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Understanding the Recent Realtor Lawsuit Settlement

Posted on March 17, 2024 by Real Estate Like a Boss Leave a comment

The recent settlement reached by the National Association of Realtors (NAR) in response to a series of lawsuits is poised to bring significant changes to the real estate industry, impacting both buyers and sellers. This landmark agreement, which involves a payout of $418 million over four years, aims to revolutionize the traditional commission structure and empower consumers with more control over agent compensation.

Overview of the Settlement

The NAR settlement addresses the issue of who should pay commissions when a home is sold, shifting the responsibility from the seller to both parties involved in the transaction. This change will allow buyers and sellers more flexibility in deciding how commissions are handled, potentially leading to the disappearance of the standard 6% real estate commission. The agreement, set to take effect in mid-July pending approval, will introduce new rules that enable sellers to choose whether or not to pay a buyer’s agent commission, giving them the freedom to negotiate the amount and type of compensation offered.

Impact on Buyers and Sellers

For homebuyers and sellers, this settlement signifies a shift in how agent compensation is managed. Buyers may now have to pay their agent’s commission directly, prompting them to factor in these costs when making offers on properties. Sellers, on the other hand, will have more control over how much they pay in commissions, potentially leading to cost savings during real estate transactions. The removal of regulatory barriers that previously influenced commission structures is expected to benefit consumers by offering more competitive pricing for agent services.

Industry Transformation

The settlement not only addresses immediate concerns related to agent compensation but also sets the stage for broader changes within the real estate market. By allowing individual sellers to negotiate compensation offers with buyer’s agents outside of traditional MLS listings, the agreement opens up new possibilities for pricing strategies and negotiation tactics. These rule changes mark a departure from long-standing practices that have shaped agent commissions since the 1990s, paving the way for increased transparency and flexibility in real estate transactions.

Future Implications

As these new rules come into effect, industry experts anticipate a downward pressure on agent commissions, potentially leading to cost savings for both buyers and sellers. The shift towards more consumer-centric practices is expected to reshape how real estate agents operate and interact with clients. By empowering buyers and sellers with greater control over commission structures, this settlement sets a precedent for increased transparency and efficiency in real estate transactions. In conclusion, the recent NAR lawsuit settlement represents a significant milestone in the evolution of real estate practices. By redefining how agent commissions are handled and giving consumers more agency in negotiating these fees, this agreement heralds a new era of transparency and empowerment within the industry. As these changes take effect, buyers and sellers can look forward to a more flexible and cost-effective approach to real estate transactions.

How to Find a Supervisory Appraiser

Posted on March 3, 2024 by Real Estate Like a Boss 10 comments

Finding a supervisor will feel like you're trying to scale Mount Everest... if you don't know what you're doing.

If you want to become a licensed real estate appraiser, you’ll have to obtain experience as a trainee. This is basically an apprenticeship position under a certified appraiser (Certified Residential or Certified General level). They will be your mentor and teach you the ins and outs of the trade. They are the ones who will show you how to actually write an appraisal report.

Most states require trainees to obtain 1,000 hours of experience in no less than 6 months. You can work with as many certified appraisers as you want.

Now, to address the elephant in the room. The #1 question (and concern) for anyone trying to get into appraisal is:

“How do I find a certified appraiser to hire me?”

The easiest, and most obvious, way is if you already have a friend or family member who’s a certified appraiser.

Another option is to contact banks or Appraisal Management Companies (AMC) and see if they’re hiring. Some of them even pay you on a salary.

There are a few states like Iowa where the appraisal board will actually provide you with a list of active supervisory appraisers. If you are lucky enough to live in one of these states that offer this, you can simply go down the list and call each one to see if they will hire you. Pro tip: I would start from the bottom of the list and work your way up. Since everyone else usually starts at the top, the appraisers at the top of the list get the most calls and won’t be as receptive.

If you have exhausted those options, then you’ll have to find one by reaching out to them yourself.

I hear a lot of people complaining that they can’t find anyone. And you know what? I’m not surprised. The reason why so many people struggle is that they have the wrong expectations and wrong approach.

I personally didn’t know anyone in the industry when I started. I didn’t have any prior connections, and I’ve been able to successfully find multiple supervisory appraisers. They’re definitely out there. In fact, I know some who are actively looking to take on new trainees all the time.

How did I do it?

Set the right expections.

I’ve heard a lot of people say something like, “I’ve sent my resume out to 50 appraisers and haven’t heard back.”

What I’m thinking is, why should you expect to hear something back?

