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West + Main Homes to Oversee Sales for Amacon’s Condo Project in Downtown Denver

 
 

Denver’s independently owned and operated boutique brokerage founded by Colorado natives, Stacie Staub and Madeline Linder of West + Main Homes will oversee the sales program for what will be Denver’s largest condominium development since 2009.

Read the full post on Mile High CRE.

Nestled at the crossroads of 18th and Glenarm, Canadian-based real estate development and construction firm Amacon’s monumental condos will reshape Denver’s skyline. Showcasing two towering structures, one will stand at 38 stories and the other at 32 stories.

“We approach this endeavor with great confidence and genuine excitement as we bring our expertise to the U.S., fully committed to creating a lasting and transformative impact in the heart of the Mile-High City,” said Stephanie Babineau, vice president of marketing and sales at Amacon.

Amacon’s commitment to placemaking will transform 18th & Glenarm into a people-centered hub, fostering connections, interactions, and a vibrant sense of community. This innovative 461-unit development will reshape the area, elevating it into a new, dynamic neighborhood with enhanced walkability and a rich mix of residential, commercial, and retail spaces.

“Amacon’s decision to entrust a local boutique brokerage over a larger chain underscores their commitment to conducting business in Denver,” said Stacie Staub, CEO of West + Main Homes. “We are honored to be part of transformative housing developments like this that facilitate our city’s unique and organic growth. We eagerly anticipate how this development will pave the way for Upper Downtown Denver’s future success.”

Davis Partnership Architects is the architect of record for the project.

In alignment with Denver’s urban renaissance, Amacon is addressing the rising interest in mixed-use development, combining residential, commercial, and retail spaces. This trend stimulates economic growth, job creation, increasing property values, and positively impacting local communities. Amacon’s extensive research into the needs of Denver’s demographic underscores its commitment to creating thoughtful and inclusive amenity spaces, appealing to a diverse buyer base.

The development of the two towers at 18th & Glenarm has been under construction since the spring of 2022 with completion scheduled for 2025.

West+ Main is an independently owned and operated boutique real estate brokerage specializing in residential and commercial properties in Colorado, Oklahoma, Minnesota, North Carolina, and Oregon. Currently West+ Main has approximately 500 real estate agents, 320 of these agents are in its Denver offices. West + Main’s sales team has sold over 1.4 billion in real estate and over 2,500 sales transactions earning them the 2023 Power 500 Broker Award and Top Workplaces as ranked by the Denver Post.

To stay updated on project news and how to be the first to purchase a condo, please visit amacon.com/denver.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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A Wrap Up of DMAR's Economic Summit

 
 

Each year, the Denver Metro Association of Realtors hosts their Economic Summit, featuring key economic experts who share their outlook on local, state and national financial & economic trends.

Topics covered include the health of the housing market, real estate trends, interest rates, housing inventory, local and national economic forecasts and more.

This year, the keynote speaker was Economist Elliot Eisenberg, known as “The Bowtie Economist”. Eisenberg was quoted by the Denver Post, saying “My guess is that a recession happens in the middle of 2023. It won’t be that deep and it won’t be that long.”

Even if the economy doesn’t technically enter a recession, growth will be close to zero, he said, speaking primarily to real estate agents who are already feeling the cold winds of a chilling economy.

West + Main Homes continues to be a sponsor + supporter of the Economic Summit, as we believe that it is up to Real Estate agents to convey the facts of the shifting market to consumers.

 
 

Many West + Main Homes agents were in attendance at the sold out Economic Summit and shared their key takeaways.

“If there’s one thing that we have learned from all past recessions it’s how to get out of them,” said Realtor Emily Johnson. “So if we end up in one, we’ll have a soft landing and we’ll recover quickly.”

With a recession comes a rate reduction, so at this point we would expect to see rates in the 5’s by this summer, said Jackie Weinhold.

Despite uncertainty in the market, many Realtors are cautiously optimistic about what is to come in 2023.

“Pain and change happen. People need to move,” said W+M Managing Broker Malisa Miller Eakins, who also serves on the Board of Directors at DMAR. “Elliot has given us lots of key indicators to keep an eye on as the market shifts, as well as always keeping an eye on changing interest rates of course.” Eakins is confident that she will be able to continue to best serve her clients through the shift, especially with the additional knowledge gained from industry experts like Elliot Eisenberg.

 
 

KJ Pogorzelski was also among the West + Main agents who attended the event. “The housing market settling into a good pace is so important in the long run. The last two years have been the opposite of normal, and this is a great sign for housing pricing and appreciation in the future.”

Another sign of the abnormal market we’ve experienced the past for years is that the the 10-year trend shows 50K people moving to CO every year, said Bianca Barnes. “In 2020 8,000 more people moved out than moved in, which isn’t usually the case in Colorado. In 2022 we had 28k move in., and the 2023 is forecast for 22k.” As the market returns to a state of “normal”, West + Main agents are excited to come up with innovative ways to serve their clients.

Thank you to DMAR for putting on a wonderful event, we’re already looking forward to next year!



REALTOR Safety is Important - Here are some resources to check out

 
 

According to the National Association of Realtors, the goal of the REALTOR® Safety Program is to reduce the number of safety incidents that occur in the industry, so every REALTOR® comes home safely to his or her family every night.

“We will accomplish this goal together with our members by improving the Safety Culture in the industry: Talk about safety; create a safety plan and follow it; and encourage your fellow REALTORS® to do the same.” - National Association of Realtors

A class we recently hosted, [Safety is Non-Negotiable}, got us thinking about all the ways our agents can look out for their own safety.

In the call, instructor Jay Thompson covered a ton of topics on the call and shared the Beverly Carter story, which is traumatic, so please know some of the details are shared in the call. Jay covered physical and professional safety topics from self-defense, situational awareness, wearable technology and more. We’ve included Jay’s resources and safety products as well.

ADDITIONAL RESOURCES
More education about protecting yourself as a real estate professional.

SAFETY PRODUCTS

We’ve also compiled a few other resources to help you stay safe out there.

Here are some of NAR’s top recommended action items for REALTORS®

  1. Plan Your Safety Strategy

  2. Tips and Best Practices

  3. Training Videos

  4. Personal Protection Resources

  5. Take the REALTOR® Safety Pledge

Additionally, NAR provides a robust list of resources for personal protection.

As a REALTOR®, it’s important you have a personal safety protocol in place that you use every day with every client, like when meeting new clients, showing properties or sharing information online. There are a variety of tools you can add to your personal safety protocol, such as the smartphone apps and safety products listed here.

Note: The safety applications and products listed are for informational purposes only. They are not endorsed by nor have they been vetted by the National Association of REALTORS®, and their inclusion on this website does not constitute a recommendation by NAR and should not be inferred as suggesting a preference over other applications or products currently available in the market. The information provided is a selection of safety resources designed to help you determine what tools may best fit into your personal and professional life.

Find the full list of safety products here.

On essential piece of a Realtor’s job that can be dangerous is holding an open house.

Here are 12 tips from the Texas Real Estate Research Center to conduct a safe open house.

Have the seller remove all valuables​ from the home before the showing. An open house provides potent​​ial burglars a way to map out a home and identify valuables to target. Belongings like video game consoles, jewelry, and important documents should be removed from the property and kept somewhere safe.

  1. ​Have the seller remove all valuables​ from the home before the showing. An open house provides potent​​ial burglars a way to map out a home and identify valuables to target. Belongings like video game consoles, jewelry, and important documents should be removed from the property and kept somewhere safe.

  2. Bring a colleague or friend to the open house. It is always good practice to have another set of eyes and ears to alert you to potential threats.

  3. Check in with someone even if you are not alone at the open house. Notify someone off-property, like a colleague, friend, or relative, that you will be calling them every hour, on the hour. If you don't call, they are to call you. You should also give them the address and turn on location sharing if possible.

  4. Create an escape plan. When you first enter a house, check all rooms to determine several escape routes. Unlock deadbolts and open a couple of windows to facilitate a faster escape. If the backyard is fenced, be sure you can escape from there as well.

  5. Check your cell signal before the open house. Make sure your phone is charged and has an adequate signal. Program emergency numbers on speed dial.

  6. Walk behind the prospect. Do not lead the client around the home; instead, direct them around the house from behind. The prospect should always be in your “10 and 2" range of vision.

  7. Avoid small rooms. Stay close to the exits in attics, basements, and other small rooms. Do not let yourself be cornered.

  8. Have a sign-in procedure to identify prospects. Have all open house visitors sign in with their full name, address, phone number, email, and vehicle information. When scheduling a one-on-one showing, be sure to photograph the prospect's identification card and send the picture to someone in your office.

  9. Keep your keys and phone on your person. Your handbag should be locked in the trunk of your vehicle.

  10. Keep an eye out for suspicious activity. If anything is out of the ordinary—like a man wearing a long coat on a hot day, or someone asking about when the sellers are coming home—do not be afraid to cut the showing short. However, the best course of action is to stay calm and not show fear. Confidence is key, and always keep your head up. For added protection, ask neighbors to keep an eye out for suspicious activity.

  11. Make sure everyone is out of the home before locking up. Do not assume the home is empty after the open house. Check every room to make sure no one has stayed in the home. Make sure all windows and doors are locked.

  12. Trust your gut. If something feels wrong, it very well may be. You should remain alert and aware. If you need to cut the open house short or alert the authorities, do not be afraid to do so. Remain professional, and get out quickly if you need to. 

Another important part of Realtor safety is protecting your mental health. Check out this article on The Close for tips on how to deal with toxic clients.

As noted earlier, whether you’re a new agent or you’ve been in the business for decades, it’s easy to get complacent, and incorporating preventative safety practices can sometimes seem like a hassle that eats up your valuable time.

Having well-practiced safety routines in place can help you to see warning signs and avoid risk. NAR’s September webinars will help you handle the risks that real estate agents face in the course of their work.

