Building homebuyer trust in a high interest rate era

Transcript

Kevin Greene:

And even though we have more data at our fingertips thanwe did just five years ago, much less 20 years ago, you need someone to helpyou navigate through that because things have changed so much that you're like,"How do I interpret all of this data?" And having that propertyprofessional be able to help and hold their hand through that is a key part andyou want a trusted partner. So trust is huge.

Maiclaire Bolton Smith:

Welcome to Beyond the Buildings by Cotality. I am yourhost, Maiclaire Bolton-Smith, and I'm just as curious as you are abouteverything that happens in the property industry. On this podcast, we satisfyour collective curiosity, explore questions from every angle, and look beyondthe obvious. With every conversation, we illuminate what is possible. Recently,Cotality conducted a survey across five countries, the US, Canada, the UK,Australia, and New Zealand. We asked recent and future home buyers exactly howthey felt about the home buying and mortgage process overall. What we found waseye-opening. Borrowers told us that although they can get a digitalpre-approval in minutes, the timeline to actually closing on a home remainslong, stressful, and full of anxiety, including silent periods. But ourresearch also uncovered a powerful truth. In a sea of data, digital tools, andmarket uncertainty, the person buyers trust most is the real estate agent.

Agents are the ones on the front lines navigating thosesilent periods, translating complex information into actionable advice, andultimately keeping the deal together. So today we're joined by Cotality'sgeneral manager of Real Estate Solutions, Kevin Greene, to help us break downwhat this cross-market research means from the agent's perspective on the ground.Kevin, welcome to Beyond the Buildings.

Kevin Greene:

Thanks for having me, Maiclaire. It's great to be here.

Allie Barefoot:

Before we get too far in this episode, here's a friendlyreminder about how to see what's coming up next in the property market. To makeit easy, we curate the latest insight and analysis for you online. Find ususing the handle @Cotality on all of our social media channels. But now let'sget back to the show.

Maiclaire Bolton Smith:

Well, this is really exciting because you've never beenhere before, Kevin, so I'm really excited to talk to you. So let's just startwith the emotional side of the transaction. Our survey showed that borrowersfeel lost and stressed during the silent periods of the mortgage process. So asa former agent yourself, you've been on the front lines of that anxiety. Howdoes uncertainty during the lending process impact the agent's relationshipwith their client and their ability to keep this deal together?

Kevin Greene:

So it's very interesting when you go through that processand think about any type of drama or big impact in your life. And when you havenothing happening and all of the doubts that happen in your head, what's goingon and where am I supposed to be and did I fill it out right or where that is?And it's all that uncertainty happens when you have no communication. And sothat's the key pieces of what a real estate agent needs to be doing as they'reholding their hand through that transaction is keeping that communication up.Okay, you're going to hear this on this date, five days later you're going tohear this, two days later you're going to have that. The communication is justhuge because the uncertainty happens from the lack of communication and thelack of understanding of how the process works.

Maiclaire Bolton Smith:

Interesting. Okay, well let's talk about the guidance thatthe agents provide. Our research found a magic number of an interest rate of4.6% that would be what would be needed to bring many buyers back to themarket. But what happens when the client finds their dream home and the rateisn't perfect? I mean, I feel like I'm in this category myself since I recentlybought a home a couple of years ago when the rates were really high, still veryhigh. So how do agents use the trust they've built to help clients navigate theyou love the house, you don't like the rate conversation? Well,

Kevin Greene:

That's the big thing. People choose their real estateagent based upon the relationship typically that they have with them. Becauseeven though if it's your first transaction or your seventh transaction, it'snot something that you make every day and it's typically the largesttransaction you're making at that time in your life.

And so you want someone to hold your hand through thattransaction to be able to do that. And so it is how does the real estate agentprepare them whether or not it's a life-changing event? Is there a death? Isthere a divorce? Is there a job change that they have to move to be able to dothat? How can I help you get through that? Or if it's I'm just wanting todownsize or I want the nice house in that dream house that all of a sudden hasa for sale sign on it and I want it, how do I do that? But I'm not seeing themagic numbers. And I talk to my real estate agents like you marry the house,you take care of the rate for the time being. You can always refinance two tothree years later or whenever that is, but if you really want that house, youmarry that house and you could be able to get that house.

And that's the real estate agent's job to help them getinto the home that they're really truly wanting to get to.

Allie Barefoot:

A buyer who is waiting and a buyer who is stuck can lookthe same from across the room, but they behave nothing alike. One of them is waitingon a specific interest rate number to land. Cotality surveyed home buyersacross the US, Canada, the UK, Australia, and New Zealand and came up with thatmagic number and a short list of things buyers are willing to give up to maketheir calculations work. Read our report to find out what buyers want right nowand what lenders, brokers, and real estate professionals can do before a maybetalks itself into a no. The link is in the show notes.

Maiclaire Bolton Smith:

Okay. Well, the survey respondent said that real estateagents were the professionals they trusted most. So in an age where buyers havemore data at their fingertips than ever before, what is the unique value thatthe agents provide and how do they act as a market expert interpreting thecomplex data like the hazard reports that we offer and building permits in away that a digital tool just can't?

