Listing prices continue their upward trend over last year, but the good news for buyers is experts expect them to top out in the near-term. That’s according to the latest Weekly Data Report from realtor.com®, which shows the median listing price advanced by 16.6% over last year, now in its 31st consecutive week of double-digit yearly gains.
According to the report, while weekly asking price trends have yet to offer buyers much relief, other data are signaling that rising inventory is shifting the balance of the housing market. For instance, in June, the share of listings with price cuts nearly doubled year-over-year, and seasonally, markets typically see the median home listing price top out around this time of year, and this year is likely to be typical in that respect, realtor.com® reported.
Additional key findings from the week ended July 16:
What the data means:
“We’ve now seen two consecutive weeks of fewer homeowners deciding to sell. Fortunately for buyers, the dip got smaller, but it will still be an important indicator to watch closely. If seller participation loses significant momentum, the trend toward market balance could be thrown off,” said realtor.com® Chief Economist Danielle Hale. “Recent new listings data suggests that some prospective sellers may be growing wary as the run-up in mortgage rates price some buyers out of the market. Especially for first-time buyers looking for relative affordability, monthly starter home costs were $2,437 in June—that’s $561 higher than rents. And June data did show that fewer buyers and sellers made it to the closing table. Still, homeowners trying to decide if now is the time to list are still in a good position in many markets, as a decade of rising home prices gives them a substantial equity cushion and homes continue to move quickly.”
To view the full report click here.
Matt and Devin Ford, cousins and co-broker/owners of Weichert, Realtors® – Ford Brothers, were recently named as 2022 Franchise Rock Stars by Franchise Business Review, an independent market research firm.
Each year, Franchise Business Review’s researchers aim to identify those who set an exceptional example of achieving success within their franchise model. The Fords were selected from over 30,000 franchisees, representing more than 300 brands.
Those who made the list were nominated by their franchise brand’s leadership for demonstrating leadership, business acumen, financial and professional success, and community involvement. The eight nomination categories were Giving Back, Women, Millennials, Veterans, Family-Owned, “Freshmen,” Top-Performers, and Multi-Unit Owners; the Fords received recognition in the Multi-Unit Owners category.
“Matt and Devin are extremely deserving of this honor,” said Bill Scavone, president and chief operating officer of Weichert Real Estate Affiliates, Inc. “We are very proud of the impact they have made in our franchise system and throughout the communities they serve. They are certainly exceptional ambassadors for the Weichert brand. We are very grateful to have them as part of our family and wish them much continued success.”
The cousins are second-generation owners of the Kentucky-based brokerage, which operated independently for 40 years before affiliating with Weichert in 2013, the company noted. Since joining the Weichert franchise system, the Ford cousins have doubled the company’s number of offices and increased their gross commission income by 600%. Weichert, Realtors® – Ford Brothers currently ranks as one of the top 10 Weichert franchise companies in the United States, the company said.
The post Franchise Business Review Honors Weichert Affiliates as Franchise Rock Stars appeared first on RISMedia.
Brown Harris Stevens has announced the launch of 115 East 55, a 58-unit rental building in New York City. The complex will offer condominium-quality finishes and boutique amenities where Midtown meets the Upper East.
According to a release, the newly constructed,18-story building, was designed for Zeckendorf Development Services by SLCE Architects. The design is a tribute to Park Avenue pre-war charm that caters to the modern needs of today’s renter, the company said. Units range from one to four bedrooms and prices start at $5,000 per month. Joshua Young, executive vice president, managing director of sales and leasing at Brown Harris Stevens, is handling leasing and marketing.
“115 East 55 is finally bringing much needed new rental inventory to one of New York City’s most coveted neighborhoods,” said Young. “Residents have access to beautiful apartments with condo-quality finishes, a 5-star amenities package, and all within proximity to Central Park, Billionaire’s Row, and the best shopping and dining in the city.”
Most units at 115 East 55 have outdoor space in the form of Juliet balconies or terraces. Each apartment features Italian marble bathrooms, hardwood floors, custom designed kitchens with built-in islands, a wine fridge, and integrated Bosch refrigerator and Bosch stainless steel appliances. Upper floors include Gaggeneau ovens and side-by-side refrigerators. The building’s crown jewel are the four 4-bedroom 4-bathroom penthouses with views of Park Avenue, the release states.
Amenities include a fitness center, 24-hour attended lobby featuring a circular coffered ceiling and hand poured terrazzo floors, “secret” outdoor garden, conference room, meeting room, and intimate resident’s lounge.
The post Brown Harris Stevens Launches New NYC Luxury Rental Unit appeared first on RISMedia.
The real estate landscape continues to become more competitive, whether you’re an agent facing challenging market conditions or a broker/owner looking for unique perks to attract new agents. According to a recent National Association of REALTORS® survey, agents reported continued intense buyer competition and fewer clients overall compared to last year. Only one thing is certain: Standing out from the crowd isn’t easy, but it’s necessary for success.
