, you can focus your outreach on only the most likely sellers, saving you time and money on marketing efforts and making your lead conversations more meaningful and fruitful.

Smartzip: Is It Right for You?

If you’re already investing heavily in real estate farming and seller lead nurturing, Smartzip is an excellent real estate predictive analytics tool for you. Since leads from Smartzip tend to take a little longer to nurture than traditional listing leads, you will need a solid keep-in-touch strategy. If you’ve got a good lead nurturing game in place, Smartzip is absolutely worth considering.

2. Offrs

Pros It is the same great Smart Data that sister company Smartzip is built on. Roof provides an entire inside sales and marketing team with no upfront costs. Unique ad tools help connect your analog and digital marketing.	Starting Monthly Prices It offers 30 guaranteed leads from one ZIP code for $299 monthly. This includes predictive sellers, an ad budget, a customized territory builder, and a lead capture page. If you want a larger target area, spring for the premium plan, which is five ZIP codes for $599 monthly. Offrs does not require a contract.
Cons Leads are nonexclusive. Leads take longer to convert than organic or referral leads. The Offrs Smart Data CRM isn’t as user-friendly as the Smartzip version.

While Offrs is owned by the same company as Smartzip, the actual product is very different. Both are built on the same Smart Data platform, but Offrs customers also have access to sophisticated and automated marketing and nurturing tools.

Plus, the Offrs Roof referral system is an added bonus. For a 25% referral fee, Offrs’ call center and email marketing team will initiate at least 30 touches in the first 90 days, starting immediately when a lead comes through. This makes the nurturing process even less of a lift, especially since about 67% of clients go with the first agent they speak with.

Offrs: Is It Right for You?

If you need automated marketing services, this is a platform you should absolutely consider. If you don’t need the more specialized lead types or automated marketing features, you’re probably better off going with Smartzip, with its upgraded CRM and user interface.

3. Catalyze AI

Pros It has high accuracy percentage. It offers exclusive, local leads. It has an easy-to-use, intuitive dashboard.	Starting Monthly Prices The two-tier pricing at Catalyze AI is relatively unique. The first tier is for properties valued over $1 million dollars, which is $450 per month. For $360 per month, you get leads on properties valued under $1 million. There are no contracts, so agents can subscribe month to month.
Cons Costs will add up if you subscribe every month over a year. It relies on excellent interpersonal and follow-up skills. Large radius may not work well for agents in urban areas.

Every year, hundreds of thousands of properties are inherited. Catalyze AI helps sort through all of the data points (over 400 million of them) to narrow these properties down to excellent leads. It is so excellent that it boasts that four out of 10 predicted leads sell within 12 months. Catalyze AI estimates this market represents $77 billion in property value each year.

I like that Catalyze AI offers leads within a 20-mile radius of your search area and that you can pay based on the value of the property: one monthly rate for properties valued above $1 million and one for below. And finally, and perhaps most importantly, these leads are exclusive, which makes them pretty darn valuable.

Catalyze AI: Is It Right for You?

Inherited property leads are fairly niche, and it takes someone with strong interpersonal skills to convert them, especially if the new property owner is recently bereft. It will also take patience and strong follow-up. That being said, this is a really strong market, and the leads are local, not outrageously expensive, highly probable to convert, and exclusive. Because it’s month-to-month, it’s definitely worth checking out Catalyze AI; it’s a company in the PA space that we’re excited to watch.

4. Top Producer

Pros It offers full end-to-end solution with top-notch lead gen, integrated marketing, and CRM. CRM helps prioritize PA leads and follow-up. It has excellent customer service.	Starting Monthly Prices Top Producer’s Pro + Framing package includes the CRM plus AI-powered farming and marketing starting at $399 per month. Pro + Leads includes the CRM plus social media leads starting at $429 per month. The baseline Top Producer product—called Pro—starts $129 per user, per month. The Top Producer Pro Teams package is $299 per user, per month. A Top Producer website is an additional $35 per user, per month.
Cons You can’t subscribe to just the PA solution. It lacks 24/7 customer support. It is not an option for agents who already have a CRM they like.

While Top Producer’s predictive analytics product, called Smart Targeting, isn’t far from what other PA companies are doing (in fact, its data is supplied by the same company as Offrs and Smartzip), it is unique to have the analytics as part of a larger lead generation and tracking ecosystem. There are some real advantages to having everything working together in the same place. If you’re using Top Producer, one of our favorite CRMs in the industry, to prioritize, track, nurture, and convert leads fed to your funnel by predictive analytics, you’re cooking with gas, as they say.

Top Producer’s biggest value is in its CRM, which allows a busy agent to rely on automatic follow-up with leads. It’s not cheap—in fact, it’s hard to tell exactly what Smart Targeting costs as it’s an add-on to the base price—but it is an exciting development in the industry. Synergy between all of your sales and marketing is a beautiful thing.

Grow your database with a steady stream of affordable, exclusive real estate leads from social media ads. Social Connect from Top Producer is designed to get you a high volume of leads and move them through your pipeline until they’re ready to buy and sell real estate. Connect with an average of 30 consumers interested in real estate in your local market for just $300 per month!

How Social Connect works:

• Digital advertising experts create and run social media ad campaigns on your behalf
• You get exclusive leads from your desired local area
• All leads are automatically nurtured via text and email on your behalf until they’re ready to connect, saving you time and effort

Top Producer: Is It Right for You?

If you already have a CRM that you love, Top Producer isn’t for you. You’re better off subscribing to Offrs or Smartzip and integrating it into your existing CRM. It’s only if you’re already using Top Producer or you want to make a CRM change that you should consider jumping in with two feet. Real magic can happen when all of your systems are not only talking to each other and working together, but also taking advantage of cutting-edge technology that can skyrocket your business.

Are you a lender or homeowner interested in hearing about other great predictive analytics tools that are easy on the wallet? Check out our review of Homebot to kick off your search.

Methodology: How I Chose the Best Predictive Analytics Companies

Our methodology at The Close ensures that our team of professionals, writers, and editors thoroughly analyzes each platform. We meticulously evaluate the features, usability, integration capabilities, performance, and affordability of the AI tools available for real estate. 

Even though our team has decades of combined real estate experience, navigating through the wild, complex, and sometimes confounding world of data analytics wasn’t easy. To make sure we were using objective measures, in addition to our educated opinions, we looked at these five key criteria to select our picks for the top companies:

• Affordability and value for money: Cost was an important consideration. We looked for tools that provided a good balance of features and return on investment.
• Feature set and functionality: We evaluated the range of features each tool offers and focused on how impactful these features are to real estate operations. 
• Usability and customer ratings: We looked for tools with intuitive interfaces, straightforward navigation, and comprehensive support resources. We want to ensure it can be easily integrated into an agent’s workflow. 
• Integration capabilities: Because so many tools are needed in the real estate industry, we want to ensure that an agent’s technology stack can communicate with other tools necessary for business. 
• Effectiveness and performance: We considered the effectiveness of each tool to make sure that it increased productivity and would achieve the desired outcomes that it promised. 

Frequently Asked Questions (FAQS)

What are the challenges of using predictive analysis in real estate?

What problem is being addressed by applying predictive analytics to real estate?

How do predictive analytics impact the real estate industry?

Bringing It All Together

Data analytics, and predictive analytics specifically, is an exciting, cutting-edge field that has the potential to completely shake up our industry. I believe that agents, teams, and brokers will see a serious ROI with the right data analytics tool. I hope this guide has helped narrow down the options and decide what might be the right company (or companies) for your business. 

Are there any predictive analytics companies serving the real estate world that we missed? Who should we include the next time around? Tell us in the comments below!

The post Predictive Analytics in Real Estate: Best Practices & Software for Agents appeared first on The Close.

But, for all its perks, working with first-time homebuyers can also be tricky. There are many obstacles, and you’ll probably have to spend a lot of time educating your buyers. I’ve put together this list of 17 first-time homebuyer tips to share with your clients so they can avoid the mistakes that can cost them their dream home.

Before Your First-time Homebuyers Start House Shopping

More than likely, your clients, dreaming of buying a house for the first time, have scrolled through Zillow like a social media feed for quite a while before contacting you. Prepare them for the process by helping them tackle these steps, so you don’t waste time showing properties they’re not interested in or qualified for.

1. Determine If They’ve Saved Enough Money

There are so many costs involved in purchasing a home that most first-time homebuyers aren’t even aware of. Want to share some excellent advice for first-time home buyers? Sit down and explain these costs to them:

• Down payment: Unless they’re using one of the few loan programs that don’t require it, they’ll most likely need a substantial amount for a down payment, typically 5%–20% of the purchase price. If they need it, there are some available down payment assistance programs that you can educate them on.
• Closing costs: Buyers should plan to pay 3%–4% of the home purchase price for closing costs. You can help your buyers by negotiating a seller’s concession to pay part of the closing costs.
• Realtor fees: Ensure your buyers understand their responsibilities for covering commissions and fees. Explain the recent changes in transparency on agent commissions and how you can still negotiate to have the sellers cover these costs along with additional fees.
• Repairs, upgrades, and furnishings: No home will be perfect, and your buyers may need to prepare for the costs of repairs or upgrades. Let them know they may need to customize some things to make their home their own after they close.

Start by sharing this Home Buying Checklist, which lays out the foundations of the homebuying process and is full of first-time home buyer tips. It will help them kick off their homebuying journey the right way.

2. Help Your Buyers Establish How Much House They Can Afford

It’s easy for your buyers to get caught up in the excitement of home ownership without thinking through the realities. As a professional buyer’s agent, you should educate your buyers on how much they’ll actually pay each month—including their loan principal, calculated interest, property taxes, home insurance, private mortgage insurance (PMI), and homeowners association (HOA) fees, if applicable. Their monthly payment should be 25% or less of their monthly income.  

Give your buyers access to this mortgage calculator to estimate their monthly expenses.  

3. Encourage Them to Check Credit Scores

Let your buyers know credit scores are an important step to home ownership. Most mortgage lenders won’t take a credit score below 600, so your buyers need to know where they stand. If their score isn’t quite where it needs to be, let them know how to improve it and maybe hook them up with a lender who specializes in working with buyers who need guidance.