I mean, if you were to randomly send your resume out to 50 companies for any other profession, do you really expect them to respond? Or just hire you out of the blue?

You have to put yourself in their shoes. You are not the first person to ask them for a job.

And since you are the one looking for the job (not them), you have to first prove that you’re even worth talking to.

It’s also a good idea to know what you’re getting into. This isn’t a get-rich-quick scheme. You’re going to be required to invest a lot of time and energy from the start. This entire process is going to be a marathon, not a sprint. You have to pace yourself. If you set your hopes up too high in the beginning, then you’re only setting yourself up for failure.

You are not going to be making very much money as a trainee. This inconvenience is only temporary. Keep your eye on the prize. Remember, you’re building the foundation so you can have a successful 10+ year career.

The Approach

The #1 way to get hired is by talking to a certified appraiser face-to-face. I cannot stress how valuable meeting someone in person is. They will remember you and get a good feel for the type of person you are.

Here’s my secret on how to contact them in person:

As a trainee, you’re required to take continuing education (CE) courses to keep your appraiser’s license active. Find live courses in your area, and use your CE as an excuse to meet other appraisers.

You can find live CE courses at McKissock Learning, the Appraisal Institute, appraisal coalitions, and trade associations in your state.

Don’t take all your CE hours at once. You’ll want to spread your CE schedule over a long period of time, so you have a better chance of meeting more people.

This makes breaking the ice much easier. You can just casually strike up a conversation, and say something like, “so how long have you been in the industry?”

Remember, if you introduce yourself, you are on the “clock.” Your interview has started.

They are sizing you up as a person and as a professional. They are consciously (and subconsciously) looking at how you dress and present yourself. They will remember you, so make sure you leave a good impression.

Keep in mind, there are good mentors and bad mentors out there, so you want to be vigilant about who you work with. If they come to class with a disheveled appearance and papers spilling out of their binders, that’s probably not a good sign that they will make a good supervisor.

If you do find someone that presents themselves professionally and seems knowledgeable, simply ask them if they are willing to take on any trainees.

If you are in a remote location or there aren’t very many live classes in your area, then you will have to just pick up the phone and call them. Fortunately, you can easily search the National Registry of Appraiser’s to find one in your area. Your state board also provides a directory.

Whether you meet them in person or call them, they will most likely say “no.”

Expect this to happen, but don’t get discouraged. A “no” today isn’t a “no” for tomorrow. I’ve personally talked to several certified appraisers who agreed to take on trainees (even though they didn’t want to) simply because the trainee was persistent.

This is where you can separate yourself from people who complain on internet chat rooms that they can’t find anyone.

If you meet them in person, ask for their business card. If they didn’t bring one, ask for their phone number and email address.

You are still in the "interview" process.

You must send them a follow-up email within 24 hours. Timing is CRUCIAL. This is a small window where you have a chance to prove that you know proper business etiquette.

Keep it casual but professional. Don’t over-analyze the message. Simply tell them it was great to meet them, and that you hope to have an opportunity to work with them in the future.

You are planting a seed in their mind. If you want, you can attach your resume.

Connect with them on LinkedIn. Before you do though, make sure your own LinkedIn profile is polished and up-to-date.

At this point, you will need to follow up with them every 1-2 months. Calling them over the phone gives you the best chance of getting hired. If they don’t pick up, then just leave a message.

If you’re an introvert like me and don’t like making phone calls, you can alternate between phone and email.

It doesn’t matter if they respond or not. What’s happening is that they are getting to know you. They get to see your communication and writing skills. They get to see your work ethic and drive. And hopefully, they are even starting to like you.

How long do you have to keep following up? It’s up to you. This is YOUR “interview.” It ends when you quit.

Remember, you only need to find one supervisor.

Some Last Thoughts

Finding someone to train you doesn’t have to be hard.

Most people struggle because they are stuck in an “I can’t do it” mindset. Remember that every contact you make with a potential mentor is a “test,” so you should always put your best foot forward. Certified appraisers, and pretty much every company, want to hire people with an “I can” attitude. If something is not working, then try something else.

That’s not to say that finding a supervisor will be easy. But if you set the right expectations for yourself and be patient with the process, your persistence and hard work will pay off.

Navigating the 2024 Interest Rate Cuts: A Real Estate Market Outlook

Posted on January 1, 2024 by Real Estate Like a Boss

As we enter the year 2024, the Federal Reserve has indicated that it will likely be cutting interest rates multiple times throughout the year. This news has sparked curiosity and speculation about how these cuts will impact the real estate market, particularly in terms of sales. In this blog post, we will explore the potential effects of these interest rate cuts on the real estate market and provide insights to help you navigate this changing landscape.