So, how can you differentiate your brokerage, and yourself, from the competition? When a brokerage competes for the very best agents by enhancing their value proposition and investing, they also compete for dedicated clients, and in turn, create an enduring, evergreen business model. Simply put, if you want to attract more clients, train, motivate and lead your agents.
One way for brokerages to add value and retain quality agents comes via exceptional marketing and support. Agents often seek expert assistance to market their unique value to clients, so a strong brokerage marketing team, plus training and leadership, can make a huge impact. Although free marketing assets for social media, direct mail and even swag items can assist, a solid foundation of best practices and tools that capitalize on sphere of influence marketing is key. Tech-enabled sphere of influence (SOI) marketing made possible through a robust CRM is just the start. All marketing and tech offerings should be bolstered by an exceptional training department and first-rate curriculum. Teaching agents strategies for staying connected to clients through their SOI, and simply connecting the dots between marketing and tech to increase business, all create a comprehensive approach for REALTORS® to provide maximum value no matter the competition.
By providing training across a broad spectrum of marketing activities and tech, brokerages help agents use their extensive networks to prosper, build their brand and compete. When agents combine the power of these tools, clients looking for resourceful, skilled agents benefit, too. SOI marketing strategies connect agents to interested clients through any and all market conditions, making both the agent and brokerage a unique asset to consumers. Further, these benefits attract exceptional agents in the first place, creating a more competitive brokerage model that can withstand the inevitable fluctuations in any real estate market.
While a brokerage or agent can’t control the market itself, we can control our approach to the marketplace. A strong value proposition from agent and brokerage alike—using marketing, training and tech together—creates a business strategy that beats the competition time and time again.
For more information, visit www.vyllahome.com.
Chad Ruggles, head of Vylla Home and senior vice president, is a passionate leader with 25-plus years of management experience. He currently leads Vylla Home, a unique brokerage with more than 1,175 real estate agents across 37 states.
The post To Create an Enduring Brokerage, Invest in Agent Marketing, Training and Tech appeared first on RISMedia.
If you are looking to dramatically increase your sales revenue quickly over the next 90-plus days, you can achieve this with a written and totally focused action plan that you implement as a manager, executive or broker/owner. These three key strategies can help you drive and create listings, sales, revenue and increase your core service partners as well.
Implement these three key strategies immediately for your managers or sales associates to achieve amazing results quickly:
In order to increase revenue over the next 90 days, implement in-office training and group coaching sessions focused on: how to get appointments and convert leads into clients; how to effectively conduct and close a listing appointment for the win; how to hold open houses and convert leads; how to generate referrals from your sphere and how to effectively generate leads on social media. These and other impactful coaching and training sessions will help your agents start (or increase) their sales and lead generation efforts to increase the leads on their pipelines, creating more listings, sales and top-line revenue for all.
Remember, you are directly responsible for driving and increasing sales productivity in your region, office or company depending on your specific role. If you are leading sales managers, help them implement this plan immediately for optimum results. If you are leading a sales office full of agents, implement this plan immediately with each of your agents. Invite them all to the challenge and personally work with the 10 – 15 that you can coach into even greater success. You and your agents will love the results. Success is contagious!
Download Johnson’s Exclusive GoldMine Pipeline Strategy to get your agents closing more leads into listings, sales and ultimately income. This system can double their production, fast. Go to www.goldminepipeline.com for Johnson’s Free eBook and the Worksheet. These are just a few of Johnson’s proven and exclusive leadership and development strategies that produce amazing results quickly.
For more information about Johnson’s exclusive turnkey, broker, manager and team solutions to dramatically grow your revenue, contact Sherri Johnson at www.sherrijohnson.com/onetoone for coaching plans.
Sherri Johnson is CEO and founder of Sherri Johnson Coaching & Consulting. With 25 years of experience in real estate as a top agent, broker, and executive responsible for over 750 agents and over $1.7 billion in annual sales volume. Sherri offers her exclusive and proven methods through custom, one to one coaching and tailored consulting services. Sherri is a highly sought-after keynote speaker delivering high energy and real solutions audiences love. Sherri has been named a RISMedia Real Estate Newsmaker in 2020 and 2021 as an Industry Influencer and Thought Leader. She is the author of the Sherri Johnson Academy, an on-demand learning platform as well as the 90-Boot Camp. Sherri is a preferred coach, consultant and speaker for top 10 international brands and brokerages and can dramatically increase your company’s revenue and profits. Visit www.sherrijohnson.com for more information.
The post Increase Top-Line Revenue Fast With These 3 Key Strategies appeared first on RISMedia.
Creating a real estate team provides many opportunities for growth and diversity. Individual agents on the team can have specialized niches while still benefiting from the team structure and support. Team members can share referrals, enhancing their visibility and reputation in the market. A strong team can be a powerful force, creating more success and fulfillment for all its members.
