Provoking, flipping and dropping bombs (Inman Connect Speed Wrap)

This article was originally published on Inman News:
by Sam DeBord

Last week was Inman Connect in San Francisco, one of the best events of the year (and no, not only for the parties).

I’m writing to you from a campground in the Cascade mountains, so I’ll try to wrap up a lot of content quickly.

Bots taking over

Connect is always looking for the leading edge of tech. Bots are right at our fingertips.

Amazon’s Alexa was on stage at #ICSF answering Brad Inman’s questions — the way lead management software will in the near future.

A number of companies are already providing a combination ofhuman/bot lead conversion that works for agents while they sleep. Those conversations are digitally stored.

The human concierges likely won’t last long. Machine learning and that database of interaction analyzed against conversion rates will create a finely tuned sales bot in no time.

It won’t replace the agent in the transaction, but it could replace the inside sales lead conversion/appointment setter. I’d hire one. (And this week, Inman launched its own bot for readers, too.)

The software has eyes

Speaking of machine learning, RealScout has nailed it. Millions of human eyes interpreting real estate images have been transformed into a software intellect.

The machine can read images more accurately than its human counterparts. It sees the open layout and the box beams, even if the agent doesn’t identify them in the listing.

Consumers use natural language search and enjoy a curated discovery process, free of the artificial constraints of archaic code.

This is where the real estate experience improves. MLS and agent/broker inefficiencies are overcome by intelligent investment. Technology and capital come together to add value to the process.

We need more of this.

‘MLX > MLS’

That headline on W + R Studios’ website might be unnecessarily provocative, but that’s pitchman Greg Robertson’s style. Cloud MLX won the Inman Innovator Award, and it’s better than any MLS interface I’ve seen.

Like RealScout, it breaks free of traditional MLS search constraints.

With instant search suggestion feedback and past favorites/saved searches built into real-time interaction, the user’s efficiency grows with continued use. It’s a secondary or complementary MLS interface (there’s no “add/edit” listing feature). For now, it’s not a direct competitor to the big primary MLS providers.

This company is doing CMAs better than MLSs. It has better listing alerts. Now it has a superior user interface. What’s next?

The arms race

Congrats to the entrepreneurs who are being acquired in this bubbly market. Commissions Inc, a little startup out of Atlanta, sold for $250 million. That’s one-quarter of what News Corp paid for Move/realtor.com.

Leads and customer management software are still the story, no matter how many speakers try to shout it down.

Bridge Interactive Group was just acquired by Zillow. If you’re not familiar with them, have a look at their services, then look at Project Upstream’s. There’s no cold war here, just some friendly comrades building agent tools and ad platforms.

 

Bridge Interactive Group

 

Flips, bidding wars, and discounts

There are a lot of new business models getting airtime at Connect.

Haus is a bidding war platform that promises transparency. The legend is that an Uber founder got angry when he was outbid on a home, so he started a new company where everyone can see everyone else’s offer.

It’s going to be as hot as the taxi business. The potential user base is sellers in hot markets who want to give away their strategic advantage. Why would listing agents encourage their sellers to dump their informational leverage? How did this question not come up immediately to the founders?

Knock is another startup. It flips homes by giving sellers a guaranteed price. The property is listed publicly, and either Knock buys it at the pre-arranged price, or the seller gets a premium if it sells for more to another buyer. Knock takes some kind of fee, which should be front and center on its website but isn’t.

Transfer taxes limit some flip models. They can be up to 2 percent of the purchase price. In a traditional flip with two sales, that 4 percent really squeezes the profit margins.

Opendoor is taking a strategic approach by traditionally buying/reselling flip homes in states with low/no transfer taxes. They’re pretty successful so far. Homeowners are willing to forgo the money available on the open market for a guaranteed price/easy closing. It will be interesting to see if they can scale in other states.

I have an uneasy feeling about how well these sellers are informed about the value of their homes. It’s one of those uncomfortable topics like pocket listings: consumers have free choice, but the quality of advice they receive from their advisers has a great effect on those choices.

SoloPro came to talk about its limited-service model. It embodies the philosophical disconnect between many outsiders and industry insiders.

The company “unbundles” real estate services. Its marketplace lets consumers meet licensees for flat fee, discount services. Open a door for X dollars, write an offer for Y dollars, Agent Z who happens to be available today will serve your needs.

The agency relationship can’t be dismembered without losing value. Piecemeal representation is lesser representation. Continuity creates value. Inexpensive is sometimes just cheap.

Hobbled-Leigh

You’d think the cast Leigh Brown had to lug around as MC of Connect would have slowed her down, but she came out swinging. Her performance was edgy and smart, in classic Inman style.

In a departure for Connect, she pitched politics and the Realtor PAC from the stage. Some cheered, some grumbled.

This is a pretty simple one, folks. You might not like politics, but we all enjoy the extra money RPAC is putting in our pockets. Anyone who sells, owns or vends to those who do, is benefiting from those carrying the water.

Dropping bombs

I don’t mind when speakers use off-color language, but it’s painful when they don’t know how to wield it. It’s a lot like a weapon. If you’re going to take it on stage, you’d better have a really good (expletive) handle on it.

A few wannabe gunslingers put us all through some pain last week. Don’t be one of them. If you’re not sure, don’t try it.

Startup Alley

Agents don’t want more tools. They want fewer, better tools, and First promises that.

Instead of adding a new CRM, First simply monitors a user’s social networks. Using predictive analytics, its algorithm identifies moments in your sphere’s lives that may signal a move. The agent is alerted to make contact.

Just keep doing what you’re doing on social media and your vendor will do the rest. We need more of this: horsepower on the back end, simplicity for the user.

Unsolicited advice

I’m always struck by the number of entrepreneurs that appear to not have sought broad guidance before launching. There are some really smart folks who could simply sit down with some savvy brokers and agents to find out that their product is functionally obsolete in this industry.

They might save themselves the first failure or pivot.

This isn’t about discouraging innovation. Push the edge, but first ask a few people if it’s just a cliff.

It’s not just the old stodgy guard that’s saying your product/model won’t work. It’s often someone who wants you to improve the experience but can already see what you can’t.

We just might save you a lot of time and money.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County Realtors. You can find his team at SeattleHome.com and SeattleCondo.com.

How long can aging agents dance on the bar?

This article was originally published on Inman News:
by Sam DeBord

  • “Raise the bar” is more bullhorn than boots.
  • Incremental change is insufficient.
  • International regulation should focus our industry on prompt action.

I’ve been trying to write this for some time, but it’s difficult to put a positive spin on it. I’ve put it back on the shelf a half dozen times, but after having a chat with Brad Inman in Seattle this week, I thought: “This is Inman. Just let it rip.”