The Federal Reserve’s Projections:

The Federal Reserve has projected that there will be up to six interest rate cuts in 2024, with the first cut potentially occurring as early as March. These cuts are expected to bring down the federal funds rate, which in turn will influence mortgage interest rates. Lower mortgage rates can make home buying more affordable and attractive for potential buyers.

Impact on Real Estate Market Sales:

1. Increased Demand for Homes:

Lower interest rates on mortgages can make homeownership more affordable and accessible for a larger number of people. This increased affordability can lead to a surge in demand for homes, as more individuals and families will be able to enter the market.

According to the National Association of Realtors, the average 30-year fixed-rate mortgage is projected to reach 6% by the end of 2024, down from 7% in early 2024. This decrease in mortgage rates is expected to boost home sales, as more people will be able to afford to buy a home. In fact, the Mortgage Bankers Association predicts that home sales could increase by as much as 5% in 2024.

2. Boost in Home Sales:
As demand for homes increases, it is expected that home sales will also see a boost. This is good news for sellers, as they may be able to sell their homes more quickly and at a higher price. Buyers, on the other hand, may face increased competition for desirable properties, which could lead to bidding wars and higher sale prices.

3. Impact on First-Time Homebuyers:

Lower interest rates can be particularly beneficial for first-time homebuyers, as they may be able to afford a larger or more expensive home than they could with higher interest rates. This could lead to an increase in first-time home purchases and a more diverse pool of buyers in the market.

4. Potential for a More Competitive Market:

With increased demand and a potentially limited supply of homes, the real estate market could become more competitive in 2024. Buyers may need to act quickly and be prepared to make strong offers to secure their desired properties. This competitive environment could also lead to faster sales and shorter time-on-market for homes.

5. Opportunities for Refinancing:

For existing homeowners, the interest rate cuts in 2024 could present an opportunity to refinance their mortgages at a lower rate. According to a recent study by TransUnion, if mortgage rates were to drop to 5.5%, it could result in an average monthly savings of $284 for homeowners. This would also make it easier for homeowners to tap into their home equity, potentially boosting the home improvement and renovation market.

6. Regional Differences:

The impact of interest rate cuts on the real estate market can vary by region. Some areas may see a more significant increase in demand and sales, while others may not experience as much of an effect. It is essential to consider local market conditions and consult with a real estate professional to understand the specific impact in your area.

Final Thoughts:

The projected interest rate cuts in 2024 have the potential to significantly impact the real estate market, particularly in terms of sales. Lower mortgage rates can make homeownership more affordable and accessible, leading to increased demand and sales. However, the competitive market may also present challenges for buyers and sellers alike.

As we navigate the changing landscape of the real estate market in 2024, it is crucial to stay informed and adapt to the evolving conditions. By understanding the potential effects of interest rate cuts on the market, buyers and sellers can make more informed decisions and capitalize on the opportunities that may arise.

Top US Markets for Real Estate Agents in 2024

Posted on December 9, 2023 by Real Estate Like a Boss Leave a comment

The real estate market in the United States is constantly evolving, with various factors influencing its performance. As we look ahead to 2024, it’s essential for real estate agents to stay informed about the best areas for their business. In this blog post, we’ll explore the top US markets with the best outlook for real estate agents in 2024, taking into consideration factors like housing demand, job growth, and affordability.

Austin, Texas

Austin has been a hot real estate market for several years, and this trend is expected to continue in 2024. The city’s strong job market, driven by the tech industry, attracts a steady influx of new residents. Additionally, the cost of living in Austin remains relatively affordable compared to other major tech hubs, making it an attractive destination for homebuyers.

Charlotte, North Carolina

Charlotte is another city that has been experiencing rapid growth in recent years. With a thriving job market, particularly in the finance and banking sectors, the city is attracting a steady stream of new residents. Charlotte’s affordable housing and high quality of life make it an appealing option for real estate agents looking to capitalize on the growing demand for homes in the area.

Denver, Colorado

Denver’s real estate market has been on an upward trajectory for the past few years, and this trend is expected to continue in 2024. The city’s strong job market and growing population make it an attractive destination for homebuyers. Denver’s proximity to outdoor recreational opportunities and its vibrant cultural scene also contribute to its appeal.

Nashville, Tennessee:

Nashville’s real estate market is thriving, thanks to its growing job market and diverse economy. The city is home to several large corporations, and its vibrant music and entertainment scene attracts a steady stream of new residents. With a relatively low cost of living and a high quality of life, Nashville is a prime market for real estate agents in 2024.