Great leaders know that the way for their team to stay successful in a constantly changing market is to never stop learning and improving. Hiring a coach can help leaders stay encouraged and motivated, allowing them to reach higher financial and professional goals. They will then be able to use that training to help make their teams stronger and more profitable as well.
We all know that setting goals is critical to improvement. Having a thoughtful, clearly laid out plan helps you stay focused, motivated and on task. A coach can help you set goals that are SMART—specific, measurable, achievable, relevant and time-bound. This gives you direction, with measurable milestones, and keeps you accountable.
When you’re a coach, you will be able to identify any weak spots in your team and discover new strategies and tips on how to overcome them.
Support and accountability
Your coach should offer encouragement and support but also challenge you when warranted. An impartial observer can help identify your blind spots and offer techniques to overcome them. And knowing there is someone you are accountable to will keep you focused on your goals. A coach can shake you out of your comfort zone and encourage you to pursue new ways of thinking and doing.
The power of connection
It can be overwhelming to be the one responsible for all of the team’s decisions. Joining other industry professionals is a great way to connect, brainstorm on new ideas and be inspired.
Buffini & Company Team Coaching, for example, offers a monthly mastermind group—the 7 Figure Club—LIVE. This highly interactive broadcast gives leaders a one-of-a-kind opportunity to synergize and gain invaluable insights from the best team leaders in the business.
Facebook groups are another way to network with like-minded professionals. Buffini & Company has several exclusive groups where members connect, ask questions and share success stories and best practices.
Benefits of Buffini & Company team coaching
Working with a Team Coach will help you set a vision for your team and discover the tangible solutions you need to reach your goals. It will also support you by offering training to your team in the powerful method of working by referral so that each member can close more sales and make more money. Your coach will meet you where you are today and help you build your dream team so that you enjoy a better quality of life with more time off for family and friends.
Team leader conference
One of the highlights this year will be the Buffini & Company Team Leader Conference, to be held Tuesday, Sept. 13 and Wednesday, Sept. 14 in Phoenix, Arizona. The conference will feature an extraordinary speaker lineup of the very best leadership professionals in the industry. Sessions will focus on how to be an effective team leader and include a dynamic, timely coaching presentation with master motivator and industry legend, Brian Buffini, chairman and founder of Buffini & Company.
Sign up today and get ready to be inspired from these powerful leaders as they share strategies and techniques to help you take your team and your business to the next level. Click here for more information and to claim your seat.
The post How Coaching Can Help You Lead Your Team to Greater Success appeared first on RISMedia.
There’s no better time than right now to tap into one of the most valuable sources of lead generation: client appreciation events. Events take work, but are an important growth resource for any real estate professional. Designed to create engagement and buzz, leveraging your past clients to fuel your future growth is an easy way to build the community you want for your business.
Put client appreciation events to work for you
According to a recent study, 15% of repeat business comes from past clients, with another 19% through referrals, making investing in client appreciation events a clear path toward meaningful—and profitable—relationships to fuel your growth.
Client appreciation event ideas to consider
In an industry driven by personal connection, client appreciation events provide you with a chance to build relationships while growing awareness for your business and expertise. In simple terms, client appreciation events can mean increased leads and profits, so it pays off to have a bit of fun.
Adam Bauer is the senior vice president of marketing operations for HomeSmart.
The post Why Client Appreciation Events Need to Be on Your Lead-Gen Radar appeared first on RISMedia.
What would happen if homebuyers were required to pay their real estate agents directly? That question may likely be on many people’s minds as several lawsuits aimed at the real estate commission structure persist.
A recent study looked at the potential implications of indulging the proposed “decoupling” of agent compensation. It paints a bleak picture, asserting that large segments of the population—specifically minority, first-time, low- and middle-income buyers—would be significantly suppressed in the market in the scenario.
“Changing the current compensation structure could affect potential buyers’ ability to qualify for a mortgage and purchase a home,” said Ann Schnare, a Freddie Mac alum and lead of the report titled “Be Careful What You Ask For: The Economic Impact of Changing the Structure of Real Estate Agent Fees.”
Schnare co-wrote the study, which was commissioned by HomeServices of America, with Amy Cutts, chief economist at the National Association of Credit Management, and Vanessa Perry, a business professor at George Washington University.
The study and its assertions come as the real estate industry faces an existential crisis. Courtroom battles targeting the National Association of REALTORS® (NAR) and several prominent real estate companies across the U.S. have put the agent commission structure in danger of being dismantled.
The report highlights the arguments made by plaintiffs and their supporters—specifically in the Moehrl et al. v. The National Association of REALTORS® et al. lawsuit as an example—alleging that if buyers paid their agents directly, “they would be more likely to negotiate lower commissions on their end than what sellers currently agree to on the sell side.”
In the paper, Schnare and company argue the contrary, asserting that a buyer-paid commission structure would result in reduced homeownership opportunities for cash-constrained families and lower net proceeds for many sellers.