So, here goes:

The real estate industry has a perpetual ritual. It’s titled “raise the bar.” After a decade of observing it, I wonder whether it’s a choreographed song and dance rather than a call to action.

The lyrics come from rote memory: “More education! More training! Higher barriers! It’s too easy to sell real estate!”

Self-flagellation follows: “There are too many bad agents. It’s our fault. It’s our brokers’, our licensing boards’, our associations’ fault. Mea culpa, mea culpa, mea maxima culpa.”

Feeling relieved to have aired our indignation, we return to the status quo until next year’s performance.

Paved with good intentions

To be fair, expressing our desire to better our industry is valuable. There are many people who have devoted their efforts to improve our practitioners.

That the progress is so slow is perplexing, though. With countless voices proclaiming to be the prophets of professionalism, there are far too few putting those words into action.

“Somebody should do something.” This is our usual unenforceable delegation. The National Association of Realtors, brokers, the state licensing board — someone else should raise the bar and shrink the pool of ill-equipped agents.

I’ve had the privilege of sitting through the conference calls and meetings with committees, task forces and licensing boards that intend to raise real estate standards. There’s a revolving door of well-intentioned people who express their viewpoints but won’t endure the process.

There’s little continuity. Little moves forward. The stalwarts become jaded and begin to give up (mea culpa). The bar remains the same. More untrained agents get licenses, write contracts and balloon the already overcrowded rolls of consumer complaints-in-waiting.

 More agents, not fewer?

A counter-narrative to the overpopulation of agents has popped up recently. It strikes me as bizarre, and it goes something like this:

There’s a problem with the aging population of agents. The boomers will retire, and we won’t have enough knowledgeable practitioners available. The public will be underserved. Unfit entities will fill the void.

The real estate market must be booming if this is our current concern. There are roughly 1.5 million agents today. There are 5 million homes sold annually.

Retiring agents will train their successors. Larger, more efficient teams will take up the slack for those that don’t. If we cut the agent population in half, we’d still have plenty of manpower to handle consumer demand.

The demographic trends are an interesting study. The aging population won’t create a shortage of competent agents, though. Let’s put that distraction to bed.

NAR membership: Crutch or benefit?

There’s also been talk of NAR’s compulsory membership being an impediment to its members. Its revenue would suffer if it supports barriers to membership that reduce headcount.

It could, however, gain a more selective group of members as its distinguished Realtor representatives, according to a thought-provoking piece by Russ Cofano. If NAR didn’t compel membership, maybe only the best and brightest would rise to the top, uniquely identified as Realtors for all consumers to see.

That’s an engaging topic for the trade association. It won’t change the landscape of the overall sales force, though. We will only improve the industry’s reputation by creating standards that ensure all salespeople, Realtor or not, have the proper training and experience to do business with the public. If that means fewer members and fewer licensees, so be it.

Winter is coming

If we needed a wake-up call, the winds of change are storming in from the North. British Columbia, Canada, is attempting to put its real estate industry into a regulatory stranglehold. Canadian real estate has been dancing on the bar as long as we have. The Crown is tired of waiting for it to get down.

Rob Hahn put together a thorough breakdown of the potential changes. The regulations potentially placed upon B.C. real estate practitioners and the powers stripped from their associations would be sweeping.

Whether those winds spread to the U.S. is still in question. That we should be prepared for the possibility is not.

The essence of the government’s argument is that the real estate industry was allowed to self-regulate. It was given time to work out issues. It failed to act.

Our regulatory environment is significantly different, but we’d be foolish to ignore the implications.

Raise the bar: Brass tacks edition

We have reasons to improve. We have the motivation to improve. So, what would it take to discourage the hobbyist agent from dabbling in real estate?

Incremental changes won’t work; 200 hours of annual education isn’t enough. We all know about those online education schools (wink, wink). Licensing fees of $1,000 aren’t enough; $5,000 Realtor dues might not even be enough. Agents can make five-figure commissions on a single transaction. Two to three sales a year is a significant second income for many.

Higher education requirements and fees are popular suggestions, but they miss the point. Only training and on-the-job experience teach an agent how to run a business and act like a professional.

Mandated mentorship

A required apprenticeship would be a beneficial barrier and a boon to the real estate sales profession. It’s not a new idea, but it’s one that is usually passed over for easier so-called fixes. That’s probably because this kind of radical change would require immense, broad support.

Before licensees ever work solo with a client, they should work as an apprentice to an experienced agent for a significant length of time.

This isn’t a manager signing off on contracts. It’s a mentor required to train an apprentice in the full world of real estate. That’s more than paperwork. It’s interacting with clients and customers, marketing, business building, conflict resolution, etc.

Of course, this won’t affect the legions of hobbyists who already have licenses. When you’re in a flooding boat, though, your best bet is to plug the leak before bailing water.

Boots on the ground

Are we dancing or are we lifting? Our actions will make the answer clear. If you feel the need to talk about raising the bar, take the next step.

Engage your local Realtor association, your MLS board, your brokers and your managers. Prepare for a long haul. It’s not glamorous, but it’s necessary.

The irony doesn’t escape me — I’ve been dancing while you’ve been reading.

So I’ll shake off the cynicism and get back to work. I hope to see you there.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County REALTORS. You can find his team at SeattleHome.com and SeattleCondo.com.

Seattle home prices surge more than 10% as supply struggles to meet demand

This article was originally published on WSJ Marketwatch:

The inventory of homes for sale has finally begun increasing a bit in the Seattle real estate market. In King County, the supply of available homes has been at less than two months for nearly two years. For most of 2016, inventory has hovered around one month’s supply.

In April we saw residential real estate inventory bump up from 1.1 months to 1.3. That 18% gain is nothing to dismiss, but it’s one drop in a very large bucket that needs to be filled to give home buyers some breathing room. It’s not enough to satiate the local population hoping to purchase a home, let alone the influx of tech workers moving to the Seattle region. Amazon, Facebook, Google, Nintendo, Microsoft and many others are in a talent-spending competition that rivals any tech hub nationally.

At issue for the region are the burdensome condominium construction regulations, lack of mass transit options and a deficiency of high density housing near the transit centers that exist today. Until the region begins to plan and grow like the big city Seattle is becoming, prices will continue to rise quickly.

Luckily, interest rates continue to keep homes relatively affordable. Home buyers today are spending a significantly smaller share of their income for mortgage payments than they were during the last Seattle real estate boom.

Prices will, at some point, start to squeeze the affordability of payments if the current rate of price appreciation continues. The median single-family home sale price in King County was $537,000 in April. That’s up 10.9% from the same time last year when the median was $484,000.

