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Real Estate Brokerage

The impact of the pandemic on your homebuyer clients

(BROKERAGE) While the pandemic has impacted many changes, you can reassure your clients that the homebuyer housing market is doing surprisingly well.

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For sale house reflects homebuyer growth.

This year, a great many things have been impacted by the pandemic: Company closures, setbacks, etc. The one thing that may actually be surviving well is the housing market. A news release put out by Down Payment Resource stated that 81% of homeownership programs have funds available for the eligible homebuyer. This organization assesses the market around the country and reports on the conditions it finds.

While they have noticed a small drop in those available programs, most of those dips turned out to be temporary and focused at the city and county levels. However, at the state level, these programs have remained open and have not needed to pause business during the pandemic. This has been contributed to a great deal of uncertainty about the world’s condition. This uncertainty does not seem to have affected the homebuyer market, though. Housing finance agencies have reported that they are doing as much or more business than they were at this time last year. The report recorded that, starting this past August, less than 2% of the DPAs had temporarily paused their programs due to the pandemic.

When analyzing the forbearance trends this year, DPA is reporting that the small increase at the beginning was just caution from consumers. Since then, they have slowed down and reports from the summer are showing an increase for the 8th week straight. The only dissenting comments are coming from CoreLogic, who states that delinquency rates are starting to rise.

The HPI reports an increase in the share of down payment and closing cost assistance programs. Upon analysis, all the numbers appear in the majority. The down payment or closing cost assistants’ programs come in at 78%. The only decrease they have recorded is in the first-time mortgages and the programs for Mortgage Credit Certificates (MCCs).

Overall, things are looking up for the market, at least by the numbers. However, you’ll still probably be facing some concerns from your clients around the volatile nature of the pandemic. This changing world is a scary place, but optimism remains.

Robert Raney is a geoscientist whose been writing and painting for years to get his creative fix in. While working on his thesis in theoretical planetary physics he was also creating fantastical worlds on paper for fun. He's an at home Texan Houstonite who currently works slinging drinks at a local LGBTQ+ bar in the gayborhood, when not fielding oil & gas jobs that have taken him around the world.

Real Estate Brokerage

4 tasks your business should consider outsourcing

(REAL ESTATE BROKERAGE) As your business becomes busier and more successful, you may find outsourcing will streamline your workflow. Let’s talk what’s best to outsource.

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google ads and wordpress

As your business grows, it becomes impossible to continue doing everything in-house. At some point, you have to think about outsourcing. The question is, which tasks do you hand off in order to maximize efficiency and leverage better talent?

The Pros of Outsourcing

Outsourcing, which is basically the act of taking a job duty or responsibility and paying someone outside of your organization to handle it on your behalf, has become more popular and practical with the rise of the internet and various freelance marketplaces. The advantages of outsourcing include:

  • Cost savings. Outsourcing is a very cost-effective decision, regardless of whether you go with an offshore agency or a local freelancer. Offshore partners can cost as much as 60% less than a similar professional in the U.S. Onshore freelancers are more expensive than offshore options. Still, they’re cheaper than hiring an employee.
  • Time savings. If you hire an outsourced partner to do 20 hours of work per week, that’s 20 hours you’re saving your team. This allows you to reallocate time to focus on the internal tasks that matter most to your organization.
  • Better talent. When you hire full-time employees, your talent pool is often restricted by location and budget. When outsourcing, you have access to more talent than you’d be able to afford when hiring.
  • Leaner business. There’s something to be said for keeping a small team with low overhead and minimal fixed costs. By outsourcing, you’re able to keep your business lean and scalable.

Outsourcing has always been a useful option, but with the current state of remote work and online freelancing, it’s now a practical choice for both small and large businesses.

4 Tasks You Should Outsource

Not all tasks are created equal. But as you consider outsourcing more of your business, here are a few to consider:

1. PPC

PPC advertising can be a significant revenue driver for businesses. But if you don’t know what you’re doing, it can also be a waste of money. By outsourcing to a PPC marketing agency, you can maximize ad spend and get the best possible results. They’ll charge you a fee, obviously, but the ROI of outsourced PPC almost always overperforms the ROI of in-house PPC (when there’s limited internal experience).

2. SEO

Search engine optimization (SEO) is an important investment for any business. But much like PPC, it’s highly technical and requires some expertise in order to master. While you can certainly learn some of the basics, you’d be wise to outsource the overall strategy and execution to an experienced professional. (Just make sure you research your options and choose a partner that practices white hat SEO.)

3. Accounting

Is there any task more universally boring than accounting? And yet, at the same time, it’s arguably one of the most important tasks a business owner has on their plate. (If you screw up accounting, you could sink your business in a major hole.) Outsourcing to an accountant or CPA is a great option.

“Having had my own business for 12+ years now, I can say without hesitation that the one area I immediately outsourced was taxes! I’ve never regretted hiring a professional to take care of this tedious – yet vital – task,” entrepreneur Michelle Garret writes. “My accountant saves my money and provides peace of mind, which is priceless.”

The good news is that you can get an outsourced accounting partner fairly inexpensively. Whether you want them to do all of your daily bookkeeping or just your taxes, you should be able to find a good option.

4. Graphic Design

Graphic design is one of those tasks where there’s a huge gap between basic skills and advanced skills. In other words, anyone can learn how to use some basic graphic design tools, but it takes a seasoned and creative professional to truly master the craft. By outsourcing, you can save yourself thousands of hours of learning and advance straight to expert-level output.

