How To Avoid An Offseason In Real Estate

How To Avoid An Offseason In Real Estate

Certain times of the year are more ideal for selling homes than others, and real estate agents may experience slower business in the off-season as a result. Agents who want to avoid off-season slumps can try certain tactics to keep their businesses going and maintain a strong clientele during times when people often aren’t as interested in buying or selling homes.

Increase a Property’s Curb Appeal

Much of the winter season is considered to be off-season in many real estate markets, and agents who want to attract more buyers should try to make each property that they list look as appealing as possible. Removing the snow, downed tree branches, and other debris that’s often prevalent in the winter from properties so that each home looks great in photographs can help draw in more buyers.

Minimize Holiday Decorations

The Christmas season is often one of the slowest times of year for selling homes. Homes for sale that are heavily adorned in holiday decorations may look tacky and less attractive in photographs and can detract potential buyers. Homes for sale that are open for prospective buyers to tour should also have minimal holiday decorations to give these abodes more year-round appeal.

Optimize Social Media

Real estate agents can use social media to their advantage in the off-season if they know how to get the algorithm to favor their social media accounts. One of the best ways to do this is by interacting more with potential clients through social media. Real estate agents can also like and share relevant content more on social media and use trending hashtags in many of their posts to maximize the algorithm. 

Work with Other Agents

Selling homes in the off-season can be easier if real estate agents are willing to work with other agents. Agents can try co-listing properties and splitting the commissions to try to generate faster sales. Bonuses and other incentives can also be offered to other real estate agents who are willing to work together to try to sell properties in the off-season.

Real estate agents shouldn’t have to suffer major financial setbacks in an off-season. By finding clever ways to keep business going during these slower times of the year, agents can continue to generate substantial profits while helping more clients.


The 5 Stages of Burnout

The 5 Stages of Burnout

Worker burnout is one of the most pressing labor force problems in America’s economy today. Approximately 76 percent of American workers report experiencing at least some degree of burnout, a number that has risen dramatically throughout the COVID-19 pandemic. Like many other mental health conditions, burnout presents in a series of recognizable stages. Here are the five stages of burnout everyone should be familiar with in order to identify and address it early on.

Stage 1: Honeymoon Phase

The honeymoon phase is a stage that actually precedes the onset of burnout. This is a stage at which a new task, job or challenge is enjoyable and fulfilling, even if it does involve some additional stress. If not handled properly, though, stresses that present themselves during the honeymoon phase can add up and begin the burnout process.

Stage 2: Stress Onset

As a worker proceeds out of the honeymoon phase, he or she will begin to experience more classic symptoms of mounting stress. The stress onset stage of burnout occurs when the initial surge of enjoyment and enthusiasm from the honeymoon phase wears off and the stresses associated with work continue to build. Anxiety, irritability and a general decline in both satisfaction and productivity usually begin to set in during this stage.

Stage 3: Chronic Stress

Unless stress is addressed in the second stage, workers quickly move on to the chronic stress stage of burnout. At this point, most of the enjoyment goes out of work and is replaced by frequent experience of stress. More severe symptoms of long-term stress, including physical sickness and drug or alcohol consumption, often begin to appear at this stage.

Stage 4: Burnout

At stage four, the classic symptoms of burnout set in as stress continues to increase. Decreased productivity feeds into the demands of the job, causing tasks to pile up and overwhelm the worker. Major behavioral changes and withdrawal from social life are also seen once a person reaches this stage. At this point, work-related stress becomes very frequent to almost constant.

Stage 5: Habitual Burnout

At the habitual burnout stage, a worker experiences essentially constant work stress that makes it impossible for him or her to function as usual. Burnout becomes standard, rather than occasional, and depression or other mental health issues may set in. Habitual burnout often requires professional treatment or major life changes to be made in order to return the person suffering from it to normal functionality.