“Among other things, proponents of this approach have failed to consider an important benefit of the current compensation structure, namely, that it minimizes the amount of upfront cash that is required to buy a home,” the report read, adding that nearly nine out of every 10 homebuyers use a mortgage to finance the purchase of their primary residence.
With the help of an economic model depicting the financial impact of changing the current compensation structure, the report shows that first-time, low-income, middle-income and racial minority buyers would be the most affected by a shift in the commission structure.
“If the buyer ends up paying a 3% fee to their real estate agent, the amount of cash required at closing would rise by 42%,” the report reads. “While the percent change in cash requirements declines with increases in the buyer’s ability to negotiate a better rate, even a 1.5% commission—which has been used to illustrate the potential advantages of the so-called English model—would increase the cash required at closing by 19%.”
For example, the report shows that assets required to purchase a $250,000 home would increase from roughly $16,250 to $23,015 if buyers—specifically those using a mortgage to finance their purchase—were required to pay agent commissions.
The impact doesn’t rest exclusively with the buyers, however.
For sellers, the report suggests that adjusted sales prices would have to decline to keep the buyer’s cash requirements—and demand—the same. According to the study, price concessions could get as high as 29% to close a deal with the potential buyer—where they are paying the buyer’s agent a 3% commission—if the buyer were unable or unwilling to come up with additional cash.
On the lower end of the example—where the buyer pays a 1% agent fee—sellers would still have to make an 11% concession in the asking price for their home.
“At a minimum, these simple examples suggest that if a significant number of potential buyers are cash-constrained, changing the current compensation structure would inevitably lead to a reduction in market demand and leave many sellers and potential homeowners worse off than they were before,” the report states.
The result, the report adds, would be a drop in demand and the overall homeownership rate as many potential buyers with small cash savings would be unable to buy a home.
That would also drive property values down, which the report states would impact the ability of sellers to trade up to larger homes.
Many of the arguments made in the study align with the position that NAR has taken in recent months as several antitrust lawsuits opposing a number of its association’s longstanding commission and MLS policies have resurfaced in headlines.
“Our nation should be working to develop policies and proposals that increase access to the American Dream—not deter it,” says an NAR spokesperson. “We hope that, as this study suggests, policymakers will recognize that requiring homebuyers to pay their brokers directly would be a major setback for all those pursuing housing equity.”
Craig Cheatham, president and CEO of The Realty Alliance tells RISMedia that the system that plaintiffs proposed in cases like Moerhl and Burnett would disadvantage the very people that the industry has been working to assist on the path to homeownership.
“Our industry continues to be misunderstood by outsiders, most notably lately by regulators, policymakers, tech entrepreneurs and opportunist attorneys,” Cheatham says. “We have seen this ignorance cost those who did not do their homework countless times and extraordinary amounts of money as they acted on unfounded assumptions about how and why time-honored practices are in place. And, unfortunately, members of our industry have had to spend time and money to explain and defend solid practices.”
Despite arguments that the existing structure is allegedly anticompetitive, Cheatham believes there is a solid case that competition is alive and well in the industry.
“Real estate practice has evolved to its current state not through collusion or price fixing, but through decades of free market adaptations, all designed to tweak custom and practice to serve the consumer better and better while maintaining a sustainable business model to allow real estate professionals to continue to exist to meet the needs of buyers and sellers,” he says.
The post Commissioned Study Shows That ‘Decoupling’ Agent Commission Is a Bad Bet for Consumers appeared first on RISMedia.
Existing home sales continue to free-fall as federal interest rate hikes and long-simmering affordability and inventory concerns catch up to what has been a wild ride of a real estate market, with June seeing another precipitous drop of 14.2% year-over-year and 5.4% from the previous month, with 5.12 million units sold, according to the most recent data from the National Association of REALTORS® (NAR).
“Falling housing affordability continues to take a toll on potential homebuyers,” said NAR Chief Economist Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”
Total housing inventory registered at the end of June was 1,260,000 units, an increase of 9.6% from May and a 2.4% rise from the previous year (1.23 million). Unsold inventory sits at a three-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021.
Prices, which some thought would moderate much more quickly this year, continued to climb, up 13.4% year-over-year—marking 124 consecutive months of increases. The median home price was $416,000 in June.
Nearly every economist and housing expert has agreed that the rampant price appreciation and bidding wars that characterized the 2021 market are unsustainable, and will either fade or implode in 2022. The question—still not answered—is how bumpy the pullback will be.
Yun said that as mortgage rates hovered around 5.52% in June (up 0.29% from May), inflation will continue to weigh on the mortgage market.
“If consumer price inflation continues to rise, then mortgage rates will move higher,” Yun said. “Rates will stabilize only when signs of peak inflation appear. If inflation is contained, then mortgage rates may even decline somewhat.”
First-time homebuyers made up a slightly higher proportion of the market in June than in May at 30%. Those buyers accounted for 34% of sales in 2021, according to NAR data.
Despite the lower number of sales and increasing inventory, June set another new record for fewest average days on the market at 14, down from 16 in May.
“Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers,” Yun said.
