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Op/Ed

Comparing real estate in 2006 to 2016 (make sure you’re up to speed)

The practice of real estate has changed dramatically in the last decade, but the fundamentals remain the same. Are you up to date?

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Ten years passes quickly! In 2006, the real estate market seemed to be steady if not booming. Cheery messages from brokers and NAR leaders were fast and furious. Agents just knew things would be fine and sales would come.

In the background, however, the horror of the housing and financial market crashes were taking shape. Within a few short years, the salad days of hefty retail housing sales, high commissions and move-up buyers were to be changed forever. Derivatives, extensive numbers of loans to buyers who, losing their jobs during the crash, could no longer afford the payments resulted in the bursting of the housing bubble and the wave of foreclosures during 2008 – 2012.

“Retail” real estate sales suffered as foreclosure valuations drove market pricing. Investors that had purchased many properties, leveraging each to purchase more, often lost their mortgaged properties as well.

And then we struggled even more

HUD, Fannie Mae and Freddie Mac as investors of the loans being foreclosed upon sold properties at prices that stunned neighbors and investors alike. New investors descended on areas, buying hordes of properties with cash, not mortgages, and renting them without much repair. After 2012, when foreclosures slowed and prices began climbing again, investors began to exit the market and some homes sat vacant.

Until 2014, the industry continued to struggle in many areas, yet some locales saw booming real estate prices and recovery. The shadow inventory of homes still ripe for foreclosure, underwater as their homes are worth less than current market value, still exists and foreclosures have ramped up again in 2016.

However, investors today are now doing a combination of buy/hold/rent and flip, making the homes more livable and revitalizing neighborhoods. New builds are slow to recover as builders find it difficult to build homes “on spec” and wait for them to sell.

Within ten years, much has changed, and not only in the type of buyer and the status of the housing market. We’ll review some changes here and how you can navigate more steadily the practice of real estate.

The MLS is ground zero

The MLS is undergoing massive change in its status as the guardian and repository of real estate data, and the primary way to let other agents know a property is on the market.
When the MLS was held in books – yes, actual paper books – agents would photo copy pages for buyers to see very minute detail (and minute photos) of houses for sale, or if a client was selling, of comparables. The electronic MLS came about prior to 2006, however some agents continued to photocopy printouts of listings for both scenarios.

Now the MLS is electronic, available (by subscription) to agents and brokers every day. However, the MLS is now not the only repository for home data on houses for sale, pending sale, or sold.

Zillow.com pulls MLS data from brokerages with whom they have agreement so the world can now see both active, pending (off market) and sold listings. The sold listings are simply noted as “off market” and carry the sold date and price. Now, consumers can check to see what has sold on their street or neighborhood and assess whether or not the Zestimate (an estimate of home value) is correct. The consumer can then decide to contact their agent, or an agent or broker advertising on the site. Agents pay for fractions of or whole zip codes to be listed as an agent (or broker) to contact regarding more information on a home, and the listing agent is also noted on the web page.

Rumors of a national MLS continue to rise.

And advertising has taken a wild turn

Advertising has completely changed, though some ad resources stay the same.

The MLS as noted above was once the primary method of advising other agents that a property had come on the market. Though some agents still use the 3P type of advertising (Put the home in the MLS to alert agents the home is available, Put a sign in the yard to alert the neighborhood and passersby the home is available, and Pray it sells), the digital age requires the agent promote the property using numerous methods and platforms.

Zillow.com negotiates with brokerages to carry their feed of properties available for sale. If the feed is not negotiated with the brokerage but an agent wants to place the home on the Zillow platform, it is considered “free” advertising. Other platforms also court brokerages to carry their listings.

Digital marketing can encompass email, landing web pages specific to the property address, advertising on Zillow and other platforms, advertising on Craigslist and more.
“Old-school” advertising does still work – whether it’s sending “just listed” postcards to neighborhood, sending handwritten notes as an introductory method to the brokerage and agent, sponsoring community activities, placing ads on restaurant placemats or on sports scoreboards and more.

Cold calling is taboo unless lists are scrubbed

Pulling a list of names from homes in the neighborhood was easy, and cold-calling homeowners to find people looking to buy or sell was scripted and productive. Then came the legislation against such activity by sales organizations – if someone’s telephone number was shown on a “do – not – call list” and was called by a salesperson looking to transact business, a hefty fine could be – and has been – assessed to the brokerage. This once relied-upon method of finding listings has nearly ceased in practice.

Sources exist where the lists of homeowners is “scrubbed” to remove numbers that show up on the Do Not Call list. The remaining homeowners may be contacted by phone without fear of the brokerage being fined.