Although these stages present in many cases of burnout, it’s important to understand that they won’t be identical for everyone. Because each situation is different, burnout can vary in both intensity and onset speed for each individual worker.

 

Worker burnout is one of the most pressing labor force problems in America’s economy today. Approximately 76 percent of American workers report experiencing at least some degree of burnout, a number that has risen dramatically throughout the COVID-19 pandemic. Like many other mental health conditions, burnout presents in a series of recognizable stages. Here are the five stages of burnout everyone should be familiar with in order to identify and address it early on.
How Can Real Estate Development Recover in 2022?

How Can Real Estate Development Recover in 2022?

The global pandemic changed the business world for nearly every industry. Many of the changes were unavoidable and unprofitable, but things look promising for 2022. Many experts are optimistic regarding commercial real estate development. Concerns exist, and all investors need to understand the possible challenges. To succeed, anyone involved in real estate development will need to remain flexible and adapt to the market.

 

Potential Market Complications

 

Real estate professionals do not expect any complications with the same negative impact seen in 2020 and 2021. COVID variants could continue to appear for many years. Health experts, however, do not believe any will cause the type of lockdowns previously experienced. Government agencies monitoring inflation risks will adjust as needed to keep the stock market as happy as possible. Price increases may influence some future development, but the improvements in the marketplace will prevent rises in oil prices and material costs from harming growth.

 

Expected Industry Boosts

 

Repairs to supply chain problems will ensure that products flow freely again. These repairs will prevent the past shortages of building materials and retail inventory that plagued all consumers over the last couple of years. An additional boost for real estate development is optimism. In 2021, new business license applications were up, and experts predict that in 2022 there could be an increase in applications of 28 percent over 2020.

 

Increases in Demand

 

The real estate development market could see a combined rush from different investors. Many businesses that thrived before the pandemic had to put their plans on hold, but 2022 offers the opportunity to return to previous expansions. Another possible effect is the endeavors of new entrepreneurs. Many business-minded individuals chose to find a new path after their jobs became obsolete during lockdowns. The options could make many real estate markets busy as buyers vie for all property types to meet their needs.

 

The last two years have been difficult for everyone. Optimism for what possibilities 2022 may hold has already boosted real estate value in many regions of the United States. Development has continued slowly and steadily over the last few months and is likely to increase substantially as the year unfolds.

How Does Winter Impact Real Estate?

How Does Winter Impact Real Estate?

Whether you’re an investor or a buyer/seller, knowing what moves the real estate market is key to maximizing gains and getting the best deal possible. One of the key factors that impact real estate value is seasonal changes. Buying or selling propery in wintertime can be a difference of night and day when trying to sell the same unit during summertime. Here are three ways on how cooler weather can affect the real estate market.

 

Slower Business

 

As with any financial market, the real estate market is dictated by supply and demand. There are seasons of the year wherein buyers outnumber sellers, during which time it becomes more challenging to purchase a property within your desired budget due to the bigger amount of bids coming in. Summer is typically the busiest season of the year, with people buying more aggressively than any other time of the year. Come wintertime, the demand subsides and so does the market prices. This makes it a great time to buy real estate but not so much to sell one.

 

Different Staging Process

 

Staging a home that you want to sell during wintertime will involve slightly different design elements than when you’re staging a home during summertime. For starters, you’ll want to crank the furnace or boiler up to keep the temperature indoors nice and cozy for home buyers who come in to check the property. Boosting curb appeal during wintertime can also be more challenging since there is less natural light in the day and less vibrant colors surrounding your property. You can boost your property’s curb appeal by adding tall grass and purple-colored cabbage plants for some background contrast.

 

Lower Realtor Costs

 

With a lower demand in housing, you have more wiggle room both as a buyer and a seller. Realtor costs, for instance, can be negotiated to reflect the seasonal freeze in demand for their services. Contractors may also offer lower pricing for their services to get more business in a time when demand for work is seasonally lower.