In a potential sign of this selectively cooling demand, three extremely desirable metros with some of the hottest housing markets in the country saw 20% or more increases in the number of home price reductions. Those were Austin, Texas (24.7% more homes with price reductions); Phoenix, Arizona (22.2%); and Las Vegas, Nevada (20.1%).
Some experts and real estate professionals have projected that demand is resilient enough to offset some of the affordability concerns. Reuben Gonzalez, chief economist for Keller Williams, said that a slowdown is inevitable even though he agrees demand is likely to remain elevated.
“We view the rapid acceleration in home sales over the past two years, which was generated in part by the pandemic itself and in part by low interest rates, as a temporary surge,” he said in a statement. “It seems likely that we will return to a pace of home sales more consistent with pre-pandemic levels, but we also see long-term demographic trends which will continue to keep demand for homeownership growing over the next decade.”
The post Home Sales Dive Again; ‘Fuzzier’ Indications on Price, Demand appeared first on RISMedia.
The residential real estate market is experiencing rapid change, and with several unknowns on the horizon, it’s hard to predict which direction we’re headed in next.
At RISMedia’s upcoming CEO & Leadership Exchange, September 6 – 8 at the Mayflower Hotel in Washington, D.C., industry experts and savvy brokers will tackle many of the unknowns that stand to significantly impact the real estate landscape in the months ahead, including: the evolving listing portal landscape; and the fall-out from the midterm elections.
During the event’s opening General Session on Tuesday, September 6, Joe Rand, president of the Broker Public Portal and chief creative officer of Howard Hanna | Rand Realty, will lead a panel of experts to discuss the progression of portals toward full-service brokerage during the session, “The Evolution of the Listing Portals: Identifying and Confronting New Threats.” Rand will be joined by Bob Hale, Houston Association of REALTORS®; Steve Barnes, HomeSnap; Sara Bonert, Zillow; and Bryan Ellis, realtor.com to hash out which threats are real and where brokers and agents should be directing their concern.
The following day, Wednesday, September 7, RESPRO Executive Director and D.C. insider Ken Trepeta joins the CEO & Leadership Exchange to present, “How a Changing Political Landscape May Impact Your Business.” Trepeta will provide a candid breakdown of the regulatory and legislative issues that stand to impact residential real estate—for better or worse—as the midterm elections approach.
These are just two of the more than 25 presentations and panel discussions taking place during the two-and-a-half day CEO & Leadership Exchange, in which more than 115 brokerage and brand executives and industry leaders will participate. See the full agenda and access a limited number of remaining VIP tickets here.
The post From Politics to Portals: What Lies Ahead for Real Estate appeared first on RISMedia.
Leading Real Estate Companies of the World® (LeadingRE) has announced that 21 new members have joined its professional community since the start of 2022. Selected companies in the LeadingRE network are recognized for their expertise and knowledge of both local and global markets. All members are vetted for performance and commitment to quality customer experience, the company stated.
The firm now includes more than 550 members worldwide representing more than 136,000 agents in over 70 different countries, LeadingRE said. The newest member firms in LeadingRE’s network include property businesses from North America, Latin America and the Caribbean, Asia Pacific and Europe. The company also welcomes a new affiliate from Antigua and Barbuda for the first time.
The full list of new members includes:
Asia Pacific Region:
Latin America and the Caribbean:
‘‘We are thrilled to significantly expand our global network of real estate businesses this year, welcoming 21 new property companies from across the globe in H1 2022,” said Chris Dietz, executive vice president, global operations at LeadingRE. “We strongly believe those in the global real estate sector can learn valuable lessons from one another, no matter which corner of the world they are based. We have seen brokers and experts support fellow members in many ways, from knowledge and experience sharing to referrals and new business leads. We offer international members a platform of training, support and advice, as well as the relevant tools to help grow and evolve their business with the help of our extensive affiliate network. Our networking events draw a truly global audience, and our members consistently introduce clients across borders, which is why we’re so thrilled to have the opportunity to grow and work in existing and new international territories this year.”
For more information, visit www.leadingre.com.
The post Leading Real Estate Companies of the World® Announces New Members appeared first on RISMedia.
Revive, a presale home renovation solution for sellers and cash-backed offer programs for buyers, has announced the enhancement of its brand, becoming Revive Real Estate, and changes its top-level domain to revive.realestate.
“By officially becoming Revive Real Estate, we boost the clarity of our brand and can amplify it with a hot top-level web domain extension,” said Michael Alladawi, Revive Real Estate CEO and founder. “Very few Proptech firms, if any, can say that their domain is only their name. It gives our business instant recognition and elevates our marketing,” he added.
Created by the National Association of REALTORS® and launched in 2018 alongside .realtor for members of NAR, the .realestate domain is free of restrictions from NAR affiliation. It allows firms like Revive Real Estate to creatively market its brand by leveraging “real estate” as a descriptive and universally understood term, they said.
