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Roughly two years after Kamini Lane took the helm at Coldwell Banker Realty, the real estate industry has gone through quite a bit of change and faced its fair share of challenges.
From the interest rate environment and inflation to the commission lawsuits and the business practice changes stemming from the National Association of Realtors‘ (NAR) settlement agreement, it has been quite a ride. And based on the current debate around the Clear Cooperation Policy and greater economic uncertainty, this challenging environment doesn’t appear to be going away.
HousingWire recently caught up with Lane to discuss all of this and more.
This conversation has been edited for length and clarity.
Brooklee Han: There is a lot going on right now that is impacting the real estate industry. What do you feel is the industry’s greatest challenge at the moment?
Kamini Lane: I would say the biggest challenge is the level of uncertainty in the economy. And it isn’t just the level of it — it’s all the uncertainty coming off several years of uncertainty.
At this point, it seems like the one thing that is certain is uncertainty, but it is just a question of what we are going to be uncertain about. First it was COVID, then it was interest rates, and it has been inventory for a very long time. And now it is tariffs but also just macroeconomic uncertainty and how all of that affects people’s liquidity, overall financial picture and ability to afford to purchase a home.
Han: How do you feel this uncertainty differs from the other uncertainties we have experienced over the past few years?
Lane: When faced with any uncertainty, I always encourage anyone — but particularly agents — to really think about what is in their control. I think with COVID and interest rates, similar to tariffs, stock market and macroeconomic uncertainty, there is a lot that they cannot control.
What is in their control is really all about how they are providing unparalleled service to their clients, so that their clients really feel like they have a trusted adviser right there with them in the process — someone who can help make those difficult decisions in the face of uncertainty.
Are the agents controlling the data and information they provide their clients with, making sure it is the most up-to-date and relevant information, so the clients have the full picture of the implications of whatever decision they are considering?
Han: Last year as the industry prepared for the NAR settlement business practice changes, there was so much conversation around that — the services an agent provides a client and the value that they give them. We are approaching a year since those changes went into effect. How do you feel things are going?
Lane: I really think this whole thing has sparked agents to think about value propositions. If you are needing to have a conversation with a client about signing a buyer agency agreement and that is not something you’ve had to do in any level of detail before, it actually provides an excellent opportunity to refine your value proposition.
We have a program called Perfect Pitch that is focused on helping agents define their own personal brand and value proposition. We call it the “30-3-30.” What is your 30-second elevator pitch that is going to make someone want to have a follow-up conversation with you, or your three-minute pitch that is going to make them want to sit down and chat with you? And then what do you do once you’ve gotten that 30-minute conversation to outline what makes you unique and differentiates you from your competition in a way that is relevant to their needs?
Han: How has this increased focus on an agent’s value proposition impacted the industry and Coldwell Banker Realty in particular?
Lane: A stat people like to throw around is that there are more people with real estate licenses than homes for sale in the U.S., and this has been a great opportunity for the cream to rise to the top.
The people who are not experienced, who are not spending the time refining their value proposition and ensuring that they are providing value in exchange for compensation, those people are going to fall out of the business. And we are seeing that happen. Fewer agents are renewing their licenses — not just at Coldwell Banker Realty but across the industry. And I don’t think that is a bad thing. Being a real estate agent is a really honorable profession and we need people who take that seriously.
At Coldwell Banker Realty, it has been a moment for us to really focus on the level and types of services we are providing agents to make sure that they feel prepared for when they go into these conversations with their clients. We are having consistent training on fundamentals, the rules and regulations, the forms they need to fill out and when they need to fill them out by — all the specifics.
Han: Other than the overarching economic uncertainty, what are some of the other major challenges facing the industry?
Lane: We touched upon it in the conversation around agents always needing to raise the bar in terms of service. But I think the headlines associated with industry change last year were really unfortunate and challenged the real value that agents provide.
I think that has been an ongoing challenge and opportunity because, as we discussed, the changes have given agents the chance to showcase the value they provide and to try and change that narrative to some degree. The reality of the situation is that most people in this country would not be able to buy or sell a house without a real estate agent holding their hand — it is just too big, too complex of a transaction.
Han: Currently a lot of the big real estate headlines have to do with Clear Cooperation. How are you working with your agents to navigate that chatter?
Lane: I think it really is about education. There has been so much chatter about this, and I think agents have gotten a bit spun around in it all. But what I keep coming back to is just focus on the fundamentals of providing expert advice and service to your client.
Look at widely available comps with them, and if the other agent is saying they need the private network to validate the price, show them that you have all the data you need to get a validated price. Then also discuss their needs — what does their time frame look like? Their financial goals? Do they have security concerns and a real reason to privately list their home?
If a private listing makes the most sense, then that is the route to take, but I think what is missing from the whole conversation is that a real estate agent has a fiduciary duty to their client to maximize value.
