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Each year brings changes Realtors simply must know to be successful. And 2014 is no different. In fact, this year your brain will likely be challenged with more changes than average. Let's get right to it - here are five essential must-knows for 2014: 1. Mind your Qs and Ms. Forget about minding those Ps and Qs your mom told you about. This year is all about Qs and Ms as in QM, the qualified mortgage. A QM has new guidelines, and borrowers who get them are presumed to be able to repay loans. If lenders make QM loans, they have more protections against future lawsuits if the loans go bad. What's this mean? I think it means we'll see more private mortgage funds coming into the market for consumers. It's competition for Chase, Wells Fargo and the other top banks. And these private funds are self-insured, so they don't have to use Fannie Mae and Freddie Mac. 2. Watch a sellers' market transform into a buyers' market. Conditions are ripe for a shift because if we look at the QMs more closely, it means Fannie Mae and Freddie Mac have increased their costs to lenders for guaranteed loans. More regulations mean higher costs. That challenges buyers. So, yes, we're in a sellers' market now, but by the end of spring and early summer things will convert to a buyers' market. So sellers will have to step up to the plate with really good staging and awesome curb appeal. 3. Keep an eye on investors. Another factor in the shift to a buyers' market involves investors. Last year, investors sucked up the market and made huge margins - often buying properties at well-below value. And up until now, they haven't spent much money to rehab those properties. But now that the market is shifting, and they're putting up money to get those houses ready for sale. I suspect we'll see thousands of properties around the country coming back on the market via investors. 4. Play your timing card like a pro. Whether you're a buyers' or sellers' agent, stay ahead of the curve with rising interest rates, because the longer either group waits, the more it's going to cost them. I predict we'll see interest rates rise to 5.7 percent by the fourth quarter of 2014. Remember, one percent equals 10 percent on a 30-year-mortgage. So when you run into sellers who are holding out for a higher bid, consider counseling them to take three percent loss (for example) on the sale so they can get into their favorite new home for less with a lower interest rate. And of course, for buyers, you'll want to always preach a sense of urgency - something they'll understand easily once you go over the math with them. 5. Understand the full impact of the internet. Here's the deal plain and simple: More consumers are finding the actual home they want to buy online by themselves. In 2003, NAR reports this happened 11% of the time. Today that number is up to 44%. This is a reality you need to accept and prepare for with tempting (read, professional online photography and videography) online listings. However, while the internet does give consumers freedom to search for homes, it doesn't always give all the facts about those homes. This is something Realtors need to point out to their buyers. Be the specialist you are and explain to buyers who are wondering why you didn't show them a particular online listing that perhaps the bathroom needed a rehab, the heating didn't work and the sprinkler system was busted. Let me hear from you. What are you looking forward to most in 2014? What specific plans and goals do you have? Are you facing any hurdles you're not sure how to handle? What are they? What can you do today to start overcoming those hurdles? Bubba Mills is chief operating officer and managing partner of Corcoran Consulting Inc. (800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential broker or agent's existing practice.
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