Before Your Open House

Getting ready for an open house is more than just a task. It’s an opportunity to impact the future of the property significantly. As the big day approaches, you must tackle several essential tasks to ensure everything runs smoothly and impresses potential buyers. 

1. Consider Professional Staging

Remember, you only get one chance to make a first impression. If your new listing needs a little extra pizazz, consider the expertise of a professional staging company or software. They can make the most of your client’s existing decor or spice it up to help your listing pop. And if your listing is vacant, adding a few things to give context to the space is essential to attract the perfect buyers.

Check out Apply Design, the ultimate user-friendly app that empowers everyone to stage their listings effortlessly. Unlike other virtual staging apps, Apply Design still gives agents the freedom to work their magic. It has an intuitive interface and a vast selection of elegant furniture, art, lighting, rugs, and plant renderings!

2. Get Pro Photography

Now that you’ve got the place looking super-fly, it’s time for real estate photography. Word of warning—don’t skimp on the pictures! You’re about to post this listing for everyone to view and want these pictures to draw potential buyers to your upcoming open house. Be sure to hire a professional to get the job done. Or, if you DIY, at least check out our tips to ensure buyers stop scrolling through Zillow to add your open house list to their calendar.

Pro Tip: While your pro photographer is already in your new listing and everything looks perfect, get them to shoot some video for you, too. Some photographers can create Reel-style short vertical videos that you can use to post to social media to announce your upcoming open house. If your photographer doesn’t offer this service or you want to do some DIY to save some cash, make some quick videos yourself using your cell phone camera.

3. Boost Your Open House Post on Facebook

Given that most of your potential open house guests are conducting their house hunting online, boosting a Facebook post to announce your open house can be a game-changer. Just ensure your Facebook ad is designed to cut through the noise on Facebook. If you’re yet to set up a Facebook business page, you can find a comprehensive guide in our How to Set Up a Real Estate Agent Facebook Page to Get More Leads article.

4. Decide Which Food & Drinks You Want to Serve

Believe it or not, the refreshments you serve at your open house can greatly impact how you are perceived as an agent. Remember, most of your guests don’t know you. That means they will be judging you on everything, including food! By serving high-quality open house refreshments, you will enhance your professional image and leave a lasting impression on your guests.

If you’re ordering food, give the restaurant or caterer enough time to prepare it. Two days before the open house should usually be enough lead time, but call ahead to make sure. If you’re making refreshments alone, shopping and preparing a few days before couldn’t hurt. 

5. Send an Email Blast or Newsletter Reminder

You worked hard to build your email list; now is the time to use it. Include your open house announcement in your weekly newsletter, or better yet, send out a dedicated email blast if you think the house is a good deal or it offers something curious neighbors might want to see.

Looking for a simple way to send out your email blast? Pipedrive provides a customizable email builder with impressive templates and email analytics. Its intuitive interface lets you create visually appealing emails tailored to your branding and audience. Its robust analytics offer valuable insights into email performance, including open rates, click-through rates, and engagement metrics.

6. Post Your Open House on Zillow & Realtor.com 

Of course, not all your potential guests will be on your email list, but they will be scrolling Zillow and realtor.com if they’re looking to buy. Zillow’s dedicated setting for scheduling open houses is a convenient tool to help you plan your event. You need to plan it early, but not too early. Four days or so before your open house should do the trick. 

Why stop with your open house? Zillow Premier Agent is a powerful tool that lets you connect with buyers where they’re already looking, giving you the confidence that your property is being seen by the right people.

7. Text Buyers You’re Already Working With

If you’re working with buyers, send them a quick text to announce the open house. It might not be the perfect home for them, but it gives you another chance to connect and will show them you’re working hard for your seller client.

8. Text Your Seller a Checklist to Prepare the Home

It’s important to give your seller time to prepare for the open house. They might need to clean, hide valuables, or make arrangements for pets. To show your thoughtfulness and care, offer to send a house cleaner, even though they might refuse. It’s the thought that counts!

Two Days Before Your Open House

Are you ready to host an open house for your real estate listing? Two days before the big day, you must utilize social media to reach out to the neighbors and prepare essential materials. These steps not only help you maximize attendance but also create a buzz that can make your open house an exciting event. 

9. Post an Instagram Reel Preview Announcement 

Since your Facebook post has already been boosted, take a few minutes to create a quick Instagram Reel to announce the open house to your followers. It doesn’t have to be Hollywood-quality, but it should tell them the date, time, and address and maybe include a sneak peek of the home. 

Highlight the benefits of attending, such as getting a first-hand look at the property, meeting the real estate agent, and asking any questions you may have. Shoot and edit this in advance, posting it two days before the open house.

Example of Instagram Reel open house preview announcement (Source: Instagram)

10. Do Some Circle Prospecting

Agents may shy away from knocking on doors (even though you should do that, too). Still, circle prospecting is a unique way to establish a personal connection with the neighborhood around your listing. Circle prospecting is a real estate strategy to generate more leads by focusing on a smaller area around a specific property. This makes building relationships and showcasing experience easier, creating a more personal outreach than cold calls. 

This personal touch can significantly enhance your chances of gaining another client. So, step out, knock on those doors, personally invite the neighbors to the open house, and then follow up with the results using a Just Sold postcard after you close.

11. Review Your Open House Scripts & Icebreakers

If you’re a new agent or haven’t held an open house in a while, it’s crucial to freshen up your open house scripts and icebreakers. This preparation will ensure you don’t stumble on the big day, making you feel more reassured. You want to be loose and spontaneous, but having some snappy phrases in your arsenal can’t hurt! A great example of an icebreaker and script from Laura Marie, Team Leader, eXp Realty:

12. Add Your Open House Sign 

Consider installing the open house sign a little earlier than scheduled. This can notify neighbors and passersby that they are welcome to drop by and view the home at their convenience without making an appointment.

13. Print Out Your Sign-in Sheets or Set Up Your App

It also helps to print out your open house sign-in sheets a few days before the event. The last thing you want is to have a printer malfunction or discover you’re low on ink the morning of the event.

By the way, printing your open house sign-in sheets is so 2020. Savvy agents are stepping up their open house game with apps like Curb Hero, which feeds leads directly to thousands of customer relationship managers (CRMs) to help you easily stay on top of your potential new clients. And it’s free!

The Day of Your Open House

Get ready for your open house by taking care of these key tasks: think about what to bring to an open house as a realtor, put up directional signs, jazz up your for sale sign with balloons, and set up welcoming signs, eye-catching open house flyers, and important disclosures. Paying attention to these details will help set the right tone and make your open house a hit!

14. Install Open House Directional Signs

Given that many locations restrict the placement of directional signs to the day of your open house, it’s crucial to take the initiative and wake up early to install them. This proactive approach ensures you’re in control of the event’s logistics.

15. Put Balloons on Your For Sale Sign

While some realtors may dismiss balloons as tacky, they are a practical and effective tool to prevent your guests from getting lost and to attract attention. Embracing this strategy can give you confidence in the smooth running of your open house.

16. Put Out Welcome Signs, Flyers & Disclosures 

Once your directional signs and balloons are in place, it’s time to prepare the house for viewing. Set up a visible and informative entrance with a small table displaying your welcome sign, sign-in sheet, flyers, and disclosures. This clear guidance ensures your guests are well-informed from the moment they arrive.

Two Days After Your Open House 

As a realtor, your work doesn’t end when the last visitor leaves the open house. Completing post-open house tasks is a key part of your real estate agent open house checklist. It’s not just about wrapping up the event—it’s about maximizing your chances of getting property offers, generating new leads, and making a lasting impression on your sellers. The diligence and focus you put into these tasks can lead to approving reviews of your services and boost your professional reputation.

17. Text Buyers’ Agents for Feedback 

If you know any agents who brought or sent buyers to your open house, text them and ask for feedback. You can also include them in your follow-up emails, but texting will likely get you a faster—and hopefully more honest—response. 

18. Add Sign-ins to Your CRM 

This step should be fast and easy if you use an app that integrates with your customer relationship manager (CRM) like Pipedrive. If you’re working with paper sign-in sheets, enter them manually or send the list to your virtual assistant.

Pipedrive’s email segmentation allows agents to filter contacts based on various criteria, such as activities, products, and deals. This enables personalized emails to be sent to all clients, resonating with each recipient. Additionally, Pipedrive automates tasks such as reminders and email follow-ups, streamlining client management for real estate agents

19. Text Hot Sign-in Leads for Feedback 

After having great conversations with your guests, sending a friendly text is a more personal way to follow up than emailing. Remember to offer something of value, like inviting them for a coffee to discuss their real estate needs and desires further.

20. Email Cold Sign-in Leads

Finally, it would be best to take all the people who gave you their contact information and put them on a drip campaign. A drip campaign is a series of pre-written emails that are automatically sent to a specific group of people over a period of time. You can start with an email request for feedback and follow up with hot new listings. Make sure you ask for their business in your call to action. An example of an open house follow-up email is shown below:

copy to clipboard

Subject line: I Need Your Opinion…

Hi {Contact name},

Thanks for stopping by my open house this weekend at {open house address}.

Really quick, what did you think of the open house? I try to make my open houses fun and informative experiences for all my guests, but because we get so busy, I don’t always have enough time to hear from every guest.

I would love to get your feedback, warts and all. If something went wrong, that would help me get it right next time.

We can also chat about the market if you’d like. I have {#} years of experience in {your farm area}, so I can talk about this market for days. I’m an open book!

What’s a good day to chat?

Best regards,

{Your name and title}
{Your contact info}

21. Share All Feedback & Performance Data With the Seller

After receiving feedback about the home, put it all together and send it to your seller. Apps like Spacio will give you a form to send them with the data, making the process convenient and easy. However, you can always write it in an email or text message along with your analysis if that’s more comfortable for you. 

Bringing It All Together

Hey there, everyone! I’ve created a comprehensive open house checklist for realtors, but I’d love to make it even more impressive with your help! If you think anything should be added to the open house checklist for sellers, please feel free to share your ideas in the comments. Your input is incredibly valuable, and together, let’s make this real estate agent open house checklist absolutely fantastic!

The post The #1 Open House Checklist Top Agents Use to Get Amazing Results appeared first on The Close.

1. Tom Ferry’s Success Summit 2024

• Date: August 27-29, 2024
• Location: Dallas, Texas
• Virtual option: Yes
• Cost: $599 to $1,999
• Best for: Agents who need a sales coach
• Helpful resource: Register for Tom Ferry’s Success Summit

Tom Ferry has been selling and coaching salespeople for almost 30 years, and his real estate conferences are known for providing valuable content. His approach inspires professionals at all levels of the real estate journey, from new agents to seasoned professionals. According to Ferry, “What you say matters,” and at his Success Summit, attendees will spend three days listening, learning, and practicing to enhance their conversations with clients, leads, and people on the street and improve profitability.

• What We Love About Tom Ferry’s Success Summit 2024:

• Discusses modern referral marketing approaches
• Provides full 3-day access to the Ultimate Real Estate Seminar
• Delivers unmatched talks and panels
• Gives epic real estate networking receptions
• Provides The Summit 2024 Workbook (an industry-famous strategy guide!)

2. LGBTQ+ Real Estate Alliance 2024 Conference

• Date: September 25-27, 2024
• Location: Las Vegas
• Virtual option: No
• Cost: Prices are not yet listed
• Best for: LGBTQ+ community new and experienced in real estate
• Helpful resource: Registration link for the conference

Get ready for a fantastic experience at the LGBTQ+ Real Estate Alliance 2024 Conference! This great event includes insights from top industry experts, educational sessions, inspiring speakers, and a celebratory atmosphere that honors the achievements of professionals in the LGBTQ+ community. The conference aims to support the LGBTQ+ Real Estate Alliance’s mission of promoting equality, diversity, and inclusivity in the real estate industry. Take advantage of this opportunity to be part of inclusive networking at its best!

