Buyers want agents to run point, not AI

Buyers want agents to lead

AI is already changing our business, and a lot of agents worry it will eventually replace them. James and I don't buy it, and our first story shows why.

A new HomeServices of America survey asked buyers what they want during the homebuying process. One number jumped out: 74% prefer a human-led or in-person experience. Only 26% want a mostly digital process.

Buyers want technology in a supporting role, not running the show. They want agents to take point. AI can make us faster and more efficient, but buyers aren't asking it to replace us.

The agents who win in the AI era won't be the ones who resist it. They'll be the ones who use it to get even better at the human side of the job.

- David

What homebuyers want from the buying process

Buying a home is supposed to be exciting, but for most buyers the transaction process isn’t that at all. According to HomeServices of America's latest survey, 70% described the process as a huge hassle. The biggest source of frustration was poor coordination between agents, lenders, title companies, and insurers.

Here are the key takeaways from the report:

• Coordination is the biggest pain point. 46% cited uncoordinated service providers as their top hassle, ahead of searching online (26%), touring homes (17%), and agent communication (8%).

• Buyers expect their agent to run point. 69% expected their agent to coordinate mortgage, title, and insurance, and 55% hired their agent before choosing a lender.

• Referrals are highly valued. 76% received a provider recommendation from their agent, and 95% of those buyers found it helpful.

• Most buyers want an integrated experience. 89% liked the idea of bundled services, and 79% would prefer an agent-coordinated system next time.

• Some buyers are skeptical. 21% would rather shop on their own, mostly for better rates. 37% of that group see bundling as a conflict of interest.

• Technology should support agents, not replace them. 74% prefer a human-led or in-person experience, and only 26% want a mostly digital process.

My take

Here's the interesting part: buyers aren't frustrated with their agents. Only 8% cited agent communication as their biggest hassle. The trouble starts at the handoffs, when the lender, title company, and insurer enter the picture, and nobody is connecting the dots. That's an opening for agents. The referral is where the job starts, but staying involved through closing is what buyers remember. Earning that role takes trust, though. Buyers want a quarterback, not a salesperson steering them toward "my guy." Agents who offer vetted options and encourage clients to shop around will earn that trust and become someone buyers want to work with again.

Mortgage rates top 7%, pushing borrowers toward riskier loans

The average rate on a 30-year fixed mortgage climbed to 7.12% last week, its highest level since 2024. The jump cut overall mortgage application volume by 1.5% and pushed a growing number of borrowers toward riskier adjustable-rate loans, according to the MBA's latest update. 

Here's what CNBC reports:

• Fixed rates crossed the 7% mark. The 30-year fixed rate rose to 7.12% from 6.97%. Points edged up to 0.73 from 0.72 for loans with a 20% down payment.

• Borrowers are turning to ARMs. The ARM share of applications jumped to 9.8% from 8.4%, as 5/1 ARM rates ran more than a point below fixed rates.

• ARM demand has tripled since the pandemic. ARMs made up barely 3% of applications when rates were at record lows.

• Refinancing hit its lowest level since February 2025. Refi applications fell 3% for the week and 62% from a year ago.

• Homebuyer demand is weakening. Purchase applications dropped 1% for the week and 11% year over year as the fall market gets underway.

My take

The headline isn't just that rates are back above 7%; it's how buyers are responding. Nearly 10% of applications are now for ARMs, more than triple the share during the pandemic. That tells you buyers haven't disappeared; they're searching for ways to make the math work. An ARM that runs more than a full point below a fixed rate can be a smart move, but it comes with a bet: that the borrower will sell, refinance, or be able to absorb a higher payment when the rate resets. So the most valuable thing you can do for clients right now is make sure they know exactly what they're signing up for: how long they realistically plan to stay in the home, when their rate can change, and what their monthly payment could look like if it resets higher.

States with the highest foreclosure rates

In August 2026, one in every 3,569 housing units (HUs) had a foreclosure filing in the U.S., according to the latest stats from ATTOM.

Here’s the breakdown of the key numbers:

• Total filings: 40,277 properties with default notices, scheduled auctions, or bank repossessions

• Monthly change: Up 1% from July 2026

• Year-over-year change: Up 13% from August 2025

• Completed foreclosures: 5,794 – up 42% from a year ago

Here are the states with the highest foreclosure rates:

1. South Carolina: 1/1,547 HUs

2. Nevada: 1/1,920 HUs

3. Florida: 1/2,397 HUs

4. Texas: 1/2,445 HUs

5. Maryland: 1/2,530 HUs

6. Indiana: 1/2,535 HUs

7. Delaware: 1/2,796 HUs

8. Illinois: 1/2,880 HUs

9. Utah: 1/2,920 HUs

10. Alabama: 1/3,016 HUs

My take

Foreclosures are still below pre-pandemic levels, but they're climbing, and completed foreclosures jumped 42% from a year ago. That's huge for one group in particular: investors. As we noted last week, more than half of single-family investors plan to buy at least one property in the next 12 months. High mortgage rates may sideline typical buyers, but investors can stomach the financing costs, and distressed properties are right up their alley. If you're an agent looking to get deals done in 2027, this is a clientele base you need to be courting.

Schematics

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Foundation Plans

Advice from David to win the day

Our buddy Krys Benyamein always says, “If your business only grows when the market does, that’s not a business. That’s a hobby.” He’s exactly right! Obviously, you can’t control everything around you, but you must take proactive steps to stack the deck in your favor. Today, we’d like to offer you some tips on how you can do that in the second installment of our Prep for 2027 series.

1. Figure out what’s really working –  Before you set new goals, take a quick inventory of what actually drove your business this year. Go through each closing and jot down where that client came from — past clients, open houses, Instagram, referrals, whatever it was. You’ll probably notice a few sources doing the heavy lifting. That’s your signal to double down. Knowing where your wins are coming from helps you focus on what really moves the needle, instead of spreading yourself thin.

2. Refresh your online presence – You’d be surprised how many agents still have headshots from five years ago floating around the internet. Take time this week to make sure your photo, bio, and tone match across every platform where clients might find you — Google, Zillow, LinkedIn, your website, all of it. Think of it as a digital first impression. When everything looks current and cohesive, people (and algorithms) read you as professional, credible, and ready for business..

3. Jump-start the new year with a banger of a client event – If you want momentum in January, you have to build it now. Start planning something small but memorable — a casual mixer, coffee meet-up, or appreciation brunch — to reconnect with past clients and friends of your business. These events don’t have to be fancy; they just have to be genuine. The relationships you rekindle in Q4 are often the first deals you’ll close in Q1.

The bottom line: don’t wait until 2027 to get started. In fact, there are only 99 days left till the new year begins. Start to prep now to hit the ground running in January.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” — Warren Buffett

Don’t let events or other people set your agenda. Stay ruthlessly focused on your goals — your time is limited, and you only get one life. Make the most of it. Have a wonderful week.

We’ll see you back here on Friday!

- David