Connect with us

Real eState

The Evolution Of A Real Estate Agent – Forbes

Published

 on


Getty

“Messy” could be the perfect word to describe a successful real estate broker in the 1980s. And one would take pride in being messy, for brokers worked with listings cut directly out of the newspaper and had all the available listings printed out and displayed on a wall. It was a sort of art. The printed listings would be filled with Post-its and would (mostly) be removed once the apartments were gone. The landline phone (extension included) was an agent’s best friend, and walk-in clients were widespread. For the most part, real estate agents (and their clients) have since evolved.

From ‘Early Bird Gets The Worm’ To ‘Work Smart And Hard’

Being the first agent at the office is not enough. Today, agents are expected to be good at marketing, networking, real estate and technology. Not having any one of these skills means falling behind.

Having all agents work from the office is now becoming a thing of the past, as customers often prefer calling agents directly on their cellphones, and many agents prefer to work from home. To add to this, brokerages nowadays tend to operate on slim margins and have significant bills to pay, so agents are sometimes encouraged to work from home and use the tools at their disposal.

But the flexibility of working from home comes at a price. Agents now have to take care of most of their marketing expenditure to get new clients and must step up their game when it comes to technology. Advertising platforms now include social media as well, making it harder for agents to figure out a strategy that makes financial sense for them.

To be a successful agent today, you need referrals, which means that it is more important than ever to end up with a happy customer who will be willing to tell their neighbors and family all about you. So as an agent, you want to get your clients an excellent apartment and create a pleasant, more holistic experience in their search for a place in the city.

Real Estate Is A Vocation, Not A Vacation

Learning that real estate has to be done full-time for an agent to succeed can be a harsh lesson. Have you ever asked yourself why brokerages don’t invest more in their agents’ education? The harsh truth has two words: agent turnover.

As the cofounder and CEO of a listings platform in which agents advertise rental apartments in New York, I can share with you that the most frequent reason for an agent deleting their account with us is because they’re no longer doing real estate. This fact is astounding to me. Agents who leave their companies or brokerages most often do so because they’ve simply moved on from real estate. Managers may not be willing to spend much on their agents’ education because, from a statistical standpoint, their probabilities of retaining an agent long enough for the training to pay off are very slim. Even worse, there’s always the possibility of investing in an agent’s education only to see them go work for a competitor a few days later.

Moving In The Right Direction

It was not so long ago that people didn’t require a license to be compensated for acting as a real estate agent. Today, there are tens of thousands of real estate salespersons in New York City alone. Yes, we moved one step forward by requiring special education to become an agent, but there’s still more to be done.

In the future, it would be interesting to see more requirements and commitment needed to become a real estate agent, so that customers can interact with fewer, more knowledgeable agents who are committed to finding them a place to call home. We’re moving slowly, but in the right direction.

Real estate agents will continue existing for a long time; their roles, however, are rapidly evolving into ones in which they’re expected to know their market, be tech-savvy and take risks. Missing any of these skills will pose a threat to their survival. The silver lining for those active agents who can acquire a healthy dose of each skill is that the industry will naturally filter out those who don’t add consumer value, leaving fewer but more capable real estate agents.

Let’s block ads! (Why?)

728x90x4

Source link

Continue Reading

Real eState

Former B.C. Realtor has licence cancelled, $130K in penalties for role in mortgage fraud

Published

 on

The provincial regulator responsible for policing B.C.’s real estate industry has ordered a former Realtor to pay $130,000 and cancelled her licence after determining that she committed a variety of professional misconduct.

Rashin Rohani surrendered her licence in December 2023, but the BC Financial Services Authority’s chief hearing officer Andrew Pendray determined that it should nevertheless be cancelled as a signal to other licensees that “repetitive participation in deceptive schemes” will result in “significant” punishment.