It’s an interactive conversation where you can hear from other professionals and their experiences. You’ll come away with some key takeaways like how to spot danger and how to navigate it once it finds you.

Avoiding REALTOR® Danger Zones
Date: September 15, 2021, 1 to 2 p.m. Central Time
Register

Conference Year-Round + REALTOR® Safety Discussion: Avoiding REALTOR® Danger Zones
Date: September 16, 2021, 1 to 2 p.m. Central Time
Register

What other safety tips do you like to keep in mind? Let us know.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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West + Main Agent Will Serve on NAR Housing Opportunities Committee

 
 

An Oklahoma City Realtor will help determine how money is spent to solve housing issues in OKC and around the nation.

Jessica Thompson, Realtor at West and Main Homes and Oklahoma City Metro Association of Realtors (OKCMAR) member, will serve as the Vice-Chair for the 2023 National Association of Realtors Housing Opportunities Committee.

The committee reviews hundreds of grant requests each year from cities and realty groups hoping to research, educate about or solve housing problems within their
communities. Topics include affordable housing for the elderly, housing shortages and homelessness.

Thompson said she hopes to advocate for housing affordability in Oklahoma City and at the National level.


“I look forward to being a part of solutions for cities across the country, and also learning from these creative minds and bringing those ideas back to Oklahoma.”

About Jessica:

I am a 5th gen Okie and have resided in Oklahoma City’s urban core for more than 10 years. My husband, Anthony and I, are currently raising our two children and dog in the same neighborhood in which my great-great grandmother once lived and I am proud to be an integral part of my neighborhood's renaissance. I began my real estate career in 2012, working with Green Home Builder, Tapestry Custom Homes, who specializes in universal design features. Being the well-rounded individual that I am, I have used my construction knowledge and historic home sales experience to renovate and restore my historic 1925 bungalow.

My practical knowledge and familiarity with old and new home construction empowers my clients to navigate the varying expectations that come with homeownership. Being a dynamic Realtor with a can-do attitude make me a desirable and influential person to work with. I am inspired to get to know my clients as my ability to meet them where they are at in life enables me to find them the right place to call home. I have a knack for helping people enrich the areas that they are in by acknowledging how they can be part of that community or take advantage of what that community has to offer. 

My accolades include the National Trade Association's Realtor Magazine "30 under 30" in 2017. I was recognized by the Neighborhood Alliance of Central Oklahoma as the "Good Neighbor of the Year" in 2018. I’ve been featured as Top Producer's 2019 "Rising Star." Throughout the years, I have been able to contribute to public education of real estate through radio interviews, various magazine and newspaper articles and have been a featured speaker at multiple events.

I have served on the Board for the non-profit 501c3, Positively Paseo, a community housing development organization whose work has been revitalizing urban neighborhoods that have experienced disinvestment, by rehabilitating historic homes, building homes on infill land, and creating community investment through home ownership. I collaborated with the City of OKC’s Office of Sustainability, Neighborhood Alliance of Central Oklahoma, University of Oklahoma College of Architecture’s Division of Regional and City Planning, to create a Youth Walkability Program called “NeighborWalks” to educate youth on the importance of walkability in communities. Through community endeavors, I found a passion for government affairs and policy. I have served on the Oklahoma City Metro Association of Realtors Government Affairs Committee since 2018, most recently serving in the capacity as Vice-Chair. I also serves as one of the Board of Directors for the Oklahoma City Metro Association of Realtors. I have served on the committee of the Association’s Young Professionals Network, as well as the Oklahoma Association of Realtor’s Young Professional’s Network. I currently serve on the Housing Opportunity Committee for the National Association of Realtors and was considered for Presidential Recognition for work done in her community in 2019. 

Follow Jessica on Instagram for day to day updates

About NAR

America's largest trade association, representing 1.5 million members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries.

MISSION

To empower REALTORS® as they preserve, protect and advance the right to real property for all.

VISION

Our vision is to be a trusted ally, guiding our members and those they serve through the ever-evolving real estate landscape.
Learn more at nar.realtor

Fannie Mae Adopts Appraisal Standard for Square Footage

Starting April 1, mortgage-giant Fannie Mae has implemented new mandatory standards for appraisers specifically around the measuring of square footage, with the hope that they become more widely adopted and make the often complex and subjective process less confusing while combatting long-running issues with racial bias.

In a webinar hosted by industry trade magazine Valuation Review, two experienced appraisers were joined by Fannie Mae senior director of collateral policy Lyle Radke in laying out what the new standards are (know as “ANSI”)—what they aren’t, and how they are likely to affect the home buying and selling process going forward.

“The first six months is going to be a learning curve,” said Hamp Thomas, an appraiser for Carolina Appraisers, who helped pioneer the new standards.

After decades of having different appraisers in every jurisdiction and from every company essentially having their own ways of deciding what the livable square footage of a home is, the hope is that Fannie Mae’s one single method will smooth out the process of running comps for real estate agents, avoid some of the pitfalls with lenders and appraisals and better automate and digitize their model.

“We aim to jump into the fray here and provide some leadership,” Radke said. “We have spent a good amount of time researching the various potential standards available and as result of our research we felt that the ANSI square footage standard was the best available option.”

These specific standards have also been adopted by the National Association of Home Builders (NAHB), have existing continuing education courses available and are relatively simple at 16 total pages, according to Radke.

Though they only apply to single-family homes and only encompass the single data point of square footage, Radke said the goal is to remove subjectivity from the process at least in part as a response to racial inequity in appraisals—with both data and the experiences of homeowners and REALTORS® showing people of color receive lower appraisals.

“It has created a lot of noise and controversy,” Radke said. “To the degree that we can migrate our opinion into more of a standardized or factual approach that helps us defend ourselves from any accusations of exercising latitude in an unprofessional way.”

The Biden Administration recently announced a five-step plan to combat racial bias in appraisals. Additionally, the Appraiser Institute has more recently acknowledged the need to address unconscious bias after calling the idea “absurd” and denying the existence of racial biases in appraisals in early 2020.

The new universal standards are also meant to prevent unnecessary conflicts and disagreements with housing appraisals. Though likely many governments or appraisers will continue to use other opaque standards, having at least one measurement that is known and mostly quantitative can only help, Thomas said.

“The stuff has not matched for all this time,” he said. “Now that we have ANSI we’re starting to look at it a little closer…the comparables don’t match with ANSI? Well they didn’t match before.”

“If you have at least one as a known, then your whole math equation is better,” said Richard Hager, President and Chief of Appraiser for American Home Appraisals. “It’s not perfect, but it’s better.”

ANSI also leaves room for an appraiser to opt out in special circumstances where a home just can’t fit its square footage into the standards, according to Radke, and also allows appraisers to provide a “narrative” explanation for why they couldn’t, or areas where they had to deviate from the standards.

Thomas said having some kind of concrete standard for something as essential and universal as square footage has been a long time coming.

“Somebody had to have the chutzpah, if you will, to take that first step, and that’s what Fannie Mae did,” he said.


What To Keep In Your Car for Showings

The Ultimate Real Estate Agent Car Kit

As a real estate professional, you know that you have to be prepared for anything that a day could throw at you. You’ll be showing homes, making appointments with clients, and doing things that can take up a lot of time. That means you won’t always have time to stop and grab something from home before heading out. Here is the ultimate Real Estate agent car kit that will save you time and ensure you don’t forget anything important.

A good pair of extra shoes

  You’ll be walking a lot during showings, and the weather can change on a dime. Generally, having comfortable shoes will make the walk from house to house much more manageable. But, having an extra pair of shoes in your car can also save you from a miserable afternoon with wet socks.

A change of clothes

Whatever your profession is, it’s a great idea to have a change of clothes in your car. No matter what happens, whether it’s a runaway lunch or a muddy backyard showing, you can show up to your next meeting fresh and clean. 

Paper towels, hygiene products, and toilet paper

Whether you need to wipe up muddy footprints or replace an empty roll in one of your property’s bathrooms, having at least a roll or two of paper towels and toilet paper in your car can save you and your clients both embarrassment and time. Also, regarding the hygiene products, your clients will appreciate you having an extra pad or tampon in an emergency.

Also, pro tip: make sure the water is on before letting anyone use the bathroom at a showing.

A notebook

This is where you write down notes about each house you visit, so you remember everything you learned. It also helps if you make notes on any follow-up questions you may have for the seller. 

Snacks

Let’s face it. We’ve all forgotten to eat lunch or breakfast on a busy day. Having snacks in your car can really save you from a hangry afternoon full of meetings.

Windex, a broom, and a Magic Eraser

Never be surprised or disappointed by a spotty mirror again! Having Windex (or your preferred cleaner) in your car can help you improve a potential buyer’s first impression of your property. Having a collapsible broom in the back of your vehicle can help you clean up a front porch quickly.

The Magic Eraser is my personal favorite life “hack”– you wouldn’t believe how helpful a magic eraser can be if you have it at your disposal every day. Scuff marks on the baseboards? No more. Fingerprints on all the water fixtures? Nuh-uh! Believe me; it’s worth it.

Hand sanitizer and hand cream

Hand sanitizer is essential in this day and age, and you do not want to run out while working in a busy office environment. Personally, I hate the feeling of cracked, dry hands. When using hand sanitizer often, your skin tends to dry out. Keep a small tube of hand cream in your glove compartment to soothe those paws between showings.

Tools

You don’t need to keep a mini-Home Depot in your backseat, but having a few essential tools can help you when crap hits the fan. I suggest having a hammer or a mallet (never struggle with a yard sign again), a multi-tool (I prefer Leatherman products), and some zip ties in your car to handle any situation that may come up. 

Toys and coloring materials

If you’ve ever been to a showing with a client and their bored kid, you know how important it is to have something to occupy them. Buy yourself some quiet time with your buyer and have kid-friendly activities ready if and when you need them.

