Designated Realtor®—April 2024

PAVING THE WAY FORWARD

Important Dates & Deadlines

April

1 April Fools’ Day

FAIR HOUSING MONTH

15 Tax Day

9 Buyer Agency Agreement Webinar

9 Eid al-Fitr

10 Candidate Training

June

16 Board of Directors Meeting

22 Earth Day

22-30 Passover

NATIONAL HOMEOWNERSHIP MONTH / PRIDE MONTH

11 Board of Directors Meeting

11-13 Shavuot

May ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH

4-9 Realtors® Legislative Meetings

5 Cinco de Mayo

12 Mother’s Day

27 Memorial Day NJ Realtors® Office Closed

14 Flag Day

16 Father’s Day

19 Juneteenth July

4 Independence Day NJ Realtors® Office Closed

WHAT’S BUZZING IN REAL ESTATE?

1

As of March 20, there are new mandatory flood history disclosure requirements for all sellers and certain landlords. New Jersey Realtors® has officially updated its contract of sale, lease, seller’s property condition disclosure statement, and new flood risk notice on Zipform. Click here to log into zipForm.

2 Heading to the 2024 Realtors® Legislative Meetings? Click here for this year’s schedule

3 On April 9 at 11 a.m., join NJ Realtors® Chief Counsel Barry Goodman and NJ Realtors® General Counsel Yuliya Tedeschi as they review the brand new buyer agency agreement form, available in zipForm in early April. Questions on the new form may be submitted during the webinar. Register here

4 New research shows prospective buyers are willing to accept a smaller property as long as it has these key amenities

5 With more federal energy efficiency rebates available, homeowners are tapping into savings opportunities and shifting market trends toward sustainability.

6 The National Association of Realtors® is correcting inaccurate media coverage that claims NAR sets commissions, which is untrue. Click here to learn more.

7 New Jersey Realtors® Housing Opportunity Foundation’s baseball night at the Somerset Patriots is back on June 20. Click here to purchase tickets

CELEBRATE FAIR HOUSING MONTH

April marks Fair Housing Month, a time dedicated to advancing equitable housing opportunities for all. This month holds special significance, originating from the enactment of the Fair Housing Act on April 11, 1968. This pivotal legislation paved the way for dismantling discriminatory barriers based on race, color, religion, national origin, sex, familial status, and disability in housing.

As we navigate this month, we must reflect on our progress toward fair housing. Each step contributes to building a more inclusive and accessible future for every individual. In addition to federal protections, New Jersey upholds this commitment through laws such as the New Jersey Law Against Discrimination, which extends safeguards to cover additional protected classes.

This month, delve into the significance of the Fair Chance in Housing Act and play your part in taking strides to eliminate housing barriers, ensuring everyone has an equal opportunity to find a place to call home.

Utilize these tools and resources to educate yourself and provide you with the necessary resources to uphold fair housing standards and prioritize inclusivity.

FAIR HOUSING EDUCATION

Take a Fair Housing class or course to learn more about compliance and inclusivity in real estate.

Fair Haven

The National Association of Realtors® fair housing simulation fair housing simulation training using the power of storytelling to help members identify, prevent, and address discriminatory practices in real estate.

Bias Override: Overcoming Barriers to Fair Housing

Join New Jersey Realtors® on April 29 for a webinar to help Realtors® interrupt stereotypical thinking and avoid fair housing pitfalls to provide equal, professional service to every customer or client. Participants will earn three elective continuing education credits.

New Jersey Division on Civil Rights Education Unit

The New Jersey Division on Civil Rights offers various training courses aimed at preventing and addressing discrimination.

DOWNLOADABLE GRAPHICS

FAIR HOUSING RESOURCES

Utilize these tools and resources to better understand Fair Housing laws and practices.

