Tag: Real Estate Managers

Broker owners, are you looking for a way to differentiate your firm and attract high-caliber agents? In today’s dynamic real estate landscape, mastering a specific niche is more crucial than ever. And there’s one area that’s rapidly gaining prominence, particularly in commercial and high-end residential: off-market deals.

Let’s face it, we all know the drill. MLS listings, LoopNet, the traditional avenues. But as Mark Hulsey from Results Commercial recently pointed out, a significant portion of lucrative transactions are happening behind closed doors. This presents a unique challenge and an opportunity for your brokerage.

Why Off-Market? Why Now?

The allure of off-market deals is growing, and here’s why you should care:

• They’re Everywhere: Particularly in commercial and luxury residential, off-market opportunities are becoming increasingly common. Agents who can navigate this space are highly sought after.
• High-Stakes, High-Reward: These deals often involve substantial sums, making them incredibly attractive to both clients and agents.
• Expertise is Paramount: However, as Hulsey warns, the potential pitfalls are significant. Sellers can be severely shortchanged without proper representation. This is where your firm’s expertise becomes a game-changer.

The Niche Advantage: Attracting Top Talent

By positioning your organization as the expert in off-market transactions, you’ll attract agents who:

• Value Expertise: They understand the complexities of these deals and seek a firm that can provide the necessary support and guidance.
• Prioritize Client Interests: They recognize the importance of fiduciary duty and want to work with a brokerage that upholds the highest ethical standards.
• Seek Market Mastery: They’re driven to deeply understand the market, build strong networks, and analyze deals with precision.

Key Takeaways for Your Brokerage:

• Emphasize Fiduciary Duty: Reinforce the importance of acting in the client’s best interest, regardless of whether a deal is on or off-market.
• Build a Powerful Network: Cultivate relationships with key players in the industry. Your network is your net worth.
• Champion Ethical Behavior and Transparency: Establish your firm as a beacon of integrity in the off-market space.
• Develop Off-Market Expertise: Train your agents on the nuances of these transactions, including valuation, negotiation, and due diligence.
• Provide Advanced Tools and Resources: Equip your agents with the tools and resources they need to succeed in the off-market arena.

Think of it this way: The traditional market is the main game, but off-market deals are the “secret levels” that require advanced skills and knowledge. By mastering this niche, you’ll not only attract top agents but also provide your clients with unparalleled service.

Actionable Steps for Broker Owners:

• Educate Your Agents: Host workshops and seminars on off-market transactions.
• Create a Dedicated Off-Market Team: Assemble a team of experts to specialize in this area.
• Market Your Expertise: Highlight your firm’s off-market capabilities in your marketing materials.
• Foster a Culture of Collaboration: Encourage agents to share their knowledge and network.

The real estate world is evolving, and off-market deals are becoming increasingly prevalent. By embracing this niche, you can position your brokerage as a leader and attract the best and brightest agents in the industry. Remember, property management and real estate brokerage is about understanding the entire ecosystem, and those that master all levels of the game will win.

Alright, let’s talk real business for a second. Not the fluffy, motivational poster stuff, but the stuff that actually makes a difference. I’ve been noticing something lately, and it’s something I’ve been guilty of myself: we’re really good at letting problems just…hang out. Like, they’re the awkward guest at the party nobody wants to talk to, so we just pretend they’re not there.

Think about it. That nagging issue with the client? The software glitch that’s slowing everyone down? That weird dip in sales we can’t quite explain? We push it to the back burner. “We’ll deal with it later,” we say. Or, even worse, “Maybe it’ll just go away.”

Spoiler alert: it doesn’t just go away.

What I’ve learned, the hard way, is that closing the gap is where the real magic happens. That moment when you finally sit down and say, “Okay, let’s figure this out,” is brutal. It’s uncomfortable. You’re staring at the cold, hard truth, and it’s not pretty. Maybe you messed up. Maybe your process is broken. Maybe the market shifted and you didn’t see it coming.

But that discomfort? That’s where growth lives.

It’s like working out a muscle – it burns, it aches, but you know you’re getting stronger. You’re actually fixing something, not just putting a band-aid on it.