Pro Tip: Opt for coloring pencils instead of crayons or markers. Especially if you’re showing properties with white couches.

Gloves, boots, and an umbrella

I’ve lived all over the country, and one thing is for sure: no matter what the weather person says on the radio in the morning, you have to be prepared for anything. Having a pair of gloves can come in handy if you need to remove a dead rat (true story) or giant bug from a property’s yard. Basically, I suggest always having disposable gloves or gardening gloves on hand (get it?). 

Boots may be necessary for some properties with extensive outdoor areas or on a lot. Having a pair of mud or rain boots in your car is just good sense! Also, I don’t think I have to explain the importance of an umbrella. You get it.

A flashlight and light bulbs

A flashlight can come in handy for showings. However, it’s most helpful if a lighting fixture blows and you need to change it before your client shows up to view the property! Keep some extra light bulbs in your car and never be in the dark again. 

Business cards and blank paperwork

It’s wise to keep some extra copies of any paperwork in your car. Spills happen, you know? Extra business cards are always a good idea, just if you come across someone at a soccer game or lunch who might benefit from your expertise!

An extra USB charger

This item isn’t only for you to keep up with your real estate business without worrying about a low battery. An extra charger can show that you go the extra mile for your clients if anyone needs a little extra juice at your open house.

Dog treats

You never know when you might need to make friends with a neighborhood canine. Keeping some dog treats in your car can help you make a good impression on buyers who bring their four-legged pal to the showing.

Win Your Next Listing Appointment

“Always be prepared” is the Boy Scouts’ motto, but it could arguably be the real estate industry’s motto. Make sure you have these fifteen items at your next listing appointment to ensure that the contract gets signed at the end. If you want more content like this, sign up for The Good Stuff, Virtuance’s weekly email newsletter filled with real estate marketing ideas.


Homebuyer sentiment hits record low

Only 24% of consumers think now is a good time to buy a home — the lowest reading ever recorded in a monthly survey conducted by Fannie Mae since 2010

High home prices, rising mortgage rates and economic uncertainty means only 24 percent of consumers think it’s a good time to buy a home — the lowest reading ever recorded in a monthly survey conducted by Fannie Mae since 2010.

Fannie Mae’s latest National Housing Survey, conducted in March, also found 73 percent of Americans think the economy is on the wrong track, and that a survey-high 25 percent of consumers expect their financial situations to get worse over the next 12 months.

Those and other survey findings prompted Fannie Mae Deputy Chief Economist Mark Palim to warn that if consumer pessimism persists, the impacts could ripple through housing markets and dent sales more severely than previously forecast. In a March 10 forecast, Fannie Mae economists predicted that home sales will dip by 4.1 percent this year, to 6.6 million, with projected 12.3 percent growth in new home sales outweighed by an expected 6.1 percent drop in sales of existing homes.

Flagging consumer sentiment, together with the run-up in mortgage rates since the end of 2021, “will likely diminish mortgage demand from move-up buyers – and fewer move-up buyers mean fewer available entry-level homes, adding to the rising-rate challenges for potential first-time homebuyers,” Palim said in a statement. “If consumer pessimism toward homebuying conditions continues and the recent mortgage rate increases are sustained, then we expect to see an even greater cooling of the housing market than previously forecast.”

Fannie Mae’s Home Purchase Sentiment Index (HPSI), which is based on six survey questions, decreased by 2.1 points in March, to 73.2. Although the index was lower at the outset of the pandemic, it’s down 8.5 points compared to the same time last year.

The decrease in the HPSI was attributed to net decreases in consumer sentiment about buying conditions, job loss concerns, home price outlook, and mortgage rate outlook. Consumer sentiment improved in just two areas tracked by the index: selling conditions and change in household income.

Fannie Mae’s monthly telephone interviews of 1,000 consumers found that the percentage of Americans who think it’s a good time to buy a home fell to an all-time low of 24 percent in March. With 73 percent saying it’s a bad time to buy, the net share of those who say it is a good time to buy decreased 11 percentage points from February.

While market conditions are seen as challenging for buyers, that’s a good thing for those looking to sell, survey respondents said, with 74 percent saying it’s a good time to sell. With the percentage who say it’s a bad time to sell decreasing to 21 percent, the net share of those who say it is a good time to sell increased 3 percentage points from February.

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3 Ways Remote Work is Changing Real Estate Forever + How Agents Can Help Their Clients Adapt

There’s no doubt that remote work is here to stay: 91% of people who are working at least some of their hours remotely hope their ability to work at home continues. And, a recent report from Ladders predicts that 25% of all high-paying professional jobs will be remote by the end of this year.

A lack of commute time, the flexibility to balance work and personal obligations, and improved well-being are some of the top-cited reasons driving this change. But it’s not just where and how people work that is changing; there are also lasting impacts on where people move and how they go about buying and selling a home.

When people aren’t tethered to an office, location isn’t an issue, and they’re free to buy homes wherever they want. In fact, about 32% of buyers in an Opendoor survey said that the pandemic influenced where they’ll choose to live, from big cities to the suburbs. And, with more people working from home, there’s been a shift in the home features that are most desirable as well. The Home Design Trends Survey from the American Institute of Architects found that more people are looking for multiple spaces in their home for remote work and virtual meetings. Suddenly, bonus rooms and flex spaces are at the top of buyers’ lists, even more so than gourmet kitchens or updated bathrooms.

Agents can help their clients not only navigate these changes, but get a leg up in the process. Here are three ways to help home sellers adapt to this new way of working and living.

Provide your sellers with options.

The traditional way of selling a home doesn’t always suit a homeowner’s unique needs. For example, they might be working from home with kids and pets underfoot, and the last thing they want to manage is keeping their house looking spick-and-span—not to mention, having to constantly leave the home for showings with prospective buyers. With the traditional real estate model, home sellers may host dozens of people in and out of their home, and oftentimes that can bleed into the work week, disrupting their meetings and daily routine. If the seller hires a cleaner, the average cost for a 2,000 square foot home is $150-$250—let’s say they’re having it cleaned 2-3 times per week for showings, that adds up quickly!

Another common scenario is that the seller needs a flexible move-out date after the home closes, to give them more time to move into their next home. Sellers are realizing that there are more options available to help them reach their end goal, such as iBuyers. In fact, research has shown that 71% of sellers are likely to consider selling their home to an iBuyer. Agents can partner with companies like Opendoor to present their clients with choices and help guide them to the best decision to meet their unique needs. Anything a listing agent can do to bring sellers more offers benefits everyone involved.

Leverage digital-first tools and services

The pandemic has accelerated the shift from offline to online solutions and has shown home sellers a world of new choices when it comes time to selling and buying a home. A full 75% of home buyers report that they would be likely to consider buying a home through a company that empowers them to control more of the process with digital tools.

Although working from home is often touted for its flexibility, there’s nothing more flexible than touring a home from the comfort of the couch. Virtual live, video and 3D tour options help buyers quickly check out homes that are listed, and decide which homes they want to tour in person. These tools put less pressure on sellers, too, by weeding out browser buyers from high-intent buyers. Additionally, there is a growing list of tools to digitize more aspects of the transaction, from mortgage tools to e-closing services, that agents can reach for when advising clients.

Be prepared for quick transactions since the market is so hot

With record-low inventory and high demand among buyers, homes are flying off the market at a record pace. And for the two-thirds of buyers who are also selling their home, the process can be slow, stressful and uncertain. Contingent deals can be a headache for everyone involved—they add time and costs that both sides of a transaction may not be able to afford. Agents can help buyers remove contingencies by working with a company like Opendoor that will make a cash offer on their current home, so the buyer can then shop for their next home with more certainty and confidence. Many times, the speed, convenience, and certainty these solutions provide may better suit a client’s specific needs.

Just like employers have found that there’s no longer a one-size fits all approach to where and how people work, agents and clients are finding that there’s no longer a one-size-fits all model of buying and selling a home. As the way we work, live and play continues to evolve, agents can help their clients explore more options for moving onto their next chapter.

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5 Tips for Increasing Your Income as a Solo Agent

So you did a great job this year, but you think you could do more. You've read the books. And most entrepreneurial reading materials will give you advice, but mostly vague tips that apply to everybody -- instead of your individual business needs. What can a solo agent do to increase their income next year?

Here are five tips for solo agents to increase their income:

1. Trim the Fat

This is a very obvious way to increase the output of your business—but what is not very obvious is what needs to be trimmed. At the top of the list of things to cut are typically things you are paying for that don't return their investment. What about what you are NOT paying for? Make a list of tasks that you do on a daily or weekly basis, then write a dollar amount for what you estimate that generates you. If time is money, you should also cut things that are not contributing to increasing your income.

2. Outsource Some Tasks

One of the best ways to trim the fat is by outsourcing some of the tasks that take too much time, you don't like doing, or you are not an expert in. Some agents will hire transaction coordinators or personal assistants. Some agents will hire a local marketer to write all their content. We would recommend also looking into some services that can automate these tasks for you.

3. Have Systems in Place

You can sign up for all the tools you can afford, but they don't mean anything unless you are actually using them. This applies primarily to CRMs, but can pertain to almost anything. For example, if you outsource your social media posts, you should know what to do when somebody comments on a post or sends a direct message. How do you utilize that service to generate more leads that turn into real estate transactions?

4. Stay in Touch

Most notably, all successful agents that have been in the industry for 10+ years will tell you that keeping in touch with your contact database is crucial to having a business that will perpetually run itself. By leveraging email marketing, social media marketing, or even picking up a phone—you are building relationships. Those relationships that you build today are the checks you will be cashing tomorrow.

5. Work on Increasing Your Average Commission

To double your income, you don't necessarily need to double how many homes you close. You can focus more on optimizing your processes and the end result. By following the steps in this article, you can save time. To increase money, you can also put an emphasis on increasing your comissions. This can be by selling higher priced homes or increasing your comission.

