Four months in…

Now that we are exactly four months into the post-NAR settlement era, we are continuing to see more reports on how the new rules are affecting our industry. In today’s second story, we look at a report on how commission information is being shared, since they are no longer advertised on the MLS. It’s quite interesting to see what has changed and what hasn’t.

We also continue our series on the 8 biggest reasons why real estate agents fail. It’s all based on the latest episode of our podcast Rise Above the Ranks. If you haven’t had a chance to check it out, we hope you will. We think it’s a very helpful watch/listen full of info we’ve learned through the years. If you want some highlights, scroll down to today’s Foundation Plans.

And now, on with today’s Blueprint!

– James and David

Single-family investors poised to buy in 2025

76% of single-family investors say they are “very likely” or “somewhat likely” to purchase at least one investment property in the next 12 months, up from 60% who expressed the same sentiment last quarter. That’s according to ResiClub’s survey of single-family rental investors. Here are some of the other key takeaways:

• 33% of single-family investors say they are either “very likely” or “somewhat likely” to sell at least one of their investment properties in 2025.

• 83% of single-family investors describe rental demand in their primary investment market in 2024 as “very strong” or “somewhat strong”

• 84% of single-family landlords expect to raise their rents in 2025, including 40% who expect to increase rent by over +4.0% next year

• 76% of single-family investors expect positive home price appreciation in their primary investment market in 2025, including 33% who anticipate appreciation exceeding +4.0%

• 37% of single-family investors say their biggest increased expense in 2024 was home insurance. That number was 46% among single-family investors in the Southeast.

Our take

This survey gives us a helpful picture of what investors are planning to do next year. Overall, it reflects cautious optimism among single-family investors, driven by expectations of strong rental demand, steady rent growth, and potential price appreciation. However, this optimism is balanced by concerns over rising costs and higher interest rates. To navigate these challenges, single-family rental investors are likely to prioritize strategic acquisitions and adaptability to evolving market conditions. Agents need to position themselves so that they can facilitate some of these transactions. Clearly, these investors are about to become more active in the market.

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How agents are sharing compensation info

Since the NAR settlement took effect in August, commissions are no longer advertised on the MLS. This has led buyers and agents to find other methods to see if a home seller is willing to offer compensation. A recent survey of 800 agents by HomeLight shows how this information is getting communicated. Here are the main findings:

• 67% of agents say they communicate directly with their counterparts

• 8% of agents share commission info via brokerage or agent websites

• Most agents reported getting the same percentage as before the NAR policy changes.

  • On the sell-side, 42% of agents said sellers are agreeing to the customary 3% listing agent commission, while 33% said sellers are asking for 2.5%.

  • On the buy-side, 24% of agents said they are getting a 3% commission, while 34% said buyers are requesting a 2.5% rate.

Our take

HomeLight’s findings align with studies from Redfin and others which show that commission fees have remained relatively stable, contrary to the fears circulating on social media when the policy change was implemented. What stands out in HomeLight’s survey is how first-time buyers are navigating high home prices and elevated mortgage rates. The most common strategy is requesting mortgage rate buydowns from sellers, a practice traditionally associated with new home construction now gaining traction with existing home sales too. Other popular approaches include using gift funds, leveraging down payment assistance programs, and relocating farther away to find more affordable options.

Exurbs are booming

A group of several southern communities are experiencing a population boom, according to a recent Census Bureau report via the NYPost. Labeled as “exurbs” (short for ex-urban), these localities are usually 40-60 miles away from major metropolitan cities, have a mix of urban and rural characters, offer more “affordable housing” options and generally offer a more relaxed, peaceful way of life.

