Bernie Sanders Puts the Smack Down on iBuyers, What Makes a Great Real Estate Mentor, & Telltale Signs a Property is Going to be a Tough Sell

Realogy announced that it has launched a new benefits program that will give agents access to things like health insurance at rates that the company manages to negotiate down due to its massive size.
The program is called Spark and, according to a company statement, will give agents access to “individual healthcare, disability insurance, life insurance, auto and home insurance, identity theft protection, human resources solutions, workers’ compensation insurance and commercial property or building insurance.”


The senator's proposed anti-home-flipping and vacant-home taxes could strain the likes of Opendoor, Offerpad and Zillow Offers.
Sanders’ “house flipping” tax would throw sand into the gears of the iBuyer business model. It imposes a 25 percent tax “on speculators who sell a non-owner occupied property if sold for more than it was purchased for within five years of the purchase.”
Since iBuyers resell most of their homes within weeks or months they would presumably have to pay this tax on their resales.
The plan’s 2 percent “empty homes” tax could also have a negative impact on iBuyers. But that would depend on how long a home would have to be vacant to be subject to it.
His plan would cap annual rent increases at 3 percent or 1.5 percent above the inflation rate.
NAR believes the plan “will harm — not help — our nation’s affordable housing crisis, primarily by deterring landlords from maintaining existing housing stock.”
Sanders’ plan does call for building affordable homes — close to 10 million — but presumably not through NAR’s preferred means.
Other features of Sanders’ plan include:
  • $410 billion in rental assistance
  • $50 billion for local governments to set up community land trusts to allow 1 million people to buy “shared equity” homes at below-market rates in perpetuity.
  • $32 billion to eliminate homelessness
  • Boosted enforcement of bans on predatory and discriminatory lending
  • A stop to the sale of mortgages to “vulture funds”
  • And stepped-up scrutiny and regulation of corporate landlords.

  1. Look for price drops and a high number of days on market: Unsellable properties usually hide among the listings that have been posted a while ago and the ones that have had a significant and dramatic price drop.
  2. Pay attention to homes with too many digitally staged photos: You don’t want to know what the owners are hiding. It could be anything from the lack of storage space to serious plumbing issues.
  3. Avoid listings with mentions of third parties: You don’t know if it’s a short sale or how long it will take to close the deal with many parties involved. And you don’t have the time to find out.
  4. Watch for too many trees around the property: This can turn out to be a buyer’s nightmare not only because getting rid of them can be pricy, but also if they can’t because of TPO (tree prevention order).
  5. Steer clear of prefab homes: Prefabricated or prefab homes, as well as steel-, timber- and concrete-framed houses, can turn into financial black holes.
Ecosystems are comprised of countless different parts that exist independently of one another, and yet interact with each other symbiotically to keep the entire environment healthy, productive, alive.
Shouldn’t real estate be like that, as well?
  1. Simple transactions for agents and consumers
  2. Easy collaboration between agents and the office
  3. Actionable insight into revenue-generating activities
  4. Unheralded functionality and flexibility
  5. Seamless interaction with different technologies
  6. A complete real estate experience for home buyers and sellers

1. Shares skills, knowledge and expertise

Good mentors are not selfish. They will share what they’ve learned to be best practices with technology, time management, marketing and customer relations.
2. Excels in time management
Good mentors will set aside time to work one on one with their proteges. No one should expect a mentor to drop everything when asked, but scheduled “office hours” should be set to answer questions and go over processes if needed.
3. Thinks outside the box
Good mentors realize what worked yesterday might not work today. They continue to experiment with new ideas to improve their business processes.
If a mentor is relying too heavily on FSBOs (for-sale-by-owners), door-knocking and expired listings, it might be a sign they are not up with the times.
4. Welcomes collaboration
Mentors should never have an attitude of my way is the best (or only) way. Great mentors collaborate and allow their mentees and others to bounce ideas off one another. They encourage creativity and challenging the process with innovation.
5. Shows patience
Make sure he or she does not have a reputation for being hot-headed or difficult. A good mentor will remember what it was like to be new in the business and will take the time needed to teach. Even if that means teaching the same lesson more than once.
6. Provides feedback and sets goals, both personally and for others
A good mentor will set goals and lead by example. He or she is genuinely happy for others who achieve goals and celebrates their milestones.
7. Understands that mentees must take responsibility for their success
He or she will teach and encourage their protege to succeed but will not do the work for them. Your mentor should teach you to search for answers first and ask questions second.
8. Is involved in community
You have to be seen to be known. Mentors who are involved can introduce you to the inner circles that will help you most.
9. Has a proven track record
Choose an experienced mentor who works full-time in the industry and has excellent client ratings.
10. Is respected within the Realtor community
Do other Realtors enjoy working with the person you are considering as your mentor? That’s a good sign that you are choosing someone who can teach you the foundation your business will stand on.
11. Is team-minded
Although not a necessity, having a mentor who’s on a team has benefits. If your mentor is part of a team, chances are other teammates have also been mentored by him or her.