 

Regardless if you’re a buyer or a seller, patience is perhaps the most important value to succeed, especially in a market like real estate where seasonal changes impact valuation. Simply being patient and timing your purchase or sale can net you savings or profits of 5-10 percent easily.

Protecting your commercial real estate project in extreme weather

Protecting your commercial real estate project in extreme weather

Climate change on earth is very real as temperatures continue to rise higher to create extreme weather conditions. Therefore, it is necessary for real estate owners to ensure they have the right measures set in place to avoid any negative impact from upcoming extreme weather situations. Workers in the insurance industry are keeping a close watch on the changes in weather because certain weather conditions can increase the premiums on insurance plans or change the rules in different regions. There are some risks of climate change that cannot be insured, and in those cases the reinsurer’s approach is very important to primary insurers. Reinsurers will raise the rates for primary insurers as severe weather creates more loss, and then the primary insurers will raise the costs for those who buy insurance like tenants and property owners.

 

Climate change and severe weather has made it so that real estate investors must really understand the importance of surviving the risks of bad weather by creating a strategy that will decrease losses. Some companies have chosen holistic methods to protect themselves such as climate change related shareholder activism and the possibility of huge lawsuits. There could be less renters in demand for several reasons related to weather including bad storms and floods, heatwaves, wildfires, drought, and water stress. It is also possible for damage to nearby buildings and homes to make it so that tenants cannot access their own building and when this happens, real estate owners must deal with the risk of climate change and severe weather affecting their income even when their own building is protected from extreme weather issues.

 

Since climate change can pose such huge risks to financial systems all over the world the Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board. The TCFD makes sure climate-related financial information and risks are reported faster and with more information. These bad weather risks are just like any other financial risk and can be disclosed in a company’s profit and loss account. As long as real estate owners and managers understand that they cannot ignore climate risk and instead decide to assess the risk and opportunities with climate data, everyone in the real estate business will be able to build resilience from severe weather troubles and create much better outcomes.

                                                    

 

                               

Understanding Closing Costs on a Property

Understanding Closing Costs on a Property

Closing costs comprise a large chunk of what you might have to pay for as a borrower and property buyer. Failing to factor closing costs into your budget can have a detrimental impact towards your ability to keep up with your mortgage payments. Here is everything you need to know about closing costs.

 

What Is It?

 

Closing costs, as the name implies, refer to the costs that a borrower must pay when he/she finalizes the purchase of a property, be it residential or commercial. While these costs can add up to a considerable sum, both parties involved in the transaction shoulder a portion of the closing costs.

 

What Fees are Involved?

 

The seller pays a number of the fees that make up the closing costs of a property he/she is trying to sell. These include the real estate broker’s commissions, which can easily reach up to six percent of the property’s purchase price. Other expenses included in the closing costs are your application fees, legal representative’s fees, and any discount points that are useable. Taxes are also tacked into a property’s closing costs, which can sum up to about 15 percent of the agreed-upon purchase price.

 

What is a Title Search?

 

Another common cost category you’ll encounter when trying to close on a property is title search. A third-party company performs a comprehensive background check of the property to make sure there are no undisclosed heirs and unpaid claims on the property being sold. Home buyers are also expected to pay title insurance fees, which basically covers the policy holder of any costs associated with ownership issues.

 

How Do You Minimize Closing Costs?

 

One way to minimize your closing costs is to pay cash for the property. You can reduce your total costs by as much as 1 percent of the property’s purchase price. You also effectively eliminate fees, such as loan origination and appraisal charges. You can also cut your closing costs, as a buyer, by foregoing the services of a realtor. Instead, deal directly with the owner. While this means more due diligence required on your part in order to make sure the transaction is completed properly, it helps you avoid the hefty commissions paid out to a realtor.

 

Make sure you fully understand your exact closing costs before you even sign any paperwork or give a confirmation to the other party involved. You can find a number of free closing cost calculators online that can help you determine your estimates.