Understand how new reforms affect real estate

New changes and reforms in the real estate industry have also created some new realities, according to Chandra Hall, a Realtor® and real estate instructor.

“Realtors® don’t need to overhaul how they do business but they should understand these new reforms and how they affect how they do business,” Hall said. “It may be time to tweak some of your business practices.

While Realtors® may be aware of the Consumer Financial Protection Bureau, they may not realize that financial changes it has instituted have made it more challenging for buyers to get loans.

“I’ve made it a routine to network with lenders to learn about new programs and products,” Hall said. “I know many people have loyalties to lenders but lending has changed. I recently had a client who I was able to put together a transaction because a lender I had met had a unique portfolio program that doesn’t have to conform to Fannie (Mae) and Freddie (Mac). I was able to help this buyer because I had knowledge of this loan product.”

To gather various loan information, Hall makes it a routine to send an email to Realtors® throughout her region to ask for lender resources. “I ask them, ‘Who’s worked with a lender that did a deal that no one else could?’ I usually get four to six lenders’ names that I wouldn’t have known about. And because I do this systematically, it really pays off,” she added.

“Sometimes we create tunnel vision for ourselves,” she continued. “And we’re missing out on opportunities to serve other buyers because we don’t know about other loan products and programs available.”

Hall is a proponent of creating business systems to help Realtors® operate their businesses more effectively and reduce risk.

Listing appointments are a prime example. “Sometimes agents go on a listing appointment and as they’re driving away, they forget whether they reviewed something with their sellers. That’s why it’s so important to have a check list as you’re reviewing the steps with your client. Our brains work best with check lists. When you have check lists in place, they will make you a better Realtor® and you’ll have more closings,” she said.

Realtors® need to take steps to protect their clients’ interests. “You can’t rely on other agents; Realtors® need to step up their game,” Hall said. “I call the buyer’s lender as a listing agent, to make sure they are actually pre-approved. I’m not receiving confidential information, but I am confirming they are qualified to purchase the seller’s property. Every lender and bank is different. And things that worked a long time ago, don’t always cut it anymore.”

Hall will present four programs at Triple Play Realtors® Convention and Trade Expo in Atlantic City, December 8-11. Her courses include: “Critical Rules, Reforms & New Realities,” “Foreclosures & Short Sales,” “Bulletproof the Deal: Understanding Lending and Credit” and “Working with Investors: The Good, the Bad and the Taxable.” Register online to attend Triple Play.