To view the original article, visit the Zurple blog.

Other articles of interest:
5 Weaknesses that Make Real Estate Agents STRONG
Tips for Working Harder and Smarter Your First Year in Real Estate

What Does Restarting Student Loan Payments Mean for your Buyers?

It may be a scary thought for millions of people nationwide, but the resumption of student loan payments is on the horizon.

The jury is out on whether the Biden Administration will allow the freeze on loan payments to thaw on May 1 or extend it for the seventh time since March 2020. However, real estate experts and industry pundits agree that adding another bill to the plate of buyers and homeowners could pose another challenge in the market, as the affordability gap widens.

“It’s hard to make ends meet and consider saving for a home as well,” says Jessica Lautz, vice president of Demographics and Behavioral Insights for the National Association of REALTORS® (NAR).

From the weight it holds on their debt to income ratio to the challenges it presents on an aspiring buyer’s ability to save for a down payment, Lautz says that student loan payments pose an additional affordability challenge amid rising home prices and mortgage rates.

In a September 2021 report, NAR experts found that more than half of non-homeowning millennials (60%) claimed their student loan debt pressured them to delay buying their first home. 

With more than $1.75 trillion in aggregate student loan debt nationwide and average student debt for millennials just below $40,000, George Ratiu, manager of economic research at realtor.com says their concerns are legitimate.

“Yes, a lot of the folks with professional degrees have higher earning power, but when you come out of professional school with the equivalent of a mortgage just in student debt, it’s a fairly tall order to presume then that you can pile on to that with a mortgage,” Ratiu says.

Economic Implications

For the past two-and-a-half years, people have enjoyed a reprieve from paying their student loan debt while also benefiting from a mix of federally backed stimulus and assistance programs that helped mitigate looming financial distress amid the pandemic.

The financial stimulus coupled with record-low mortgage rates provided a tailwind for younger generation aspiring buyers to buy their first home.

Millennials accounted for 43% of the total buyer pool in 2021, according to NAR’s 2022 Home Buyers and Sellers Generational Trends report. Eighty-one percent of younger millennials (23 to 31 years) and 48% of older millennials (32 to 41 years old) were first-time home buyers.

While the government pandemic response may have been a boon for some buyers, it has arguably sowed the seeds of the current economic and inflationary environment that has captured headlines in recent months.

This includes inflation hitting a four-decade high of 7.9% in February, prompting the Federal Reserve to make its first interest rate hike in four years to try to reel in the inflationary pressures that are driving prices up.

When asked how a two-year freeze of student loan payments weighed on inflation NAR chief economist Lawrence Yun tells RISMedia “The impact is unclear other than there is more spending into the economy because of the loan deferral.”

“Inflation is a tad higher,” Yun says. “Exactly how much is unknown.”

According to recent reports from the Federal Reserve Bank of New York, round $37 million federal student-loan borrowers saved $195 billion in loan payments since the government froze their payments at the onset of the pandemic.

The report’s authors also claimed that federal borrowers who had their payments frozen during the pandemic would likely have trouble managing their debts if the forbearance period ended.

For millennials that were able to buy homes during the pandemic, Ratiu says a resumption of payments will spread their monthly budgets thin.

“For many debt holders who have a mortgage, having to restart repayments will increase their financial burden every month, and here I think it all depends on whether these folks have federal or private loans and the terms of those loans are,” he says.” The bottom line is there will be a lot more burden on families who have to support a mortgage and restart paying their debts.”

Managing Their Debt

Despite concerns regarding the potential impacts on affordability, some pundits don’t see the reintroduction of student loan payments as an inherent headwind for buyers.

Nikkie Taylor, a senior loan officer at Motto Mortgage, tells RISMedia that the resumption of student loan payments could potentially help aspiring buyers.

“When no payments are being reported, typically you have to use 1% of the balance that they owe to qualify them,” Taylor says. “When they go into a deferment status or aren’t making any payments, it shows up on their credit report as a zero payment, then that’s when you have to use 1%.”

Depending on borrowers’ balance on their student loans, Taylor says that the minimum payment shown on a borrower’s credit report would be used when getting them qualified for a mortgage if they were to resume paying their student loans.

“That’s what the lender has to use, so it could be an ok thing because your student loan payments are not usually 1% of the balance you owe as a minimum payment,” says Taylor. “So it actually may help some home buyers and even first-time homebuyers if the lenders aren’t going to have to use such a huge amount of money each month for their debt.”

Experts from the Mortgage Bankers Association (MBA) aren’t convinced that the effect on buyers in the market will be severe, going as far as drawing comparisons to a similar government-backed forbearance on mortgage payments.

“It will come down to how we exit that forbearance,” says MBA chief economist, Joel Kan. “If you look at the mortgage forbearance, there are different ways for borrowers to exit, and it has been mostly positive for the most part.”

When borrowers had to go back to paying their mortgages in 2021 amid speculation and concerns of a wave of foreclosures hitting the market, Kan says servicers worked with borrowers to find a plan to exit forbearance that wouldn’t lead to losing their homes.

While he thinks a similar scenario will unfold when student debt payments resume, Kan admits that the additional expense could still challenge people’s ability to save and their monthly expenses.

Kan acknowledged that rising rates and home prices present a hurdle for first-time buyers, but he also says that there has been a shift in the cohort as many are older, have higher incomes and find ways to afford a home.

“Yes, there will be some strain if they have less income because of the resumption of student loan payments, but at the same time, debt obligations have been a lot lower, and I think a lot of these borrowers are better equipped to handle this going forward,” Kan says.

Broker’s Respond

Real estate professionals nationwide tell RISMedia that the possible continuance of student loan payments amid higher inflation, home prices, and mortgage rates could present a mixed bag of implications to buyers in their respective markets.

Rich La Rue, designated broker at HomeSmart’s Phoenix brokerage, says that disposable income, which increased during the pandemic, will take a hit.

“While the payments have been in abeyance, have people been saving that money,” La Rue wonders. “Probably not. They’ve been using it on their lifestyle, so this will negatively impact if they are trying to buy a home.

“It’s tough enough for first-time homebuyers to get into a home right now, not only because of the pricing but also because they are competing with investors and other cash buyers,” he adds. “I think that for many first-time buyers kicking in the student loan payments will put homeownership out of reach for them.

Kendall Bonner, broker/owner of RE/MAX Capital Realty and owner of Motto Mortgage Resource in Florida, echoes similar sentiments. However, she is optimistic that buyers in the market would adapt to the additional monthly payment.

“The reality is that most people often live check to check and at the top of their means,” she says. “The good thing is that once it’s introduced, people will adjust backward to what they need to because they have no choice.

Indeed, reintroducing another monthly payment would be a disconcerting task for buyers. Still, Matt Rand, managing partner at Howard Hanna Rand Realty, doesn’t anticipate student loans weighing down competition for a finite inventory of homes for sale, which is still prominent as the spring market kicks into gear.

“With demand as high as it is right now, there are so many people who are looking to move, upgrade or buy their first home that even if it affects some people, I think there’s so much demand that I don’t think it’s going to affect the market at all.”

Rand doesn’t expect student debt to impact market activity as much as rising mortgage rates and sky-high housing prices, even for first-time home buyers.

“Between those two, I think the student loan issue is a secondary issue for most people,” Rand says. “It’s certainly a factor that people have to consider with their cash flow …but I don’t think that it’s going to change a lot in terms of people being able to get mortgages because it was there whether they were paying it or not.”

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Pay it forward! 7 tips for mentoring a future female leader

Empowered women empower women. Here’s how to work with a less experienced woman in real estate and boost her progress in the profession

Who taught you how to play a sport? Cook a meal? How to dress or do your hair? Who taught you how to drive or how to pack for a trip? For most of us, life has been a series of mentorships, some big and some small, some from teachers, coaches, family members, and friends. As Oprah Winfrey put it, “We are all mentors to people even when we don’t know it.”

To move forward professionally, women need mentors who will help them navigate the sometimes rocky road ahead. If you have experienced success in real estate, whether as an agent, team leader, broker, investor or executive, mentoring can allow you to “reach back as you push forward.”

Ready to take on a mentee? Keep these seven tips in mind to make your mentoring relationship more effective and more meaningful.

Make time for mentoring

According to data analyzed by SHRM, the Society for Human Resource Management, although most women know that mentoring is essential to professional success, 63 percent of women surveyed had never had a mentor. This is a finding that crops up again and again, attributed to everything from lack of women in existing leadership roles to the number one reason given for not mentoring or being mentored, lack of time.

Because so many women are juggling the demands of their home lives with their professional lives, they may have less time to spend talking with their mentor or taking on the role of a mentor themselves. However, the benefits of mentoring make it a worthwhile priority and one that adds value on both sides of the relationship.

Be sure you have enough bandwidth to be effective

That said, if you’re already overwhelmed with your existing commitments, don’t take on the role of mentor then leave your mentee at loose ends. Mentoring is a commitment and requires time, thought and energy.

If you’re mentoring someone outside of your organization, it may be even more difficult for you to find the time and space on your calendar to be an effective mentor. Take an honest look at your schedule and prioritize your responsibility as a mentor once you’ve agreed to it.

Help her take advantage of opportunities

One of the big takeaways from Sheryl Sandberg’s book on women’s workplace empowerment, Lean In, was that women often decline opportunities when they’re presented because of a fear of failure or not being 100% ready to tackle a new challenge. Now, the COVID she-cession has created even more reasons for women to decline new opportunities as they struggle to balance all of their competing priorities and responsibilities.

Come from a positive place with your mentee and make sure she knows that opportunities for growth are just that – a chance to grow into a new skillset and develop new experiences. Help her to develop the tools she needs along the way rather than feeling like she can’t begin until she has them already.

