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By Susanne Dwyer

In 2018, anticipate home-building will shift to the suburbs, according to a forecast recently released by Zillow. Cheaper construction costs, coupled with demand for entry-level homes, is expected to lead to increased inventory in the suburbs.

“We’re on the other side of the housing recovery, and the real estate market looks quite different than it did 15 or even five years ago,” says Dr. Svenja Gudell, chief economist at Zillow. “We have a huge generation entering the market. They really want to be homeowners, and they’re faced with an inventory crisis that leaves them with few options. Builders won’t ignore this hungry market, and we’ll start to see a rise in new construction at the more affordable end, instead of all the luxury buildings we’ve seen lately.

“However, builders are also facing high costs, so instead of adding density in cities where zoning laws and land costs often preclude affordable building, we’ll see the suburbs grow and expand outward.”

Fifty-one percent of for-sale homes are priced in the top tier, Zillow reports—for many millennials, unaffordable. Inventory is currently down 12 percent year-over-year. If builders follow the forecast, millennials in need of options and reasonable prices will make their way out of cities and into the suburbs.

Additionally, builds will be designed for generational preferences, the forecast predicts.

“New homes will be designed to be particularly appealing to the millennial and boomer generations,” Gudell says. “Wide hallways can make it easier to move in, as well as make it easier to navigate a stroller or wheelchair through the halls. Large drawers will replace cabinets, making it easier to access everyday items that previously were hard to reach.”

Along with construction will be remodels. Homeowners leery of a market in which they may not be able to play a part will renovate, the forecast projects.

“In most markets around the country, housing has become a game of musical chairs, and nobody wants to be the last one without a seat,” says Gudell. “Homeowners who are looking for a change will turn to remodeling and redecorating, instead of selling their home and facing the challenges of being a buyer in a sellers’ market.”

View more of Zillow’s 2018 Housing Predictions.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post 2018 Forecast: Affordable Homes in the Suburbs appeared first on RISMedia.

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From:: Finance and Economy

By Susanne Dwyer

The holiday season is here, and with it the mass amounts of consumer shopping tied to gift-giving, or just personal spending at a discounted price. While terms like Black Friday and Cyber Monday are synonymous with post-Thanksgiving consumer spending sparked by widespread sales, real estate shoppers are no strangers to home-buying during the holiday season, regardless of their location.

With seasonal real estate transactions come serious buyers and sellers who are ultra-motivated to spend their money and close quickly.

“Many times, when you have clients who are looking during the holidays, they are really serious buyers. After all, most people are out shopping or preparing for the family feast,” says Nancy Lulejian Starczyk, president of the Southland Regional Association of REALTORS® in Van Nuys, Calif. “Additionally, the buyer may need to buy before the year is out, or they want to be in their new home to bring in the new year.”

Sarah Gustafson, president of the REALTOR® Association of Central Massachusetts, agrees with motivation being the underlying factor for those who stick around in a winter market.

“You have less inventory, but the inventory that you have is more motivated,” says Gustafson. “With snow and muddy boots coming through a home, sellers won’t put their home on the market unless they are motivated. And the same goes for buyers—if they are out at this time of year, they are very motivated.”

Often, the motivation stems from buyers who just want to get into a home before Thanksgiving, Hanukkah, Christmas or other holidays. And sellers want it done and closed by end of year, which is especially true for luxury or distressed properties, according to Bruce Elliot, president of the Orlando Regional REALTOR® Association.

In some instances, the added motivation of sellers and buyers leads to smoother and faster closings during the holiday season.

“Sellers who are willing to be in ‘show condition’ during the holidays are just as serious as the buyers who are looking. It’s a great time for both parties to be open to negotiating a mutually acceptable and timely sale,” says Lulejian Starczyk.

During this time of year, many markets are also dealing with tight inventory, which adds a competitive twist for buyers that have to deal with multiple offer situations. The impetus for selling can also be heightened in states that experience a noticeable drop in temperature during the winter months.

“The one thing that is really driving the market is the lack of inventory,” says Matt Akers, owner and managing broker of Rainbow Realty and president of the Lafayette Regional Association of REALTORS® in Indiana. “I think the people that are going ahead and putting their homes on the market [are] trying to get through the winter.”

