Trying to Reach Millennial Homebuyers + Sellers? Here are 30 Ideas from Virtuance

30 Ways to Reach Millennial Homebuyers Online

As 2021 is nearing, it’s time to start generating and converting valuable leads. You may have the urge to send your lead magnet content out at random, hoping something sticks, but there’s better ways to convert. It’s important to create a marketing campaign that is quantifiable and has a targeted audience. A sense of direction is necessary for converting leads.

We’ve known for awhile that more than one-third of home buyers are millennials. We also know that millennials pretty much keep social networks and other online forums in business. If you’re looking to reach millennial homebuyers, you’ll want to create a strong online marketing campaign.

Below is a list of ways to reach those millennial homebuyers online:

1. Post regularly to social media

2. Use relevant hashtags

3. Create graphics for posts using Canva.com

4. Post to forums like Reddit and Quora

5. Promote listings with sponsored ads on Facebook

6. Design home buying checklists as lead magnets

7. Do live showings on Facebook Live

8. Host a mini house buying class on Instagram Stories

9. Engage in Facebook Groups

10. Write content and post on Medium

11. Share your listings as a Single Listing Website on Social

12. Host a social media giveaway

13. Attract remote buyers with a Matterport 3D Tour

14. Post 360-degree panoramas of your listings on social

15. Write a better listing description

16. Use a professional real estate photographer for your listings

17. Write about the hip areas and restaurants in your farm

18. Host a Facebook Live Q&A Session

19. Offer free online consultations to first time home buyers

20. Create “day in the life” content

21. Reshare engaging content on social media

22. Actively engage with your followers

23. Create a monthly or quarterly email newsletter

24. Post social proof and case studies

25. Design a Google Review campaign

26. Host a webinar on the home buying process

27. Connect with young professionals on LinkedIn

28. Actively engage on community Facebook Groups

29. Host a Virtual Open House

30. Promote vendors in your sphere

The list above are just a few of the many ways you can reach and connect with millennial home buyers online. Remember to stay creative and agile – and always follow-up!

For more great agent content like this, visit Virtuance’s blog.

Interview: West + Main founders with Lisa Kerin-Welch

We were excited to be invited to speak with Lisa Kerin-Welch on her Candid Conversation Series, an interview style show with discussions that are real, raw, and brave. In this 30 minute episode, West + Main co-founders Stacie Staub and Madeline Linder share their insights on Creativity, and share secrets behind how they make their residential brokerage thrive. 

We highly recommend joining her live on Thursdays between 11:00AM-11:30AM MST  where she talks to some of her favorite women about: Addiction, Advocacy, Anxiety, Beauty, Business, Faith, Leadership, Loss, Parenting and much more! Lisa is an amazing interviewer and has a talent for getting special insights out of her guests. Hope you get to check it out!

Safer at Home Guidance for Real Estate - Colorado

Safer at Home Guidance for Real Estate

(October 12, 2020 Update)

The Division of Real Estate continues to receive complaints concerning real estate brokers not following state and county-issued guidance regarding COVID-19 restrictions when performing real estate activities. Please be aware that many Orders are still in effect and you should be vigilant to stay in compliance of those Orders for the safety of yourself and others.

On October 6, 2020, Governor Jared Polis, by Executive Order D 2020-213, extended many previously issued Orders that are referenced below.

On June 30, 2020, Governor Jared Polis by Executive Order D 2020 123, amended Executive Order D 2020 091, the “Safer at Home and in the Vast, Great Outdoors”, which is incorporated into the Colorado Department of Public Health and Environment’s (CDPHE)   Tenth Amended Health Order 20-28, dated August 21, 2020,  under the Safer at Home phase of the COVID-19 pandemic. 

These Orders implemented a number of measures that allowed many Coloradans to return to work and recreation in the great outdoors while maintaining social distancing, it also allowed all Field Services, including real estate, to resume operations in accordance with the requirements of this Order including Appendix B. Real estate includes in-person real estate showings and marketing services which must adhere to Social Distancing Requirements with cleaning and disinfection between each showing. Open houses must follow the Indoor Event requirements in Section I.H.4 of this Order.

The goal remains to have most people stay at home as much as possible while allowing businesses to  reopen under restrictions and guidance to ensure as much safety as possible for both employees and consumers. CDPHE is making the information contained in the Amended Public Health Order available via the Safer at Home webpage where you can access information by industry (see “Field Services & Real Estate”).

DORA recognizes that these orders, while detailed, do not necessarily reach the level of specificity many of our regulated professions desire. Additionally, we know that businesses and professionals are being asked to absorb information from a wide variety of sources, and many amended versions of public health orders. In an effort to provide not only additional clarity on industry and business-specific safety measures, but also to synthesize information from many State of Colorado sources, we ask you to once again review the additional guidance for real estate brokers and services. 

Also, please be aware that The Colorado Department of Public Health & Environment has also implemented the "Protect Our Neighbors" phase. "Protect Our Neighbors" means that communities that meet certain criteria have less stringent restrictions than under "Stay at Home” and “Safer at Home" phases.

Different communities will be in different phases, based on local conditions and capabilities. What this means is that rules may be different if a county has moved into the "Protect Your Neighbors" phase. You should therefore inquire to your county seat or health department regarding any variances that may allow more lenient restrictions than those implemented throughout the rest of the state. If you are unsure what applies, follow the stricter set of requirements.

Short-Term Rental Guidance

The “Safer at Home and in the Vast, Great Outdoors” orders allow for the opening of the short-term rental market. Therefore, real estate brokers that work with customers in the short-term rental market need to be aware of the recent Colorado Department of Public Health & Environment (CDPHE) Guidance for Short-Term Rentals that was updated under the Colorado Safer at Home Orders on the Safer at Home website. This short-term rental guidance provides information concerning the rental space, owner and manager responsibilities, and the responsibility of guests. Please review it in full before you proceed with resuming services in the short-term rental market.

Additional Guidance for Real Estate Brokers & Services

Guidance for Short-term Rentals

New PPP Forgiveness Form for Small Loans - Realtors Stay Informed!

New PPP Forgiveness Form for Small Loans

On Thursday, October 8, the Small Business Administration (SBA) and the Treasury Department announced the release of a new, further simplified forgiveness application for PPP borrowers with loans of $50,000 or less. The new application - Form 3508S - is one-and-half pages long, and requires the borrower to certify that the amount they are seeking forgiveness for was spent in accordance with the PPP requirements. Documentation must be submitted to their lender confirming payroll costs, employee numbers, business mortgage interest payments, rent and utility costs for the covered period. The new forgiveness application is simpler for eligible borrowers to use, and will reduce the processing time on the part of the lenders.

In addition, borrowers who use the Form 3508S are exempt from the PPP requirements for maintaining the number of "Full Time Equivalent" employees and not reducing employee wages. Thus, borrowers with loans of $50,000 or less who use the new form are eligible to have their full PPP loan amount forgiven even if economic circumstances kept them from meeting one or both of those requirements of the program.

NAR has been supportive of further streamlined forgiveness rules for small PPP borrowers, and will continue to advocate for future improvements to the program. The SBA is currently processing forgiveness applications provided by the SBA lenders. Borrowers have 10 months from the end of their covered period to submit the Loan Forgiveness Application and accompanying documents to their lender, and the lender then has 60 days to make a determination on the loan forgiveness request.

Read the Press Release(link is external)

Download the Form 3508S PPP Forgiveness Application(link is external)

Read the Form 3508S PPP Forgiveness Application instructions

First American Market Report for the Industry - Denver Metro - September 2020

It just won’t stop, where will we see shift? 

Rates dropped, again. With rates dropping to lowest historical levels, buyer affordability remains stale if not better despite significant appreciation over last year. We’re in a market where sellers are experiencing some of the best conditions and favorability when listing right now, but also buyers can buy at higher price points from enhanced affordability.

What might happen heading into the 4th Quarter and the election?

In previous years Colorado has seen minimal impact and shift as it relates directly to the Presidential Election. In 2020 style, this year is certainly different. Due to social, political unrest, demonstrations, riots and of course COVID-19 we have experienced more turbulent conditions and it will be challenging to separate each of these issues to measure their independent effect.

In years past, the only affected homeowner pool have been those with higher net worth, and/or those using jumbo financing and relying on their assets to make a purchase. Hand in hand with election season comes stock market volatility- and those who have more substantial investments than average are more likely to press pause to see how the election plays out. Be sure to tune into my weekly market update on Friday’s at 10:00AM to catch the play by play every 7 days.

Detached Single Family Highlights:

• Active inventory remained flat month-over-month up by +1.0%, also down from the same month one year ago by -50.7%.  Inventory for the month of September was 2,820 units for sale. 

• Contracts accepted, or pending sales, decreased by -12.9% and were up from the same month one year ago by 18.5% with 4,808 contracts accepted in Metro Denver.

• Closed units slowed month-over-month by -2.1% but were up +30.0% from the same month one year ago.

• Days on market held fast at 21 days on market as an average, as did median days on market, coming in at 6 median days to contract.

• Flash sales- or units pending after just one week on the market were reported as 58.4% of all detached units closed in September.

• The competitive nature of the market post COVID-19 quarantine in September reported that 24.5% of closed transactions sold for a full price offer with 44.8% sold for over asking price.

• Even though average home prices appreciation was up YOY to $591,231- when coupled with the recent drop-in interest rates a 30-year fixed loan with 10% down will yield principal and interest payments of $2,207; which is -0.4% less than purchasing an average priced home one year ago.

Attached Single Family Highlights:

DOWNLOAD REPORT ›

Please be sure to spend some time each Friday from 10-11AM reviewing the weekly COVID-19 report so you have the most current information we can provide. New webinar registrations will be sent out for October dates next week. Due to changes in Zoom I need to make some modifications that will allow us to live stream on social media. Please be on the lookout for those on Wednesday.

Thank you for the opportunity to rise to the occasion as your real estate trend-tracker of choice, and I hope to see your clients at our closing tables in the future!

We’ll see you soon. 

Megan Aller
Account Executive
MOBILE 720.229.6641
maller@firstam.com

First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.This message was sent to you as a service of First American Title Insurance Company.

