This year witnessed a slowdown in real estate transactions as home buyers and sellers opted to wait amidst commission lawsuits, soaring mortgage rates, and limited inventory. This market lull left agents grappling with concerns about their long-term survival in the industry.
Enter the Federal Reserve, timely announcing the most significant one-day interest rate drop in almost four years, just in time for year-end celebrations. This prompted a resurgence in demand for homebuying mortgages, as confirmed by leading property platforms. A Realtor.com® report noted increased activity among home sellers this November, with 7.5% more newly listed homes compared to the previous year. Additionally, Zillow predicts that homebuyers will have a slightly more affordable array of homes to choose from in 2024.
So, does this forecast a more prosperous New Year for real estate professionals? Yes, but the aftermath of the commission lawsuits unfortunately complicates buyer consultations.
However, keep in mind:
- Nothing is truly new under the sun. As entrepreneurs, agents have always needed to think on their feet. Now is the ideal time to refine your survivalist skills.
- You have the right to negotiate your commission – it has always been negotiable. Commission is based on your worth – it’s not predetermined. Recognize your value and understand your limits.
- When meeting with clients, be prepared with a breakdown of your services and values to share with them.
To facilitate discussions about the lawsuits, consider the following suggestions:
- Check with your broker and acquaint yourself with state guidelines before engaging with clients.
- Offer multiple commission structures to provide clients with flexibility in choosing what works best for them.
- Highlight the client’s need for your expertise; demonstrate the value you bring by presenting an analysis of your skills and market knowledge.
- Outline the steps of the buyer process, guiding clients through the journey and explaining how you’ll navigate complexities and legalities.
- Stay informed about any new lawsuit developments and outcomes, keeping your clients updated to foster trust and loyalty.
- Collaborate with a reputable B2B real estate services company like Blok to streamline and mitigate the legal hassles and risks involved in any property transaction, whether you’re an agent, team, or brokerage.
