How to Sell to Baby Boomers in 2018

We can thank the Baby Boomers for expanding the real estate industry -and the suburbs- in the years between 1946 and 1964. As they grew, their spending power and buying habits were unmatched in American history; they changed the course of the way we live, advertise, market and buy. These days, Boomers -almost all 75.4 million of them- are about to retire or are already in retirement. This makes them once again a new and lucrative sales pool for real estate. Retirement has always been a big business for real estate salespeople and developers, but the same old retirement story no ...

Is the 6% Commission Fee Still the Norm?

Technology, demographics and the economy are changing the way the real estate industry does business, and the changes keep coming at a dizzying pace. This evolution is causing home seekers to question how real estate transactions have been done for decades, and this includes the formerly traditional six-percent commission fee. Also now being freshly debated: splits between a buyer’s agent and a listing agent. Of course, the six-percent commission has always been considered standard, but it was never the law, and it was not always universally applied. With barriers coming down and middlemen being eliminated, commissions are dropping and brokers are reconfiguring. The ...

Prepare for the Homeownership of Generation Z

Millennials — the name given to the generation born between 1982 and 2004 — have been capturing the American imagination as they come of age, especially with their rejection of many things older generations took for granted: shopping malls, food preservatives and fast food, network television, automobiles, the suburbs, and buying homes. It’s become common knowledge that Millennials prefer urban-like locations, public transportation and bikes, healthy food, phone apps, and renting. However, let’s not overlook Generation Z, born (arguably) between 1995 and 2010 (precise definitions vary). They already consist of 21 percent of the American population, or 66.3 million people, and ...

How Will the Rental Market Affect Real Estate Agents in 2018?

The hottest thing going on in real estate? Single-family rentals. Detached homes or townhomes -for rent- are being produced faster than any other sector of the housing market. That’s more than single-family home purchases and multifamily properties. The Urban Institute reports that the single-family rental has seen growth every year since the dawn of the Great Recession, and has remained at a 30 percent growth rate for the past three years. Compare that with less than a 15 percent growth rate for the once-red-hot multifamily market. After declining for seven years, the single-family rental is hot again. The number of households ...

The U.S. Housing Market 2018: Boom or Bust?

Many experts predict that sellers will continue to control the market in 2018, with housing inventory at astonishing lows and housing demand continuing to rise.  This trend will allow private and institutional sellers to keep their prices high. Inman reports that low inventory may be the biggest factor in discouraging buyers in 2018 – this is in spite of the housing that started rising to 1.297 million units in November 2017. The listing shortage will also affect pricing. In 2017, 25 percent of homes on the market sold within two weeks or less during the peak buying season, according to ...

The Suburbs Are Not Dead — Here’s Proof

We’ve all heard the stories and maybe even began to believe the hype: that Millennials are rejecting communities that depend on automobiles; they’re turning their backs on the suburbs that most of them come from. We’re told that they prefer cities, which offer a walkable live/work/play environment. They gravitate to communities offering public transportation (including light rail), bike trails, and life within walking distance. This is an authentic trend; it’s happening. However, rumors of the death of the suburbs are highly exaggerated. In fact, the only thing Millennials seem to be driving is the suburban resurgence. It turns out that Millennials don’t ...

How to Sell to Millennials

In the next few years, the regular drumbeat of “Millennials don’t buy real estate, they rent” will start to fade, and that common thinking will begin to reverse. You’ll want to be there when that happens, but the same old sales pitch and process is not going to cut it with this generation. As of April 2016, the Pew Research Center reported that Millennials are now the largest living generation in the United States, surpassing Baby Boomers. Millennials, numbering around 80 million, are usually described as being born between the early 1980s and the early 2000s, and they’re now just ...

Real Estate Agents by the Numbers

According to the Department of Labor, employment of real estate brokers and sales agents is projected to grow 6 percent from 2016 to 2026. This syncs up with the average for all occupations; employment generally follows the overall health of the economy and the real estate market. Here are some more real estate agent numbers, provided by the Department of Labor: $46,410 – median pay annually $22.32 – median pay hourly 444,100 – number of jobs available The National Association of Realtors reports the following stats: 53 – the median age of realtors. The typical realtor is a 53-year-old white female who attended college ...

Keep an Eye on these Real Estate Trends in 2018

As the real estate business continues to be altered by technology, housing supply will catch up with buyer demand, putting buyers in the driver’s seat. So fasten your seat belts – the ride will be fast but ultimately stable. Realtor.com reports that, after three years of a housing shortfall, a spurt in inventory will begin in the second half of the year. Once inventory recovers, there will be plenty of demand to meet the supply. The site predicts that the for-sale housing inventory is expected to stay tight in the first quarter, reaching a 4 % year-over-year decline in March. ...

2018 Real Estate Outlook

As we look ahead to 2018, you should still be feeling good about the real estate industry. A number of important economic factors will continue to make housing a profitable profession, but there are some areas of concern that you should be wary of as you craft your long-term business plans. The following are the biggest takeaways from the real estate market as we begin the new year. A strong economy will continue to drive the housing market The stock market is at record highs and so is the consumer confidence, a strong indicator of whether ...