Know the Law: New Jersey Division on Civil Rights Discrimination Resources

• 5 Things You Should Know About the NJ Law Against Discrimination

• 5 Things You Should Know About the Prohibition on Racial Steering in New Jersey

• 5 Things You Should Know About Emotional Support Animals in Housing

New Jersey Realtor® Magazine

• How to Recognize and Combat Housing Discrimination

• NJ LAD Protects Tenants Paying Rent with Section 8 Housing Choice Vouchers

Show your support for Fair Housing Month with downloadable digital graphics and posters from the New Jersey Division on Civil Rights. Click here to download and share

HOMEOWNERSHIP TRENDS: A Decade of Growth Across Racial and Ethnic Groups

A Highlight on the National Association of Realtors ®

2024 Snapshot of Race & Homebuying

Minority groups are experiencing a notable uptick in homeownership rates compared to last year, according to the National Association of Realtors® 2024 Snapshot of Race and Homebuying in America. The annual report highlights homeownership trends, the mortgage market, affordability by race, and home buyer demographics, drawing from the 2023 Profile of Home Buyers and Sellers, homebuyers, and fair housing data.

HOMEOWNERSHIP RATES ON THE RISE FOR PEOPLE OF COLOR

Over the past decade, homeownership rates have consistently risen across all racial and ethnic groups in the U.S. Notably, Asian Americans have experienced the most significant increase in homeownership, with a remarkable gain of 6.1% compared to 2012. This surge has led to nearly 1.5 million more Asian Americans achieving the dream of homeownership over the past decade.

Following this trend closely, the Hispanic homeownership rate has increased by 5.4% compared to the rate recorded in 2012. This substantial gain equates to approximately 3.2 million Hispanic Americans becoming homeowners between 2012 and 2022.

White homeownership rates have also risen by 3.1%, reaching 72.3% from 69.2% in

2012. This increase translates to roughly 65,000 more white Americans attaining homeownership over the past decade. However, it’s essential to note the rise in the white homeownership rate seems primarily due to the decrease in the white population during the past decade, as there are approximately 3.7 million fewer households classified as white Americans than in 2012. Moreover, the actual growth in the white homeownership rate has been even slower than 3.1%.

The Black homeownership rate increased by 1.6% during the same period, resulting in nearly 950,000 more Black Americans transitioning to homeownership. While this upward trend in Black homeownership is encouraging, it has not matched the pace of growth seen in other racial and ethnic groups. The Black homeownership rate remains below 45%, significantly lower than that of any other group.

THE HOMEOWNERSHIP AND NET WORTH CONNECTION

The correlation between homeownership rates and net worth is pivotal. Net worth, the total assets minus household liabilities, is a crucial indicator of financial stability and overall economic well-being. When homeownership rates are lower among minority groups, those groups’ net worth also tends to be significantly lower.

HOMEOWNERSHIP RATES ON THE RISE SINCE 2012

Asian Americans

+6.1% +5.4% +3.1% +1.6%

Hispanic Americans

White Americans

Black Americans

White Americans

MEDIAN NET WORTH IN 2022 $284,310 $44,100

Black Americans

For instance, in 2022, the median net worth of a typical white family in the U.S. was $284,310, more than six times greater than that of a Black family, which stood at just $44,100.

Lower net worth not only implies reduced access to financial resources but also limits investment opportunities and weakens the ability to weather economic downturns or unexpected expenses. Furthermore, it perpetuates intergenerational wealth gaps, as families with higher net worth can provide more support and opportunities to future generations.

The disparity in net worth is not solely a result of differences in income or education; it is largely attributable to variations in homeownership rates and the accumulation of home equity.

FACTORS AFFECTING HOMEOWNERSHIP RATE AMONG MINORITY GROUPS

People of color still encounter substantial obstacles to homeownership compared to their white counterparts. Limited inventory and disparities in housing affordability between communities of color and white communities are among the key barriers highlighted in the report.

In the U.S., people of color still encounter substantial obstacles to homeownership compared to their white counterparts. Limited inventory and disparities in housing affordability between communities of color and white communities are among the key barriers highlighted in the report, but financial burden and demographic challenges are also among homeownership challenges for minority groups.

