Sun Sep 01 04:00:00 UTC 2024
Understand the Industry and Its Challenges
Real estate professionals must first grasp the complexities of the industry and the various factors contributing to the housing inventory and affordability crisis. This includes recognizing how certain organizations and practices, such as hedge fund investors, “iBuyers”, and built-to-rent communities influence the housing market.
Investor Competition
While it is commonly believed that the housing affordability crisis is primarily driven by low inventory and high interest rates, a significant underlying issue is the competition from hedge fund investors. These investors purchase single-family homes and convert them into rental properties. This practice reduces the available housing stock and drives up prices, making it increasingly difficult for potential homebuyers to be able to purchase a home.
Advocate for Policy Changes
Real estate professionals should get involved in encouraging Federal, State, and Local Governments to implement policies that reduce the number of hedge fund investors in the housing market. This includes advocating against the development of built-to-rent communities which contribute to higher purchase and rental costs. By supporting measures that prioritize homeownership opportunities for individuals and families, real estate professionals can help mitigate the impact of investor-driven competition and work towards stabilizing the housing market.
Promote Affordable Housing Development
Governments should be encouraged to revise zoning laws to support the construction of starter homes and make low-cost loans available to builders, with the condition that these homes are sold to owner-occupants. This would help increase the supply of affordable housing for first-time homebuyers.
Educate Homebuyers
Prospective homebuyers should consider the extra costs associated with renting from built-to-rent communities and large corporate landlords. While these communities provide various amenities, they add to the housing inventory and affordability issues, and their rental rates are generally higher compared to multifamily apartment buildings and traditional landlords.
Discourage Use of Manipulative Platforms
Homebuyers and sellers should be advised to avoid using platforms like Zillow, which engage in market manipulation. Zillow's inaccurate Zestimate and “iBuying” practices have contributed to the current inventory and affordability issues. When Zillow's “iBuying” venture failed, they sold their single-family homes to hedge fund investors who converted them into rental units, further exacerbating the housing problem.
Direct Engagement with Local Agents and Brokers
Encourage homebuyers and sellers to connect directly with local real estate agents and brokers. Direct communication ensures that homebuyers and sellers receive personalized services tailored to their specific needs, and avoids the pitfalls of using large, profit-driven platforms.
Focus on Branding and Reduce Lead Purchasing
Agents and brokers should prioritize building their personal and company brands instead of depending on purchasing leads. Platforms like Zillow have been using referral fees from agents to support initiatives that ultimately challenge the real estate profession. By investing in brand-building, agents can establish a more sustainable and independent business model.
Conclusion
Real estate professionals play a critical role in addressing the challenges of housing market inventory and affordability. They can make a difference by advocating for policy changes, educating homebuyers, discouraging the use of manipulative platforms, and focusing on direct engagement and brand-building. Their efforts can contribute to creating a more stable and affordable housing market for everyone.
Wed Jul 24 16:14:00 UTC 2024
The Allure of Built-to-Rent Communities
Built-to-rent communities are purpose-built housing developments designed exclusively for renting rather than ownership. These communities often come with appealing amenities such as fitness centers, pools, and communal spaces, making them attractive to a broad range of renters, from young professionals to families. The convenience and flexibility of renting in such a community can seem appealing, especially in a market where home prices are soaring.
The Economic Impact on Renters
While the upfront costs of renting might seem lower than buying a home, the long-term economic impacts on renters can be detrimental. Renting means paying monthly fees without building equity. In a BTR community, this translates to a continuous outflow of money to landlords, predominantly large corporations, without any return on investment for the renter. Over time, this can lead to a significant loss of potential wealth accumulation.
Lack of Equity Building: Renters do not build equity in their homes. Equity represents a significant portion of household wealth in the United States. The housing market holds an average value of $22.5 trillion annually, with $13.0 trillion in household equity. By renting, individuals miss out on this crucial wealth-building opportunity.
Financial Instability: Without the financial cushion that home equity can provide, renters are more vulnerable to economic downturns. Homeownership acts as a form of forced savings, providing financial stability that renting cannot match.
The Corporate Takeover of the Housing Market
Wall Street corporations such as Zillow, Tricon Residential Inc., Blackstone Inc., and Opendoor Technologies Inc. are increasingly investing in and developing BTR communities. Their goal is clear: to create a generation of lifetime renters. By controlling a significant portion of the housing market, these corporations can dictate rental prices and terms, further exacerbating the unaffordability of homeownership.
Rising Rental Costs: As these corporations gain more control over the rental market, they can increase rental prices, making it even harder for renters to save enough money to transition to homeownership.
Decreased Housing Supply for Buyers: By purchasing and converting homes into rental properties, these corporations reduce the supply of homes available for purchase, driving up home prices and making homeownership less attainable for average Americans.
Long-Term Consequences for Future Generations
The shift towards a rental-based housing market has dire implications for future generations. The inability to build equity through homeownership means that future generations will have less wealth to inherit, perpetuating a cycle of financial instability.
Wealth Gap Expansion: Homeownership has historically been a primary means of wealth accumulation for middle-class families. By undermining this path, built-to-rent communities contribute to widening the wealth gap.
Reduced Social Mobility: Without the financial stability and opportunity provided by homeownership, social mobility is likely to decline. Future generations may find it increasingly difficult to improve their economic standing.