Raleigh, North Carolina

Raleigh is part of the Research Triangle, a region known for its strong job market in the technology and life sciences sectors. The city’s affordability, combined with its growing population and job opportunities, make it an attractive option for real estate agents in 2024. Raleigh’s high quality of life and excellent schools also contribute to its appeal.

Tampa, Florida

Tampa’s real estate market has been on an upward trend, and this is expected to continue in 2024. The city’s growing job market, diverse economy, and affordable housing make it an attractive destination for homebuyers. Tampa’s warm climate and proximity to beaches and other recreational opportunities also contribute to its appeal.

Salt Lake City, Utah

Salt Lake City’s real estate market has been strong in recent years, and this trend is expected to continue in 2024. The city’s growing job market, particularly in the tech sector, attracts a steady stream of new residents. Salt Lake City’s affordability, high quality of life, and access to outdoor recreational opportunities make it an appealing option for real estate agents.

Dallas, Texas

Dallas has a robust job market and a diverse economy, which has contributed to its thriving real estate market. The city’s affordable housing and high quality of life make it an attractive destination for homebuyers. Dallas’ central location and strong transportation infrastructure also contribute to its appeal.

Phoenix, Arizona

Phoenix’s real estate market has been on an upward trend, and this is expected to continue in 2024. The city’s growing job market, particularly in the tech and healthcare sectors, attracts a steady stream of new residents. Phoenix’s affordable housing and warm climate make it an attractive destination for homebuyers.

Atlanta, Georgia

Atlanta’s real estate market is thriving, thanks to its strong job market and diverse economy. The city is home to several large corporations and has a growing tech industry. Atlanta’s affordability, high quality of life, and cultural attractions make it an appealing option for real estate agents in 2024.

Final Thoughts

The US real estate market is constantly evolving, and real estate agents need to stay informed about the best areas for their business. The top markets for real estate agents in 2024 include Austin, Charlotte, Denver, Nashville, Raleigh, Tampa, Salt Lake City, Dallas, Phoenix, and Atlanta. These cities offer strong job markets, affordable housing, and high quality of life, making them prime locations for real estate agents looking to capitalize on the growing demand for homes in these areas.

Real Estate Market Outlook 2024: Navigating the Future with Data and Insights

Posted on November 15, 2023 by Real Estate Like a Boss Leave a comment

As we approach 2024, the real estate market continues to evolve, presenting both challenges and opportunities for real estate agents. In this blog post, we’ll delve into the latest data and trends to provide an outlook for the real estate market in 2024, with a focus on helping agents make informed decisions and capitalize on the opportunities ahead.

Market Overview and Key Statistics

The real estate market in 2023 has been characterized by a mix of factors, including rising interest rates, low inventory levels, and a growing demand for housing. According to the National Association of Realtors (NAR), existing-home sales in 2023 are projected to be around 4.9 million units, down from 5.6 million units in 2022.

Looking ahead to 2024, the market is expected to stabilize as interest rates begin to moderate, and inventory levels gradually increase. The NAR projects that existing-home sales in 2024 will reach 5.2 million units, a 6% increase from 2023.

Regional Market Trends

Real estate markets across the United States are expected to experience varying trends in 2024. For example, Redfin’s data shows that home prices in the West are expected to decline by 4% in 2024, while the Midwest and South are projected to see modest price increases of 1% and 2%, respectively.

This regional variation underscores the importance of understanding local market dynamics and tailoring your strategies accordingly. Agents should keep an eye on local economic indicators, such as job growth, population trends, and new construction activity, to better anticipate market shifts and capitalize on emerging opportunities.

Emerging Trends and Opportunities

As we look ahead to 2024, several trends are poised to shape the real estate market and create new opportunities for agents. These include:

Increasing demand for affordable housing: With rising interest rates and high home prices, the demand for affordable housing options is expected to grow in 2024. Agents should be prepared to help clients navigate the complexities of down payment assistance programs, government-backed loans, and other initiatives designed to make homeownership more accessible.
Growing interest in sustainable homes: The trend towards environmentally friendly and energy-efficient homes is expected to continue in 2024. Agents should familiarize themselves with green building certifications, energy-efficient features, and the potential benefits of sustainable homes, such as lower utility bills and increased resale value.
The rise of remote work: The widespread adoption of remote work has transformed the way people live and work, and this trend is expected to continue in 2024. Agents should be prepared to help clients navigate the unique challenges and opportunities associated with working from home, such as the need for home offices, access to high-speed internet, and proximity to urban amenities.
The growing importance of technology: In 2024, real estate agents will continue to rely on technology to streamline their operations, reach new clients, and provide better service. Agents should stay up-to-date on the latest tools and platforms, such as virtual home tours, digital marketing, and online client management systems, to remain competitive in the market.