Work alongside her to show her the ropes

If you have the opportunity to work with your mentee directly – co-listing a property together, developing a marketing strategy, or doing due diligence on an investment property – you’ll give her the practical experience she needs while still providing a cushion of support. This may be the most effective way to mentor: showing, instead of telling.

While you’ll want to make sure that the opportunity is one that is challenging, it should also be achievable. Don’t take on the task of mentoring if you’re already overextended or struggling on that particular project. It may make it difficult to slow down and take advantage of teachable moments when they present themselves.

Put the responsibility in her hands

Similarly, resist the temptation to do all of the hard things for your mentee or to smooth the way too much. If she’s struggling with a problem, provide guidance to help her reach a solution without always pulling a rabbit out of a hat on her behalf. 

You’re there to support and help your mentee, not to do her job for her. Make sure that you leave her room to make her own choices and even to make her own mistakes. After all, we often learn more from our errors than from our successes. If she makes a mistake, help her to evaluate it and make corrections where possible.

Don’t act like you know it all

You may have vast experience to share, but that doesn’t mean that you’re always right. Don’t act like you have never made a mistake or like you have all of the answers. Be relatable, sharing things you’ve done wrong in the past and what you learned from those experiences.

Your mentee needs the space to figure things out and talk things through. If you behave as if you’re perfect, you may shut down the lines of communication she needs in order to share with and learn from you. 

Treat her like an individual

Your mentee’s path is different. She’s probably from a different generation. She may have been raised differently and educated differently. She may be from a different part of the country or a different part of the world. Her journey may look somewhat like yours or it may look vastly different. Don’t expect her to be you. Let her be herself.

Treat your mentee like an individual, tailoring your style and your advice to her unique talents and needs. Understand what makes her tick, what motivates her and what discourages her. Develop a communication style and working relationship that works for both of you and avoid a one-size-fits-all approach.

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6 Tips for Starting Your Real Estate Podcast

Podcasts have been around for quite a while. They are a fantastic tool when it comes to generating real estate leads, especially if you are able to capture those prospects in the research phase of their buying process.

Here are six tips for starting your own real estate podcast:

1. Have a "Gimmick"

Just like you should have a unique identifying reason why prospects should use you and not another real estate agent, you should have a reason that people should listen to your real estate podcast. This can be content unique to your area, your personality, a weekly giveaway, etc. Don't just sit there and talk, but have a plan.

2. Start It NOW

Don't take too long planning—the only way you will gain any traction is by starting your podcast TODAY. Your first few episodes may be embarassing a year from now, but it's important that you just "do it." Just like waiting months to perfect a website before a launching it is a mistake, not having that online presence will cost you missed opportunities. As time goes on, your podcasts will improve and you will have better workflows to efficiently record new episodes.

3. Have Fun with It

Don't worry about copying what has been done before. What works for other real estate agents might not work for you. Don't be afraid try experimenting with concepts you think would work. If they don't work, simply don't use them again in future podcast episodes. It's important that podcasting is fun for you, otherwise it won't be fun for others to listen to.

4. Be Consistent

To create a real estate podcast that will generate perpetual residual leads is to have regular weekly episodes. This will train your audience to look forward to your next episode—or have them download all of your archived episodes to listen on their morning commute.

5. Invest in Good Sound Quality

Just like purchasing a good quality camera for YouTube videos, the same goes for making an intelligent purchase towards your audio quality. You can certainly record your podcast on your phone, but listeners can tell the difference. This also goes for recording in a properly soundproofed room versus an open room that emphasizes the echoes of your voice.

6. Understand It Takes Time to Grow

There isn’t a single product or program on the market that can give you quick results (aside from programs that leverage Google or Facebook advertising). So you'll need to accept that through consistency you can build yourself a sizeable following. Keep at it, and your three listeners can grow into 30, which can grow into even more!

To view the original article, visit the Zurple blog.

HUD Debuts Action Plan to Address Racial and Ethnic Bias in Home Appraisals

The U.S. Department of Housing and Urban Development (HUD) has unveiled its roadmap for addressing racial bias in the home appraisal process.

HUD and the Biden Administration released its Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan on March 23, along with an in-depth analysis of how the government and participating agencies can advance equity and root out discrimination in the valuation of minority-owned homes.

“For generations, millions of Black and brown Americans have had their homes valued for less than their white counterparts simply because of the color of their skin or the racial makeup of the neighborhood,” said HUD Secretary, Marcia L. Fudge, in a statement. “Black and brown homeowners in communities just like mine have not felt that they have had a voice or that the Federal government was doing enough to redress the issue of racial bias in the appraisal process.”

Fudge and White House Domestic Policy Advisor, Susan Rice, co-chaired the PAVE Task Force, which set out to evaluate the causes, extent and consequences of appraisal bias and produce a transformative set of actionable reforms to dismantle racial and ethnic discrimination in home valuations.

According to a HUD statement, the PAVE Task Force engaged more than 150 stakeholder groups as part of their six-month research and engagement efforts while putting the plan together.

“We have a long way to go, but the steps laid out in this Action Plan will help our country reduce bias in home valuations, narrow the racial wealth gap, and deliver a stronger and more equitable future for all Americans,” said Rice in a statement.

Dismantling Historic Bias

The PAVE Task Force highlights the historical role of racism in residential property valuation within the Action Plan (report) while also exploring different forms of bias present in appraisal practices.

“Throughout the 20th century, people of color were denied equitable access to housing as federal, state and local governments systematically implemented discriminatory policies that led to housing segregation,” the report reads. “These policies contributed to a gap between the values of homes in communities of color and predominantly white neighborhoods.”

While legislation like the Fair Housing Act was passed to make homeownership more equitable, the report acknowledges that market value disparities still contribute to the “sprawling racial wealth gap” in the U.S.

According to a statement from HUD, the median white family holds eight times the wealth of the average Black family and five times the wealth of the average Latino family.

Part of the report cited a 2021 Freddie Mac study that corroborated national articles that brought renewed attention to the impacts of appraisal bias that homeowners of color had suffered in recent years.

The Freddie Mac report found that homes in Black neighborhoods are about 70% more likely to appraise lower than the sales price for homes in white areas—12.5% compared to 7.4%. Homes in Latino communities were more than twice as likely to appraise lower, at 15.4%.

According to the Action Plan, an appraisal below the contract price in a home sale can sometimes result in a higher required down payment for a home buyer.

“This unexpected, out-of-pocket increase can often cause a sale to fall through, potentially preventing a prospective buyer from purchasing a home,” the report states.

The impact could also result in a downward price renegotiation, which the report’s authors claimed reduces the seller’s financial gain and possibly hinders that family from purchasing their next home.

“A widespread pattern of undervaluation in communities of color can impact an entire neighborhood,” read the report.

Actionable Points

The Action Plan outlines a series of reforms under five points that the PAVE Task Force committed to addressing, including increased accountability and diversity in the appraisal industry while preventing algorithmic bias in home valuations.

It also aims to empower consumers to take steps when they believe they’ve experienced a biased valuation.

The task force calls for a mix of actions including, updates to anti-discrimination obligations, policies and procedures within the appraisal industry.

It also urges the federal government to develop a legislative proposal that modernizes the governance structure of the appraisal industry. The aim is to improve transparency and public participation in the establishment of appraisal standards and qualification criteria, and to advance diversity in the profession.

According to the Department of Labor’s Bureau of Labor Statistics, the appraiser/assessor profession is roughly 97% white, making it one of the least-diverse professions in the country.

To remedy that, the Action Plan also seeks to “lower barriers to entry in the appraiser profession” that make it difficult for underrepresented groups to access the profession and strengthen anti-bias, fair housing and fair lending training of existing appraisers.

Another noteworthy proposal is the development of an aggregated database of federal appraisal data to better study, understand, and address appraisal bias, complemented by a working group composed of subject matter experts from stakeholder agencies to develop a research agenda on appraisal bias.

What the Industry Says

Real estate industry trade groups and federal agencies have already begun praising the newly released action plan.

FHFA acting director, Sandra Thompson, applauded the report, stating that it “affirms the persistence of bias in the housing finance system” and provides a roadmap for the federal government to collaborate with federal and industry stakeholders “to take meaningful steps against” against racial bias in appraisals.

In a statement from the National Association of REALTORS® (NAR), President Leslie Rouda Smith asserted that the association’s 1.6 million members are committed to upholding fair housing laws in all real estate activities, including appraisals.

“Historically, many groups have faced unfair home undervaluation,” Rouda Smith said. “Addressing those wrongs is key to providing financial stability to not only homeowners, but entire communities, and benefits the nation as a whole.”

The Mortgage Bankers Association (MBA) echoed similar sentiments, and added that the organization and its members are committed to working with policymakers and other stakeholders, including appraisers, “to develop solutions that ensure borrowers receive a fair and accurate estimate of the value of their homes.”

The MBA represents more than 2,000 real estate finance companies, including independent mortgage banks and brokers.

“Many of the initiatives announced today can be an important step in the fight toward eliminating biases, improving appraisal accuracy, and opening access to more affordable, sustainable homeownership opportunities for minority borrowers,” said MBA president and CEO, Bob Broeksmit, CMB, in a statement.

While the report notes that many of the reforms can be implemented under existing authorities, Broeksmit said it will be necessary for Task Force agencies to “provide ample notice and comment opportunities for stakeholders during the implementation process.”

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Back to School Business- Building Challenge 2021

Back to School Business- Building Challenge 2021

It’s almost time to go Back to School - whether you’re regrouping to get kiddos in to their classrooms, or just dragging from the long, hot Summer + ready to tackle the downhill side of 2021…take the Challenge!

Pro tip: Find an Accountability Partner for this Challenge. Everything is more fun with a friend…and it really helps to have someone keeping you on track!


