February Broker Bulletin

Broker Bulletin

What’s Happening at the Association

7.6% increase in closed sales year-to-date, according to NJ Realtors® January 2025 housing market data report. Read the entire report

12 recipients awarded Local Realtor® of the Year awards in 2024. See who all the winners are in the Winter Edition of New Jersey Realtor® Magazine

38 is the median age of first-time buyers last year, according to the National Association of Realtors® Profile of Home Buyers and Sellers

What’s Happening in the Industry

Leave the frost behind and plan a trip to enjoy the sun with one of NJ Realtors® Member Perk Partners Member Deals. There are deals on tickets to popular theme parks like Walt Disney World Resort, Disneyland, Universal Orlando, Universal Studios, and more.

According to NJ Realtors® January 2025 housing market data report, the average sales price year-to-date rose 12.6% to $651,877. Read the entire report

Can’t wait for spring to start your spring cleaning? From using an old toothbrush to scrub small grooves and remembering to clean your dishwashers and washing machines, here are the 10 best cleaning tips from Apartment Therapy to help kick things off.

New Jersey Realtors® Educational Foundation 2025 Scholarship Application deadline is March 13 at 5 p.m. The foundation aims to aid students in the pursuit of a college or university degree. Invite the students in your life or your agents’ lives to apply for this year’s scholarship. Apply now

New Law Updates Fire Regulation Requirements

In early February, the governor signed legislation that updated many of the fire safety standards here in New Jersey. Two provisions of the bill directly impact the real estate industry: the removal of the fire extinguisher requirement included in the state-mandated fire safety inspection or as part of a municipality’s certificate of occupancy local requirement and a new requirement for labeling secondary power sources. The law, which requires the identification and labeling of secondary power sources, will be enforced upon change of occupancy. The identification must be a label warning of a secondary power source, installed within a minimum of 18 inches from the electrical panel and the electrical meter. The label must read or be similar to, “CAUTION: MULTIPLE SOURCES OF POWER.” These secondary power sources include; permanently

FEBRUARY 2025

Does state law require portable fire extinguishers in order to obtain a Certificate of Occupancy or other certificate of inspection pursuant to the Uniform Fire Safety Act? Visit New Jersey Realtors® Legal Resource Library for the answer.

installed internal combustion generators, solar panels, battery storage systems, or any other electrical energy connected to the primary energy source. Read the DCA and Division of Fire Safety memo for more information To comply with new regulations, NJ Realtors® has updated the following forms; Form 118: Contract of Sale, Form 125: Residential Lease, and Form 140: Seller Property Condition Disclosure Statement.

NJ Realtors® will host a New Jersey Fire Regulations update webinar with Lou Kilmer, Bureau Chief, Bureau of Fire Code Enforcement, NJ Department of Community Affairs on March 6 from 10-11 a.m. Learn about recent legislative changes to New Jersey’s fire code, updated forms and refresh your knowledge of fire inspection requirements. Register now

CFPB Halting Agency Activity, Leads to Uncertainty

The Consumer Financial Protection Bureau’s Acting Director Russell Vought announced the suspension of activity across all agency entities. An independent agency within the Federal Reserve System, the CFPB had been mandated to oversee and enforce laws, including mortgage lending, the Equal Credit Opportunity Act, credit reports and bureaus, the Real Estate Settlement Procedures Act, lender supervision, and several fair lending laws. Since the creation of the CFPB in response to the 2008 financial crisis, the National Association of Realtors® has advocated several reforms to benefit agents and the real estate industry as a whole.

“Critics have argued that uncertainty in regulation and oversight could lead to lenders each playing by a different set of rules, creating chaos for consumers and the financial markets, and potentially creating weakness in the housing economy,” said Matthew Emery, NAR Senior Representative of Financial Services, in a recent advocacy update. NJ Realtors® and NAR will continue to monitor the situation and the impacts on Realtor® members.

How Gen Z is Influencing the Housing Market

Generation Z, categorized by being born from the mid 1990s to early 2010, is slowly becoming a more influential part of the real estate market. This generation has a different vision for their future and what their homes will look like. Gen Z grew up with cassettes and CDs, the Internet and Bluetooth, iPods and mobile phones, and according to housing.com, “expects their homes to be just as smart as their devices.” Gen Z has grown comfortable with technology being an integrated part of their lives. They want technology to be a part of their homes as well. Homes with built-in smart home technology may become the new normal as Gen Z floods the housing market. Smart security systems, voice-activated features, energy-efficient appliances, and remotecontrolled thermostats are all tools expected to be incorporated in Gen Z-owned homes to ease their lives, according to housing.com

Gen Z also expects to incorporate ecofriendly and sustainable features within their home. Sustainability and ethical standards are

important decision factors for Gen Z purchases. For example, homes with solar panels, rainwater harvesting systems, zero-waste living, vertical gardens, and communal composting are becoming more desirable and industry standard. “Real estate developers are now incorporating LEED-certified standards to meet the demand,” according to housing.com.

Affordability is one of the main roadblocks Gen Z faces due to inflation prices and entrylevel salaries, according to a 2023 Bankrate.com second quarter Economic Indicator Poll. As prices and mortgage rates continue to rise, Gen Z may discover other ways to homeownership; purchasing a portion of a property with other investors, leasing with a future option to buy, and investing in a property with a pool of buyers. Splitting costs between several parties makes homeownership more attainable and creates a collaborative community dynamic.