Final Thoughts

As we look ahead to the real estate market in 2024, agents must be prepared to navigate a complex and dynamic landscape. By staying informed about market trends, understanding regional variations, and embracing emerging opportunities, agents can position themselves for success in the coming year.

Remember to keep an eye on local economic indicators, stay up-to-date on industry trends, and leverage technology to better serve your clients. By doing so, you’ll be well-equipped to thrive in the real estate market of 2024 and beyond.

Why NOW is the best time to get your real estate license

Posted on October 17, 2023 by Real Estate Like a Boss

If you’ve ever dreamed of a career in real estate, the fourth quarter of 2023 may be one of the greatest times in history to start getting your real estate license. While there is no shortage of negative news in the housing market about inventory shortages and plummeting mortgage applications that suggest a recession is imminent, here are five major reasons why 2024 will be a great year for real estate and why now is the perfect time to get ready for it.

1. January is the busiest time of the year

As the calendar flips to a new year, the real estate market comes alive in January. Historically, this month has proven to be one of the most active periods for both buyers and sellers. It’s a time when people set fresh goals, including homeownership, and are eager to make a change in their living situation. This surge in activity provides newly licensed agents with a wealth of opportunities to jump into the market with enthusiasm. It’s your chance to get in on the action and start building your real estate career from day one.

2. The licensing process takes 2- 3 months

Getting licensed to work in real estate doesn’t happen overnight. The process typically takes approximately 2-3 months. This includes fulfilling the educational requirements, passing your state’s licensing exam, and submitting the necessary paperwork. By starting the process now, you position yourself perfectly to capitalize to hit the ground running when it’s busy at the first of the year.

3. A recession will lower interest rates

Demand is down now, but market experts are anticipating a mild recession soon, which will force the Federal Reserve to lower interest rates. As interest rates fall, it can make homes more affordable for buyers. The Mortgage Bankers Association anticipates this will spark a huge housing rebound and mortgage origination volume to surge 19% next year. It’s the perfect time to guide buyers through the process and secure their dream homes while the cost of borrowing remains attractive.

4. Huge pent-up demand

Even though real estate sales have been down in 2023, there is never a shortage of demand for real estate property. Everybody wants to own a home. Most people are just being forced to sit on the sidelines until the market conditions improve. According to Bank of America, there is a whopping $5.3 trillion sitting in money market funds. When interest rates begin dropping next year, there will be a flurry of activity and people lining up to buy.

5. Biggest discounts at real estate schools

Real estate schools are seasonal with their promotions and offer the best deals in the fourth quarter. On top of that, they have been feeling the pinch this year along with the rest of the real estate market. As a result, they have been giving out bigger promotions and lowering their prices. The cost to complete your real estate courses has never been lower!

While the market may not seem great right now, the stars are aligning for a remarkable year in real estate next year. Since it takes a few months to get licensed, if you start now, you will be in a perfect position to catch the momentum going up when the market rebounds.

Why every realtor should study different architectural styles

Posted on September 19, 2023 by Real Estate Like a Boss

As a realtor, you know that every home is unique. But did you know that there are dozens of different architectural styles of single family homes? By understanding the different features and characteristics of these styles, you can better help your clients buy and sell homes.

Here are just a few of the benefits of studying different architectural styles:

Help clients find the perfect home: When you understand the different architectural styles, you can better help your clients find a home that meets their needs and preferences. For example, if a client is looking for a home with a lot of character, you might recommend a Craftsman or Victorian home. If a client is looking for a home with a modern feel, you might recommend a Mid-Century Modern or Contemporary home.
Price homes accurately: Each architectural style has its own unique value. By understanding the different factors that contribute to the value of a home, you can more accurately price your listings. For example, a home in a historic district is likely to be more valuable than a similar home in a newer neighborhood.
Market homes effectively: When marketing a home, it is important to highlight its unique features and characteristics. By understanding the different architectural styles, you can better describe your listings in a way that will appeal to potential buyers. For example, when marketing a Craftsman home, you might highlight its natural materials and exposed beams. When marketing a Mid-Century Modern home, you might highlight its clean lines and open floor plan.
Negotiate effectively: During negotiations, it is important to be able to articulate the value of your listings. By understanding the different architectural styles, you can better explain to buyers why your listings are worth the asking price. For example, you might point out that a home in a historic district is likely to appreciate in value over time.