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If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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13 Ways to Step Up Your Defense Against Hackers

Hackers could be using the global pandemic as an opportunity to target real estate as more transactions and communications are conducted remotely. What’s more, phishing emails may try to use COVID-19 as an excuse for why professionals need to renew login credential or passwords, or hackers may prey on any relaxed online security of the increased numbers of those working from home.

Now more than ever, you need to be on guard, said speakers on Thursday during a National Association of REALTORS®-sponsored virtual session, “Cyber and Data Security,” as part of the Tech Edge series. The warnings by speakers were strong because real estate scams have become a prime focus of hackers in recent years. Last year alone, real estate and rental fraud resulted in $221.3 million in total losses to victims—a 48% increase in monetary loss over the year prior, according to FBI data from the Internet Crime Complaint Center.

“Real estate is a major target that hackers are going after,” said Craig Grant, CEO of the Real Estate Technology Institute. “Be vigilant,” or it can destroy your finances, reputation, and harm your clients.

To protect your business and your clients, “awareness is key,” said Chris DeRosa, NAR's member information and ecommerce product leader, who spoke at the session. “Whatever people tell you, there is no guarantee to keep you safe from data breaches, but awareness can help so you become aware of the threats and how they are getting through so that you can then take more preventative efforts to protect your business.”

After all, real estate scams could trick your clients out of their entire down payment, scar your reputation from clients who accuse you of not doing enough to protect them, and even pose a liability to your business for failing to warn clients of the risks. 

Adopt risk management and mitigation strategies to protect yourself and your clients from real estate scams. Here are a few ideas from the Tech Edge session:

1. Ask “Stop, wait, does that make sense?” When you receive an email, take an extra few minutes to question it, even if seemingly from a contact. Ask yourself: Would this person normally email you with that request? Does your bank ask you to send them your password? Does this sound like a client you have been working with? Were you expecting this attachment from your colleague? “It is not bad customer service to add a minute or two before you answer,” DeRosa said. “It will save you a big potential mess on your back end if you are caught by phishing, malware, ransomware, or give out personal data.”

2. Watch the information you share. Avoid sending wire instructions—and any personal or sensitive financial information—over email. Also, watch the information you post on social media. Hackers track MLS sites, looking to identify pending home sales. Once they pinpoint a prime target, they take part in social engineering—profiling you, your clients, title companies, closing attorneys—all whom are involved in the transaction, warned Deanne Rymarowicz, NAR associate counsel. They are scanning your social profiles for information about your transactions and hacking into your emails to start communicating with your clients pretending to be you.

3. Ensure your systems are secure. Check to make sure that your computer and antivirus software are up-to-date, including any privacy tools, add-ons for browsers, router firmware, ransomware protection, and phone apps you use for your business. Activate two-factor authentication when accessing accounts, use encrypted email, and consider using a VPN when accessing public Wi-Fi.

4. Educate your clients. From your initial client meetings to when an offer is accepted, talk to your clients about the dangers of wire fraud scams. Some brokers are even requiring signed disclosures after informing their clients of the dangers. NAR teamed with the American Land Title Association to develop a brochure that warns customers about the dangers of cybersecurity scams, including how to avoid scams and what to do if you suspect one. Customize the brochure with your information. Download it for free at the REALTOR® Store.

5. Use a transaction management platform. The benefit of a transaction management platform is that it can archive all back-and-forth communications with your client over a secure network. Investigate transaction management platforms with safeguards in place for sharing documents and sensitive information.

6. Verify, verify, verify. Tell your clients that they should always confirm all instructions in person or over the phone with a trusted representative. They should never follow emailed instructions, particularly if it involves wire fraud instructions. Also, warn them to always verify information with an independently verified phone number, and never use the contact information they find in an email.

7. Check email addresses closely. One common way that hackers infiltrate transactions is by creating spoof emails that appear nearly identical to real ones. Look closely at all email addresses for subtle differences. For example, “debsmith@titlecompany.com” could be spoofed to come from “debsmith@titllecompany.com.”

8. Add a disclaimer to your email signature. NAR.realtor offers a sample email template that can be added to the bottom of your emails to warn clients about the dangers of real estate scams. Here’s an example: 

IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.

9. Don’t click on unsolicited links. Opening a bad link or attachment can prompt a key logger, malware that reads your keystrokes and can then capture your passwords. Bill Lublin, CEO of Century 21 Advantage Gold in Southampton, Pa., said his brokerage has a company policy to never open an unsolicited attachment via email from anyone, even if it seems to come from someone they know. They are instructed to call and verify the legitimacy before opening. Also, if you receive a link in an email, hover over it to see the full link before you click. Be particularly skeptical of shortened URLs that try to mask where the pages are going to, session panelists warned.

10. Consider protection. You may never be able to fully protect your company fully from becoming a victim of a data breach, hack, or system failure from data loss. But insurance may help protect you from financial devastation. The REALTOR Benefits® Program has begun offering a new member benefit of cyber liability insurance, specifically designed for the real estate industry in protecting against scams. The coverage extends beyond just the broker to also include client coverage. Learn more: nar.realtor/cyberpolicy

11. Use a passphrase as your password. Password breaches are a common way for hackers to gain access to accounts. “Using stronger passwords is one of your best defenses against hackers,” said Heather Ozur with the Mallen, Marshall and Ozur Group at Keller Williams in Palm Springs, Calif. “Even though it’s common sense, we see people time and again use weak passwords. That is like an open door for hackers to come in.” Avoid obvious passwords that tie strongly back to you, such as a name of a pet, child, family member, birthdays, anniversaries, phone number, or common keyboard patterns (e.g., 12345) or even reusing the same password on multiple devices. Instead, consider using a “passphrase,” which consists of a sequence of words or text. They tend to be longer and harder for hackers to guess.

Ozur provided some examples:

• Create an acronym from a sentence or sequence, such as “I think that I shall never see / a poem lovely as a tree.” That passcode translates to: lttlsns/Aplaat/ (That would take a hacker 655 million years to guess, Ozur said.)

• Consider a memorable character in a vivid setting doing an imagined action as a basis for your passcode. Use the first two letters to the main word, using this example: “Ben Franklin at the beach playing volleyball on the 4th of July in 1776.” The passcode could be translated to: BeFrBeVo741776 (That would take 98 million years for a hacker to guess, Ozur said.)

12. Use a password vault app. A password management program can help store all of your passwords from your various systems in one protected place. It’s a simple way to access your passwords and remember them, Ozur said. Look for a password management system that includes two-factor authentication or biometric access, such as via fingerprint.

13. If fraud does ever occur, act immediately. If you or your clients become a victim of a scam, time is crucial, the panelists said. “The faster you act, the better chances for recovery,” said Rymarowicz. “Notify all parties involved immediately.” In a wire fraud scam situation, the buyer should contact the bank immediately to ask for a stop, recall, or reverse on the wire. Also, fraud incidents should be reported to ic3.gov, as well as to the local FBI office.

Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine. She can be reached at mtracey@realtors.org. Follow her on Instagram and Twitter: @housingmuse

Pumpkin Spice or Poo Emoji: Your Listing Description Could be Better

Hey all, I'm working on cleaning out my inbox, and one of my fave e-newsletters had this gem, which reminded me so much of how we should all be crafting compelling LISTING DESCRIPTIONS - no matter the price point, no matter the product.

Let me know what you think...and if you have a listing that's been sitting for a minute, give it a little love, k?

And, if you like this stuff as much as I do subscribe to Ann Handley’s e-news right here. Enjoy:

Hi and non-contact high-five to you!

How do you sell two used couches upholstered in the exact, unfortunate color of the poop emoji?

That had been my challenge since last weekend, when I swapped out the two brown couches in our Maine cottage for a smart, gray, sofa-and-loveseat duo with a mid-century modern vibe. Maybe it was my imagination... but they seemed a little cocksure, that trim mid-century pair, sliding efficiently into spots once occupied by their dumpy, dung-colored cousins. (The old brown couches ended up against the far wall, looking... I don't know... forlorn? I would say they reminded me of two old dogs watching their family welcome a new pup... but that would be ridiculous, wouldn't it?)

But anyhoo... life goes on.

My son Evan wanted to put the brown couches on the curb with a "FREE" sign.

But this is a classic Marketing challenge, isn't it? How do you sell something with enthusiasm when you wouldn't be the ideal buyer for it? How do you acknowledge the in-your-face reality of that poop-emoji brown?

Here's the first ad I wrote for the listing on Facebook Marketplace:

FREE COUCHES: Two gently used brown loveseats from a smoke-free, pet-free seasonal cottage. Very comfortable, no tears or rips.

INQUIRIES: 1 (someone who asked: Will you deliver? Answer: NO.)
ROI: 0%

Let's try again.

Here's the second ad I wrote:

PUMPKIN SPICE COUCHES x2: Two upholstered gently used loveseats in a rich caramel hue. Deep, comfortable seating. Generous arm with sturdy back pillow supports. Perfect for binging Netflix or cozying up with your bestie on a chilly autumn night. From a smoke-free, pet-free seasonal cottage. Sad to see these go! $95 for the pair. These won't last!

Before I share the results... (scrollers: contain yourselves!), let's live-comment on what's happening here.

Pumpkin Spice Couch Copywriting Lessons

1. Trigger at least two senses—sight, smell, touch, taste, hearing. Invite your reader to imagine the couch with more than one sense. Not just what it looks like (sight). But what it feels like (deep seating; generous arm, sturdy on the back). And what it smells like: "Smoke-free, pet-free" is code for "doesn't stink."

2. Steer clear of clichés. Don't say "sink into this couch." Though that brown couch might be sink-in-able, the feature is implied. Less is often more. (In copywriting. In life.)

3. Tell a story. A "story" in a six-sentence Facebook ad means you invite the reader to imagine how cozy they'll be, snuggled up with their bestie or a blanket.

4. Use familiar pronouns. Not A bestie: YOUR bestie.

5. Invoke emotions. Sad to see these go reminds people of their cozy comfort; these won't last conveys urgency. To be honest, I struggled with whether to include the these won't last line... is that selling too hard...? I brought it before the equivalent of the Copywriting Supreme Court in my head. Verdict: It stays. It conveys the right tone.

6. Not free. "FREE" was a turnoff in the first ad, because FREE signals NO ONE WANTS YOU, dumpy poop-emoji couches! When I put a not-crazy price on these two, I actually got more inquires—not fewer. Why? The perceived value was higher. Humans are weird.