(West + Main agents: slack Stacie + let her know you’re in, so that she can add you to a private #backtoschool2021 channel where you’ll find accountability, coaching + support, and let her know who your Accountability Partner is!)

+ Create 10 Email Templates to Streamline Your Client Communication

Keeping a library of canned responses ready to go in your email platform will make it so much easier to respond and provide information to prospects and clients — even when you are out showing property or on appointments. Here are some ideas, but you should think about your business, what you want your clients to know, and how you want them to hear from you!


+ Sign up for 5 industry newsletters

Curate your inbox to make sure that you wake up to useful industry-related news each morning…here are a few that we recommend, comment below with your fave reads, and we’ll add them here!

Inman News
West + Main Agent Pro News
Housing Wire
RIS Media

+ Subscribe to 3 industry podcasts

In between showings, on the way to the office, at the gym or an a run…make the most of your minutes by filling your mind with brainfood, motivation, information + inspiration. Here are a few that we love…comment below with any that we missed, and we’ll add them to the list!

Ninja Selling Podcast
The Real Estate Sessions
BiggerPockets Podcast
Secrets of Top Selling Agents Podcast
Marketing Genius - Placester
The Katie Lance Podcast
Pursuing Freedom Podcast

+ Flip your inbox: unsubscribe from 5 newsletters

If you’re getting emails but can’t remember why, or are no longer interested in the content, hit that unsubscribe button once to save yourself a few seconds and that moment of your attention each day!

+ Save 5 auto property searches for yourself

Use one of West + Main’s websites or the MLS of your choice to set up property searches so that you can keep an eye on the market and specific neighborhoods. We’d suggest:

1. Your own neighborhood/area
2. West + Main’s new Active listings
3. All Coming Soon listings in the MLS
4. The areas around your favorite West + Main offices
5. The neighborhoods where you would love to have a listing
6. Your favorite mountain or staycation getaway town
7. Areas that are hot for investors or likely to have rental property potential
8. The neighborhoods your Top 10 VIP’s live in

+ Add 10 people to your Mailchimp Audience

We think everyone you know should be in your Audience, no matter where they live, how you know them, or what their Real Estate goals + dreams might be. Make sure you’re on your list, too!

+ Start your West + Main Home Magazine list

Again, we think this is a great way to stay in touch with people near + far. Audit your list if this isn’t your first time sending the magazine, and keep it handy so you can add new people until it’s due (due date) - are you getting your own magazine?

+ Plan your Q3 pop-bys

Fall is a great time to pop-by, especially if there are people you haven’t had a chance to see this Summer! Think Back to School Survival (mommy mimosas/fun school supplies), Fall Vibes (pumpkin spice lovers, pumpkins, sunflowers, caramel apple kits), and Octoberfest invites!

+ Add Blocks/Save the Dates in your calendar:

Ninja Workshop
Weekly Company Updates
Octoberfest
Floor Time
Open Houses
Self-Care

Make sure to watch the West + Main Calendar for additions/updates!

+ Check in on your 2021 Biz plan…or create one for Q3/Q4!

Here are some resources:

Business Planning with Erin Bradley
How to Stay Positive + Productive
Breakthrough Broker Business Plan

+ Read or listen to these books:

Ninja Selling by Larry Kendall
The Go-Giver by Bob Burg and John D. Mann
Miracle Morning for Real Estate Agents by Hal Elrod

+ Bookmark these Company Resources:

Toolbox
Calendar
Replays
Blog
Agent Pro Blog
Marketing Form
Listings Form
Brokermint Library

+ Ask 5 People for Testimonials

We recommend using Real Satisfied!

+ Write 5 Reviews for businesses/professionals you have personally used/loved.

If you’re not sure, ask them where they prefer to be reviewed. When in doubt, use Google Business.

+ Complete a Perfect Week sheet + trade with friend/accountability partner

Download a Perfect Week sheet

+ Show or Preview 20 properties:1-20 Addresses

VA-like housing bill proposed for first responders, teachers

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Legislation would axe downpayment and monthly mortgage insurance fee for firefighters, police officers, paramedics, teachers

New legislation would extend a benefit similar to Veterans Affairs (VA) loans to first responders and teachers who buy homes.

U.S. Representatives John Rutherford (R-Fla.), Al Lawson (D-Fla.), John Katko (R-N.Y.), and Bonnie Watson Coleman (D-N.J.) introduced the bill, dubbed the Homes for Every Local Protector Educator and Responder Act, on May 13.

The bill would allow borrowers to finance up to 100% of the acquisition price. Mortgages would be subject to FHA loan limits. Homebuyers would pay an up-front mortgage insurance premium of 3.6 percent of the principal, which could be financed, and would not pay a monthly insurance premium.

If passed, the new program would be administered by the Federal Housing Administration. The benefit is modeled on the widely used home loan program for veterans, which is administered by the Department of Veterans Affairs.

Police officers, prison guards, firefighters, paramedics, emergency medical technicians and public or private school teachers would all be eligible.

But before borrowers rush to take a job as a summer school teacher to get a break on a mortgage, the bill has a caveat. Eligible borrowers must have worked in one of those professions for at least four years.

They also must be in good standing at their job, and not subject to disciplinary action. They must also show that they intend to keep working in the same job for another year.

Like VA loans, which are popular with investors but not homesellers, the benefit would allow the borrower to skip the down payment altogether.

Samuel Royer, the national director for Heroes First Home Loans at Churchill Mortgage and a veteran, came up with the idea for the program, to acknowledge first responders’ sacrifices, he said. “I believe that American first responders deserve the same access to affordable housing benefits that I have as a veteran,” Royer said.

The bill looks to ease access to homeownership by lowering the upfront cost to borrowers. The anemic housing inventory, however, still poses a problem for any potential homebuyers who aren’t prepared to pay well over the asking price.

Homesellers, who now have many offers to choose from, are not likely to look favorably on anything that entails more complicated financing. Loan officers, too, sometimes have reservations about government-financed loans.


Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Fear of Discrimination Still Prevalent Among LGBTQ Buyers

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When it comes to purchasing a home, buyers in the LGBTQ community want to know that they are safe and accepted, according to recent reports released by realtor.com® and the National Association of REALTORS® (NAR).  

Discrimination against the LGBTQ+ community in housing is real, but we know the fear of discrimination is even greater,” said Ryan Weyandt, CEO of the LGBTQ+ Real Estate Alliance, which is partnering with realtor.com® to identify and address challenges associated with housing discrimination on the basis of gender identity or sexual orientation.  

The latter announced the collaboration on Thurs., June 10, coinciding with the annual recognition of Pride Month, while also unveiling findings of a new survey that found that members of the LGBTQ community were less likely to become homeowners amid ongoing discrimination in real estate.

The report surveyed 1,538 LGBTQ community members living in the U.S.

More than half of the respondents didn’t own their primary residence, compared to about 66% of the general population who do.

“I think it’s apparent that we’re able to draw a solid line from how being bullied as an adolescent or teen can ultimately impair you from generational wealth creation through homeownership 15 – 20 years later,” Weyandt said in an email to RISMedia. “There is a prevalent fear that folks in the community will face discrimination in their home-buying process at some point.”

According to Weyandt, there are 27 states that don’t offer protection against housing discrimination based on sexual orientation and gender identity. That could be subject to change if the Equality Act is passed, establishing comprehensive federal nondiscrimination laws nationwide for the LGBTQ community.

Roughly two in 10 survey respondents confirmed that they had been discriminated against when applying for a rental lease or buying a home. Of the respondents, more than half said they experienced discrimination in the past five years—most said it was because of their sexual orientation.

Discrimination was even more pronounced among transgender people, with 44% having experienced or suspected it.  

According to a recent report from NAR, homeownership in the LGBTQ community has remained at roughly 4% of the overall buyer and seller pool since 2015. 

Along with safety and acceptance, an affordable neighborhood is top of the list for homebuyers in the LGBTQ community, according to NAR’s 2021 Profile of LGBTQ Home Buyers and Sellers, released on Wed., June 9.

The data used for this report is a collection of 41,950 responses from participants who specified sexual orientation in annual surveys from 2015 to 2020. 

The report found that homebuyers in America’s LGBTQ community ranked “Neighborhood Quality, Convenience and Affordability” as most important when they considered purchasing a home. 

“Understanding how buyers navigate the housing market is essential to REALTORS®,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights, in a press release. “This report details the impact of the housing affordability challenges on LGBTQ buyers, who typically had lower household incomes and were more likely to be purchasing more affordable homes.” 

Forty-two percent of LGBTQ buyers were first-time homebuyers, compared to just 32% of non-LGBTQ buyers. However, the two groups were equally likely to be first-time home sellers—at 37% and 33%, respectively.

NAR found that homebuyers from America’s LGBTQ community purchase older, smaller and less expensive homes than non-LGBTQ buyers.

The median sale price for homes purchased by LGBTQ buyers was $245,000, compared to $268,000 for non-LGBTQ buyers. The average square footage of a purchased home was 170 square feet smaller and 15 years older than those bought by non-LGBTQ buyers in the past five years.

There is still work that needs to be done to end housing discrimination against LGBTQ buyers and sellers. Still, Weyandt says collaborations with organizations willing to help the cause are moving in the right direction. 

“There is a void of accurate data sampled from the LGBTQ+ community in America,” he says. “As you can imagine, without data points, theories never evolve into action, and trying to explain why the homeownership rate in the LGBTQ+ community is at 49% when mainstream America is significantly higher is virtually impossible.”

Solving the problem won’t happen overnight, but Weyandt says through The Alliance’s education platform, they hope to “drastically increase” the LGBTQ+ homeownership rate in the coming years.

The alliance will host the first national LGBTQ+ First-Time Homebuyer seminar on June 16 and first-time homebuyer guide.