Affordability Challenges

For example, the report highlights how female and millennial buyers have driven the most growth in Black homeownership. Female buyers exhibited faster growth rates than their male counterparts each month, with an average year-over-year

growth rate of 10.4% between October 2018 and September 2021. Similarly, Black millennial buyers saw an average yearover-year growth rate of 13.8% during the same period. Despite these positive trends, significant barriers to homeownership persist among Black Americans.

Affordability challenges remain a major concern, particularly for Black potential homebuyers who are disproportionately impacted by rental affordability issues and student debt burdens. Additionally, housing affordability challenges can disproportionately affect different racial and ethnic groups due to various historical, economic, and systemic factors. Racial and ethnic minorities often experience lower incomes on average compared to white households, resulting in difficulty affording homes and saving for down payments.

Demographic Trends

According to the report, over the next five years, an estimated 1.5 million Black households, 775,000 Asian households, and 2.2 million Hispanic households are expected to reach the median homebuying age. However, among homeowners, data indicates a trend of higher housing burdens experienced by Black and Hispanic homeowners compared to their white and Asian counterparts.

For example, according to the New Jersey Institute for Social Justice’s 2022 Black Homeownership Matters report, 38.4% of Black New Jersey households own homes compared to 75.9% of white New Jersey households. In addition, Black families that do own homes have significantly fewer financial benefits from their investment than their white neighbors. In fact, New Jersey has one of the starkest racial wealth gaps in the nation, with its white households holding $322,500 at the median compared to only $17,700 for Black households.

The effectiveness of the demographic shift in changing homeownership rates

will primarily hinge on addressing systemic barriers such as affordability, access to mortgage finance, and the availability of housing stock. However, by concentrating on tailored, communityspecific solutions, there is a chance to make significant strides toward achieving equitable homeownership across all racial and ethnic groups.

GROWTH RATE IN BLACK HOMEOWNERSHIP OCT. 2018–SEPT. 2021

Females

10.4%

13.8%

NEW JERSEY RACIAL WEALTH GAP

White NJ Households

Millennials $322,500 $17,700

Black NJ Households

BCRAFTING YOUR ONLINE BRAND

uilding a strong online brand for Realtors® goes beyond just a logo, headshot, or tagline. Think about the small businesses you love—what keeps you coming back? It’s the experience and attention to detail. A strong personal brand in real estate is crystal clear in its messaging: who you are, what you do, who you serve, and the problems you solve. Your content is the key to consumers discovering, engaging with, and understanding your brand—it’s your digital billboard, showcasing what makes you and your business unique.

Understanding Personal Branding

Personal branding establishes the name you create for yourself, developing and managing the impression you leave on others. A well-defined personal brand helps you stand out, establish credibility and trust with clients, and set yourself apart in a competitive marketplace. For example, if you consistently showcase your pride and expertise in a specific neighborhood, you can develop a strong personal brand as a local market expert in that community. Think about an experienced industry expert or a respected real estate professional you know. What sets them apart? It could be their niche expertise in luxury properties, their dedication to assisting first-time homebuyers, or perhaps their magnetic charisma that leaves a lasting impression. These distinctive qualities form their personal brand, aligning their unique traits with their business identity to create a memorable and authentic connection with clients.

Crafting Your Brand Identity

To establish your brand effectively, start by understanding your target audience. Who are your ideal clients, and what do they seek in a real estate professional? Then, pinpoint your unique value proposition. What distinguishes you from other professionals? Whether it’s your neighborhood expertise, negotiation skills, or dedication to top-notch service, highlight what makes you stand out. Finally, craft a clear brand message that resonates with your audience and reflects your unique value proposition.

As you craft your brand message, consider the following: Who are your ideal clients, and what do they seek in a real estate professional? Are they luxury homebuyers, first-time buyers, or investors looking for opportunities? Then, pinpoint your unique value proposition. What distinguishes you from other professionals? Whether you excel at navigating specific challenges and finding solutions, maintain meticulous attention to detail across every transaction, or have empathetic and compassionate listening skills to understand your client’s concerns and goals, highlight what sets you apart.

