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Keep up with us on Facebook and Instagram. We also offer home video tours, Realtor branding videos, aerial shots, live streams and more.. closingtimepodcast.com and click on the CMG Real Estate Link.

“You own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.” That’s pride of ownership. 

But aside from the positive psychological effects of owning a home, homeowners in strong markets build equity. 

From having room for your kids to play to being able to entertain to having space to do the things you love, owning a home helps people realize their full potential.

It also provides a greater sense of stability and opportunity, while growing personal wealth. Homeownership by those who make down payments, and who stay in their houses over long periods of time can result in better academic and emotional outcomes for children.

Nearly 60 percent of Americans own their homes, and for good reason. The National Association of Realtors points out the many social benefits, which include civic participation, financial education and poverty improvements.

Plus, a person who cares for their home is more likely to care for their community through donations and volunteer efforts that keep their neighborhood and schools safe, livable and thriving. In other words, you help yourself and others contribute to a fundamental sense of belonging and responsibility to the wider community.  

Homeownership also plays a critical role in the economy. 

According to the National Association of Home Builders, building 100 average single-family homes generates 305 jobs, $23.1 million in wage and business income, and $8.9 million in taxes and revenue for state, local and federal governments. 

Rents are climbing and more higher-income Americans are choosing to lease rather than buy, but while those conditions are a boon to investors many middle-income earners are nevertheless facing a lack of housing supply.

New research from data firm CoStar paints a picture of an overall booming U.S. rental industry that has seen uneven growth across different parts of the market. For starters, much of the multifamily housing being built today tends to be high-end luxury units.  The number of renter households in the U.S. has grown the most among those earning more than $100,000 per year. And those renters are being attracted to the locations and benefits of living in well-connected urban hot spots. 

CoStar found that since 2015 rent has grown by about 4 percent each year, which is between 1 percent and 1.5 percent more than incomes. The current tendency of people to move out of pricey states as they face affordability woes and into more affordable ones is well-documented, and is typical of what happens as an economic cycle reaches its high point.

All of this represents something of a two-edged sword: On the one hand conditions are tough and getting tougher for renters, but on the other those people who can afford to step onto the investment ladder stand to make reliable returns as rents continue to rise.

For the first time in 14 months, home price growth is accelerating.

Nationwide, home prices grew by 3.6 percent in May year-over-year and 0.9 percent from April, according to the latest data from CoreLogic. At 10.7 percent, Idaho had the highest growth rate out of all the states. Utah and South Dakota followed at 7.8 percent and 7.7 percent, respectively.

The growth can be attributed to a strong job market and decreased mortgage rates, according to CoreLogic. 

CoreLogic predicts that home prices will see even steeper growth in the coming year — 0.8 percent by next month but 5.6 percent by May 2020.

Due to years of consistent home price increases, many buyers are worried about their ability to afford a home. According to CoreLogic, 28 percent of homeowners are worried they won’t be able to afford buying a new home in the future. Only half are satisfied with the number of options available in their market while 40 percent believe they will have to relocate

Amid a growing sense of national crisis over the cost of housing, President Trump created a new government council Tuesday and tasked it with clearing “regulatory barriers,” such as zoning, that get in the way of building new homes.

Ben Carson — who leads the U.S. Department of Housing and Urban Development — will now also serve as the chair of the White House Council on Eliminating Barriers to Affordable Housing. In an executive order, Trump said the role of the council would be to increase the supply of homes in the U.S. in an effort to meet demand.

Trump also singled out an array of specific regulations that he argued are getting in the way of housing construction. The regulations include zoning, limits on population density, “undue parking requirements” and “cumbersome” construction permitting procedures.

However, the executive order also mentions environmental regulations, which have significant support in the liberal coastal cities that are most severely affected by current housing shortages. Trump has also made rolling back environmental regulations a keystone of his administration, proposing for example a massive expansion of offshore drilling and shrinking protections for rural land in the West.

In other words, Trump’s executive order suggests a willingness to rethink contemporary city planning, but still falls well within the president’s pattern of attacking regulation generally.