7. You are not your customer. I admit it: I don't like brown. Look through someone else's eyeballs: Maybe our poop-emoji brown is their pumpkin spice caramel macchiato.

8. A little humor goes a long way.

This ad is NOT overly clever, and I'll be the first to admit it. I actually thought of a million other ways to write this ad:

> the personal ad approach ("Two dignified older gentlemen seek a welcoming home...")

> a Starbucks order "Belly up to the counter: Two pumpkin spice caramel macchiatos could be coming your way!"

> the plaintive appeal for a new home written in the first-person by "Brownie the Couch" (Literally LOLing at this one)

But we're here to sell couches, not win copywriting awards for cleverness. So I used a little humor in the headline to catch attention. But not so much that the audience would suspect they're the butt of some joke.

So... what happened?

INQUIRIES: 8
ROI: A text from my son yesterday morning as he watched the poop-emoji couches being driven away in the back of a flatbed trust: "OMG Mom. I can't believe someone paid $100 for those couches."

As you're printing out MLS sheets, perusing listings, getting next week's hot new properties ready for market, keep this in mind...how would YOU want YOUR house represented? Do that. Be better. And, as always, let us know if we can help!

Fair Housing Is Ultimately Local, Like Real Estate - And It's Up to You.

Fair Housing Is Ultimately Local, Like Real Estate – National Association of REALTORS Declaration Must Trickle Down

The videotaped killing of George Floyd and inequities in pandemic relief have returned America’s history of racial discrimination back to center stage. Housing is connected to every aspect of American life, and that unfortunately has included housing discrimination.

NAR Takes Action to Build Equitable Housing Market

The National Association of REALTORS® has placed a stake in the ground on fair housing practices and the Fair Housing Act. In response to the current administration’s roll back of 2015 regulations to “affirmatively further fair housing,” NAR President Vince Malta said, “The National Association of REALTORS® is disappointed that HUD has taken this step, which significantly weakens the federal government’s commitment to the goals of the Fair Housing Act (…)The changes threatened to strip away the rule’s original civil rights purpose, as mandated by the 1968 law.“

NAR contends that an examination of inequality in America reveals that the racial wealth gap is primarily a housing wealth gap, with lower homeownership rates. This leaves an impact on minority communities that can last generations. But the housing gap story began long before the recent HUD decision.  In fact, housing discrimination began long before the 1930’s when New Deal housing programs were created. The New Deal was a great example of structural discrimination in housing that unfairly disadvantaged African American families and other people of color.

Housing Discrimination Is an Ongoing Issue

As part of the New Deal, the Federal Housing Authority, (FHA) subsidized builders who produced housing for middle- and low-income white families with the requirement the housing not be sold to African Americans. In response to this and other tactics, the Fair Housing Act of 1968 made discrimination in housing, from steering qualified black buyers from a golf course community to predatory lending, illegal.

Housing discrimination is a crime, punishable by federal fines exceeding $100k and other punitive measures, yet one that is still committed around the country even today. Last year, a New York newspaper used “paired testing” to expose the fact that Long Island real estate agents directed qualified black families away from certain suburban neighborhoods even when their financial pictures were better than those of white families, the testing process showed.

Localized Case Study – Long Island Board of Realtors

The Long Island Board of REALTORS®, (LIBOR) boosted their local commitment to fight back on those type practices in their communities. LIBOR states: “In addition to participating in a local Fair Housing Task Force, LIBOR fully supports and cooperates with state and local agencies that use qualified, trained testers to ensure real estate agents follow fair housing laws.” 

Additionally, LIBOR recently worked with Nassau County Legislator Carrie Solages to assist with his efforts in the creation of a publicly accessible database and map indicating the properties and areas in Nassau County that contain racially restrictive covenants.

National Response to Homeownership Gap

NAR worked with the Urban Institute and the National Association of Real Estate Brokers to develop a five-point framework to address the Black homeownership gap. The National Association of Real Estate Brokers, Inc. (NAREB) was founded in Tampa, Florida, in 1947 as an equal opportunity and civil rights advocacy organization for AfricanAmerican real estate professionals, consumers, and communities in America. The five-point framework plan begins with a call for local efforts:

1. Advance policy solutions at the local level

2. Tackle housing supply constraints and affordability

3. Promote an equitable and accessible housing finance system

4. Further outreach and counseling for renters and mortgage-ready millennials

5. Focus on sustainable homeownership and preservation

Homeownership is an important wealth-building source and a foundation for economic stability. Owning a home can provide a stable place to live and remove significant economic uncertainty in the form of fixed housing costs. These benefits are well documented, yet there is persistent inequality in access and attainment of homeownership across racial lines and less wealth accumulation for black households through homeownership. Systemic denial of homeownership supports the creation of an underclass in America, which impacts everyone.

The Cost of Systemic Inequity

The global management firm McKinsey and Company estimated in a recent report that by closing the racial wealth gap created by systemic racism, the U.S. GDP could be 4–6% higher by 2028. In nominal dollars, consumption and investment will cost the U.S. economy between $1 trillion and $1.5 trillion between 2019 and 2028. That is roughly $2,900–$4,300 in GDP per capita. Effectively, racism is costing white Americans $2,900–$4,300 for every man, woman and child. By missing out on 4–6% growth, white people are robbing themselves of a lot of money, job opportunities, promotions and an even higher standard of living than they have today.

NAR President Malta connected similar economic dots in the real estate industry. He said, “The viability of our 1.4 million members depends on the free, transparent and efficient transfer of property in this country, and NAR maintains that a strong, affirmative fair housing rule is vital to advancing our nation’s progress toward thriving and inclusive communities. With the pandemic’s disproportionate impact on people of color reminding us of the costs of the failure to address barriers to housing opportunity, NAR remains committed to ensuring no American is unfairly denied this fundamental right in the future.”

Urban Institute’s study, published in 2012, found that while instances of overt “door-slamming” discrimination had continued to drop, real estate agents and rental housing providers recommend and show fewer available homes and apartments to minorities than to equally qualified whites. These insidious forms of discrimination raise the costs of the housing search for minorities and restrict their housing options.

People often ask, what does the name West + Main mean?

To us, West + Main represents the balance between heart + home. It means unlimited inclusivity, unbounded by assumptions. It means that all are welcome + appreciated.

And it means that we're here to help you make your dreams come true, regardless of price point or neighborhood. 

West + Main is where Real Estate meets local artists, activists, makers + doers, and where innovation + creativity are not stifled, but supported. 

What will West + Main mean to you?
We're here to help you find out.

Thinking About Buying Real Estate Leads? Why?

Is buying real estate leads really worth it?

HousingStack is a real estate technology landscape that provides a dynamic visual of rapid changes in the sector. The HousingStack is exclusively for HW+ members. To join the HW+ community, go here.

As we’ve shown in HousingStack, there are a lot of companies focused on generating leads for real estate brokerages and agents. Apparently there are so many that some agents say they get more calls from lead sales people than from actual leads. (HousingWire)

Some agents have gone so far as to say that these leads aren’t of great quality and they’re not getting their money’s worth. I say it’s great if you actually know that and are measuring because if you don’t measure, it’s not worth doing paid lead generation anyway. 

But beyond the assertion that buying leads isn’t worth it or that one company’s leads have greater quality than another company’s leads, what I’ve tended to see out there, and spent some time corroborating this past week, is that leads are what you make of them. Don’t get me wrong, some “leads” are just crap. But, generally speaking, if you’re handed a contact with an email, name, phone number and some level of intent, it’s what you do with that contact that makes all the difference. 

The next installment of HousingStack will focus on the companies that provide solutions for managing, nurturing and converting leads. And since the installment about lead generation stirred up some interesting debate, I decided to drop this article in the middle of it all. 

The basic facts

Based on survey data from the National Association of Realtors in 2019, 53% of buyers used someone either referred to them or whom they had worked with in the past.

Given that survey data, let’s say that roughly half of all buyers and sellers are up for grabs in a given year, or about 5 million people. For those people, there are many ways that they find an agent and make a decision. The NAR data also shows that about 75% of all buyers and sellers spoke to only one agent in their selection process. If you’re great at immediately following up, it’s good news. If not…

Studies show that converting leads (especially real estate leads) is about rapid follow-up. So much so that if you receive a lead and follow-up within the first five minutes, your chances of reaching the prospect are as much as 900% greater than a delay of ten or more minutes, according to a study by the Sloan School of Management at MIT. 

Zillow’s own research shows that if you follow-up within two minutes, you have nearly a 400% greater chance of reaching your prospect than if you wait even ten minutes. So imagine if you purchase “leads” that are already older than that! You’re already in a hole in terms of being able to convert. 

All of these figures are about the “lead” actually answering the phone, meaning they show that they’re willing to talk to you. The typical maximum response rate on those outbound calls to leads that just filled in a form (someone actually answering the phone) is about 40%. What about the 60% of the time that they don’t? Now the magic numbers are eight to 10.

It generally takes between eight to 10 outreaches to finally get someone to talk to you if you haven’t reached that person yet. Most agents, and generally most sales people, stop at three tries. We can’t forget that even if they answer, that doesn’t mean you converted them to anything, it just means that they’re willing to talk to you. Now the real work happens. 

Across the industry from agents to brokerages the consensus seems to be a conversion rate of between 2% and 5% of online “leads.” Truthfully, from the data I’ve seen, that conversion rate is actually from form-fill to lead. In other words, someone filled out a form, was then contacted and became an actual lead or opportunity to work with rather than just a name in a database. Realistically, the conversion rate from form fill to actual business is closer to about 0.5% to 1.5%. To be clear, that means that you need between 70 and 200 form-fills to generate a commission.

What does this have to do with buying leads?

Many of the lead providers handle the first part for brokerages and agents; attracting visitors, converting them into known contacts (leads) and finding out a little more about them. Basically, here’s a person with a name, email, phone number and in an area you say you service. In some cases, they’ll provide additional information such as the property attributes, price range, specific school they want their kids to attend, whether or not they’re pre-qualified, etc. This can be a great way to fill the top of the funnel but it’s rare that these are ready to close. There’s work to be done. 