For example, if your niche expertise lies in helping first-time buyers, your brand message could emphasize your ability to educate clients, guide them through each step of the homebuying journey with patience and expertise, and address all their concerns. Your brand message might be something like, “Empowering First-Time Buyers: Guiding you through every step of the process with patience, knowledge, and unwavering support.”

If you excel in investment properties, your brand message might be, “Unlocking Investment Opportunities: Leveraging market insights and strategic negotiation to maximize your real estate investment potential.” Craft a clear brand message that resonates with your audience and reflects your unique value proposition, ensuring it aligns with your target clients’ needs and desires.

Building Your Online Presence

Your online presence is a critical component of your brand strategy. Start by creating a professional and user-friendly website showcasing your tailored brand identity, services, listings, and contact information. Your brokerage could assist in setting up your website, or you can explore user-friendly platforms like Squarespace, Wix, or WordPress, which offer templates and easy-to-use tools for building a website.

To find free high-quality images, you can explore websites such as Unsplash, Pexels, iStock, or Pixabay. Consider using your smartphone to capture high-quality images of properties by following these pro tips: maximize natural lighting, use the rule of thirds for composition, and utilizing editing apps like Snapseed or Adobe Lightroom to enhance your photos before uploading them to your website. Your website should include high-resolution photos, client testimonials, and informative content to encourage engagement, effectively showcase your expertise, and attract potential clients to your business.

Mobile-friendly content is key, ensuring you reach a broader audience while boosting engagement and fostering connections with potential clients on the go. According to the National Association of Realtors® 2023 Technology Survey, 92% of Realtors® use Facebook in their real estate business, 68% use Instagram, 52% use LinkedIn, and 26% use YouTube.

To stand out in today’s real estate market, Realtors® must go beyond mere social media presence. Effectively harnessing these platforms to build your personal brand and engage your audience is vital. Instead of solely focusing on promoting listings, aim to provide genuine value by establishing yourself as a neighborhood expert and community advocate.

Consistency is Key

Maintain consistency in your branding across all online platforms, including your website, social media profiles, email communications, and marketing materials.

Additionally, consider creating a style guide—a document outlining your brand’s visual elements, such as logo usage,

color scheme, fonts, and messaging tone. A style guide serves as a reference for anyone creating content or materials for your brand, ensuring all materials are consistent and aligned with your brand identity.

Use the same logo, color scheme, fonts, and messaging to reinforce your brand identity and make it easily recognizable to your audience. Consistency builds trust and credibility with clients and helps you establish a strong and memorable brand presence online.

A tool like Canva’s Brand Kit can help you establish brand consistency, ensuring your message remains cohesive and recognizable across all channels.

SOCIAL

MEDIA TIPS TO KEEP YOUR BRANDING STRONG

1 Targeted Content Matters

Craft content that speaks directly to your audience’s interests and questions. Draw inspiration from consumer inquiries and local market trends to create informative and engaging posts. Infuse your unique expertise and personality into your content while maintaining a consistent tone and visual style that reflects your brand.

2 Avoid Overly Restrictive Personal Branding

Don’t let your personal brand become a barrier to connecting with clients. For example, if you market yourself solely as a listing agent, you might unintentionally deter buyers from seeking your assistance. Your online content should have a balance between showcasing your strengths and remaining accessible to all potential clients.

3 Stay Connected with Your Audience

Consistency is key when it comes to engaging with your audience on social media. Regularly posting and responding to comments not only keeps your audience engaged but also helps to build a sense of community and trust. Imagine the impact of consistently showing up for your followers, responding to their questions, and acknowledging their feedback. It’s like nurturing a relationship—the more you invest, the stronger it becomes.