Condos sit in an even more extreme position. Inventory is at 0.9 months of availability. Buyers are gobbling up listings faster than they’re coming on the market.

Seattle condos months of inventory, median sale prices

The median King County condo sale came in at $315,000 last month. That’s a 13.8% year-over-year increase. Condos seem particularly attractive to the newer residents in the Seattle market who have often relocated from urban areas in larger cities. The Seattle real estate market just isn’t keeping up with that demand and is, in fact, falling further behind by the year.

Antidevelopment advocates will say that we can’t build ourselves out of this problem. There is always a contingent in a city that wants everything to remain as it was. There’s no stopping the economic growth in Seattle, though, unless we allow our housing shortage to become so severe that businesses decide we’re no longer a financially viable location.

That would be a real shame. The real estate ecosystem in greater Seattle has to be built on a long-term strategic plan to accommodate smart growth in infrastructure for housing and transportation.

Long-term double digit growth isn’t sustainable without significant stratification of a community. As we head into another year of 11% and 14% gains in Seattle real estate prices, it’s time to focus on acting now.

(Statistics via Northwest MLS. The NWMLS did not compile or publish this information.)

Artificial Intelligence (AI) in real estate: Negating or monetizing an agent’s experience?

This article was originally published on The Real Daily:
by Sam DeBord

Have you ever emailed or texted someone, and subsequently opened Facebook on your phone to immediately see that person in your news feed?

You read the entire terms of service when you downloaded that app, right? So you remember agreeing to every bit of your phone’s hardware and software recording and interpreting the signals that your everyday actions are creating (just nod your head yes—it’s watching you right now).

Artificial Intelligence is seeing tremendous growth in consumer-driven industries. It is the ability for software to learn and adapt to consumer behavior via live feedback. Cars, websites, wearables, and apps are becoming more intelligent and adaptable.

We’re seeing huge advances in the affordability of AI software that match the exponential growth of hardware’s computing power.

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Simultaneously, human labor in developed countries is increasing in cost. Minimum wage laws, increasing liability, and rising health care costs are pushing employers to replace labor with technology. McDonald’s employees become kiosks that order Big Macs. Chase Bank tellers are replaced by apps that scan and deposit checks. Companies like Circuit City and Borders Books shutter their stores as websites more efficiently serve their customers.

How AI intersects with RE

Intelligent software has massive potential for creating technology that changes labor markets. Real estate labor is a natural target, and a couple of recent pieces got the ball rolling this past week.Russ Cofano penned a broker outlook that viewed “cognitive computing” not as a threat to labor, but an asset to the baseline of real estate’s agent intelligence:

“So here’s the question. What if cognitive computing enables agents to be better professionals and make better recommendations to their clients? What if access to cognitive computing power, and the data necessary to power it, becomes the 21st century equivalent of the MLS utility?”

Further, Cofano states, “Cognitive computing has the potential to add massive value to the real estate brokerage value proposition and do for agent professionalism what no other initiative could touch.”

While the piece focused on the superior delivery mechanism (Upstream vs. the MLS), it provided support to the idea that brokers could adopt intelligent data systems to improve agent capabilities industry-wide.

Not surprisingly, a different take came from Rob Hahn, focused on the costs of repetitive labor and the likely evolution:

“The $6 billion question is where real estate brokerage services fit in the spectrum of services if we put McDonald’s order-taker on the one extreme and the Chief Engineer of Nuclear Fusion Reactors on the other extreme in terms of specialized skill and knowledge.

I think most of my readers know the answer. Real estate is far, far closer to McDonald’s than it is to McDonnell-Douglas.

…rote procedures and manual inputs are being displaced by technology. Why would it be any different for the rote procedures and manual inputs in the real estate business?

Answer: it won’t.

Those real estate agents who survive will have to be ‘upskilled’ and focus on niche areas or ‘be equipped to handle smart systems.’”

Comparing two views on AI

So we have two very different views of software intelligence’s effect on real estate agents. In one, brokers might adopt cognitive computing measures to improve agents’ core capabilities to serve consumers. They improve and survive as a unified group of forward-thinking adopters.

In another, AI wipes away the entire foundation of repetitive services performed in real estate. This debases the masses of agents and eliminates the need for their services. It leaves only the specialized practitioners above water when it’s done.

It would be remiss of me to gloss over the McDonald’s analogy. The skills that allow agents to survive in their occupation can’t be crammed into a single linear comparison. It seems prudent to point out that the comparison of rocket scientists, real estate agents, and Egg McMuffin order takers should be complex.

In recent real estate history, replacing a repetitive procedure in the sales process with software has simply changed the sales process. It hasn’t removed the sales person. There are graveyards full of real estate labor would-be disruptors who have a poignant understanding of that history.

artificial-intelligence-REAL-ESTATE

The intrinsic skills that keep real estate agents strongly entrenched in the industry seem to center on two things:

  • Personalized intelligence (unique local knowledge, negotiation, transactional experience)
  • Personal relationships (emotional IQ and sphere building)

The latter is almost invariably ignored in real estate labor disruption conversations, yet it’s probably the single greatest barrier to disruption. People list with people. Sellers’ top three requirements for a listing agent are reputation, honesty, and trustworthiness.

AI is the intrusive stalker in your phone. Thelma is the amazing woman who comes to book club and walks with you on weekends. H.A.L. 2000 can’t touch her in terms of trust. This should be the overriding theme of every disruption conversation.

On to bottling knowledge

In the future, personalized intelligence might be a different story. If part of the value of exceptional agents comes from what they know from experience, the way they negotiate, and how they interact with clients, how much of that could be learned by an exceptional AI platform?

Could exceptional agents allow themselves to be profiled by their devices and capture that intelligence to monetize it? Would brokers be able to conglomerate the practices and intelligence of their best agents to provide a unique set of processes for their agents and answers for their clients that aren’t available to the general public?

It might not be as crazy as it sounds. Think about the vast amount of information that could be gleaned from one agent over a single year with all of his/her devices in “AI learn mode.” Spoken word, tone, movement, visual cues, timing, location data, digital communication, social engagement, contract negotiation—all of these and more could be processed into a database describing when, where, and how top agents interact with their environments to close more sales transactions.

Who owns the AI?

While the aforementioned could be done on an industry-wide basis to inform brokers as a whole, it might also be led by savvy top producing agents or brokers who would profit from it as a differentiator. Melded with predictive analytics on consumer behavior and market statistics, the right set of personalized intelligence could tell an agent when and where to meet a consumer, and how to begin interacting with that person to provide a greater likelihood of a client and a sale.