• What We Love About LGBTQ+ Real Estate Alliance 2024 Conference:

• Open to all
• Inclusive networking
• Provides access to industry-leading experts who will share invaluable knowledge and forward-thinking strategies.
• Engaging breakout sessions

3. NAR NXT Conference & Expo

• Date: November 8-10, 2024
• Location: Boston, Massachusetts
• Virtual option: Yes
• Cost: $550 to $650
• Best for: NAR members shopping for tech solutions
• Helpful resource: Register for NAR NXT

Get ready for the ultimate real estate experience at the National Association of Realtors (NAR) annual conference and expo! This premier event is about enhancing the Realtor experience, focusing on cutting-edge educational sessions and an impressive lineup of 350-plus industry-leading exhibitors. It’s the perfect opportunity to discover innovative solutions to real estate challenges.

• What We Love About NAR NXT Conference & Expo:

• Networking opportunities with industry professionals and experts
• Access to fresh, future-focused content and innovative ideas
• Rave-worthy presenters and elevated programming
• Relevant and value-added unique features and experiences

4. Inman Luxury Connect 2025

• Date: July 28-29, 2025
• Location: Hilton San Diego Bayfront, San Diego
• Virtual option: No
• Cost: $699 to $1,598
• Best for: Luxury real estate agents and brokers
• Helpful resource: Register for Inman Luxury Connect

If you are looking for exclusive luxury learning and networking, you’ll find it at this extravagant event. You’ll get the high-quality content and event experience you’d expect from Inman Connect founder Brad Inman, but focused on high-end agents. It’s ideal for networking with a select crowd and gaining insider knowledge of the luxury market. Plus, I’ve heard rumors that Inman is planning spectacular off-site events to knock your socks off!

• What We Love About Inman Luxury Connect 2025:

• Immersive discussions with elite agents and brokers
• Interactive workshops with industry experts
• Top-tier networking opportunities with luxury real estate agents
• Beautiful beaches and vibrant culture of San Diego
• Connecting with the crème de la crème of luxury real estate

5. Regional Real Estate Conferences

Because location matters so much in real estate, it makes sense to check out what’s happening in your backyard. Here are a few of the best real estate seminars for regional conferences that real estate professionals in the area should consider.

Florida Realtors Convention & Trade Expo

• Date: August 21-22, 2024
• Location: Rosen Shingle Creek, Orlando
• Virtual option: No
• Cost: $150 to $195
• Helpful resource: Register for the Florida Realtors Convention & Trade Expo

It makes sense that the state with the largest share of Realtors in the US offers such an incredible expanse of exhibitors and speakers yearly. This year, the event provides education sessions featuring nationally recognized speakers, trainers, and Florida’s industry experts. Also, REBarCamp Orlando is a day of peer-to-peer learning and sharing information, from getting listings and handling multiple offers to social media marketing and the latest tech gadgets.

• What We Love About Florida Realtors Convention + Expo:

• Peer-to-peer training sessions focusing on today’s challenges and opportunities.
• CE credit courses
• Free two-day Trade Expo with exhibitors whose job is to work wonders in your business.
• Special and ticketed events during the day and late into the night that celebrate our industry. 
• Awards luncheon—Who will be Realtor of the Year? Come celebrate the best in the business at this must-attend event.
• Legislative and political forum—Find out what’s happening in Tallahassee and beyond.

REimagine! Expo

• Date: September 24-26, 2024
• Location: Long Beach, California
• Virtual option: No
• Cost: Free for CAR members; nonmembers: $150 to $350
• Helpful resource: Register for REimagine!

Prepare for an unforgettable three-day event to help you thrive in your business! Whether you’re a seasoned industry pro or just starting, REimagine! Expo offers cutting-edge insights and practical knowledge to keep you ahead of the game. Join top industry experts as they share valuable strategies, delve into crucial topics, and tackle industry challenges head-on. You won’t want to miss the countless takeaways that will empower you to elevate and expand your business.

• What We Love About REimagine! Expo:

• 50-plus powerful sessions
• 250-plus must-see exhibit booths
• 200,000-plus realtors invited
• 30-plus big prizes over two days
• 5 preconference educational tracks for your business

Triple Play REALTOR Convention + Expo

• Date: December 9-12, 2024
• Location: Atlantic City, New Jersey
• Virtual option: TBD
• Cost: TBD
• Accreditation: Register for Triple Play

Triple Play is a premier event for Realtors in New York, New Jersey, and Pennsylvania. Each year, the event offers a diverse mix of exhibitors and speakers. While the speaker lineup for 2024 has not been announced yet, it is sure to be as dynamic and inspiring as always.

• What We Love About Triple Play REALTOR Convention + Expo:

• Features 49 speakers
• 117 sessions
• 6,600 participants
• 326 booths

6. Brokerage Events

Are you part of a large real estate brand? Most major labels have their own convention every year, packed with amazing speakers and guaranteed fun. Many of these events are more for hype and motivation, but they are excellent learning opportunities, and you feel energized and ready to tackle new business.

Better Homes & Gardens’ Better Retreat: Agent Experience

• Date: September 11-13, 2024
• Location: Huntington Beach, California
• Virtual option: No
• Cost: $300 to $725
• Helpful resource: Better Retreat: Agent Experience Registration

The Better Retreat’s Agent Experience is tailored for Better Homes & Gardens Real Estate (BHGRE) affiliated agents and teams. It focuses on introducing cutting-edge techniques for business growth, enhancing mindset, and expanding networking opportunities.

• What We Love About Better Retreat: Agent Experience:

• Keynote speaker: Kerri Walsh Jennings, the 5-time Olympian and American beach volleyball player, will be the headline speaker at The Better Retreat!
• Industry expert speaker: Logan Mohtashami, lead analyst for HousingWire and a renowned expert in the mortgage and housing ecosystem, will share industry insights and market updates for company planning.
• Discounted rate at the accommodation hotel (Hyatt Regency Huntington Beach Resort and Spa)

Coldwell Banker Global Luxury Summits 2024

Join colleagues and leaders from across the globe in either Miami Beach or Los Angeles. Hear from industry experts, access unparalleled luxury-focused learning and networking, and leave with actionable insights to propel you further into the luxury real estate industry. These exclusive Coldwell Banker Global Luxury^® Summits are solely for Luxury Property Specialists affiliated with the Coldwell Banker^® brand.

• What We Love About Coldwell Banker Global Luxury Summits:

• Global participation
• Industry expert insights
• Luxury-focused learning
• Networking opportunities
• Actionable insights for the luxury real estate industry

eXpcon 2024

• Date: October 27-30, 2024
• Location: Miami Beach, Florida
• Virtual option: No
• Cost: $949 to $1,899
• Helpful resource: Register for eXpcon

As one of the fastest-growing brokerages in the world—yes, the world—eXp puts on a good show. eXpcon has become a can’t-miss celebration of stunning successes and exciting futures. This year promises to be the most significant event to date.

• What We Love About eXpcon 2024:

• Exclusive insights to increase your income and have more free time.
• 2X the interactive breakout sessions tailored to your learning needs, with more agent leaders than ever.
• Networking opportunities with industry leaders and peers in a vibrant setting.
• Inspiring keynotes from top experts who will share their playbooks for success.
• Access to new content, certifications, workshops, and value-driven training designed to transform your business.

Tips for In-person Networking at Real Estate Events

After attending real estate conferences, you will feel inspired, educated, and more connected to colleagues and other industry professionals. Here are some tips on efficiently expanding your network at real estate events.

• Bring at least 100 business cards and be generous in handing them out. Your goal is to meet people and establish connections to enhance your business.
• Hang around after the presentations and chat with the speaker directly if you find a session helpful or interesting. Most speakers build time into their schedules to connect one-on-one with attendees.
• Remember to chat with every vendor selling products you’re considering investing in. Embrace the chance to speak face-to-face with reps and have your questions answered by a real person.
• Don’t skip the parties! Socialize, have fun, and bring your business cards.

Tips for Networking at Virtual Real Estate Conferences

Some real estate events offer both in-person and virtual attendance, providing a unique opportunity to network online. Virtual conferences are often cheaper and easier to attend, making them valuable for connecting with industry colleagues and speakers without traveling. Here are some tips to make the most of this format:

• Create a unique attendee profile: Put effort into creating a standout attendee profile to help others get to know you.
• Update your social media before the event: Introduce yourself confidently and provide an easy way for others to connect with you.
• Remember to research and prepare smart questions for Q&A sessions: If you can’t interject, use the chat function to communicate with the real estate groups or individuals.
• Socialize and enjoy: Remember to ask for contact info and follow up after the conference.

Bringing It All Together

Realtor conferences offer an opportunity to expand your network, stay informed about the latest market trends and emerging tech, and make new friends in the industry. But it’s up to you to make the most of these opportunities. Have you been to any of these real estate agent events? What are some of your best takeaways? Which best real estate conferences are on your travel list this year?

The post 10 Essential Real Estate Events & Conferences You Can’t Miss appeared first on The Close.

Realtor & Real Estate Agent Defined

When asking, “What is a realtor vs real estate agent, and what does it stand for?” it’s best to look at the definition. 

Realtor: According to NAR, the term REALTOR® has one, and only one, meaning: REALTOR® is a federally registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Real estate agent: The Cambridge dictionary defines a real estate agent as someone who arranges the selling, renting, or management of homes, land, and buildings for the owners. 

Differences Between a Realtor and a Real Estate Agent

The public widely adopted the term “Realtor” as a universal title for real estate agents, but that’s not how it was initially intended. Realtors are National Association of Realtors (NAR) members, and the title was once reserved for members only. That aside, real estate agents and Realtors mostly share the same job responsibilities, but there are distinctions between them. Here is a further breakdown of the difference between a Realtor and a real estate agent:

Important Note: The term ‘Realtor’ is a registered trademark and should always be spelled with a capital ‘R’ when referring to a real estate agent who is a NAR member. However, the general public often uses ‘realtor’ to refer to all real estate agents, not all of whom may be NAR members. In this case, the term should be spelled with a lowercase ‘r.’

Shared Duties & Responsibilities

Now that we’ve broken down the differences between a real estate agent and a realtor, let’s look at some similarities. When it comes down to it, the main goal of both is to represent our buyer, seller, and renter clients to the best of our abilities. But there are other shared duties and responsibilities that include the following:

• Abide by Fair Housing Laws
• Complete continuing education
• Find and evaluate properties
• Write contracts
• Provide market data
• Market their brand
• Generate leads
• Close sales
• Deliver necessary documents to all parties of a transaction
• Coordinate appraisals and home inspections
• Negotiate on behalf of clients
• Market their listings

Pros & Cons of Real Estate Agents vs Realtors

Of course, we can’t discuss the difference between a realtor and a real estate agent without breaking down the advantages and disadvantages of each. Before joining NAR to become a Realtor or choosing to remain a real estate agent independent of additional affiliations, take a look through the pros and cons of these two real estate roles. 

Real Estate Agent

A real estate agent is the most common among real estate professionals, as obtaining this license is the first step to working in the real estate industry. It’s a slightly more cost-effective option since agents don’t have to worry about additional membership dues to NAR.

Realtors

Any real estate agent can join NAR by paying their membership dues. But depending on where they work and which brokerage they’re affiliated with, some agents might even be required to join if their broker is a member. Being a Realtor under NAR means they’re held to higher ethical standards, so there’s a perception that they’re more trustworthy.

What additional benefits does NAR give to its members?

When further diving into the difference between realtor and real estate agent, let’s take a closer look at NAR. As the largest trade association in the U.S., NAR provides its members with support and resources, including professional development courses, local discounts, and opportunities to contribute to charity and volunteer events. Some additional benefits of being a Realtor include the following:

• Public advertising and campaigns supporting Realtors
• Support for federal, state, and local policy initiatives
• Resources like Realtor Magazine, designations, and certifications
• International network
• Discounts for equipment, insurance, services, and tools
• Further educational and networking opportunities at the state and national conventions
• Opportunities to contribute to local and national charities

Frequently Asked Questions (FAQs)

Is it better to say Realtor or real estate agent?

Is a real estate agent and broker the same thing?

Bringing It All Together

So whether you are a real estate agent, a NAR Realtor, or labeled a realtor by a client, it’s safe to say that there are more similarities than differences. As we’ve learned today, the term Realtor comes from being a part of the NAR network and gaining access to those advantages. However, guiding clients through the journey of buying, selling, and renting homes is paramount. No matter your title, working in real estate offers a chance to build rewarding relationships and enjoy the flexibility to create your success.