In addition to these benefits, studying different architectural styles can also make you a more knowledgeable and well-rounded realtor. It can help you better understand the history of your community and the different types of homes that are available. This knowledge can be invaluable when helping your clients buy or sell a home.

Architectural Styles

Here is a list of some of the most common types of single family home architecture styles, along with photos:

Cape Cod

Cape Cod homes are typically one- or two-story homes with gabled roofs and dormers. They often have a central fireplace and a wraparound porch.

Colonial

Colonial homes are characterized by their symmetrical design, central staircase, and multiple gables. They are often made of brick or wood and have large windows.

Contemporary

Contemporary homes are designed with clean lines and simple forms. They often have open floor plans and large windows.

Craftsman

Craftsman homes are known for their natural materials, such as wood and stone. They often have overhanging eaves, exposed beams, and large porches.

Farmhouse

Farmhouse homes are typically simple and rustic in design. They often have one or two stories, with gabled roofs and porches.

French Country

French Country homes are characterized by their romantic and charming design. They often have stucco walls, tile roofs, and wrought-iron accents.

Greek Revival

Greek Revival homes are inspired by the architecture of ancient Greece. They often have columns, pediments, and porticos.

Mediterranean

Mediterranean homes are characterized by their warm and inviting design. They often have stucco walls, tile roofs, and wrought-iron accents.

Mid-Century Modern

Mid-Century Modern homes are known for their clean lines and simple forms. They often have open floor plans and large windows.

Ranch

Ranch homes are typically one-story homes with long, low-pitched roofs. They often have open floor plans and large windows.

Split-Level

Split-level homes have two or more levels that are offset from each other. This creates a sense of space and separation.

Tudor

Tudor homes are characterized by their steep gabled roofs, half-timbering, and leaded glass windows.

Victorian

Victorian homes are known for their elaborate ornamentation and intricate details. They often have multiple stories, gabled roofs, and bay windows.

These are just a few of the many different types of single family home architecture styles. When buying or selling a home, it is important to be familiar with the different styles available in order to find the perfect home for your needs or to market your home effectively.

Here are a few tips for studying different architectural styles of single family homes:

Visit local museums and historic districts: This is a great way to see examples of different architectural styles in person. You can also learn about the history of the styles and the different factors that influenced their design.
Read books and articles about architecture: There are many resources available that can help you learn more about different architectural styles. You can find books and articles at your local library or online.
Take a tour of a local architecture school: Many architecture schools offer tours of their facilities. This is a great way to learn about different architectural styles from experts.
Talk to other realtors and architects: Other realtors and architects can be a great source of information about different architectural styles. They can share their knowledge and expertise with you.

Softening Rental Market Forcing Landlords Into Conecessions

Posted on September 5, 2023 by Real Estate Like a Boss

According to Fortune, even though median asking rent is near a record high, landlords are offering concessions to attract renters. This is because the rental market is softening in some parts of the country, with vacancies on the rise. The rental vacancy rate in the U.S. is now 6.3%, up from 5.6% a year ago.

Landlords are offering concessions such as one-time discounts and a few months free rent. Some landlords are also raising rents for existing tenants but not new tenants, to strengthen their returns without scaring off prospective renters.

Higher-end properties are coming under pressure in some markets as demand declines, while supply increases. Meanwhile, more affordable units are in demand, as there’s lower supply and consumers are less willing, or unable, to afford higher-end units at this time.

Rent growth has cooled over the past year due to slowing household formation, economic uncertainty, affordability challenges and an increase in rental supply.

The rental market varies across the nation. In the West, the median asking rent dropped 1.1% year-over-year to $2,469 in August. In the South, the median asking rent fell 0.3% to $1,673. However, the median asking rent rose 4.6% over the same period in the Midwest and 1.2% in the Northeast to $1,434 and $2,509, respectively.

This suggests that the rental market is cooling in some parts of the country, while it remains hot in others.

Unveiling the Shadows: Potential Fraud in Real Estate Transactions

Posted on August 20, 2023 by Real Estate Like a Boss

Real estate transactions are significant financial endeavors that involve buying, selling, or leasing property. These transactions can be complex, involving various parties, legalities, and documentation. Unfortunately, the lucrative nature of real estate also makes it a breeding ground for potential fraud. In this blog post, we will delve into the world of real estate fraud, exploring its various forms and providing specific examples to raise awareness about this critical issue.