Preserving the American Dream
If Americans do not awaken to the dangers posed by the proliferation of built-to-rent communities, the traditional path to homeownership may become a relic of the past. It is crucial for policymakers, community leaders, and individuals to take a stand against the corporate distortion of the housing market.
Policy Interventions: Implementing policies that limit corporate ownership of single-family homes and encourage homeownership can help preserve the opportunity for future generations to own homes.
Community Advocacy: Local communities must advocate for affordable housing developments that prioritize homeownership over rental properties.
Public Awareness: Educating the public about the long-term economic impacts of renting versus owning can help individuals make informed decisions about their housing choices.
The American Dream of homeownership is under threat, but it is not too late to act. By recognizing the dangers of built-to-rent communities and taking decisive action, we can ensure that future generations have the opportunity to build wealth and achieve financial stability through homeownership.
Sun Mar 10 23:36:00 UTC 2024
In the labyrinth of the modern housing market, Zillow has long been regarded as guiding light, offering home seekers a digital haven to explore properties with ease. However, beneath its user-friendly interface lies a more troubling narrative—one marked by past actions that have significantly contributed to the current housing affordability and inventory crisis.
At the core of Zillow's controversies lies its ill-fated foray into iBuying, a practice where the company purchased homes directly from sellers, often using its proprietary Zestimate tool to evaluate property values. The Zestimate heralded as a revolutionary home pricing estimator, has come under fire for inflating house prices, thereby exacerbating affordability issues. This artificial inflation not only distorts market dynamics but also perpetuates a cycle of unattainable prices, leaving aspiring homeowners stranded on the sidelines.
Moreover, Zillow's iBuying misadventure had more insidious consequences. When the venture failed to yield the expected returns, Zillow hastily offloaded its inventory of properties to investors, who subsequently converted them into rental units. This mass conversion further diminished the already limited housing inventory, placing additional strain on an already fragile ecosystem.
Beyond its iBuying debacle, Zillow's actions have been accused of contributing to market manipulation. By wielding significant influence over online property listings and employing opaque algorithms to determine home values, Zillow has played a pivotal role in distorting perceptions of market trends and pricing dynamics. This manipulation not only undermines the integrity of the housing market but also perpetuates a cycle of speculation and volatility that erodes affordability and stability.
In light of these revelations, it is imperative that individuals engaged in the housing market exercise caution when relying on Zillow's services. Rather than navigating the treacherous waters of online listings and estimations, prospective buyers and sellers are encouraged to seek guidance from trusted local brokers and agents directly. By bypassing Zillow's platform, individuals can ensure a more transparent and informed transaction process, free from the shadow of market manipulation and inflated valuations.
In conclusion, Zillow's past actions have left an indelible mark on the housing market, contributing to the current affordability and inventory crisis. As stakeholders in this complex ecosystem, it is incumbent upon us to recognize the ramifications of Zillow's influence and take proactive steps to mitigate its impact. By empowering ourselves with knowledge and seeking guidance from reliable sources, we can navigate the housing market with confidence and integrity, ensuring a more equitable and sustainable future for all.
Additional video: Is Zillow Manipulating The Housing Market?
Wed May 05 19:54:00 UTC 2021
Pricing your home accurately is the most important part of getting a quick sale. If your home is overpriced it will sit on the market. The longer a home sits on the market the more difficult it becomes to sell. Some sellers want a set amount for the sale of their home. However, the price a seller wants to get is not the criteria used to set the asking price for a home. A home is worth what a ready, willing and able buyer is willing to pay for it, not what the seller wants to net whether there is a loan payoff or not. It’s important to know what similar homes in your neighborhood have sold for in the current market, and how long they stay on the market.
After coming up with a realistic asking price the next phase is to prepare the home for showings to prospective buyers. A home that has been occupied has normal wear and tear and can be a little clutter. Start by decluttering. Clean underneath kitchen and bathroom cabinets. Clean out closets. Give outdated clothes and shoes to shelters or to someone who can use them. Clean out attic, basement garage, and other storage areas. Make whatever repairs necessary. Add a fresh coat of paint. Clean, or replace the carpet. Your home should look and smell its best for showings.
Whether they see a for sale sign in the yard or by internet search landscaping and exterior maintenance are what help draw prospective buyers to a home for sale. Pressure wash and keep the yard mow and clean. Open up windows to let fresh air in. Add Air Freshener throughout the home. Make sure there is proper lighting in every room.
Be as accommodating as possible to prospective buyers. Don’t hang around during showings. Find a place to go. Sellers shouldn't be in the home during showings because it can make most prospective buyers uncomfortable. They feel like the seller is breathing down their neck which is not a relaxing way to view a home. Having the seller in the home at showings may affect the Prospective buyer’s ability to explore the home objectively. Leave the showing in the hands of your real estate agent.
Attractive landscaping and exterior maintenance help to draw prospective buyers to a home. Whether they find your home on the Internet or a drive-by, exterior attractiveness is a powerful draw. Give your home’s exterior a good pressure washing, remove leaves and pine straw from the roof and gutters. If you’re not a yard person, hire someone to freshen things up and make your landscaping beautiful and inviting.
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How to prepare for a video interview - One Temp Agency: Getting the job is the number one priority. See tips on how to prepare for a video interview that will help you dazzle the Hiring Manager and get the job.
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Blog - One Temp Agency: How to dress for my job interview, How to prepare for my job interview, Resume Tips, How to get a job in a bad economy, How to answer and ask job interview questions, job search
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