Pizza party? Flowers? Real estate agents and buyers get creative when making offers

41% of agents say cash offers are the most effective strategy in a multiple offer situation, but don’t underestimate the power of pizza.

The things some buyers will do to win a home in a multiple offer situation is crazy, and many times downright risky, such as waiving contingencies, offering 30% over listings… the list goes on. Real estate agents throughout the past six months submitted nearly four offers per client on average before one was accepted, with 13% saying it took on average six or more.

The good news is home shoppers are still finding homes to buy, despite intense competition and multiple offers, with the help of their real estate agents. A new survey by Zillow breaks down the strategies that are working in today’s market to score a home – and what buyers should be prepared for. 

Sweetening the offer 

Agents are using a variety of tactics to help their clients’ offers stand out. At least half of listing agents surveyed encountered an all cash offer, an escalation clause, submission before the offer review date, a higher down payment or more earnest money when reviewing offers.

Out of these strategies, one of the most effective to win a deal is an all-cash offer. About four in five agents (77%) sometimes submitted all-cash offers on behalf of their clients, and 41% of listing agents said an all-cash offer was the most effective strategy in their recent transactions, especially when multiple offers are submitted.

However, cash offers are not feasible for most buyers in the market, and agents use an assortment of strategies to win offers. About 21% of buyers’ agents offered a higher down payment or more earnest money to get their client’s offer to stand out, and about one-quarter always submitted before the review date. More unconventional strategies that agents are using include offering leaseback, throwing a pizza party, and sending flowers to the sellers.

The role of real estate technology

With the market moving so fast, the best and easiest way to get a speed advantage is to get tech savvy. Agents say 31% of clients always or usually tour a home virtually before visiting in person. 

“Being able to tour a home virtually is a big timesaver for buyers,” says Josephine Sabatino, broker manager at RE/MAX Edge in New York City. “3D tours provide buyers a clear, detailed view of the home and they can decide if it’s right for them. This saves buyers from going to see a bunch of homes that just don’t work, and help narrow down their choices early.”

 
CEO of Redfin, Glenn Kelman on Twitter

CEO of Redfin, Glenn Kelman on Twitter

 

Risky offer strategies 

Waiving contingencies is common in an ultra-competitive market, and can be frustrating to home shoppers who lose bids to buyers using this strategy. In their last three to five transactions, at least half of the listing agents surveyed encountered waived inspections or financing in multiple offer situations. However, waiving contingencies can pose a huge risk to buyers in the short and long run. 

  • Waiving an inspection puts buyers at risk of unknown structural, mechanical or safety defects which can be incredibly costly to the buyer.

  • If a buyer waives financing and their loan is not approved or the home doesn’t appraise at the offer price, it’s the buyer’s responsibility to make up the difference in cash or walk away from their earnest money deposit – both potentially costly consequences.

  • So-called “love letters,” intended to tug on a seller’s heartstrings, can put buyers and agents at risk of fair housing violations. These letters can include personal demographic information about the buyer, unlawfully swaying a seller’s decision, which can violate the Fair Housing Act. This is also not a successful strategy for buyers — according to the agents surveyed, love letters are the least important factor for sellers in the current market.

Agents are the key to winning the deal

The residential real estate market is not expected to slow down anytime soon, and that is why it’s imperative for buyers to find a knowledgeable and trusted agent to guide them through the stressful and daunting process of purchasing a home. 

Sabatino’s overall advice for today’s buyers? “Buyers need to remember the why and the priorities that have to come first. Don’t worry about the set up that is already in the house. Bring in a friend with vision, and you could end up utilizing spaces for things you never thought possible!”

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‘Wholesaler’ home flippers prompt new regulations

Advocacy groups say wholesalers dupe sellers into signing below-market contracts

A new kind of house flipper has infiltrated low-income neighborhoods, prompting local governments and agencies to enact more restrictive rules on home flippers capitalizing on distressed homes.

Instead of buying and renovating homes and putting them back up for sale, wholesalers work to put homes under contract and sell to traditional flippers.

However, in the past year, Philadelphia and Oklahoma have required wholesalers to obtain a license, Bloomberg News reported. Arkansas and Illinois passed laws in 2017 and 2019, respectively, to increase regulations on wholesaling.

Advocacy groups and legal aid services allege that wholesalers dupe sellers into signing a contract for far less than market value and then profit off a sale.

Wholesalers are often novice investors that have taken advantage of low interest rates and historically low housing inventory during the pandemic. These flippers have become more popular since the founding of PropStream, a real estate data provider that can help track distressed properties.

Wholesalers also don’t hold real estate licenses, making it difficult for regulators to crack down on the practice.

“I don’t buy houses. I solve problems,” Scott Sekulow, a wholesaler in Atlanta, told the publication, adding he buys homes from clients who can’t afford home renovations or need cash quickly.

Other wholesalers said they were interested in improving neighborhoods and “revitalizing” housing, according to the report.

“If I know that gentrification is going to happen regardless, I would rather it be someone like me making money than some hedge fund,” said Duane Alexander, a software engineer in Atlanta who wholesales on the side. He made around $10,000 on selling a home at a premium to another investor.

Earnings on a fix-and-flip home were more than $66,000 in 2020 — the highest since 2005. Before the pandemic, house flippers weren’t seeing huge returns, but activity remained strong.

[Bloomberg News]


The New Migration: Rethinking Home

No one knew exactly how life would be altered when COVID-19 quickly made its way around the globe more than a year ago. Identifying the ripple effect of the pandemic was an impossibility as we confronted immediate change in every area of our lives, from how we shopped for groceries to how we taught our children to how we went to work.

Much like any crisis, though, the pandemic also triggered new possibilities, including a wholesale rethinking of where and how we choose to live. Resigned to needing to live as close to work as affordably possible, many homeowners had become accustomed to sacrificing space for convenience or, alternatively, capitulating to long commutes. It was just an unavoidable fact of modern life. Until 2020.

Rethinking Home

Given the widespread work-from-anywhere policies instituted by businesses across a host of industries—policies that stand to become permanent for many—COVID-19 has not only impacted how we live, but also where we live.

“By studying what’s happening in other industries, we can learn how our consumers’ lives are changing and better understand how to best serve them,” says Leading Real Estate Companies of the World® (LeadingRE) President & CEO Paul Boomsma. “With many companies—including Dropbox, Twitter, Salesforce, Spotify, Nationwide and Novartis—announcing fully remote or hybrid work scenarios, the trends we are seeing are not likely to change anytime soon.”

Now free from long commutes or steep urban-area housing costs, homeowners are on the move—to areas where they can enjoy more space, be closer to family or cultivate a more fulfilling lifestyle. According to a National Association of REALTORS® (NAR) report, which tracked the impact of COVID-19 on mobility trends using United States Postal Service change-of-address data from March to October 2020, as of December 2020, 8.93 million people had relocated since the start of the pandemic. That’s 94,000 people more than during the same time period in 2019.

No one has better evidence of this migratory trend than LeadingRE. Impossible to fathom when the pandemic first hit, LeadingRE’s global referral network of more than 550 member firms saw a 16% year-over-year increase in sales volume for broker-to-broker referrals in 2020, with an impressive 73% conversion rate on these referrals. What’s more, the average sales price of referrals closed through LeadingRE increased to $445,000—far beyond the 2020 median national home price of $315,900 reported by NAR (at press time).

“People are choosing where to live for reasons that go well beyond traditional factors, whether related to climate, lifestyle or simply proximity to family,” says LeadingRE Executive Vice President, Member Services Kate Reisinger. “This dynamic creates abundant referral opportunities, as we experienced last year, with our members making over 30,000 client introductions to one another.”

The increase in referrals and moves by LeadingRE is indicative of the overall boom in the U.S. housing market triggered by the pandemic. With home prices continuing to rise, interest rates hovering at enticing lows, and homebuyers set free from the work ties that bind, home sales soared to 5.64 million in 2020, a 5.6% increase over 2019, says NAR.

The question for real estate professionals is, will the trends that are igniting housing activity and relocation patterns continue? Here, LeadingRE digs deeper into the factors that contributed to success in 2020 and the trends that are setting the stage in 2021.

The Work-From-Home Effect

While virtual work situations had been on the rise thanks to advanced technology solutions, the trend has skyrocketed in the wake of the pandemic.

According to a December 2020 Pew Research Center survey, 20% of respondents reported that they worked from home prior to the pandemic. This jumped to 71% working from home as of December, with 54% adding that they would prefer to continue to work from home after the coronavirus outbreak ends.

According to Lydia Moy, an agent with LeadingRE member WK Real Estate in Boulder, Colorado, the shift to working from home has been a driving factor for relocating young professionals.

“Ironically, the pandemic has created freedom and opportunity, enabling homeowners to grow their real estate assets by moving to a more affordable area to live their best life,” says Moy, who helped clients move closer to their siblings in Florida during the pandemic with an introduction to National Realty of Brevard. “With the wife’s ability to now work remotely, the relocation was a no-brainer…and a dream come true!”

Work-from-home situations are not only impacting where homebuyers are choosing to live, but also how. According to another LeadingRE member, Matthew Riley, executive sales vice president at Sibcy Cline in Cincinnati, in the wake of the pandemic, clients are looking for proximity to parks and other recreation areas and inquiring about local events offered by a city.

“You’re seeing families needing two offices, a dedicated teaching-from-home area, an area for children to play and more outside living within the boundaries of their property—swimming pools, play areas and walking paths,” says Riley. “Those trends are changing our market, along with the reliance on virtual tours. Home life is coming back to what people are really wanting to do in this new era of 2021.”

A Focus on Family

A significant component of pandemic-induced relocation activity is the trend for families—once far flung across the country—to reunite under the same roof. Whether it’s unemployed or remote-working adult children, or college-aged students heading home, for many parents, the flock has returned to roost. Combine this with increased concern for caring for elderly family members, and you have the need for more space.