The post Realtor vs Real Estate Agent: What’s the Difference? appeared first on The Close.

Disclaimer: While this article provides guidance accompanied by research, always seek professional legal advice if you or your clients experience a violation of real estate fair housing laws.

What Is the Fair Housing Act?

The Fair Housing Act (FHA) is a United States federal law created as part of the Civil Rights Act of 1968. It was created to prohibit housing discrimination during the sale, rental, or financing process. The law applies to single-family homes, apartments, and condos, regardless of whether they are sold or rented. The law also applies to mortgage lending, insurance, and marketing advertisements for housing.

The Fair Housing Act of 1974 and 1988 was amended to include additional groups of protected classes. Below are the FHA-protected classes determined by the Fair Housing Act as it stands today:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability

The FHA is a federally implemented law that acts as a baseline for states and local governments to create laws surrounding fair housing. Depending on the state, fair housing real estate laws have expanded protected classes under the Federal Housing Administration also to include:

• Gender, gender expression, and gender identity
• Citizenship status
• Partnership status
• Lawful occupation
• Ancestry
• Source of income
• Age
• Domestic violence victim status
• Genetic information
• Marital status
• Medical condition
• Sexual orientation
• Military or veteran status
• Primary language
• Criminal background

What Is Prohibited According to the Fair Housing Definition?

Real estate agents must understand that The Fair Housing Act and state-specific laws aim to protect their business and their clients against discrimination. The federal Fair Housing Act in real estate prohibits discriminatory activities in all aspects of housing and for landlords, agents, and lenders.

However, there are certain exceptions to this law. The Fair Housing Act does exempt owner-occupied single-family buildings with four or fewer units sold and rented by the owner and housing operated by religious organizations or private clubs with limited occupancy to its members. Also, the FHA prohibits discrimination against familial status or age and senior housing with age requirements of 55 or 62 years of age, and communities participating in senior housing programs are exempt properties.

Fair Housing Act Enforcement

The Fair Housing Act empowers the U.S. Department of Justice (DOJ) to file a lawsuit against an individual or organization engaged in a “pattern or practice” of discrimination. The DOJ can also act if a group of people has been discriminated against in a way that raises a matter of “general public importance.” The U.S. attorney general can decide what constitutes a matter of “general public importance.”

The DOJ can sue under FHA for systematic mortgage discrimination or if a group’s denial of rights raises public concern. The DOJ can even file criminal charges when discrimination involves force or threats. Individuals who believe they have been discriminated against can file complaints with the U.S. Department of Housing and Urban Development (HUD) or initiate legal proceedings in federal or state courts. The DOJ may even provide legal representation to individuals based on HUD referrals.

When someone files a discrimination complaint, HUD is responsible for conducting a comprehensive and timely investigation. If conciliation is unsuccessful, HUD will determine whether federal laws have been violated. If there is reasonable cause to believe such laws have been violated, HUD will issue a Charge of Discrimination. Within 30 days, the person who filed the complaint or the respondent may choose to have the charge heard in a HUD administrative law court or federal court.

Federal Court Trial vs Administrative Hearing

Discrimination complainants can opt for a federal court trial or an administrative hearing by HUD. The former is represented by DOJ attorneys and heard by a judge or jury and may result in compensatory and punitive damages. The latter is represented by HUD attorneys and adjudicated by an administrative law judge, which may lead to civil penalties and compensatory (not punitive) damages. Both can issue written opinions and order injunctive relief, with the option to appeal to the U.S. Court of Appeals.

Special Considerations

Proving housing discrimination can be difficult, and collecting good evidence is helpful. Contact a local fair housing center or an attorney for guidance. Some states provide additional fair housing protections beyond federal laws. For example, New York State Human Rights Law protects against discrimination based on various factors, including creed, national origin, sexual orientation, gender identity or expression, military status, age, and lawful source of income.

Fair Housing Violation Statistics

Expanding your knowledge of Fair Housing real estate laws will give you a better understanding of how discrimination affects the real estate industry. Learn more about the statistics of Fair Housing Violations by referring to the data provided below. All these statistics are from the 2024 Fair Housing Trends Report released by the National Fair Housing Alliance.

• In 2023, 34,150 fair housing complaints were received by private non-profit fair housing organizations, HUD, FHAP agencies, and the DOJ.
• Private nonprofit fair housing organizations processed 75.52% of complaints, a 5.68% increase from the previous year.
• Discrimination based on disability accounted for the majority (52.61%) of complaints filed with FHOs, HUD, and FHAP agencies.
• There were 1,521 complaints of harassment reported last year, an increase of 66.23%.
• There were 824 complaints based on color reported last year; this represents an increase of 35.30%.
• California has the highest number of total complaints at 8,667. This number is 25% of the total fair housing complaints received by private non-profit fair housing organizations, HUD, FHAP agencies, and the DOJ.

5 Ways Real Estate Agents Can Comply & Protect Against Violations

When becoming a real estate agent, it’s crucial to thoroughly understand and comply with all national and state-specific fair housing laws. Violating the laws can lead to legal action and financial penalties that damage or end a real estate agent’s business. Therefore, real estate agents must understand how to protect themselves and their clients against FHA violations.

1. Know How to Answer Frequently Asked & Risky Fair Housing Questions

Real estate agents should be cautious when answering client questions about preferred neighborhood characteristics, location, and desired quality of living. Some of these questions relate to protected characteristics and could cause a violation of fair housing laws. Agents must focus on the properties themselves, have resources to direct clients to, and avoid making general assumptions when responding to their clients. 

Below are some frequently asked client questions considered fair housing real estate violation examples and proper responses that will help you avoid violating the FHA:

2. Review Your Advertising & Marketing Materials for Potential Fair Housing Violations

The language used by agents in marketing and advertising materials must comply with fair housing laws. Agents must avoid using words that can be discriminatory to a protected class in their property descriptions, websites, marketing materials, and real estate ads.

To eliminate real estate fair housing violations in advertising and marketing, agents should use inclusive language, avoid stereotypes and generalizations, and follow fair housing guidelines when creating materials. Agents should also be aware of the types of language and imagery perceived as discriminatory, such as words or phrases that imply preferences for a certain race, religion, sex, or familial status. Some examples of fair housing words to avoid and reasons for the fair housing violation:

Small changes to your marketing language can ensure you are not violating real estate fair housing laws. Ultimately, you want to market the property in the best possible light by highlighting its amenities, features, and special details that will appeal to the appropriate target audience.

3. Be Confident With Real Estate Testers

The Fair Housing Testing Program is a program to help fight against housing discrimination by sending testers to pose as buyers and renters. Testers are similar to mystery shoppers who pose as interested parties and document their interactions with real estate agents or property managers to assess whether fair housing laws are being followed.

These testers will gather evidence of discriminatory practices by real estate agents or property managers. They will call to inquire about listings or even attend open houses and showings and ask leading questions to see if you violate any fair housing laws. As an agent, being confident and professional when interacting with real estate testers is essential to ensure compliance with the Fair Housing Act. Here are some tips to be extra prepared if you encounter a tester:

• Be familiar with fair housing laws and the covered protected characteristics.
• Understand what is allowed regarding advertising, showing, renting, or selling properties.
• Regularly check HUD, DOJ, and your local state website for updates to real estate fair housing laws and regulations
• Attend training sessions at your local real estate board and brokerage
• Select continuing education hours that cover fair housing laws

4. Know Who to Contact When Discrimination Occurs

When fair housing discrimination occurs to you or your clients, real estate agents should know who to contact to report and address it. You can submit a claim with HUD online, via email, or physical mail. Document the incident in as much detail as possible, including the date, time, parties involved, actions, etc.

Here are some options for who to contact if a violation occurs or if you have fair housing questions:

5. Promote Equality

Real estate agents and brokers should treat all clients equally regardless of their protected status. They should avoid steering clients to particular neighborhoods or properties based on their protected status and refrain from using discriminatory language in their advertising or communications. One way to avoid unintentional discrimination in your real estate practice is to use standard screening criteria for all applicants, such as credit and criminal background checks, and give all your clients the same information packet.

FAQs

What are the penalties for violating the Fair Housing Act?

When did the Fair Housing Act pass?

Who does the Fair Housing Act protect?

When real estate professionals comply with fair housing laws, what are they helping to do?

Bringing It All Together

It’s critical to your career to understand the definition of fair housing, take its laws seriously, and be proactive in preventing discrimination and promoting equal housing opportunities. Stay informed of any changes or updates to fair housing laws, and regularly review your practices to ensure compliance. By following these steps, you can help protect yourself against fair housing violations and ensure you provide all clients with equal housing opportunities.

The post Fair Housing in Real Estate: A Guide for Agents & Brokers appeared first on The Close.

Bonus: Download The Close’s Buyer Presentation Template

What Is a Buyer Presentation?

You’ll need to seal the deal with that prospect once you’ve generated a buyer lead through your real estate prospecting efforts. A buyer presentation is a short, semiformal presentation that lays out the professional relationship between buyer’s agents and leads. It is typically given after the initial conversations with potential buyers. It’s a way to showcase your expertise and marketing strategies, convey clear and realistic expectations, explain the homebuying process, and ask questions.

What to Include in a Real Estate Buyer Presentation

In a real estate buyer presentation, it’s essential to include information that thoroughly showcases your expertise and the available property listings. Some key elements to include are as follows:

• Personal introduction: Provide a brief introduction about yourself, your experience in the real estate industry, and any notable achievements that highlight your expertise and neighborhood knowledge.
• Buyer’s needs: Summarize their wants, needs, and dreams for their new home to show that you’ve listened.
• Buying process overview: Break down the buying process into clear, easy-to-understand steps.
• Market overview: Provide a snapshot of the current market conditions, trends, and what they mean for the buyer.
• Financial overview: Discuss financing options, preapproval, and estimated closing costs to prepare them financially. 
• Property selections: Present a curated list of properties that match their criteria, highlighting unique selling points.
• Testimonials: Share stories and testimonials from your past clients to show your track record of success and build trust.
• Next steps: Clearly outline the actions needed to move forward.

Steps for Creating a Buyer Presentation

Crafting an effective buyer presentation involves specific steps. These include researching your audience, tailoring your approach, and following up appropriately. Below is an overview of the essential steps for creating a buyer presentation that grabs attention and delivers results.

Step 1: Pick an Interactive Template

Interactive templates fully immerse your clients in the experience during a real estate buyer presentation. These templates enhance the visual appeal of your presentations and make them more engaging and memorable for your clients. Use a template that allows your buyers to explore stunning property photos, view 3D floor plans, and take a virtual neighborhood tour. These features transform the presentation into an exciting journey rather than a static display.

Canva is a popular, easy-to-use, and versatile graphic design tool. It is the preferred design tool for real estate agents who need to quickly create professional marketing materials. Canva offers templates, editing tools, and sharing options for custom property flyers and branded social media posts.

Step 2: Understand & Uncover Your Buyer’s Needs

To understand the buyer’s needs and wants, you must learn about their life and what they like. Instead of asking about basic things like where they want to live and how much money they have, ask them questions via an online form about their current living situation, reasons for moving, previous experiences with buying a home, and what they’re looking for in an agent.  

Then, when you meet them, give them a map and ask them to show you where they want to live and where they don’t want to live. They can also write the most important things they want in a home and the things they don’t want. This method personalizes the discussion, making potential buyers active participants in the search process.

Step 3: Clearly Explain the Homebuying Process

It is essential to guide homebuyers through the intricate homebuying process clearly and concisely. By doing so, you will minimize their anxiety and establish trust. 

Here are important steps on the homebuying process timeline:

• Financing: Evaluate financial readiness and credit score.
• Budget: Determine their budget and decide how much your clients can afford to spend on a house.
• Financing options: Research and explore different financing options, such as conventional, FHA, VA, and USDA loans.
• Mortgage: Get preapproval for a mortgage.
• Home search: Selecting properties that meet the buyers’ criteria and arranging viewings.
• Make an offer: Discuss factors like the current market, the home’s value, and how to negotiate effectively.
• Inspections and appraisals: Check that the home is in good condition and worth the investment.
• Closing: Walk them through what to expect at closing, from signing paperwork to receiving the keys.