“Securing .realestate is a fantastic fit for Revive to better connect with brokers and their agents, as well as home sellers, buyers and others who are part of the presale renovation ecosystem,” said Colleen Doyle, vice president, RIN and Strategic Initiatives at NAR. “This top-level domain helps firms like Revive own their segment in our industry, setting them apart from their competition,” she added.
Revive is one of nine Proptech firms in the 2022 NAR US REACH program, operated by Second Century Ventures, the strategic investment arm of the National Association of REALTORS® and the most active global real estate technology fund, according to a release.
Revive offers presale renovation services for homeowners to help maximize their profits from their home sales. When homeowners renovate their homes before selling, they maximize their return on their most significant asset—their home. Revive research shows that sellers leave 15% to 20% of potential profits on the table if they sell their homes “as is.”
Alladawi notes that presale renovation is a burgeoning new industry, offering a new tool that more agents and sellers need to know about.
“Revive sellers average $186,000 more than the costs of the renovation, and substantially more in higher-cost markets,” Alladawi explained. “The more we spread the word—and our new enhanced brand will help—the more wealth we can help create for homeowners when they sell their homes,” he added.
According to Revive research, a little more than 8% of all homes in the U.S. as of February 2022 were worth at least $1 million. If just one in 10 sellers of homes worth $1 million or more chose a presale renovation, sellers would net tens of billions of dollars in additional sale proceeds.
“The potential of additional annual wealth creation is staggering,” said Revive Real Estate cofounder Dalip Jaggi, noting, “Every year, some 5 million to 6 million existing-home sales occur. If just 5% of these homes chose a presale renovation, sellers could increase by $56 billion.”
The post Revive Enhances Its Brand, Changes Its Top-Level Domain Destination to revive.realestate appeared first on RISMedia.
NAR PULSE—Take advantage of a branding kit exclusive for brokers! We’ll provide a custom .realtor website specific to your brand—complete with your logo and preferred colors, plus a button linking to your listings. As your agents secure their free .realtor web address, they will be instantly set up with a completely customized online brand. Get all details!
Build a stronger community with RTRN
Community building strengthens your agents’ connections and helps them win more clients. Encourage your agents to check this month’s offers from Right Tools, Right Now, to receive guidance about how to take a leadership role in building a stronger community. Learn more!
Hear how climate risk affects real estate
Tune in to RPR®’s podcast to hear Cal Inman from ClimateCheck® discuss climate risk in real estate and how REALTORS® can help their clients prepare for current and long-term challenges.
Time is more important than ever—especially if you are trying to buy a home. Historically low inventory and high demand have resulted in intense competition for buyers in markets across the country. In addition to sheer competition, buyers also still need to think about financing, pre-qualification and closing costs to put them in the best shape for having an offer accepted.
As real estate professionals, this is not news to you. The closing process is one aspect of homebuying that is most successful when time is on your side. The last two years have offered new considerations for agents aiming to get their clients in their homes as quickly as possible and close on time—or early.
Let’s dive into how you can improve closing efficiency and your client’s chances of scoring a home with proper preparation and resources.
The homebuying process can take anywhere from four weeks to six months. A 2021 report found that it takes 51 days on average to close on a home. A couple extra weeks or even days could be the difference between your client scoring a home or the deal falling through in today’s competitive market.
It’s important that your client is educated and prepared for every step to ensure a smooth process before and during closing. Taking the time to educate your client on key terms and ratios, upfront costs, unique market trends and fair housing rules, can be a huge help in ensuring nothing comes as a surprise when it’s time to close.
There are resources available to help your clients—especially first-time homebuyers—boost their homebuying knowledge, such as whitepapers, webinars, and podcasts. The Beginner to Buyer podcast is one example. Every episode offers conversations with real buyers and expert guests about each step of the process, from mortgage application to closing.
Buyers should have their finances in order before they begin their home search for a quick closing process once the offer has been accepted. Coming prepared with a mortgage pre-qualification, funds for a down payment and cash available for closing costs will help ensure they don’t lose out on the home at the final hour.
One of the main challenges for homebuyers is the upfront cash required for down payments and closing costs. These costs can amount to up to 3% or more of the final purchase price, which may come as a surprise to some buyers. Work closely with your network of advisors, loan officers and mortgage experts to help your client determine how much they can afford, what financing options are best and where assistance is available to help manage these upfront cash demands.
There are also loan options that require as little as 3% down for eligible homebuyers and many location-based and lender-backed homebuyer grant programs available to help with upfront costs, including Chase’s own Homebuyer Grant which can offer eligible customers up to $5,500. Down payment assistance programs like these can help to level the playing field.
Take advantage of lender-backed resources available to help your clients get into their homes on time. For example, Chase’s Closing Guarantee commits to closing customers on their new homes in as soon as 21 days or gives them $5,000 cash. The program offers buyers peace of mind knowing that they are guaranteed to close on their new home without delay or receive compensation that can be put towards additional costs.