Moy experienced the family factor first-hand. “Family became the highest motivation for my clients’ relocation decisions—clients who wanted to be able to see their grandkids and/or be with their siblings during COVID. The pandemic has made time a more valuable asset than money.”

For example, Moy had one retired, elderly client who lived by herself near a golf course and enjoyed an active, outdoor lifestyle. But when her son had a baby, her priority was to help out. “She was a bit lonely due to isolation during COVID,” explains Moy, “so moving to Boise, Idaho, made sense. She is planning to come back to Colorado at some point or relocate somewhere else in a few years.”

Judy Scott, also an agent with WK Real Estate, had a client who wanted to move from Houston, Texas, to Colorado, in tandem with their daughter who would soon be starting a family. The catch? They wanted two separate houses within walking distance of each other, at drastically different price points.

“The mother and daughter were adamant that their separate homes be very close to each other,” explains Scott. “The challenge was that their price ranges were about $1,000,000 apart. They needed a larger community with varied price ranges to work for them. The move would now be possible because, as a result of the pandemic, both the daughter and her husband would be able to move as their jobs had ‘gone remote’ due to COVID.”

By working with a fellow member in LeadingRE, Scott was able to find the pair homes within walking distance. “The best part of the story is that after they both moved into their new homes, they soon found out their first grandchild is on the way.”

Prioritizing Lifestyle

The confinement experienced as a result of the pandemic precipitated a rising interest in second homes, as many looked for places they could safely retreat to and spend time with family.

“We have had incredible success sending outgoing referrals to the beaches and mountains of North and South Carolina,” reports LeadingRE member Catharine Pappas, relocation director of Dickens Mitchener Residential Real Estate in Charlotte, North Carolina. “Our clients realized during the pandemic that they wanted a place to get away where they could spend quality time with family, and that they could drive to without getting on an airplane.”

Pappas also reports sending business to further-away locations in Montana, Costa Rica and Puerto Rico, “for the more adventurous client who did not mind getting on a plane to get away.”

She has also seen increased incoming referrals from a variety of states, including Illinois, New York, New Jersey and California. “These families have been seeking a better quality of life, lower taxes and a temperate climate,” she explains. “I spoke to one family, who lived outside of New York City, who realized that the commute into the city was about the same as if they lived in Charlotte and flew to work every week.”

Reisinger notes, “For many homeowners, the impetus to move has stemmed from the opportunity to now live full-time in locations once thought of for vacations only. Even for those not looking to move to a vacation destination, the demand for resort-like amenities is on the rise.”

Relocation Trends Reach Beyond Borders

With members in 70 countries, LeadingRE is also tracking global trends. In Puerto Rico, Reality Realty has seen a dramatic increase in referrals from mainland U.S. and abroad, spurred by favorable tax incentives as much as the area’s appeal in a post-COVID world.

LeadingRE members in ski markets in Europe have reported a shift, with secondary homes becoming primary residences. Antonin Allard, CEO and founder of ANTONIN real estate brokerage in Megève in the French Alps, says, “Many visitors who came to enjoy mountain air away from the busy cities during the pandemic are now considering investing in a property here. Some clients have decided to switch their primary residence to Megève while keeping a pied-à-terre in the city.”

International Realty Group (IRG) reports increased activity in the Cayman Islands, with sales volumes between September and December up almost 70%. IRG Chief Marketing Officer Stuart Wright says, “Cayman’s notable and well-publicized success in managing the COVID crisis generated the confidence for a massive rebound in the local residential real estate market. As well as a significant increase in interest in the luxury residential sector from locally-based international residents, high-net-worth overseas investors viewed Cayman as a safe haven, not only for the rest of the current crisis, but also for any future ones.

“James O’Brien, IRG’s head of luxury real estate, has been party to a number of high-value sales that have been purchased sight-unseen by relocating investors seeking residency, including a lead from a fellow LeadingRE member in Ottawa, Canada, for a family looking to relocate to Cayman in order to work remotely. James worked with the family to find the perfect property, commissioned a contractor to carry out some initial work on the home and connected them with an immigration attorney to facilitate their residency application. Every step of this process was handled remotely,” Wright says.

Similar examples are playing out worldwide, with LeadingRE members from far-reaching locations collaborating to meet the evolving needs of consumers.

Flexibility and Innovation for the Road Ahead

While the moving and relocation trends of 2020 have no clear end in sight, the ability to capitalize on them—along with whatever turn the world takes next—comes down to a real estate professional’s commitment to innovation and adaptability.

Reisinger underscores this point. “It may mean acting quickly when that elusive lake house comes on the market, while for others it may mean helping facilitate a long-distance move by referring your client to a trusted colleague in another market.”

Sam Mansour, a managing broker for John L. Scott, experienced first-hand how flexibility and quick response time pay off. When working with an out-of-state client last year who didn’t want to spend time in hotels or corporate housing in the midst of COVID, he was confronted with the challenge of finding them a home in a tight inventory market.

“In the area they wanted to live, there was nothing,” says Mansour. “Anything that came on the market would sell in a matter of days for over asking price. So we targeted every pending home that was under contract and called every agent to see if any of the deals seemed a little shaky. We ran into a colleague who said, ‘yes, this home might come back on the market; the buyer financing is a little shaky,’ and we wrote it up the minute it came back on the market. My clients were able to move in without having to stay one minute in a hotel room or corporate housing.”

Situations like Mansour’s are likely to continue as 2021 unfolds, a year still fraught with unpredictability as the world works to reach herd immunity through vaccinations. For real estate consumers, opportunities will persist as interest rates are predicted to remain low throughout the year and remote work situations turn permanent for many.

As Reisinger says, “In this more flexible environment, tuning in to what is driving a person’s decisions when it comes to where and how they live can help you be more responsive as a real estate professional.”

But are the trends currently influencing the market permanent?

“Time will tell what COVID’s lasting impact will be on how and where we live,” says Boomsma. “But from all that we are seeing and hearing from our members, the desire for a home centered around more space, proximity to family and a focus on whatever lifestyle amenities are most important for the homeowner will remain driving factors for the foreseeable future.”

For more information, please visit www.leadingre.com.


Homes in Black neighborhoods undervalued by $46,000

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Redfin report accounts for the fundamental factors contributing to a home's value

In analyzing more than 7 million homes sold between 2013 and the beginning of 2021, Redfin found homes in Black neighborhoods are undervalued by an average of $46,000 compared to homes in primarily white neighborhoods, the company said.

The report accounts for the fundamental factors contributing to a home’s value, such as size, condition, neighborhood amenities and schools.

Only 44% of Black Americans own the home they live in, versus 74.5% of white Americans. Black families who do own their homes have less equity than other races, Redfin reported, with a median home equity of $89,000 in January 2021 versus $113,000 for white families. 

That $89,000 is the lowest median equity among the four races represented in Redfin’s March study, as homeowners in primarily Asian neighborhoods reported $257,000 in median equity and homeowners in primarily Hispanic neighborhoods reported $102,000 in median equity. Homeowners in primarily Black Neighborhoods also started with less equity than Asian ($178,000), Hispanic ($35,000) and white ($63,000) homeowners in 2019, prior to the outbreak of COVID-19.

The value gap between homes in Black and white neighborhoods has held steady over the last eight years, Redfin reported, fluctuating just slightly year-by-year. Homes in primarily Black neighborhoods nationwide were valued at an average of $41,000 less than comparable homes in primarily white neighborhoods in 2020, compared with a $46,000 devaluation in 2013. 

Reginald Edwards, Redfin senior economist, said racist housing policies that were outlawed in the 1960s combined with “continuing biases” among homebuyers and housing professionals in parts of the home-buying process — like appraisals and mortgage lending — are keeping Black Americans from building wealth through home equity.

“We’re left with bias and systemic racism to explain the variation in home values,” Edwards said. “That’s $46,000 that would multiply as the years go on and benefit future generations.”

He added that although Redfin’s analysis measures the undervaluation of homes in primarily Black areas after accounting for similarities and differences in neighborhoods, racial bias has also led to gaps in amenities between Black and white neighborhoods. For instance, areas with a high share of Black residents are likely to have less access to green space than white neighborhoods, and schools in minority neighborhoods are much more likely to be underfunded than those in white neighborhoods.

In looking specifically at Chicago — a city where 30% of the population is Black, according to data from the U.S. Census — homes in primarily Black neighborhoods are valued at an average of $56,000 less than comparable homes in primarily white neighborhoods over the past five years.

“There’s simply a perception that a home in mostly-Black Bronzeville, for example, is worth less than a home in Lincoln Park, which is mostly white,” said Arnell Brady, a Redfin Mortgage advisor based in Chicago. “It might be the exact same house, but the demographics and amenities of the neighborhood are different.”

Daryl Fairweather, Redfin chief economist, said “no real progress” on the racial home-value gap has been made over the last decade — which highlights the depth of the problem and how difficult it is to change, she added.

“There isn’t a policy that would make people less prejudiced,” she said. “We would need to see a broad cultural shift in the way homebuyers view neighborhoods that are predominantly Black. I’m hopeful that can happen.”

There are solutions, Fairweather said: investments at the federal and local level in communities and directly to Black homebuyers, confronting the racial bias of individuals involved in the homebuying process, and diversifying the real estate industry.

The disparity in white and Black homeownership has been well-documented, with the U.S. Census Bureau reporting white homeownership at a nine-year high in the fourth quarter of 2020. Black homeownership, meanwhile, had dropped to 44.1%.

“It used to be that many white homebuyers would consider a neighborhood undesirable if there were any Black residents at all, but now diverse neighborhoods aren’t as stigmatized. However, there still appears to be a stigma against primarily Black neighborhoods,” she said. “Unfortunately, the longer Black Americans have lower home values than their white counterparts, the longer they are missing out on wealth that could be used for other investments and to pass along to their children.”


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