Month: March 2019

How to Recruit the Best Agents for Your Firm

Anne Hartnett Leave a comment

Having a real estate brokerage that is both efficient and successful is essential in improving sales and generating leads. Recruiting top talent is one of the most helpful ways to both delegate work load in order to free up your own time, but also to build up your company’s reputation.

This blog will explain the best practices to take in recruiting agents to your firm. You’ll see report findings from Engel & Völkers on what agents like best about their brokerages as well as tips on how to make appropriate offers to your new talent.

Mostly Satisfied

In a survey done by Engel & Völkers Americas, agents expressed overall satisfaction in their current state of employment. The company’s State of Real Estate Recruiting report found that around 96 percent of agents are satisfied, with 94 percent stating that they would remain at their brokerage for another year. Furthermore, 90 percent of agents said they would recommend their brokerage to other agents.

However, even with satisfaction rates in the nineties, 35 percent of agents stated that they consider leaving their brokerage at least once a year. Some of the top reasons for leaving include searches for better commission splits, increased lead generation opportunities and greater benefits.

Indeed, 38 percent of agents say they would leave their current brokerage for better commission splits. These are agents who are looking for a way out, and could possibly make a great addition to your own firm.

How to Appeal to Great Agents

One of the first things a managing broker should do to recruit top talent is to conduct research on agents they want to target. This is key to attracting them as well as in sorting out any agents who do not fit your needs or may be underperforming.

#1. Do Your Research

The Engel & Völkers report suggests brokers “thoroughly research these agents, and certainly before meeting with them have an understanding of their production level, style of doing business and reputation in the industry.”

#2. Provide Support and Leads

Kelly Stephens, vice president and managing broker at Engel & Völkers Atlanta North Fulton and Engel & Völkers Buckhead Atlanta, found that the two main things agents are looking for are support and leads.

#3. Location Matters

Location also matters for agents, with 72 percent stating they prefer to work in a brokerage with a physical office space. The report also notes that it’s important for managing brokers to highlight some of the other benefits, aside from splits, that agents will receive or lose by switching.

#4. Be Transparent

Being both transparent and upfront about your offerings is key in appealing to the best agents for your team. The way that you personalize your recruiting efforts to match the profile of the agent you hope to attract is key.

#5. Craft the Right Message

The report goes on to state, “Recruiting top talent is not something that will happen without a brokerage’s concerted effort into reaching prospects with the right message that will resonate.” The way that you reach out to these prospective agents will show them that you are doing in-depth research in the effort.

To learn more about building an efficient and successful team of real estate agents and other fundamental skills on running your business, start your seven-day free trial of AgentEDU and gain access to our “Team Building” course.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.

Mortgage Rates and the Market

Anne Hartnett Leave a comment

Mortgage rates are a factor for both buyers and sellers, which means agents need to be aware of what they’re doing on any given week. However, focusing too much on what economists or the news media say can throw you off track.

This blog explains the impact that lower mortgage rates have in fueling housing market optimism.

Solid Ground

One of the factors of there being such optimism for the 2019 year in regard to the market is the fact that mortgage rates are at their lowest levels in 10 months. This comes even as many economists and mortgage lenders were warning of higher interest rates in 2019.

Spring Buying Gets a Push

With the recent downtrend in rates and extra inventory opening up, the spring homebuying market will have an extra push. Freddie Mac Chief Economist Sam Khater stated that “the U.S. economy remains on solid ground, inflation is contained and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down.”

Mortgage Rates Are Stable

Mortgage rates stood at an average APR of 4.41 percent on the standard 30-year fixed-rate loan, just 0.09 above last years’ levels, according to a February report by Freddie Mac.

Consumer Bargaining Power is High

Khater goes on to mention that today’s buyers have a larger selection of homes on the market as well as more consumer bargaining power than they’ve had in the last few years. Couple that with these low mortgage rates and there could be an early rally for the spring housing market.

Economists Eye the Fed

A key component in the market is what actions the Federal Reserve will make. In late 2018 there were signs that the Fed was going to continue raising rates, and some economists estimated at least three rate increases for 2019.

However, economic data gave Fed chair Jerome Powell cause to rethink that idea. Now a recent survey of economists done by the Wall Street Journal shows that most don’t expect a rate hike before June.

Furthermore, most economist agree that there will likely only one more rate hike, probably in late 2019. This will effectively keep borrowing costs much lower than previously anticipated through 2019 and 2020.

Borrowing costs hinge on forward-looking indicators such as Fed meeting minutes and the consensus of economists, so reduced expectations on rate hikes for 2019 may keep mortgages more affordable for the first half of the year. However, there is a good deal of uncertainty baked into every economic forecast, so even expert consensus may not be a reality.

Keeping Focus

Given the uncertainty, it’s key to be a levelheaded. It’s never a good idea to rely 100 percent on what an economist says MAY happen in the future is a good move. Being informed but also taking the information given with a grain of salt will put you more at ease and allow you to properly respond to the housing market.

 The real estate market has many indicators to look at and factors that play a role. Being in the know and taking note of the trends is key in planning the road ahead. For more valuable tips and tactics on mortgage rates check out our AgentEDU course dedicated to Mortgage rates. You can start with a seven-day free trial and gain access to the “Real Estate Mortgage Basics” course.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.