Step 4: Include a Market Analysis

To help buyers make smart decisions, provide comprehensive market information, including home price trends, property variety in different neighborhoods, average time on the market, and insight into negotiation and purchasing under current market conditions. Ensure you have all the information you need to feel confident about your investment in this market.

Step 5: Showcase Properties

It’s essential to do more than recite the home features when presenting properties. Instead, bring each home to life by creating stories that link the property to the buyer’s lifestyle. To make it engaging and visually appealing, use the following:

• Consider engaging scenarios to make the property features more relatable. For example, you could say, “Imagine hosting Thanksgiving and birthday dinner in this spacious living and dining room,” or “Envision relaxing on the weekend in this bright and tranquil garden patio.” These little narratives can help potential buyers visualize themselves living in the space.
• To appeal to the senses, add vivid sensory descriptions, such as the fireplace’s warmth and the nearby park’s peaceful sounds.
• Use high-resolution images, interactive virtual tours, and authentic testimonials from previous clients to enhance credibility and evoke emotion.

Step 6: Present Different Financing Options

Remember to provide transparent information about the financial aspects of buying a property. This includes explaining the down payments, closing costs, and ongoing expenses like property taxes, insurance, and maintenance. Remember that you are not a mortgage professional, so generalize financing and provide contact information for mortgage professionals.

Step 7: Present Sample Buyer’s Representation Agreement

As you wrap up your presentation, touch on the buyer’s representation agreement. In real estate, things can be full of surprises, and without this agreement, there’s a chance of investing a lot of time in clients only to see them switch to another agent at the eleventh hour. It’s crucial to showcase a sample agreement and guide them through key sections, like exclusive representation, your role as their agent, and how you will receive compensation.

Step 8: Show a Clear Next Step

It’s important to end your real estate buyers presentation by clearly outlining the next steps. Instead of just saying “thank you,” let them know what to expect next. This could include setting up property tours or diving into offer strategies. Provide a clear timeline to maintain momentum. Answer any questions and demonstrate that you are prepared to assist them throughout their homebuying journey. This approach keeps things organized and shows your dedication to helping them find the perfect place.

Tips for Delivering a Buyer Presentation 

Now that you know how to create a buyer presentation and have a template ready to go, let’s review the tips for delivering your presentation in a way that builds a foundation for a solid buyer-agent relationship.

• Role-play your presentation with another agent. The more you practice, the easier the presentation will be to deliver, even if you have some nerves.
• Deliver your presentation in person (if possible). Avoid giving your presentation virtually because building rapport is much easier in person. Plus, that firm handshake, warm smile, and confident eye contact will go a long way in convincing your leads that you’re the agent for them.
• Use a large monitor or tablet to give your presentation. If you don’t have a conference room with a large monitor, consider pooling together with other agents in your office to buy a big tablet specifically for presentations—better yet, convince your broker to buy you one!
• Break the ice with small talk (but don’t overdo it!). Starting your presentation with a minute or two of small talk will not only break the ice, but it also has the potential to build rapport more quickly than your entire presentation.
• Tell them how long the presentation will take. We think you should keep your part to less than 15 minutes and leave plenty of room for questions.
• Ask specific and open-ended questions. So you can gather information for your profile, build trust, and get them excited about their search. You can ask questions to create an actionable buyer profile during your presentation. Choose three to four questions that best fit your situation and help you build the most knowledge:
  • Have you ever worked with a buyer’s agent?
  • Why do you want to find a new home, and why now?
  • What kind of monthly payment would you be comfortable with?
  • How experienced are you with the mortgage process?
  • If you had to choose one, would you choose a great location, price, or home?
  • Is there a specific school district you want to be in?
  • How important is a fast commute to work?
  • What is your time frame for finding a home?
  • When is the best time and day of the week to reach you, and how do you prefer to communicate?
  • Can you paint me a picture of your dream home?
• Don’t ask them to sign an exclusive buyer agreement…yet. Walk them through the agency disclosure agreement and tell them you don’t want them to sign an exclusive agreement until they know you better. Promise to earn their loyalty. When you are ready to ask for the signature, I like a simple, straightforward, “So what do you think? Have I earned your business?”
• Send them a PDF of the presentation. If you really want to wow them, come with buyer agent checklists or write an e-book on the buying process and local market and send it along with your presentation and packet.
• Remember that knowledge = confidence. Walk into your presentation confidently because you have the information and the skills.

Bringing It All Together

Delivering a top-notch, successful buyer’s presentation takes confidence (and a little thoughtfulness), but if you do it well, you can convert those warm buyer leads in as little as 15 minutes. Do you have any real estate buyer presentation templates, buyer presentation scripts, or advice for new agents giving their first buyer presentations? Or maybe a story about a buyer presentation that went sideways? Let us know in the comment section.

The post The Buyer Presentation: A Step-by-Step Guide to Convert Clients appeared first on The Close.

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

copy to clipboard

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

copy to clipboard

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

copy to clipboard

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

copy to clipboard

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.

Home Buying Statistics

Why These Stats Matter

The changing work patterns in America have influenced how people buy homes. With the freedom to live and work from anywhere, homebuyers are exploring more options and prioritizing their preferences over proximity to work. However, higher home prices and mortgage rates have slowed the home-buying process for many, prompting a more cautious approach to homeownership. Nonetheless, move-up buyers and investors continue to purchase homes steadily, intensifying the pressure on the limited housing supply.

1. In February 2024, existing home sales increased by 9.5% to a seasonally adjusted annual rate of 4.4 million. This event marks the most significant monthly increase since February 2023.^[1]

2. The Pending Home Sales Index (PHSI) increased to 75.6 in February 2024 by 1.6% compared with that in the previous month.^[1]

3. In February 2024, new listings experienced a year-over-year (YoY) increase of 14.8%, compared with 8.2% in the prior month. This milestone marks the most significant annual gain in listings since May 2021.^[1]

4. In January 2024, the national housing affordability index was 105.5. This statistic is an improvement from the previous month but still lower than the index of 109.2 from a year ago. This fact means a family with a median income has more than enough to afford a median-priced home.^[1]

5. In February 2024, private housing construction rose to an annual rate of 1.52 million, up 10.7% from January 2024 and 5.9% from February 2023, indicating potential continued growth in the housing market.^[1]

6. The share of home buyers by generation is as follows^[2]:

• Gen Z: 3%
• Younger Gen Y/millennials: 17%
• Older Gen Y/millennials: 21%
• Gen Xers: 24%
• Younger boomers: 19%
• Older boomers: 12%
• Silent generation: 4%

7. First-time home buyers made up 32%, up from last year’s 26%.^[3]

8. 59% of recent home buyers were married couples, 19% were single females, 10% were single males, and 9% were unmarried couples.^[3]

9. 14% of home buyers purchased a multigenerational home, the most common reasons being to care for aging parents, for cost savings, or because children or relatives over the age 18 were moving back home.^[3]

10. At 26%, the primary reason for purchasing a home was the desire to own one. For first-time buyers, this number jumps to 60%.^[3]

11. 13% of home buyers purchased a new home, and 87% of buyers purchased a previously owned home.^[3]

12. Detached single-family homes remained the most common home type for recent buyers at 79%, followed by townhouses or row houses at 8%.^[3]

13. For home buyers, 60% cited the quality of the neighborhood as the most critical factor determining the location. Convenience to friends and family and overall affordability of homes were recorded at 45% and 39%, respectively.^[3]

14. 41% of recent buyers began taking the home-buying process seriously by looking at properties for sale online, while 20% first contacted a real estate agent.^[3]

15. 90% of recent buyers found their real estate agent either a “very” or “somewhat” helpful information source.^[3]

16. All home buyers used the Internet to search for a home. The most valuable contents on websites were photos, detailed information about properties for sale, floor plans, and the real estate agent’s contact information.^[3]

17. 89% of buyers recently purchased their home through a real estate agent or broker, and 6% purchased directly through the previous owner.^[3]

18. 43% of buyers used an agent referred to them by a friend, neighbor, or relative; 13% used an agent that they had worked with in the past to buy or sell a home; 7% found their agent when inquiring about a specific property found online; and 7% saw their agent through a website without a specific reference.^[3]

19. For first-time home buyers, 38% said saving for a down payment was the most challenging step in the process.^[3]

20. For 54% of buyers, the source of the down payment came from their savings.^[3]

Home Selling Statistics

Why These Stats Matter

Selling real estate agent stats for homes is essential for buyers and sellers to understand market trends and make informed decisions. For sellers, these real estate agent facts help in pricing their homes effectively and gauging buyer interest. In contrast, buyers can use them to assess market competitiveness and pricing trends and negotiate better deals.

21. The median sales price of single-family homes rose to $388,700 in February 2024, exceeding the previous year’s median of $368,100.^[1]

22. In February 2024, the number of unsold listings increased by 5.9% compared with last month’s and by 10.3% compared with last year’s.^[1]

23. The share of home sellers by generation is the following^[2]:

• Gen Z: 2%
• Younger Gen Y/millennials: 6%
• Older Gen Y/millennials: 17%
• Gen Xers: 23%
• Younger boomers: 26%
• Older boomers: 19%
• Silent generation: 6%

24. For all sellers, the most commonly cited reason for selling their home was the desire to move closer to friends and family (23%), because the home is too small (13%), or a change in the family situation such as a marriage, divorce, or new child (10%).^[3]

25. 89% of home sellers worked with a real estate agent to sell their home; 7% sold via FSBO; and less than 1% sold via iBuyer.^[3]

26. For recently sold homes, the final sales price was a median of 100% of the final listing price, maintaining last year’s highest recorded since 2002.^[3]

27. In May 2024, homes spent 44 days on the market, one day more than last year but eight days shorter than before the COVID-19 pandemic.^[4]

28. 65% of sellers found their agent through a referral from a friend, neighbor, or relative or used an agent they had worked with to buy or sell a home.^[3]

29. In 2023, 7% of recent home sales were FSBO sales, an all-time low that matches the share seen in the 2021 report.^[3]

30. Within rural areas, 14% sold via FSBO compared with 3% of sellers in urban areas.^[3]

31. FSBOs typically sell for less than the selling price of other homes; last year, FSBO homes sold for a median of $310,000, significantly lower than the median of agent-assisted homes, which was $405,000.^[3]

32. In May 2024, the median price of homes for sale remained relatively stable compared with last year, growing by 0.3% to $442,500. However, the median price per square foot rose by 3.8%, indicating that the inventory of smaller and more affordable homes has grown in share.^[4]

33. Home sellers were more active this May 2024, with 6.2% more homes newly listed on the market than last year.^[4]

The Close Takeaway: Given the current market conditions, the realtor charts and stats show that it would be beneficial to consider starting a marketing campaign focused on growth. Creating a solid and innovative marketing strategy will help you effectively highlight your strengths in different real estate projects, positioning your business for long-term growth and success.

Today’s Market Shifts

Why These Stats Matter

Given the current economic fluctuations, the real estate market faces significant, multifaceted changes. Real estate agents provide valuable insights and guidance to help clients make astute decisions aligned with their needs. They offer expertise in navigating the complexities of the real estate market and provide support throughout the transaction process.

34. The real estate market worldwide is expected to reach a staggering value of $637.80 trillion by 2024.^[5]

35. Among the various segments, residential real estate dominates the market, with a projected market volume of $518.90 trillion in 2024.^[5]

36. The 15-year fixed mortgage rate is 6.13% as of June 19, 2024.^[6]

37. As of May 2024, the national average 30-year fixed mortgage rate is at 7.1%, increased by 0.6 points YoY. ^[7]

38. Top five metros in the US with the fastest growing sales price^[7]:

• 22.2%—Irvine, CA
• 21.6%—Long Beach, CA
• 20.7%—Dallas, TX
• 20.0%—West Palm Beach, FL
• 19.8%—Paradise, NV

39. Top five most competitive cities in the US^[7]:

• San Jose, CA
• Cary, NC
• Sacramento, CA
• Littleton, CO
• Richmond, VA

40. Top five areas where people are moving to (net inflow from March 2024 to May 2024)^[7]:

• 6,300—Sacramento, CA
• 5,600—Phoenix, AZ
• 5,400—Sarasota, FL
• 5,100—Cape Coral, FL
• 5,000—Las Vegas, NV

41. Top five areas where people are moving from (net inflow from March 2024 to May 2024)^[7]:

• 35,600—Los Angeles, CA
• 32,200—New York, NY
• 25,800—San Francisco, CA
• 20,100—Seattle, WA
• 15,100—Washington, D.C.