It’s key to educate your client on the process, make sure they’re well-prepared for the financial commitment of a home purchase and help them take advantage of resources available to move through the homebuying process quickly. Agents who can help their clients find and close on a home on time will be rewarded with satisfied clients who are more likely to refer them to others.
Sean Grzebin is head of consumer originations for Chase Home.
The post Time Is Money: Three Considerations to Help You—and Your Clients—Move Quickly Through the Homebuying Process appeared first on RISMedia.
Randel Aleman Jr.
President and CEO
HomeSmart Encore – Krkic & Aleman Real Estate Group
Las Vegas, Nevada
Region served: Greater Las Vegas/Henderson
Years in real estate: 12
Number of offices: 3
Number of agents: 225
How to attract top talent: Retention and consistency are key. Keeping current agents happy while staying consistent is critical when it comes to a firm’s ability to recruit new agents. Full transparency with new recruits is also important, as you never want to overpromise and then underdeliver.
Best time management tip: Wake up early and finish your task list every day. Key to staying profitable: Keep your overhead low while allocating funds that provide profitability in return.
Can’t-live-without tech tool: HomeSmart’s RealSmart Agent platform/mobile app, which allows agents to manage transactions while on the go. It gives our team everything they need, from marketing materials to a personal website and CRM.
What factors have contributed to your region’s growth over the past decade?
Las Vegas has transitioned from being primarily a tourist city to a thriving sports town. In fact, the success of both the Las Vegas Golden Knights and Raiders has opened doors to adding additional leagues such as the NBA and MLB. In the past 10 years, Las Vegas has grown almost 20% in population. More growth has provided job opportunities created by large businesses moving to our tax-friendly state.
What makes HomeSmart Encore so successful when it comes to winning listings and getting offers accepted?
We set a goal each year and follow our business plan as best we can. Our real estate coaches keep us on track with our tasks, making sure we’re prospecting each day for at least three hours and engaging with our past clients and sphere of influence. When it comes to getting offers accepted, keeping an offer as clean as possible helps, as well as building a good rapport with the listing agent.
What are the two most important factors that led to your affiliation with HomeSmart?
The success that Matt Widdows, HomeSmart’s CEO, created in Phoenix is what ultimately excited my dad, Randel W. Aleman, to bring the brand to Las Vegas. HomeSmart gives REALTORS® the opportunity to keep the most money in their pocket from each transaction, allowing them to reinvest in their business. Since HomeSmart has grown substantially to where it stands today with 25,000-plus agents nationwide, our agents benefit from familiar and excellent national branding.
How has your HomeSmart affiliation helped you better support your agent team?
Affiliating with HomeSmart has made it easier to save money on technology and reinvest that money back into our team. HomeSmart’s technology tools are what keep our business moving forward. Their national presence and growth have been astronomical, and since affiliating with HomeSmart, our referral network and referral business have grown.
Tell us about HomeSmart+ Omni, the networking group created within your office.
HomeSmart+ Omni is a network that a small group of agents created as part of the brand’s new revenue-sharing program. The Omni network will provide industry knowledge and tips related to navigating the real estate market, generating leads, winning listings in a competitive market and more. Our goal is to grow the network nationwide.
For more information, visit www.homesmart.com.
Higher mortgage rates. Low housing inventory. Layoffs. Recession predictions. Some people read these increasingly common keywords and assume that this is a bad time to be a real estate agent.
But I believe if you adopt the right mindset and strategy, this could be one of the best times to be a real estate agent.
For an inspiring example of entrepreneurs who thrived during economic uncertainty, consider the beginning of Hewlett-Packard. With only $538 to invest and a garage for a workspace in 1938, Bill Hewlett and Dave Packard invented the “HP Model 200A” audio oscillator. Their ingenuity and resourcefulness paid off later that year when the Walt Disney Company purchased eight oscillators to test its new sound system.
For a more recent example specific to real estate, consider how eXp World Holdings Founder, Chairman and CEO Glenn Sanford saw an opportunity during the 2008 housing crash to transform the real estate industry. While other companies closed, he pivoted and launched a cloud-based real estate company with a flexible operating model. Because eXp Realty was built to thrive in any market, we are providing the entire real estate industry a chance to level up with more access to training and coaching from top agents.
Here are three positive thinking prompts I see for opportunities that exist in this current market:
For more information, visit https://exprealty.com/properties/.
The post 3 Reasons Why This Is the Best Market for Real Estate Agents appeared first on RISMedia.
In today’s overheated market many buyers are waiving home inspections to get their offer considered at all. But does that mean they should skip the inspection altogether? Even after the sale, a home inspection is the best way for your clients to learn about their new home.
Whether it’s part of the transaction process or takes place after closing, a home inspection is in the buyer’s best interest and is key to their peace of mind.
Pillar To Post Home Inspectors is committed to ensuring confident home ownership. With our newest technology-led features, your clients will experience The Ultimate Home Inspection. Visit pillartopost.com to learn more.