Of course, until personality can be direct-ported into the agent’s brain, we still need a human with emotional IQ to show up and close the deal. The creation of a relationship might be initiated by data, but it’s going to be sealed with emotion.

ThelmaRealtor software version 2.5 could be an AI profile that’s sold to brokers or new agents as a foundational of intelligence for their careers. Whether these benefits and profits go to the real Thelma, her brokerage, or the industry depends on who adopts the technology first.

Back to the people

If that’s all a bit too much sci-fi, let’s get back to the basics. There are huge opportunities for the brokerage community to leverage greater technology and AI to improve how they do business. Those that do will have valuable differentiating tools and skills.

Still, Thelma v. 2.5 isn’t going to wipe out the physical agents on the ground. Technologists with armies of software agents will continue to stare at screens, while real life agents are cementing unbreakable relationships with real people. Consumers will work with agents they view as trustworthy, no matter what amazing intelligence is dangled in front of them by H.A.L. 2000 Realty.

It’s true that consumers want more intelligent real estate transactions. Before that, though, they want trust. AI has great prospects for helping brokers and agents improve their business intelligence, but it’s not going to take the human element out of the transaction any time soon. The real Thelma’s role may change, but she still owns the most valuable, subjective, and defensible portion of the real estate transaction: the relationship.

Will ‘smart contracts’ replace real estate closers?

This article was originally published on Inman News:
by Sam DeBord

Key Takeaways

  • Criminals are taking advantage of poor security in real estate transactions to defraud buyers.
  • Security holes in the real estate transaction could be fixed with verification software.
  • The role of a closing agent could be drastically altered with smart contracts taking over verification.

Most of a real estate closing revolves around trust and verification. Buyers and sellers use trusted intermediaries to verify that properties, funds, contractual obligations and insurance safety nets are all properly vetted before closing a sale.

That’s part of the reason a real estate transaction has so many participants. Agents, lenders, inspectors, title insurance providers, notaries and closers provide independent verifications of individual facets of a sale. An escrow company or an attorney is usually the organizing force that pulls these individual points of verification into one trusted transaction.

Security is lacking

The security of the current process is weak at best. Homebuyers are frequently being robbed of their purchase funds. By simply hacking an agent or closer’s email account, criminals have put themselves in control of the closing communication.

The hackers spoof the closer’s email, ask the buyer to change the wire instructions, and the funds roll into an unverified bank account. By the time the buyer realizes what has happened, the money has been laundered overseas through multiple wire transfers. It’s gone.

Software security to replace human fallibility?

This kind of real estate fraud is possible because of a reliance on unsecure, disjointed communication methods. The purchase process has no safety envelope. It lacks a seamless layer of overriding security that verifies each sale condition throughout the process.

What if software could replace the parts of the closing process that rely on human verification for security? Smart contracts aim to do just that.

Imagine a digital contract that independently verifies every step in a real estate sale including the identities of the buyer and seller, the funds sourcing, the lender sign-off, deposits, property title transfer and delivery of payoffs to sellers and lien holders.

Before getting into the technical details, let’s look at the roles of an escrow closer or an attorney in the closing process.

Closing functions that could potentially be replaced by secure software:

  • Administration of transaction as a neutral third-party
  • Control of earnest money funds
  • Verification that proper paperwork is in place
  • Examination of title for liens, judgments, mortgages, clouds
  • Ordering of title insurance policy
  • Pro-ration and transfer of property tax and utility bills
  • Preparation of closing documents
  • Administration of signing appointment
  • Transfer of purchase funds to sellers and lien holders
  • Recording of deeds with local government

Closing functions in which human input may trump intelligent software:

  • Live verification of personal identity
  • Explanation and recommendations for resolving title issues
  • Review and explanation of contract items
  • Guidance of clients during unexpected or unique circumstances

Clearly, there is a large portion of the closing process that could potentially be absorbed by secure software. This isn’t to say that the smart contract is ready to take over 90 percent of a closer’s role today.

The potential is real, though. Some of the world’s biggest banks are already developing software based on a technology concept called blockchain to create smart contracts for the financial world.

This is not bitcoin. Although many have only heard of blockchain technologyas the foundation for the digital currency, its use as a software model can be applied to any number of reputable business processes.

The real estate concept, in an oversimplified explanation, is a digital contract embedded with smart money. Buyers, sellers, lenders and all other parties are identified by their personal information.

This data comes from decentralized databases that add to the verified blocks in the data chain — banking, credit reporting, employment, government or other information gathered from trusted sources.

After verifying individuals, the blockchain assigns them an encrypted ID, which allows the smart contract to approve their actions going forward.

You’ve been verified; you no longer need to be trusted

From here, a homebuyer can create smart money by uploading funds and programming them. The buyer’s programmed money goes into the contract with stipulations attached to it.

The seller cannot touch the funds until the buyer’s programming instructions have been met: inspection approved, title clears, lender releases funds, county records the deed and so on.

The lenders, title companies, government agencies and others can all become verified participants in the blockchain smart contract. These identified users in the transaction can make the sale move forward when they verify that certain steps have been accomplished. Only the verified sellers and lien holders will be allowed to receive the closing funds.

What does the smart contract mean for escrow and attorney closers?

Smart contracts could drastically alter the way real estate transactions are closed. With much of the verification process now handled by a network of databases instead of human interaction, there’s the potential to remove much of the labor that’s currently necessary. This is the way most technologies disrupt industries — through efficiency improvements.

Timelines for closings could be reduced. Software doesn’t take holidays, evenings or weekends off.

It’s clear that a smart contract with enough access to the right data could administer a large portion of a real estate closing. Any item that pertains to verification is ripe for delegation to the smart contract. The complexity of the human interaction in the transaction isn’t something to underestimate, however.

Barriers and holes in the process

Smart contracts can’t review and explain contract documents to a nervous seller or buyer the way a human closer can. It’s a stretch to believe they’d replace the closer completely.

It would also be foolish to ignore the most glaring hurdle to the full-fledged adoption of smart contracts in real estate. That is the decentralized and unharmonious makeup of the industry itself.

A typical transaction might have a buyer’s broker using Instanet software while a seller’s broker is using dotloop. Meanwhile, the escrow company and lender are trying to shoehorn everyone into their own custom software product.

Each individual wants the process to work smoothly, but no one wants to use the other’s solution. A consensus blockchain-style foundation could allow many different software products to access the same smart contract, but the industry’s track record of coalescing around a single solution is less than stellar.

Moreover, the cross-industry participants necessary to close a financed sale make for an uphill battle. A single contract needs every member of the transaction to adopt its platform to be effective.

