These days, headlines reporting on the real estate industry have the word “lawsuit” in them more often than not. It makes sense; class-action lawsuits targeting commission structures make their way through the judicial system and there’s no going back to the world before (RISMedia’s own Court Report series is making sure nothing slips through the cracks).
Still, there’s more news to follow. (Hyper-fixating on only a single news story isn’t mentally healthy either.) Here are a few examples.
What’s the Federal Reserve thinking?
Ah, the other albatross soaring over the heads of REALTORS®; interest rates, and consequently, high mortgage rates.
The Federal Reserve makes regular announcements on how they’re feeling about the economy if there’s an interest rate cut or hike coming (neither is, at the moment). Likewise, there are general economic reports (measuring employment, for instance) to get a more holistic view outside of your sector.
Combine these with checking weekly mortgage rate updates to stay as informed as you can. It will be frustrating to watch the numbers go up when you want them to come down, but it’s important as you strategize and gauge your business.
Mergers and affiliations
One headline I see a lot in my reporting is “(Blank) brokerage affiliates with (Blank) national brand.” Mergers and acquisitions are an easy path to growth, so they happen all the time (see Lamacchia’s recent acquisition of Sears Real Estate).
Sift through the news to find M&As relevant to your market. Is your parent brokerage expanding a lot? If you’re the broker of an unaffiliated firm, look at which name brokerages are making moves to enter your market with M&A. Assess what resources they’re offering and, if they make an offer, you’ll have an educated answer on whether an affiliation is the right move for your business.
New brokerage models
From technology to legal upheaval, real estate looks like it’s in a transitory period. Newly-founded American Real Estate Association (AREA) has launched itself as an alternative to the National Association of REALTORS®. Alternatively, some have argued that new AI tech will be a boon to the traditional brokerage model.
As the industry keeps traveling through this tunnel, keep up to date with all these innovations. Then, you can make an educated bet about which one you want to bring into your business.
