2020 NAR President Vince Malta reflects on how the association served people in this year like no other.

THROUGH IT ALL: Area wildfires presented the latest challenge for President Vince Malta. Here, on a business call from his home, just outside San Francisco, he shows how the light appeared Sept. 9 at 10 a.m.

As a San Francisco real estate broker, you’ve faced a lot this year. What’s it been like in your city over the past couple of months?

At least when you’re sheltering in place, you can go outside. During the wildfires, when the air quality reached hazardous levels, that wasn’t safe. We can never take anything for granted—not even air. Real estate mostly halted for a few weeks during the fires, but we closed transactions because we had learned from the pandemic. All of these things prepare us for the future.

What have you learned from all of this?

Crises—the pandemic, wildfires, hurricanes—magnify the strengths and weaknesses of our business models and policies. The pandemic catapulted products and services that are indispensable. It also spotlighted long-standing issues, like affordability and housing discrimination, that have long needed attention.

We had to go full bore on many unexpected legislative issues this year. What advocacy and policy achievements are you most proud of?

I’m proud of how the local, state, and national levels were able to work together to ensure real estate was deemed essential around the U.S., especially in places like Pennsylvania, where it proved difficult. Without this designation, our industry would have struggled far more and the economy would be in worse shape. We were able to keep people safe and keep business moving. I’m very proud of our fair housing work and the efforts of the Fair Housing Policy Committee, which we created before the events of 2020. Our legislative successes, too, like COVID-19 relief for independent contractors and small businesses, are critical to strengthening communities.

The pandemic has turned NAR into a pro at hosting virtual conferences. What are you looking forward to at Annual, Nov. 2–18?

With a virtual format, so many more members can see what their association does for them, and, hopefully, we’ll convert them to attend in-person meetings in the future. The conference spans 17 days. Registrants can take everything in at their own pace and even get on-demand access to recorded education sessions for a month, with an option to extend that period.

What will you most remember about 2020?

I’ll remember the resiliency and adaptability of members and staff. In some ways, being a “virtual” president was more demanding; when you’re out of town, you get a reprieve from the home responsibilities. When my presidency ends, I look forward to not having 45 new emails every time I put down my phone. But I have no regrets. I’ve seen our members working at their finest when people needed us most.

©National Association of REALTORS®
Reprinted with permission

Join the growing ranks of sustainability champions in our association.

There are many benefits to being good stewards of our land—helping our clients save money through energy efficiency, using fewer precious resources, and creating vibrant, livable communities. As you gain knowledge and insight on sustainability, you create another layer of information value for your clients. That’s what this issue of REALTOR® Magazine is all about—a chance to hear from pros who use sustainability in their marketing, apply it in their lives, and contribute to it in their communities.

The language around sustainability can be divisive. As someone with a passion for this topic, I hope that changes—and I’m encouraged that it is. There’s an understanding today that when we talk about green, we aren’t just talking about energy sources. We’re talking about all the essential components of healthy homes and buildings, including energy-efficient doors and windows; insulation; ventilation and moisture management; smart thermostats; and resilient, nontoxic building materials.

That message is resonating with more and more members and consumers. Half of agents and brokers surveyed for the 2022 REALTORS® and Sustainability Report,released in April, said they had helped a client buy or sell a property with green features during the past 12 months. That’s a big jump from 32% in 2021. Nearly two-thirds said promoting energy efficiency in listings was very or somewhat valuable. And 51% said their clients were somewhat or very interested in sustainability. The report also noted rising anxiety among members about the effect of extreme weather events on their business. More than one in three respondents said they were very or somewhat concerned.

For me, taking action is the best way to combat anxiety. That’s what the National Association of REALTORS® is doing by modernizing our headquarters buildings, developing a one-hour online sustainability course for members, and forging partnerships that amplify our work. For instance, at homeperformancecounts.info(link is external), we’ve partnered with the National Association of Home Builders to educate consumers and industry professionals about the benefits of a high-performance home. We’re also partnering with the National Oceanic and Atmospheric Administration to get a better understanding of climate risk.

REALTORS® are uniquely positioned to address sustainability head-on. So strongly does our Leadership Team believe this that we have made it a strategic priority for NAR. Sustainability is woven into our decision-making and the many activities and initiatives we’re undertaking to unlock opportunities for health, equity, and well-being. Yes, equity is an important component to sustainable communities, because when all people have access to resources, together we share in a healthy outcome.

What Can You Do?

Use and advocate for green data fields in your MLS. Only 35% of respondents in the sustainability report said their MLS had green fields, yet homes with green certifications often appraise at a premium. Earn your GREEN designation from the Green REsource Council (green.realtor(link is external)). And visit nar.realtor/sustainability for resources you can use. Together, let’s be valuable contributors to the success and health of our communities.

©National Association of REALTORS®
Reprinted with permission

You know that client credit is critical for mortgage approval, but are you aware of the impact it can have on your real estate business?

Your clients’ credit is relevant in many more ways than just getting approved for a mortgage. You may be surprised to know that their scores have implications for your business and how much you get paid for your services. How is that? Here are five ways your clients’ credit affects you.