Gen Z will continue to shape the real estate market by prioritizing technology, sustainability, and unique affordability options.

Broker Bulletin

Is Climate Change Influencing the Real Estate Industry?

After recent wildfires and hurricanes across the country, the threat of climate change for homeowners is a real concern. New Jersey is prone to specific natural disasters like winter storms, hurricanes, tropical storms, and tornadoes. Typical homeowners insurance in New Jersey covers damages from these natural disasters, but flood damage is not covered, which is an additional expense for homeowners. According to the New Jersey Department of Environmental Protection’s Scientific Report on Climate Change, “annual precipitation in New Jersey is expected to increase by 4% to 11% by 2050. The intensity and frequency of precipitation events is anticipated to increase due to climate change.” As the threat of climate change and its impacts continue, homeowners will bear the consequences. With rising damage costs due to natural disasters, insurers may raise premiums or drop coverage to cover costs.

California and Florida are two states with the highest rate of home insurance policy cancellations, 18% reported policy cancellations in California and 17% reported in Florida, according to Insurance.com. Many insurance companies have canceled their policies or pulled back coverage since both states are vulnerable to high-risk natural disasters like wildfires and hurricanes. “Big names like State Farm and Allstate have left the California market, while the list of companies that have pulled out of Florida includes Farmers and United Insurance Holdings,” according to Insurance.com. Potential homebuyers’ decisions may be impacted by the risk of damages due to climate change. It’s important to educate potential homebuyer clients about homeowners insurance to protect their assets. The National Association of Realtors® released a homeowners insurance consumer guide for Realtors® to educate clients on the essential need for home insurance.

Important Dates Ahead

New Jersey Realtors® Leadership Team and Executive Committee Meeting

New Jersey Realtors® Fire Regulation Webinar with Lou Kilmer, Bureau Chief, Bureau of Fire Code Enforcement, NJ Department of Community Affairs

New Jersey Realtors® Educational Foundation 2025 Scholarship Application Deadline

St. Patrick’s Day

FEATURE STORY

Strong Relationships Equal a Strong Reputation

Reputation is everything In the real estate industry, reputation is key to continued success for brokerages, agents, and the industry. As 2025 ushers in continual shifts in policy and legislative updates, now is the perfect time for brokerages to refocus on what truly matters: the client experience. 35% of home sellers consider an agent’s reputation and 21% consider an agent’s honesty and trustworthiness, according to the National Association of Realtors® Profile of Home Buyers and Sellers survey. At the heart of every positive client interaction is a strong team led by an empowering broker, setting the tone where both agents and clients succeed.

How do you strengthen that team? It starts with practicing empathy. Inspire agents to be empathetic toward clients since the transaction process can become overwhelming for potential buyers, first time or not. Gaining trust through empathy is important to the client experience and reputation of the agent and brokerage. Encourage agents to build relationships with the client and family to gain a better perspective on their situation and needs. “Building a relationship with the buyer and their family starts with understanding who they are, what goals they want to achieve, and where they are in the homebuying journey,” said Vice President of Sales at Stone Martin Builders Sarah Martin in a recent article for Realtor® Magazine. Clients should feel supported and heard without feeling pressured to make decisions. An agent’s role is to guide and aid throughout the process.

Agents must also be able to embrace both good and challenging feedback Client feedback is one of the most powerful tools to refine skills and processes. Brokerages can also benefit from client feedback to better

understand satisfaction levels and client needs. As a panelist from RISMedia’s Power Broker Forum, Tom Sumney, CIO and CMO of HomeSmart International for a Realtor® Magazine article said, “grab a consumer and interview them. Ask them what’s important to them. When agents hear directly from the consumer, it connects with them and helps them face any challenges they might be feeling.” With client feedback, agents and brokers can fine-tune the client experience to further foster relationships and increase satisfaction.

Be transparent In today’s climate, clients seek honesty. Set agents up for success by instructing them to lead with transparency in tough conversations. “People need counseling right now. They need real information and a trusted advisor,” said Craig Cheatham, President and CEO of The Realty Alliance in Colorado Springs, CO featured in a Realtor® Magazine article. Whether agents are having conversations about a client’s personal needs or finances, being transparent will ease clients to be more open and trusting.

Don’t forget to go the extra mile. It can be the little things that make the biggest difference. This could look like following up to maintain a relationship with clients post buying or selling journey, according to easyagentpro.com, a real estate marketing tools platform. While all clients deserve excellent service, paying attention to the unique needs of each client will elevate the experience for all involved, according to the National Association of Realtors®

At the core of every successful team is the broker—empowering agents, providing support, and ensuring a consistent positive reputation.

New Residential Listing Agreement Forms Now Available

New Jersey Realtors® recently updated and released a new Residential Listing Agreement and accompanying forms; Form 150: Residential Listing Agreement-Sale/Lease, Form 150A: Waiver of Broker Cooperation, and Addendum to Residential Listing Agreement Regarding Lockbox Authorization. All forms are in full compliance with New Jersey laws and regulations set by the New Jersey Real Estate Commission and in terms of the National Association of Realtors® Agreement. All forms provided by New Jersey Realtors® are a member benefit and are not mandatory to use. Login to zipForm to access the entire library of forms. Watch the listing agreement webinar recording for additional information.