Gen Xers are independent. They want autonomy and flexible hours. So why aren’t they flocking to real estate?

Future of industry may depend on giving younger agents the ability to build their own companies -

by: Renwick Congdon |Contributor

Editor’s note: In a recent four-part series, Imprev Inc. CEO Renwick Congdon shared his vision how real estate brokerages could change the way firms recruit and retain talent by employing a business model in which brokers would invest in their agents. In this guest piece, Congdon offers advice on recruiting younger agents.

In the last 15 years, the number of Realtors in their 40s has dropped by a third. So it’s no surprise that “recruiting younger talent” is the No. 1 business concern expressed by top real estate executives in the latest Imprev Thought Leader Survey for the second year in a row.

In digging deeper, what we found is alarming: Some 77 million baby boomers will retire within the next 15 years, but only 44 million Gen Xers — the next-younger population group in their 30s and 40s — are available to take their place. The competition from other industries for this group is already beginning to gut the industry.

The good news: The real estate business can offer this generation exactly what they are looking for. However, to do this we’ll need to develop new, creative structures and business models that will attract them to our industry.

Here’s what the research says:

By a 2-to-1 margin, members of Gen X would rather own their own companies than be senior executives in large firms: Commissioned salesperson doesn’t even register. In fact, today 1 in 5 small-business owners in the United States are in their 30s and 40s, and the business start-up rate for Gen Xers is three times that of older age groups.

The potential fit between what Gen Xers want and what real estate offers is uncanny: Research shows they’re highly adaptable, independent, productive and motivated to produce high-quality results. They want autonomy, thrive on instant gratification and covet recognition. They’re looking for flexible hours, see themselves as a marketable commodity, and are technically competent, having grown up with technology. Wow!

Give it to them

We need to give them what they are asking for: the ability to build their own companies. By providing a structure that allows them to grow complex businesses inside brokerages, we can attract this new generation. But to get there we need to make fundamental changes, not just put lipstick on it.

What do I mean by this? One example: It has become very common to refer to agents as “entrepreneurs.” Since agents are independent contractors, “run” their own businesses, and the term “salesperson” has become unpopular, we call them entrepreneurs.

Entrepreneur comes from the Old French word “entreprendre” when one is “willing to take on more in an activity that involves many people and is often difficult.”

A modern definition: “A person who organizes and operates a complex business or businesses — hire and manage employees, make payroll, etc. — taking on greater-than-normal financial risks, and is willing to risk loss in order to make money.”

It’s that last part that differentiates a true business entrepreneur. It’s why the old model of a commission salesperson — no matter what it is called — has not attracted enough Gen Xers.

Providing a structure that offers the ability to build a company within your brokerage will attract today’s entrepreneurs — young-ish, let-me-run-the-show types who already may have kicked up a small success storm in another field entirely — they know how to build a business and want to own something.

The risk is imminent

The real estate business is aging out; that should have been our first clue. Tens of thousands of experienced, reliable producers are approaching their retirement.

If we don’t fix our industry’s problem ourselves, someone from outside real estate is likely to snatch this opportunity away from us. We already gave lead gen away and now spend hundreds of millions of dollars buying those leads back (another topic worth discussing).

Love it or hate it

The folks who read my guest columns and sat in on this summer’s Connect session discussing the broker as investor ended up in two camps: Either they loved it or hated it. But both camps were talking about it, and that’s a start.

I want to be clear: The goal here isn’t to force anyone to take sides; it is to foster positive change. I am not advocating a one-size-fixes-all model, LLC or otherwise. It’s about real estate executives having a real dialogue — talking to each other — to find ways we can CHANGE what we’re doing now to attract talent as an industry and avoid the consequences if we don’t.

Let’s get creative and take the kind of action that’s necessary to compete for the next generation.

- See more at: http://www.inman.com/2013/11/07/gen-xers-are-independent-and-want-autonomy-and-flexible-hours-so-why-arent-they-flocking-to-real-estate/#sthash.SUW7nnfA.dpuf

Using Internet Marketing To Sell Homes

Did you know that over 80% of all home buyers begin their search on the internet?  The first thing they do, even before calling a realtor for the first time, is to browse available homes on the internet.  That's why it's so important to make sure you give your internet marketing as much attention as you do preparing your home to put on the market.

