In a recent episode of the Real Estate Insiders Podcast, hosted by James Dwiggins and Keith Robinson they were joined by special guest Mike Simonsen, President, and Founder of Atlos Research. Together they shared some game-changing wisdom that’s sure to elevate your real estate game.
Before diving into strategies for unlocking equity and boosting home value, it’s essential to grasp the current state of the real estate industry. Mike Simonsen’s insights shed light on some critical aspects:
The Ever-changing Real Estate Market
In the real estate industry, change is the only constant. Mike points out that life changes, demographics shift, and market conditions evolve. For instance, millennials are in their peak home-buying years, and baby boomers will eventually sell their homes. Understanding these long-term demographic trends is crucial for real estate agents.
Addressing Housing Shortages
Mike notes that we’ve been underbuilding homes for over a decade, leading to housing shortages in various areas. However, he suggests that this trend is slowly changing, and there may be opportunities for agents in areas where inventory is catching up with demand.
The Impact of Mortgage Rates
Mortgage rates play a significant role in the real estate market. When rates are low, it can incentivize homeownership and real estate investing. However, as rates rise, it might affect the affordability of properties and investment decisions.
Unlocking Equity and Boosting Home Value
Now that we have a better understanding of the real estate landscape let’s delve into strategies for unlocking equity and increasing the value of properties:
- Strategic Property Tax Reform: One intriguing concept discussed by Mike is the idea of property tax reform. In California, Prop 13 has limited property tax increases for long-term homeowners. While this policy was initially intended to provide stability, it has led to disparities in property taxes between long-term and newer homeowners. Simonsen suggests exploring alternatives, like a land value tax, to address these inequities.
- Being the Market Expert: Real estate agents can enhance their value by becoming market experts. Whether it’s through blogs, podcasts, or other educational resources, offering clients data-driven insights on local market conditions, such as inventory levels and pricing trends, can set you apart from the competition.
- The Three Essential Real Estate Questions: Remember that clients often have three fundamental questions: “What’s for sale?”, “How much is my home worth?”, and “How’s the market?”. While you may not have all the answers, providing information on market conditions can be highly valuable to clients.
- Staying Informed About Local Factors: Beyond market data, consider educating your clients about local economic factors, crime rates, and other elements that can influence their decisions. This broader knowledge can help them make more informed choices when buying or selling a home.
- Keep an Eye on Equity: As a real estate agent, you should be knowledgeable about factors that can impact home equity. This includes understanding how factors like property taxes, financing options, and market conditions can affect your clients’ long-term equity growth.
By staying informed about the current real estate landscape, exploring property tax reform, becoming a market expert, and understanding the essential questions clients have, you can elevate your real estate game and provide exceptional value to those you serve.
Remember, in the ever-changing world of real estate, knowledge is power. Stay informed, be a source of expertise, and watch your real estate business thrive.
