TRET the Podcast Episode 18: The NAR Settlement Part 2: The Practical Stuff

Join TRET for it's 18th episode, as Stephon discusses the practical side of the NAR Settlement .

TRET Episode 18: The NAR Settlement Part 2: The Practical Stuff 

Digitization and the Real Estate Professional

There is no denying that the role and purpose of a real estate professional has changed over the past five years. From advances in artificial intelligence, to the popularity of digital real estate, to the presence of large full service real estate companies in the market, like Zillow 2024, this market is very different from that of 2019. Add to this mix the weakening of real estate professional organizations, like the National Association of Realtors via the NAR settlement and it becomes even more apparent that the real estate service market is in a state of change. Given the current state of flux in the market, some have begun to question the role of a real estate professional. It has therefore become imperative that real estate professionals recognize their current competitive advantages in order to thrive.

The Origin of the 6% Commission Standard

The recent National Association of Realtors (NAR) Settlement is in the process of changing how many real estate brokers and salespeople conduct business. The terms of the settlement all but abolish cooperative compensation amongst brokers. Although this may not be a substantial change for markets in which every buyer offers through a Buyer's Broker and every seller is automatically represented by a Seller’s Broker, the effects will be greatly felt in other markets. Some of the larger real estate markets have developed complex systems of agency that will now be simplified by one premise--in a residential real estate transaction, a buyer will now have to pay a Buyer’s Broker and seller will have to pay a Seller’s Broker.

Shrinkflation In the Real Estate Market

Inflation has been a reality for the past couple of years. As a result, many companies have decided to respond to the rise in prices and the weakening of the dollar by shrinking the size of their products without reducing their price. This practice has been given the name “Shrinkflation,” which is  defined as “the practice of reducing a product's amount or volume per unit while continuing to offer it at the same price.” Shrinkflation started to become apparent during the pandemic, but was so craftily employed that many doubted that it was even happening. Now, however, it is well acknowledged that just about everything is smaller, but more expensive. Shrinkflation has so integrated itself in today's reality that it has made its way into the real estate market.

The Mortgage Solution and the Refinance Trap: Why the Lender Always Wins with a Mortgage

Mortgage rates have been news for some time now. Coverage about mortgages has recently turned toward news of a potential rate decrease. This potential drop is such a relief to everyone in the real estate market that even President Joe Biden mentioned it in his most recent State of the Union address. Although the reference was a political move and this blog is not political, the President's attempts to use the activity in the real estate market to further his agenda is yet another reminder of the influence that mortgage rates hold on this country.

Blockchain Real Estate: Some Things to Consider

There has been a recent movement toward marrying blockchain technology with real estate transactions. As a result, tokenization has been offered as the solution for everything real estate from investment to document execution. Companies like RealT, ManageGo, Republic, Blocksquare and others now offer a variety of different real estate services based on blockchain technology. Although this wave of innovation is seemingly ubiquitous in today’s real estate market, there are still a number of legal and logistical issues that must be considered before fully integrating blockchain technology into your real estate endeavors.

Flourish in New Beginnings: Navigating Life in a Different City

By Sharon Wagner

Moving to a new city brings a mix of excitement and nerves, especially after overcoming personal challenges. Courtesy of The Real Estate Think Tank, this guide is crafted to assist you in thriving in your new environment. It provides you with strategies to create a strong support system. Learn how to maintain focus amidst the changes. It also teaches you to cultivate a positive attitude during this transition.

2023 Recap (No Clever Title This Time)

Yet another year has come and gone for TRET and it’s time for our annual wrap up. Let’s start with this blog. This year started for us with a focus on individual wealth generation through real estate. This noble goal dominated the blog for the first couple of months of the year and was continued in an expert fashion by this year’s guest writer—Sharon Wagner. All of our residential real estate articles have had a wealth generation theme and we will continue to honor this commitment to wealth generation going forward.

Strategic House Flipping as a Gateway to Adult Education Funding

By Sharon Wagner

Embarking on the path of higher education as an adult can be a financially daunting endeavor. In the quest to secure funding for this journey, the realm of house flipping presents an innovative and viable solution. This guide is designed to arm adult learners with strategic insights, seamlessly interweaving the art of real estate investment with the pursuit of academic goals, thereby transforming financial barriers into opportunities for growth and success.

There’s No Place Like Home For the Holidays: A Look At The Multifamily Market

Thanksgiving has passed and the holiday season has officially begun, so it is only natural that TRET finishes its real estate asset class series with a look at home—multifamily properties. Also, for those who consider the holidays a time to get away, we’ll also take a look at the state of hospitality properties, as well.

Ready, Set, Invest! Your Guide to Buying Your First Investment Property

By Sharon Wagner

Investing in real estate is undoubtedly one of the smartest ways to boost your earnings and create wealth. With the potential for significant returns on investment, whether you're looking for an extra source of income or a path to becoming a full-time investor, purchasing your first investment property is a major undertaking. To help you make the most out of your investment, The Real Estate Think Tank has compiled some essential steps to follow when purchasing and managing your first investment property. 