1.Begin by looking at a realtors website.  This will give you a good idea about the quality and effectiveness of their internet marketing.  Do you see a user friendly website?  Are the pictures of top quality? etc.

2.Every real estate agency should have a website; however, your realtor should also have their own website.  Again, this will be a good indicator of how internet savvy your agent is.

3.MLS is a common tool realtors use to sell homes.  But you want to look for a realtor that uses MLS with IDX.  The IDX means internet data exchange and this is the process in which a real estate site gathers information from MLS in order to display it on their website.

4.Listing syndication is another important facet of the internet marketing for your home.  When a realtor submits a listing to MLS it's also syndicated on Realtor.com.  However, a good real estate agent will not stop there.  He should take the extra time to syndicate your listing on as many other sites as possible.  Such as Trulia.com and Yahoo Real Estate, etc.  To see if an agent routinely takes the time to syndicate their listings, go to one of the bigger sites (other than Realtor.com) and search for the agent by agency or by name and see if they come up.

5.High quality pictures for all your listings is another crucial factor in internet marketing.  It's in your best interest to hire a real estate photographer to take the pictures of your home.  A professional photographer knows how to take the pictures that will put your home in the best possible light  and from the best possible angles.

It's extremely important that you find a realtor who is current on their internet marketing skills and one who will take the extra time needed to sell your home quickly and for top dollar.

When interviewing a realtor ask them if their site is SEO optimized and if they use MLS with IDX and if they look at you like they don't know what you are talking about, then you should probably find another realtor that has a little more experience and knowledge in the real estate field

Understanding The Foreclosure Process Timeline

No one likes the thought of facing foreclosure.  However, sometimes there are circumstances that are beyond our control.  Job loss, divorce, illness or any number of other issues which could occur without warning.  The end result being a time when the borrower fails to pay their mortgage on time or perhaps not at all.

The words mortgage foreclosure will send chills down the spine of most people.  There are many different foreclosure laws and the foreclosure process varies from state to state.  Therefore, we are going to take a few minutes to go over the foreclosure process with you in an effort to help you better understand the foreclosure process timeline.

Pre-Foreclosure.  The first stage in the foreclosure process.
Many people think if their home has gotten to the pre-foreclosure stage, there is nothing they can do to save it.  However, nothing could be further from the truth.   If you take some time to educate yourself about the foreclosure process, before your home actually goes into foreclosure, you could prevent it from happening at all.

The first step is the receipt of the missed payment notice.  This notice will state that you need to make your payment, including late fees, in order to avoid any further action.  If you don't make your payment, the mortgage company will take the next step.

The mortgage company will then send you a notice of default.  This notice is sent if your payment is more than 30 days late.  If you still don't pay the balance due on your mortgage, the bank will then proceed to the next step.

Foreclosure.  The second stage in the foreclosure process.

The next step is when you receive the actual foreclosure notice.  This letter is notifying you that the bank has begun the formal foreclosure proceedings.  Your home will then be scheduled for sale at an auction.
 
Auction.  The third stage in the foreclosure process.

If your loan has not been paid and reinstated within the pre-foreclosure timeframe, your home will be put up for auction.   An auction will allow potential buyers to bid on your home.   The auction price for your home will start at what you owe and bidders can submit their offers  from there.  At the end of the auction, your home will go to the highest bidder.  If your home doesn't sell at the auction, the lender will then take ownership of the property.

Bank-Owned.  

Now the bank owns your home.  They will clear the title and make any repairs that are absolutely necessary.   The mortgage company will then attempt to sell the property in an effort to recover any unpaid balances.

Foreclosure process timeline.

There was a time when the foreclosure process timeline was pretty similar in most states.  However, with the housing market being so unstable,  now the foreclosure process varies greatly from state to state.  Therefore, it is nearly impossible to predict how long it will take for your home to go through each stage; from the pre-foreclosure through to the auction date.
Options that will help you avoid a possible foreclosure.

The first thing you need to remember is to stay calm.  You do have options.  It's easy to panic when the thought of foreclosure is looming over you.  However, there are some things you can do to get yourself back on track.