I. Identity Fraud

Identity fraud is a prevalent form of real estate fraud where criminals assume the identity of property owners or buyers to carry out illicit activities. For instance, an individual could impersonate the rightful owner of a property and attempt to sell it to an unsuspecting buyer. The criminal might create counterfeit documents, forge signatures, and even establish fake companies to give their scheme an air of legitimacy.

Example: In 2017, a New York-based fraudster used forged documents to transfer ownership of a vacant property to his name. He then sold the property to an unwitting buyer for a substantial amount. The true owner only discovered the fraud when attempting to sell the property years later.

II. Title Fraud

Title fraud occurs when someone fraudulently obtains the title of a property by forging documents or manipulating records. This type of fraud can lead to wrongful transfers of ownership, resulting in innocent homeowners losing their property.

Example: In a notorious case from 2006, a Californian couple faced foreclosure after fraudsters obtained a mortgage on their property using forged documents. The fraudsters sold the property to a third party, leaving the original homeowners to fight a lengthy legal battle to reclaim their home.

III. Mortgage Fraud

Mortgage fraud involves misrepresenting information on a mortgage application to secure a loan under false pretenses. This can range from inflating income figures to submitting fabricated employment histories. Such fraud can lead to financial loss for lenders and borrowers alike.

Example: A group of real estate professionals in Florida orchestrated a scheme in which they recruited individuals with good credit to purchase multiple properties. The professionals then falsified loan applications, inflated property values, and pocketed the excess loan funds. The borrowers, who had no knowledge of the fraud, ended up defaulting on the loans, while the fraudsters disappeared with the profits.

IV. Rental Fraud

Rental fraud takes place when scammers pose as property owners or landlords, advertising properties they do not actually own or have authority to rent. Unsuspecting renters may pay deposits and sign leases, only to discover that the property was never available for rent.

Example: In a case reported in 2020, a scammer listed a vacant property for rent on various online platforms, targeting desperate renters seeking affordable housing. The scammer collected security deposits and first month’s rent from multiple tenants before disappearing, leaving the renters without a place to live.

V. Foreclosure Fraud

Foreclosure fraud occurs when fraudsters prey on homeowners facing foreclosure by offering fraudulent assistance in exchange for fees. They promise to negotiate with lenders, delay foreclosure proceedings, or modify loans, but often deliver no real results.

Example: During the 2008 financial crisis, a surge in foreclosure fraud cases was reported. Many homeowners paid substantial fees to companies promising to save their homes from foreclosure, only to discover that these companies provided little to no assistance, exacerbating their financial woes.

VI. Online Listing Scams

In the digital age, online listing scams have become increasingly prevalent. Scammers create fake property listings with attractive prices to lure potential buyers or renters into sending money or personal information.

Example: In a recent case, a scammer copied a legitimate property listing from a real estate website and reposted it on another platform with a significantly lower price. Several hopeful buyers contacted the scammer, only to be asked for upfront payment to secure the property. The scammer vanished after receiving the payments, leaving the buyers empty-handed.

Final Thoughts

Real estate transactions, while potentially rewarding, also carry significant risks due to the possibility of fraud. The examples provided in this blog post shed light on the various ways fraudsters exploit the complexities of real estate to deceive unsuspecting victims. To safeguard against such fraud, potential buyers, sellers, and renters must remain vigilant, conduct thorough due diligence, and seek legal advice when necessary.

Additionally, regulatory bodies, law enforcement agencies, and real estate professionals play a crucial role in identifying and preventing fraud to ensure the integrity of the real estate industry. By staying informed and cautious, individuals can minimize their vulnerability to real estate fraud and protect their investments and financial well-being.

Everything You Need To Know About The California Real Estate Broker Exam

Posted on August 2, 2023 by Real Estate Like a Boss Leave a comment

It takes a lot of pre-requisites just to be able to sit for the California broker exam. Not to mention that it’s a long test that will require you to be there all day. So, if you are thinking about “winging it,” you may want to know what you will be going up against first.

This comprehensive guide will walk you through all the details you need to know (except for the actual questions on the test) about the broker state exam. .

Application

After you’ve met the pre-requisites for education and experience, you’ll need to mail your application, along with the $60 exam fee, to take the broker state exam in California.

There are two ways to file your application:

Broker Examination Application (RE 400B) – This is the standard application form.
Combined Broker Examination and License Application – This is the “fast track” option where you pay all fees upfront. This cuts down on the paper-shuffling, and you end up receiving your license faster. However, keep in mind that all fees are non-refundable, so if you fail the test or change your mind, you will not get your money back.

Scheduling

The broker state exam is administered by the Department of Real Estate about once a month. You can see the current schedule of availability on their website here.