1. Failing to disclose a property defect
Clients who discover defects after signing the papers will be quick to blame the real estate agent. Every bit of damage and every defect found on the property should be thoroughly documented.
2. Breach of duty
One of the most common lawsuits brought against real estate agents is for breach of duty. Real estate agents know they must always act in the best interest of the client, as clients place a special trust in real estate agents for their expertise.
3. Representing clients in unfamiliar territory
If you are showing and selling properties in an area that you are unfamiliar with, take extra precaution and do your research first.
4. Giving legal advice
Clients want their real estate agent to have an answer for every question they ask. Similarly, real estate agents want to help their clients.
5. Misleading clients
Every real estate agent strives to make their property stand out from the crowd. It might even be tempting to exaggerate here and there about the features or the condition of the house. However, this kind of deception can end disastrously for agents.
6. Breach of contract
When a client claims a real estate agent did not perform under the terms of a contract, he or she might seek legal action.

7. Failing to keep your clients’ data safe

Hackers are everywhere, and they want your clients’ information. Moreover, if they are successful in getting it — you will be the one who pays.
8. Failing to recommend inspections
Real estate agents frequently fail to recommend property inspections to prospective buyers. Your clients are trusting you for your expertise and guidance through the real estate process. But there are some areas that require a third-party opinion.
9. Negligence
Negligence is a cause of action alleging the failure to exercise due care toward others that a reasonable or prudent person would do in the circumstances.
10. Bodily injury
If a client is injured during a showing and you are found liable, you will be responsible for reimbursing any costs related to the accident.



If you’re considering flipping a property, here are some tips to help you determine whether or not it’s the right option for you.
Why NOT to Flip a Property
It might seem like any older property that you remodel will automatically become more valuable, but that’s not always the case.
Landmark properties, properties on a historic register or even properties with historic architectural features could all see their value decrease due to a remodel.
When TO Flip
You have to weigh the cost of your renovation project against the profit you stand to make from the sale, but that is often easier said than done. 
A loose formula for estimating the cost of a flip would look something like this:
Acquisition cost + taxes, insurance, closing costs + holding costs (mortgage) + carrying costs (holding the property before sale) + construction budget + 15% contingency = X
When you’re comparing the number X above to comparable sales in the area you need to 1) make sure that you’re erring on the side of caution when it comes to that estimate, and 2) make sure you’re getting an accurate read on those comps; use nothing more than .3 miles away and no sale more than about three months prior
Is Flipping Right For You?
Here are some things to ask yourself if you’re considering a flipping project: 
  • Where is the property located?
  • Is it in an area with high sales velocity? How many other properties in the area have sold in the last few months?
  • Are there good schools or other neighborhood features that could boost the sale price? 
  • What is my profit potential? After calculating the formula above, does my estimated profit seem worth taking on a project of this scale?
  • Do I know anything about construction or design? Do I know anyone who can help me?

1. Know when you are in fight-or-flight mode

When your heart is pounding, you can’t quite catch your breath, you tense up and start sweating in the face of a stressful situation, you’re probably experiencing your body’s natural response to its protective hormones.
According to Harvard’s Medical School, this “fight-or-flight” response is a survival mechanism that allows us to react to threatening situations, passed down through evolution.

2. Handle an uncomfortable task each day

When you’re dealing with a crisis with your business, there are often tasks you have to do that make you cringe, including letting an employee go because you can’t afford to pay them and telling a client that you made a mistake.
During a major crisis, there are often several tasks that need to be done to get you through that phase of your business or even your life.

3. Have a support person or group

Keeping all this stuff to yourself is not healthy. You need to be able to have someone to listen to your issues and offer you the emotional support you need.
Hiring a psychologist is obvious answer, and most people benefit from having someone to talk to in a controlled environment. But you’re also going to want one or two close friends you can vent to as well. You’ll want people who know you and can remind you that you will persevere and that it’s going to be alright.
4. Realize that your worst-case scenario is not actually going to happen
In Tim Ferris’s book The 4-Hour Workweek, he said something to the effect of whatever your worst-case fear is (the worst thing that could happen), keep in mind that the reality (the final impact) will be much less than you actually think.

5. Remember who you are

In a business crisis we often get down on ourselves and depression sinks in. It’s easy to forget in a few short and stressful days or weeks that you got where you are because you are a fighter, and you have put in years of hard work to get there.
It’s often said that an entrepreneur’s first fortune is the hardest to make. Do you know why? It’s because most successful people get to the top, lose all (or most) of what they made and then make it back.


Most agents continue to use the same pricing approaches that the industry did 50 years ago
If you go to realtor.com on your mobile device and look at the pricing parameters it gives you for a search. Here’s what comes up:
  • $120,000
  • $250,000
  • $350,000
  • $450,000
  • $600,000
  • $700,000
  • $800,000
Zillow uses a slider, but the numbers that come up are still multiples of $10,000.
Granted, some MLS systems allow you to search by specific prices, but a huge proportion of the traffic is searching on realtor.com and Zillow.
Given how many searches take place on mobile devices, if you price your property at $499,999, that one dollar difference can cost you 50 percent of your potential buyers. The reason is that those people who are searching for homes priced at $500,000 to $550,000 will never see your listing that is priced at $499,999.


Keith Urban Concert - Tickets Almost Sold Out
CTR has officially launched its opioid awareness campaign. Tickets for A Concert for Recovery powered by CT REALTORS®, featuring Keith Urban are almost sold out. Purchase your tickets here.
 
The concert is November 17th at Mohegan Sun Arena. CT REALTORS® partnered with WTNH News 8 and iHeartMedia for the concert and corresponding multi-month campaign. Concert proceeds will be used to provide charitable grants to organizations in CT addressing the opioid crisis. Learn more here.