4. Persuade Them to Shop Around for a Mortgage

Honestly, one of the best tips for any client buying a house is to shop for the right lender. Keep a list of some of the best lenders. You may have different lenders for different types of clients. For example, you may have a list of lenders great for VA loans but a separate list for first-time buyers or investor clients. Share your favorite lenders to get them started on the right track.

Then, have your buyers contact multiple lenders to compare mortgage fees, rates, and any additional costs to take out a mortgage. Your buyers should consider several different types of mortgages when buying a home. Have them consult with different lenders on their best options.

Types of Mortgages

• Conventional loans: These are the most common type of home loan. The US government does not guarantee them. Some conventional loans allow first-time buyers to purchase a home for as little as 3% down.
• Federal Housing Administration (FHA) loans: These loans are insured by the Federal Housing Administration and allow buyers to purchase a home with less strict financial and credit score requirements than a conventional loan. With an FHA loan, a buyer can qualify with a 580 credit score and down payments as low as 3.5%.
• US Department of Agriculture (USDA) loans: These loans are guaranteed by the US Department of Agriculture. They are for specifically zoned suburban and rural homebuyers and have household income restrictions. They usually require no down payment for those who qualify.
• Veterans Affairs (VA) loans: These loans are guaranteed by the Department of Veterans Affairs. They are exclusively for veterans, active-duty armed forces and National Guard members, and qualified spouses. They allow those who qualify to buy a home with a 0% down payment.

5. Verify They Are Preapproved 

No sense in wasting time shopping for homes if your buyers aren’t prepared to make an offer when they find a home they love. Getting that preapproval letter will give them an advantage when it’s time to write up an offer. But it will also help your buyers stay within a set budget. They will know what the lender has tentatively approved them for, so they won’t be tempted to veer off into unaffordable territory.

6. Suggest They Research Neighborhoods Online

One of the best first-time home buyer tips is to encourage clients to research different neighborhoods, schools, and local amenities before looking at homes. If they find a home in a neighborhood or town that doesn’t suit the rest of their needs, they’ll be miserable. No one lives in a bubble. Urge your buyers to explore the areas to ensure they can access things they need, like shopping, restaurants, schools, and work, before deciding which areas suit them best.

House Hunting With Your Buyers

Now that the important foundation work has been done, it’s time for the exciting part—house hunting! But you certainly don’t want to start without a plan in place. When your clients are buying a home for the first time, follow these steps to make sure everyone is making the best use of the time you’ll spend together.

7. Educate Them on Working With a Real Estate Agent

A lot has changed for homebuyers recently, most notably how commissions are paid to their agents. As a buyer’s agent, you now have a more important responsibility to explain your value, break down why your clients need you working for them, and why you’re worth every penny of that commission. 

8. Create a List of Needs vs Wants

Sit your clients down with our House Hunting Checklist and review their needs and wants. This checklist is full of tips for first-time home buyers. Be sure to explain what features are true needs (like bedrooms for everyone in the house) vs “nice to haves” like a covered patio in the backyard. Explain that some things will be deal-breakers, but they can be more flexible on other features. Some items can be added after closing if they truly want them.

9. Educate Them to Be Realistic

If you’ve been in real estate for more than five minutes, you know there’s no such thing as a perfect house. That’s called a unicorn. Explain to your clients that they won’t find a house that meets every one of their expectations. But they will find a home they love with most of their preferences. Set their expectations to be open to homes that aren’t quite everything they want. They may just find a truly amazing house that fits them perfectly, even if it’s less than perfect.

10. Find a Home That Fits Their Needs & Budget

As frustrating as it can be to buy a house, first-time buyers may be tempted to bump up their budget if they can’t find the home they really want. And truthfully, this is their first home purchase and probably won’t be their last. If everything they want is out of their price range, then the first step to getting a better home is to start where they are. Work within their budget to find them plenty of well-suited options. 

If you’ve set their expectations well, they should be able to see potential in the homes you present. Their first home is supposed to be the starting point—remind them of that. They can enter the market with a starter home, stay in it for three to five years to build some equity, and then level up on their next home purchase.

11. Negotiate With the Sellers

The art of negotiation is a skill you should learn early in your career. This is where you will shine and help buyers present the best terms to get the deal accepted. Go to bat for your buyers to get the most agreeable terms possible. 

Negotiate with the sellers to pay some or all of your clients’ closing costs to alleviate some of their stress. However, you can also negotiate the purchase price, repair limits, and closing date with the sellers. The ideal situation is for everyone to leave the negotiations and feel good about the deal. 

After Your Buyers Are Under Contract

You’ve scoured the MLS, found your clients their new dream home, and negotiated the deal. Now, you must carefully steer the ship into the harbor without hitting any rocks! Follow these tips to ensure everyone arrives safe and sound at the closing table.

12. Help Them Hire a Home Inspector

Keep a list of reputable home inspectors and some great questions, along with other types of inspectors (wood-destroying organisms, septic tanks, pools, etc.), to help your clients perform the proper inspections to ensure their purchase is sound. Since your buyers are buying a home for the first time, you might need to explain why each inspection is important and worth the extra expense.

Pro Tip: This is a perfect opportunity to share some past experiences where things went terribly wrong. For example, I once had buyers fall in love with a house and helped them make an offer. Once they were under contract, I made sure to help them order a home inspection, which uncovered thousands of dollars of termite damage. Ouch! Stories like that one demonstrate the need for hiring professionals to see the things other people can’t.

13. Make Them Aware of Deal-killing Mistakes to Avoid

Have you heard about a buyer showing up to closing and driving a brand-new car they bought the week before closing, and the deal fell through because of it? Yeah, buyers get so excited about closing on their new home that they make costly mistakes. 

Here are some examples: 

• Don’t change jobs 
• Don’t make any big purchases 
• Don’t move your money
• Don’t buy a new car

Thankfully, we’ve put together a whole list of first-time home buyer advice, full of the dos and don’ts while under contract that you can go over with your buyers. You can even print it out and have them post it on their fridge until closing day! This is another great place for anecdotes to drive your point home. (Eh, hem. It’s part of the Home Buyer Checklist!) 

14. Help Them Find Quality Home Insurance

I live in Florida, and home insurance is a serious issue here. I like to keep a list of reputable insurance providers to share with my clients to help them get started. There are several sources online to compare rates, but you can also include a broker or two in your list. Another strategy is to get the current insurance provider from the sellers. Sometimes it’s easier to get a good rate for homeowners insurance from the company that already has a solid history with the home. 

15. Explain Title Insurance

Title insurance is typically done through the title company running your transaction. But when the buyers see or hear about this charge, they may need help understanding what it is and why they need it. Explain title insurance to your buyer. 

Title insurance protects the homebuyer and the lender against potential issues with the property’s ownership or any legal claims like some distant nephew of the deceased seller showing up and laying a claim to the property or boundary issues. Title insurance ensures the buyers can take complete ownership of the house, protecting against any liens, claims of ownership, or other situations that put the buyer’s full ownership at risk. 

16. Be Thorough at Your Final Walkthrough

You’re getting down to the wire; the final walkthrough is the last step. Schedule the final walkthrough with the seller’s agent within 24 hours before closing. The final walkthrough is to ensure the home is in the same condition it was when your buyers made the offer. 

I can’t begin to tell you how many times I’ve heard agents in my office regale stories of going to a home the day before closing only to discover something major missing—the fridge, the stove, the security system, the plants in the front flower bed—it’s hard to overstate the need for ensuring everything is in its place before your buyers sign the final closing papers. Be thorough!

17. Close & Celebrate With Them

You’ve finally made it! If it’s possible, go to closing with your buyers. This milestone is a HUGE accomplishment, and they will be so excited. You definitely want to be a part of that. Celebrate their win with them. I made it a tradition to take my buyers to lunch after closing to help continue the celebration. The longer I can continue that feeling, the better. I always take a closing gift to the closing and recommend the same to you. This event is a big deal, and they should feel that.

Pro Tip: Bring your smartphone and take video clips and pics of their big day. Ask them if they can give you a video testimonial after signing. I love asking my clients to do video testimonials right after closing when their emotions are the highest. 99.9% of the time, they’re so excited to share their gratitude with a video testimonial. The beautiful part is you’ll get their raw, authentic, emotional endorsement, which really does wonders for your marketing.

Bringing It All Together

Working with first-time homebuyers is a thrilling experience. As agents, it doesn’t get much more emotional than watching your clients sign closing docs on their first home. It’s such a high! But when you’re working with clients buying a home for the first time, you have a responsibility to guide them through the process, help them deal with their emotions along the way, and educate them on all the moving parts of a real estate transaction. 

If you get this right, they’ll remember you fondly for years to come. They may even name their child after you! I’m just kidding, but they will refer you to more business down the road. And when they’re ready to level up, guess who they’ll call.

The post 17 First-Time Home Buyer Tips: A Real Estate Agent’s Guide appeared first on The Close.

Plus, understanding these real estate charts and gleaning their insights will give you the bonus of looking like a superhero in front of clients. You’ll shine as the local expert when you confidently address your buyers’ and sellers’ concerns.

1. Home Sales Are Normalizing

Home buying has slowed to a much more normal pace because of escalating home prices and stubborn mortgage rates. I know what you’re thinking—the real estate market feels like it’s crashing! But truthfully, based on decades of data, the market is just normalizing. Homes didn’t sell within hours of listing and with multiple offers before the chaotic frenzy of 2020 through early 2022. That crazy real estate era has passed, and we probably won’t see it again, barring another exceptional event that affects everything. 

So, when you look at this real estate market graph and see 3.5 months of inventory, remember that six months of inventory indicates a healthy, stable market. Let your clients know there are plenty of buyers and sellers in the current real estate market.

2. Home Sales Are Slowing

And now a statement from Captain Obvious: Home sales are slowing down. This housing market graph from April 2024 states that an index above 100 reflects a higher level of activity relative to 2001. The overall index for April 2024 is 72.3. The graph shows that the indexes for four different regions of the country have been down since March 2024, showing that activity is slowing. A lot has happened in the past few years, sending sales off the charts. But today, we’re starting to see things settle down. 

The good news for buyers is that they don’t have to make snap decisions on whether or not to put in a compelling offer. During the frenzy, poor buyers didn’t have time to ruminate on their choices. If they tried, they were outbid and too late every time. With a slower, more sustainable pace, home shoppers, especially first-time homebuyers, can compare homes, discuss options, and make more informed decisions when putting in offers, most likely leading to a much more enjoyable experience.