42. Most expensive states to live in 2024^[8]:

• Hawaii
• District of Columbia
• Massachusetts
• California
• New York

43. Least expensive states to live in 2024^[8]:

• Mississippi
• Oklahoma
• Kansas
• Missouri
• Alabama

44. Most expensive cities to own a home^[9]:

• San Jose, CA
• San Diego, CA
• New York City, NY
• Washington, D.C.
• San Francisco, CA

45. The most affordable cities to own a home^[10]:

• Detroit, Michigan
• Cleveland, Ohio
• Toledo, Ohio
• Memphis, Tennessee
• Baltimore, Maryland

The Close Takeaway: The real estate market is changing, shifting buyer preferences, mortgage rates, and economic conditions. To succeed in this dynamic environment, staying informed and adaptable is important. Agents should improve their negotiating skills and focus on negotiating contract terms to maximize their closings. Additionally, it’s essential to define your ideal client and create a strategy to target them with your branding campaign to stay ahead of the competition.

Rental Statistics

Why These Stats Matter

Both landlords and tenants need to have rental real estate agent statistics. These numbers show rental real estate trends. Landlords can use them to set competitive rental prices and understand vacancy rates. They can also make better decisions about property investments. Rental statistics offer insights into average rental prices for tenants in specific areas. This data helps them make informed decisions when looking for a new place to live.

46. Top five states with the highest average monthly rental costs^[11]:

• $2,423—Hawaii
• $1,956—California
• $1,828—New Jersey
• $1,806—Massachusetts
• $1,745—New York

47. Top five states with the lowest average monthly rental costs^[11]:

• $869—North Dakota
• $972—Iowa
• $973—South Dakota
• $988—Kentucky
• $1,008—Arkansas

48. 72% of renters said the affordability of the property is the most important factor in staying in a rental.^[12]

49. As of March 2024, the observed rent index for multi-family is $1,855 and $2,183 for single-family rents.^[13]

50. Pittsburgh stood out as the sole area to see a decrease in typical rents (-0.2%) from February to March. In contrast, Washington, D.C., the New York City metro area, and San Jose each recorded significant 1% increases in typical rents on a month-to-month basis.^[13]

51. Rent concessions increased YoY in 41 of the 50 largest metro areas. The annual increase in the share of rental listings with concessions was highest in Charlotte (18.3ppts), Raleigh (18.3ppts), Austin (15.5ppts), Jacksonville (14.5ppts), and Salt Lake City (14.3ppts).^[13]

52. The nationwide rental vacancy rate was 6.6% as of Q4 2023.^[13]

53. 74% of renters used mobile devices as their primary tool in researching rental properties.^[12]

54. 53% of renters live in apartment buildings, and 29% of renters live in a single-family detached house.^[12]

55. The South has the highest percentage of renters at 36%, followed by the West (28%), the Northeast (19%), and the Midwest (18%).^[12]

56. Top five cities with the highest asking rent per square foot^[14]:

1. $4/sq. ft.—San Francisco, CA
2. $3.92/sq. ft.—New York, NY
3. $3.34/sq. ft.—San Jose, CA
4. $3.12/sq. ft.—Boston, MA
5. $2.86/sq. ft.—San Diego, CA

57. Top five cities with the lowest asking rent per square foot^[14]:

1. $1.36/sq. ft.—Cincinnati, OH
2. $1.35/sq. ft.—Columbus, OH
3. $1.34/sq. ft.—Kansas City, MO
4. $1.34/sq. ft.—Detroit, MI
5. $1.34/sq. ft.—St. Louis, MO

58. The median US asking rent rose 0.8% YoY to $1,987 in March 2024, marking the third consecutive increase after three months of decreases.^[15]

The Close Takeaway: The rental real estate statistics show a strong demand for rental properties, which presents a promising opportunity for real estate investors. Additionally, the data highlights the importance of strategic property management and location selection to maximize returns in the rental real estate market.

Commercial Real Estate Statistics

Why These Stats Matter

Commercial real estate broker statistics are essential for understanding market trends, making informed investment decisions, and evaluating the economy’s overall health. They offer valuable insights into vacancy rates, rental prices, sales volume, and other key indicators. By analyzing and interpreting these statistics, stakeholders can better understand current conditions and anticipate future trends, enabling them to make more informed choices.

59. As of March 2024, small banks’ commercial real estate debt is at $2.0 trillion and $876 billion for large banks.^[16]

60. Net absorption of the offices sector for the last 12 months is -57.9 million sq. ft.^[16]

61. The office sector rent growth for the last 12 months is 0.7%, and the cap rate is 8.4%.^[16]

62. Net absorption of the multifamily sector for the last 12 months is 356,984 units.^[16]

63. The multifamily sector rent growth for the last 12 months is 0.7%, and the cap rate is 5.9%.^[16]

64. Net absorption of the retail spaces for the last 12 months is 45.8 million sq. ft.^[16]

65. The retail spaces rent growth for the last 12 months is 3.1%, and the cap rate is 6.8%.^[16]

66. Net absorption of the industrial sector for the last 12 months is 124.1 million sq. ft.^[16]

67. The industrial sector rent growth for the last 12 months is 5.3%, and the cap rate is 7.3%.^[16]

68. The hotel or hospitality industry recorded a 62.5% occupancy rate in the last 12 months.^[16]

69. In March 2024, the average daily rate (ADR) per room rose to $157/room, up 19% from March of 2020.^[16]

70. The revenue per available room (RevPAR) also increased to $98/room, up 13% compared with that in the same period in 2020.^[16]

The Close Takeaway: After analyzing commercial realtor statistics, it’s clear that the market is experiencing strong growth in certain sectors, such as multifamily and hotel, while encountering challenges in others, like office spaces. Conducting thorough research is always important, but having more details about commercial real estate prices, vacancy rates, rent growth, construction, and top-performing sectors can help narrow down the properties to consider.

Real Estate Lead Generation Statistics

Why These Stats Matter

All real estate agents and brokers should include lead generation strategies in their business plans. Educating yourself about general lead generation realtor statistics will help you formulate your strategy and ensure that you make decisions based on success rates and target the correct audience. If you need help with your social media, consider working with a real estate marketing company like Coffee & Contracts to automate and streamline your social media content and management.

71. 22% of realtors spent an average of $50–$250 monthly on lead generation.^[17]

72. 52% of realtors use social media to generate leads, and 68% use it to promote their listings.^[17]

73. 92% of realtors use Facebook in their real estate business, 68% use Instagram, 52% use LinkedIn, and 26% use YouTube.^[17]

74. The top three tech tools that have given realtors the highest number of quality leads in the last 12 months were social media (54%), CRM (36%), and their local MLS (24%).^[17]

75. The three most common sources of foreign real estate leads were personal contacts (24%), referrals by previous clients (24%), and former clients (10%).^[18]

76. 75% of home buyers and 73% of sellers would definitely use their real estate agents again or recommend them to others.^[2]

77. 81% of home sellers only contacted one agent before selecting one to assist with the home selling process.^[2]

78. 36.1% of marketers noted that the lack of lead generation strategy is their biggest barrier to lead generation.^[19]

79. In a survey of US marketing decision-makers, 35.4% stated that the most challenging factor in generating quality leads is the buyer’s misunderstanding of the value of the offering.^[20]

80. Companies primarily prefer using emails to nurture leads, with almost half of the respondents selecting it as their top method, followed by scheduled calls/demos and social media.^[19]

The Close Takeaway: Getting people interested in buying houses is essential for growing your real estate business. You can do this by using social media, searching online, asking for referrals, and networking with people. Understanding your audience is vital; real estate lead generation statistics can help. This understanding makes your audience feel valued and integral to your business, leading to quicker success.

Sold.com is a free real estate referral service that connects local real estate agents with homeowners looking to sell their properties. By providing personalized recommendations and data-driven insights, Sold.com aims to help agents save time, reduce stress, and improve sales outcomes for their clients. The platform takes a tailored approach to each homeowner’s unique situation, ensuring that agents are connected with motivated sellers who are ready to make a move

How Many Realtors Are There in Each State in 2024?

Understanding the number of real estate agents in each state in 2024 is crucial for real estate professionals. This data offers valuable insights into the competitive landscape in local markets and provides a deeper understanding of industry dynamics. By knowing how real estate agents are distributed across different states, agents can fine-tune their strategies, pinpoint areas with growth potential, and thrive in an ever-changing market.

Bringing It All Together

Understanding the ever-changing real estate industry is important, especially when the market is weak. You can use these real estate agent statistics in many ways, like knowing which city is best for realtors, deciding on real estate investing, starting a conversation, writing blog posts, or creating social media content. By using these realtor statistics, you can show that you know what’s happening in the market in your area and stand out. 

If there are real estate numbers we didn’t include that you want to know, just leave a comment. These real estate facts are a great way to start talking about real estate. Let’s keep talking!

Sources

1. Residential Real Estate Market Snapshot Report

2. 2024 Home Buyers and Sellers Generational Trends Report

3. 2023 Profile of Home Buyers and Sellers

4. May 2024 Monthly Housing Market Trends Report

5. Real Estate—Worldwide | Statista Market Forecast

6. Mortgage Rates—Freddie Mac

7. United States Housing Market & Prices | Redfin

8. Most Expensive States to Live in 2024

9. 10 Most Expensive Cities to Own a Home in 2024

10. 10 Most Affordable Cities To Buy A Home In 2024—Forbes Advisor

11. Examining the Cost of Living by State in 2024

12. Renters: Results from the Zillow Consumer Housing Trends Report 2023

13. The Rental Market’s National Stability Hides Local Eccentricities (March 2024 Rental Market Report)—Zillow Research

14. The Most and Least Expensive Cities for Renters in 2023 | Apartments.com

15. Rental Market Tracker: Asking Rents Rose for the Third-Straight Month in March, Driven by the Midwest

16. Commercial Real Estate Market Insights Report

17. 2023—Technology Survey

18. Realtors: lead sources for foreign buyers US 2023 | Statista

19. 27 Lead Generation Statistics and Trends for 2023

20. Difficulties with B2B qualified lead generation US 2021 | Statista

The post 80 Real Estate Agent Statistics, Insights & Trends for 2024 appeared first on The Close.

General Real Estate Lead Generation Statistics

All real estate agents and brokers should include lead generation strategies in their business plans. Educating yourself on general real estate statistics will help you formulate your strategy and guarantee that you’re making decisions based on success rates and targeting the correct audience. 

1. 46% of agents spend $0 to $250 monthly on lead generation

Within the last twelve months, 25% of surveyed Realtors had spent less than $50 per month on real estate lead generation. In addition, 21% of agents reported spending between $50 and $250 per month. This data shows that most real estate agents spend between $0 and $250 per month on lead generation efforts.

Key Takeaways:

On average, real estate agents spend a modest amount of money on lead generation. This suggests that the average real estate lead conversion rate from free or lost-cost strategies is significant enough to grow agents’ businesses.

• There is a wide variety of lead generation tools and strategies available, and it’s possible to generate leads for under $50 per month through free methods like referrals and social media marketing.
• Paid lead gen tools are also valuable and can boost your return on investment (ROI) by increasing the lead quality, automating marketing, and sometimes guaranteeing a certain amount of monthly leads.

Choosing the right real estate lead source is an incredibly important decision. Make sure you consider the best places to buy real estate leads, like Market Leader. Market Leader is one of the few sources that provides exclusive leads as well as a variety of lead generation solutions, such as customizable websites, CRM (customer relationship management) software, automation, and a mobile app. With the agent platform, you can generate exclusive leads and have a marketing funnel up and running easily and quickly.

2. 43% of home buyers used an agent recommended to them

According to lead generation statistics, of all the ways that potential buyers can find a real estate agent, 43% used an agent who was personally recommended to them by a friend, neighbor, or family member. When buyers are ready to start a real estate transaction, they prefer to get a recommendation from someone they trust.

