Posts By: Sajag Patel

LeadingRE Adds Move Concierge to Solutions Group Program

Posted by & filed under Executive Insights.

Featuring Sajag Patel

CHICAGO – (September 4, 2024) – Leading Real Estate Companies of the World® welcomes Move Concierge to its Solutions Group program of preferred business resources for its global network of 550 market-leading real estate firms. Move Concierge connects home services like TV, internet, phone, home automation, and security. The company’s white-glove service is free for brokerages and their clients, providing home owners with a personal concierge to customize a whole-home connection plan, place orders, and schedule installations for each service.

“Move Concierge is a valuable addition to our Solutions Group program. They simplify the moving process by setting up home connections, ensuring a seamless transition. With excellent references and exceptional customer service, your clients will be well taken care of by Move Concierge,” said LeadingRE Chief Legal Officer and EVP of Industry & Learning Jessica Edgerton.

“At Move Concierge we deeply value our partnership with LeadingRE. Their commitment to excellence aligns perfectly with our mission of providing transformative customer experiences. By working together, we enhance the moving experience for customers ensuring they receive top-tier service and support,” said Sajag Patel, Move Concierge chief revenue officer.

Learn more about Move Concierge at MoveConcierge.com.

Learn more about Leading Real Estate Companies of the World® at LeadingRE.com.

About Move Concierge
Move Concierge is a revolutionary service for connecting home services like TV, internet, phone, home automation and security. The company’s no-cost, white-glove service provides clients with a personal concierge to customize a whole-home connection plan, place orders and schedule installations for each service — all with a single point of contact. Since its founding in 2009, the company has been dedicated to surpassing great customer service, setting the bar by providing an exceptional client experience. Move Concierge has been named one of the fastest-growing companies in the U.S. by Inc. Magazine for the last six years. In 2023, the company won the JP STAR Award for Partner of the year, and in 2022 it was named one of the Top Workplaces in the Dallas/Fort Worth Metro area.

About Leading Real Estate Companies of the World ®
Chicago-based Leading Real Estate Companies of the World® (LeadingRE.com) is a global network of top independent real estate firms, with 550 companies and 134,000 sales associates in over 70 countries. LeadingRE supports its members with powerful connections to other market leaders and access to innovative, performance-driven programs. LeadingRE is also active in commercial real estate, with over 200 firms in 20 countries specializing in the commercial arena.

Pending home sales tank in July, but the slump is likely short lived

Posted by & filed under Executive Insights.

Mortgage rates are finally dropping, but pending home sales fell even further into the toilet in July.

That’s according to the July pending home sales index from the National Association of Realtors. On an annual basis, the index fell by 8.5% to the second lowest seasonally adjusted rate in the data’s history, topping only April of 2020 when the market was frozen by the pandemic.

The index fell by 5.5% month over month to 70.2. Anything above 100 is considered to have a higher level of activity relative to 2001.

“A sales recovery did not occur in midsummer,” said NAR Chief Economist Lawrence Yun in a statement. “The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election.”

In addition to the election, there are a number of reasons why buyers might be hesitant to jump back into the market. While rates are falling, they’re still high relative to recent history. With the Federal Reserve almost certain to cut rates in September, buyers might do well to wait a couple months.

Some buyers also are considering the recent rule changes related to the $418 million settlement of antitrust lawsuits signed by NAR. Buyers are accustomed to sellers paying for their agents, so shoppers who’ve bought a home before feel uncertain about how to navigate the new landscape.

Then there’s the obvious — affordability remains incredibly strained, with home prices at or near all-time highs in most markets.

Despite the disappointing numbers for July, economists expect the slump to be short lived as rates drop further, the election passes and shoppers get more accustomed to the new rules.

“With rates set to drop beginning next month and expected to continue declining through the remainder of the year, we expect America to be on the move again soon,” said Move Concierge CEO Gabe Abshire in a statement. “It will take a month or two longer, however, until we see home sales beginning to trend back upward. But we believe the market will turn.”

On a month over month basis, the index fell in all four regions of the country with the midwest (7.8%) and the south (6.5%) falling the most. The west fell by 3.8%, while the northeast dropped by a more modest 1.4%. The south posted the highest index number at 83.5, and the west posted the lowest at 56.2.