Brokers, lenders, title companies and even government agencies that record transactions would have to sign on for a truly seamless, secure transaction. That will take significant time and influence.

Digital disruption through leadership or pragmatic paper?

Smart contracts have significant potential for increasing the security of transactions, improving the speed of sales and making the closing process more efficient. They could effect profound changes on the role of the real estate closer, but they don’t eliminate the closer’s role entirely.

The smartest software in the world can die in unfulfilled anonymity in this industry. Adoption of smart contract technology won’t happen from the ground up. It will require the kinds of voices that can convince government agencies, banks and big brokerages to sign on.

Whether it’s blockchain or another solution, consumers deserve industry leaders’ full attention on providing a safer way to buy and sell homes. If it happens to make transactions faster and more efficient in the process, everyone benefits.

Every buyer and seller should be warned of the current danger of digital fraud at the outset of a transaction. Of course, there’s a simple way for many of them to avoid it.

Drive to the bank. Get a paper cashier’s check. Drive it to the closing office. Sign the paper. Thank your closing agent in person. As archaic as it sounds, until there is a solution, it couldn’t hurt.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County Realtors. You can find his team at SeattleHomes.com and BellevueHomes.com.

Culling the lazy, bloodsucker real estate agents

This article was originally posted on The Real Daily:
by Sam DeBord

Liar. Cheater. Loser. Choker. Incendiary rhetoric seems to be in vogue this year.

“The consultants are like bloodsuckers. They’re ten times worse than a real estate salesman or broker, ten times, which is saying pretty bad stuff.” This was the biting yet confusing commentary from Donald Trump, a real estate salesman himself, at a recent political rally.

Inside the industry

The shots at real estate agents are coming from within the industry as well. Keller Williams’ Chairman Gary Keller recently said that agents who buy leads from Zillow “are lazy and don’t want to do the work.” Surely many of his top agents and teams who effectively use the leads would disagree.

Zillow’s CEO Spencer Rascoff recently told CNBC that the company no longer wanted to work with agents who weren’t “great” (they don’t spend a lot of money on advertising). So they’ll be “culling” those agents who aren’t up to snuff. While a practical business move, avoiding a term associated with slaughtering inferior or surplus animals might be item #1 for the PR team’s next executive media coaching session.

Real estate classism

Before we get self-righteous about these leaders’ word choices, though, it’s worth noting that this kind of language pervades much of the industry’s conversations on the quality of real estate agents.

There’s no shortage of snobbery and classist speech among agents and brokers.

Just ask a high volume agent how we should raise the bar of professionalism in the industry:
“Raise Realtor dues by 1000% and we’ll lose 90% of the deadbeats who bring us down.”

Talk to boutique brokers about their counterparts:
“That head shop will hire anyone who can fog a mirror. Their agents are bottom feeders who don’t sell anything and make us all look bad.”

You hear it from speakers at industry conferences:
“Let’s use the 80/20 rule. We need to get rid of the 80% of crappy agents who are making us look bad, so that the good agents who do 80% of the volume are the only ones left.”

There are some really important conversations to be had about the quality of real estate agents in our industry. We want clear answers as to how we fix them problem. We want the answers to be simple.

Unfortunately, big answers are often necessarily complex. When we group real estate agents into simplistic silos to try to fix our issues, we do a disservice to ourselves.

Volume does not equal quality

We can all agree that there are real estate licensees without the experience, ethics, education, or conscience necessary to serve their clients well. There are bad apples in our midst. They’re a poison on our reputation and should not be allowed to sell real estate.

Let’s not overreach with our reaction, though. This rhetorical journey usually ends with lower producing agents or those with non-traditional business models being given the scarlet letter and pronounced as a scourge on the industry.

Volume does not equal professionalism or quality. We’ve seen sweatshop practitioners become real estate celebrities, only to later lose their businesses and licenses when their practices came under scrutiny.

On the other hand, some of the lowest-volume agents often have the most experience to with which to guide their clients. Agents who are nearing retirement will often shrink their active client base significantly. The buyers and sellers who work with them are afforded all of the benefits of an agent with decades of experience and insight, as well as a greater share of that agent’s attention.

The client who works with an agent who has only one client at the moment may be the client who is receiving the most comprehensive personal service possible.

Then there are those “lazy” agents who buy leads, or pay fees/splits to others who prospect for them.  Since when was specialization of skill and division of labor a sign of laziness?

Selling vs. lead generation

Admittedly, this comes from my position of personal bias. We’ve brought agents on to our team who were low volume producers before they joined. Most had experience, but didn’t want to prospect anymore. They just wanted to work with clients and sell.

Meet “Jane”. She sold for 30 years before joining us. She is one of the smartest, most dependable, respectful, and effective agents we’ve worked with.

By many counts, she should have been tossed from the industry the year before because she only sold two homes. She sold 15 homes last year, a healthy business in a market like Seattle. It still probably wasn’t enough for the sales police to label her volume sufficient. She’s “lazy” because she’s relying on others to generate leads and focusing on her core skills of selling. She might just be “culled” with the other low-rung agents who provide outstanding service and consistently receive raving reviews from their clients.

It’s more complex than that

To be fair, we’re in an industry that has an unhealthy obsession with sales numbers. I’ve stopped counting the number of times someone asked me, “What kind of volume do you do?” within the first two minutes of a conversation (It almost sounds like “How much do you bench, bro?”). So it’s not surprising that an agent’s volume is often the first metric many look to for a frame of reference. Volume makes a big difference in finding out whether or not an agent is good for your team, your office, and your business model.

Let’s just not let it creep so far into the conversation about who deserves to belong within the greater industry. There are a lot of different business models, and different roles that fit within them. Not everyone needs to be a solo, door-knocking, cold-calling top producer to provide great service to clients.

“Jane” isn’t. Her clients will scoff if you tell them that her volume and prospecting system make her a bad agent. If we’re going to talk about improving the reputation of real estate agents, let’s stay away from oversimplifications.

The answer is more complex than volume or business model.

It’s about education, experience, dedication, and professionalism. Those are difficult things to measure, but improving an industry isn’t supposed to be easy.

Let’s skip the simple labels. They’re part of the problem.

Project Upstream: Tax Reform for Real Estate?

This article was originally published in Realtor Magazine:
by Sam DeBord

Business owners take risks to create valuable products and services. They drive the national economy and create jobs.

But no good deed goes unpunished. These entrepreneurs are rewarded with a slough of tax reporting requirements from a tangled web of government agencies. A single business might file fee or tax reports with its city, county, secretary of state, state department of revenue, licensing board, insurance commissioner, and the IRS.