Key Takeaways:

• Real estate relies heavily on relationships, reputation, and networking in an increasingly digital market.
• Establish a clear plan to consistently connect with your previous clients and ask for referrals.
• Consider sending a gift to your clients to encourage more referrals.

3. 65% of sellers found their agent through referrals or previous transactions

Generating real estate seller leads differs from buyer leads because sellers have already participated in at least one real estate transaction. Therefore, many home sellers have worked with an agent in the past, making them more likely to become repeat clients or sources of referrals.

This is likely why 65% of sellers find their agent from a previous transaction or a referral, while buyers often don’t have previous experience with an agent. In addition, 46% of home sellers worked with the same agent who helped them purchase their house.

Key Takeaways: 

• Real estate lead conversion rates for past clients are significantly higher than the industry average.
• Each client is a valuable source of future lead generation and sales.
• Buyer clients may provide real estate referrals, and they are more likely to work with you on multiple transactions.
• The most powerful method of generating home seller leads is through personal referrals and sphere of influence (SOI) marketing.

4. 71% of buyers & 81% of sellers only contacted one real estate agent

It’s recommended for home buyers and homeowners to meet with multiple real estate agents before starting their transaction, but real estate lead generation statistics show that this is not typically what happens. In reality, 71% of buyers interviewed only one agent, and 81% of sellers worked with the first agent they contacted.

With such a large majority of buyers and sellers choosing the first agent they meet, it shows that your first impression—regardless of whether it’s online or in-person—is key to closing a deal. 

Key Takeaways: 

• Since most homebuyers and sellers don’t interview more than one agent, you have the highest chance of converting a potential client if you meet them before other agents. 
• Evaluate the kind of impression your online and in-person presence makes on potential leads, and adjust your marketing strategies, so you can be the first (and last) agent buyers and sellers reach out to.

5. 87% of homebuyers & 87% of sellers would recommend their real estate agent

Even though buying a house is a complicated process that often presents many unknown challenges, 87% of homebuyers said that they would happily work with their real estate agent again or recommend them to others. In addition, a similar statistic shows that 87% of home sellers would also be happy to recommend their agents to others.

Key Takeaways: 

• The majority of Realtors are serving their clients well but are missing out on valuable opportunities for repeat clients.
• Agents don’t realize how easily their previous clients can lead to new business.
• It’s difficult to manage follow-ups manually, so investing in a real estate CRM is essential.

The best real estate CRMs keep your contacts organized with pipelines and notes and allow you to schedule and automate follow-up messages at specific times. LionDesk, one of our top CRM picks, connects your contacts to a transaction management tool to streamline communication with clients before, during, and after their transactions. Try LionDesk for free for 14 days.

Use of Technology in Lead Generation Strategies

With so many possible lead-generation strategies, it can be tempting for agents to focus only on the most accessible or comfortable strategy. However, knowing the industry’s most effective strategies can help agents seamlessly progress from lead generation to conversion.

6. 54% of Realtors say social media is the top tech tool for generating leads

Lead generation statistics say that in a list of the top real estate marketing and lead generation tools, 54% of Realtors reported that social media was the best source of high-quality leads. Other lead sources like email marketing, digital ads, and your brokerage’s website are also effective but have significantly lower real estate conversion rates.

Key Takeaways: 

• Social media is no longer just one of many options for generating leads—it is now a necessary marketing element for every agent.
• Social media marketing is effective for targeting prospective clients, building rapport, and growing your real estate brand.

7. 92% of Realtors use Facebook to generate leads

A whopping 92% of Realtors use Facebook to generate leads, making it the most-used social platform. Realtors use it to market their businesses and connect with clients. Other most-used social media platforms were Instagram (68%) and LinkedIn (52%).

It’s wise to be active on Facebook because that’s where most clients are, but you may also consider developing an audience with less real estate competition. For example, only 12% of Realtors are on TikTok, but a number of real estate agents and brokers have large followings on this platform. If your target demographic uses TikTok and it fits your brand and personality, you could do well on this less popular platform.

Key Takeaways:

• Facebook is widely used by potential real estate clients across the US and may be an ideal place for agents to begin marketing on social media.
• Create a variety of real estate Facebook posts and present clear avenues to connect with local buyers.
• TikTok offers a less competitive landscape for real estate compared with Facebook.
• Consider using TikTok if your target audience is on the platform and it suits your brand.
• Repurpose content to fit other platforms to multiply your reach.

8. Tuesday is the best day to send an email for the highest performance

With a projected number of 4.73 billion email users in 2026, it’s no question that email is the most effective channel for nurturing leads. Its ability to deliver personalized content, automate follow-ups, and maintain consistent communication makes email an indispensable lead nurturing tool. According to HubSpot, emails sent on Tuesday receive some of the highest open and click-through rates, while Sunday is the worst.

Key Takeaways:

• Emails are the most effective and reliable way to connect with and nurture your leads.
• To maximize engagement with your leads, send emails that provide them with valuable content at least once a week.
• In an increasingly digital industry, it’s necessary for realtors to engage with their leads on a personalized level. This may be why email stands out as the most effective way for companies to connect and elicit responses from their leads.

9. Zillow is the #1 most visited real estate website

Zillow has been the most popular real estate website for many years. Exact estimates of Zillow’s traffic vary, but in June 2024, it received an average of 310 million visits. Other estimations say that Zillow receives an average of 365 million monthly visits. Another top-ranked real estate platform is Trulia, which is owned by Zillow.

Key Takeaways:

• When compared with every other marketing tool, online real estate platforms generate the highest amount of traffic.
• Successful agents should consider how they can leverage the massive popularity of platforms like Zillow and Trulia to grow their businesses more efficiently. Read our full review of Zillow Premier Agent to learn more.

Since Zillow is a pillar of the modern real estate world as well as a lead gen tool for agents, consider becoming a Premier Agent. It leverages existing Zillow traffic into quality leads and is a powerful way to grow your business. In addition, by being a Premier Agent, you can post your listings on Zillow or be featured on other listings to draw in potential buyer leads.

Real Estate Lead Conversion Statistics

Generating real estate leads is the first part of gaining new leads, but they need to be converted into clients to grow your business. Every lead generation strategy has different levels of effectiveness, so you must continue tracking and evaluating your real estate prospecting conversion rates. Read on to learn more about the average conversion rate in real estate.

10. The average conversion rate in real estate is 2.4%

Real estate lead conversion statistics can range wildly, but Ruler Analytics found that the average conversion rate in the real estate industry is 2.4%. Real estate transactions are one of the biggest financial decisions and processes that your clients make, so the process of building trust and forming relationships is particularly important and time-consuming.

Key Takeaways: 

• Larger transactions like real estate purchases are expected to have a longer nurturing process.
• Although the average conversion rates in the real estate industry appear low, conversion rates in all industries are generally between 1.8% and 4.6%.
• Conversion rates can range massively, so test different methods and strategies to find what is most effective for your audience.

11. Real estate internet lead conversion rates range from 1% to 3.5%

An in-depth marketing study by Ruler Analytics shows the average real estate internet lead conversion rates based on a variety of common marketing strategies. These include the following:

• Email: 3.5%
• Referrals: 2.7% 
• Organic search: 2.2%
• Paid search: 2%
• Call: 1.7%
• Form: 0.6%

These statistics can help form your strategies for generating, nurturing, and converting leads. However, keep in mind that real estate lead conversion rates can vary slightly depending on different factors like the source, number of agents surveyed, and the time of year. For example, a different study shows that the average conversion rate for online real estate leads through paid search in 2023 was 2.88%. 

Key Takeaways: 

• Keep track of your lead conversion rates to help you determine if your strategies are effective or in need of improvement.
• Version rates will depend on your effort, audience, and individual marketing strategies.

Measuring your average real estate lead conversion rates against industry standards can help you make the best marketing decisions. If you don’t currently keep track of your contacts and conversions, make sure you use a marketing tool like HubSpot that can help you generate accurate conversion rates. HubSpot automatically generates visual charts and reports to help you understand your progress on multiple communication channels.

12. 61.7% of buyers that search online convert over the phone

Within each lead generation strategy, there are additional tools and strategies that will impact your results. Organic search and paid ads drive 57% of all website visitors, but only a small percentage of visitors translate into leads or clients.

In fact, an interesting study found that 61.7% of home buyers who searched online ended up becoming clients over the phone—quite an increase from the average conversion rate of organic search alone (3.2%). It’s clear that a personal, one-on-one connection in combination with search engine optimization (SEO) is much more effective than either method individually.

Key Takeaways: 

• A complete marketing strategy will be significantly more effective than an individual lead generation strategy or tool on its own.
• When you combine multiple strategies like organic search and one-on-one phone calls, you can multiply your conversion rates.

Return on Investment (ROI) for Lead Generation

As you invest in real estate lead generation, it’s important to evaluate your expenses and profits to maintain and increase profitability as you grow. However, you will find that calculating exact ROI is difficult since there are an unlimited number of factors that affect an agent’s ROI. Although there is limited data about ROI, here are a few of the most important lead generation and conversion statistics to help you improve profits.

13. The average cost per lead from paid search is $66.02 

How much do real estate leads cost, you ask? The average cost per lead (CPL) for paid search in real estate is $66.02. Calculating your average cost per lead in real estate is important because it breaks down your total costs and income to show you exactly how much you are paying for each lead. Having this calculation can help you minimize your spending and maximize your income.

Key Takeaways: 

• Investing in lead generation can involve time, effort, and money.
• Knowing your CPL and learning how to minimize it will help you get the maximum number of leads, clients, and income.

14. Referred clients have a higher lifetime value by 25%

Every real estate client has the potential to become a repeat client and provide future referrals for the agent. However, when a new client is referred by someone they trust, they increase your profit margin by 25%. You save money on advertising and marketing, and you increase the chances of having a client who will continue to refer you without additional ad spend.

Key Takeaways: 

• Real estate referrals are the most likely to become loyal, long-term customers.
• Referrals from a trusted friend, family member, or colleague require less effort to convert into clients.
• Referred leads and clients are more valuable over time than leads from other sources.

15. New clients cost 6-7 times more than existing clients

Even though a few real estate lead conversion statistics above show that referrals don’t always drive the highest conversion rates, it costs six to seven times more to get new clients than it costs to retain existing ones. Since referred clients are typically more profitable and since a large majority of real estate transactions come from personal connections, it’s clear that the fastest way to maximize your ROI is through referrals.

Key Takeaways: 

• Successful real estate agents often generate a majority of their income from referrals alone.
• Real estate referrals are one of the most important pieces of a successful business because they naturally compound to generate more leads and more profit.

Frequently Asked Questions (FAQs)

What is a lead in real estate?

What percentage of leads turn into sales in real estate?

Where do most realtors get their leads?

How much does the average realtor spend on leads?

Bringing It All Together

Generating leads for your real estate business is essential to earning money and growing your business. There are various ways to successfully generate, nurture, and convert leads, like social media, organic search, referrals, and networking. While there is no cut-and-dry method to grow your business or know precisely what will work best for your audience, you should use real estate charts and generational statistics to inform your decisions and help you quickly find success.

Sources

1, 6, 7. NAR 2023 Technology Survey

2, 3, 4, 5. NAR 2023 Home Buyers & Sellers Survey

5. NAR 2024 Home Buyers and Sellers Generational Trends Report

8. Statista, HubSpot

9. TipRanks, Similarweb

10, 11, 13. Ruler Analytics, WordStream

12. Ruler Analytics Conversion Benchmark Report for Real Estate 

14. Annex Cloud

15. Zippia

The post 15 Essential Real Estate Lead Generation Statistics for 2024 appeared first on The Close.

Think of it this way—homeowners with expired listings are probably frustrated, unsure of their next move, and need someone who has a clear plan to get their home sold. That’s where you come in. Do your homework, personalize your approach, and use the right expired listing scripts to stand out and handle any challenges. So let’s dive in and see how you can become the go-to listing agent with the best expired listings scripts.

1. The Initial Contact Script

• Objective: Introduce yourself and understand the homeowner’s previous experience.
• What to keep in mind:
  • Be empathetic and professional.
  • Show genuine interest in their situation.
  • Keep the conversation open-ended to gather information.

copy to clipboard

Agent: Hi, this is {your name}, and I wanted to know if your home is still for sale.