However, the numbers are more mixed on a year over year basis, with pending home sales rising in the northeast but falling in the midwest, south and west.

Fine Times: MLS Execs Ponder Penalties for Compliance Culprits

Posted by & filed under Executive Insights.

No-nonsense approach taken to ensure no nonsense is attempted by agents considering shortcuts and/or commission no-nos.

Now that the now-famous date of Aug. 17, when complying with the National Association of REALTORS®’ (NAR) settlement became mandatory, has come and gone, the newest question is what happens if and when real estate renegades operate outside the box? What penalties might there be for those who ignore, bend or outright flout the rules, putting themselves and potentially their brokerages at risk?

Michael Ketchmark, the lead attorney for the Burnett plaintiffs, has vowed that there will be eyes everywhere, and any funny business will be met with new, stone-cold serious litigation.

It’s shaping up to potentially be a fine mess, literally.

Sajag Patel is a real estate industry analyst and chief revenue officer of Move Concierge and the former COO of Keller Williams. His advice pre-Burnett differs from post-Burnett, making sure real estate professionals understand what has happened and how things have changed, with much closer scrutiny on buyer agents especially.

“The new rules are intended to create transparency for both homebuyers and homesellers so that it’s clear how much compensation is being provided to each respective agent,” he says. “They reaffirm that all agents are allowing the seller to determine how much compensation, if any, they are willing to pay the buyer’s agent. It also reasserts that buyers’ agents are not telling their buyers that their services are free, but that their services are for a cost, and now that cost must be communicated. 

“This means that agents today must now look for ways to add value to the transaction in order to justify the fee for their expert services, and those who succeed will be the ones who get creative about how they do this. There is some speculation that this ruling may spur some agents to leave the industry, but the past has shown that real estate agents are surprisingly adaptable and often embrace change, and I think this time things will be no different.” 

For those who decide to try and outsmart the system, there will be penalties if caught. RISMedia spoke with major MLSs about plans they have for offenders, finding that fines are the common punishment.

“We are readying fines, but taking a much more benevolent approach with our members,” says Anne Marie DeCatsye, CEO of Canopy REALTOR® Association/Canopy MLS, which encompasses North and South Carolina. “I have said this when I speak, that ‘We’re in this with you.’ We didn’t ask for this any more than they did, but it’s on us to enforce now. We may have already started violation notices, to let our members know that ‘Hey, this is a violation. You need to change it, fix it.’ We’re not going to fine, though, until after the first of the year. 

“We’re hoping that we can really use from now until the end of the year as an education opportunity. I believe the only thing we’re forcing immediately is if we discover that data from the MLS is in any way used to set up a platform for sharing compensation. And if that’s the case, we’ll shut you down immediately until that issue is resolved. Otherwise we’re trying to all learn it at the same time.”

Richard Haggerty is CEO of OneKey® MLS, New York’s largest such organization. He doubles down on those trying for an unfair advantage.

“The enforcement of the new rule prohibiting any mention of compensation in the MLS is structured around two key components,” he says. “First, we are heavily investing in the education of OneKey® MLS participants and subscribers, ensuring they are fully informed of the new rules and requirements, including the mandate for written buyer agreements. Second, enforcement through fines will be implemented when necessary to address willful non-compliance.

“As a REALTOR® association-owned MLS, we are obligated by the terms of the settlement agreement to enforce these rules, and we are committed to doing so with the utmost fairness and transparency. Brokers who seek to circumvent these rules not only put themselves at risk but also endanger the interests of their peers. Therefore, ongoing education, coupled with rigorous enforcement, remains essential.”

The same “get educated and follow the rules” mindset is stressed by Bright MLS EVP of Customer Advocacy Rene Galicia. His is the second-largest MLS in the country, representing mid-Atlantic states.

“Bright, like other MLSs, is tasked with enforcing the terms of the NAR settlement, which prohibits any mention of compensation in the MLS,” he says. “Bright has worked since the settlement all summer to educate our thousands of subscribers and meet them where they are with both virtual and in-person training, live and recorded webinars, weekly communications and a thorough library of information on our website. 

