Experts analyzing today’s real estate market have cited profound changes during this past decade. However, an observer needs to look back another decade to understand the changes of the past decade. During the Great Recession of 2007, the downturn in the nation’s economy resulted in events causing many newly bankrupt homeowners to abandon their mortgages. However, almost two decades later, the realty business has shifted in many ways. Read on to learn more about how the realty industry has progressed and changed in recent years.
Millions of homes were available at the lowest point of the Great Recession, but few people were able to buy them. This low period is often referred to as the ‘housing crash.’ As the economy began to recover, real estate agents looked at what needed to change to enable people to invest in homes. One of the first things to change was how mortgage loans were granted.
The Consumer Financial Protection Bureau enacted a ‘Know Before You Owe’ rule. This rule was intended to provide clarity for lenders and home buyers. Mortgage loan terms are spelled out in black and white, symbolizing the new practicality of the emerging financial recovery.
New Buyer Eligibility
As the market opened, and new homes were built, those new homes were designed with eco-friendly standards in mind. Agents who could offer buildings holding a LEED (Leadership in Energy and Environmental Design) certification had an advantage. To qualify for this certification, homes and commercial buildings must have adhesives, paints, and materials that don’t emit pollutants.
Before these changes, a buyer’s felony conviction could have been turned down for a mortgage. Citing one example, in Tennessee, aggravated assault is a C-felony. A conviction for that charge could result in a three-year sentence. Yet, the financial ability of such a client to repay the mortgage is the criteria that now allow former felons to be potentially eligible for mortgage approval.
New Sources Available
The nation’s financial recovery spread to its citizens, who regained their ability to buy homes. Business owners can contribute up to 25% of an employee’s compensation to a SEP IRA account. Many people have begun to withdraw from those IRA funds to use for a home purchase.
Technology has revolutionized the way people look for homes. It has also changed the role of real estate agents. They now act less as sales agents than as sales facilitators. They use AI tools to help them analyze market trends and to predict potential home buyers’ reliability.
Attributes of a Successful Realtor
Today’s real estate agents need special attributes to be successful in the transformed real estate market. As soon as possible after beginning work in real estate, an agent should acquire as much real estate knowledge as possible. Since real estate agents will guide clients through the buying process, their knowledge of real estate and local housing regulations will be crucial to their ability to make a sale.
Because of the diversity of today’s market, agents must be detail-oriented. Guiding prospective clients through the buying process means paying attention to those details. As an agent’s experience grows, so will their reputation as an agent.
Today’s real estate market is radically different from a decade ago. New homes are now built with different standards, and people can now buy homes they wouldn’t have qualified to buy years ago. Real estate agents today must utilize more technology to assist with their jobs. It will be interesting to see what real estate looks like a decade from now, and how the market will continue to shift. Keep an eye out for any changes you may notice!