Holiday homebuyers, just like the swarms of Black Friday midnight shoppers, tend to be part of the younger generations, although sources say all types of homebuyers are looking for similar things, regardless of time of year.

“Millennials now outnumber the baby boomers. And interestingly enough, they are both looking for the same features in the home. Both are …read more

From:: Real Estate News

By Susanne Dwyer

ReferralExchange agents take an out-of-the-box approach to generating referrals

Referrals have long been a key for success in the real estate business, but simply waiting for friends and family members to tell you they know someone moving out of the area isn’t enough to cut it for real estate professionals looking to keep pace with an increasing agent landscape.

That’s why many savvy agents have turned to ReferralExchange, taking advantage of the service to easily boost the number of referrals sent out each month.

The Power of Instagram
Nicole Mickle has been a licensed REALTOR® for six years in Orlando, Fla., but involved in the business for 21 years, serving as a mortgage broker, real estate transaction coordinator and loan officer.

In her opinion, referrals are an important piece of an agent’s success because they build creditability and create multiple streams of income.

“You may have a local presence, but being part of a network like ReferralExchange instantly grows your business on a national level and creates opportunities that you most likely wouldn’t have been presented with. It also creates relationships with an existing client base that may need you to refer a family member or friend outside your coverage area,” says Mickle. “You then become the ultimate resource to your clients and their network.”

Mickle is a big believer in using social media to not only increase her referrals, but to communicate with others who have similar interests.

“I quickly noticed that Instagram had become my most vital platform in growing my business,” says Mickle, who created a presence that companies like ReferralExchange were able to find. “As a result, they thought I would be a good match to join their network. Since then, I’ve created a platform of connections with other real estate agents in different markets all over the U.S. who refer buyer and seller referrals to me thanks to Instagram. I’m also able to refer other direct connections into the platform and match them with agents who I think they would love to work with.”

Regularly posting on Instagram about the Orlando area, Mickle also takes the time to share tips and provide a glimpse into the city’s daily lifestyle. Not only has this allowed her to better connect with other agents, but it’s also led to her receiving her most recent listing—and new buyer.

“Agents and clients may follow you for months without saying a word, and then boom, you get a new client,” says Mickle. “Most view these leads as difficult because they come from an online source, but I interpret this as more of a referral client. People who follow you on social are vetting you to make sure you will take care of their client in the manner they would. These are their relationships they’re putting on the line, so it’s very important to present yourself as a business person.”

Choosing Direct Marketing
Elizabeth Russo, a Walnut Creek, Calif.-based REALTOR® with Windermere Diablo Realty, has a policy that might seem unheard of to many agents: She refuses to …read more

From:: Real Estate News

By Susanne Dwyer

ReferralExchange agents take an out-of-the-box approach to generating referrals

Referrals have long been a key for success in the real estate business, but simply waiting for friends and family members to tell you they know someone moving out of the area isn’t enough to cut it for real estate professionals looking to keep pace with an increasing agent landscape.

That’s why many savvy agents have turned to ReferralExchange, taking advantage of the service to easily boost the number of referrals sent out each month.

The Power of Instagram
Nicole Mickle has been a licensed REALTOR® for six years in Orlando, Fla., but involved in the business for 21 years, serving as a mortgage broker, real estate transaction coordinator and loan officer.

In her opinion, referrals are an important piece of an agent’s success because they build creditability and create multiple streams of income.

“You may have a local presence, but being part of a network like ReferralExchange instantly grows your business on a national level and creates opportunities that you most likely wouldn’t have been presented with. It also creates relationships with an existing client base that may need you to refer a family member or friend outside your coverage area,” says Mickle. “You then become the ultimate resource to your clients and their network.”

Mickle is a big believer in using social media to not only increase her referrals, but to communicate with others who have similar interests.

“I quickly noticed that Instagram had become my most vital platform in growing my business,” says Mickle, who created a presence that companies like ReferralExchange were able to find. “As a result, they thought I would be a good match to join their network. Since then, I’ve created a platform of connections with other real estate agents in different markets all over the U.S. who refer buyer and seller referrals to me thanks to Instagram. I’m also able to refer other direct connections into the platform and match them with agents who I think they would love to work with.”