3. Will Prices Lower?

For buyers still sitting on the sidelines waiting for home prices to return to Earth, they may be waiting quite a long time. This housing market chart shows the pace of home price escalation between this year’s and last year’s predictions by Fannie Mae (2.8% vs 6.7%), MBA (1.1% vs 1.5%), and NAR (0.7% vs 0.1%). The average forecast sits at a 1.5% increase for 2024 vs a 2.8% escalation for 2023. Sure, home price escalation has slowed somewhat, but overall, home prices will continue to appreciate. But that’s normal—homeowners want appreciation on their investment. 

During the pandemic, equity shot up at a record pace we’ll probably never experience again in our lifetimes, but those days are far behind us. Today, home prices are still inching upward, but at a much more normal pace. So, get your buyers off the sidelines! They must be in the game if they want to win in real estate. 

4. Listings Are Harder to Come By

Homeowners are still bearish about listing their homes, but things are actually looking up. This real estate market chart shows that 6.2% more homes were listed in May 2024 than last year. We still haven’t reached prepandemic levels, but the outlook is good. 2024 will be a strong year, even though we still won’t see the number of listings we did before 2020. 

But here’s the caveat—your days of showing up at a listing appointment and signing a listing agreement are probably also a thing of the past. Expect to do a little more work to show your value, negotiate your terms, and prove your marketing prowess to get the deal. There will be more competition for fewer listings, so now is the time to prepare your listing presentation and ensure you’re up to the task.

5. House Prices Aren’t Declining

Some news headlines may have you believe the real estate market is headed for a crash. Nothing could be farther from the truth. While some states have more robust markets than others, the nation holds strong overall. This housing market trends graph shows the average percent increase in home prices by state, with a national average of 6.6% increase year over year. Some areas, particularly in the Upper Peninsula, have seen increases of upwards of 10%! 

The takeaway here is that you should consume headlines with a grain of salt. If you’ve ever read anything from Mike DelPrete, he talks about the fact that boring news doesn’t grab readers’ attention. So, often, outlets will grab something from the “possibility” quadrant and talk about that, even though it’s not probable. Things will probably remain the same—stable, healthy, and steady—not chaotic and certainly not crashing.

6. Cryptocurrency Who?

Remember before the Sam Bankman-Fried debacle when everyone jumped on the cryptocurrency bandwagon as if it were the next big thing? It certainly had its moment in the sun. But at the end of the day, most people, including long-term and non-investors, believe in the investing power of real estate. That perception has fully rebounded from the hit of the 2008 crash and gained traction over every other investment vehicle. And as this real estate chart shows, it’s by a lot—today, 36% believe real estate is a great investment, while only 3% of people like cryptocurrency.

What does that mean for you as a real estate professional? Simple. It’s always a good idea to invest in real estate. So, when you’re talking to your clients, particularly your first-time homebuyers who are facing an uphill battle to get into the market right now, show them the positive dividends they could start earning as soon as they close on their first property.

7. When Is a Good Time to Buy Real Estate?

It’s obvious that the pollsters from Gallup didn’t ask real estate professionals this question. This real estate graph shows that 76% of respondents, the highest since just before the 2008 crash, believe that now is a bad time to buy a house. But you and I know better! Sure, there are obstacles to buying in the current market, but it’s never a bad time to invest in real estate. The sooner your buyers start creating equity, the sooner they can get a foothold on their investment portfolio and start building for their futures. 

So, when you have clients who start to pull back on the idea of owning, remind them that there’s no better time to buy than now, except maybe yesterday. But each day that goes by is another missed opportunity to earn equity. The barriers are real, but so are the opportunities for buyers who can exercise patience during the shopping process, negotiate terms like a boss, and trust the system. And you, as their agent, are here to get them through it.

8. Go East, They Said!

As an agent in Florida, I can attest to the accuracy of this real estate market trend graph—at least in Florida. Zillow’s predictions for the hottest housing markets of 2024 cover the Midwest, Great Lakes, and South. Part of the criteria for Zillow’s prediction is the affordability and home value increase stabilization predicted for these areas. All that means is that the housing market in these cities is stable and more affordable than many markets to the West, employment metrics are solid, and demand is steady. 

But what if you don’t work in one of the “best” cities? Don’t worry—there is still plenty of opportunity for savvy agents in practically any market. This moment might be a great time to find a real estate niche and become a local expert. Becoming an expert in a specific type of real estate will help you stand out from the rest of the competition and earn you the lion’s share of that particular market.

9. Home Sales Are Looking Up

If headlines and talking heads have you believing that the real estate market is tanking, you’ve been misled. Forecasters predict a higher rate of home sales for 2024 over 2023, including the Mortgage Banker Association (MBA) at 5.2 million and the National Association of Realtors (NAR) predicting 5.5 million. The average for all forecasts is 5.2 million for 2024 and 4.8 million for 2023. That means the industry is reaching back up to very normal levels. When comparing year-over-year sales, it’s important to remember that those “unicorn years” were abnormal. They were an anomaly, the likes of which we will probably never see again in this lifetime. Looking back at housing market graphs from the prepandemic days, we’re not so far away from those numbers.

Overall, real estate will continue because there will always be people who want or need to move. And there are myriad reasons for initiating real estate transactions—death, divorce, downsizing, investing, upsizing, military moves, employment moves, etc.—that are unavoidable. The difference is that you’ll need to be on top of your game and demonstrate your real estate expertise and marketing prowess to succeed.

10. Construction Finally Recovered from the Housing Bust

One of the factors affecting the current market conditions is the lack of inventory. Since the crash in 2008, new home construction has struggled to regain its foothold. That is until last year when it finally surpassed the precrash levels. And in the last year, new construction jobs increased by 250,000. So, over the next year or two, I expect the new construction real estate trend to provide a leveling off of home prices and constraints on inventory. 

I know that new construction was a big player when I recently sold a property as we competed head-to-head with several new developments in the area. Homebuilders have the ability to offer deep discounts and lower mortgage rates making them extremely competitive to get those new homes filled. I expect that to be the trend over the next few years, keeping resale prices down.

11. Mortgage Rates Are Finally Cooling Off

Another break for homebuyers is the leveling off of mortgage rates. As this housing market trend graph shows, it’s coming down slowly, but the rates are at least moving in the right direction. Many forecasters predict the rates will be around 6.6% by the end of 2024—a much more reasonable rate that might entice some sideline sitters to jump back into the home-buying process.

If you’re working with skittish buyers, keep reaching out to them. Nurture those buyers because they could jump back into the market in the next few months. This is a great time to preach about a good CRM—if you don’t have one to help you nurture your leads, you’re really making your life more difficult and possibly losing leads. Check out our article on the best CRMs to find the best fit for your needs.

12. We Still Need More Inventory

It’s true. We still need 1.5 million more homes to balance out the market. That number includes both for-sale and for-rent properties. We’ve been in a housing shortage since before 2018, especially for rental properties. New construction has yet to catch up to the market’s current needs, but it’s getting better.

What does that mean for you? This is a great time to start working with real estate investors, so make sure you’re talking to your sphere of influence about creating more rental properties. With the current status of home sales, more people will need to rent before they can afford to buy. So, if you have investors in your database, work with them to help create more of these spaces.

13. Generations With the Lowest Interest Rate

You might be surprised that Gen X and millennials locked in the best rates over the past few years at 4%. That’s great news for millennials who are coming into an age where upsizing from their starter homes might be a factor. millennials, as they come into their prime earning years, are actually making more money than any of the previous generations did at the same age. 

When you talk to your millennial clients, show them some hard numbers demonstrating their market power. Work with a lender to host classes on refinancing, investing, and even purchasing a second home. Millennials may not realize how much purchasing power they have, and you could be the key to unlocking their real estate potential.

14. Show Me the Equity

Still think the housing market is on the decline? Take a look at this chart—it shows how much homeowners have gained in just the first quarter of 2024 from the equity in their homes. Some markets gained more than $60,000 in equity for their homeowners. That’s a lot of moolah! 

What you can do, as a savvy real estate pro, is share these numbers with your potential buyers. Show them the path to building wealth for themselves. Most of the wealthiest people in the world are real estate investors, and they’ve amassed a large part of their wealth through those investments. But it all starts with the first real estate purchase. 

15. Remodels on Hold

With home sales slowing, naturally, remodeling is down too. That doesn’t mean it’s dropping off the charts completely. As fewer homeowners look to sell, they’ll be less likely to invest in remodels. But there will always be a need for remodels, repairs, and makeovers, no matter what the real estate market looks like. 

Obviously, the unicorn years brought adjacent businesses a lot of businesses along with the real estate sales boom. Today, these levels are returning to normal. It only looks like a sharp decline because it’s happening at a rapid pace. But truthfully, most industries, along with the real estate market, are leveling out and coming back to a normal level. 

16. A Cooling Market

This chart shows how long it would take to sell every currently listed home, which is an indicator of the health of the market. As I mentioned earlier, when you have six months of inventory on the market, that shows a healthy and balanced market. The current market is inching ever closer to that benchmark. The last time we saw a six-month supply was in 2016. 

This is your opportunity to shine by educating your clients on what a healthy and balanced market should look like. We’re currently still in a seller’s market, which gives home sellers a slight advantage over buyers. But the circumstances are shifting to give rise to more equal and mutually beneficial negotiations for both sides. Demonstrate your stellar ability to negotiate like a boss to assure your clients you’ve got their backs.

17. Inflation & Cost of Housing Biggest Problems

We all feel the current inflation, cost of living, and cost of owning or renting a home. This chart affirms those beliefs around the most important financial struggles everyone faces today, with the high cost of living/inflation topping the chart at 41% of respondents mentioning it and the cost of owning/renting a home second at 14%. It gives you some valuable insight into where your clients are coming from. Their fears and struggles are not invalid.

Be an active listener when your clients are working through their struggles. Be the agent who can empathize with their pain points, offer solutions, and guide them through their process to realize their dream without running head-first into reality’s unforgiving wall. Find answers to their questions by providing your expertise and outside-the-box thinking.

18. Check Out That Equity

I love this chart because it visually demonstrates what real estate investing can do for buyers and sellers. If someone purchased a home at $400,000 in 2024, they would potentially earn $72,405 in equity in just five years. When your clients can see the actual dollars, as in this chart, it makes real estate equity real. 