The takeaway

A lot has changed in the last decade, but nothing so dramatic that can’t be adapted. Some of the mechanics have changed, and approaches have shifted, but the bottom line is that even as consumers evolve, the core practice of real estate still relies on diligence, negotiation, and expertise.

#HistoryLesson

Landis is involved in consulting for and sales of residential and commercial real estate. Landis is also working on obtaining her Ohio real estate broker license. College educated with a business, sales and performing arts background, Landis brings a well rounded world view to her real estate practice.

Op/Ed

Processing emotions during COVID-19: It may be grief you’re feeling

(EDITORIAL) During a global pandemic, there is a rollercoaster of emotions and these two things may help people process some of their feelings which may be grief.

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grief

Is part of what we have all been feeling these past couple of months grief? Some say yes, so let’s take a look at what we have been doing and feeling.

I don’t know about you but the first few weeks of March I went in to productive overdrive but not the self-care kind like making new recipes, starting new work outs or painting for creativity and fun. I was trying to complete my work priorities, side business client work and co-host free webinars (via Zoom of course and one even on Webinar Ninja) for my small business community and followers.

I also suddenly had to figure out to be productive while my husband was home and our toddler was with us with not much notice of her daycare being closed. The first two weeks felt hellacious – high anxiety, never feeling like I was doing enough or was present enough.

I woke up and got right to work in my t-shirt and yoga pants, some days forgetting if I had brushed my teeth or washed my face. Taking a shower felt like a luxury but also sometimes a nuisance to try to fit one in. That was strange. I saw my daughter as needing attention as something I had to sort out -also with a guilty feeling that I knew she should be priority but “if I could just get this last project wrapped up or email sent out” or “after I jump on this Zoom call”, I can then take a break and be with her.

Albeit the break was filled with anxious thoughts of how I had to get back to work. My husband was dealing with his own shift in work having many clients pause and see when/how he could work from home. He was grappling with all the general unknown as well as both of us wondering what did this mean for our finances.

This has been an absolute conflict of emotions:

  • Gratitude that we were able to be home – safe and healthy at least for now
  • Scared and grappling with feelings of uncertainty and anxiety
  • Blessed for having some income we could rely on
  • Sadness for having lost some income but not quite sure how much or for how long
  • Worry for others that have lost everything – their livelihoods, their day to days, their LIVES?!
  • Worry for our older parents that live far away and are immunocompromised (not sure we had ever used this word to refer to them) but also happiness that they seem to be doing okay
  • Excitement to have “extra time” with our daughter and dogs
  • Delight to not have to drive in our regular 1-hour each way commute leaving the house around 7:30am and getting home after 6:30pm

I was looking all over for silver linings but not understanding how people are so good at finding new ways to manage their time: organizing their pantries, working out at home, trying new and healthy recipes, painting new masterpieces, etc. It felt a little bit overwhelming that I wasn’t taking advantage of this quick shift in schedule. I also felt fatigued by all the articles telling us to be ok and don’t be an idiot about going out (like we were supposed to just know how to never leave home). I really just wanted permission to not be ok for a bit.

I read this HBS article about the feelings above of discomfort were actually considered grief. The article suggests that if we can just understand the stages of grief, and especially accept that they are not linear, then maybe we can figure out our own path forward. I saw it circulated among many of my friends and truthfully, found it to be the permission I needed to be ok with not being ok.

Keep trying. There is something powerful about naming this as grief. It helps us feel what’s inside of us. So many have told me in the past week, “I’m telling my coworkers I’m having a hard time,” or “I cried last night.” When you name it, you feel it and it moves through you. Emotions need motion. It’s important we acknowledge what we go through. One unfortunate byproduct of the self-help movement is we’re the first generation to have feelings about our feelings.”

This YouTube video was also shared with me about How do you help a grieving friend? and I think you will all also enjoy it and a quote in the beginning, “The human soul doesn’t want to be advised or fixed or saved. It simply wants to be witnessed, exactly as it is.” – Parker Palmer

So, the message I was looking for (to be ok with not being ok) has been found and now it’s up to me with how to move forward. I know that drinking cider and eating cake aren’t quite cutting it so I journaled this morning with ideas for me that would excite me about getting more exercise in my day (dancing, strength training, walking).

I admittedly haven’t started this new work out routine but by allowing myself some grace to grieve, I plan to get the momentum going. I hope you are also ok with wherever you are and slowly or surely adjusting what you need to keep your sanity.

How do you help a grieving friend?

(sharing this video? using it in a training! Great! Tag or email us and let us know, and be sure to give proper attribution.) It’s so hard to know what to do…

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Op/Ed

A guide on how to nail your next video presentation

(EDITORIAL) While the tools themselves tend to be user-friendly, preparing an online video presentation requires some extra steps you need to be aware of.