Depending on the provider, they may deliver a lead and require the agent to “accept” the lead in a certain timeframe. From there it’s up to the agent to follow up, work the lead to an opportunity and close the opportunity. In most cases, the first goal is to get the person to sign either a buyer’s agency agreement or a listing agreement. Then there’s the real work to get to the commission. 

I mentioned previously that how quickly you follow up is crucial. I didn’t mention that it’s estimated that 60% of leads that agents receive/generate are never followed up with. So if you paid for those leads, it’s like lighting money on fire. But it’s even worse if you’re purchasing “stale” leads, meaning leads that are already hours or even days old. Another crucial statistic I didn’t mention is that roughly 30% of call-in leads (the best ones you can get) aren’t answered. 

3 questions you need to answer if you pay for lead generation services

If you do decide to pay for lead-generation services to fill your funnel, these are three crucial questions you should answer:

1. How “fresh” are the leads? Meaning, are you receiving them immediately after they fill in a form, for example? Or are they sitting around and then sent over in a batch? It makes a massive difference!

2. How reliable is the lead information? Is there valid contact information including a phone number? Do you have enough to start a conversation with the person? Do you know the person’s expectations about being contacted?

3. How “ready” are you? If you started receiving leads tomorrow, would you be able to follow-up instantly? Do you have a system that will notify you? Do you have a standard set of questions? Are you ready to reach out multiple times if necessary?

If you’re numbers-driven, process-driven, follow schedules and have no hesitation with outbound calling, then buying leads to fill your funnel (through the right partner) can be a great way for you to generate consistent business.

You’ll be able to work out the numbers in terms of how many you need to get into the funnel to create each opportunity and how many opportunities turn into commissions. Then it comes down to math. Number of leads, specific price points, time you’re willing/able to put in, out pops your magic number. This same math applies to generating your own leads through your website, Google Ads, Facebook or anywhere else. It’s just that you need to take on a lot more responsibility. 

If you’re none of those things or are hesitant about any of them, then it doesn’t mean you shouldn’t purchase leads. But it might mean that you need to focus on specific types of providers. For example, those that handle generation, qualification, warm-up and then hand-off of a client-ready lead. These people will typically require less of your up-front work in return for more of your money usually in the form of a commission split or referral fee. What that means is you’re paying them to do the stuff you don’t want to do or don’t have time to do. 

So, what to do?

In my experience, when I ask questions about visitors, conversion rates, follow-up times and general ROI metrics, most times I get the answer “I don’t know.” Regardless of whether you’re purchasing leads from a third party or generating your own leads, measuring things is simply imperative. Everyone knows this, but few seem to actually follow through.

I did a survey of thousands of agents and hundreds of brokerages a number of years ago about the expectations they had when it came to purchasing leads. Two interesting things came out of that survey that have stuck with me. When asking brokerages what they thought agents wanted, the overwhelming response was “more leads.” When asking agents what they want, the answer was “fewer leads, higher quality.” 

The net of this is, before starting down any path related to “leads,” make sure you know what your goal is. More leads? Or quality leads? And make sure you have defined how you’re going to measure that. What’s a lead? What does quality look like? What effort are you willing to and capable of putting in? Do you have the systems in place to help you manage, measure and hold yourself and others accountable? I don’t simply mean technology, I mean a systematic approach to this. Starting off by answering these questions will set you up for success out of the gate. 

All of this won’t change the “garbage in garbage out” problem. Some companies will just provide contacts that aren’t really leads. But having a structured approach enables you to immediately determine that and change course. 

There are many organizations that are very successful at leveraging third-party lead sources. Many of them are real estate teams and the reason they’re successful is because they started out knowing what they were trying to achieve, they have the internal systems and processes in place, they are relentless at measuring everything and, perhaps most importantly, they have the right division of labor to handle the process. 

Plenty of promises about leads never actually materialize. But you have to ask yourself…”is it them or is it me?”

Setting Seller Expectations: Are cities really seeing an exodus?

Are cities really seeing an exodus? Zillow says urban areas have more in common with suburbs than you think

While we know people are migrating out of urban areas to seek more room in the suburbs, these two different kinds of housing markets are showing similar trends since COVID-19 shut down much of the country. (HousingWire)

The exceptions are the two priciest metros in the U.S. — Manhattan and San Francisco. In these two areas, inventory is nearly double what it was last year, as homes are staying on the market twice as long as last year.

Otherwise, according to Zillow, urban housing markets are keeping pace with the booming suburbs.

“When you step back and look at the bigger picture, it seems that those writing off urban real estate have done so prematurely,” said Zillow Economist Jeff Tucker in a statement. “There is some localized evidence of a softer urban market, particularly in the highest-priced markets, San Francisco and Manhattan, and an eye-catching divergence in sale prices, but no evidence of a widespread flight to suburban pastures.”

Both urban and suburban areas had a rate of newly pending sales picking up since February, then in early Spring, when COVID-19 hit, the slowdown in these areas was similar, too.

However, the difference in price growth is what sets the two apart. While year-over-year growth in median sale price has slowed in both, it showed through in urban areas a little stronger.

In urban areas, median home price growth is down 9.3 percentage points from pre-pandemic to the end of June, but down just 3.1 percentage points in the suburbs.

The coastal exodus is a huge part of this, as many are seeking larger living spaces after working from home or being cooped up with family in smaller dwellings.

“The primary issue in much of the country is the inventory drought, both urban and suburban, that’s failing to meet the surprisingly robust demand from buyers eager to lock in record-low mortgage rates,” Tucker said.

PODCAST: Scaling a Real Estate Business with Erin Bradley + Stacie Staub

SCALING A REAL ESTATE BUSINESS, WITH STACIE STAUB

Erin Bradley chats with Stacie Staub on the Pursuing Freedom Podcast  
         
REAL ESTATE BUSINESS: WHAT YOU WILL LEARN:

• Stacie’s perspective on when is the right time to scale your real estate business

• How to move past the debilitating fear spots that we put in front of ourselves

• Systems and processes that should be put in place early on

• How to find alternatives to the parts of your business that you don’t enjoy doing

• How and when to delegate

• What you can do to be more consistent and find a solution for predictable growth

• How to eliminate time-sucks and get organized

• Stacie’s approach to the hiring process

Growth and Scale That You Can Enjoy

Stacie Staub is an OG Pursuing Freedom guest and one of my oldest friends in the real estate business! She is the co-founder of West + Main Homes, an incredible brokerage based in Colorado. And she is also the founder of Genuine Hustle, a conference series designed around real-life teaching and learning in the real estate space. I wanted to bring Stacie back on the show to talk about everything that goes into scaling a real estate business. In this episode, Stacie helps us understand when is the best time, and what activities should be delegated in the process. There are so many angles to approach this process, so Stacie’s input will help us do it in a way that we enjoy, that we are naturally good at, and that will ultimately result in moving the needle.

Put a System in Place From Day-One

So many people in the real estate business have the potential to do more, but they are being held back by their own systems (or lack thereof) and limiting beliefs! That is one of the reasons I am so passionate about the mechanics behind scaling your business—it doesn’t have to be a miserable headache. From day one, you have to think about what you want your business to look like and figure out how you are going to manage it along the way. Stacie has seen agents wait until they have 12 deals under contract and their hair is on fire before hiring a TC. Then they don’t even have time to train the TC on how they want their business to run or where they need help. You need to put a system in place when things are moving slowly, you are ready for any opportunities that come your way. Otherwise, you will have a difficult time growing your business.

Get Out of Your Own Way

Top producers in the real estate business are top producers because they are taking care of their clients while building their business. It doesn’t have to be a trade-off on that front, and it doesn’t have to be a trade-off in your personal life either. A lot of the day-to-day can be delegated as your business grows so you can focus on revenue-generating activities that only you can do! Think about the things you hate doing and find alternatives that play to your strengths. Or hire people that can take them off your plate. It is difficult to come to this realization on your own, but once you get out of your own way, there is no limit on what you can accomplish.

About Stacie Staub

Founder and owner of West + Main Homes, Stacie Staub is a Colorado-based Real Estate expert with over 15 years of experience in both residential sales and industry marketing. She is also the conference-loving junkie behind Genuine Hustle, which is fast becoming one of the most popular and in-demand formats for real-life teaching and learning in the Real Estate space. When Stacie isn’t helping her team reach their business goals, you might find her on stage sharing her best tips and tools, or appearing as a guest on both local and national webinars, radio shows, podcasts, and conferences. She also combines her love of Real Estate with her passion for teaching in order to help other agents to grow their business in an organic, genuine way.

How to Connect With Stacie Staub:

Balanced Growth Course:

• Website: https://pursuingfreedom.thinkific.com/courses/balanced-growth

Additional Resources:

• Time Tracker

• 5-Step Guide to More Referrals

If you're a Realtor who is exploring new career opportunities, or if you think that Real Estate might be a good fit for you, Contact Us or Email Us.

Hello. We are hiring.

People often ask, what does the name West + Main mean?

To us, West + Main represents the balance between heart + home. It means unlimited inclusivity, unbounded by assumptions. It means that all are welcome + appreciated.

And it means that we're here to help you make your dreams come true, regardless of price point or neighborhood. 

West + Main is where Real Estate meets local artists, activists, makers + doers, and where innovation + creativity are not stifled, but supported. 

What will West + Main mean to you?
We're here to help you find out.

If you're a Realtor who is exploring new career opportunities, or if you think that Real Estate might be a good fit for you, Contact Us or Email Us.

+ Competitive commission splits.

When we were creating West + Main's business model, we put a lot of thought into things like splits, fees, and inclusions. We decided to implement the Agent Compensation Plan that allowed our agents to keep the most money possible in their pockets. So, you control not only your costs + expenses, but also your your sales goals -- and we are here to help you achieve and exceed whatever level of production you are aiming for.

Our competitive commission splits reset every year on your West + Main Anniversary, with escalated splits based on production.

+ Full-service brokerage support.

At West + Main, we truly believe that every Realtor is capable of success in this industry -- and we also know that "success" might look very different to every single agent in our office. So, we don't make a bunch of empty promises or have unreasonable expectations, but we do have a commitment to help you get wherever you are trying to go with your sales career. Our goal is to provide our team with the support, tools, skills and knowledge they need to grow in this business. 

 + Retail storefront office space.