Show your clients something like this when you’re discussing their appreciation potential. You can use numbers reflective of your local market if you know what your annual appreciation percentage is. Get in touch with a lender if you need some help putting these numbers together. You can work up a few charts like this at multiple price points to use in your listing presentations. 

19. Why Buyers Didn’t Buy

This chart is very telling—buyers didn’t get out of the market solely because of home prices, they got out more often because of high mortgage rates, which tops this chart with 72.1% of respondents giving it as their reason. Both are important to home buyers in a cooling market, but I’m impressed with the fact that home prices were the least given factor. 

That’s good news for you because you can work with your buyers to come up with creative ways around higher mortgage rates. Work with your favorite lender to give your buyers options to help them find the path to home-buying success. There are tons of options available through different types of mortgages, larger down payments, and even some assistance programs that you can educate your buyers on. Open the doors of possibility for your clients, and they will thank you again and again.

Your Take

Real estate is a fascinating industry, complete with shifts that can happen overnight and peaks and valleys that can shake up even the most seasoned veteran agents. So when buyers and sellers can come together to complete a transaction without someone curling up in a fetal position, it’s a win. Arm yourself with the information in these real estate market charts, dispel common home-selling myths, and facilitate more wins for your clients and yourself.

Looking at these real estate charts, what do you see? Do you see a return to normal in the market? Have you seen real estate charts that contradict these ones? What can you take away from these real estate charts and the trajectories they portray? How can you use these real estate charts to help your clients make more informed decisions?

I would love to hear your ideas about the market and where it’s headed. Let me know your thoughts in the comments.

The post 19 Real Estate Charts: Breaking Down the 2024 Housing Market appeared first on The Close.

As a former real estate agent, host of the National Association of REALTORS(R) “Drive With NAR: The Safety Series” podcast, national speaker, and real estate safety expert for over 29 years, I’ve seen many ugly real estate scams. I’ll review the seven most common real estate agent scams and provide actionable tips on how to show your value and help consumers detect and avoid these issues. 

1. Wire Fraud & Financial Scams

Agents must be aware of numerous wire and financial real estate frauds and scams. But let’s first look at the data.

The numbers: 

• In 2022, Business Email Compromise (BEC) reported there were 2,284 reported attacks totaling $446.1 million in losses in the real estate industry. 
• Over 71% of consumers surveyed in the 2024 State of Wire Fraud Report by CertifID, a wire fraud protection company, stated they weren’t warned about the potential for wire fraud. 
• Approximately 25% of all real estate transactions involve some kind of fraud.

Cybercriminals use AI tools such as ChatGPT, Gemini, CoPilot, Midjourney, etc., to write fake phishing emails, texts, videos, photos, and voice impersonations. These criminals also create phony websites to steal information and trick targets into making payments on non-existent properties and sharing their financial data.

Over 60% of consumers state that their real estate agent didn’t discuss the possibility of wire fraud during the transaction. With the growing popularity of generative AI, cybercriminals can now write grammatically correct and persuasive fraudulent wire change emails. In the past, real estate scam emails were easy to spot, poorly written, and in broken English.

Warning Signs

Cybercriminals use generative AI tools in real estate fraud to create realistic-looking deepfake images of people or properties that do not exist in real life. They can utilize tools like Google Lens to do image searches.

Phishing emails from lenders seeking financial or personal data could be infected with malware and ransomware links.

How to Avoid Wire Fraud & Financial Real Estate Scams

• Encourage clients to independently confirm all transaction details, property information, and identities through official sources and your counsel. 
• Advise clients to refrain from responding to wire change instructions or requests for financial information emails that could be written with AI tools. 
• Establish code words for each client to confirm whether transactions and requests are legitimate.
• Protect your clients from AI home buying scams by implementing rigorous security measures and providing confirmed authentic contact details for all real estate professionals involved in the transaction, including the lender, inspector, etc.
• The National Association of REALTORS(R) provides an email template with a wire fraud warning that should be added to all outgoing email signatures. This can be used by agents to show their value and expertise while protecting consumers from housing scams.

2. Disaster Contractor Scams

If you have listings or work in an area that experienced a weather-related disaster, you must inform your homeowner clients about contractor real estate scams.

The numbers:

• In 2023 $9.3 billion was lost to post-disaster fraud.
• Last year set a record for billion-dollar weather and climate disasters in the US With 28 separate events, each costing at least $1 billion, the total catastrophic losses exceeded $93 billion.

Real estate scam artist contractors target neighborhoods with storm damage. They go door to door and offer to help homeowners work with their insurance agent to file a claim to cover the damage. Their next step is to convince the consumer to let them negotiate on their behalf and receive payments for the work to be done. Or they convince the owner to pay upfront. Once they start the work, they abandon the job, leaving victims in unsafe and unrepaired homes. In addition, some criminals also collect donations for fake charities for disaster relief. 

Warning Signs

Dishonest contractors demand upfront fees for repairs 

Beware if the contractor cannot show proof of insurance, bonding, a business license, verifiable credentials, and legitimate past clients

Aggressive sales tactics, unclear or evasive responses, and hesitation to provide written estimates or contracts

How to Avoid Disaster Contractor Scams

• Offer to assist homeowners by vetting contractors, confirming business locations, checking licenses, insurance, and reviews. 
• Advise them never to pay the total for repairs upfront; establish a payment schedule tied to completed work.
• Homeowners should get at least 3 professional quotes.

To help disaster victims, consider donating to credible organizations like the National Association of REALTORS(R) REALTORS(R) Relief Foundation. The Foundation provides housing assistance to those impacted by disasters.

Coni Meyers, president of Crisis Knowledge Management & Preparedness Foundation, advises agents to express their value proposition by guiding their clients in the aftermath of disasters. She offered tips for agents to serve the consumer during her guest appearance on “Drive With NAR: The Safety Series,” the safety podcast for the National Association of REALTORS(R).

3. Rental, Airbnb & Craigslist Scams

Short-term rental and other house-buying scams are on the rise. Check out these real estate statistics on tenant and rental scams.

The numbers:

• There were almost $400 million in losses due to short-term rental scams in 2022.
• In 2022, 12,000 people fell victim to real estate scams, including short-term rental schemes.

Cybercriminals create pictures of properties that don’t exist. These real estate scammers favorably manipulate property images designed to deceive visitors into paying to reserve the unit. Tenants seeking to rent are also targeted through platforms like Craig’s List. The goal is to facilitate wire fraud by requesting electronic payments and deposits through phishing emails and texts. Cybercriminals are making scam phone calls and videos created with deepfake impersonated voices.

Warning Signs

Criminals can create and manipulate pictures of properties that fool the unaware eye. ChatGPT, CoPilot, Midjourney, Canva, and other AI tools allow realistic images and photos to be easily created in seconds. 

Avoid requests to pay off the platform. Criminals will offer discounts and try to entice visitors to pay them directly. The official platforms provide protection and security measures.

Beware of videos depicting people saying things, text from people writing things that sound too good to be true, or requesting personal or financial information.

How to Avoid Rental, Airbnb & Craigslist Scams

• Before acting, advise clients to verify identities and information through secure channels and official platforms.
• Use encrypted communication channels and watermarked documents
• Encourage strict payment procedures only on the platform while warning clients about wire fraud risks
• Stay updated on deepfake technology and provide cybersecurity training.
• Scrutinize photos, videos, and written requests for data. 

4. Real Estate Land Scams

Land scams can be difficult to identify because they involve no inhabitants and locked doors, as is typical when selling a building.

The numbers: 

• According to the FBI, real estate and rental scams continue to rise, with more than $396 million lost in 2022.
• 77% of surveyed real estate professionals reported a rise in seller impersonation fraud attempts.

Scammers pose as out-of-state property owners selling land they don’t own, aiming to list and sell it illegitimately. Brandie Kittle, broker-owner of Trailhead Realty Group, thought she was dealing with a legitimate owner who had the deed to land because they knew the neighbors and didn’t seem rushed. However, she couldn’t get them to provide identification when asked. After listing the property, she learned it was a scam.

Warning Signs

The “seller” refuses to provide ID or evades questions.

If the seller can’t answer detailed questions about the property or location.

If the seller claims to be out of town or out of the country and unable to meet at the site.

How to Avoid Real Estate Land Scams, Protect Buyers & Sellers

• Verify ownership and identities through official records and documentation— test sellers’ property knowledge. 
• Use real estate safety apps like Forewarn to confirm identities, check for criminal convictions, and verify financial records.

• Trust your instinct: If something feels wrong about the land or seller, walk away or investigate further.
• Request identification from the seller.
• Do not allow them to use their notary. Require the seller to notarize the listing agreement using a remote online notary service, which includes multi-factor identification.
• Mail a short note to the owner on record at the address listed on the property tax records. Call them if a phone number is provided on the property tax card.
• Always use a reputable title company for the closing process.

5. Real Estate Social Media & Online Scams

Social media is an excellent way for real estate agents to promote their businesses. However, it is also like the Wild West, providing ripe opportunities for scammers to exploit people.

The numbers:

• Losses to scams on social media were $2.7 billion from the 1 in 4 people who lost money to scammers
• The FBI’s Internet Crime Complaint Center (IC3) registered more than 880,000 complaints of online fraud in 2023

Cybercriminals use social engineering to steal identities and hijack social media account access, allowing them to post damaging content or erase data and hijack social media accounts. Most dollar losses are to scams that use social media to promote fake investment opportunities. These include real estate investment deals, fraudulent business pages, and hijacking a real estate agent’s profile. 

Warning Signs

You may have been hacked if you cannot log into your social media accounts. 

If your followers and friends message you and tell you they received inappropriate messages or requests, check your account.

Real estate scammers create ads or post salacious content. 

How to Avoid Real Estate Social Media Scams

• Implement robust cybersecurity protocols, including passphrases and two-factor authentication.
• If you’re a broker or manager, provide real estate agent tips and regular training for your agents and teams. 
• Do not click on links or download from sites or people you do not know
• Avoid connecting with strangers on social media without vetting. Cybercriminals can impersonate users and scam contacts, friends, and family. 
• Investigate tools such as Forewarn to confirm the identities of new clients, check criminal backgrounds, and verify financial status.

6. Moving Scams

Another one of the biggest real estate frauds is when people need to hire a mover. Check out these stats.