• Try to borrow some money to get your payments up to date.
• Take a look around your house.  Sell anything and everything you can to raise enough money to make your payments.
• Talk to your mortgage company about a forbearance plan.
• Check to see if your lender has any mortgage modification programs that will lower your monthly mortgage payments.
• Consider refinancing your home with a new loan.
• Talk to your local real estate agent about selling your home.  You can then take the equity from your home and purchase another one that is more affordable.
• Some investors will buy your home then lease it back to you under their lease to own option plan.  Just remember to check with your attorney before entering into any investor lease to own programs.
• If you file for bankruptcy, it could allow you to consolidate your debt and pay it off over a set number of years.
• Talk to your mortgage company about a deed in lieu of foreclosure.  

Understanding the mortgage foreclosure process is a crucial part of controlling the outcome.  You need to educate yourself about the foreclosure timeline.  If you want to take command of the situation and avoid a foreclosure altogether, it would behoove you  to learn the different options that are available to you.

Find a real estate agent in your local area that specializes in foreclosures.  Your realtor will be your best defense in getting through this process with the best possible outcome.  So take advantage of their knowledge and years of experience to get you through these trying times.

America's Most Expensive Zip Codes In 2013: The Complete List

|Our very own Rolling Hills made it to No. 16, and we are not the least surprised. With the average home price of $3,784,500, with a 165 average days on market, much lower than most of the cities on the list. And the most expensive home in RH coming out to $53,000,000 |

by Forbes 

FORBES’ annual list of America’s Most Expensive Zip Codes is compiled with the help of Altos Research, a Mountain View, Calif.-based real-time real estate data firm.

For this ranking, Altos calculated the median home prices of more than 22,000 U.S. ZIP codes, based off of listing data for single family houses and condos. Prices were weighted according to the mix of local property types. We did not include co-ops (which may have pushed some of the fancier ZIP codes near Central Park in Manhattan lower on our list).

We also limited the search to ZIP codes where 10 or more residences were listed for sale, including short sales and bank-owned foreclosures on the market. Homes bundled into REO bulk sales were excluded.

To smooth out any wrinkles caused by a week’s unusual activity (like, say, an expensive home coming to market in an area where luxury properties are rare), Altos used a rolling average for the 90-day period.

Since our list is based on asking prices rather than closed sales or tax assessments, it may not be completely representative of the communities featured — for example, neighborhoods that have become swanky in the past few decades could contain pockets of longtime residents in more modest homes. Rather, our list is a snapshot of each market’s current housing activity.

“This is a view of everything actively for sale in these markets,” says Michael Simonsen, chief executive of Altos Research. “It’s the experience you’ll have if you want to buy — or sell — a home today in any of them.”

to see the rest of the list click here... 

http://www.forbes.com/sites/morganbrennan/2013/10/16/the-complete-list-americas-most-expensive-zip-codes-in-2013/

Freddie Mac: Mortgage rates level off, 30-year loan averages 4.23%

Home building in Rancho Santa Fe, Calif., above. Mortgage rates leveled off this week amid the government shutdown, with Freddie Mac saying the 30-year fixed loan averaged 4.23%. (Sam Hodgson / Bloomberg)

By E. Scott Reckard

Mortgage interest rates have leveled off at their lowest levels since June, with 30-year fixed-rate loans averaging 4.23%, statistically unchanged from 4.22% last week, according to Freddie Mac's weekly survey.

The home finance giant's widely watched poll of what lenders are offering to solid borrowers showed the average rate for a 15-year fixed mortgage rising from 3.29% to 3.31%, also small enough to make no statistical difference.

Freddie Mac pegged the 30-year average at 3.35% in early May. It shot up to 4.58% in August on widespread belief the Federal Reserve would taper off its efforts to keep interest rates low, then fell again when the Fed decided in September that the economy wasn't strong enough for it to do so. 

Borrowers would have paid lenders an average of 0.7% of the loan amount in fees and discount points to obtain the rate, according to the latest report, issued Thursday morning. Appraisal costs and other third-party charges that borrowers often pay are not figured into the survey. 

