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The transition on Aug. 17 was anticipated to be a significant event for the real estate industry, but it turned out to be relatively uneventful and anti-climactic. Despite the months of preparation and training leading up to this date, it felt like business as usual. Life in real estate continued without much disruption.
As expected, the market did not come to a standstill, and my business started picking up around the time of the transition. Adjusting to the new protocols and procedures felt like navigating through red lights, yellow lights, and green lights in conducting business.
Here are some observations from the initial phase of the transition:
Florida
Showings
Showings on my listings in Florida initially appeared slower, possibly due to seasonal factors or the changes in practice. Despite good activity leading up to Aug. 17, there has been a noticeable decrease in activity on one of my listings. This slowdown could be attributed to first-time homebuyers being hesitant to commit due to financial concerns.
Despite this, I received two buyer referrals in the weeks preceding the deadline, indicating some interest in the market. One buyer was considering new construction, while the other was relocating.
Buyer conversations
Addressing the new protocols with buyers was a point of concern for me, especially with two new referrals. It required careful planning and communication to ensure buyers understood the changes. Collaborating with a team member to discuss the new procedures was essential to providing clarity to clients.
Navigating these conversations brought back memories of starting out in real estate 23 years ago, highlighting the importance of effective communication with clients.
New builds
One buyer expressed interest in building a new home and sought assistance in navigating the process. However, they had already engaged with a builder, prompting a discussion about the need for a buyer representation agreement and the upcoming practice changes. Establishing clear intentions upfront was crucial in this scenario.
Ensuring compliance with new protocols and agreements added complexity to the conversation but ultimately led to a better understanding between the parties involved.
Relocation buyer
Dealing with a relocation buyer introduced additional considerations, especially regarding policies and procedures involving a relocation company. Communicating effectively with all parties involved was key to ensuring a smooth transition and understanding of the new rules.
Despite some initial uncertainties, proactive communication and clarification helped navigate potential challenges and establish a clear path forward in the evolving real estate landscape.
After scheduling a call with the buyer and discussing their wants, needs, budget, and timeframe, we had to address the changes in the way business was done. It felt awkward telling a buyer, who was unfamiliar with us other than helping their boss relocate and buy a home, about the new procedures. We presented the information in a comfortable and approachable way, adding extra time to the conversation. The buyer accepted the information without questioning it. We explained that if it was a resale, we would seek compensation from the seller, and if it was new construction, builders in our market were paying compensation to agents. We also mentioned that builders were motivated to sell inventory in a softer market.
The buyer shared that he had visited a particular builder in different communities before being referred to us. We advised that we would reach out to the builder to determine their procedures and explore potential communities. We conducted research for the buyer, identified options with various builders and resales, provided community information, commute times, insight on builders with suitable inventory, and links to community websites. We aimed to demonstrate our value before their visit.
As the buyer’s visit approached, we sent our first buyer agreement for signature, proposing an exclusive agreement due to the intensive house-hunting week planned. Fortunately, the builder the buyer visited agreed to work with us and registered the buyer.
After a diligent week of house hunting, the buyer purchased a new construction spec home that met their needs. The builder was less informed about settlement and buyer agreements, as most site agents at various builders lacked knowledge about the process.
Meanwhile, on the West Coast, I was assessing whether the traffic to my new listing was affected by the changes in practice. I questioned if previous buyers were genuine, given the specific nature of this redevelopment property. Sales had been brisk due to market dynamics, but it was too early to determine the impact of the rule changes.
Inquiries started coming in, including one from an agent arranging a showing and inquiring about compensation. Another prospect, a young first-time buyer, expressed interest in seeing the property. I informed him about the class action litigation and new practice changes, which sparked good questions from him. Despite his initial interest, he did not follow up with his email address, so I texted him information on the changes.
Subsequently, a different agent scheduled an appointment, and it turned out to be the same buyer who initially contacted me. The buyer was likely going to use their own agent anyway, so this saved me from going through the process of discussing buyer agreements and showing the home, only for them to bring their own agent later on. The new process acts as a truth serum for buyers, prompting them to clarify their intentions upfront. You can connect with her on Facebook or on X, formerly known as Twitter.