Industrial Real Estate: A Normal Market for a Somewhat Normal Time

Recently coming off the effects of nearly two years of rising interest rates by the Federal Reserve, the real estate market has been in a state of constant change for the past 18 months. As this blog has extensively discussed, real estate is very dependent on interest rates, as they influence property loans, cap rates and ultimately, property prices. Despite the recent period of adjustment, the economy seem to show signs of normalization, with mortgage rates, consumer loan rates and even treasury rates settling at levels much higher than those of the previous two years. By all indicators, it seems like our economy and we seem headed for a soft landing. No market has internalized the current state of the economy more than the Industrial Real Estate market.

Unlocking Retirement Wealth: A Senior’s Blueprint to House Flipping Success

By Sharon Wagner

Please enjoy this article from guest author, Sharon Wagner. TRET will return next month with another article continuing its series on property types.

Navigating the world of house flipping can be an exciting and profitable journey for seniors who are seeking an active and rewarding retirement. While the venture promises lucrative gains, it also calls for strategic planning, unwavering dedication, and tactical execution.

The following are indispensable guidelines aimed at assisting mature adults in carving out a successful career in the house-flipping arena, while also enjoying a balanced lifestyle. The Real Estate Think Tank explores these crucial facets in detail.

Retail Real Estate Is Thriving, But How?

Picture it, the year is 2023. Any and every item that can be bought sold can be accesses via the Internet from the comfort of one’s own home. For over seven years, the number of stores in existence has steadily declined. The economy is experiencing the perfect storm of rampant inflation and recessionary forces. Despite all of this, retail real estate vacancy nationwide is 5.4% and retail is thriving. Let’s take a look at why.

Is the American Office Market Dead?

There was a time in the not too distant past when I considered office properties “the best of all worlds.” They offered the flexibility to create leases that were in between the detailed relationships established by industrial and retail properties and the more straight-forward residential lease. Rental calculations were relatively simple—base rent plus utilities and any tenant improvement allowances. Occasionally, common area improvements or maintenance factored into the equation. The property was typically used from 7 am until 7 pm, so utilities were relatively low and predictable. Wear and tear on the property was much less than any other real estate property class.

The necessity of office space was at one point unquestioned and tenants were readily available. Space considerations were for the most part limited to whether the location was large enough and had enough amenities or services to meet the tenants needs. Leases were easy to enter, easy to renew and easy to understand. For owners, office properties offered many of the benefits of owning a commercial property with fewer of the complexities that come with other property types.

2021: What A Year

Ok, I’ll admit it…I wasn’t prepared for the impact that returning to work in person would have on my life and on TRET. Now, 2021 is coming to an end and I find myself yet again writing another end-of-the-year post in which I am apologizing for the recent inactivity on this awesome blog. This time, however, it’s a little different.

2021 marked 10 years since I published the first post on this blog. At the time I was real estate agent and teacher who was about to begin law school and was looking for ways to better understand real estate modeling and real estate finance. I hoped to create a community of like-minded people so that we could explore ways to better value real estate properties and mortgages and discuss the market. Ten years and many experiences later this blog has grown and transformed into a general forum on all things real estate and I am amazed at the direction it has taken. 2021 has been an amazing year for TRET, so let’s take a look at the year in review.

The End of Summer

Stephon Martin

August is coming to a close and although Summer isn’t officially over until September 23^rd, the end of August has an unofficial feel of transition. School will soon have begun for all children in the United States and the country will attempt to push forward out of the shadow of COVID-19. Some areas will forge ahead more successfully than others, but an attempt will be made by all. The beginning of September means that the holiday season is just around the corner. With the impending change of the season, how will the real estate market be affected?

Moving to a Bigger House to Start a Business: How to Do It

Suzie Wilson

Starting a business in a new community can be challenging. Preparing to move because current living arrangements do not allow you to run a business from your home can be difficult, but it's doable. House hunting, moving, and starting a venture all require detailed planning. However, the enthusiasm, economic growth, and products or services you bring to the new community will reward your efforts.

To succeed in finding the right home for your business and prepare for future expansion, The Real Estate Think Tank offers the following tips below.​

Press ‘Home’ — Selling Properties With Smart Tech

 

Please enjoy this article from guest author Suzie Wilson  of  Happierhome.net

There are many advantages to home automation: ease of use, better accessibility, and let’s face it — there’s something cool about a fireplace that starts up when you clap. What you may not have foreseen, however, are the benefits that technology provides when selling a property.

The Role of Tech

 In almost all areas of life, it’s clear that the pandemic has increased our reliance on tech. This is no less true in the housing market, where the need to actually step inside a property has been somewhat reduced by the use of 3D walkthroughs, video-chat tours, virtual open houses, and Zoom realtor consultations. This is good news for prospective sellers as, in the wake of COVID, housing sales have bounced back to levels unseen since pre-2008. If you are looking to sell your property, physical limitations need not slow you down.

12 Baffling Mortgage Acronyms Explained (UK)

Hello TRET Readers/Followers:

Please check out the Tembo article below regarding mortgage acronyms in the UK:

12 Baffling Mortgage Acronyms Explained