The numbers:

• A four-state operation in 2023 discovered more than 1,000 violations of Federal Motor Carrier Safety Administration (FMCSA) regulations. 
• Consumers lost an average of $836 to moving scams in 2023, 7% more than in 2022

Dishonest movers lure clients with lowball estimates, then demand inflated prices once belongings are loaded, creating a “hostage situation.” “The mover will lowball the price and, upon pick up and delivery, request that the shipper pay more, or they will not pick up or deliver. Both are now illegal to do,” said Anthony Booker, a moving consultant for Nationwide USA Movers.

Warning Signs

Lack of proper licensing and insurance

Extremely low estimates compared to market rates

Offering quotes sight unseen without an in-home inspection

Multiple negative reviews or history of complaints

Demanding large cash deposits upfront

Using rental trucks or lacking company logos/branding

No physical business address listed

Refusing to provide written estimates or contracts

How to Avoid Moving Scams

• Successful agents will advise clients to obtain binding quotes in writing, beware of fake reviews, and verify movers through the FMCSA website. 
• Report any problems to the appropriate authorities.
• Protect your clients from moving scams by guiding them through vetting and recommending movers with good reputations.
• Participate in NAR’s annual Realtor Safety Month to stay informed about the latest real estate scams.

7. We Buy Ugly Houses Scams

The numbers: 

• 22.6% of property fraud risks occur when the property is undervalued and its value misrepresented.
• According to the FBI’s Internet Crime Complaint Center, real estate fraud resulted in nearly $400 million in victim losses in 2022.

Buyers target desperate homeowners, often facing foreclosure or financial issues, with lowball cash offers below market value. They use high-pressure tactics or false promises to purchase and resell for profit. They can also target desirable neighborhoods and flood them with postcards and letters with cash offers. 

Warning Signs

Extremely low offers compared to market value.

Requests for large upfront payments.

Lack of company website/address.

Failure to provide required legal disclosures.

How to Avoid:

• Advise sellers to research the company’s reputation, online presence, and licensing
• Do not pay upfront fees before the sale finalizes
• Beware of high-pressure tactics
• Insist on a written contract detailing all terms, costs, obligations
• Encourage homeowners to work with a licensed and knowledgeable real estate agent
• Offer a comparative market analysis (CMA) or encourage homeowners to get an appraisal to determine the home’s value, even if you don’t get the listing. You can charge a nominal fee for CMAs, saving the seller tens of thousands!
• Trust instincts; walk away if something seems off or the investor is overeager

Bringing It All Together

Safety sells in today’s real estate market. In the aftermath of the massive $418M commission lawsuit, prioritizing client safety is no longer optional—it’s a necessity for survival and thriving and the perfect way to establish your value proposition. Agents can add robust safety practices woven into their business model. Build trust, credibility, and loyalty that keeps clients coming back. Clients who feel secure working with you will be loyal, increasing your earnings.

Your Turn

What real estate scams are you or your clients encountering? Let us know below!

The post 7 Real Estate Scams & Ways Agents Can Protect Their Clients appeared first on The Close.

What Is Real Estate Data Analytics?

Real estate data analytics is an umbrella term that describes using different types of data to make better business decisions. It includes collecting data, analyzing it, and applying it. Data can be gathered, analyzed, and even applied manually or using a real estate tech tool.

What Can Agents Use Real Estate Data Analytics for? 

Real estate professionals often use data and analytics even more than they think in their day-to-day work. The term “data analytics” might sound like complex, highly advanced technology—and sometimes it is. Other times, it actually describes tasks and processes that agents have used for decades.

A few examples of data analytics in real estate include the following: 

• Analyzing the housing market: Using data from national real estate companies makes it easy for agents and brokers to evaluate market trends, anticipate inventory challenges, and help clients set realistic expectations to get the best value from their sale or home purchase.
• Conducting property valuations: Listing agents can accurately price a home for sale by having data like current and past property values and sale prices of similar homes. 
• Leveraging predictive analytics: Predictive analytics companies use historical data combined with user behavior to predict things like future listings and market fluctuations.
• Creating a comparative market analysis (CMA): A CMA gathers details about recent sales and estimates a property’s worth based on the sales of similar properties in the area.
• Keeping track of social media conversations: Social media listening is a new strategy used by real estate data analysts to gather information about how a topic is discussed. For example, Sprout Social uses an artificial intelligence (AI) listening tool to determine how many people are talking about a specific topic, how they’re discussing it, and the audience demographics.
• Evaluating marketing performance: Analytics are important for every area of online marketing, including social media, digital ads, and websites. These real estate analytics help you determine which areas of your marketing strategy are successful and which areas need more attention.

Benefits of Real Estate Data Analytics + Case Studies

The biggest benefit of gathering data in real estate isn’t just the data—it’s the ability to leverage the information to make intelligent, educated decisions for your business. Website visits, social interactions, email activity, and real estate portals generate great data, but you must know how to translate that data into strategic business decisions. A few of the main benefits of using data in real estate include the following:

• More insight: Having real-time data helps develop a deeper understanding of the real estate market or the behaviors of your target audience.
• Better decisions: Data helps you make decisions based on facts and data instead of guessing or following other trends.
• More effective marketing: By knowing how your audience is behaving, you can craft marketing funnels that appeal to them more directly and personally.
• Continuous improvement: Real estate data analytics shows you exactly what is working and what is not working so that you can make the most strategic and effective adjustments.

Case Study One

Many people publish a real estate website and then barely look at the site’s performance. However, learning to understand the analytics will help you see things like:

• How people are finding your website
• How many, or few, pages they are visiting
• Which website pages are getting the most visits

With this valuable information, you can change your website to guide viewers to the right places and ultimately generate more leads. These updates could include refreshing search engine-optimized keywords to target the right audience, adding alternative text to images to make your site more accessible, and ensuring your site is optimized for mobile. 

Case Study Two

By incorporating additional tools, you can even further leverage the power of real estate data analysis to generate and nurture new leads. An example of this is Homebot, a predictive analytics tool that allows website visitors to see the estimated value of their home automatically. It also provides additional tools for different types of leads or website visitors, like home buyers and homeowners looking to maximize the value of their homes.

The platform gathers data from the user’s behavior and generates customized landing pages for each type of visitor. Learn more about Homebot in our review.

Case Study Three

It’s no secret that social media can be a massively powerful strategy to grow a real estate business. While Instagram, Facebook, and other real estate social networks will provide basic analytics for users with business accounts, you can make a huge impact by leveraging data from social media.

For example, one real estate brokerage started focusing on its social media data and saw a 100% increase in monthly website visitors and a 10% increase in clicks from its campaigns. Instead of guessing what your audience wants to see and manually posting content, use social media marketing tools to gain more insight and automatically improve your techniques.

Social media analytics can help you determine:

• The best times to post for your specific audience
• Which content gets the highest engagement rates
• The most relevant hashtags and topics to reach your audience
• How your competitors are using social media and how to improve on it

Top Tools for Real Estate Data Analytics

There are many different areas of real estate analytics, from marketing to economics and demographics. As you learn how to successfully use data in real estate, consider investing in some of the best tools for gathering, organizing, interpreting, and applying valuable insights.

A few of the best real estate data analytics tools include the following:

• Zillow: Zillow’s website has a section dedicated to providing users with current housing market data, such as current home values and predicted home values in any given region. For Zillow Premier Agents, it also tracks the performance of every lead.
• Offrs: This predictive analytics platform identifies properties and homeowners most likely to sell in the coming year.
• Homebot: This predictive analytics tool helps nurture leads with customized information and marketing.
• RealPage: This property management software provides data and tools for leasing, marketing, and managing tenants, as well as finances.

Zillow publishes valuable data for the real estate industry and provides many tools to help agents build their businesses. Realtors who become Zillow Premier Agents get to connect with buyer leads directly from the platform, and since Zillow is the most popular real estate website, this is an ideal way to generate leads. Learn more about Zillow Premier Agent in our review.

FAQs

How is data science used in real estate?

What is the best source for real estate data?

What should I look for in a real estate data tool?

Bringing It All Together

Data is a huge part of real estate; the most successful agents learn how to leverage it to build a strong business. Real estate data analysis can help you serve your clients better, reach new leads, understand the real estate market, customize and automate your marketing strategy, and close more sales—there are almost no limits! How will you use data to move your business forward?

The post The Ultimate Guide to Real Estate Data Analytics appeared first on The Close.

The Close’s Top Picks for Best Real Estate Company to Work For

1. Redfin: Best Real Estate Company for Relocating to a New Market

Pros	Cons
Salary-based creates a stable income stream	Low salary and minimal transaction bonuses compared to independent agents
Access to medical/dental benefits package	Insufficient training for a new agent
Company-generated lead source	Less flexibility than traditional agents
All expenses covered, unlike independent agents	No opportunities to learn the many aspects of running a real estate business
Marketing done for you

Why I Chose Redfin

I can hear you gasp! How could I choose Redfin over other brokerages as the best real estate company to work for? But hear me out: Redfin’s model may not be right for you, but if you’ve ever weighed the pros and cons of being a real estate agent, then you know there are a lot of factors to consider that may make this business model a good fit for some agents, particularly a real estate agent who has to pick up and move to another market (I’m looking at you, military spouses—I know your pain!). Redfin might be the perfect transition solution for relocating agents.

You don’t have to have an established sphere of influence; you get leads fed to you, and you get a real estate agent salary (paltry, but not zero) to help you get established in your new market before you make a move to one of the other top real estate firms to work for on this list.

• Salaried positions with benefits: Agents can get their feet wet without having to sacrifice paying their bills or going without medical insurance.
• Strong online presence and lead generation: Redfin is a recognized name and excels at generating leads for its agents.

What I Think Would Improve Redfin

One of the things agents are expected to give up is flexibility. If agents had more control over their days, it might be better suited to more agents. According to reviews of the company, agents make a lot less than working the traditional route as independent contractors, even after covering their business expenses. Some agents might find another job they can do with their real estate license over working at Redfin.