And let’s be honest, our brains are wired against this. We’re wired to avoid pain, to take the easy route. That’s why we procrastinate, why we make excuses. It’s our brain trying to protect us from the uncomfortable. But success, in business and in life, isn’t about avoiding discomfort. It’s about recognizing that instinct and pushing through anyway.

• It’s about saying, “Yeah, this sucks, but I’m going to do it anyway.”
• It’s about facing the music, even when you don’t like the tune.
• It’s about closing the gap, no matter how wide it is.

So, next time you feel that urge to look the other way, to ignore the problem, remember this: that’s your brain trying to keep you safe. But safe isn’t where you grow.

Growth is on the other side of uncomfortable. And that’s where you want to be.

Something’s been on my mind lately, and it’s kind of a big one: what if what we think we know about ourselves isn’t even true?

Something really clicked for me recently. Last week in my mastermind group, we dove deep into “limiting beliefs,” and it got me reflecting. Then, I read this fascinating article referencing research (Meunks et al., 2018) about how our self-perceptions can be surprisingly inaccurate and hold us back from reaching our potential. It made me realize just how easily our internal stories about ourselves can become self-fulfilling prophecies.

Think about it: how many times have I told myself, “Oh, I’m just not good at that”? Probably more times than I’d like to admit. The article even touched on how simply hearing things repeatedly can make us believe they’re true, even if they’re not (Kahneman, 2011).

My Own “Aha!” Moment (and time for yours!):

Thinking about this, I realized a few “truths” I held about myself were likely just old, unchallenged beliefs. For example, I always thought I wasn’t very organized. But then I remembered that project last year where I totally crushed it. What was different then? It made me wonder – maybe it’s not a fixed trait.

Ready to dig into your own beliefs? Here’s how I’m approaching it:

1. Fact-Check Your Inner Narratives: It’s time to question those long-held assumptions.

• What’s the story I tell myself? Jot down 3 things you believe about your abilities or limitations.
• Where did that story come from? For each, ask: What’s the evidence? Is there any evidence against it? Think about times you might have surprised yourself. What were the circumstances?
• When do I feel different? Instead of saying “I’m just not a creative person,” think about times you did feel creative, even in small ways. What was happening? Can you create more of those conditions?
• Your Action This Week: Pick one of those beliefs and brainstorm one tiny way you can challenge it.

2. Embrace a Growth Mindset: This is about believing we can develop our abilities through effort and learning.

• Spot Your “Stuck” Spots: Identify one area where you feel limited.
• Reframe “Failures”: Think of a recent setback in that area. What did you learn from it? How can you approach it differently next time?
• Focus on the Climb: Value the effort you put in, not just the end result.
• Your Action This Week: Choose one small step you can take to learn or practice something related to that “stuck” area.

This isn’t about suddenly thinking you’re amazing at everything. It’s about being honest with yourself and realizing that your current self-perception might not be the full picture. We’re all capable of growth, and sometimes the biggest step is questioning the stories we tell ourselves.

I help broker owners, managers and recruiters challenge their belief about recruiting and talent attraction.

What’s one belief you’re going to fact-check this week? I’d love to hear!

It’s always interesting to see where people are choosing to plant their roots, and the latest migration data from the National Association of REALTORS® (NAR) for 2024 gives us a lot to think about. While a few states are clearly leading the pack in attracting new residents, the reasons behind these shifts are diverse and worth exploring.

Topping the list for net migration are Florida, Texas, and North Carolina. Florida’s warm climate and lack of state income tax continue to be major draws, primarily attracting international movers in the latest data. Texas also saw significant growth, again largely from international migration, building on its pandemic-era popularity. North Carolina offers a compelling mix of job opportunities, quality of life, and diverse landscapes, appealing to both domestic and international migrants.

Now, let’s touch on California. While it’s true that the Golden State experienced a net loss in domestic migration due to factors like cost of living, it remains a powerful magnet for international migrants, ranking second nationally. This highlights California’s enduring appeal in terms of job opportunities, particularly in tech and entertainment, and its global cultural influence. Despite domestic out-migration, its strong international appeal keeps it a significant player in overall migration trends.