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video presentation

Pretty much everyone who can work from home is working from home now, to stop the spread of COVID-19. It’s a good thing, but may take some getting used to. The learning curve can be steep. Working from home means using new tools and expanding their tech experience to include video calls or a video presentation.

Fear of public speaking is already a common anxiety. Throw in being forced to use new technology to create a video presentation, and the challenge grows. Never fear, though, because just like with any other type of presentation, following best practices and consulting helpful tips will make your presentation go more smoothly.

First, as with any presentation, the twin pillars of success are preparation and practice. Over-prepare everything, from your research to your outline, notes, slides, speech, and–very crucial–your technology and your team. Here are several more video presentation tips we’ve rounded up to ease your pain.

Tech prep tips:

  • Familiarize yourself with your video conferencing tool before the presentation. Most companies will have a mandatory tool they use. Popular options are Zoom, Skype, or Google Hangouts, but there are other options, too, WebEx, Join.me, GoToMeeting, or Zoho Meetings.
  • Make sure your audience or team is familiar with the technology tools, too, by sending out download/log on steps in advance of the meeting. Send the instructions out twice if possible.
  • Keep the visual aspects clean and straightforward. No Death By Power Point, please. You can keep your speech and/or notes on your desk during the actual presentation, so avoid overloading your slides (if using slides at all). Participants will want some documented key points, but save the supporting details for the spoken aspect of the presentation.
  • In an ideal world, you’ll have some help, a team member to serve as a moderator, recording the presentation and taking charge of the participants’ options. The “Mute All” button, for example, is a presenter’s best friend.

Setting the scene:

  • Find a quiet room, one that will stay quiet throughout the presentation. Ideally, you’ll have a door that locks (with TVs, kids, partners, and pets on the other side).
  • Check the lighting before the actual presentation begins. Harsh overhead lights cast a ghoulish light, while sunlight or otherwise bright backlights make you difficult to see. Do a practice run with a friend or colleague to make sure your lighting works.
  • Choose a clean, simple backdrop and verify that nothing questionable shows up. While a bookshelf may serve as a nice backdrop, try not to have the Kama Sutra or Lady Chatterly’s Lover prominently displayed. The same rule goes for background art–if you wouldn’t put it up in your actual office, then it doesn’t belong in a work video.
  • Better yet, if you’re using Zoom, you can choose a custom backdrop to avoid any overlooked, embarrassing personal objects in the frame.

Presentation day checklist:

  • Practice! Whether you do this the day before or the day of, you need to practice your presentation. Some prefer the mirror, others a real, live, accommodating person, still others a sofa full of stuffed animals. Whatever works for you, make sure you practice. It matters.
  • Wear something you feel powerful in. If you feel you look professional, you will be that much more confident when presenting.
  • Lock that door if at all possible. If you can’t, make sure other household residents know you’re giving a presentation.
  • Close out all unnecessary browser windows. Emails popping up in the corner of your screen are super distracting, and you have zero control over their content. I once was in a training where the presenter hadn’t closed his email, and a coworker emailed him complaining about the clients–to whom he was presenting. The email popped up on the screen for a second or two before he could close it. Disaster!
  • I said it before, but am repeating this, because it’s important. Double check that the participants are muted. The background noise of several people logging in is excruciating and wastes time.
  • Begin the meeting with a quick overview of the agenda. Participants need to know when and how they can ask questions.
  • Start the meeting on time. After the agenda, dive into the goals of the presentation and then the body of the presentation itself. We have to assume the participants are grown up and professional enough to call in on time. If they miss a point or two, they will have to figure it out. Plus, starting punctually lets your audience know you are aware and respectful of their time.
  • Similarly, finish on time. If you cannot answer all the questions during the presentation, assure them you’ll answer them afterward.
  • Let participants know you’ll follow up and how. Tell them how to reach you with questions or additional information.
  • Follow up as promised!

Shifting gears from an office environment to a home office takes some adjusting. It can be tricky, as shown by Poor Jennifer and others. Adding video conference tools into the mix is not everyone’s cup of tea. However, with some preparation, practice, and consideration of the above tips, we can all ace our video presentations. Break a leg!

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Op/Ed

Governors fail renters miserably, a 90-day rent freeze is the only option now

Independent contractors whose only sin is renting instead of owning, are facing evictions even as Governors put tiny bandaids on the situation. A 90-day freeze is the nation’s only option to avoid mass migrations or spikes in homelessness.

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moving boxes rent freeze

New York Governor, Andrew Cuomo announced Friday the state would observe a 90-day moratorium on commercial and residential evictions to give residents and businesses a break after so many have been ordered to halt operations during the COVID-19 global pandemic.

Various states are debating moratoriums on mortgage payments, and for those that aren’t, banks are frequently tweeting that forbearance options are available and reminding property owners of the allure of current refinancing rates.