You can schedule your exam through the eLicensing online system very easily now. This allows you to schedule your test all the way up until 6am on the day of the exam.

The exams will begin promptly, so it’s important to be punctual and arrive at least 30 minutes early.

Basic calculators will be provided, so you will not be allowed to bring your own.

Locations

There are 5 exam sites available:

Los Angeles and surrounding areas
1 Centerpointe Drive
Suite 370, 3^rd Floor
La Palma, CA 90623

Fresno and surrounding areas
2550 Mariposa Mall
Room 3070
Fresno, CA 93721

Oakland and surrounding areas
1515 Clay Street
Suite 702
Oakland, CA 94612

Sacramento and surrounding areas
1651 Exposition Blvd
Sacramento, CA 95815

San Diego and surrounding areas
7630 Carroll Road
San Diego, CA 92121

Note: The DRE has an office in Los Angeles that is not an exam site.

Format

The exam consists of 200 multiple-choice questions and is broken up into 2 parts.

There is a 2.5 hour morning sessions with 100 questions, and a 2.5 hour afternoon session for the remaining 100 questions.

You will need a score of 75% or better to pass. You will be notified of the examination results immediately after you finish. They will also mail you a formal notice within 5 business days by mail.

If you fail the exam, the easiest way to re-apply is through the eLicensing online system. You can try to pass the exam as many times as you need within 2 years of filing your initial application. After the 2 year mark, you will have to re-qualify for the experience and fill out a new application along with the test fee.

Content

The law requires that broker license applicants demonstrate in a written examination:

Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.
An understanding of the principles of real estate and business opportunity conveyancing; the general purposes and general legal effect of agency contracts, deposit receipts, deeds, deeds of trust, chattel mortgages, bills of sale, mortgages, land contracts of sale, and leases; and of the principles of business, land economics and appraisals.
A general and fair understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner.

Here are the 7 sections covered in the state exam and how much each section is weighted:

Property Ownership and Land Use Controls and Regulations – 15%
Laws of Agency – 17%
Valuation and Market Analysis – 14%
Financing – 9%
Transfer of Property – 8%
Practices of Real Estate and Mandated Disclosures – 25%
Contracts – 12%

Here’s a detailed breakdown on what’s covered in each section. This is for informational purposes only, and is subject to change.

Property Ownership and Land Use Controls and Regulations

Classes of Property
Property Characteristics
Encumbrances
Types of Ownership
Descriptions of Property
Government Rights in Land
Public Controls
Environmental Hazards and Regulations
Private Controls
Water Rights
Special Categories of Land

Laws of Agency and Fiduciary Duties

Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents
Creation of Agency and Agency Agreements
Responsibilities of Agent to Seller/Buyer as Principal
Disclosure of Agency
Disclosure of Acting as Principal or Other Interest
Termination of Agency
Commission and Fees
Responsibilities of Agent to Non-Client Third Parties

Property Valuation and Financial Analysis

Value
Methods of Estimating Value
Financial Analysis

Financing

General Concepts
Types of Loans
Sources of Financing
Government Programs
Mortgages/Deeds of Trust/Notes
Financing/Credit Laws
Loan Brokerage
Types of Loan Originators

Transfer of Property

Title Insurance
Deeds
Escrow
Tax Aspects
Special Processes
Transfer through Court Supervision
Types of Vesting

Practice of Real Estate and Mandated Disclosures

Trust Account Management
Fair Housing Laws
Truth in Advertising
Record Keeping Requirements
Agency Supervision
Permitted Activities of Unlicensed Sales Assistants
DRE Jurisdiction and Disciplinary Actions
Licensing, and Continuing Education Requirements and Procedures
California Real Estate Recovery Fund
General Ethics
Technology
Property Management
Commercial/Industrial/Income Properties
Specialty Areas
Transfer Disclosure Statement
Natural Hazard Disclosure Statements
Disclosure of Material Facts Affecting Property Value
Need for Inspection and Obtaining/Verifying Information
Reports
Servicing Diverse Populations

Contracts

General
Listing Agreements
Buyer Broker Agreements
Offers/Purchase Contracts
Agreements
Promissory Notes/Securities
Purchase/Lease Options
Advanced Fee

Some Final Thoughts...

It is extremely important that you do not try to cut corners and cheat. If you get caught, they will charge you with a misdemeanor. Do not talk to other test takers, copy answers, bring unauthorized personal items to the test, or try to game the system in any way.

You’ll want to reserve a sufficient amount of time to prepare for the exam. There are a lot of education providers available nowadays with practice tests and crash courses. This is a big test, so I advise doing it right the first time.

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