Regularly posting on Instagram about the Orlando area, Mickle also takes the time to share tips and provide a glimpse into the city’s daily lifestyle. Not only has this allowed her to better connect with other agents, but it’s also led to her receiving her most recent listing—and new buyer.

“Agents and clients may follow you for months without saying a word, and then boom, you get a new client,” says Mickle. “Most view these leads as difficult because they come from an online source, but I interpret this as more of a referral client. People who follow you on social are vetting you to make sure you will take care of their client in the manner they would. These are their relationships they’re putting on the line, so it’s very important to present yourself as a business person.”

Choosing Direct Marketing
Elizabeth Russo, a Walnut Creek, Calif.-based REALTOR® with Windermere Diablo Realty, has a policy that might seem unheard of to many agents: She refuses to …read more

From:: Real Estate News

By Susanne Dwyer

Ramping Up for the Next Generation of Real Estate

For the ownership team at Berkshire Hathaway HomeServices New Jersey Properties, it’s all about focused growth—and maintaining a company culture that thrives on performance and professionalism. The company, which reported volume last year of over $1.5 billion, has grown its agent population by nearly one-fourth in the last three years alone, from 650 to more than 800. “Our approach to building the company is to focus on people who can make a full-time commitment to the industry, their customers, and our company,” says Chairman and CEO Bill Keleher. “We excel at helping this type of individual reach the next level of growth both personally and professionally.” In this exclusive interview, Keleher and company President Chris Brown discuss the team’s singular strategy: a collaborative, people-centric culture that inspires ongoing quality, performance and innovation for the next generation of real estate.

Barbara Pronin: Let’s begin with a recap of your individual career paths, and how you got on this present road together.
Bill Keleher: I grew up in Kansas City, Mo., went to college in Virginia and then came to New Jersey for a month to visit my two best friends in Westfield. When I decided to stay longer, I got a temporary job in a clothing store where I met a couple of young men who were in the real estate business with a local firm. After getting to know them, I made a decision to try real estate, as well, and 48 years later, I’m still in New Jersey and still in the real estate business.

I began in sales in a small office in Westfield, went on to become a manager, sales trainer, regional manager and finally president of the 12-office company that I ultimately purchased. I sold that company in 1986 to Schlott REALTORS® and worked for them until I had the opportunity to purchase Prudential New Jersey Realty from Prudential Real Estate in 1991. In the ’90s, I acquired numerous other small Prudential companies in New Jersey, and in January 2001, I merged the company with Prudential Pioneer (Seymour and Nancy Litwin’s company) and Prudential Brown-Fowler (Chris Brown’s company), forming Prudential New Jersey Properties. Steve Janett joined our ownership team in November 2006 when we acquired his company, Prudential Janett Real Estate.

Chris Brown: I, on the other hand, grew up in real estate, but swore I’d never get into this hectic business because I saw my dad always running out to his next appointment. So, in 1980, I graduated with a business and forestry degree from the University of Vermont and went to work for the Aspen Ski Corporation in Colorado. Returning to New Jersey that summer, but on my way to Norway to pursue a relationship with Brit, a girl I had met there during my junior year of college, my father convinced me to get my real estate license. I actually did, and soon after, sold my first house for $350,000, making more in that one transaction than I had …read more

From:: Real Estate News

By Susanne Dwyer

HomeTeam Inspection Service raises the bar in a competitive industry

For Paul Spires—founder of HomeTeam Inspection Service—the idea to introduce a team of inspectors onsite came from his desire to provide a more thorough home inspection and relieve a common problem he heard about within the real estate industry: the length of time it took to get an inspection.

He created a way to speed up the home inspection process for both real estate professionals and their clients. And, for the last 25 years, HomeTeam has been utilizing this unique team concept to deliver a better client experience.

“Everything we do is centered around the team concept of having multiple people at the inspection and the benefits it brings to the client and their agent,” says HomeTeam President Adam Long.

With a greater percentage of homes being inspected today—a trend that will continue to accelerate—HomeTeam’s steadfast commitment to being fast, trusted and accurate is a true competitive advantage in today’s real estate environment.