Business owners often feel powerless, subject to countless mandates with no voice in the process. In an ideal world, the system would be reformed. A business would file a single revenue report that could be used by any agency, cut one check to the government, and get back to work. No one is holding their breath for that outcome.

Disjointed Real Estate Listing Distribution

Real estate’s convoluted listing system creates a similar feeling. Property listings, and the services that support them, are the revenue drivers of the industry. Making listing delivery efficient should be a priority. Yet a single listing might have to be input in a dozen different locations before it has been comprehensively distributed. The process doesn’t improve much after distribution. The listing creators often have little control or feedback regarding how their information is treated.

Brokers, agents, staff, and others waste valuable time entering the same listing data into multiple MLSs, vendor websites, franchisor platforms, and advertising portals. The data is the same, but each listing outlet requires a different process of delivery. It’s the definition of inefficiency.

Loss of Control, Uncaptured Value

Once delivered, the listings can take on lives of their own. Brokers and agents often sign on to agreements with little protection for their data rights. Advertising portals rework and manipulate the data and media as they see fit. Some go so far as to republish listing photos in unrelated advertising campaigns without credit or compensation given to the creators.

The single brokerage, on its own, has little ability to reform the process or negotiate a better contract. The inertia of the current system is too great. As a nationwide collection of brokers, though, a single voice like the Upstream coalition would have that power. It has the assets necessary to create a new process and the clout to motivate listing data recipients to operate on a more level playing field.

This, of course, is where fears of power consolidation reside. Tax reformers promote a streamlined system but are wary of granting a federal government agency greater powers to make it possible. Project Upstream’s goal is to streamline business and benefit the entire broker sphere. It will also be a place for brokers to manage a broad range of other kinds of information beyond listing data, including customer databases, vendor contacts, and agent rosters.

Its motivation, though, is the subject of conspiracy theories regarding elimination of small brokers and takeover of MLSs.

Us vs. Them, or All for One?

Luckily for real estate, the body with the power to streamline its processes isn’t the IRS. It’s a collection of “us.” The forces combining to support Project Upstream are the brokers who deal with the value-sapping quagmire of the current listing system every day.

These are business owners who represent over 70 percent of brokers nationwide (and growing). When we get past fear, the benefits of Upstream are fairly straightforward for brokers:

  • Eliminate redundant labor in listing input
  • Improve accuracy and timeliness of listing data output
  • Ensure broker control and choice regarding which outlets receive data
  • Establish broker rights and display rules over the data and media

Upstream’s challenge will be conveying this message to the individual. The project’s developers clearly understand the mission. Can that message be delivered in a way that motivates a broker or agent to change course in their everyday duties in support of a greater movement? Much like each individual voter must understand and believe in a cause to take the time to cast a ballot, adoption by the masses, one by one, will determine the viability of this venture.

Tax reform may be wishful thinking. Listing data reform, on the other hand, is right under our noses. There’s no czar or military coup attempting to seize power and take our autonomy from us. Brokers are merely creating better tools and more control for themselves.

Real estate brokers nationwide haven’t collaborated this closely toward a clear goal in quite some time. Let’s not allow conspiracy theories to cloud the way forward.

Sam DeBord

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth, and 2016 president-elect of Seattle King Country REALTORS®. You can find his team at SeattleHome.com and SeattleCondo.com.

Don’t Go Solo, Tech Bro: Do Your Homework

This article was originally published on Inman News:
by Sam DeBord

  • Someone else already failed at it. Why will you succeed?
  • Real estate is a collaborative business.
  • Look to profitable precedents for true tech investment opportunities.

Picture the scene: “Tech bros” with money to burn surround the table. The disruptor-in-chief is rallying the troops to the tune of nine figures. The pitch is some variation of a model that has failed repeatedly and without exception for decades. “Today,” he states, “we will finally change real estate because we have — technology!”

SoloPro’s enticement of a $1.6 million investment from Lowe’s is just another data point in a long line of over-funded, soon-to-be-failed commission-busters.

That’s not broker-centric hubris speaking. It’s history.

The company’s “nod to the traditional real estate model” by bundling services this week wasn’t just a slide toward traditional commissions. It was the first step in admitting its model doesn’t work. The bluster of “blowing up” agent commissions is a tiresome, thin smokescreen to the seasoned observer.

Tech money is pouring into real estate, but some techpreneurs seem more interested in spending than doing their homework. Many of them need a Real Estate 101 course, with a significant portion dedicated to the history of failed ventures.

Don’t be offended, tech bros — I used to be one of you

I was a techie know-it-all who was appalled by the broker-agent model that dominates the industry. Agents were overpaid and commissions were overblown. We knew tech disruption would rid us of real estate’s high costs and inefficient labor. Then I spent 10 years in the trenches with real brokers and agents, and I saw how wrong we were.

If you’ve ever been lucky enough to hear Sean Carpenter speak, you’ve heard that in real estate, “Everything you need to know, you learned in kindergarten.” Having taught a significant number of kindergarten classes myself, I’d like to deliver a few of those lessons.

Let’s sit on the reading rug, clear our minds and start with the basics:

1. Read — read a lot

Find out if your business plan is just a carbon copy of something that’s already been done. Don’t let your ego get in the way. Many smart people have probably already tried it.

You’re saving consumers money by cutting commission costs? See Help-U-Sell since 1976. See the litany of competitors already entrenched in the marketplace and the graveyard of imitators in their wake.

You’re adding technology to increase the commission discount value proposition? See Redfin. Is $200 million in funding enough to reach 3 percent coverage in your primary market? That’s what it took them, along with continually shrinking the discount model.

The vast majority of that money came after the company changed its tone from adversarial to cooperative. So….

2. Play nice in our sandbox

Real estate is a relationship business. Abrasive characters usually find themselves a new attitude or find themselves out of the industry.

You’re not Steve Jobs. You don’t get to be a sociopath in this industry and get away with it. Real estate’s leaders are intelligent, savvy and financially motivated. They also make a lot of decisions based on long-term relationships. That’s not just the old boys’ club. It’s an acknowledgement that being amicable is profitable.

Many of our leaders were once real estate agents and brokers themselves — the smiling, anything-for-my-clients kind of folks. You’re going to have to shake a lot of hands, listen to a lot of different viewpoints and make a lot of friends to survive long term.

3. Build things. Don’t break things.

Disruption conjures images of broken models. Changing the way real estate works doesn’t have to mean tearing things down, though. It’s usually not the best path to profitability.

Our disruptive friends who are hell-bent on breaking everything in sight are often the fastest ones to the exit when it comes to earnings time. We love innovation in our industry, but don’t walk in, kick down the sand castle and tell us how smart you are.