Here are the top five areas experiencing a surge in population:

1. Haines City, FL

2. Anna, TX

3. Fort Mill, SC

4. Coolidge, AZ

5. Lebanon, TN

Our take

When the pandemic began, we saw many people fleeing major cities to go to other less-major-but-still-relatively-familiar cities around the country. But as those areas became more expensive, it naturally led buyers to seek out other options. This is where it’s getting interesting. We are now seeing “hotspots” pop up in some surprising areas. These cities allow workers to work remotely, while still being somewhat close to a major urban destination. Start to familiarize yourselves with these areas. That could be a tremendous benefit for any clients you might have who are looking for out-of-the-box ideas, or if you are looking to expand your business into other cities.

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The news that just missed the cut

• Older Americans are moving to Myrtle Beach faster than anywhere else

• Homebuyers can access neighbor’s political leanings with this new app

• Realtor.com’s 2025 housing forecast

• Airbnb is expanding overseas as American cities are cracking down

• Housing demand resilient even with higher mortgage rates

Foundation Plans

Advice from James and David to win the day

As mentioned in our last edition, we’ve just released our latest “Rise Above the Ranks” episode in which we dive into the 8 most common reasons why agents fail in the real estate industry. We covered the first four reasons in our previous edition here. In today’s edition, we conclude the series by covering the final four reasons. Let’s get into it.

5. Lack of lead generation and marketing – One of the primary reasons real estate agents struggle is their failure to prioritize consistent lead generation and effective marketing strategies. Generating leads is the lifeblood of any real estate business, and agents who neglect this aspect find themselves without clients to serve. Many agents fail to create a comprehensive marketing plan, relying too heavily on outdated methods or word-of-mouth referrals. Honestly, we don’t rely only on one method of generating leads. As you know, we’re totally open to using old-school methods like door-knocking. But we don’t limit ourselves to those methods. Use any method in line with your values and how you want to present yourself. As always, we remind you–never let your pipeline go dry! 

6. Having a 9-to 5 mentality – The real estate industry demands flexibility and a willingness to go beyond a traditional 9-to-5 schedule. Many new agents enter the field expecting to work standard hours, only to discover that clients often need assistance during evenings, weekends, or at other unconventional times. Successful agents understand that they need to be available whenever their clients need them for showings, negotiations, or just to get on the phone and answer a question. Those who stick to a rigid schedule miss opportunities, lose clients, and fail to meet the demands of a fast-paced market. Real estate requires an entrepreneurial mindset, not an employee’s clock-in, clock-out approach.

7. Lack of measurable goals –  Without measurable goals, real estate agents often find themselves unsure of how to prioritize their time and efforts. Goal-setting provides direction and focus, enabling agents to track progress and make necessary adjustments. Many agents fail because they don’t set realistic, actionable objectives, such as a specific number of new leads to generate per week or a target number of transactions per month. Instead, they operate reactively, hoping for success rather than planning for it. This lack of strategic vision undermines their ability to grow and achieve long-term stability. Don’t just have goals; make sure you have goals that you can track with concrete numbers and stats. 

8. Poor financial management – Real estate income is often irregular, with months of high earnings followed by periods of little or no income. Many agents fail to budget accordingly, spending lavishly during good months and struggling to cover expenses during lean times. Additionally, they often overlook the need to reinvest in their business, whether it’s for marketing, continuing education, or professional tools. Poor financial management not only creates unnecessary stress but also limits an agent’s ability to scale their business. Those who fail to manage their finances wisely often find themselves unable to sustain their careers. We can’t tell you how many agents we know who get behind on their taxes and don’t plan for retirement. Don’t just be a big-game hunter. Make sure you set yourself up for financial success. 

We urge you to listen to the podcast because we share many stories that we couldn’t relay here. We think you’ll find it useful and encouraging. We want you to succeed and thrive in this business. Drop us a line if you have any particular questions. Not only do we want to hear from you, but we want to help you as well.

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Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

That’s a wrap on this edition of The Blueprint!

Remember: each day is a gift and a new opportunity to lead the life you want and to become the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. You can do it!

Thanks for reading, and we’ll see you back here on Friday!

– James and David