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After a rough 2023 market, Inman Connect launched into the new year with an energetic and fully packed conference. This gathering drew a diverse crowd of agents, brokers, influencers and industry newsmakers united in their quest to adapt and thrive in an ever-evolving landscape.
Central to this year’s conference theme was a critical question: How do we foster genuine, meaningful connections within the real estate industry in a world where technological connections are ubiquitous?
The state of the industry: Significant challenges, innovative solutions
The industry’s current state was succinctly summarized as a triad of challenges: The turmoil within the National Association of Realtors (NAR), the pressure of challenging market conditions and the decline in commissions. Yet, the conference’s focus was all about proactive discussions and innovative solutions.
Sitzer | Burnett
Industry conversations centered around the continuing commission lawsuits (set in motion by the Sitzer | Burnett trial). The Sitzer case has unleashed a cascade of lawsuits throughout the country in an already tough market.
During “down” years, there tends to be a wave of consolidation, which offers a purchase/merger lifeline for less financially stable firms to exit the industry with the strong possibility of preserving some jobs. However, with potential liability risks stemming from the Sitzer case, those potential consolidations have slowed.
Representation agreements
Ed Zorn, VP and general council of California Regional MLS, suggested mandating buyer representation agreements covered in Article 9 of the NAR Professionalism in Real Estate Practice.
As reported by Andrea Brambila in his Inman talk: “Zorn proposed mandating buyer representation agreements, eliminating the multiple listing service’s compensation field, adopting an optional seller concession field that the nation’s largest MLS is set to deploy, and paying for commission suit settlements by creating a fund and depositing between $100 and $200 from each transaction side nationwide into it for the next four years.”
This provides a clear path for continued professional cooperation and industry integrity. Read more about the solution model that was discussed at Inman Connect here.
American Real Estate Association
Another innovative solution came from Mauricio Umansky, founder of The Agency, as he announced the formation of the American Real Estate Association as an alternative to NAR. Umansky, working alongside Jason Haber, a New York Compass agent, described this new entity, envisioned as an advocacy and lobbying group “built by Realtors, for Realtors,” as an alternative to NAR.
Unmanksy remarked at Connect: “Right now I don’t feel like anybody is caring; we’re in a lot of trouble.” Umansky argued at another point, “We need better advocacy, we need better lobbying, we need to make sure we’re taken care of.”
In a detailed discussion at Connect, Umansky highlighted the passage of Measure ULA as one of the catalysts for forming AREA. This measure, more commonly known as “the mansion tax” for Los Angeles, imposes a graduated percentage fee for real property (residential, commercial and vacant land transactions) selling over $5 million.
Inman’s Jim Dalrymple II writes, “The implication was that, in Umansky’s view, L.A. passing a mansion tax reflects a policy and lobbying failure on NAR’s part.” It should be noted that both Los Angeles mayoral candidates opposed Measure ULA when it appeared on the Los Angeles ballot.
State of the market 2024
While discussing the implications of the Sitzer case, a significant portion of Inman Connect was dedicated to dissecting the current state of the market and forecasting trends for 2024.
Every speaker agreed that mortgage rates would decline, yet existing home inventory would remain tight, as most current homeowners benefit from mortgages below 4 percent. Most owners are not expected to sell unless a “life event” compels their relocation.
On a more optimistic note, new home construction is increasing. According to Ali Wolf, chief economist at Zonda, 75 percent of builders plan to build this year as long as demand holds.
Wolf characterized this scenario as the “tale of two markets.” She continued to comment at Inman on the market: “I’d say the biggest thing that I learned last year is that while we did have sales at the lowest level since 1995, we still had over 4 million homes sold.
“Those are still 4 million transactions you could have had your share of. So it’s understanding the consumers out there today. Why are they buying, and what do they want? That’s the most important thing I can give you for success throughout this year.”
Leveraging technology
All this information begs the question for agents and brokers: What can I do right now to increase my business and amplify my brand? While we routinely talk about technology as an avenue to cut costs, re-engineer the brokerage experience, and consolidate operations, the discussion this year focused on growing leads, closing transactions and building a personal brand with artificial intelligence (AI) as a transformative tool for all of these use cases.
The key to successfully integrating AI lies in its personalized application and the precision of the user’s prompts. One cannot rely on the tool itself to create engaging content. The more specific you are in your prompts, the more you understand what you want as the outcome of the prompt and how that pertains to your target audience, which is incredibly important for engagement. This technology is critical and is a growing force that will increasingly shape the future of real estate and other professions
- Carrie Soave of eXp Realty observed that top-performing real estate agents leveraged AI for content creation. Read more about that conversation here: “Top agents on AI: ‘It’s affordable leverage’ you can’t afford to ignore.”
- Griff O’Brien of Estate Media emphasized the impactful role of AI in content creation, provided the right tools are identified and utilized effectively. His insights delve into the nuanced use of AI in real estate marketing. Explore more about that conversation here: “‘Don’t ask it for the concept’: The limits of AI in real estate marketing.”
- Phil Stringer, from AI Agent Academy, offered advice for harnessing AI’s full potential centers on being meticulous and specific with prompts. He demonstrated how mastering tools like ChatGPT can grant agents significant “time freedom” moving forward. Learn more about that conversation here: “Train ChatGPT with client values for AI-powered content in 2024.”
Cultivating your brand, embracing authenticity
A recurring theme echoed by every speaker at Inman Connect New York 2024 was the critical importance of agents and brokers crafting and nurturing their own brand and owning the authenticity of their message. This involves understanding the nuances of different marketing platforms and social channels and tailoring your approach to meet the expectations of your target audience in each context.
Speakers stressed the need to stay abreast of industry developments and possess a deep understanding of your specific market. This knowledge enables you to answer queries confidently and authentically and to create engaging content for newsletters and other communication channels.
A poignant reminder from frequent Inman speaker Christine George was to remember, you do not own your social media list. This underscores the importance of building a personal brand beyond social media platforms.
All in all, ICNY 2024 was a comprehensive and robust gathering of real estate professionals echoing the resilience and adaptability of the industry in a challenging time. While AI dominated the conversation, understanding what’s going on in the industry and in your markets, and knowing what personal brand you want to present, are paramount to effectively and efficiently using AI to help drive business.
As we look forward to continuing these insightful discussions and learning opportunities, don’t miss your chance to be part of the next exciting event — be sure to register for Inman Connect Miami.
Bobbie Wasserman is the founder and CEO of Single Lady Estates, a company that empowers women through the entire homeownership journey – buying, selling and life in between.