Automated loan-processing systems at Freddie Mac, Fannie Mae and the Federal Housing Administration were functioning despite the government shutdown, according to the Mortgage Bankers Assn. and other experts.

That allowed near-normal home lending to continue, with the exception of rural development loans guaranteed by the U.S. Department of Agriculture, where the loan-processing system is shut down.

Laguna Niguel mortgage broker Jeff Lazerson, who supplies borrowers with home loans from 10 lenders, said early this week that “not one loan has been held up yet” as a result of the federal furloughs.

L.A. County is among least affordable housing markets

A median-income household in Los Angeles County can afford only 24% of the homes currently for sale, a Trulia study says.

By Andrew Khouri |LA Times

Looking for the American dream in Los Angeles?

Good luck with that.

A household earning the county's median income — $53,001 annually in 2012— can only afford a home worth about $271,000, a price point better suited to the Midwest than the West Coast. That means a typical buyer can afford only 24% of the homes currently for sale, according to a study released Thursday by Trulia, the real estate information company.

Los Angeles County is the nation's third-most-expensive housing market by this measure — behind only San Francisco and Orange County. The New York City metro region ranked fourth. Last year, a household earning the L.A. County median could afford 39% of homes for sale.

"The housing recovery has benefited some people more than others," said Trulia chief economist Jed Kolko. "A lot of the income gains in recent years have gone to the top percentage of households."

The house-hunting odyssey has gotten much tougher over the last year, as the median home price in the six-county Southland has shot up 24.6%, to $385,000 in August, far outpacing growth in incomes. The Los Angeles County median has risen 28.1% to $429,000.

For many, the search is maddening.

Earlier this year, Chris Benner searched online for a house priced between $275,000 and $375,000, looking from the San Fernando Valley south to San Pedro.

"We came up with less than 10 matches that we would even think of looking at," the 42-year-old freelance associate producer said.

In April, he and his wife purchased a four-bedroom fixer-upper in Athens, an unincorporated area east of Hawthorne, for $297,000. The Benners make far more than the median household income — about $95,000 last year between them, Chris said — but it's still tough.

"We don't save a penny," he said. "For people only on one income — $50,000 or $60,000 — I don't see how they can possibly do it."

Chad Sells agrees. The 31-year-old would like to move out of his two-bedroom Pomona apartment and purchase a house — a steadier environment for his 6-year-old son. But the single parent sees no way into the housing market on his $53,000 income as an information technology specialist.

"It just seems impossible," he said.

The Trulia analysis assumes buyers get a 30-year fixed mortgage at a rate of 4.5% and put down 20%. The analysis also includes property tax and insurance. Housing is deemed affordable if it costs less than 31% of the median household income.

Many middle-class families simply pay more than that, money that could have been spent elsewhere, stimulating the economy.

"A lot of people spend 40% on their housing" in Southern California, said Richard Green, director of USC's Lusk Center for Real Estate.

uying an affordable home can come with wrenching trade-offs — renovations, poor schools, long commutes and sometimes more crime. Benner sends his 7-year-old son to a public school in Culver City, where the district allows transfers for parents who work there.

The definition of an affordable "middle class" home varies across the region, according to the Trulia analysis, which matches median incomes in individual counties or metropolitan areas with home listings on its site in the same area.

In working-class Watts, $280,000 will get you a three-bedroom house on Zamora Avenue. The home — built in 1944 — is 1,469 square feet, according to a Trulia listing. Photos with the advertisement show bars on the windows.

In Lancaster — with its desert climate and long commute to most employment centers — the same price would buy a six-bedroom house on Amethyst Street with vaulted ceilings built in 2004.

Many areas appear almost completely off-limits to median-income buyers.

In the South Bay and Westside, just 16% of homes currently for sale are within reach. In Pasadena and the San Gabriel Valley, just 12% of homes qualify as affordable by Trulia's standards.

The central part of the city of L.A., by comparison, has much more affordable housing — and yet still only 30% of for-sale homes meet the affordability standard.

Kevin Portnall, a 53-year-old grocery store cashier from San Pedro, doesn't see homeownership in his and his wife's future.

"I have pretty much given up," said Portnall, who makes roughly $50,000 a year. "There is just no hope."