He also ordered her to pay a $40,000 administrative penalty and $90,000 in enforcement expenses. Pendray explained his rationale for the penalties in a sanctions decision issued on May 17. The decision was published on the BCFSA website Wednesday.

Rohani’s misconduct occurred over a period of several years, and came in two distinct flavours, according to the decision.

Pendray found she had submitted mortgage applications for five different properties that she either owned or was purchasing, providing falsified income information on each one.

Each of these applications was submitted using a person referred to in the decision as “Individual 1” as a mortgage broker. Individual 1 was not a registered mortgage broker and – by the later applications – Rohani either knew or ought to have known this was the case, according to the decision.

All of that constituted “conduct unbecoming” under B.C.’s Real Estate Services Act, Pendray concluded.

Separately, Rohani also referred six clients to Individual 1 when she knew or ought to have known he wasn’t a registered mortgage broker, and she received or anticipated receiving a referral fee from Individual 1 for doing so, according to the decision. Rohani did not disclose this financial interest in the referrals to her clients.

Pendray found all of that to constitute professional misconduct under the act.

‘Deceptive’ scheme

The penalties the chief hearing officer chose to impose for this behaviour were less severe than those sought by the BCFSA in the case, but more significant than those Rohani argued she should face.

Rohani submitted that the appropriate penalty for her conduct would be a six-month licence suspension or a $15,000 discipline penalty, plus $20,000 in enforcement expenses.

For its part, the BCFSA asked Pendray to cancel Rohani’s licence and impose a $100,000 discipline penalty plus more than $116,000 in enforcement expenses.

Pendray’s ultimate decision to cancel the licence and impose penalties and expenses totalling $130,000 reflected his assessment of the severity of Rohani’s misconduct.

Unlike other cases referenced by the parties in their submissions, Rohani’s misconduct was not limited to a single transaction involving falsified documents or a series of such transactions during a brief period of time, according to the decision.

“Rather, in this case Ms. Rohani repetitively, over the course of a number of years, elected to personally participate in a deceptive mortgage application scheme for her own benefit, and subsequently, arranged for her clients to participate in the same deceptive mortgage application scheme,” the decision reads.

Pendray further noted that, although Rohani had been licensed for “a significant period of time,” she had only completed a small handful of transactions, according to records from her brokerage.

There were just six transactions on which her brokerage recorded earnings for her between December 2015 and February 2020, according to the decision. Of those six, four were transactions that were found to have involved misconduct or conduct unbecoming.

“In sum, Ms. Rohani’s minimal participation in the real estate industry as a licensee has, for the majority of that minimal participation, involved her engaging in conduct unbecoming involving deceptive practices and professional misconduct,” the decision reads.

According to the decision, Rohani must pay the $40,000 discipline penalty within 90 days of the date it was issued.

 

728x90x4

Source link

Continue Reading

Real eState

Should you wait to buy or sell your home?

Published

 on

The Bank of Canada is expected to announce its key interest rate decision in less than two weeks. Last month, the bank lowered its key interest rate to 4.7 per cent, marking its first rate cut since March 2020.

CTV Morning Live asked Jason Pilon, broker of Record Pilon Group, whether now is the right time to buy or sell your home.

When it comes to the next interest rate announcement, Pilon says the bank might either lower it further, or just keep it as is.

“The best case scenario we’re seeing is obviously a quarter point. I think more just because of the job numbers that just came out, I think more people are just leading on the fact that they probably just gonna do it in September,” he said. “Either way, what we saw in June, didn’t make a big difference.”

Here are the pros of buying/ selling now:

Pilon suggests locking in the rate right now, if you don’t want to take a risk with interest rates going up in the future.

He says the environment is more predictable right now, noting that the home values are transparent, which is one of the benefits for home sellers.

“Do you want to risk looking at what that looks like down the road? Or do you want to have the comfort in knowing what your house is worth right now?” Pilon said.

And when it comes to buyers, he notes, the competition is not so fierce right now, noting that there are options to choose from.