“We have a new tool in our system to help flag any words that would be considered an attempt to convey compensation, giving the subscriber a chance to fix the issue before the listing is completed. If a listing is found to have compensation information included, either directly or by an attempt at a work-around, the information will be pulled, and the subscriber will be issued a fine.”

On the Stellar MLS website, CEO Merri Jo Cowen speaks on several topics via video, including compliance. Stellar is owned by 19 REALTOR® associations and boards representing over 80,000 real estate professionals in Florida and Puerto Rico, and is the third-largest MLS in the U.S. and the largest in Florida.

“The big question is who’s going to enforce this?” she says in the video. “Well, unfortunately, or either way, however you look at it, it is Stellar. We will be enforcing as it relates to the MLS rules and regulations that the buyer broker agreement (BBA) was executed before touring or showing a property. And then we also must enforce that all of those required components are included in the document. 

“So how are we going to enforce this? That’s the biggest question we’re getting. If we receive a notification of a possible non-compliance or violation through one of our reporting systems through metrics or through an email, our compliance team will follow up, contact the showing agent, request a copy of the BBA, and that needs to be submitted into Stellar within one business day. When we get that copy we’ll look at it and make sure it’s compliant.

“Not only must it be complete and meet the requirements of the not open-ended compensation and all of those pieces, but we’ll also be reviewing the form itself. And along those lines we’ll want to be sure that the brokers are being diligent about making sure the form itself is compliant, and that’s how you’ll avoid any penalties.”

Cowen went on to say that Stellar was enforcing the new rule for BBA before showings starting Aug. 6. “We will have a 60-day grace period to give you a chance to get used to it,” she concluded. “We’ll be sending corrections or notices, but there will be no penalties assessed.”

CRMLS is the nation’s largest subscriber-based multiple listing service. It serves more than 110,000 real estate professionals from 41 associations, boards and MLS organizations. On Aug. 13, CRMLS enacted new rules and policies to remain compliant with the regulations set by the commission lawsuit settlement. Most notable of these changes is the removal of Buyer’s Agency Compensation fields. Along with their removal, it is now against CRMLS rules to note offers of compensation in the MLS and doing so will result in a $2,500 fine.

“CRMLS has taken substantive measures to educate our users on the new rules and associated fines,” says CEO Art Carter. “The goal is to ensure compliance and help reduce potential broker liability.

“The CRMLS executive team has attended numerous in-person brokerage and AOR meetings to present the changes that have resulted from the NAR settlement. The Marketing & Communications department also created a robust communication plan consisting of frequent emails, REcenterhub dashboard articles, MLS system pop-ups and social media to help prepare users prior to the changes’ enactment.

Additionally, while in the listing input process, warning messages in bold, red text appear on Private Remarks, Public Remarks and Showing Instructions text fields. Private Remarks may also display a pop-up message titled ‘Private Remark Warnings and Errors,’ which indicates that a prohibited word was entered and the listing may result in a violation. CRMLS has also partnered with ShowingTime to provide prominent alerts to explain that buyer representation agreements are required before showing or touring a home.”

Why Buyer’s Agents Add Value

Posted by & filed under Moving Tips.

By Sajag Patel

Recently, the role of the real estate agent in a homebuyer’s purchase transaction has been thrown into question. Earlier this year, the National Association of Realtors shelled out $418 million to settle a series of lawsuits alleging that the association was inflating commissions. 

In particular, commissions for buyer’s agents were dragged into the light. It left some homebuyers questioning whether they need an agent at all. What, exactly, do they bring to the table? Is it truly worth paying a commission fee, or can’t the buyer just manage on their own?

When you’re the one buying a house, do you actually need a licensed professional to guide you through the process? The answer, to me, is yes — unequivocally yes — and I’ll tell you why.

As a buyer’s agent, you bring so many things to the table, and you have to communicate that value to your clients. Buyer’s agents carry their weight by being many things to their clients at once: a finder of good deals, a counselor, a negotiator, and a peacemaker, all in one.

It’s critical to stress to your buyer that they are hiring a professional who has sold many homes in a single year, not just one home every five to seven or 10 years. They are hiring someone who brings experience, knowledge and skills to the table to assist with a transaction related to what is likely to be their single largest asset. Why wouldn’t they hire a professional to represent them?