Several states are announcing similar moratoriums on evictions, but in some states it’s a ruse.

For example, Texas Governor Greg Abbott issued an emergency order to suspend all residential evictions (barring criminal activity) through April 19th. But what the press releases don’t include is this is business as usual. Not only can evictions still be filed for April rent, many counties in Texas accept filings and set court dates around the 19th already. The only relief this ruse of a suspension offers is people being evicted for failure to pay in March.

Other states are renter-friendly and a renter can be months late – in Texas, landlords can issue a 24-hour notice to vacate on the 4th and file for eviction on the 5th, get a hearing roughly two weeks later, and an immediate order for the renter to vacate the property. Many other states are also fast to evict like Texas.

One renter opined, “Yeah sure, once evicted in April, I’ll just take my zero thousand dollars and put a rent and pet deposit down on a new place, buy packing supplies, and then hire expensive movers to take me to my new imaginary home that doesn’t exist because you can’t rent ANYWHERE if you’ve been evicted here [in central Texas].”

Meanwhile, landlords, especially multi-family properties, are able to refinance their holdings at historically low interest rates or negotiate forbearance options on their loans. This is welcome good news for landlords that own one to four units and rely on rents as their primary income. If they can all hold off payments for 90 days, the hit isn’t as devastating, plus they don’t have to turn those units at a cost.

In the meantime, national relief efforts have stalled. Senators are battling over the stimulus package (Phase 3 has failed to pass as expected today) as their political war wages on. Americans hold out hope that three weeks after being announced, a few cash money dollars might still eventually make it their way.

If you’ve spent any time on Facebook or Twitter, you’ve probably seen petitions in your state demanding a rent freeze, and you might have rolled your eyes. At first, I did too, because I secretly love the beauty of capitalism and typically balk at government intervention into much of anything.

But take a moment to think about a 90-day rent freeze.

This isn’t about empathy, it’s about an imbalance in the marketplace where some are favored over others and our government is picking winners and losers. It’s about business and the shortsightedness of this situation, particularly the willingness to get rid of renters, carrying the cost of a makeready and marketing and staff to refill those units which will be wildly difficult with so many new evictions on peoples’ records.

We spoke to several multi-family property management companies in Texas, and universally there is no plan to suspend rents owed, waive late fees that keep accumulating, or halt evictions.

One landlord told us that for his two properties, he is asking people to pay rent as they can, but as most of his tenants are freelancers, he says it’s unlikely, but he’d “rather keep them in their homes and eventually collect rent, as opposed to coordinate a makeready in this environment, not to mention the fact that no one wants to move to a new place right now when they’re told to shelter in place.”

That takes us to today in politics. Let’s say the Senate passes the wildly expensive relief bill and businesses can make payroll, and families get some money. That’s great. But what about the millions of independent contractors in America? Freelancers, Realtors, stylists, and millions more didn’t lose a traditional job, they’re not on payroll and they don’t have staff on payroll (therefore don’t qualify for most disaster assistance) – many just lost everything with no promise of a future income, tossed into a situation they have no control over.

Many of these folks are renters. And they’re screwed. Why is multi-family the only sector of the economy protected right now? They’ll get funds to make payroll, they’ll be able to skip paying their loans for a few months, but there is not a consensus in the industry that they should extend that grace to option-less people they rent to.

Some will say that putting a 90-day halt on evictions helps, but at the end of June, those people owe 3 months worth of rent or they’ll be immediately evicted. Some believe putting off the inevitable at least keeps these people off the streets. Local news is outlining resources, including motel-vouchers for the newly evicted.

How condescending, insensitive, heartless, and insulting to American renters whose only sin was renting instead of owning.

Right now, President Trump appears to be in the mood to empower governors, so governors must step up and order 90-day suspension of all rent and accumulating rent fees – landlords can’t be the only exempt entities in the nation.

Multi-family property managers will eventually get funds to cover operations and along with landlords, most will be able to take advantage of refinance and/or forbearance options, and while some states have attempted eviction freezes, nothing short of a 90-day suspension of rent (including removing all potential predatory late fees and penalties), both residential and commercial, will help the millions in America who will still be facing eviction at the end of the existing moratoriums.

We MUST take action. Local petitions are floating around, so sign and share them.

But the most powerful thing you can do right now is to send this story to your local representative – you can enter your address here and get the names, Twitter accounts, and Facebook Pages of every politician that represents you down to the local level.

The only way renters (especially independent contractors) will be treated like the rest of the nation is for people like you to speak up – tweet this and tag every one of your representatives. Then do the same tomorrow. And the next day. And the next. And don’t stop until change has been made.

Otherwise, landlords will enjoy a mass migration of family evictees come May 1st, while politicians can scramble to address spikes in homeless populations nationwide.

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