Kevin Greene:

So I mean the big thing on the real estate side is 85% ofconsumers when they purchase a home typically say they will use that realestate agent again.

Maiclaire Bolton Smith:

Interesting.

Kevin Greene:

They looked for somebody that they trusted to be able todo that, whether it's their best friend, their mother, brother, sister, aunt,uncle, they're looking for someone to hold their hand through that transactionand that's key. And so the data is one thing, but how you interpret the data isanother. Great, I see a building permit, but what did that mean? Was there afire? Did they add on? Was there something that happened? A lot of times that'swhat the real estate agent is a market expert and understands what theneighborhood and how to interpret that data, whether it's hazard data,inspection data, all of that. Those real estate professionals have seen thatmultiple times and sometimes you get a bad report and they're like, "No,this actually means something completely different. Yeah, you might want tocheck this out and this might be a reason to pause and think about somethingelse." And so that is what creates that loyalty that they have.

And because of that, they're also going to be looking atusing a lender that the real estate agent is providing because that real estateagent is giving that timeline that we discussed at the beginning, from lookingat a house to making an offer to getting an inspection and an appraisal andeventually getting to close. They're looking for that handholding experiencefrom the boots on the ground, which is their real estate

Maiclaire Bolton Smith:

Agent. Okay. This is so great, Kevin. And thisconversation today is going to be short and sweet, but I can't skip thequestion that I ask everyone. So I have two for you today. Pull out yourcrystal ball. If a real estate agent had to choose one message for theirmarketing in 2026, should it be, I'll find your home the fastest or I'll getyou the most reliable closing?

Kevin Greene:

Most reliable closing.

Maiclaire Bolton Smith:

Interesting.

Kevin Greene:

I think right now with the way the market is, making surecash offers are great because there is no contingent. I actually have a friendof mine that he has two mortgages right now and he's moving into his new houseand unfortunately he's had two closings, not of his own fault, fall through andhe's like, "What am I doing? What's going on?" And Kevin, do you knowanything? I'm like, "You talk to your real estate agent." But beingable to have that consistent closing, making sure that you know that thathome's going to close, that you have the money in the bank, the budget thatyou've done is going to be number one.

Maiclaire Bolton Smith:

I am not surprised to hear you say that because it'sclearly just not about being faster. People want the reliability.

Allie Barefoot:

It's that time again. Cotality just dropped new numbersabout what's happening in the housing market. Here's what you need to know.There's a hierarchy defining what home buyers will sacrifice. Cotality's newreport based on a survey of home buyers in five countries shows a clear order.Lifestyle spending goes first with 69% of buyers cutting it or planning to,then the loan shrinks next. As 65% weigh a smaller mortgage, the list goes on,but people will trade the trips, the dinners out, and the bigger kitchen longbefore they trade the address. That order is invaluable insight to anyonepaying attention. It shows what buyers are really protecting and where awell-time lending option actually lands. Find out what buyers actually do tomake sure they can afford the mortgage. Go to Cotality.com/insights, and that'sa sip. See you next time.

Maiclaire Bolton Smith:

Our survey really showed that buyers really care moreabout clarity, honesty, and trust in a partner, which is why they do rely somuch on their real estate agents. So now in 2026, has that trust become abigger competitive advantage for an agent than any technology they use?

Kevin Greene:

Absolutely. It's 2026. There's data all around us. AndI've bought and sold seven homes in my lifetime and every single one I've useda real estate agent because it is the largest transaction that you're doing. Itis in a new area. You don't know any HOA, any zoning laws, any of that stuff.

Maiclaire Bolton Smith:

And

Kevin Greene:

Even though we have more data at our fingertips than wedid just five years ago, much less 20 years ago, you need someone to help younavigate through that because things have changed so much that you got, how doI interpret all of this data? And having that property professional be able tohelp and hold their hand through that is a key part and you want a trusted partner.So trust is huge.

Maiclaire Bolton Smith:

Well, ultimately it comes down to that certainty ofclosing. Kevin, this has been so great. Thank you so much for joining me todayon Beyond the Buildings by Cotality.

Kevin Greene:

Thanks for having me, May Claire.

Maiclaire Bolton Smith:

And thank you for listening. I hope you've enjoyed ourlatest episode. Please remember to leave us a review and let us know yourthoughts and subscribe wherever you get your podcast to be notified when newepisodes are released. And thanks to the team for helping bring this podcast tolife. Producer Jesse Devinans, editor and sound engineer, Romia Roman, ourfacts guru, Allie Barefoot, and social media duo, Sarah Buck, Emma Kyla Brooks.Tune in next time for another conversation that illuminates the ideas that willdefine the future.

Allie Barefoot:

You still there? Well, thanks for sticking around. Are youcurious to know a little bit more about our guest today? Kevin Greene as asenior vice president and the general manager of real estate solutions atCotality. In his role, he oversees the data, technology and workflow solutionsthat serve more than 1.2 million real estate professionals. Greene brings aproven track record of success in business development, strategic planning,product management, and international expansion.

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