National Association of Realtors President John Smaby lauded the formation of the council, saying that, despite historic economic growth, misguided regulations have prevented many Americans from purchasing a home.

Thinking of cold-calling expired listings? Careful — doing so may land you in legal hot water. Keller Williams Realty is the latest real estate company to be hit with a proposed class-action lawsuit alleging its agents made unsolicited, prerecorded and autodialed calls to consumers without their consent — including calls to consumers registered on the national Do Not Call registry — in violation of the Telephone Consumer Protection Act (TCPA).

The National Association of Realtors has identified TCPA lawsuits as one of the major legal issues its members should keep in mind in the near term, noting that a lot of “trolling” law firms see violations of the TCPA as “low-hanging fruit.” The trade group advised its members to obtain written consent from consumers before texting them, to avoid using auto-dialers without consent and to scrub phone numbers in their contact database against the DNC registry.

Although calling expired listings is a time-honored way to drum up business in real estate, being on the receiving end of such calls is not always welcome. Exasperated homeowners sometimes even get local authorities involved to stop the seemingly endless stream of agent calls.

The complaint cites numerous Keller Williams training videos that encourage and teach agents to call expired listings and For Sale By Owner (FSBO) listings, including one that inaccurately tells agents that it’s ok to solicit a FSBO listing even if the number is on the DNC list. (Agents may only call such numbers to inquire about the property for their buyer client, not to solicit the listing.)

How does your technology product or service improve the real estate industry? You have four minutes. And you’re on a stage in front of hundreds of real estate pros and a few prominent judges who get to grill you on what you’re offering.

Sound attractive? You’re in luck. The application process is now open for the National Association of Realtors’ second annual iOi Pitch Battle, a contest in which aspiring real estate tech startups vie for $15,000 in cash and the attention of venture capitalists and others who could help them make a splash in the industry.

On-demand photo-editing service BoxBrownie beat out 15 other contestants when NAR held its first pitch battle at its inaugural Innovation, Opportunity and Investment (iOi) Summit in San Francisco last year.

This year, NAR is holding the tech conference at the Hyatt Regency Seattle beginning Tuesday, Aug. 20 and going through the late afternoon of Thursday, Aug. 22.

Pitch battle contestants will present live on Wednesday, Aug. 21, 2:30-4:30 p.m., and the winner will be announced Aug. 22 at 9 a.m.

Whether you’re a new agent or a seasoned one, if you don’t often encounter military or veteran clients, then you might need a reminder on the unique priorities of this group.

And even if you’ve served in the military yourself or are a current mil-spouse-real estate agent who specializes in this demographic, keeping up on the changing policies surrounding military moves and benefits when you’re running a business can be difficult.

Some facts, 260,000 military personal relocate every year and 230,000 transition out of the service. They can move up to 20 times during a typical career and move 7 times more often that civilians. 7 in 10 hired the first agent they interviewed. They average 8 weeks searching for a home, civilians average 10. Active Military and veteran buyers make up about 20% of all home purchases yearly, despite making up less than 8 percent of the US population. 

Military families come to real estate with all kinds of questions about where to live during their tour. Some of these housing options — like temporary lodging, long-term rentals or on-base housing — may not be part of your business model, and that’s fine. But have resources for these topics and be able to point your clients in the right direction.

Also, when home shopping with military clients, begin with the end in mind. Know that military families will likely leave in the next three to five years and will be faced with a decision either to sell the home or rent it out, so look for situations likely to make sense when that time comes.

And don’t just know the basics of the VA Loan — become a stark raving fan of this valuable benefit that allows service members and veterans the opportunity to buy a home with no down payment. Be able to promote its use enthusiastically to other agents who may not understand or appreciate it.

Understand military families usually have a tight move timeline, so it’s up to the agent to take the lead and demonstrate how to find the right home in the right area. Most clients will have a limited amount of time in temporary lodging, so get as many of the milestones as you can out of the way before they arrive.