New home starts fell sharply again, according to the latest data from the Census Bureau and the Department of Housing and Urban Development (HUD), continuing a downward spiral through most of this year as builders pull back in the face of rising interest rates and broad economic uncertainty.
With 1.56 million overall starts in June, the country saw a 2% decrease month-over-month, down 6.3% year-over-year. Builder permits also shrank from last month, falling a nominal 0.6%, but up 1.4% from a year ago.
Even as most markets have continued to see strong price appreciation, and home sales unexpectedly spiked early in the summer, the consistent decreases in home building and the decidedly negative outlook of builders portends a much more difficult real estate market ahead.
Jerry Konter, chair of the National Association of Homebuilders (NAHB), pointed out that single-family starts took a particularly hard tumble in June, down 8.1% from the previous month, with single-family permits falling an equivalent 8%.
“Single-family starts are retreating on higher construction costs and interest rates,” he said in a statement. “Builders are reporting weakening traffic as housing affordability declines.”
In a dramatic reversal, however, multi-family starts were up significantly in June—10.3% year-over-year after plunging in May. Multi-family permits were also up year-over-year, driven mostly by larger (five units or more) buildings.
Analysts remain hopeful that the housing market can, along with the broader economy, come down slowly without a crash. But longer-term issues that preceded the pandemic—affordability and underbuilding, among other things—could make that scenario more difficult.
“Price growth will slow significantly this year, but a housing deficit relative to demographic need will persist through this ongoing cyclical downturn,” said NAHB Chief Economist Robert Dietz in a statement.
The pace of multi-family permitting and starts could be the result of investors hoping to dip into the fast-growing rental market. It could also be indicative of a nationwide push to reform zoning codes and allow more dense housing particularly in the suburbs—something the Biden administration has advocated for—as more land opens up to that type of building.
At the same time, mortgage rate increases will fundamentally affect who can afford to buy homes, and whether it is feasible for builders to construct them.
“While the multi-family market remains strong on solid rental housing demand, the softening of single-family construction data should send a strong signal to the Federal Reserve that tighter financial conditions are producing a housing downturn,” said NAHB Chief Economist Robert Dietz in a statement.
Annual U.S. single-family rent growth remained at a record high in May 2022, posting a 13.9% increase from May 2021, according to the latest Single-Family Rent Index (SFRI) from CoreLogic© released this week.
This growth matched April’s increase, representing the first time that price growth did not accelerate from the previous month since January 2021, CoreLogic reported. Sustained high rent prices are partially due to a robust labor market, with the national unemployment rate at 3.6% in May, down by 2.2 percentage points on an annual basis and the lowest recorded since before the start of the (coronavirus) COVID-19 pandemic, according to the report.
To gain a detailed view of single-family rental prices, CoreLogic examined four tiers of rental prices. National single-family rent growth across the four tiers, and the year-over-year changes, were as follows:
Examining the report data:
CoreLogic notes that differences in rent growth by property type emerged after COVID-19 took hold, as renters sought standalone properties in lower-density areas. This trend drove an uptick in rent growth for detached rentals in 2021, while the gains for attached rentals were more moderate. However, as rental inventory remains slim, the gap between attached and detached rental growth started to close last fall. In May 2022, attached rental property prices grew by 13.4% year over year, compared to the 13.6% increase for detached homes. Nevertheless, detached rental prices have grown at a significantly higher rate over the past two years (24.4%) than attached rental prices (17.6%).
Additionally, since rising interest rates are sidelining more prospective homebuyers, landlords have a larger pool of potential tenants and thus more leverage to raise prices. The year-over-year U.S. single-family rent price growth was more than twice the May 2021 increase and more than eight times higher than the May 2020 growth.
“Increases in mortgage rates and high home prices can be headwinds to the for-sale housing market but may be continually pushing up single-family rents,” said Molly Boesel, principal economist at CoreLogic. “While the annual increase in the SFRI for May matched April’s growth rate, the gain remains at a record-high level. Furthermore, the month-over-month growth rate for rents in May was well above that month’s 19-year average.”
The post Annual Single-Family Rent Growth Holds Steady in May but Remains at Record High appeared first on RISMedia.
Of the 50 most populous metros in America, Orlando is the most vacant, followed closely by Miami and Tampa, Florida and Birmingham, Alabama, according to new data from Clever Real Estate.
The company analyzed data from the U.S. Census Bureau, the U.S. Department of Housing and Urban Development, Zillow, and the U.S. Bureau of Economic Analysis to rank the 50 most populous metros by the overall number of vacant housing units. The metros were ranked by the overall number of vacant housing units among homeowners and renters and then compared their homeowner vacancy rates (HVR) and rental vacancy rates (RVR) to get a more nuanced picture of what housing options are available to residents in the studied cities, according to the report.
Additional key findings:
While Orlando is the most vacant city, Minneapolis, Minnesota, Portland, Oregon and San Jose, California are the least vacant, according to the report.
To view the full report, visit: The Most Vacant Cities in America: 2022 Data.