“People, especially real estate professionals, don’t have 3-4 hours to spend on a home inspection,” says Mitchell Rothenberg, owner of HomeTeam Inspection Service in Tampa Bay. “Not only does the sophisticated concept developed by HomeTeam cut the amount of time involved in the process, but it also lays the foundation for a better inspection.”

While the home inspection industry has continued to evolve over the years, HomeTeam has never wavered when it comes to elevating the home inspection experience through professionalism and technology—two areas the company has prided itself on from the beginning.

“We’ve put a lot of emphasis on professionalism,” says Long, who notes that when Spires started the company 25 years ago, the home inspectors wore ties to be seen as reputable resources to real estate agents and their clients.

Today, with the level of professionalism throughout the industry still fragmented, HomeTeam inspectors dress in HomeTeam-branded attire and arrive in a HomeTeam-branded vehicle. “While standards have changed over the years, HomeTeam understands the importance of professional dress and demeanor in earning a client’s trust,” says Long.

Setting a high level of expectation among today’s consumers, HomeTeam uses technology to streamline each and every component of the inspection process.

Online scheduling has been a critical part of this. Not only can inspections be booked in real-time, but the team approach also makes it easy to book inspections more quickly since the company can get more inspections on the calendar on any given day.

Real estate professionals can use a HomeTeam app on their smartphone to access any reports created in the past. “The app is very sophisticated,” says Rothenberg. “It even gives real estate professionals the ability to view open time slots and schedule an inspection with the click of a button.”

HomeTeam’s future is focused on continuing to integrate new technology as it continues to advance.

“The industry as a whole has improved in the area of technology over the last 25 years, but HomeTeam has always been ahead of the curve,” says Long. “When HomeTeam started out, we used a DOS-based software and reports were printed, bound …read more

From:: Real Estate News

By Susanne Dwyer

Homeownership is considered a challenging stepping stone on the path to the American Dream—a fact that is especially true for many millennial and minority consumers. The fifth annual America at Home survey by non-profit NeighborWorks America found that down payment confusion, credit score misinformation and student loan debt are the major obstacles standing in the way.

Down Payment
Many consumers aren’t aware of the various financing options available to homebuyers, or of the varying down payment requirements. On average, millennials believe the minimum down payment requirement is 21 percent, according to the survey; in reality, down payments can be as low as zero percent for VA loans, or can range from 3 to 5 percent for some Fannie Mae and Freddie Mac loans. The Federal Housing Administration (FHA) also provides loans with low down payment options.

There are various loans that cater to first-time buyers or those who don’t have a large sum of money to put down. The survey reports that 70 percent of adults don’t feel they have enough in savings for a down payment, but this may be attributed to a lack of mortgage industry knowledge. Seventy-three percent of people surveyed and 62 percent of millennial participants were unaware of down payment assistance programs for middle-income buyers.

Consumers should reach out to their local bank to find out if any loan options work for them. Making a few lifestyle changes is also a quick way to amass down payment funds.

Credit Score
The power of credit in the real estate industry is widely misunderstood among consumers. While the mortgage-qualifying rate is around the 620 range, homebuyers believe it is much higher. Twenty-one percent of non-white survey participants believe credit is their biggest home-buying challenge. The median FICO score is 700, and thus many consumers may be incorrectly assuming that their credit score is too low.

The only way to know for sure is to find out what their credit score is. Plenty of credit card companies provide free credit report monitoring, or consumers can look up their score on one of the three top credit reporting agencies: TransUnion, Experian or Equifax. If consumers’ credit is, in fact, too low for lenders, they can improve their score in a variety of ways.

Student Loan Debt
High monthly payments incurred from student loan debt are largely to blame for the millennial generation’s delayed entrance into home-buying. The survey reports that 26 percent of American adults and half of all millennials have student loan debt.

Not only is this debt making saving for a down payment impossible, but it can prevent buyers from being able to afford monthly mortgage payments—or, if they can afford them, living paycheck to paycheck can become a startling reality. NeighborWorks America reports that half of millennials are constantly worried about their student loans. While some programs can help deal with the debt, consumers may not be aware that the assistance exists. Seventy percent of the surveyed millennials did not know about these organizations.

View the entire NeighborWorks America report.

Source: …read more

From:: Real Estate News