Mortgage News April 22, 2022

Three Ways to Start Doing and Stop Procrastinating

As a real estate agent, you may experience a lot of "hurry up and wait". During this time, it's common to drag your feet. But there are some tricks to stay focused and tackle procrastination head-on. Here are three ways to stay motivated and accomplish your goals:

Make a list and do the boring stuff first. To make sure you're covering all bases, create a to-do list. Then, focus on tackling the tedious items prior to completing the things you enjoy most. Take time out. Remember to take several, short 15-minute breaks when tackling your biggest tasks. That way, you'll trick your brain into thinking those seemingly impossible tasks aren't that unattainable after all. Reward yourself. When you've conquered your to-do list it's time for some personal kudos. Treat yourself to shopping or catch a movie -- you've earned it. ¹

Rising Rates May Have a Silver Lining

Vacation and second home sales rose to 6.7% of the total market share in 2021. And by the end of January 2022, vacation home sales were still climbing. If you're new to this market, here are strategies for success with vacation and second home buyers.

Homebuyers could soon catch a break in this hot seller's market. Sellers lowered prices and housing inventory grew after the average 30 year, fixed-rate mortgage passed 5% last week.

Specifically, for the four weeks ending April 3, sellers dropped their asking prices about 12% on new homes. Based on recent data, that's an increase of 9% compared to this time last year. New listings also rose 8% year over year after four repeated weeks of declines. Demand still outstrips supply, but it's good to know there may be a silver lining in rising rates.²

The Dos and Don'ts of Cybercrime Defense

Your clients trust you to keep their personal information safe during real estate transactions. Fortunately, there are simple and inexpensive ways to protect them, your business, and yourself against cybercrimes. Here are some simple dos and don'ts to help ensure data is secure:

• Do speak with clients about cybersecurity from the beginning.
• Don't use weak passwords like "password" or "abc123." Encourage clients to also prevent data breaches by choosing more complex passwords.
• Do enable two-step verification on your accounts and advise clients to implement this second layer of security.
• Don't give the green light to clients to wire funds unless you've discussed all the details with them. Cyber hackers can pose as you and steal your client's money and private information.³

The Growing Homeownership Gap

Buying is becoming out of reach for many Americans. Prices increased more than 30% during the pandemic, but wages grew by only 12%, according to a new report from the National Association of Realtors®. The report found that housing affordability dropped for middle-income households earning $50,000 to $100,000 a year. It also revealed that the homeownership rate varied significantly by race at 43.4% for Black Americans, 51.1% for Hispanic Americans, 61.7% for Asian Americans, and 72.1% for White Americans. Solutions provided to help bridge the divide include down payment assistance programs, tax incentives for first-time homebuyers, and financial literacy classes.⁴

Three Client Myths About Short-Term Rentals

Your client has a plan: Purchase a property, list it on VRBO or Airbnb, and watch the money roll in. They say short-term rentals, often called vacation rentals, will be a breeze. Yes, short-term rentals do earn owners 30% more than long-term rentals, but there's still a lot they need to know. Here are three myths about short-term rentals for your prospective buyers:

• Myth #1: All properties can become short-term rentals.
  Remember that the ability to rent a property short-term is based on zoning and municipal building codes. Buyers must understand local regulations before purchasing.
• Myth #2: Preparing properties for renting short-term is simple.
  Short-term rentals, even turnkey properties, need to include all the necessities. From purchasing durable furniture to kitchen supplies, preparing these properties for renters can be time consuming and expensive.
• Myth #3: Common knowledge is enough to operate short-term rentals safely.
  Safety measures need to be taken into consideration when renting short-term. This includes changing door lock codes after each guest, making sure smoke and fire detectors are in place, and more. ⁵

Sources: ¹mckissock.com, ²cnbc.com, ³theamericangenius.com, ⁴rismedia.com, ⁵magazine.realtor