When clients get unfavorable loans because of bad credit, it can reflect on you. The first step for most home buyers is to get preapproved for a mortgage, though not everyone agrees on the merits of preapprovals. Clients who have limited loan options because of a low credit score likely will seek advice not only from mortgage officers but also from you. Here’s where your knowledge and reputation as a customer service provider is important.

You should, for example, be prepared to answer questions and warn of risks associated with “nonprime loans,” a postrecession PR nomenclature for subprime loans. These loans, which clients can get when they don’t qualify for a traditional mortgage, can be risky. So when you work with a client who has secured a nonprime loan, you are showing support for risky financial behavior that may come back to reflect badly on you.

Help clients who have good to great credit scores get preapproved for a loan in their financial comfort zone. Advising them to wait a few months in order to pay down debt or otherwise improve their credit report can benefit both your client and your business reputation. Educate yourself on the factors that impact credit scores, including:

• Length of credit history
• Debt-to-income ratio
• Debt to available credit ratio
• Payment history
• Public records such as bankruptcies or collection items (even library fines can reflect poorly on a credit report)
• Inquiries
• Accounts in use

Credit scores don’t reveal your clients’ entire financial picture, but they give a good indication of their future ability to pay the mortgage and keep the home you worked hard to find for them.

Better client credit earns you higher commissions. A client may be preapproved for a smaller loan if their credit history is not long or their credit score is not high. While you can still work with clients in the good credit score range to find a mid-range house, helping people settle for an OK home is not what most real estate professionals are clamoring to do. And it won’t pay you well.

You work hard every weeknight and weekend writing and rewriting offers, anxiously awaiting escrow to close. You want to get paid handsomely for your hard work. A wonderful client with a low credit score is not going to be able to get preapproved for a competitive mortgage for a premium property. So the more clients you have with low scores, the smaller your commission checks will be.

Even if you’re getting a lot of clients and leads with less-than-amazing credit scores, there’s hope. You can help buyers who are on the verge of a great credit score improve it with better financial habits or clear up small credit issues by writing a letter to the creditors. You may be surprised by the impact a few negative items can have on your clients’ credit report. On top of getting clients approved for the home they really want, if you genuinely care about people, the good news will spread(link is external). You will more than likely get referrals from people who like and trust you.

Clients with low credit scores require your knowledge of alternative financing options. If your clients’ credit scores are not in the high 700s, you can help them utilize other resources. FHA and VA loans help hardworking families become homeowners. If you choose to work with buyers who have lower credit scores, you’ll need to educate yourself on alternative financing options like these.

• Get an FHA loan: Over 3,000 counties in the U.S. decided to follow the recent national limit increase, with some loan limits for single-family homes reaching in the high $600,000s.
• Consider a VA loan: Eligible borrowers include “service members and veterans, spouses, and other eligible beneficiaries.” It’s worth looking into if a VA loan could help a client save money on the down payment or get approved sooner.
• Provide a higher down payment: If your client has poor credit, they can sweeten their offer with more cash up front. However, the way the market is trending, even people with great credit are offering a higher down payment. So improving their credit score is still a good idea for most of your clients.

You’ll get more business from clients with great credit. Clients who are happily settled in their new home and steadily paying their mortgage are more likely to refer friends and neighbors to you. Usually, these happy home buyers are people who have less financial risk on the line and are more likely to be financially stable in the coming years. They likely have friends in similar positions, so your referrals will be high quality.

On the other hand, the young couple whom you nudged a bit toward the home just outside their budget and who now have a baby on the way are wondering if they should have said no to this house. They may not be a great referral source. In fact, unhappy clients may be a source of bad press, something that’s hard to shake.

It’s imperative that you pay attention to your clients’ nonverbal cues—one of which is their credit score. Even if a client can get approved for a higher loan, or their partner can, it doesn’t mean they should. If your clients have a poor credit score (below 650) then you may get the backlash of buyer’s remorse down the road.

Clients with great credit are more likely to buy investment properties. Similar to referrals, repeat clients can keep your business afloat. Whether they’re middle-aged parents cosigning on their child’s first home or investors trusting you to tell it to them straight, your clients’ credit score can really boost your repeat business and help you sell more properties.

Clients with great credit are more likely to buy a second investment property. Bankrate lists being a “strong borrower” as a competitive advantage for those looking to snag real estate investment properties. The indication of a strong borrower is a credit score above 740. In addition to a loan, banks want serial investors to have a reserve for each property set aside. Clients with great credit scores have a proven financial track record, save money in their everyday expenses, and are in a better position to purchase a home and investment property soon after.

No matter whether your clients have great credit or poor credit, it will affect many parts of your business, from closing the sale to getting referrals and creating a network of happy clients. Understand credit, and you can close more sales and help your clients get the home they deserve.