Homeowner: Yes, it’s still for sale.

Agent: The reason I ask is that your home showed up on the MLS as an expired listing. This means it’s no longer listed for sale. I’m a real estate agent in the area who specializes in working with sellers whose homes didn’t sell the first time around. I would welcome the opportunity to meet with you to show you my unique approach to getting houses sold! Are you available for 20 minutes today at {time of day} or is {time of day} tomorrow a better time?

2. The Follow-up Script

• Objective: Reestablish contact, provide value, and move towards setting an appointment.
• What to keep in mind:
  • Be persistent, but polite.
  • Provide value by offering ideas you have in mind for their property.
  • Aim for setting up another call or even a meeting.

copy to clipboard

Agent: “Hi [Homeowner’s Name], it’s [Your Name] from [Your Brokerage] again. I hope you’re doing well. I was thinking about your property at [Address] and had some new ideas on how we could attract more buyers. I’d love to share these with you and discuss how we can get your home sold quickly. Do you have some time later this week to chat?”

Pro Tip: Always follow up, even if the homeowner says they’re selling the house as For Sale By Owner (FSBO). If it hasn’t sold by your follow-up call, you might have a chance to secure the listing the second time around.

3. The Appointment Setting Script

• Objective: Secure an in-person meeting to discuss your marketing strategies for selling their home.
• What to keep in mind:
  • Be specific during this cold call and show them you’ve done your homework.
  • Suggest a specific day and time, making it easier for them to say yes.
  • Be flexible and offer alternative times.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I’ve been reviewing the details of your property at [Address], and I have a few tailored strategies that I believe could really make a difference in getting it sold quickly and at the best price. I’d love to meet with you to go over these ideas in detail. How does [specific day and time] work for you?”

4. The Voicemail Script

• Objective: Leave a compelling message that encourages a callback.
• What to keep in mind:
  • Keep your message brief and to the point.
  • Personalize the message by mentioning the property specifically.
  • Use a positive tone and clearly state your contact info.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I noticed your home at [Address] recently came off the market, and I specialize in helping homeowners like you successfully sell their properties.

I have some fresh ideas and strategies that could make a big difference. Please give me a call back at [Your Phone Number] when you have a moment. I look forward to speaking with you soon. Have a great day!”

5. The Text Message Script

• Objective: To use an expired listing script to make initial contact by text message in a clear and engaging way.
• What to keep in mind:
  • Make it personal and feel less spammy.
  • Make it clear who you are and the brokerage you work for.
  • Keep it short and ask to chat.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I noticed your home at [Address] recently came off the market. I specialize in helping homeowners like you get their properties sold quickly and for the best price. I have some fresh ideas and strategies that could really make a difference. Would you be open to a quick chat to discuss how we can get your home sold? Thanks!”

6. The Email Script

• Objective: Engage with the homeowner through expired listings scripts to provide valuable insights and a call to action.
• What to keep in mind:
  • The subject line should grab their attention.
  • Be sure they know you have new strategies to discuss.
  • Provide a clear call to action, asking for the next meeting or call.

copy to clipboard

Hi [Homeowner’s Name],

I hope this email finds you well. My name is [Your Name], and I’m a real estate agent with [Your Brokerage]. I noticed that your beautiful home at [Address] recently came off the market. I specialize in helping homeowners like you successfully sell their properties, and I have some fresh strategies that I believe could make a big difference.

I’d love to share these ideas with you and discuss how we can get your home sold quickly and at the best price. Are you available for a brief call or meeting this week? Please let me know a time that works for you.

Thank you for your time, and I look forward to the opportunity to work together.

Best regards,

[Signature]

7. The Door Knocking Script

• Objective: Make a strong first impression by knocking on the door and introducing yourself.
• What to keep in mind:
  • Start with a friendly introduction and mention your brokerage.
  • Ask if they have time to chat now or if they’d prefer to schedule a follow-up meeting.
  • Stay upbeat and positive, no matter what their reaction may be.

copy to clipboard

Agent: “Hi [Homeowner’s Name], I’m [Your Name] with [Your Brokerage]. I was in the neighborhood and noticed your home at [Address] recently came off the market. I specialize in helping homeowners like you get their properties sold quickly and at the best price.

I have some fresh ideas and strategies that I believe could really make a difference. Would you have a few minutes to chat now, or can we set up a time that works better for you to discuss how we can get your home sold?”

Pro Tip: Whether you’re using expired listings scripts or prospecting any other type of lead, it can be difficult to convert leads into clients. Try the LPMAMA technique to build rapport and increase sales.

8. The Market Analysis Script

• Objective: Offer to provide a detailed market analysis to provide value and build trust.
• What to keep in mind:
  • Mention that you have valuable insights to share.
  • Make sure they know it’s important since their house didn’t sell the last time.
  • Once they agree, set up a follow-up meeting right away to discuss the analysis and next steps.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I wanted to follow up with you regarding your property at [Address]. I’ve conducted a detailed market analysis and have some valuable insights on why it may not have sold and what we can do differently.

I’d love to share this information with you and discuss how we can position your home to attract more buyers. When would be a convenient time for us to meet and go over this together?”

9. The Price Adjustment Script

• Objective: Discuss the need for a price change from the last time they listed to sell the home.
• What to keep in mind:
  • Be sensitive to the homeowner’s feelings.
  • Emphasize that your recommendation is based on thorough market analysis.
  • Explain how a price adjustment can attract more buyers and increase the chances of a sale.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I’ve been reviewing the market data and buyer feedback on your property at [Address], and I believe we may need to consider a price adjustment to attract more interest at this time.

The current market conditions and comparable properties suggest that a slight adjustment from the last time you listed the home could make a significant difference in getting more buyers through the door. I’d love to meet with you to discuss this in detail and explain how it can help us achieve your selling goals. When would be a convenient time for us to chat?”

10. The Client Success Story Script

• Objective: Share a success story to build trust and demonstrate your expertise.
• What to keep in mind:
  • The success story should relate to their current situation.
  • Be sure your story is specific.
  • Express confidence in achieving similar results.

copy to clipboard

Agent: “I wanted to share a recent success story that might resonate with your situation. I recently worked with a homeowner whose property had been on the market for months without any offers. After implementing a few strategic changes, including a targeted marketing campaign and some minor staging adjustments, we were able to sell their home in just three weeks at a great price.

I believe we can achieve similar success with your property at [Address]. I’d love to discuss how we can make that happen. When would be a convenient time for us to meet to go over my strategy for your home?”

11. The Staging Consultant Script

• Objective: Offer a consultation with a stager to help the homeowner visualize how enhancing the property’s appeal will attract more buyers.
• What to keep in mind:
  • Explain the benefits of professional staging.
  • Mention your consultant specifically.
  • Reference a few specific staging techniques you’ve personally used that added value.

copy to clipboard

Agent: “I’ve been thinking about ways to make your property at [Address] stand out to potential buyers. One of the most effective strategies is professional staging, which can highlight your home’s best features and create a more inviting atmosphere. I work with a fantastic staging consultant who has a proven track record of helping homes sell faster and for higher prices.

Would you be interested in setting up a consultation to see how we can enhance your home’s appeal? When would be a good time for us to discuss this further?”

12. The First Meeting Script

• Objective: Build trust, understand the homeowner’s goals, and present your marketing plan.
• What to keep in mind:
  • Be sure to greet the homeowner and thank them for their time.
  • Ask about their previous experience and listen to their concerns.
  • Invite them to ask questions and ensure they feel comfortable.

copy to clipboard

Agent: “Hi [Homeowner’s Name], it’s great to finally meet you in person. I’m [Your Name] from [Your Brokerage], and I appreciate you taking the time to meet with me today. I’ve reviewed the details of your property at [Address], and I understand how important it is for you to sell quickly and at the best possible price.

To start, I’d love to hear about your previous experience and what you felt might have been missing. From there, I can share my comprehensive marketing plan tailored specifically for your home. This includes targeted online advertising, professional photography, staging, and open houses designed to attract serious buyers. I believe we can position your home in a way that highlights its best features and sets it apart from other listings.

We will go through this plan together and I’ll answer any questions you have. My goal is to ensure you feel confident and excited about the process moving forward. How does that sound?”

13. The Marketing Plan Presentation Script

• Objective: Present a detailed marketing plan tailored to the homeowner and secure the listing.
• What to keep in mind:
  • Be sure to provide a clear, step-by-step marketing plan.
  • Highlight how each part of your plan will attract buyers.
  • Invite questions and provide detailed answers.

copy to clipboard

Agent: “Hi [Homeowner’s Name], thank you for meeting with me today. I’m [Your Name] from [Your Brokerage], and I’m excited to share my comprehensive marketing plan for your property at [Address].

First, I want to assure you that I’ve carefully analyzed the local market and reviewed what happened during your previous listing. My goal is to create a strategy that highlights your home’s unique features and reaches the right buyers.

[Provide overview of marketing plan – include the below items that are part of your plan]

• Professional Photography and Videography: High-quality images and a virtual tour to showcase your home beautifully online.
• Staging Consultation: Partnering with a top-notch staging consultant to make your home look its best.
• Online Advertising: Targeted ads on major real estate websites, social media platforms, and Google to reach potential buyers.
• Email Marketing: Sending out professionally designed emails to my database of buyers and local real estate agents.
• Open Houses and Private Showings: Coordinating open houses and private showings to attract serious buyers.
• Print Marketing: High-quality brochures and postcards to be distributed in the neighborhood and at key locations.
• MLS and Syndication: Ensuring your listing appears on the Multiple Listing Service (MLS) and is syndicated to all major real estate websites.

Each of these elements is designed to maximize exposure and attract serious buyers. I’m confident that with this approach, we can generate a lot of interest and get your home sold quickly and for the best price.

Do you have any questions or specific concerns about the marketing plan? I’m here to address them and make sure you feel confident moving forward.”

14. The Reengagement Script

• Objective: Reconnect with the homeowner to reignite their interest in selling and offer new strategies.
• What to keep in mind:
  • Show you understand and respect their decision to step back from the market.
  • Mention new market trends that would be beneficial to selling their home now.
  • Be sure to have fresh ideas to share.

copy to clipboard

Agent: “Hi [Homeowner’s Name], this is [Your Name] from [Your Brokerage]. I hope you’re doing well. I wanted to touch base with you regarding your property at [Address]. I know you took a break from the market, and I completely understand. Sometimes, stepping back can provide a fresh perspective.

I’ve been keeping an eye on the market, and there have been some exciting changes and new trends that could work in your favor. I have a few new strategies and marketing ideas that I believe could make a big difference in getting your home sold quickly and for a great price.

Would you be interested in meeting to discuss these new opportunities? I’d love to help you achieve your home selling goals. When would be a convenient time for us to chat?”

15. The Closing the Deal Script

• Objective: Secure the homeowner’s commitment to list their property with you.
• What to keep in mind:
  • This is your opportunity to get a listing agreement signed—ask for the listing.
  • Be sure to have the paperwork ready to be signed.
  • Show confidence in your marketing plan and get them excited to get their home sold.

copy to clipboard

“Hi [Homeowner’s Name], it’s been great discussing your property at [Address] and exploring how we can achieve your selling goals. I believe that with the detailed marketing plan we’ve outlined and the tailored strategies we’ve discussed, we have a strong path forward to getting your home sold quickly and at the best possible price.

I’m confident that my approach will deliver the results you’re looking for. Are you ready to move forward and get your home back on the market? I have all the paperwork ready, and we can get started right away. When would be a good time for us to finalize the details?”

“Or if it’s easier, I can have the paperwork sent over to you electronically!”

Expired Listing Tips & Best Practices

Turning expired listings into successful sales requires a smart approach. Following these tips will boost your success whale using expired listing scripts. Every homeowner’s situation is different, so customize your approach to fit their needs. If you do your research, personalize your communication, and build trust, you’ll be turning expired listings into sales in no time. Here are some top tips to help you make the most out of these opportunities:

Tip 1: Do Your Research

Before reaching out, gather as much information as possible about the property and its previous listing. Understand why it may not have sold, such as pricing issues, inadequate marketing, or market conditions.