Help them reach their goals and be the voice of reason

A buyer’s agent can genuinely add value by helping buyers hash out their goals and establish a sensible game plan for finding the right home. Since buying a home is a quagmire that ordinary homebuyers can get lost in, your role as a buyer’s agent is crucial. Afterall, you’ve done this many times with other clients with similar needs. 

As a professional buyer’s agent, your role is to first educate the homebuyer on the home-buying process and what comes with homeownership. The buyer’s agents who invest the time upfront with their clients through a consultation make the experience 100 times better for the buyer than those who don’t.

You serve as an unbiased observer in the process and the voice of reason when helping homebuyers who feel overwhelmed to stop them from making emotional or impulsive decisions. You have your clients’ well-being at heart while considering their needs and priorities. You know the usual difficulties and issues to look out for and the home features that hold up in value. 

As a buyer’s agent, you have many fingers in the pie. You are a negotiator and a liaison as a professional legally bound to protect homeowners’ best interests and balance out any possible conflict with the seller or their agent. You are a person of many functions — finding homes for your clients to look at, making offers to the listing agent, and negotiating contracts that are advantageous to your customer.

Professional buyers agents save their clients time, money and reduce stress throughout each step of the process. One smart way to show how, exactly, you can do this is to break down the specific services you offer, giving the buyer the ability to choose how they work with you. As a buyers agent, you should have a menu of services that allows the buyer to decide in what capacity they want to work with you.

Showcase your knowledge of exclusive deals and your extensive network

Finding the best property is vital to every homeowner, but it can be like looking for a needle in a haystack. This is where your extensive knowledge as a buyer’s agent becomes critical. You have a deep understanding of the community that your clients are targeting to buy a house. You can offer crucial insights into neighborhoods your clients are exploring, such as everyday things like whether there is a lot of noise pollution, grocery stores nearby, or too much traffic. You also have insider information about existing property values and can inform your clients about the property’s transaction history. You can bring this knowledge to the negotiating table and help clients tremendously by arming them with valuable pricing data when they make an offer. 

Finding the perfect home is not easy, and your invaluable network allows your clients to learn about available properties that are not accessible to everyone. This is one of your main selling points. You are giving so much added value because you have built up an extensive list of connections in the real estate industry. Your contacts give you a heads-up about exclusive, sometimes off-the-market and hard-to-find properties your clients can only know about through you. The wide-ranging property choices available through your network will give your clients the gamut of options for homes unavailable to the general public. Professional buyers agents are local market experts and can help the homebuyer win in competitive sellers markets and save money in buyers market.

Spotlight your negotiating skills

A buyer’s agent brings far more value to the table than just scheduling property tours and home inspections. Your role as the go-between for your client is critical when price negotiations come into play. 

You bring to the table layers of experience that give you insight into the perspectives of the seller and their agent. Negotiating the best deal for your client is a pivotal part of any real estate transaction. As an agent, you are a trained negotiator, capable of securing favorable terms by advocating for your clients’ needs, protecting their interests, and getting the most from the deal.

You are the buffer and the go-between your client and the seller. You can let your clients know how to proceed with the deal and then serve as the liaison between them and the seller, or in some cases, their broker, especially when talks between your client and the seller become confrontational. Your experience will come in handy as you serve as a voice of reason and offer rational and constructive answers to problems.

You serve as a fountain of valuable references for other services. Buyers need to have a range of professionals on hand to make the seamless transition to being a homeowner — real estate lawyers, home appraisers and inspectors, mortgage brokers, and movers.

Your value doesn’t stop after the sale

But your services shouldn’t stop there. A good buyer’s agent can help homebuyers navigate everything from utility setup to cable connection and a home security system. There is so much that goes into setting up a new home, and a good buyer’s agent should be able to help ease the transition from start to finish. And you can do just that by working with Move Concierge.

By working with a service like Move Concierge, you are making yourself valuable after the purchase and throughout the move. Taking this extra step can help you build a deeper, longer lasting relationship with your client, because you have gone above and beyond what a typical agent might do. You’ve shown that you are an expert who cares by providing them with a seamless moving experience from start to finish, and that’s not something they are likely to forget. 

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