Brokerage leadership: Weathering 5 unpredictable years
The decade began with an unprecedented pandemic and housing market whiplash. In this 2-part story, see how three leaders grew their businesses through it all.
Key points:
- Brokerage owner/founder Dava Davin and Clint and Shane Neal of the Neal & Neal Team share their approaches to leading (and growing) through adversity.
- Proactivity and communication were key in supporting agents — and attracting new ones — through the disruption of the pandemic.
- Scaling sensibly and helping buyers find creative ways to make their purchase work in a high-cost environment helped spur growth.
This two-part story explores the unique challenges of the pandemic and post-pandemic era through the eyes of real estate leaders who not only pushed through it, but experienced significant growth. Read part two here.
The past five years have tested even the most seasoned real estate leaders. The industry has seen Covid-19 shutdowns, a frenzied housing boom followed by an ongoing slowdown, rising mortgage rates, affordability challenges, and sweeping changes to compensation and buyer agreements.
Brokerages have had to adjust to market cycles, shifting agent expectations and rapid advances in technology.
Leaders of two real estate businesses — brokerage owner and founder Dava Davin, and Clint and Shane Neal of the Neal & Neal Team — recently spoke with Real Estate News about their experiences and what they've learned along the way.
Leading through the pandemic pause
In early 2020, both brokerages were preparing for growth when the world shut down.
Davin, founder of the independent Portside Real Estate Group in Portland, Maine, had just stepped away from personal production to focus solely on her brokerage. By March, she was drafting handbooks for agents in the absence of state guidance.
"Agents needed me, and we reacted quickly with resources and rules when no one else had answers," she said.
The effort not only stabilized her team but attracted agents from other firms looking for direction.
In San Antonio, Texas, the Neal brothers took a similar approach. "Communication was massive," Clint said. "Coming together in that virtual world and staying close to agents" was a big focus, as was "connecting with clients, seeing how they were doing," Shane added.
"We don't know what the world's going to do; we were just making sure everyone is okay."
Shifting into overdrive as the market boomed
By summer 2020, the market surged back with intensity. In Maine, strict early shutdown rules gave way to an influx of relocation buyers who saw the state as a "safe haven" with more space and a different pace of life.
"There were frenzies of 30 or 40 offers and hundreds of showings," Davin said.
Portside doubled its sales volume in five years, reaching over $1.2 billion annually, and grew to 210 agents.
Many of Maine's out-of-state relocation buyers and second-home seekers relied less on financing — a factor that would later buffer the region from rate volatility.
The Neal & Neal Team's systems also proved ready for scale. "Once the dust settled, everyone wants a house; everyone wants to sell," Shane said. "We were positioned perfectly for that."
At the same time, the Neals made a strategic choice not to chase expansion into other markets given San Antonio's steady population growth and economic diversity — a result of a military presence, new industries and an abundance of developable land.
"We realized, why are we trying to go out farther when the opportunity is at our doorstep?"
That focus allowed the team to grow to nearly 100 agents without stretching resources too thin.
Sticker shock sets in
The next challenge came as mortgage rates spiked in the second half of 2022 and affordability sank.
For Portside, Davin says creativity was key. "Is there a rate buydown we can get the seller to do? What can we do to put this together?"
She noted many younger buyers turned to parents for help with down payments, and agents had to help their clients adjust expectations to fit tighter budgets.
In San Antonio, Neal & Neal trained agents to guide clients through "sticker shock" and educate them around what "solutions and products are out there to accomplish their goals," Shane said, citing buydowns and new construction opportunities.
More changes ahead
The pandemic and a roller-coaster housing market defined the early part of the decade for real estate leaders — but other big changes were on the horizon.