Best Practices:

• Review the MLS listing for photos, descriptions, and pricing history.
• Analyze market trends in the neighborhood.
• Check out the competition and what similar homes have sold for recently.

Tip 2: Personalize Your Communication

Personalization is key when contacting homeowners with expired listings. Generic messages can come off as insincere and ineffective.

Best Practices:

• Address the homeowner by name.
• Reference specific details about their property.
• Mention any unique selling points or potential improvements.

Tip 3: Use Multiple Methods of Contact

Don’t rely solely on one method of communication. Different homeowners may respond better to different approaches.

Best Practices:

• Start with a phone call to make a personal connection.
• Follow up with an email that includes valuable information like a simple market analysis.
• Consider sending a handwritten note or a postcard for a personal touch.

Tip 4: Highlight Your Expertise & Success

Homeowners need to feel confident that you can achieve what their previous agent could not. Highlight your expertise and past successes.

Best Practices:

• Share client success stories from satisfied clients.
• Provide statistics on your success rate with similar properties.
• Explain your marketing strategy and how it differs from what they experienced before.

Tip 5: Focus on Building Trust

Trust is critical in real estate transactions, especially for homeowners who have had a negative experience.

Best Practices:

• Actively listen and empathize with their frustrations.
• Be transparent about what may have gone wrong previously and how you plan to do things differently.
• Follow through on any promises or commitments you make to the homeowner.

Tip 6: Use No-pressure Strategies

A no-pressure consultation can help homeowners feel more comfortable and willing to engage with you.

Best Practices:

• Provide a detailed, no-obligation market analysis.
• Offer to discuss potential improvements or staging ideas.
• Be prepared to answer any questions they might have about the selling process.

Tip 7: Be Persistent—but Respectful

Persistence shows your commitment, but it’s important to strike the right balance to avoid being perceived as pushy. Handle objections as they come, but also be mindful of their previous experiences with real estate agents. 

Best Practices:

• Set a follow-up schedule and stick to it.
• Respect their space if they ask for time to think things over.
• Send occasional updates or valuable information without overwhelming them.

Tip 8: Leverage Technology

Make technology your new best friend. It makes your work easier and interactions smoother.

Best Practices:

• Use a CRM system to track your interactions and follow-ups.
• Implement virtual tours or digital marketing tools to showcase their property.
• Use data analytics to provide insights and market trends.

Wise Agent CRM makes managing contacts and following up with leads easy-peasy! It keeps track of all your interactions, sets reminders, and automates follow-up tasks, so you never miss a beat. With Wise Agent, you’ll stay organized and ready to turn more leads into happy clients.

Frequently Asked Questions (FAQs)

Do expired listing letters work?

How do you market an expired listing?

What happens when listings expire?

Bringing It All Together

Expired listings are a goldmine for agents ready to put in the work. Cold-calling is not easy or comfortable if you’re not used to doing it. By using these expired listing scripts, you can build trust, offer real value, and win new clients. The secret sauce? A mix of empathy, persistence, and professionalism. 

What are your favorite expired listing scripts? Let us know in the comments. We love sharing success stories and awesome tools with other agents! Good luck and happy selling!

The post The 15 Best Expired Listing Scripts & Best Practices appeared first on The Close.

Disclaimer: This article contains suggestions for informational purposes only and does not offer legal advice. Laws and restrictions vary by area. Before using any of the techniques listed, check with your local real estate commission and attorney for guidance.

What Is a Cash Offer in Real Estate?

“Cash is king” is a common phrase in many industries, but it definitely applies to real estate purchases. A cash offer is when a homebuyer doesn’t require financing (like a mortgage) and can pay for the property in full with cash.

Why Is a Cash Offer Better?

Cash is an appealing choice for sellers because it is usually ready to go, and they don’t have to risk many hiccups in the closing timeline. The mortgage lender usually requires inspections, appraisals, and repairs, so there are more logistics and obstacles to overcome when buyers are financing a home.

10 Ways to Complete With Cash Offers

Since you’ll have clients with many financial backgrounds, agents need a strategy ready to make their offer stand out for every different type of transaction. When you don’t have a cash offer, here are the top 10 ways to successfully beat them—even in a red-hot market!

1. Use a Cash Lender

If you’re wondering how to beat a cash offer on a house, one of the most straightforward methods is to transform your offer into a cash offer with a cash lender. Cash lenders were born to help mortgage buyers compete with cash buyers. They will buy the home with cash and then work with the buyers to refinance or purchase the property after closing.

Here’s an example of how it works:

• Get qualified with a cash lender like Homeward Mortgage
• Find a house to purchase
• Homeward will place a cash offer on the property
• Once the property is purchased, the buyer rents the property from Homeward while the loan gets finalized

Cash lenders typically charge 2%, but Homeward Mortgage’s fee is reduced if the buyer uses them for their final loan.

2. Submit Your Offer Early 

Some investors and buyer’s agents believe the best strategy to win bidding wars is to wait until the last minute before submitting an offer. Don’t do this, especially when figuring out how to compete with cash offers! The adage “the early bird gets the worm” is very accurate in this situation. The more time you give before submitting your offer, the higher the buyer’s chance of giving more (and better) offers if their offer is rejected.

Also, if you have clients looking at homes and you find they’re not quite ready to buy—you should stop right now and help them get everything in order. Use our home buying checklist to make sure they’re prepared. This prep will help you get offers in quickly and compete with even the most competitive cash offers.

3. Offer a Signing Bonus

The best way to overcome a situation where there are multiple offers is to offer a “signing bonus” if your buyer’s offer is accepted quickly. To do this successfully, you have to present the highest and best offer, but it can be a great way to compete with cash offers.

This approach allows your buyer to stand out and potentially eliminate the competition—and the seller and agent both feel like they get a fair price. Plus, if the seller doesn’t accept the offer, it stays in the mix, so your buyer can still have a chance to win.

4. Be Memorable & Likable

Getting an offer accepted over others is a competition. Home sellers compete for cash, but you must compete to get your buyers to the closing table, and slipping through the cracks is no way to win a competition. Being likable and memorable is key!

Listing agents might deny it, but professional and polite agents are more likely to get their offers accepted. An agent who lacks professionalism, is unfriendly, or oversteps boundaries isn’t someone people like to work with. So, if you want to beat out a cash offer, kill them with kindness. 

Here are easy ways to be more memorable and likable to the listing agent:

• Communicate consistently: Start building trust with the listing agents as soon as you schedule the first showing. Be friendly, answer texts quickly, and be respectful of the listing.
• Leave unique feedback: Instead of leaving generic feedback on the listing, mention specific things your buyer loved, like the style of the home, the neighborhood, or how they can see themselves living there. This extra effort can leave a great first impression and make them feel emotionally connected to you or your buyers.
• Send an introductory video: Record a quick introductory video of yourself to the listing agent. Due to Fair Housing regulations, don’t include your clients. Let them know you will submit an offer and ask them to keep you updated on any status changes. Videos make people feel like they’re talking directly to you and are more personal than text—plus, they stand out from all the other buyer agents.

5. Offer to Cover the Appraisal Gap

One of the main reasons why a cash offer is better is that it’s simpler—there are more requirements when a mortgage is involved, like an appraisal. Bidding wars can sometimes cause sales prices to rise far beyond what agents or appraisers can realistically justify, which can cause financing issues for buyers. 

The difference between the actual sales price and the lower appraised value is called an appraisal gap. If your clients are in this situation, buyers can mitigate the risks for the seller by offering to cover an appraisal gap. This strategy means your buyers will put up additional money for the down payment and closing costs.

For example: if a property is marketed for $400,000 and it gets bid up to $420,000, the financed buyer may agree to bring in an additional $20,000 if the property doesn’t appraise at $420,000.

Of course, buyers may not jump at this idea, but it can be instrumental in highly competitive situations. Remind them they will only need this money if the appraisal is lower than the agreed sales price. However, here are a few ways you can suggest to your clients on how to offer an appraisal gap:

• If they don’t have the additional funds for an appraisal gap to try to restructure their loan to a lower down payment option
• Have them ask parents, grandparents, or even borrow from their 401(k) to cover the gap in the event the appraisal comes up short

Pro Tip: It may be wise to discuss this with your clients when you start looking for houses, not when their emotions are tied to a property. Use a house hunting checklist to help you broach the subject.

6. Have Your Buyer Pay Your Commission

Figuring out how to beat a cash offer on a house is challenging because there isn’t a single method that will work every time, so you’ll have to get creative. If you’re still stumped, think about how many sellers feel that it isn’t fair that they pay commissions for both their agent and the buyer’s agent. Commissions have always been a touchy topic, so here’s how Sean Moudry used the commission to beat a cash offer:

7. Add an Escalation Clause

An escalation clause can be part of a real estate contract, stating that the buyer will increase their offer if a higher bid is made. They often get a bad reputation, but when used correctly, they allow buyers to make their strongest offer without the risk of overpaying. This technique can place a financed offer ahead of a cash offer on a house, meaning success for you and your client.

For example, a home listed for $460,000 gets multiple offers for $470,000, $480,000, and $500,000. Most likely, the $500,000 offer from the most earnest buyers will get accepted at $500,000.

However, the buyers could offer $475,000 with an escalation clause offering $1,000 more than any viable competing offer up to $500,000. This creates the potential for them to get their offer accepted at $481,000, since the highest offer at $480,000 + $1,000 = $481,000. If this offer were accepted, it would save them $19,000 because of the escalation clause!

8. Pay the Seller’s Closing Costs

In most real estate transactions, the seller pays for the costs of the title insurance, escrow, agent fees, and homeowner association (HOA) fees. These costs can add up to between $2,000 and $29,888. However, having the seller pay is just standard practice, not an actual legal requirement, so the buyers offering to pay closing costs can be a huge advantage.

This may seem like a small gesture, but this strategy can go a long way with some money-conscious sellers. Make sure to get estimates of the fees before including this in your offer, or set a limit on the costs your buyers will pay based on their budget.

9. Give the Seller a Flexible Possession Time

Many sellers need to buy a home at the same time that they’re selling, which can be nerve-racking. You can give some peace of mind to sellers and compete with cash offers by offering a flexible purchasing timeline. Of course, cash offers can also have flexible possession dates, but they aren’t always offered. There are two main strategies buyers with financing can use to give the seller more time to move:

• No-cost rent-back or leaseback: If a seller needs time to stay after the home is sold, then a no-cost rent-back can give them time to stay in the home long after it’s been sold. Most states provide a pre-approved form for post-occupancy. If your state doesn’t provide these forms, advise your client to have a lease drafted by a local real estate attorney. Remember that FHA and conventional loans only allow 60 days of flexibility, but buyers can qualify for an investment loan to extend the time further.
• Replacement home contingency: This is a two- to four-week contingency for the seller to find, contract, and inspect a replacement home. If the seller cannot complete this by the end of the time period, they may extend the time, or either party can terminate the contract. This technique avoids the 60-day occupancy requirement, but the contract could be terminated if the seller cannot find a replacement home.

10. Communicate

It sounds simple, but many buyers’ agents send offers without calling or texting first. It’s best practice to make accepting an offer as easy and appealing as possible for the listing agent and seller—and it’s just smart business to build trust during the process.

Consider what a cash offer on a house means for the seller and the agent—easy and hassle-free. To compete with that, you must build a relationship and keep your communication clear and consistent. A great way to do this is by calling the listing agent (yes, on the phone!) to clearly understand the seller’s situation and how you can draft an offer that meets their specific needs. Always call or text the listing agent to let them know the buyers submitted an offer and ask the listing agent to confirm they received it.

FAQs

How do you counter a cash offer?

Do all cash offers ever fall through?

How are so many people making cash offers on homes?

Bringing It All Together

What does a cash offer mean in real estate? For home sellers, it’s usually appealing because it’s easier. For competing homebuyers and agents, it means that the home is more competitive. However, there are plenty of strategies on how to compete with cash offers. Stay positive, think about the other concerns a seller may have, and craft an offer to meet their needs.

Got other ways to beat the cash offer competition? Let us know below!

The post How to Compete With Cash Offers: 10 Ways to Write Winning Offers appeared first on The Close.