West + Main's sunny, bright + casual storefronts are located in busy, popular retail environments, surrounded by locally-owned shopped + restaurants, with pretty much non-stop drive- and walk-by traffic. Part boutique vibe, part art gallery, we're inspired by the spaces we get to work in, and we hope that our agents and their clients are, too. You won't find rows of desks, cubicles, or landlines. No walls full of filing cabinets, stacks of office manuals or outdated marketing collateral. We're almost 100% paperless, and we're absolutely 100% deskless. There's always a comfortable place to work, meet, host, learn, create, and collaborate -- everything you need to do the daily work of Real Estate.

+ Broker-provided client introductions.

Our website is a lead machine, and each of our agents has their own website which is easily customized to reflect their specialties, niches, and personality. It's also Search Engine Optimized, has one of the best CRM's in our industry -- and it's all included in our low monthly Roster Fee. We also invest a pretty big chunk of our marketing budget toward the generation of new website traffic - which eventually converts into opportunities for our agents to meet new people, to form and nurture relationships, and to help folks make smart Real Estate decisions and moves.

+ Beautiful marketing.

Not every brokerage has an experienced team of content writers, graphic designers, bloggers and creatives behind the wheel - ours does, because providing our amazing agents and their clients with a unique, boutique experience is one of our main priorities. Sure, we also have decades of Real Estate experience, we love contracts and coaching, and we are proud to say that our team of Realtors is the BEST! But, at the heart of West + Main, you'll find stunning, innovative, and constantly evolving marketing campaigns and collateral that truly represent our agents, their expertise, their love for the home hunt, and their ability to make deals happen for their clients. Our philosophy: Real Estate marketing doesn't have to be all stock photos of keys being handed over or fake people opening doors. In fact, our listing presentation is so beautiful, it's right at home on a styled coffee table. Our postcards are right at home in a frame on the mantle. And our greeting cards, stickers, phone wallets, notebooks, neighborhood guides, hats, camping mugs, and more are stocked in the office and ready for our agents to grab and use - and they are all included in our Roster Fee. We want our brand to walk out the door, and thanks to our agents, it's quickly become well-known and respected in national Real Estate spaces.

+ We provide the best, most actually usable technology package.

What does this mean? We're not going to charge you crazy high monthly fees or splits for technology you'll never use. We love bright and shiny toys as much as the next brokerage, but after a couple decades in the business, we know exactly what the agents that we want to work with need to run their business, in an innovative and set-and-forget it way. During your onboarding session, you'll learn how to use each of the 7 platforms that we provide, and how to optimize your time on them to help your business run seamlessly and (almost) effortlessly. Have tools that you already love? Great! Keep on using those, too!

Meet our industry technology partners:

* Real Estate Webmasters - REW provides West + Main's websites, CRMs, blog + backend support. West + Main is committed to providing the latest and best in Real Estate web presence for both our agents and their clients, and REW makes sure we are at the top of the game with automatic updates.

* Mailchimp - Our weekly e-newsletter is created in-house and distributed to out agents using this simple, beautiful platform. Once you upload your contacts into your agent-managed account, all you have to do is hit SEND. Want to make it more "you"? Great! You can do that, too!

* RealSatisfied - How do you know who your biggest fans are? RealSatisfied helps you find the clients who are willing to go the extra mile for you - your biggest brand advocates, your biggest fans, and what they love about you. And we give you the tools to share their stories with everyone, everywhere.

* When I Work - West + Main agents have the opportunity (never an obligation) to work Floor Time in both our Applewood and RiNo offices. When I Work makes it easy to sign up for, drop, and trade floor shifts with the click of an app!

* G-Suite Apps - We provide the most professional email management experience for our agents with a private @westandmainhomes.com email account. Manage, archive and experience the highest quality and most secure emails, calendars, and file storage available at no additional cost to you.

* Slack - Welcome to the future of internal communication. Our team uses Slack to chat, pass files, post notifications, stay coordinated, and more. You'll never have to see another Reply All company email once you've entered the world of Slack at West + Main -- you can direct message individuals or small groups, create private channels, ask for or offer help - all with the speed of an app. Once you have Slack, you'll never go back (to internal email).

* Brokermint - Brokermint is everything - transaction file management, electronic signing, offer management, commission tracking - everything you have wanted your current system to do - with a beautiful User Interface and easy-to-use system that will make your files look as beautiful as files can possible look - all while ensuring industry compliance. Trust us, you'll love it.

+ Ongoing training + education. 

West + Main Homes offers a great mix of education, training, and hands-on learning experiences, all designed to empower Realtors with the knowledge, understanding, and business-building habits that will bring success in our industry. The doors are always open, please let us know if you would like to join us, if you have any questions, or if you have a valuable class or opportunity that you would like to offer to our team. Check out our class + events schedule.

+ Collaborative team environment.

West + Main Homes hires for culture rather than production -- what exactly does this mean? We love every single person that we are lucky enough to work with, and we never want that to not be true. Our Realtors are generous, open, and collaborative. New agents have the opportunity to learn from those who are more established by not only learning and growing together in a classroom environment, but also in the real Real Estate world - from shadowing during Open Houses and client meetings, to training on-the-fly by covering showings and inspections. And, busier producers have the help they need, right on our roster! Interested in joining or leading a team, creating a mentorship relationship, or just looking for more of a hands-on way to start your Real Estate career? Let's collaborate.

+ Ownership + growth opportunities available.

 At every other brokerage where we had ever worked before opening West + Main Homes, selling lots of homes seemed to be the finish line. No room for growth, no opportunities to try something new - it seemed like, if you were good at selling homes, then that was it. So, from the day we opened our doors, we wanted to make sure that great agents not only found a place where they could sell as many homes as they wanted with the support that then needed, but to also think longer-term...what about a career path? Retirement plans? The ability to take a vacation and truly have your business covered, ever? How about leading a team of successful agents and helping others thrive in our industry? Or opening an office in a neighborhood where you see potential, whether it's in Colorado, Oklahoma, Oregon, or elsewhere? Because we are independently owned and operated, we are able to say YES, to offer chances that other companies might not be so willing to provide, to support your Real Estate business even if it doesn't look like everyone else thinks it should. Have a dream? We'd love to hear all about it.

Buy Before You Sell with West + Main and Knock

Just yesterday, it felt like everyone was offering a new and better way to do real estate without the help of an agent. Sell your home yourself. Self-tour listings. Buy your home from a corporation. Sell your home to a corporation. Today we’re unlocking the best of both worlds. 

The most popular trend of the last decade was selling a home on the private market to iBuyers for instant cash. No showings or repairs or hassle. And while convenience and speed have proven to be popular touchpoints, what if they were realized on the public markets instead?

What if you could skip the showings, but realize your upside from making sought-after improvements that command top dollar by listing the home all after buying the next one?

Today we’re proud to announce that West + Main Homes is partnering exclusively with Knock to expand the Knock Home Swap™ program to Denver and turn this dream into a reality. Effective immediately, our agents are a small dedicated group who can offer this in Colorado. 

Solving a complicated problem

One of the most challenging negotiations in the traditional real estate market is purchasing the next home when the sale of the current home is a necessary condition for closing. It’s what causes the most stress about the process - because it's the most common scenario.  

It’s not only stressful for our client; it creates a wave of uncertainty for other parties in related transactions, including anyone who is daisy-chained in contingencies further down the line. 

Most infuriating about the whole thing is the illiquidity of the equity in the existing home. After years of refreshing their Zestimate online every day to see their appreciation - homeowners are disappointed to find that getting access to those funds is nearly impossible without a sale first.

What if instead of waiting to buy until selling, it made more sense waiting to sell until buying?

With a home swap, clients turn equity into an advantage and flip this conundrum on its head. 

A partner who compliments our strengths

With the expertise of West + Main real estate agents powered by Knock - clients can now win competitive offer situations for their next home and get the most money for the current one.

Not only will Knock issue a fully-underwritten mortgage pre-approval for buying the next house, it’s issued without the unattractive contingency of having to sell the existing home first. 

In order to help our clients get the highest and best terms for their existing home later, Knock will lend up to $25,000 for home improvements and six months of payments interest-free.

This allows agents to write more attractive purchase offers for the next home, and it opens a window to put together the most effective marketing plan for selling the existing home (after making improvements and becoming vacant when it’s easier to advertise and show).

After evaluating dozens of partners for an initiative like this, we couldn’t be more excited to launch this endeavor with Knock officially. The best collaborations work towards a common goal by leaning in on our strengths to close the gap on an opportunity that didn’t exist alone.

Better together

We’re continuing to expand partnerships with forward-thinking companies who work closely with the brokerage community to solve the hardest problems facing consumers in the real estate market and deliver experiences that excite and delight the community along the way:

• Guest House: Staging a Home Furnishing Pop-Up Shop in an Active Listing

• The Conscious Merchant: Retail Partnership in our Louisville Main St. Office

• By Appointment Only: Collaborative Art Show Gallery in our Denver RiNo Office

We can’t wait to show you what’s next!

Staging a Home Furnishing Pop-Up Shop in an Active Listing

Imagine walking into a home for sale where some of the most exciting items in the space were made by local artisans or manufacturers, and could be purchased on the spot. 

Well, you don’t have to imagine it anymore because that’s what Guest House does. 

But what Guest House is, well, that’s a different story. It’s the velvet rope and the red carpet. It's the producer and the artist. They take the most beautiful pieces of furniture and artwork then assemble them in a physical and digital presentation like nothing you’ve ever seen before. 

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3527 W 45th Ave | Sold by Anna Domenico | Guest House

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Admit it. You’ve thought about putting a six pack of a local microbrew on a kitchen counter for a photo shoot. I have too. But that’s not what we’re talking about here. Guest House is a staging company that creates beautiful spaces in houses, photographs the home, then creates digital marketing and in-person event experiences that get attention and drive more sales.

And while the presentation of the listing is worth highlighting, what’s interesting is how much product is moved when featured this way. Of course the house sells faster when it's tastefully appointed, but so do the goods inside when they’re easy to buy - with just the click of a button.

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3527 W 45th Ave | Staged by Guest House | West + Main Homes

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Our team met founder, Alex Ryden, last summer on a tour of staged properties in Denver. Upon entering a Guest House listing it becomes immediately apparent that every detail was thoughtfully considered. I don’t know much about furnishing homes, but I know when I walk inside of one I feel comfortable and interested in. That’s what happens inside of these houses. 