Beyond the top three, other states are also seeing notable migration patterns. Arizona is attracting younger generations, while New Jersey sees international growth despite domestic departures. South Carolina and Georgia offer their own unique draws, and New York is experiencing a migration rebound. Washington state rounds out the top ten, benefiting from its tech sector and natural beauty.

The bigger picture here is that people are moving for a variety of reasons: economic opportunities, lifestyle preferences, and affordability being key drivers. States with strong job markets, appealing climates, and a lower cost of living tend to see significant inflows. However, even states facing domestic out-migration can still hold strong appeal for international migrants, underscoring the complex factors influencing where people choose to build their lives.

It’s clear that the map of where people are living is constantly shifting, reflecting evolving economic landscapes and lifestyle priorities. These migration trends have significant implications for housing markets, economies, and communities across the country.

Now we are working on our own study, “The Recruiting Insight 2024 Agent Migration Study” to be released this Spring. I can’t wait to share those insights with my readers.

Hiring new talent seems like a straightforward path to growth, right? But beneath the surface of onboarding paperwork and welcome lunches lie significant, often overlooked costs, especially in performance-driven industries like mortgage lending. A recent article in National Mortgage News sheds light on the real financial burden lenders face when bringing on new Loan Officers (LOs) – and the implications resonate deeply within the real estate brokerage world too.

The Price Tag of a New Loan Officer: It’s More Than You Think

The article highlights that the expense of hiring an LO goes far beyond just their initial salary. Did you know:

• The median cost to simply recruit a loan officer is around $1,633, and the hiring process can take a lengthy 36 to 42 days. This includes advertising, screening, and interview time – resources that could be focused elsewhere.
• Once hired, expect to invest approximately $1,000 in licensing and initial training.
• The real sting comes with “failed hires” – those who don’t meet production goals or leave quickly. This results in a direct loss of the initial recruitment and training investment, plus any bonuses paid.
• Attempting to recoup bonuses from departing or underperforming LOs can even lead to costly legal battles.
• Supporting underperforming LOs increases a lender’s overall operational costs, impacting their profitability and ability to offer competitive loan rates. In fact, total loan production expenses can average around $10,716 per loan, a figure heavily influenced by LO performance.
• It can take a staggering 1 to 2 years for a new LO to reach the productivity level of a seasoned professional. If they leave before then, that’s a significant period of lost potential.
• The mortgage industry faces a high attrition rate of 30%-35%, meaning the risk of a “failed hire” is substantial.
• The departure of an LO can even impact client relationships, with one study suggesting a potential 20% drop in the likelihood of existing clients getting a new loan from the same bank.

Corollary for Real Estate Brokerage Clients: What Does a Failed Agent Hire Cost YOU?

Now, let’s pivot this to the world of real estate brokerages. While the specific licensing and loan production metrics differ, the underlying principles are strikingly similar. A “failed hire” of a real estate agent can cost your brokerage in numerous ways:

• Recruitment Costs: Time and resources spent on advertising, interviewing, and onboarding new agents.
• Training and Mentorship: Investment in coaching, training programs, and the time senior agents or brokers spend mentoring new recruits.
• Lost Productivity: The period it takes for a new agent to become consistently productive, and the lost commission potential if they leave before reaching that level.
• Negative Impact on Team Morale: Underperforming agents can drain the energy and resources of the team, potentially demotivating top producers.
• Damage to Reputation: Agents who provide poor service can negatively impact your brokerage’s reputation and future client acquisition.
• Loss of Potential Revenue: Missed opportunities and unclosed deals due to an agent’s lack of skills or commitment directly impact your bottom line.

Implications for Your Brokerage:

Just like mortgage lenders, real estate brokerages operate on margins. Failed hires erode those margins, impacting profitability and hindering growth. In today’s competitive market, every agent needs to be a valuable contributor.

Action Steps: Mitigating the Cost of Failed Hires

So, what can you do to minimize the risk and cost of failed agent hires?