National Association of REALTORS ® Announces Potential Settlement to Resolve Nationwide Claims Brought by Home Sellers

On March 15, the National Association of Realtors® announced a proposed settlement that would resolve claims against NAR, over one million NAR members, all state/territorial and local Realtor® associations, all associationowned Multiple Listing Services, and all brokerages with an NAR member as principal with a residential transaction volume in 2022 of $2 billion or below.

The settlement, which is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the MLS cooperative compensation model. Under the terms of the agreement, NAR would pay $418 million over approximately four years.

The three main takeaways of the proposed settlement are:

• Offers of broker compensation are prohibited on the MLS

• MLS participants working with buyers must enter into written agreements with their buyers

• This releases most NAR members and industry stakeholders from liability and allows cooperative compensation as a choice for consumers when buying or selling a home

New Jersey Realtors® already provides a buyer agency agreement through our forms provider, zipForm. The association has also been actively working on updating that form and expect it to be ready for release in April, ahead of when the proposed settlement could take effect.

Most importantly, New Jersey Realtors® recognize this settlement will have a significant impact on our industry and our members and the association has taken steps to ensure its members remain well-informed throughout this process. The association has launched a resource page aimed at helping members stay updated on the antitrust lawsuit proceedings, specifically regarding the case Burnett v. the National Association of Realtors® et al. This webpage includes

frequently asked questions and other valuable resources to address any queries you may have about the antitrust lawsuit and will continue to be updated with further information as it becomes available.

RESOURCES

Competition.realtor: Learn how NAR is fostering consumer-friendly real estate marketplaces.

Facts.realtor: A central hub for updates and materials on NAR’s commitment to fortify the association, defend Realtors® and their value.

Litigation Update Video with NAR President Kevin Sears & Katie Johnson: Hear how NAR’s resolution provides a path forward for the industry and helps ensure consumer choice.

NAR Settlement Fact Sheet: Discover the facts about the proposed settlement agreement and the factors influencing what NAR could achieve in this settlement.

NJ Realtors® Antitrust Lawsuit

Resource Page: Stay informed about the antitrust lawsuit with NJ Realtors®’ resource page, featuring FAQs and other valuable resources for members.

Proposed Settlement FAQs

1. What is the value of a Multiple Listing Service? MLSs have always provided significant value beyond communicating offers of compensation. MLSs:

• Enable comprehensive marketplaces: Access to inventory and widespread advertising incentivizes local broker participation.

• Ensure reliable data access: The National Association of Realtor’s® guidelines for local MLS broker marketplaces enable hubs of trusted, verified information where all participants have equitable access.

• Create connections: Local MLS broker marketplaces create the largest opportunity for connections between real estate agents with properties to sell and those with clients looking to buy.

• Advance small businesses: Compiling housing information that is accessible to all businesses, in one place, allows smaller real estate brokerages to compete with larger ones.

• Encourage entrepreneurship: Because of lower barriers to entry enabled by local MLS broker marketplaces, new market entrants can advance technology, consumer service and other innovations.

Important Information Regarding Buyer Agency Contracts

In February, the Consumer Federation of America, a nonprofit watchdog group, issued a report titled “Required Buyer Agency Contracts: Impacts on Home Buyers.”

The report is based upon the analysis of 43 buyer agency contracts, most from state or local Realtor® associations, providing opinions and recommendations on certain practices used across the country.

While the CFA’s opinions and recommendations are not legally binding and do not establish any new standards, they should be reviewed and considered when creating new or examining existing buyer agency contracts.

Read the Reports.

2. What should listing brokers advise their clients about the prohibition of offers of compensation on an MLS?

• Listing brokers should inform their clients that offers of compensation would no longer be an option on an MLS.

• This change will not prevent offers of cooperative compensation off an MLS. And it will not prevent sellers from offering buyer concessions on an MLS (for example—concessions for buyer closing costs).

• Compensation would continue to be negotiable and should always be negotiated between agents and the consumers they serve.

3. Will NAR raise dues or levy an assessment on members to fund the settlement?

• NAR’s membership dues for 2024 will not change because of this payment.

Read the full FAQs here.