If the custom aesthetic alone weren’t enough to sell product, then what about the idea that you could extend the physical showrooms of craftspeople into homes for sale to help drive traffic in person and online? It’s a simple idea at the heart of it, but the execution takes special care. 

When consumers are looking for new and engaging ways to explore homes, Guest House delivers on all fronts. Not only is every house staged to order, but the momentum of every new installation is also multiplied by their followers and the reach of the makers that are featured.

The small business flywheel to keep spinning

A few weeks ago, we announced a collaboration with locally owned eco-conscious home goods store, The Conscious Merchant, now with a foothold in our Louisville Main Street office. The inception of the brokerage revolved around finding cool ways to elevate other businesses. 

That’s why West + Main Homes jumped to develop a closer relationship with Guest House and incentivize our agents to onboard more listings onto the platform. The concept works in harmony with how we use our physical offices to feature local artists on a rotating basis ever since the beginning. And while the pandemic has slowed events down, the community still wants safe ways to explore spaces and buy art from people they like, even if it’s online. 

We have a wave of new listings using the service this summer and couldn’t be more proud to work with an aligned company so tightly with ours. To the next generation of listing ads.

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Greg Fischer

Tech | Managing Broker

(720) 605-3325

✉ EMAIL

Are Your Clients Committed to You? If You’re Not Sure, Don’t Write the Contract.

In this season of low inventory, high buyer demand, unheard of low interest rates, and COVID regulations…your job as a Realtor certainly hasn’t gotten easier, I’m sure you’ll agree.

Sure, it’s great to have online leads pouring in as people have increased pressure placed on their timelines and life goals. Your sphere is hot to move, and new Actives indicate Pending Status almost before you even have a chance to pull up the listing on your new Matrix app. From the outside, it probably looks to consumers like we in the Real Estate industry are riding out the pandemic like it’s smooth sailing on a sunny day, but if you’ve listed a property or submitted an offer lately, you know that it can feel much more like riding out a dark storm in a rowboat with one paddle.

Of course, there are the usual challenges and struggles…timing your listing to take advantage of the hyper-local market, watching the Coming Soons constantly, and working 24/7 to avoid missing anything…but the current global environment is really piling it on in addition.

• You have to be even more aware and organized than usual as a professional today.

• It’s up to you to ensure that your clients are following CDC recommendations and State requirements, which change constantly.

• You have to manage tight scheduling issues that sometimes mean being limited to a 15-minute showing window.

• You have to be ready to write competitive offers, quickly develop rapport with co-op agents, and prepare your clients for possible rejection.

• And you have to do it all while wearing masks + gloves on 100 degree days.

First of all, thank you for being the diligent, ethical and well-meaning professional that I am sure you are.

I also wanted to take a minute to talk about a trend I’m seeing as an Employing Broker that I have not experienced in almost 20 years in the business, and ways to avoid a probably stressful, potentially litigious situation which seems to be coming up more + more often: Client/Agent disputes.

Over the last several weeks, I’ve heard about from other Employing Brokers or advised on situations that seem highly unlikely, but, because they are happening more and more often, are worth addressing - situations where Clients terminate Exclusive Agreements while in the middle of a transaction, or ask that a Contract be re-assigned to another Agent because the relationship has devolved.

What the heck, y’all?

I have a couple theories about why this is more common than ever before:

Because of the COVID environment:

Are you signing Exclusives with people that you haven’t really had the chance to get to know because of time/space/distancing limitations? In a non-COVID world, the process is fairly intentional + systematic, and it works. Whether you managed to convert an online lead or received a referral from a friend, fan or family member, you likely arrange to meet at the office, or at a coffee shop…maybe even cocktails or a long lunch. You get to know one another, feel out the connection, decide if the vibe works. Then, it’s a mutual agreement party - they want to work with you, you want to help them make their Real Estate goals come true, thinking that maybe you’ll even become friends or at least enjoy the next 90-120 days of fairly constant interaction.

Usually, you get to tighten those bonds as you drive around together looking at homes, or pore over comps and prep their home for sale. You might text, talk, or spend time together several times a day while going through this process.

How different does this process look for you now? Is it more rushed, with the pressure of rising COVID numbers or fears of another shutdown? Is it more limited, because you have to stay at least 6 feet apart, and maybe you’ve never even seen each other’s faces unmasked? Are you still getting to know your clients + create a true bond, or are you just rushing to get Under Contract?

No judgement, by the way…I’m truly wondering if these barriers are changing your process, and how those changes might be impacting the strength of your Exclusive Agreements.

Because of low interest rates + low inventory:

Even though Sellers have been in the driving seat for many years (maybe even for as long as you’ve been in the business) there is a new level of desperation and urgency that has a different scent. And it sometimes…stinks.

Because Buyer demand seems to be increasing along with major life changes, listings that show well online and are priced appropriately are seeing unprecedented levels of activity. Over the last couple of weekends we have seen unique properties receive hundreds of showing requests. Listing agent phones blow up with questions and demands for information. The pressure is on Buyer agents to score their clients a showing appointment, and we’re seeing offers submitted prior to property viewings even beginning, contingent on Buyers being able to walk through their future home.

In addition, with interest rates consistently dropping, Buyers and their lenders are anxious to find the perfect place and win a contract before their rate lock expires.

What does this mean for you as an Agent? On the Buy side, the challenges are obvious. But being a Listing Agent right now isn’t all rainbows + unicorns, either. It’s up to YOU to vet the offers, to help your Sellers decide how they would like them presented, and to ultimately assist in choosing the offer that makes the sale smooth and hopefully has the best chance of making it to the closing table without an abundance of hassle.

Are you able to keep your clients satisfied throughout these complicated transactions? Are you figuring out the best style + pace of communication for each person and their situation? And did you get to know them well enough prior to the Contract stage in order to do so?

In some of the situations that I mentioned earlier, I seriously doubt it. When a Client/Agent relationship devolves to the point that I’m brought in…it’s usually pretty ugly. Whether mistakes were made, miscommunication occurred, or emotions are just so high and the stakes so big that trust is broken, it’s rarely as simple as just canceling an Exclusive.

Once you’re Under Contract, this becomes a very complex and expensive problem for everyone.

So, how do you avoid it?

No matter what role you are in, take deep breaths. Move a little more slowly. Control the process. You’re the expert here, so you might as well own it - because you definitely own the liability, every minute, every move, every conversation, every document, every transaction. Read and explain everything twice, sign once.

Don’t let other agents bully you into rushing your clients, into violating due process, or into breaking Clear Cooperation policies. Do what you say you’re going to do, and put your clients and their protection first, every time.

Put a ring on it. When you ask someone to sign an Exclusive Agreement, you’re asking them to trust you more than they trust Google, rely on you to navigate the tumultuous world that is Real Estate today, negotiate on their behalf, and get them home. If you can’t picture yourself handing them the keys on Closing Day, and taking a happy photo with them in that silly Title Company photo opp frame, or if your gut is telling you no, then let them go before you go any further, refer them out, or nicely tell them you don’t think you’re a good fit for their needs.

Double down on communication. Follow up important conversations with a confirmation email. Facetime or meet instead of calling if you can, so that you can not only hear what your client is saying, but you’ll see their body language and facial expressions, and ensure that you’re both paying 100% attention to the conversation, and have greater recognition of understanding.

As a Buyer Agent, take the time to develop rapport with the Listing Agent you’re trying to work with to put a deal together. Communicate clearly. Promise to make the transaction as smooth as possible - and deliver on that promise. Most of all, offer some extra space + grace with every interaction…because they’re just as stressed out as you are.

As a Listing Agent, commit the time needed to completely and thoroughly evaluate the entire offer and its players - not only the buyer and lender, but also their agent - and their relationship with their clients. It’s OK to ask how long they’ve been working with this client, how many homes they have seen, how many other offers they have written and terminated, and even how they met and how well they know them. Sure, any kind of relationship can go sideways, but it’s more likely to happen if the answers to those questions are “I just met them this morning, they fired two agents before finding me on the internet to request this showing, this is the only house we’ve looked at, and we haven’t even signed an Exclusive yet.”

Some red flags in there, yes?

Our work is always important - we’re helping people with what is likely the biggest investment of their lives, as well as the roof over their heads. But right now, it feels more important than ever to do it right, every time.

Commit to serving your clients at your highest level, every time - or don’t ask them to commit to you in the first place, and for goodness sake, don’t submit a contract for them without being sure that you’re all in it together, for the duration.

How COVID-19 has disproportionately impacted communities of color

What it means for the future of the housing industry

At the beginning of COVID-19, people were calling the virus the “great equalizer” because the virus was expected to equally affect people regardless of race. However, the opposite quickly became apparent as communities of color have been disproportionately and overwhelmingly affected. 

by Kristin Messerli for Housing Wire

Recent data shows that death rates among Black and African Americans are two to three times higher than white Americans, and they are hospitalized at twice the rate. In diverse areas like Chicago and Louisiana, for instance, Black Americans represent 70% of the COVID-related deaths, while making up only about 30% of the population. 

In a market that is flourishing, it can sometimes be difficult to see the impending impact this disparity may have on the housing industry. Lenders are experiencing record-high volume with purchases on par with last year’s numbers. And Millennials seem to be setting their sights on homeownership, as I reported in a recent article.

Yet, unlike previous economic recessions, the demographics that are hit the hardest are also a much bigger portion of the purchase market. Millennials, who now make up the largest cohort of homebuyers, are also nearly half from communities of color. 

The pandemic’s resulting economic recession is likely to impact more than homeownership rates and place added pressure on affordable housing. For a generation that has raised the bar for “ethical consumption” with major corporations across the world, they will choose to work with companies who have supported communities hit the hardest in this crisis.

Millennials entered adulthood during or immediately after the Financial Crisis of 2008, and they remember vividly the disproportionate impact that had on communities of color. Black Americans and Latinx lost 25% of their wealth from 2004-2010, while whites lost only 1%. 

This crisis is not entirely on the shoulders of the housing industry, but it is so deeply intertwined that a response is crucial to future success in this market. When the dust settles and the economic damage is clear, how will this generation think of our industry? 

The intersection between health and housing

Health disparities, such as that of COVID-19, are influenced by many factors, but research shows a strong correlation with housing opportunities, particularly quality and location. 