Maximize Your Internal Resources

At the end of the day, outsourcing allows you to maximize your resources and do more with less. And while you shouldn’t delegate core business tasks, handing off things like copywriting, PPC, SEO, accounting, and graphic design can free you up to focus on the projects and investments that matter most.

Give it a try and see what it does for you.

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Real Estate Brokerage

Are we seeing the end of the Great American Commercial Office Building?

(REAL ESTATE BROKERAGE) Dell is the latest to join a trending game of commercial real estate hot potato by selling off 35 acres of prime real estate in Round Rock to Switch.

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Tall glass windowed office buildings, a part of commercial real estate

This story first appeared here June 03, 2021

With people and companies realizing how viable remote work is across several industries, companies are re-evaluating the role of the in-office worker. Many large companies, including Dell Technologies, are starting to ditch their expensive investments, those big, shiny office buildings and, in some cases, even office compounds.

The American Genius learned from a Dell source that they’re lightening their commercial real estate load by selling off approximately 35-acres of their Dell Round Rock campus to Switch, who will build a 1.5 million sq. ft. building called “The Rock.” Additionally, they are leasing the third floor in another building to the Army Futures Command (AFC) for their Resource Operations Center. Dell seems to be making out well in these transactions, reducing their real estate holdings and repurposing the other space by leasing it.

Are these once-bustling business centers going the way of abandoned shopping malls and all those condos in Miami? Not exactly, but we are seeing a trend for businesses to rethink the space they need and what they should sell (or lease). “‘Remote work is really going to stay here,’ says Frank Steemers, senior economist for the Conference Board, in USA Today. “It’s probably going to be one of the main organizational legacies of the pandemic.’” It seems unlikely, although it’s unclear what this means for commercial real estate.

Dell did well, as the market in Austin is still healthy and is expected to stay that was. Other cities may not be faring as well. While some people want to go back to their offices for various reasons, few actually want to return to full-time cubicle or office life. Employers are making these decisions to move more employees to full time working from home status and to expand the job candidate pool by hiring more remote workers.

REI sold their brand new headquarters in Bellevue, Washington to Facebook in August 2020, before ever having moved in. They had to deal with layoffs last year, plus their office employees have been working remotely already. For months at the start of the pandemic, we saw businesses holding onto their real estate, expecting a return to business as usual sooner rather than later. When that didn’t happen, companies opted to make more permanent arrangements for remote workers. Selling off their office spaces means less overhead for the businesses with fewer day-to-day expenses.

Things started shifting when the tech giant Google said it would consider allowing employees to keep working from home until well into summer 2022, and predicted a hybrid work model in the future. Facebook and Twitter have indicated something similar, and regional offices of Ford (Michigan), Target (Minnesota), and Salesforce in California have all indicated they will be “giving up significant office space because of their changing workplace practices,” according to the NY Times in a recent article on the trend.

Businesses are off-loading their commercial real estate holdings, because with offices at half-capacity or less in many of these massive compounds, it doesn’t make sense to hold onto the properties. The basic cost of running and operating these behemoths, not to mention the abandoned meditation rooms and ping pong tables, doesn’t make too much sense now. It’s just paying for wasted space. It will be interesting to keep an eye on this trend as some workers return to their offices.

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Real Estate Brokerage

How to get to the truth when a client or fellow agent is lying

(BUSINESS NEWS) When a client or even an agent on the other side of the deal is lying, here is how to pull the truth out of them.

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Trust is important when it comes to running your business. So what should you do if you suspect that one of your team members, or even a client might be lying to you?

Shining a blinding light in their eyes and pounding on the table to demand answers may work on TV, but it’s not very effective for real people, says retired Green Beret Sergeant Major Karl Erickson.

Erickson, who perfected the art of identifying fibbers and extracting truths while in the military, and by studying interrogation techniques with John E. Reid & Associates, recently shared his insight.

First step – establish truthful behavior.

He notes that it is harder than people think to tell if someone is lying based on their body language alone. Sure, liars may have shifty eyes and jiggling knees, but so do honest people who are just nervous.

He suggests starting off by asking innocuous questions about things that the person will likely be truthful about. You could even use Facebook to find out more about the person, so that you can ask them innocent questions about their family or their latest vacation.

That way, you can establish an idea of the person’s general behavior.

If they break a sweat and bite their nails while telling the truth, then you’ll know that these habits aren’t necessarily associated with lying.

If you start by asking questions they won’t lie about, then slowly turn up the heat, you’ll be more likely to notice if they start behaving differently when you get to the juicy stuff.

Ask a question in various ways.

Erickson also recommends asking the same question at least three different ways. A liar won’t likely mess up their story, even when asked repeatedly.

However, they may reveal “carefully repeated phrases” and an “overly deliberate choice of words” that suggest that they’ve rehearsed their answers.

Don’t try to intimidate.

Being friendly and compassionate works better than intimidation. Erickson says that he’ll tell someone, “if I was in your shoes, I’d probably have done the same thing.”

Soften them up, and they’ll be more likely to confess.

Tell a version of the story.

Lastly, Erickson suggests telling the version of the story that you imagine could have happened.

The more you elaborate and exaggerate, the more likely the person will interrupt you to correct your assumptions, resulting in at least a partial confession.

Good luck! You deserve to know the truth.

This story was first published here in September of 2016.

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