Optimism is a prerequisite for success as a realtor, and real estate professionals consistently have it. At Tom Ferry’s event last month and National Association of Hispanic Real Estate Professionals (NAHREP) is currently underway, this feature is being shown everywhere. The speakers are inspirational and motivational, focusing on what real estate professionals can do in a crazy real estate market.
Here is a summary of some of the information from the NAHREP event so far.
An opportunity
Another reason why NAHREP attendees are excited is that they are helping many people who are responsible for more than half of the population growth in the US And that population is young, with an average age of 30.7 — 14 years younger than the median age of non-Hispanic whites and eight years younger than the general population . They also build homes earlier than other figures and their wealth increases.
The State of Hispanic Wealth Report, released today, shows that the gap between Hispanic and non-Hispanic white households, while still significant, is narrowing. The report uses data to dispel some of the myths surrounding Hispanic consumers. Some of those figures:
- Seventy-one percent of homes purchased by Hispanic home buyers in 2023 were in middle and higher income census tracts. Only 4% of households were in low-income Census tracts.
- Hispanic-owned employer businesses are growing at 10x the rate of all employer businesses.
- A full 96% of Hispanic households have a checking or checking account with a bank or financial services provider.
- More than one million Hispanic households have an income of more than $1 million and a growing share is considered high income.
Hispanic buyers and home buyers represent an opportunity for real estate and mortgage professionals ready to serve them.
Technical advantage
The youth of both Hispanic buyers and the Hispanic real estate agents who serve them means that this workforce is likely to embrace and benefit from technological advances faster than others in the real estate sector. One NAHREP session on AI showcased some truly incredible use cases for agents that can make marketing and relationship building as easy as ordering an Uber, and it’s all available today. The excitement in that standing-room-only session underscored that these agents are ready.
Recent technological advances are expanding the opportunity to serve Hispanic buyers in another way as well: simple translation of marketing materials and home buying documents. I remember attending a session at a major real estate conference a few years ago that addressed offering to limited English proficient (LEP) buyers and the consensus was that offering real estate documents in other languages was fraught with risk, especially in terms of compliance. Compare that to today, where I read that Measure it (formerly Guaranteed Rate) offers the entire loan process – from application to closing and servicing – all in Spanish. And new AI capabilities make it possible to reach borrowers in 120 different languages.
NAR residential changes
Hispanic real estate agents tend to work as buyer’s agents at a higher rate than a general agent. This leaves them more vulnerable to changes in consumer compensation laws, but NAHREP President Nora Aguirre sees their experience helping consumers who often need more education and training as a strength in this area, not a weakness.
“For years we’ve said that the most productive Hispanic agents are really strong buyers,” Aguirre said in a podcast interview with HousingWire. “It’s like they’ve developed this unique niche and ability to connect and network, because Latino homebuyers need a lot of nurturing.
“We have seen the value proposition [of buyer agents] many, many years. And so now it’s delayed, I say, well, now every consumer representative needs to do this whole process. And really, with Latino consumers, we should have always been reserved for that program,” said Aguirre.
In a session about the NAR settlement, Martha Mosier, president and general counsel at Berkshire Hathaway Homeservices California Propertieshe said about the changes in the law: “I believe that the opportunities far outweigh the challenges,” but he noted that among the negative topics related to work, agents need to remember who they are and the value of the service they provide.
“I really believe that this abolition of commissions and the settlement of cases has put pressure on all of us. “There were a lot of agents out there selling real estate as a hobby – I don’t think that’s going to happen anymore,” Mosier said. “We are experts. We can use that and we should be proud of that.”
To Jewgieniew, CEO and founder of The Reality One The groupwhich has grown to 20,000 agents in 49 states and 20 countries, emphasized the importance of finding and working with people who are focused on growth. “What kind of narrative do you want to be in? Who do you want to hang out with? There are a few narratives: small commissions, small NAR members…I don’t want to talk about small, I want to surround people who talk more: how to win more, earn more, provide more for your family. ?”
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