2. Fathom Realty: Best Real Estate Company for Part-time Agents

Pros	Cons
Low monthly fees and low transaction fee	Limited in-person support and resources
Cap at 15 transactions, not a dollar amount	Less brand recognition compared with larger brokerages
Stock options offered as part of compensation	Agents responsible for generating their own leads
Training provided for agents
Cloud-based brokerage offering flexibility

Why I Chose Fathom Realty

Fathom Realty is smaller than many brokerages on this list, but it’s growing quickly. It focuses on innovation and leading-edge technology to help seasoned agents who thrive independently, which is especially helpful for agents who want to work part-time. It’s a cloud-based brokerage, tapping into the latest trends in real estate companies. Its agent focus pushes it into “The Best Real Estate Agency to Work for” category this year.

• 100% commission model with low fees: Instead of the traditional commission split, Fathom offers 100% commission with a transaction fee, leaving more money in the agent’s pocket.
• Stock options for agents: Earn stock in the company as bonuses for sales and referrals.

What I Think Would Improve Fathom Realty

The one area that could help Fathom Realty is adding lead generation support for its agents. When you sign up with Fathom, you get business cards and some real estate marketing materials, but most of the marketing and branding falls squarely on the shoulders of its agents. Fathom can invest in its own branding to help increase brand recognition and recruiting efforts, making it easier for agents to build their own teams.

3. eXp Realty: Best Real Estate Company for New Agents

Pros	Cons
Agent-centric, cloud-based model with low overhead	No brick-and-mortar office locations
Massive library of on-demand training materials + virtual live training	Limited in-person support and mentoring
Transparent commission structure that’s advantageous to all agents	Focus on recruiting may have tarnished its reputation
Revenue sharing and stock options for agents	Relies heavily on technology, which may have a learning curve
Equity sharing incentives	Some agents may find virtual environment less engaging

Why I Chose eXp Realty

Over the past few years, eXp has stood out as the first large-scale cloud-based brokerage, and it’s continued to innovate and stay competitive as one of the best real estate firms to work for. One area that really pops is eXp World, which is a virtual platform that includes classrooms, boardrooms, meeting spaces, and conference rooms.

• Cloud-based virtual brokerage: Agent-focus with virtual environments puts agents in the driver’s seat, giving them access to tools and resources on demand.
• Emphasis on agent support and training: There is a ton of available training, networking, and more in the virtual world, as well as in-person training.

What I Think Would Improve eXp Realty

With such a huge focus on leading-edge technology, one way eXp could improve is by spending more time educating agents in its onboarding process. For many agents, the tech alone is quite intimidating. By providing more localized support and resources, agents might have an easier time adjusting to the virtual environment.

4. Compass: Best Real Estate Company for Luxury Agents

Pros	Cons
High-end, unified branding and marketing; much of it done for you	Relatively exclusive; application process to become a Compass agent is difficult
Marketing and support tools offered to agents	No standard split or cap structure
Excellent reputation among high-net-worth homeowners	Rapid growth may lead to a lack of support, volatility, and instability
Technology is prioritized, especially with tools like its Likely to Sell lead program	Higher desk fees and other costs compared with some brokerages
Attractive commission splits and financial incentives	Some markets may be more competitive due to high concentrations of Compass agents

Why I Chose Compass

Compass has made a name for itself in the luxury real estate market, providing agents with the tools, support, and brand recognition needed to succeed in this competitive niche. By leveraging Compass’s cutting-edge technology, sophisticated branding and marketing strategies, and extensive network, agents can effectively navigate the unique challenges of luxury real estate.

• Excellent high-end branding: Agents will step into a fully recognized luxury name with stunning branding. 
• Fully integrated marketing platform: Technology drives the Compass company with tools for agents, including Likely to Sell, to generate and nurture leads as well as build a solid personal brand.

What I Think Would Improve Compass

One way for Compass to become more friendly for agents is to reduce its desk fees and other costs for joining its ranks. I’m not going to lie, Compass is not inexpensive, which gives it an air of exclusivity. However, it also raises the barrier to entry.

5. REAL Broker: Best Real Estate Company for AI-powered Technology

Pros	Cons
Agent-centric, cloud-based model	No brick-and-mortar office locations
Tech-forward and innovative tools for agents	Limited in-person support and mentoring
Transparent commission structure that’s advantageous for all agents	Less brand recognition than other brokerages
Five-tier revenue share plan attractive for recruiting
Generous equity share opportunities
Plenty of room for growth

Why I Chose REAL Broker

Previously, REAL was listed as an industry disruptor. And REAL is still disrupting the industry, but now it’s more of a serious player and begging other brokerages to follow its lead. It is known for being a huge AI-tech innovator in the real estate space. 

• Agent-centered 100% commission model: REAL is a cloud-based, 100% commission model that focuses on agents instead of the traditional brokerage model.
• Access to a wide range of technology tools: If you love all the latest tech in the real estate space, you’ll love the innovative feel of REAL Broker.

What I Think Would Improve REAL Broker

As cool as all the real estate tech is, it’s intimidating to a lot of agents. REAL could spend more time on comprehensive training and mentorship programs to help agents get started in their real estate business. For its more seasoned agents, offering additional incentives for high performance would help with retention in the long run.

6. lpt Realty: Best Real Estate Company for Building a Team

Pros	Cons
Flexibility in how you split commissions	No brick-and-mortar office locations
Custom marketing materials included with every listing	Limited in-person support and mentoring
Technology included free of charge, including website and CRM	Lot less brand recognition than other brokerages
Individual office branding encouraged	Not available in as many markets yet
Seven-level revenue share	Reliance on tech can be intimidating for many agents

Why I Chose lpt Realty

If you want to talk about disruptors, this year’s newest company in this category is LPT Realty, with its sleek custom marketing for every listing and the mortgage lender part of the company, making a lot of the agents’ lives smoother. It’s a tech-forward company, changing how agents think about real estate brokerages. This is one to keep your eye on, as it could beat out several others as the best real estate company to work for over the next year.

• Mortgage process automation: The owner of LPT Realty also owns a mortgage company and a title company, keeping things simple for agents and streamlining processes.
• AI-driven property insights: LPT Realty uses proprietary mobile-first technology to create data points to help agents target their marketing.

What I Think Would Improve lpt Realty

The biggest struggle for LPT Realty right now is name recognition and national-level branding. But considering it started only in February 2022, it’s on track to expand quickly. In the two and a half years since its inception, it has already expanded to 20 states with nearly 10,000 agents.

7. RE/MAX: Best Real Estate Company for Experienced Agents

Pros	Cons
Strong brand recognition and global presence	Higher franchise fees and desk fees compared with some brokerages
Various training and support resources offered to agents	Inconsistent support and resources across different offices
Flexible fee structures and commission splits available	Some markets are highly competitive and saturated with RE/MAX agents

Why I Chose RE/MAX

When it comes to the gigantor, a globally recognized brokerage, RE/MAX stands out as one of the longest-running and best real estate companies to work for. Seasoned agents can keep more of their commissions in their pockets and run their businesses however they want. 

• Comprehensive training programs: Agents can choose from an extensive selection of video or in-person training.
• Variety of franchise models and fee structures: RE/MAX follows the traditional franchise model, so each location offers its own fee and commission structure.

What I Think Would Improve RE/MAX

With a traditional franchise model like RE/MAX, you never know what you’re going to get when you meet the brokers. More standardization might help attract agents to the brokerage. Also, more innovation, tech tools, and resources to help its agents stay competitive could improve its retention.

Let’s Talk Boutique Brokerages 

I’ve talked about some big names in real estate and discussed their commitments to training, mentoring, branding, and financial incentives. But the truth is, a big, national brokerage may not be the best real estate brokerage for new agents—in fact, it often isn’t. Most well-known national brokerages are built on a franchise model, meaning every independent office differs. 

For example, while Keller Williams, as a company, values educating agents, your individual franchise office might not. How do you evaluate whether it’s one of the best real estate companies to work for when they’re all different?

I encourage every agent (whether looking for their first brokerage or wanting to switch companies) to consider a boutique brokerage in their local area. I happen to be a big fan of smaller shops, and here’s why:

1. Generally, your broker is personally invested in your success.
2. There’s potential for a lot more face time with the boss.
3. Smaller brokerages often feel like a team or even a family.
4. You generally have more control over your individual branding.
5. There is often an opportunity for better, or at least more individualized, support.
6. Often, local brokerages are heavily engaged in and striving to make a lasting impact on their communities. 
7. Boutique brokerages may have better reputations than their big-name competitors in their local communities.

In fact, I personally made the switch from a big-box brokerage to a boutique one and never looked back.

For me, switching to Spence Properties, an independent brokerage in Crestview, Florida, is the most impactful decision I have ever made for my real estate career, and my brokers are the best real estate brokers to work for. In my smaller brokerage, I have directly tapped into the vast knowledge, skills, and experience of my broker and broker associates. They provided the mentorship I sought, and my fabulous brokers made my meteoric rise to real estate success possible. I love my small brokerage and wouldn’t trade it for anything.

When I was considering making the switch, I considered these the most important qualities for finding the best fit for me and my budding real estate career:

• Culture
• Training and Mentorship
• Technology 
• Resources and Support

In the end, I chose a brokerage where I felt inspired, supported, and welcomed. Find a brokerage that fits your personality, your goals, and your needs.

FAQs

What is the best real estate brokerage for beginners?

What are the most important questions to ask in a broker interview?

What percentage do most brokers take from new agents?

What should I expect as a new real estate agent?

How important is technology, marketing, and lead generation?

Methodology: How I Chose the Best Real Estate Companies to Work For

When evaluating the best real estate companies, I used a comprehensive rubric to assess key elements essential for agent success and satisfaction. The rubric includes factors such as commission splits, fees, profit and revenue sharing opportunities, technology tools, marketing support, lead generation resources, training and mentorship programs, and overall company culture.

My goal is to highlight real estate companies that offer the most advantageous commission structures, minimal fees, and opportunities for additional income through profit and revenue sharing. I also emphasized the quality and scale of technology tools, marketing support, and lead generation resources—tools critical for agents to succeed in today’s competitive market.

I also recognize the importance of professional development and growth opportunities, assessing each company’s training and mentorship programs. A supportive company culture that provides collaboration, innovation, and work-life balance is essential for agent satisfaction, retention, and long-term success.

Throughout this comprehensive evaluation process, I identified standout real estate companies in several categories providing the best overall package for agents, offering multiple financial benefits, cutting-edge tech tools, robust support systems, and a nurturing work environment. My goal is to provide a valuable resource for real estate professionals seeking a company that aligns with their goals and empowers them to thrive in their careers.