Pew Research states the median wealth for Black Americans is ten times lower than white Americans, and their homeownership rate remains at a steady 30% below their white counterparts. This wealth gap places many communities of color in low- to moderate-income neighborhoods that often consist of older housing stock and an absence of necessary amenities. 

According to the World Health Organization, the physical condition of homes has major implications for people’s health. People living in older manufactured homes suffer more frequently from respiratory conditions such as asthma and cardiovascular disease due to heating and cooling issues, lead and mold exposure, and allergens to name a few. 

Black and African Americans are three times more likely to die of asthma-related deaths, and are 75% more likely to live near a polluting facility, such as a factory. In addition, many of the lower-income neighborhoods are located far from healthy grocery stores, transportation, and healthcare resources, making COVID-19 testing also less accessible if at all.  

All of these health determinants are a direct result of socioeconomic status, which is inextricably linked to the housing and wealth divide that began with our industry’s history of housing segregation and redlining. 

As a review, in 1934, the Federal Housing Administration began subsidizing subdivisions built for white families, while implementing the “redlining” policy to prevent Black Americans from living in or near those neighborhoods. From 1934-1968, 98% of home loans were given to white families, which resulted in decades of home equity appreciation and generational transfer of wealth. The neighborhoods were divided with the strategic placement of highways, rivers, and train tracks to prevent Black Americans from entering white neighborhoods. 

With the rising cost of housing and other layers of discrimination, many families of color haven’t been able to catch up, remaining in neglected neighborhoods, far from access to food and healthcare. 

As difficult as it is to think about, COVID-19 shines a huge spotlight on the racial divide in housing and its devastating consequences. So while we celebrate the record commissions and unphased purchase volume, the communities that were withheld access to quality housing and affordable credit are quite literally dying around us. 

So, what now? 

Examining our inequities doesn’t mean that white people today must feel shame or guilt for what others have done before us, nor does it mean we must abandon an abundant pipeline of leads.

But if we claim to be one community, in which white and black are equal in value, those of us who have benefited from the inequities should also look for opportunities to rebuild together. 

There are many housing policies that can benefit this effort, which often remain only discussed in nonprofit meetings and policy centers. The Surgeon General recommends that a portion of the Community Reinvestment Act (CRA) funding get redirected to support the development of safe and healthy homes. And there are many nonprofits that also support this effort, such as Rebuilding Together and Habitat for Humanity. 

Community Land Trusts (CLTs) have also been proven to significantly improve wealth creation in families of color with shared equity homeownership, as well as reduce displacement and retain rental units in neighborhoods undergoing gentrification.

As a more immediate measure, we can consider donating to nonprofits and supporting businesses in areas with food deserts and who may be more vulnerable to the recession. 

If we want equality in America, we need to recognize the historic inequities, support housing policies that promote equality and do our part on an individual and company-level to close the housing divide. 

Growing fast? Here's what this indie brokerage learned when exploring franchise options

While navigating meetings with countless brands, from long-established companies to newly minted disruptors, this indie brokerage learned a few lessons about growth — and a thing or two about its own values.

Note: this piece was originally published by Inman News.

BY STACIE STAUB

Having taken exploratory meetings with over a dozen real estate franchisors over the last couple of years, and then an even deeper dive with several, the process was both interesting and informative. At the same time, it was completely disenchanting.

We talked to countless brands — from long-established companies to new-to-the-scene disruptors to venture-backed firms hot for mergers and acquisitions. And, I will say, it was not a waste of time.

We left no stone unturned in our mission to unravel the tightly wound map of the real estate world. We were open to all sorts of business models, possible partnerships, collaboration and growth.

How Does an Indie Grow?

At the start of this exploratory journey, West + Main was sort of a cute baby brokerage quickly turning into a toddler — and as you know, those terrible twos are no joke. We were growing almost faster than we could keep up with. Our calendars were packed with interview requests and onboarding sessions, all without any kind of active or formal recruiting.

My co-founder Madeline Linder and I knew that we were onto something, but even we weren’t sure what the magic formula we had created from scratch actually consisted of.

There were moments when it seemed overwhelming and exhilarating all in the same breath, and yet, it felt — easy. It’s actually really surprisingly easy to make good decisions. To attract agents that love working with us. To listen to our guts. To do what feels right and to empower our agents to do the same. To make sure that people are heard. To listen more than we talk. To promote from within and to deliver on promises.

I think one of the most troubling myths in any kind of business is that you have to push through the resistance to get to the next step. We’ve always found that if there’s resistance, there’s always another path to take and another way to grow.

At first, we started hearing from the big boxes, the good ol’ boys who thought maybe they could buy the little ladies a drink and mansplain how hard this business is for “working moms like us.”

Those conversations didn’t go far. Madeline and I opened an indie (independently owned and operated) agency because we had little interest in what the traditional real estate brokerages have to offer. We’re both very design-centric, creative-minded people, and we need to maintain our passion for, and freedom to, create and innovate in order to balance out the real estate side of our business — namely, the stress of contracts, regulations, compliance and sales.

But, we were never hard-set against joining a bigger operation. It’s pretty easy to feel like you’re alone on Indie Island, and we also know that exit options are fairly limited. So, when other real estate franchisors started calling, we always bothered to answer with genuine curiosity and interest, as well as an open mind to all possibilities. 

In the meantime, while we navigated all of these meetings, we kept quietly growing the West + Main brand, continuing to better and improve our (thoughtfully curated, not custom-built) tech stack, evolving our marketing collateral based on what we’d hear every day from our agents about their needs, wants and dreams.

We continued opening storefront spaces in new market areas and strengthening our administrative and executive staff in order to accommodate and serve our ever-growing roster.

Also, throughout these last couple of years, we had several opportunities to grow more rapidly through merger and acquisition opportunities. It never felt like the right moment or the right fit, so we passed, again and again. 

While we were exploring all of these franchise options that were being pushed, a pattern quickly emerged.

How meetings go and what’s typically said

• As way of introduction, their first communication is congratulatory and goes something like, “Wow, it looks like you gals are doing great with your little operation out there in Colorado. I’m going to be in town soon and would love to stop by to meet you/check out your office/say hello.”

• Always happens to show up a little early. Wearing a suit. With a partner who “just happened to be available.” It’s a good cop/bad cop scenario. One guy is there to woo and flatter. The other is there to point out shortcomings and discourage.

• Very rarely wants to hear anything about your company. Only wants to talk about theirs.

• A common messaging is: “Once you get to a certain size, you’re going to need to be part of a bigger brokerage.”

• Another common messaging? “What you’ve built here is great, but basically you should throw it all out and pay us for our exclusive technology, marketing services and referral network.” 

• A typical parting message is: “We’d like you to meet our vice president/president/human resources director next week. She’s just like you!” This person is almost always the only woman on their executive team — no matter what position she holds. No gal on the team? “You should meet this person of color. You’ll love him!” (Also, usually the only one on the executive staff.) 

• Sends over a nondisclosure agreement (NDA).

• Schedules a follow-up meeting or travel agenda to the company headquarters to “see if we’re a good fit for each other.”

• Next is a day of discovery, slideshows and a brief meet and greet with the promised executive. This is all followed by a high-pressure sales pitch to “sign right now. We promise this won’t actually cost you anything, and we will make the transition easy for your agents. They don’t care what company they work for anyway, and they’ll be happy to pay the franchise fee for all of this bright and shiny tech, marketing and referral network!”

• That moment when they realize they don’t really have what they would need to get us to buy in.

So, what did we manage to harvest from all of those meetings?

First of all, I want to acknowledge that we did meet some really kind, smart people. I’m now lucky enough to call some of them my friends. I love real estate folks. Sharing a passion and an industry obsession, and taking the time to see it all from a different point of view is always cool. 

The second aspect is that real estate franchisors mostly offer the same thing as a standard business model: Buy a franchise for around $35,000, and commit to a five-to-10-year contract. The compensation is typically a mix between some kind of annual or monthly fee per office or agent, as well as a per-transaction franchise fee of 7 to 10 percent.

Some are multilevel marketing (MLM) pyramids thinly masked with “profit share.” Some are so focused on establishing or growing their local market share that they will negotiate pretty heavily. Some will offer a signing or recruiting bonus or “marketing allowance” to you or your agents.

Third, the products and services that they provide are pretty much the same as well:

1. Technology: an IDX-based website, a CRM, a documents or transaction management platform. The latest must-haves seem to include a single-sign-in agent dashboard, because “agents can’t remember where to log in to several platforms.” They also include an online store where agents can purchase company-branded supplies and merchandise.

2. Marketing: use of logos within strict brand restrictions and guidelines, allowance for agent or team branding within the company brand, available for purchase marketing collateral including buyer/listing presentations, folders, one-sheets, postcard campaigns, etc. Latest must-haves here seem to be direct mail magazines (either ad-based or cobranded to agent or both), and social media templates.

3. Referral network: Most of the time, they are basically saying, “We have thousands of agents that you will be able to refer business to!” (Um, cool, but I can guarantee that I’m going to refer my business to the best agent for the client, not the branded agent, so I usually stop listening at this point to flip through whatever shiny magazine they just handed me.)

4. Training or agent education: Whether they just built a state-of-the-art studio designed to produce the “best training in the industry” or if they recently hired a major coach or consultant to facilitate their ongoing education, most of the franchisors we met did put a heavy focus on this.

Whether all of this was being created by huge internal tech teams and through platform acquisitions, or if it was firmly rooted in old-school tradition, there really was not that big of a difference between any of the offerings.

Creating a new option and opportunity

Then, we started getting approached by people who wanted to purchase West + Main franchises. Again, we went down the exploratory road. But again, it didn’t feel right.

Through all of this, we realized a few things. First of all, we already had and offered everything that the franchisors were presenting. Also, we actually loved what we had created and were not interested in giving it all up just to partner up. And lastly, we really believed that there was room in the market for something different.

So, how could we continue to grow and challenge ourselves and our team?

We dug a little deeper and found that what we are really interested in doing is helping other indie brokerage owners offload some of the things on their overfilled plates so that they can focus on their own growth and success by sharing what we have learned and created.

This became a part of our 10-year West + Main road map. Fairly quickly, we stumbled into a perfect culture match and started some conversations with Jarred Smith and Mary Hatch, co-founders of Dwell Urban Realty in Oklahoma City. They, too, had talked to many of the major franchisors. 

