How to Save Your Clients Money

Shopping, Svae Money, Alec ShklayrAs the real estate industry evolves along with the rest of the changing world, more opportunities to cut costs, save your client money, and better your reputation emerge. It is important to reflect on these advancements and communicate them to your client so they are saving the most money they can. Sometimes, these opportunities to save money have been around for decades and are not the result of some recent development—they just slip by unnoticed.

Whatever the case, here are a few tried and true tips to save your clients the money they will appreciate:

Don’t call professionals for minor repairs.

So often, homeowners will ring a maintenance professional for clearly minor issues like a leak toilet, for instance. In reality, a leaking toilet is an incredibly easy repair and can often be fixed just by watching a YouTube tutorial and following instructions accordingly. Direct your clients to the proper instructional video or free online resource to save them from needlessly calling a professional.

Ditch extended warranties.

Although extended warranties may seem like they’re worth it at the time, the truth is they are unnecessary for those with the highest price tags. High-grade appliances like your refrigerator and oven generally will not need any major repairs before they need to be replaced completely, so it doesn’t make sense to pay extra for an extended warranty. In fact, your clients would be significantly better off stashing the extra cash in a savings account of some sort.

Forgo storage if possible.

Considering the average cost of a storage unit today is anywhere from $50-$300 a month, is it really necessary? For the most part, your clients can just trash or sell unused items, and store the things that truly matter in their home. Additionally, your clients can reorganize their home storage or maybe even institute some slight renovations like building out window seats with drawers to gain more space.

Just by following these very simple tips, your clients and other homeowners alike can save $1k+ every year. By giving sound financial advice and remaining available to speak with prospective homebuyers, you will develop a prestigious reputation for financial nuance, and your clients/customers will pay you in kind for it.

7 More Highly Rated Real Estate Investment E-books for Kindle

When looking to learn more about real estate, it can be difficult to discern the good information from the bad. That’s why it’s so important to read the right books and to learn the right information. Fortunately, there’s this list of highly rated e-books for the Kindle that can help even the layman homebuyer become a real estate expert. Check it out!

Why Homeownership Matters

With so much information circulating the real estate industry, there is one prevailing concept in particular that oft goes neglected—why home ownership matters. We know it makes a difference, but many don’t know why it makes a difference. Luckily, I just came across this article that does a fantastic job of explaining of why owning a home matters. Check it out here!

Home Appreciation (Accele)Rates

Alec Shklyar, Growth, Real EstateJust as inequality is present in social and cultural sects of society, so too is it present in real estate. In fact, where you live can have an enormous effect on your future net worth. Right now, the United States’ most expensive residential markets are appreciating at faster rates than their less expensive counterparts. How fast? Two times.

Whereas in 1986, the average price in America’s most expensive market hovered around $127,058, it is now at $493,504. Comparatively, the average price of a home in the least expensive market was $52,022 in 1986. Now it’s $117,827. That means homes in the more expensive bracket increased at an incredible 320% faster than the less expensive markets.

That, in turn, indicates that buyers who were able to purchase more expensive homes previously have seen a much, much larger return on their investment, which further means that their descendants will have access to considerably more wealth than others. Thus, inequality is further bolstered in full force.

Additionally, this discrepancy is not likely to change anytime in the near future. If anything happens at all, it is bound to take generations. The influencing factors are simply so broad, so expansive, that to enact any real lasting change will be an immense project. The rising costs are primarily due to income growth and housing supply.

In more expensive markets, buyers have more money and more income. This means they can afford to buy more expensive homes. This ability then translates to higher competition and thus faster growth and appreciation.

Just as well, less expensive markets generally have more building activity, which means more supply, which means less expensive homes. So demand does not increase to the extent it would, say, in San Francisco, because more homes are being built, so there are more homes to choose from, and by extension less reason to push up prices.

If you’re looking to maximize home appreciation rates, these are the cities with the largest return since 1986:

San Francisco, California

San Jose, California

Honolulu, Hawaii

Seattle, Washington

Portland, Oregon

Oakland, California

Orange County, California

Los Angeles, California

San Diego, California

Miami, Florida

Real Estate is Back

Alec Shklyar, Real EstateIn the wake of the 2008 recession and the housing market’s collapse, millions of Americans were subject to foreclosures and penalized credit reports. Seven years ago, foreclosed home rates reached their peak, and now, those impacted credit scores are finally beginning to fade. What does this mean? Well, for one, it means more Americans can finally start improving their credit scores again, which means the housing sector has the chance to benefit enormously.

Ralph MacLaughlin, Chief Economist at real estate search engine, Trulia, puts two and two together, “Improving credit scores might entice households to start borrowing more in general.” This means that the housing market is increasing exponentially because there are many more prospective consumers. Not to mention, interest rates are much lower than traditional standards because of the significant reduction in activity since 2008.

So, decreased interest rates and more able consumers spell great news for the real estate industry at large. Additionally, there have been sustained gains in employment as well, along with bigger increases in pay, which gives prospective consumers even more capital with which to purchase homes and thus increase the housing sector as a whole.

Now, while this all makes crystal clear sense in theory, the numbers are a bit more difficult to quantify. What we do know for sure is that the number of consumers with a new foreclosure added to their credit reports reached a record-high in 2009 at 566,000. According to the three major players in consumer credit scores and reports, Experian Plc, Equifax Inc., and Transunion, foreclosures and short-sales (when a home is sold for less than what’s owed on it) usually roll off these negative reports seven years later. Considering it’s 2016 and the peak happened in 2009, that roll-off would happen right about…now.

This should manifest itself in a stronger demand for homes, which could mean higher spending on durable goods like appliances and furniture. Just as well, formerly afflicted consumers may also feel more comfortable applying for new credit cards, auto loans, and other various loans, which, overall, is good news for the economy (so long as the loans are responsibly approved). This credit repair could feasibly in and of itself aid people in repairing their financial standing by then reducing their borrowing costs, which would ideally free up money that could be used to further general consumption.

I suppose, to put it frankly, real estate is back. Interest rates are low; and I expect we will see a surge in homeownership very, very soon.