Your Take

Deciding which brokerage to hang your license with can be overwhelming. Believe me, I get it. So, take your time and do your research. As I’ve pointed out, many of your local brokerages have their own culture, commission splits, tech stacks, and marketing to give their agents the tools they need to find their own path to success. Interview many of them. Learn what fits best for your goals and needs. And maybe even more importantly, you need to fit the culture of the brokerage you choose. But don’t worry if you don’t like your initial choice, you can make the switch when you need to. 

Have you made a brokerage change in your career? How was it? What was most important to you when choosing your new brokerage? Let me know in the comments.

The post Best Real Estate Company to Work For in 2024 appeared first on The Close.

1. Net-zero Buildings

Net-zero, or zero-energy, buildings are designed to use renewable technologies that generate enough energy to fulfill their annual consumption requirements. Their increasing presence on real estate charts shows they are shaping today’s market. Homebuyers are now prioritizing sustainability and energy efficiency in their property investments.

Renewable Energy Integration

Renewable energy integration is as popular as ever this year. Technologies such as solar panels, geothermal systems, and wind turbines are used in building designs to reduce reliance on regular power sources. Although it might be expensive initially, it will benefit your clients with long-term cost savings. Promoting renewable energy to your clients will be easy. According to the National Association of Realtors (NAR), 34% of Realtors reported that properties with solar panels increased their perceived property value.

As agents, you can enhance your services by educating homeowners about the benefits of integrating renewable energy solutions into various home styles.

Green Roofs

Green roofs, where seasonally adaptable plants are grown on a building’s roof, have a high return on investment. They help regulate indoor temperatures by insulating the roof, reducing the energy needed for heating or cooling. Green roofs also offer neighbors a pleasant view and serve a dual purpose as a place to grow vegetables or herbs in urban areas. Potential clients from cities with limited greenery especially love green roofs because they bring nature into urban environments.

Geothermal Systems

When it comes to green building technologies for residential homes, the Earth’s power is hard to beat. Geothermal systems utilize the Earth’s natural warmth to provide buildings with heating, cooling, and hot water—a process that will cut down your clients’ electricity bills!

Internet of Things & AI Integration

With artificial intelligence (AI) improving and automating everything in our lives, this green building trend is becoming more prevalent. Incorporating the Internet of Things (IoT) and artificial intelligence (AI) into green buildings includes installing smart sensors and automated systems to manage energy consumption and lessen environmental impact. By installing automated home systems, occupants can control several aspects, such as lighting, ventilation, air conditioning or heating, and even security.

2. Energy & Water-efficient House Trends 

According to NAR, 63% of Realtors said energy efficiency in listing promotions was very or somewhat valuable. As sustainability continues to be a key consideration for prospective buyers, more homeowners now incorporate energy and water-efficient technologies into their properties.

Energy-efficient Windows & Doors

One of my favorite green building trends is energy-efficient windows and doors. These are similar to traditional windows but with double or triple-glazing and tighter seals to prevent air leakage or heat transfer. Due to their environmental benefits, energy-efficient windows and doors significantly boost real estate listings. They reduce heat transfer, keeping interiors warmer in winter and cooler in summer. This efficiency translates to lower energy costs for homeowners, a key selling point.

Energy-saving Appliances

Energy-saving appliances are becoming more popular in homes as they consume less energy while maintaining optimal performance. Properties equipped with energy-efficient appliances often qualify for green certifications, which only boosts their market value. If you still haven’t noticed, homes with energy-saving appliances like refrigerators, washing machines, air conditioners, water heaters, and dishwashers usually attract a larger pool of potential buyers.

When recommending appliances to clients, prioritize those bearing the ENERGY STAR label, as they are recognized for their energy efficiency and performance. These appliances reduce utility bills, making them a smart choice for eco-conscious homebuyers.

Indoor Air Quality Monitors

Indoor air quality (IAQ) devices installed in home heating and air conditioning systems provide a healthier indoor air environment by eliminating germs, dust particles, mold, odors, mildew, and bacteria that can cause illness. They also reduce home emissions and improve a house’s value by reducing monthly energy/gas costs.

Smart Lighting Systems

These systems aren’t a new trend, but an evolving one. Smart lighting systems are becoming more integrated into smart home setups. They offer adjustable lighting options, energy-saving features, and automation capabilities. Users can control lighting through their mobile devices or voice commands. Smart lighting systems also consume less energy by adjusting lighting levels based on natural lighting conditions and room occupancy. This is really smart, isn’t it?

3. Sustainable Materials

This year, I expect to see more properties constructed with sustainable materials, such as eco-friendly paints, recycled glass, aluminum, and natural materials like hemp, bamboo, and wood. These materials are a greener alternative to traditional construction materials, eliminating waste and promoting resource conservation.

Eco-friendly, Non-toxic Paints

Eco-friendly paints for homes improve indoor air quality and complement your clients’ interior design. These paints are crafted from natural ingredients, have reduced pollutant emissions, and contain fewer harmful chemicals, such as volatile organic compounds, which can cause respiratory problems. Some common brands of eco-friendly paints are ECOS Paints, AFM Safecoat, and BioShield.

Did you know? Buildings that use eco-friendly and non-toxic paints can earn more points toward Leadership in Energy and Environmental Design (LEED) certification, a recognized standard for green buildings.

Natural & Recycled Materials

Nothing you’ve never seen before, but we see a steady growth in using natural materials in design and construction. Due to their minimal environmental impact, builders increasingly integrate wood, cork, bamboo, hemp, straw, and recycled glass and steel into their designs. Your eco-conscious clients prefer this type of property as it minimizes the release of harmful chemicals commonly found in conventional buildings.

Here’s an example of a sustainable property: The Nature Inn at Bald Eagle, Pennsylvania. This award-winning eco-lodge features amenities made from recycled and natural materials. For instance, its outdoor patio furniture is made from recycled aluminum, and its floor and wall tiles are partially made from recycled glass.

4. Disaster-resilient Design

In response to climate change, architects are designing buildings that adapt to shifting environmental conditions and withstand earthquakes, fires, and floods. Recommending disaster-resistant properties to your clients demonstrates your commitment to sustainability and contributes to building safer communities. Homes designed to withstand disasters tend to have high property values and appeal in the market as they reassure potential buyers and may qualify for insurance incentives. 

Earthquake-proof Buildings

As technology progresses, there’s an increasing focus on incorporating earthquake-proof design principles into new construction projects. Buildings are now made to weather earthquakes using reinforced concrete frames, shock absorbers or base isolation systems, and seismic dampers. Some prospective clients prioritize earthquake-proof buildings as they provide safety and peace of mind.

Wondering what earthquake-proof buildings look like? Here are some earthquake-proof buildings around the world:

• U.S. Bank Tower in Los Angeles, California
• Burj Khalifa in Dubai, United Arab Emirates (pictured below)
• Philippine Arena in Bulacan, Philippines
• The Shard in London, United Kingdom
• The Transamerica Pyramid in San Francisco, California
• Tokyo Skytree in Japan

Fire-proof Construction

Another prevalent building trend is constructing fire-resistant properties. These buildings incorporate additional measures such as:

• Fire-resistant cladding or using non-combustible materials such as fiber cement, brick, stone, and metal to cover the external walls
• Compartmentation, or dividing the structure into smaller sections to slow fire spread
• Smart fire alarm systems to detect smoke and alert building occupants

Some homebuyers love fire-proof properties because of their structural integrity. These homes offer safety and protection against fire hazards, giving occupants more time to escape in the event of fire.

Flood-resistant Architecture

A flood-resistant design is essential to construction today, as floods are the most frequent disasters we encounter each year. Flood-proofing involves:

• Elevating buildings
• Installing smart flood barriers or waterproofing systems
• Using durable and water-resistant materials
• Incorporating effective drainage systems

Purchasing flood-resistant properties is a no-brainer. When you get a flood-resistant property listing, simply highlight features such as its flood barriers, drainage systems, and elevated foundations.

5. Green Building Certifications

With people’s growing concern about the climate crisis, green building certifications have become a notable trend over the past few years. More and more buyers, tenants, investors, and developers are now seeking green-certified buildings to minimize energy costs and reduce their environmental impact. These certifications demonstrate each building’s commitment to sustainability by meeting specific standards.

Some of the most recognized green building certifications include:

• Leadership in Energy and Environmental Design (LEED): Developed by the U.S. Green Building Council, LEED evaluates buildings based on criteria such as water and energy efficiency, indoor environmental quality, and design innovation.
• WELL Building Standard: Designed by the International WELL Building Institute, the WELL Building Standard is a performance-based system for measuring a building’s impact on human health. It assesses factors impacting people’s well-being, including air, water, nourishment, light, fitness, comfort, and mind.
• Building Research Establishment Environmental Assessment Method (BREEAM): A widely used certification program in Europe and other parts of the world, BREEAM focuses on assessing a building’s sustainability performance, adaptability to climate change, and whether its design has low environmental impact.
• Energy Star: This program by the U.S. Environmental Protection Agency recognizes buildings that meet energy efficiency standards.

Do you want to be certified in real estate sustainability as an agent? NAR has a certification program for real estate professionals called the Green Designation. This program educates agents about sustainable building practices and helps them better serve clients interested in eco-friendly properties. To be eligible, you’ll need to complete training courses and learn about green building trends and practices, energy efficiency, and environmental issues in real estate.

FAQs: Green Building Trends

What is the green building trend in construction?

What are the pros & cons of green building?

What are some green building innovations?

Why are green buildings the future?

Bringing It All Together

I hope this list has inspired you to embrace sustainability and advocate for greener buildings. While I’ve covered several prominent green building trends, many are still worth exploring. Any building trends I’m missing out on? Any trends you’re looking forward to this year? Have you ever listed or sold a sustainable property? Let me know in the comments!

The post Top 5 Green Building Trends for Real Estate appeared first on The Close.

1. Moving to the Southern States

People are moving to different states more than ever. More specifically, one of the hottest real estate industry trends is people moving to the South. The reasons are simple: strong job markets (plus the ability to work remotely), more space, housing is more affordable, and (typically) one finds a slower pace of life. Storage Cafe did some deep analysis to back up the trend we’re already seeing firsthand in real estate. 