Rather, build innovative tools that help us do business. Look at who’s actually generating revenue in this industry — listing advertising portals, productivity app developers, transaction management platforms, e-signature providers and so on.

Although some of these companies are still operating in the red, they’re at least hanging around with revenue long enough to establish themselves.

Brokers and agents have money, and they’ll spend it. Innovate and bring us a product we want to buy.

4. Follow the rules (as much as possible)

You’re entrepreneurs, so you’re naturally inclined to break the rules. Feel free to bend the rules of formality, tradition and stagnant thought. Just don’t ask to join the group and then pretend that you didn’t read the rules.

You can be a unique snowflake, but if you stand on your desk and throw rocks, you’re probably going to fail.

You could prove me wrong.

One of you will break all of the rules and be successful. I’ll let you buy me a drink and tell me all about it when you get there. But for most of you, building cooperatively is an easier path to profits in this industry. It has lower hurdles and more successful precedents to follow.

Innovate, but research first. Ask a broker why it won’t work. Take the advice seriously.

Then get busy building something that will loosen up our pocketbooks. History, and your investors, will look favorably upon you.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and President-Elect of Seattle King County Realtors. You can find his team at SeattleHomes.com and BellevueHomes.com.

Broker Public Portal: Angling for a new face

This article was originally published on Inman News:
by Sam DeBord

  • Accuracy isn’t enough. BPP needs attractive tools and media content.
  • BPP has valuable exclusive data that could be leveraged for exposure.
  • Public relations will generate earned media on a tight budget.
  • The name has got to go.

Organized real estate has undertaken some potentially transformative ventures in the past couple of years. Project UpstreamRPR-AMP and theBroker Public Portal have aligned the vision of brokers in numbers that would have been unthinkable in the recent past.

What these projects seem to have in common is that their progress since initiation has been difficult to follow. Although they have secured initial funding, the strategic direction of each feels like it’s taking shape in the dark.

It would be satisfying for industry constituents to have more insight into the mindsets of the leaders of these programs. In particular, the Broker Public Portal seems to be as much of an enigma today as it was when it was first proposed.

We know the leadership and the stated mission: to provide a simple, direct home search experience that connects consumers directly with brokers.

What we don’t know is how it intends to produce a distinguishable value proposition for consumer viability. Its success is reliant upon its ability to create a unique consumer benefit. That benefit then has to reach the general public’s consciousness — possibly an even greater task.

Doomed to fail

Some critics have already called BPP a failed concept — an exhibition built without an audience in an arena where the titans already own the stage. They’re correct to point out the challenges, but probably overstepping in the sweeping conclusion.

Detractors will point to NRT’s short-lived portal, homesforsale.com, as a cautionary tale. It was released and then mothballed in 2015 because it didn’t garner any consumer traffic. That venture’s difficulties should be poignant for BPP’s leaders. Homesforsale.com didn’t seem to have a particularly unique sales pitch to consumers.

BPP is a different animal, though. NRT’s site was intended as a lead-generation and referral-fee platform within a branded silo. BPP’s mission sounds more like a grassroots, brand-agnostic platform. It seems to want to be the Wikipedia of real estate listings, the Switzerland of the portal world.

Too small, too late

Many have pointed to Zillow Group portals and realtor.com and asked how BPP could possibly compete.

BPP has $500,000 in funding so far. Portals are billion-dollar operations.

BPP’s people have said repeatedly that they don’t intend to compete with the top portals. They’re just creating a different option, a product offering that might be preferable to some portion of the consuming public.

Let’s be honest: “We don’t want to compete with the big portals,” sounds a bit like a coach saying, “We’re only thinking about today’s game.”

BPP’s leaders must have large-scale aspirations. They want to be a champion as much as their portal competitors do. They’re just wise enough to avoid inciting rivalry right away.

Why BPP?

The most important question being asked is: “Why would a consumer use the Broker Public Portal?”

What angle will BPP leverage to make it successful?

Make no mistake, it’s an angle. Its success will require sharp differentiation. Simply creating a neutral platform with direct broker data won’t cut it. The big three already have unbelievable amounts of data, user interfaces that provide superior experience and enough capital backing them to buy consumer traffic for the foreseeable future.

Can BPP be the neutral source for listing data — the Wikipedia for real estate consumers — if consumers can’t hear the message?

Realtor.com has blanketed consumers with its marketing pitch of being the most accurate and up-to-date site. Its 800-plus feeds from MLSs make this claim difficult to dispute.

It’s true that BPP could eventually have a broader set of listing feeds, but could it outspend Rupert Murdoch and actually get that message to the general public? There’s a natural conflict of messaging between the two portals if this is BPP’s elevator pitch.

If practitioners prefer BPP’s model and display rules to those of the other portals, it could become the preferred platform for agents and brokers. That might have little effect on consumer traffic, though.

Realtor.com is coming back today from its recent slide, but not because Realtors prefer it. It’s gaining steam because its operator and owners, Move Inc. and News Corp, are hustling and spending to get in front of consumers.

Building the shiny proprietary tools

Consumers don’t choose a portal based on a lofty mission statement. They use a website with attractive tools. So the portal’s strategy shouldn’t be overwhelmingly focused on how to build the framework that combines nationwide listings (though that’s a necessary foundation). It should be initially focused on what kinds of consumer-centric tools will attract organic consumer traffic.

What could those shiny new tools be that generate traffic? They could come from access to exclusive data that the member MLSs allow BPP to display.

Imagine the clickbait that BPP could generate by creating visualizations of electronic keybox histories. Home showing velocity and volume could be displayed as heat maps, time lapses and neighborhood trending reports.

That’s just one set of data out of many that BPP might be able to leverage in its quest for unique exposure. Access to immediate updates from MLSs’ raw data would allow BPP to inform its consumer base through news, social media and messaging in ways not possible for other consumer portal sites.

That positions BPP less as Wikipedia and more as Wikileaks. The portal could expose information to consumers that they can’t get — or aren’t allowed to see — anywhere else. There’s nothing more viral than exclusive content.

Perception: Marketing and public relations

BPP’s obstacle and opportunity is perception. The portal needs to first be perceptible to consumers. Without generating initial awareness, the rest of the package is irrelevant. That was NRT’s portal’s downfall. The second portion is the perception that consumers will have of the brand’s personality — how will the public perceive its image?

The kind of proprietary data BPP has access to could allow it to establish itself as a unique information source to the news media. Traditional brokers and Realtor organizations often complain that media outlets seek out sources such as Redfin and Zillow for news stories.

What they don’t often admit is that those companies are proactively driving the publicity. They employ researchers to build attractive consumer stories and public relations teams to push them to reporters. The media coverage they receive is not accidental.

