Optimism is a prerequisite for success in sales, and real estate professionals have it in abundance. National Association of Hispanic Real Estate Professionals At the (NAHREP) conference currently underway, this quality is on full display everywhere: speakers are motivating, inspiring and focused on what real estate professionals can control in a turbulent housing market.
Here we summarize some insights gained from previous NAHREP events.
opportunity
One reason NAHREP participants are optimistic is that they serve a population that represents more than half of the U.S. population growth. And that population is young. Average age: 30.7 years old — They are 14 years younger than the median age of non-Hispanic whites and 8 years younger than the overall population. They are also forming households and experiencing increased wealth earlier than other demographics.
of Current Status of the Hispanic WealthyA study released today finds that the gap between Hispanic and non-Hispanic white households remains large but is narrowing. The report uses data to dispel some of the myths about Hispanic consumers. Some of the statistics include:
- 71% of homes purchased by Hispanic homebuyers in 2023 were located within middle- and high-income census tracts. Only 4% of homes were located within low-income census tracts.
- Hispanic-owned employer businesses are growing 10 times faster than employer businesses overall.
- 96% of Hispanic households have a transaction or checking account with a bank or financial services provider.
- More than one million Hispanic households have a net worth of more than $1 million, and the percentage of households considered high-income is growing.
Hispanic consumers and homebuyers represent an opportunity for real estate and mortgage professionals ready to serve them.
Technology Advantages
Because Hispanic consumers and the Hispanic real estate agents who serve them are both younger, these professionals are more likely to embrace and benefit from technological advancements sooner than others in the real estate industry. One NAHREP session on AI showcased some truly amazing use cases for real estate agents that make marketing and relationship building as easy as ordering an Uber, all available starting today. The standing-room-only session highlighted that these agents are ready.
Recent technological advances have opened up new opportunities to serve Hispanic consumers in other ways, such as through marketing assets and simple translation of home purchase documents. I remember attending a session at a large mortgage conference a few years ago that discussed serving Limited English Proficiency (LEP) buyers, and the consensus was that providing mortgage documents in other languages carried risks, primarily around compliance. In contrast, today I learned the following: rate (formerly Guaranteed Rate) offers the entire loan process in Spanish, from application to closing to servicing, and new AI capabilities enable it to reach borrowers in 120 different languages.
NAR Settlement Changes
Hispanic real estate agents are more likely to act as buyer representatives than their non-Hispanic counterparts, making them more vulnerable to changes in buyer compensation rules, but NAHREP President Nora Aguirre sees Hispanic agents’ experience helping buyers who need more education and development as a strength rather than a weakness in this environment.
“For years, we’ve said that a lot of our top Hispanic agents are actually very effective buyer agents,” Aguirre said in a podcast interview with HousingWire. “It’s almost like they’ve developed this unique niche and ability to communicate and make connections, because Hispanic homebuyers need a lot of nurturing.”
“We’ve seen the value proposition [of buyer agents] “It’s been years and years. So now we’re basically catching up and saying everyone who represents buyers needs to explain this whole plan. In fact, we’ve always had to explain the plan to Latino buyers,” Aguirre said.
During a session on NAR settlement, Martha Mosier, president and chief counsel, Berkshire Hathaway HomeServices California Propertiessaid of the rule changes, “I believe the opportunities far outweigh the challenges,” but noted that amid a flurry of negative headlines about the profession, agents need to be reminded of who they are and the value of the service they provide.
“I really believe that separating commission from settlements has raised the bar for all of us. There were a lot of agents out there who were selling real estate as a hobby, and I don’t think that happens anymore,” Mosier said. “We’re professionals, and we should be able to live that and be proud of it.”
Kuba Djugieniev, CEO and Founder Realty One grouphas grown to 20,000 agents in 49 states and 20 countries, and emphasized the value of finding and working with people who are growth-focused: “What stories do you want to tell? Who do you want to associate with? There are stories of less, less commission, less NAR membership…I don’t want to tell the bare minimum story. I want to associate with people who talk about how to win more, how to achieve more, how to provide more for their families.”