• A record number (8.2 million people) moved across state lines in 2022 (the most recent year for data).
• Texas, Florida, North Carolina, and Georgia are in the top five states where people of all ages relocate. 
• Connecticut is the only state in the top 10 for relocation that’s not in the sun belt.
• Millennials comprise the largest percentage (34%, or 2.8 million people) of interstate moves.
• The average square footage of a home in the south increased in the past five years to an average of 2,608.
• Moving from California to South Carolina, residents could save an average of $430,000 on a home.

This is a real estate trend here to stay. We will continue to see people of all ages move to find a better quality of life. Southern states will continue to attract those looking for more space at affordable prices. As someone in one of those Southern states, I just ask that you stop honking your car horn.

It will be crucial to ramp up lead generation to capitalize on these shifting demographics. That’s where predictive analytics comes in—data that assesses who’s most likely to sell in the next year with stunning accuracy. We round up our favorite predictive analytic companies in our comprehensive guide, but my favorite is SmartZip. Using 24 data points, they can predict who’s ready to sell a home with 72% accuracy.

2. New Builds Will Alleviate Housing Shortages

There’s no question that the real estate market is (and has been) experiencing severe housing shortages. Just one year ago, supply sat at 2.9 months. The National Association of Realtors’ (NAR) data puts current inventory at 3.2 months, after falling 11.5% from the month before. The inventory data tells agents what they already know: there is none. 

But there’s good news on the horizon: the homebuilders of America are coming to the rescue. One of the more exciting real estate industry trends for 2024 is that new home construction is getting back on track. We can trace the roots of the problems we’re encountering today to the housing crisis of 2008. Then, COVID-19 decimated supply chains, and high interest rates made borrowing impractical and expensive. 

• According to Realtor.com, “Builders have been catching up, with construction remaining near pre-pandemic highs for single-family and hitting record levels for multi-family.”
• U.S. Census data also shows that privately owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,495,000. This is 1.9% above the revised November rate and is 6.1% above the December 2022 rate.

But we’re finally seeing some positive progress in the homebuilding data. All signs suggest that building multi- and single-family homes is ramping up, which will help alleviate the inventory crisis. This helpful graph shows construction of both multi- and single-family unit construction from 1970 to today, and it’s clear that we’re on the up and up. 

For agents, putting more people into more houses and widening the path to homeownership is a meaningful part of our community role. It’s crucial to communicate that there is potentially a much healthier real estate market in 2024, and you are the perfect agent to help. If builders are developing a new community, go out there and meet the developer. With time and thoughtful networking, you could be the go-to agent for that developer’s new builds. 

3. Artificial Intelligence (AI) & Augmented Reality (AR)

Of all the trending real estate topics, this is one of the most important to agents. While most of us are still new to these rapidly advancing technologies, it’s clear that AI and AR can positively impact our work. AI is being applied in so many different ways. It’s no wonder it’s one of the top trends in the real estate industry. We’re seeing incredible AI innovation, from crafting marketing scripts and listing copy to virtual staging and lead nurturing. This trend will continue to be one of our favorite hot topics in real estate for 2024. 

AR, or the layering of computer-generated images or audio onto our real world, must be understood and applied. LNG Studios imagines how professionals could use AR in real estate in the not-too-distant future.

One of my favorite AR applications is part of a more significant real estate investment trend. Imagine a situation where multiple stakeholders can look at a property or large development project through AR, analyze the pros and cons in real time, and collectively make decisions.

AI and AR are undoubtedly real estate trends here to stay, not just through 2024 but throughout our lifetimes. It’s time for agents to harness this real estate software technology, and we have the resources, tips, and guides to help you wade into these fast-moving, mighty waters. We promise the water is warm!

4. Utopian Societies 

We’re unsure what to think of this latest real estate trend. One can certainly understand the desire to create a community that conforms to one’s worldview, and Utopian societies are nothing new. But this multifaceted issue raises as many questions as it answers. As a thought project, it’s fascinating. As a practical exercise in real estate, it’s complicated. 

Flannery Associates, a group of Silicon Valley tech moguls, is attempting to create a Utopian 55,000-acre planned community, East Solano. (The founders include Reid Hoffman, co-founder of LinkedIn, and Laurene Powell Jobs, the founder of the Emerson Collective and Steve Jobs’ widow). ​​The dream is to create a community backed by clean energy, sustained by thousands of jobs, with solid public transportation, walkable neighborhoods, plenty of green space, places for kayaking and biking, schools, and shops. They’ve been quietly buying up large parcels of land in a quiet patch of California 60 miles from San Francisco, which has become hotly contested.

While that sounds all well and good, the way this has all played out has raised some serious ethical questions:

• Do the people who already live in Solano want this? 
• Was land purchased from people feeling pressure to sell? 
• And once news of the project got out, did landowners conspire to drive up prices? 

Of course, this isn’t the only attempt to create a Utopian society (there have been many in our nation’s history). Just recently, news broke of a community being built at the other end of the country—another end of the political and cultural spectrum. 

From a real estate perspective, it’s complex and fascinating. Yet the further fracturing our society into neighborhoods based on political ideology is frightening. While this real estate trend might continue, as agents, we should continue to work to bring communities together. 

5. High Home Prices

We’ve been on a wild trajectory for three years, and the housing market has been a hot topic. Are home prices going to fall or continue to rise? If they fall, will it be off a cliff, or will they drop ever so slightly? Just talking about housing prices is a real estate industry trend! 

There’s no question that prices are about as high as we’ve ever seen. DQYDJ has an excellent graph showing the meteoric rise of prices in the past few years:

Our deep data analysis leads us to an optimistic prediction for 2024. We don’t think the market will crash any time soon. But there is potential for a softening of pricing. As mentioned above, new construction is booming, alleviating our inventory stress. The lack of supply has helped to drive prices up and keep them there. But with more houses on the market, prices might dip. That’s good news for buyers. 

We don’t think there will be any massive downward swing. That’s good news for sellers. The current median housing price is $382,600. As the NAR points out, this is the sixth month in a row that there has been a year-over-year price increase. It’s still lower than the absolute median peak we hit in June 2022, which was $413,800. So, there has already been a slight correction, and we forecast median prices will continue to hover around this point throughout 2024. 

As high housing prices remain, agents must be exceptionally nimble. Lead generation should be a priority, so the sales funnel is always full. You’ll need to get creative with your lead gen strategies and use every tool in your arsenal. We think that 2024 will be a busy one for agents.

Bringing It All Together

Let’s face it: 2023 was a doozy. It was slow, challenging, and confusing. We had to deal with pundits announcing that ChatGPT was replacing our jobs and Sitzer I Burnett all in the same year! Our top picks of real estate industry trends promise a much better 2024. If it’s not better, at least it won’t be dull! Now, pop on those AR goggles and imagine moving to South Carolina—just don’t honk at us. 

Predicting any trends we missed?! Take issue with any we’ve identified? Let us know in the comments! 

The post 5 Emerging Real Estate Industry Trends for 2024 appeared first on The Close.

Real Estate Agent Salary Defined

While we do use the term salaries, agents are typically independent contractors. So, a real estate salary is really your gross commission income (GCI), or how much you take home through your real estate transaction commissions.  Remember, these are averages (and before taxes because, with effort and time, there is no limit to your take-home pay).

And the top six states might just surprise you! Check it out while we pack our bags and move to Kansas.

How Much Do Real Estate Agents Make in My State?

A note on the methodology behind The Close’s proprietary real estate agent salary information: Our salary database is supported by data from numerous sources, including Indeed, ZipRecruiter, Salary.com, Glassdoor, and the National Association of Realtors (NAR). 

Keep in mind that these are general averages that regularly change and depend on local markets, individual effort, broker splits, and agent experience. Despite their dynamism, these numbers offer a good idea of an average real estate agent’s salary, state by state.

Why Real Estate Salaries Vary

The average real estate salary may have surprised you—after all, Alabama and New York are neck and neck. When looking at the earnings of a real estate agent, there are plenty of reasons why they might be higher (Maine?) … or lower than you’d expect: 

• Disparate housing markets: Since real estate agents’ total compensation is based on commissions, states with higher average sale prices will see higher average incomes.  
• Competition: Agents in a small community with only a handful of real estate pros will have a better chance of winning clients than in a large city like Dallas, with roughly 750 agents. 
• Brokerage splits: Every brokerage handles splits differently, and in a world where brokerages are moving online, those splits can be even more beneficial to agents. These varying models skew the numbers even further, as agents at one brokerage could make a lot more from the same number of transactions than agents from a different brokerage. 
• Old-fashioned hard work: No surprise, commission-based salaries often reflect work ethic and hustle. It’s generally safe to say that agents who work their tails off will bring home more than agents who don’t. The same thing goes for experience. Agents with more years under their belts generally take home higher compensation. Remember, some part-time agents might not be at the top of the average but are still making their side hustle worth it.

How to Increase Your Real Estate Agent Salary

While you can’t control how many years you’ve been in the business or the amount of competition in your area, you can always level up and increase your salary, even if you’re a brand-new agent. You’re not locked into a salary determined by corporate role banding. You have unlimited potential. The Close has the tools and strategy guides you need to plan, start, and scale your business. 

• Select a real estate niche: It might be military families, seniors, first-time buyers, or luxury listings. Focus on that specific market and become the “go-to” for everything in your niche. 
• Focus on your skills: Focus on skills that will benefit you and your commission. Start with sharpening your negotiation and communication strategies.  
• Make strategic decisions: If you’re a new agent, start with our checklist, made specifically for you. It will help you make a strategic plan for success and a healthy salary. 
• Put that well-earned license to work: We have a whole list of jobs that require a real estate license and might just be the perfect side hustle for you.

Real Estate Agent Salary FAQs

What is the difference between a real estate agent & a broker?

What’s an average Realtor salary?

What makes up a real estate agent’s salary?

Bringing It All Together

We might not have nailed the Jell-O to the wall, but we offer a pretty good idea of each state’s average real estate agent salary. While these numbers are constantly twisting and changing in the winds of our stormy real estate market, at the end of the day, real estate agents have a big influence over their take-home pay. Put in that hard work, lean on us for strategy and advice, and you’ll outperform your state’s average salary in no time. How do these numbers reflect your experience? Have comments or questions? Leave us a comment below!

The post Real Estate Agent Salary: How Much Do Agents Really Make? appeared first on The Close.