In Orange County, the situation is worse. The median income is higher, but affordable housing is even more scarce.

A household earning the median, $71,983, could afford only 23% of the houses on the market this month, according to Trulia. Those looking for an affordable house will have better luck in the northern part of the county.

Home price gains ease in most large U.S. markets

Sixteen metro areas' month-over-month home price increases slowed in August compared with July, according to the Standard & Poor's/Case-Shiller index.

A leading index of U.S. home prices in August rose 1.3% from July and 12.8% from August 2012. Above, a home for sale in Walpole, Mass., in September. (Steven Senne, AP / September 18, 2013)

By Andrew Khouri |LA Times

October 29, 2013, 6:40 p.m.

Home prices in the nation's largest metro areas jumped sharply in August, but the rate of increases is slowing, according to a leading gauge.

The Standard & Poor's/Case-Shiller index of home prices in 20 large U.S. metros rose 1.3% from July and 12.8% from August 2012, beating the expectations of analysts who predicted weaker price gains. Prices haven't risen so fast on a year-over-year basis since February 2006.

Even so, the rapid price increases that characterized many major markets this year appear to be easing. Sixteen cities saw month-over-month increases slow in August compared with July. Case-Shiller's national 20-city index shows month-over-month gains during this recovery peaking in April.

"The housing market came into the year very strongly," said Mark Zandi, chief economist at Moody's Analytics. "It's ending the year more meekly."

The housing recovery kicked into overdrive this year as families and investors jumped into the market, convinced the bottom had passed. Prices shot up quickly as buyers battled over a shortage of homes for sale, raising concerns that a bubble could form in some hot markets, such as Las Vegas and Los Angeles.

But the supply of homes has expanded and some buyers have stopped home shopping, frustrated or priced out by rising values. Investors who once saw bargains everywhere have pulled back, just as more owners have listed their homes, hoping to cash in on higher prices.

The Case-Shiller index, created by economists Karl E. Case and Robert J. Shiller, is widely considered the most reliable read on home values. The housing index compares the latest sales of detached houses with previous sales and accounts for factors such as remodeling.

Las Vegas had the largest annual increase in August, at 29.2%, in large part because investors have gobbled up homes there to rent or flip. In San Francisco, prices jumped 25.4%; in Los Angeles, 21.7%; in San Diego, 21.5%.

"Although more homes are for sale, inventory hasn't expanded enough to bring home-price gains back down to anywhere near normal pace," Trulia chief economist Jed Kolko tweeted after the data were released Tuesday.

All 20 metros saw prices climb in August compared with July, but most rose at a slower pace. In the Los Angeles metro area, which includes Orange County, prices increased 2% in August, compared with 2.1% in July and 2.3% in June.

The Case-Shiller index, however, tends to trail other market indicators. The index covers three months of data, so August's figure reflects purchases in June and July, as well as August.

More recent data have shown a sharper cooling.

Americans signed fewer contracts for previously owned homes in September than in any month since December, the National Assn. of Realtors said Monday. New home sales have also been weak, although September data have yet to be released because of the partial government shutdown. In Southern California, the median home price stayed essentially flat for the third straight month in September, according to research firm DataQuick.

"The buyers have slowed down," said real estate agent Maxine Golden, who specializes in Newport Beach and Irvine.

In the spring, bidding wars became so fierce that homes often sold for far beyond the asking price. Now, Golden said, there are often price reductions.

The housing market usually cools in the fall and winter as many families opt against making a move with their children back in school and the holidays approaching. But most experts say larger market forces — such as higher home prices, coupled with meager income growth — have also hurt demand. In addition, mortgage rates have risen sharply since May, though they have eased recently.

Tight access to credit and higher flood insurance rates have also made buying harder for some home shoppers, said IHS Global Insight economists Stephanie Karol and Patrick Newport. But the economists said housing prices would continue to rise despite those factors and declining affordability.

"We expect home prices to decelerate, but solid growth should continue into next year," they wrote in an emailed analysis.

The real question, Zandi said, is whether first-time home buyers will step into the market as investors pull away.

"That is a key to a continuing housing recovery," Zandi said.

andrew.khouri@latimes.com