• Focus on Strategic Hiring: Don’t just fill seats. Develop a clear understanding of the skills, personality traits, and core capacities that lead to success in your brokerage.
• Implement Robust Screening Processes: Go beyond the resume. Utilize assessments and in-depth interviews to evaluate a candidate’s potential fit and likelihood of success.
• Invest in Comprehensive Onboarding and Training: Provide new agents with the tools, knowledge, and support they need to thrive from day one.
• Foster a Supportive and Collaborative Culture: A positive environment can improve agent retention and productivity.
• Leverage Assessment Tools: Consider incorporating tools like our CCI (Core Capacity Index) assessment to gain deeper insights into a candidate’s innate abilities and potential for success in a real estate role. The CCI can help you identify individuals with the core capacities that align with high performance, significantly reducing the risk of a costly failed hire.

My Conclusion?

The National Mortgage News article serves as a powerful reminder that the true cost of hiring extends far beyond the initial offer letter. By understanding these hidden expenses and implementing strategic hiring practices, including the use of insightful assessment tools like the CCI, both mortgage lenders and real estate brokerages can make smarter hiring decisions, protect their bottom line, and build high-performing teams for long-term success.

Introduction:

In today’s dynamic recruitment landscape, the best recruiters aren’t just salespeople; they’re coaches. Historically, leaders, and by extension recruiters, were expected to have all the answers. But now, success lies in empowering others to find their own. This shift requires a coaching mindset, where we focus on connection, inspiration, and growth. Just like a great coach, a top recruiter excels at asking the right questions, listening deeply, and empathizing genuinely.

Asking Powerful Questions:

Coaching, and effective recruiting, begins with creating space for the candidate or hiring manager to share. Start with open-ended questions like, “Tell me about your ideal role,” or “What are your biggest challenges in finding the right talent?” This “pure inquiry,” as Edgar Schein calls it, allows you to understand their needs without imposing your own assumptions.

Move to “diagnostic inquiry” by focusing on specific aspects of their story. “You mentioned a need for leadership skills – can you elaborate on what that looks like?” or “It sounds like this role requires a quick learner. How do you envision that person adapting?”

Finally, use “confrontational inquiry” (in a constructive way!) to challenge assumptions and introduce new perspectives. “You’ve highlighted these qualifications, but have you considered how this candidate’s experience in X industry might be valuable?” or “I understand the urgency, but what are the potential long-term impacts of rushing the hiring process?”

Remember, the more time you spend in open inquiry, the more you empower candidates and hiring managers to discover their own solutions, leading to better fits and more successful placements.

Listening with Intention:

Hearing is passive; listening is active. In recruiting, this means giving your full attention. Maintain eye contact (even virtually!), minimize distractions, and focus on understanding not just the words, but the underlying meaning.

In phone interviews or virtual meetings, pay extra attention to vocal cues. Taking brief notes can help, but don’t let it distract you from truly listening. The goal is to make the other person feel genuinely heard and understood.

Empathizing and Building Trust:

Empathy is the cornerstone of effective coaching and recruiting. It’s about understanding and sharing the feelings of others. Candidates and hiring managers often experience stress, uncertainty, and even shame during the recruiting process.

As Brené Brown says, empathy is the “antidote to shame.” Acknowledge their concerns, validate their feelings, and create a safe space for open communication. Avoid common empathy traps like comparing experiences or jumping to solutions without acknowledging their emotions.

Remember, empathy doesn’t mean lowering standards. It means understanding their challenges and helping them overcome them. Acknowledge their struggles, then motivate them towards improvement.

The Recruiter as a Transformative Leader:

As a recruiter, you don’t need to have all the answers. Your role is to guide, empower, and support. By mastering the art and science of coaching – asking, listening, and empathizing – you become a transformative leader, helping both candidates and hiring managers achieve their goals.

My final thoughts to win the day:

Great recruiters are great coaches. They move away from simply filling roles to becoming true partners in the talent acquisition process. By asking insightful questions, they uncover deeper needs and motivations. They listen actively, building trust and rapport. And they empathize genuinely, creating a safe space for open communication. This coaching approach leads to better candidate experiences, stronger hiring manager relationships, and ultimately, more successful placements. In the modern recruiting world, the ability to coach is not just a skill – it’s a strategic advantage.