Understand military families usually have a tight move timeline, so it’s up to the agent to take the lead and demonstrate how to find the right home in the right area. Most clients will have a limited amount of time in temporary lodging, so get as many of the milestones as you can out of the way before they arrive.

Live video is an important tool used to build rapport with clients who have not yet arrived at their new duty station. With video, you’re already making a personal connection, building trust and showing clients you’ll make time for them, even though they can’t buy from you that day.

Real estate agents often share their resources for landscapers, carpenters, cleaners and other home services. That’s no different for military families, but you should recognize that they're more likely to be entirely new to your community and would appreciate an introduction upfront.

Endeavor to make other military-focused real estate agents part of your referral network so you can offer your clients a good match when they move out.

Mortgage rates have been on a roller coaster for the last year, but now they’re sitting at the bottom of the track, and that is boosting the number of borrowers who can benefit from a refinance by a lot.

With the average rate on the 30-year fixed mortgage hitting a three-year low of 3.73% last week, according to Freddie Mac, 8.2 million borrowers could refinance and lower their interest rates by at least 75 basis points, according to Black Knight.

The average borrower could save about $266 per month, bringing the total amount of potential savings to about $2.2 trillion.

Refinancing can lower monthly payments, but it can also provide easy money for homeowners with high levels of home equity. Given the steep rise in home values over the past three years, homeowners currently hold an aggregate $5.98 trillion in tappable equity. Tappable equity is generally considered the value of the home beyond the 20% retained equity most lenders require.

During the last housing boom, in the early 2000′s, borrowers were using their homes like ATM’s. That resulted in negative equity positions when home values crashed, leading to the worst foreclosure crisis in history. Borrowers today appear to be much more reluctant to leave themselves without a cushion, remembering that home values can go down as easily as they can go up.

Here are a few things you should know before you make your first flip.

In a reality show, flipping a house often has the drama of some unexpected doom. Things like a cracked foundation or an attic filled with termites that threaten to ruin the flip. While these are often hyped up for TV, the reality is that if you pay too much for a home without accounting for the cost of repairs and upgrades, your flip can turn into a flop.

Most seasoned investors use the 70% rule which basically states that you should not buy a home for more than 70% of the after repair value of a property. In other words, the after repair value is what the home is worth after your done making repairs and a few upgrades.

Once you've settled on a home to flip, the next questions are, who will make the repairs? How fast can they be done? If you're planning on making most of the repairs yourself, then you need to be certain you have the time to do it.

Fake TV makes the process look fast and easy, but it's not. Scheduling professional contractors, repairmen, painters, and carpenters take time, as does the work. If you plan on making most of the upgrades and repairs yourself, be certain that you can handle the job.

First-time home flippers often feel that they can do most of the work themselves in order to save money, then find themselves overwhelmed or under skilled to handle the job.

Patience is key to a successful house flipper. First, you must find a home that's priced below its market value. 

Educate yourself on the trends, markets and home values in the areas where you intend to buy your first home. When it comes time to sell, you have to consider who your potential buyers are, what they can afford, and where they want to live.

Flipping houses for a living can be financially rewarding, but you have to know what you're getting into and educate yourself on the process. There are many investors who started off flipping houses in their spare time just to get a feel for the process.

That’s a great way to start for first-time flippers. Some of the best advice you can get is from someone who is already successful at flipping houses. Take some time to meet with other investors or attend a seminar on how to invest in real estate and flipping houses.

Closingtimepodcast.com for the latest news from the real estate world, helpful tips for buyers, sellers and other agents, and all of our previous podcast episodes.
Keep up with us on Facebook and Instagram. We also offer home video tours, Realtor branding videos, ariel shots, live streams and more.. closingtimepodcast.com and click on the CMG Real Estate Link..

This week Abby & Joe talk about the top 10 places Millennials are moving in the US. Paul Simon is the most recent celebrity to be leaving Connecticut. Venmoing earnest money deposits, and ways for REALTORS to give back to their communities. 

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