©National Association of REALTORS®
Reprinted with permission

Goal to plant 1.5 million trees throughout the U.S. to represent NAR’s more than 1.5 million membership

CHICAGO (September 22, 2022) – The National Association of Realtors® today announced a partnership with the National Forest Foundation that will result in 1.575 million trees being planted across the United States. The initiative, which will plant at least one tree for each Realtor® by the end of 2025, was spearheaded by NAR’s 2022 President Leslie Rouda Smith.

“As part of our association’s comprehensive sustainability and resilience plan, NAR is leading by example, like we always do,” said Rouda Smith, a Realtor® from Plano, Texas. “We’re helping to foster more vibrant communities by increasing the number of trees around us, delivering cleaner air, enhancing stormwater mitigation and encouraging biodiversity in ecosystems.

“We are thrilled to partner with the National Forest Foundation as part of our ongoing efforts to support the millions of consumers and communities that we, as Realtors®, serve every day.”

Planting 1.575 million trees reduces 750,000 metric tons of carbon in the atmosphere. This is equivalent to 145,931 homes’ electricity use for one year or the annual operation of over 160,000 gas-powered passenger vehicles, according to EPA calculations.

Determinations on when and where trees will be planted will be made based on repopulation needs in areas affected by events like wildfires, drought or deforestation. NFF only plants native, ecologically appropriate trees and targets support to areas that need the most help.

“We are excited to partner with NAR to expand our tree planting efforts,” said Mary Mitsos, President and CEO at the NFF. “The future of our national forests depends on partnerships like this one to sustain natural ecosystems, foster resilient forests and promote healthy communities. Each contributing dollar means one more tree planted to help to mitigate wildfires, offset carbon footprint, combat climate change and maintain 193 million acres of National Forests. We’re grateful to NAR for engaging with us on this critical initiative and look forward to what we can accomplish by 2025.”

The agreement articulates a partnership between NAR and the NFF to plant 1,575,000 trees in National Forest locations nationwide. A guaranteed donation of $1.575 million from NAR will be used to plant at least 1.575 million trees in National Forest lands by the end of 2025.

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

©National Association of REALTORS®
Reprinted with permission

NAR Integrates CompStak into RPR® Platform as Benefit for Commercial Members

WASHINGTON (October 13, 2022) – The National Association of Realtors® and CompStak announced today a partnership to integrate CompStak into the Realtors Property Resource® platform. All NAR commercial members will have access to CompStak Exchange, an analyst-reviewed comp data and analytics platform. Members will also receive exclusive promotional credits that can be used to discover timely comps in their respective markets. The CompStak platform handles millions of data points weekly to create its comprehensive commercial real estate data set.

“NAR and RPR® continue to build strategic partnerships and enhance our technology resources to advance the goal of being vital business partners to Realtors® who practice commercial real estate,” said Jeff Young, RPR®’s COO and general manager. “Each asset and service we add supports their businesses and adds growth to their bottom line. We are thrilled to partner with CompStak to deliver a unique tool for brokers’ toolboxes that provides valuable information for their clients and helps them close more transactions.”

NAR’s commercial members can sign up for CompStak and redeem this benefit by visiting the “Additional Resources” section of any RPR® commercial property page and clicking the CompStak logo, or by visiting compstak.com/realtor(link is external). Members who already have a CompStak account can email nar@compstak.com(link sends e-mail) with their names and email addresses associated with the account to receive the benefit.

“One of our goals in this collaboration is to provide NAR’s commercial members with quick access to accurate and transparent data,” said CompStak CEO Michael Mandel. “We are excited about CompStak’s integration into RPR®, which will provide Realtors® with a competitive edge and lead to better, faster deals for everyone.” 

Michael Hinton, CCIM, 2022 commercial board president at Miami Association of Realtors® and a senior associate at Apex Capital Realty, has been using CompStak’s platform for the past four years and attributes the service with supporting his success.

“CompStak has been a great source for detailed leasing and sales information for commercial properties,” said Hinton. “The service has certainly helped me win more than a few listings by allowing me to provide quality information to my new clients. Using RPR® and CompStak together will be a huge benefit – both timewise and in cost savings – for me and all NAR commercial members.”

Realtors® can log in to RPR® at narrpr.com(link is external) and visit the RPR® blog(link is external) to review updates on new RPR® product enhancements and related learning.

About NAR

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

About Realtors Property Resource®

Realtors Property Resource, LLC® (RPR®), a wholly-owned subsidiary of the National Association of Realtors®, is an exclusive online real estate database created to support the core competence of its members. The parcel-centric database, covering more than 160 million residential and commercial U.S. properties, provides Realtors® with the analytical power to help clients make informed decisions while increasing efficiency in the marketplace. For more information about RPR®, visit http://blog.narrpr.com(link is external).

About CompStak

CompStak is a commercial real estate data and analytics platform leveraging crowdsourced commercial lease and sale transaction data and property information combined with AI driven analytics. CompStak’s 30,000 members provide data covering the entire US, and its paying customers include the world’s largest real estate investors and lenders like Wells Fargo, Tishman Speyer, AEW, CIM, Moody’s and many more.

©National Association of REALTORS®
Reprinted with permission