“You’re in the driver seat right now,” he said while noting the benefits for buyers.

Here are the cons of buying/ selling now:

He says one of the cons would be locking in the rate right now, then seeing a rate cut in the future.

The competition could potentially become fierce, if the bank decides to cut the rate further more, he explained.

He notes that if that happens, the housing crisis will become even worse, as Canada is still dealing with low housing inventory.

An increase in competition would increase the prices of houses, he adds.

Selling or buying too quickly isn’t the best practice, he notes, suggesting that you should take your time and put some thought into it.

Despite all the pros and cons, Pilon says, real estate remains a good investment.

According to the latest Royal LePage House Price Survey for the second quarter of this year, the average home price in Canada is $824,300. That’s up 1.9 per cent from the same time last year, and up 1.5 per cent from the first quarter of 2024.

In the Ottawa Housing Market Report for June 2024, the average price of a home was up 2.4 per cent from this time last year to $686,535, but down 0.6 per cent from May 2024.

Experts believe many potential buyers are still hesitant of jumping into the housing market and waiting for another interest rate cut of 50 to 100 basis points.

“I don’t think it’s going to be the rush that we see in the past, because people are used to more of a conservative approach right now,” said Curtis Fillier, president of the Ottawa Real Estate Board. “I think there’s still a bit of a hold back, but I definitely do think with another rate cut, we’ll probably see a very positive fall market.”

With files from CTV News Ottawa’s Kimberly Fowler

 

728x90x4

Source link

Continue Reading

Real eState

Real estate stocks soar to best day of year on rate cut bets

Published

 on

(Bloomberg) — The stock market’s worst group notched its best day of the year as a cooler-than-expected inflation report stoked bets that the Federal Reserve will start cutting interest rates in September.

Shares of real estate companies jumped 2.7% Thursday for their biggest gain of 2024, climbing to their highest level since March as investors snapped up homebuilder, digital and commercial real estate stocks alike. Real estate also was the best-performing group in the S&P 500 Index Thursday, with volume that was around 30% higher than the 30-day average, according to data compiled by Bloomberg.

Arguably the most significant news to come from the latest consumer price index reading was a pullback in housing-related inflation. Shelter costs rose just 0.2% for the slowest monthly increase in three years. Homebuilders, which have risen 7.1% this year, were up 7.3% for the session, the most since 2022. Shares of D.R. Horton Inc., which is scheduled to report earnings next Thursday, gained 7.3%.

“Housing has really been the last shoe to drop in terms of winning the battle against high inflation,” Preston Caldwell, chief U.S. economist at Morningstar wrote in a note to clients Thursday. “Leading-edge data has strongly indicated for some time now that a fall in housing inflation was in the works.”

A rally in real estate stocks is bad news for short sellers who have been piling into the group, which is the worst performer in the S&P 500 this year. To start the week, short interest as a percentage of float hovered near 49% in the SPDR Homebuilders ETF, the highest level since February for the exchange-traded fund, according to data from S3 Partners.

Property owners are rallying as well. Real estate investment trusts, which were brutally penalized during the two-year run up in borrowing costs, advanced by as much as 3%. And the outlook for the group appears to have turned a corner, according Rich Hill, senior vice president and head of real estate strategy and research at Cohen & Steers Capital Management.

“We think this is a compelling backdrop for listed REITs especially as fundamental growth remains on solid footing,” he said, referencing the latest inflation data and rate outlook. “The rally that started in October of 2023 pushing returns more than 20% above their trough looks set to continue if inflation cools and interest rates continue to decline.”

Shares of industrial REIT Prologis Inc., which reports second-quarter results on Wednesday, rose 3.3% to hit their highest level since April. U.S. Treasury yields tumbled, with the 10-year bond falling to 4.2% and the policy-sensitive two-year note slipping to 4.5%.

(Updates indexes and stock prices for market close.)

 

728x90x4

Source link

Continue Reading

Trending