Public relations is a gaping hole in the broker world. BPP could become the go-to source for inimitable media insights on the real estate industry.

Creating this content would, of course, be constrained by formidable broker and MLS restrictions on how broadly their data is used. The opportunities, though, are great:

  • Immediate market reports, leveraging daily market statistics while other outlets are working with weeks-old or months-old data
  • Keybox showing analytics tied to effects on sales results: Sale-to-list price, DOM, regional and seasonal variations
  • The best times and days to show a home to buyers, based on their likelihood of writing an offer
  • How likely a new agent is to sell your home in 30 days vs. an agent with 10 years’ experience
  • How long a property stays on the market when listed by a Realtor versus a non-Realtor licensee
  • Whether homes listed by single agents or teams sell faster
  • Whether agents with larger listing inventory have a higher percentage of overpriced listings that don’t sell

These kinds of stories are irresistible to consumers and to the news media. To be able to publish this kind of content, BPP’s members will have to fully buy in to the concept and allow for a deeper exposure of their data.

Angling for success

BPP has some significant strategic disadvantages when going up against the biggest national portals. It doesn’t have to compete with them initially, though. It just needs to create a ripple to demonstrate its potential.

Some strategy to make waves on a tight budget:

  • Start by imagining attractive tools and content for consumers that sit on top of an adequate listing database — not an overbuilt database followed by an interface. Consumers rarely know what’s under the surface. Give them what they want upfront.
  • Leverage proprietary data and pitch it incessantly to the media. Public relations generates inexpensive “earned media” when the content is truly unique. BPP could be the easiest pitch in the industry if it curates its assets correctly.
  • Don’t lean too heavily on pitching the data as accurate. Realtor.com is already buying that space. Reporters don’t bite on accuracy stories as much as they go for “new,” “cutting-edge” or “exclusive.” Build the perception that consumers, and news media, must come to you first for the biggest scoop.

Drive at an angle. Say it out loud.

  • “Trulia’s data: weeks old. Case-Shiller’s data: months old. Our data: updated this morning. Know first.”
  • “Find out where your city’s buyers are moving with data no one else can see.”
  • “Real estate tell-all: Choose the right kind of agent with exclusive data direct from the source — their broker/owners!”

That name, that name — Broker Public Portal

We don’t know if Broker Public Portal is intended to be the name of this effort long-term. Let’s hope it’s not.

“Broker” is a term that is known in the industry but foreign to most consumers. It sounds like a middleman who carries jewels wrapped in velvet in his breast pocket. Consumers can’t even distinguish a Realtor from an agent. This isn’t a good start.

“Public” is important for industry distinction. It is redundant to the consumer. Telling them that a consumer website is public conjures images of Austin Powers: “Allow myself to introduce — myself.”

“Portal” sounds like a mystical doorway or a stark public restroom. Neither conjures the friendly, useful image that BPP should be portraying to consumers.

I’m sure the good people at BPP and their consultants are aware of this issue and are working on it. The brand needs a lot of makeup.

All bets down for BPP

A betting person would put a strong dollar on BPP never competing with the top-ranked portals. Based on the current landscape, that would probably be a winning bet.

We’ve seen so many gamblers squander their capital on ill-fated, poorly vetted real estate ventures, though. In this industry, what you don’t know can really hurt you.

And BPP’s media arm, if it plays its cards right, will know a whole lot more than its competitors. If it can leverage that proprietary knowledge into earned media, it could find an angle to unchecked publicity.

I’d put a buck on that dark horse.

Sam DeBord is managing broker of Seattle Homes Group with Coldwell Banker Danforth and 2016 president-elect of Seattle King County Realtors. You can find his team at SeattleHome.com and SeattleCondo.com.

Lenders: How To Meet More Realtors (Without Making Us Cringe)

This article was originally published on The National Real Estate Post:

Lenders and Realtors are salespeople. Most of us are paid on commission. We need to do two things to be successful:

  • Meet new clients to broaden our customer base
  • Provide superior service to retain those clients and their referrals

Lenders need to meet Realtors and attract the business of their clients. The methods most use to do so are antiquated:

“Check out my rates and programs!” “Can I buy you a cup of coffee?” “Let’s grab lunch and talk about your goals.”

Talk to any Realtor who has been in the business for a few years and they’ll cringe when they hear these pitches. It’s not that we don’t like lenders. It’s just that we don’t have time to waste on repetitive requests for business with no reciprocal payoff. We get them almost daily and they rarely have any differentiation or offer of new value.

Do you want Realtors to see you as a partner and a respected expert? Join your local Realtor board.

You want Realtors to see you as a peer, a knowledgeable professional in the industry. By joining the Realtor board, supporting its committees, and showing your dedication to the profession, you’ll gain acceptance with your local Realtors.

Teach classes through your Realtor association’s offices. Write articles for their websites, newsletters, or magazines. We need to know what’s happening in the lending world, and you need to be connected to the issues we’re facing every day.

Realtor boards are looking for unified support from the real estate industry. Realtors themselves are looking for serious, professional lenders who will educate their clients and be trustworthy partners in their businesses.

So stop trying to get Realtors in their cars, one at a time, to meet you at a coffee shop or café. Go meet them en masse, on their turf, at their request.

The relationship you make will be based on respect. We’re salespeople, too. We know a pitch when we hear it, and we’ll choose a valuable partnership proposition over an “ask” for business every time.

Open Door PartnersInvite Us Into Your Offices For A Safety Check-in

Getting us into your office might be difficult. We do everything virtually these days. There is a way to get agents to stop by your office, though, without even having to ask.

Sign up your office with Open Door Partners. You’ve probably heard a handful of stories in the past year about agents being assaulted, kidnapped, and murdered on the job. That’s because they go meet unidentified prospects at vacant property locations.

They need convenient offices near properties to meet these unknown clients. If their broker’s office isn’t nearby, maybe your office is.

Agents are using our nationwide online map of lenders, title companies, and broker offices as locations for quick safety check-ins. Sign your office up at Open Door Partners, and if an agent in your area needs to meet a new client in your area, they can stop in at your front desk for the meeting.

It provides you an opportunity to give something of value to a real estate agent, and meet them face-to-face while they’re working in the field. It costs you nothing, but creates and opportunity for business—and improves the safety of your industry partners.


Sam DeBord

Sam DeBord is a managing broker with Seattle Homes Group and Coldwell Banker Danforth. He is 2016 President-Elect of Seattle King County REALTORS® and has been featured in Inman News’s Top 101 In Real Estate and the T3 Swanepoel Group’s Top 20 Social Influencers. His team sells homes and condos in Seattle and Bellevue.