Hey, REALTORS® 🦋 Why Are You Afraid Of Change?

Good morning, Thomas... I'm not afraid of change... I've dealt with massive change since I entered the workforce in 1972. At this stage of my life, since I don't really need to work, the question is more do I want to keep dealing with change.

Hello Thomas - while change is a constant companion, there are those who choose not to embrace it for many reasons.   Some even seem to try to push it aside ignoring the inevitability of the evolution of many kinds of things. 

It's not just seen in the practice of real estate.  Look around everyday life, I believe there is a lot of evidence.  And not just "these days" but history tells a much longer tale.  

Hello Thomas and the older I get the more I wonder if I can learn all the new changes that are happening now for us.

I have had seismic shifts in my business in the last few years. I am not afraid of change- though it's a lot of major changes in a short time. Interest Rates and decreased sales- that can be ugly- but that is all part of a traditional cycle- and not what I am referring to. The surfside collapse ultimately changed bank underwriting for condos and co-op's last July. When you combine that with our Local Law 11- which is a mandatory 5 year inspection of the facade- it makes for a devasting impact. Local Law 11 compliance is typically expensive and time consuming. If your building needs to make some repairs- but doesn't complete the fixes within the 5 year cycle- then the city automatically designates your building as Unsafe - even though the building might actually be very safe. This "Unsafe" status then carries into bank underwriting- and obviously agency lending as well as portfolio lenders don't want to underwrite. Also for me-First Republic was a huge underwriter in these types of situations...now gone- and no one to replace them. So now I have situation after situation where the buildings have become unfinanceable. NYC probably has the highest level of cash buyers anywhere so that helps minimize the blow- but it is a big deal. There are of course ways to still get a deal financed- but it's often not attractive options for the buyer.   

We barely participated in the huge price run up during Covid, and now with the increase in interest rates for such a long period, and anticipated cuts at some point in the relatively near future- we have also seen a lost decade for price appreciation.

Then there is more and more regulation being added - rental price controls, now a proposal for landlords to be required to provide air conditioners to tenants, increased requirements for buildings, increased financial reserves by banks, etc. all within the last few years. 

Now- there is the changes for buyer agent commissions. For me- I can prove my value with ease and I am not worried about that aspect- but I still see this as a nightmare largely because it adds an increase into my workload administratively, since I now have to reach out to every broker to learn the buyer agent commission,  but also adds stress/additional areas to be addressed during negotiations, etc.

There are also a lot of tech changes in the last couple of years as well, and again this wouldn't bother me at all if I wasn't spending so much time on the banking, regulatory compliance and now the commission issues. I spent years as a training manager helping people through periods of change in their jobs- but this period for my market is unlike anything I dealt with.  

I have had seismic shifts in my business in the last few years. I am not afraid of change- though it's a lot of major changes in a short time. Interest Rates and decreased sales- that can be ugly- but that is all part of a traditional cycle- and not what I am referring to. The surfside collapse ultimately changed bank underwriting for condos and co-op's last July. When you combine that with our Local Law 11- which is a mandatory 5 year inspection of the facade- it makes for a devasting impact. Local Law 11 compliance is typically expensive and time consuming. If your building needs to make some repairs- but doesn't complete the fixes within the 5 year cycle- then the city automatically designates your building as Unsafe - even though the building might actually be very safe. This "Unsafe" status then carries into bank underwriting- and obviously agency lending as well as portfolio lenders don't want to underwrite. Also for me-First Republic was a huge underwriter in these types of situations...now gone- and no one to replace them. So now I have situation after situation where the buildings have become unfinanceable. NYC probably has the highest level of cash buyers anywhere so that helps minimize the blow- but it is a big deal. There are of course ways to still get a deal financed- but it's often not attractive options for the buyer.   

We barely participated in the huge price run up during Covid, and now with the increase in interest rates for such a long period, and anticipated cuts at some point in the relatively near future- we have also seen a lost decade for price appreciation.

Then there is more and more regulation being added - rental price controls, now a proposal for landlords to be required to provide air conditioners to tenants, increased requirements for buildings, increased financial reserves by banks, etc. all within the last few years. 

Now- there is the changes for buyer agent commissions. For me- I can prove my value with ease and I am not worried about that aspect- but I still see this as a nightmare largely because it adds an increase into my workload administratively, since I now have to reach out to every broker to learn the buyer agent commission,  but also adds stress/additional areas to be addressed during negotiations, etc.

There are also a lot of tech changes in the last couple of years as well, and again this wouldn't bother me at all if I wasn't spending so much time on the banking, regulatory compliance and now the commission issues. I spent years as a training manager helping people through periods of change in their jobs- but this period for my market is unlike anything I dealt with.  

Good morning Thomas,

Excellent post! We live with change and this is a huge change for many agents. We've been using Buyer Agency Agreements for years so not new to us. I do feel agents are now a target for future ligiation in this litigious society we live in, so better dot your i's and cross your t's.

I do not fear change but have not kept up with changes in technology.

Change is a constant in this biz, my guess is the pace of change will pick up verses slow 

Hi Thomas- I am not fond of change that makes no sense but love change as the natural order of things. I love the Victor Frankl quote. 

News Flash - there is one constant in life.  CHANGE! I like change and there have been  a ton of changes this last 35 year in the real estate business. Bring em on baby! 

Featured in Bananatude!

I am not afraid of change, but when we get in a good groove, it's natural to not want anything to change that, haha.

They say change is inevitable, and I agree with that.  Some folks say that change is good.  I don't necessarily accept that as said.  Change is pure raw energy, only as beneficial as those who have the power to shape and direct it!  

CONGRATULATIONS Thomas, on having this blog FEATURED in the Old Farts Clubgroup!  

Thomas J. Nelson, your insight into the fear of change is spot on! Embracing change opens doors to growth and innovation. Keep pushing boundaries and inspiring others! #StayMotivated #EmbraceChange 🌟🦋

Love the 🦋 image, Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, ePRO . Reminds me of my mom. She raises butterflies at her home in Florida.

Thomas I think also why people are scared of change is the unknown. With the NAR changes that will take effect August 17,we don't know what's going to happen. But it is going to be very interesting,I'll tell you that.

I’m now in my last Ten Years . I have a 40 lot Subdivision to sell out over the next 5 years ($600-700k) . And am pretty much working By Referral Only ( thru my SOI) ….

Hi Thomas! There are SO many changes, maybe it is partially feeling overwhelmed by so much rather than being afraid of change!