They already had a beautiful brand and established market presence and, just like us, they didn’t want to be swallowed by any of the big players under one of the typical expansion business models.

The launch of West + Main Oklahoma in May 2020

By folding Dwell into West + Main through a strategic partnership and rebranding their presence, our team was able to offer help with a new website build-out, which was completed in just a few days, thanks to our long-time partners at Real Estate Webmasters.

We also offered the installation of a new CRM, implementation of and introduction to our tech partners and providers, an all-new marketing strategy, collateral and design services, social media management, agent onboarding and training, executive consultation, and continuous services including a recruiting plan, agent training and coaching, and more.

One month in, both the Colorado and Oklahoma rosters continue to grow, attract amazing agents and increase market share. All to say, we are so excited to see where we might go next!

Stacie Staub is the founder and owner of West + Main Homes in Colorado. Connect with Stacie on LinkedIn.

3 Ways to Increase and Empower Black Homeownership

A look at the gap in black homeownership and what we can do to close it.

Note: Although this was written for the mortgage industry, we feel like it’s an important and relevant overview that clearly applies to Realtors, Real Estate Brokerages, Real Estate Industry Leaders and quite simply everyone involved in the housing industry.

Written by Montell Watson for Housing Wire:

Over the last several months, I’ve read many articles talking about the homeownership gap for black Americans. Each article fuels me to speak with more families to bring awareness to the importance of homeownership and how owning a home can have a positive generational impact on their households. 

Although the current gap is staggering, I believe we have an opportunity to change the systemic long-term trust issues black households have with financial institutions while empowering all potential homeowners to believe homeownership is for them.

Below I’ll outline three ways major stakeholders can work together to improve homeownership for black Americans. 

Let’s talk about the numbers

Today, the homeownership gap for black households stands at 44%. This rate has ticked up from a recent staggering 50-year low that traces back to the passing of the Fair Housing Act. This gain is positive, but we have a long way to go. 

Homeownership is still one of the best ways to grow wealth and low homeownership rates in black communities has a direct correlation to net worth. This results in a lack of opportunity for home equity growth and a natural built-in savings account earned by making mortgage payments vs. a rental payment. According to “The Road to Zero Wealth” report by Prosperity Now, the median wealth of black Americans will fall to zero within 23 years if current trends continue. This is daunting. 

How did we get here? 

Recently, I’ve had the privilege to speak with many people within the black community: high school students, college students and adults who aren’t aware of the Fair Housing Act and what it granted for people of color.

This was eye-opening for me.

Many people are unaware of our country’s history with housing and redlining and how it relates to people of color. Compound our country’s history of redlining with the fact that black households were hit the hardest during the housing crisis in 2008 (due to having a disproportionately larger number of subprime mortgages compared to their counterparts), and you have a perfect storm which lands us to where we are today.

Those factors forced many black homeowners out of their homes and into renting. This wiped out any home equity gains for those who took advantage of the momentum of the Fair Housing Act.

This lasting effect is still seen in large metropolitans’ areas such as Philadelphia where there are rows of vacant properties that are disproportionately racially divided. The city of Philadelphia has more than 40,000 vacant properties in the city and is trying outside-the-box strategies to help revitalize neighborhoods that were hit hard during the financial crisis.

Affordability is also a major hurdle for black households to live out the dream of homeownership.

Due to a high unemployment rate for black workers and growing home prices, having the available funds for a down-payment seems insurmountable. There are millions of Americans who can’t afford a $250,000 home.

Rising costs for builders continue to push builders into building higher-priced homes to capture margin. Combine rising builder cost, rising costs of rent putting a strain on savings and this is yet another constraint for black households trying to afford a home purchase. 

What can be done: 

Here are three ways we can work together to improve homeownership for black Americans. 

1) Outreach and Education:

Lenders can continue to improve their outreach and education specifically concerning down payment requirements and programs.

As lenders, we should take the time to educate the 1.7 million black Millennials who are mortgage ready but don’t own. We need to teach these individuals about the misconceptions of down payments and why it’s important to own a home to create generational wealth.

There is also an opportunity to streamline and improve accessibility to down payment assistance programs. Urban Institute states there are more than 2,500+ down payment assistance programs across the country with several of the program’s funds not being utilized. This is because of a lack of awareness and understanding about availability of the programs.

2) Improving Loan Officer Diversity/Inclusion:

Enhancing diversity within the industry also offers a great opportunity to help build trust with borrowers of color who have lost confidence in financial institutions from past experiences.

Today, loan officers continue to successfully build great trust and relationships within their local communities. With minorities expected to be the majority by 2025, lenders have an opportunity to understand how they can better serve the changing demographic through having a more inclusive loan officer population. 

3) Supply and Demand:

Lastly, attacking affordability requires collaboration from many stakeholders.

Alana Mccargo from the Urban Institute says “Acknowledging the problem, some cities have taken bold actions to reform zoning and land-use regulations. Factory-built housing production, like manufactured and modular housing, could also increase homeownership affordability and supply.”

“Contrary to common perception, recent research highlights that some manufactured homes appreciate at similar rates as site-built homes,” Mccargo continues. “Manufactured housing has evolved and could be an affordable solution for helping black families get on the path to homeownership.” Mccargo’s five-point plan to improve black homeownership has more details.  

I’ve highlighted only a few of the many reasons the black homeownership rate is where it is today.

Although many stakeholders are taking action to help eliminate this alarming gap, no one has a silver bullet to solve the issue. One thing that I know is true is that if we don’t act, the net worth inequality gap will continue to increase, and the homeownership gap will continue to get worse.

We don’t have to have all the answers, but we must act. 

Keep learning:
Black Lives Matter Resource Guide

77% of Home Sellers are Ready to Sell After End to Stay-At-Home Orders

More than 3 in 4 potential sellers–77%–are preparing to sell their homes following the end of stay-at-home orders, with half completing do-it-yourself home improvement projects, according to a new survey from the National Association of Realtors®.

“After a pause, home sellers are gearing up to list their properties with the reopening of the economy,” said NAR Chief Economist Lawrence Yun. “Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.”

NAR’s latest Economic Pulse Flash Survey, conducted May 3-4, asked members how the coronavirus outbreak has impacted the residential and commercial real estate markets. Several highlights include:

• Five percent of Realtors® said their clients are shifting neighborhood preferences from urban areas to suburban areas due to COVID-19.

• About 1 in 8 Realtors®–13%–reported buyers have changed at least one home feature that’s important to them due to COVID-19. For these buyers, the most common home features they identified as important are home offices, yard space for exercising or growing food, and space to accommodate a family.

• Nearly 3 in 4 Realtors® currently working with sellers this week–73%–reported their clients hadn’t reduced listing prices to attract buyers.

View NAR’s Economic Pulse Flash Survey report:

https://www.nar.realtor/research-and-statistics/research-reports/nar-flash-survey-economic-pulse

View NAR’s Weekly Housing Market Monitor:

https://www.nar.realtor/research-and-statistics/weekly-housing-market-monitor

In similar news…

Here come the homebuyers

Pandemic causing people to look for more room — and they've been able to save more too

As a result of shelter-in-place orders across the country, more people are antsy and looking to buy a home this summer. In fact, LendingTree says that 53% of homebuyers are more likely to buy a home in the next year because of the COVID-19 pandemic.

However, 27% said their timeline hasn’t changed, and 20% said they are less likely to buy a home in the next year.

The main reason these potential homebuyers say they would be willing to move is to take advantage of the record-low mortgage rates. A whopping 67% said this is their reason.

Just last week, the average U.S. mortgage rate for a 30-year fixed mortgage fell to 3.15%, the lowest ever recorded in a Freddie Mac data series that goes back almost five decades.

However, although mortgage rates are at record lows, lenders have become more restrictive on what it takes to qualify. LendingTree said that 44% of homebuyers are more worried about qualifying for a mortgage because of the pandemic. Specifically, 58% of first-time homebuyers and 52% of Millennials said they are especially concerned.

Perhaps mortgages in forbearance and loans in forbearance are a contributing factor behind consumers’ willingness to buy – 32% said they were able to save more money for a down payment due to reduced spending, and another 30% said it’s due to home prices dropping. Another 28% said they would move due to being stuck in their small space for so long.

Because the pandemic has accelerated and required the use of tech in real estate now more than ever, 61% told LendingTree that they have toured a home virtually over the last two months, 33% said they had plans to do so and only 7% said there was no plan to tour a home virtually.

Even though it may look like there are more potential homebuyers out there, out of the 20% that said they are less likely to buy a home, 70% of those homeowners say they don’t think now is the time to move, because of uncertainty due to the pandemic.

And despite the availability of virtual home tours, 42% of hesitant buyers said they won’t buy because of inability to tour a home in person, and 38% said they wouldn’t buy because of loss of income.

But, 53% of first-time buyers said they would buy a house without an in-person tour, while 18% of repeat buyers said they’d do the same.

Are you ready to serve Buyers + Sellers in a post-quarantine world? Do you have a plan in place in the case of a second wave + shutdown?

West + Main is uniquely qualified to provide the support, tools, education and advice that Real Estate professionals are going to need to survive 2020, and beyond.

Let’s talk.

Summer Ninja Workshop Series

Recorded Every Tuesday in Summer at 10am MT! All replays and resources available now!

Video on Vimeo | Audio on Spotify + Apple + Google + Anchor

Taught by West + Main Agent + Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. We highly recommend that you commit to the entire series, and read Ninja Selling by Larry Kendall prior to the first class. You can find on Amazon.

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Week 1 Replay

⤜Download: Week 1 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 2 Replay

⤜Download: Week 2 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 3 Replay

⤜Download: Week 3 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 4 Replay

⤜Download: Week 4 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 5 Replay

⤜Download: Week 5 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 6 Replay

⤜Download: Week 6 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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Week 7 Replay

⤜Download: Week 7 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

---

Week 8 Replay

⤜Download: Week 8 Resources→

Audio only version available on Spotify + Apple + Google + Anchor

Taught by West + Main Homes Agent and Managing Broker Allie Carlson, this 8-week Ninja Workshop Series will help you dive deeper into the Ninja Selling habits and systems to improve both your Real Estate business and your life. 2020 © Anchor FM Inc. All rights reserved.

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