At the moment one might hear warnings about either purchasing or selling real estate. Murmurs of global or market instability might also follow such warnings. While no one can know the future, it is safe to say that real estate is a basic necessity so the need for it will never dissipate. This in itself should offer a sense of confidence for those looking to buy or sell. Whether it is a home or a business, real estate is and has been a valuable commodity and will continue to be for the foreseeable future.
Historically, the purchase of real estate has been one of the safest investments a person can make. However, in the recent past a few changes on the national level to both the world of real estate and to the political landscape may have had an impact on buyers, sellers, and investors.
On the national level, both the NARS settlement and recent political actions have affected the real estate market. However as the old adage says, the three most important aspects of real estate are location, location, location, which, in this case, means that how an individual is affected by these recent factors will probably be based on that individual’s local market. AS is always the case, some geographic areas are in a better position to weather a period of instability whereas other areas may not be so fortunate. But much like stock market instability, if one can hold on, things will most likely get better.
The reason why both the NARS settlement and political decisions, like imposing tariffs on foreign-made products, are affecting real estate at the moment is because these events are converging at this point in time. This convergence may be responsible for the caution some are currently warning of in the world of real estate. However, just as the stock market rises and falls, so does the real estate market even in times of relative calm.
At the most basic level, the NARS settlement has changed the way that real-estate brokers are paid. Previously, the seller was the one more likely to compensate both brokers after a transaction. The seller’s agent and the buyer’s agent were often paid from the proceeds of a piece of real estate. However, a class-action lawsuit changed this practice and it has resulted in the NARS settlement, which has changed the way that buyer’s brokers get compensated. It is now required practice that the buyer enter into a written contract with a broker before that broker shows the client any potential properties. The relationship between the client and the broker is spelled out at the very beginning of the relationship in order to prevent any miscommunication. In addition to this new business practice, the tariffs imposed on imported goods adds another layer of uncertainty to both buyers and sellers of real estate.
The change in the political administration at the federal level has resulted in not only stock market instability but also real-estate market instability as tariffs placed on foreign-made goods have caused fear. The fear stems from what the repercussions of those tariffs might do to the costs of building materials. This is creating some uncertainty in the short-term. However, the idea behind imposing tariffs is allegedly one in which prices will eventually fall to more affordable levels. But in the interim, there is fear. The fear is understandable, but it should be tempered with the expectation of better times ahead because real estate is in a class by itself for a number of reasons.
Real Estate is dependable. The land upon which structures are built will not move or end up anywhere else. The local environment may change, and the structures that are built upon the land may change, but the land itself will always be in the spot it is. In that way, real estate is an investment like no other. In addition, physical structures can be updated or altered to conform to changes in zoning laws. The real-estate business refers to this as indestructibility, but it is often overlooked among the general public and is not usually used as a factor in making a purchase, especially when there is fear in the marketplace.
Real estate usually increases in value. Again it is a rare commodity in that it doesn’t often depreciate. It is a stable resource. As long as people need homes or places in which to conduct business, there will be a need for real estate. Furthermore, this increase in value offers a return on investment for anyone from the single-family home owner to the corporate business owner. The chances that real estate will rise in value are high and have been a consistent source of investment over time.
Real Estate can offer safety and peace of mind in tumultuous times and it can be handed down to others by the owner’s wishes. While the owner of a piece of real estate can personally enjoy the benefits of that piece of real estate, that owner can then provide security to heirs by willing that property to others.
Real estate can also provide income. Real estate owners may rent out portions of their real estate or run their own businesses in their real estate property. Depending on the zoning laws and the purpose of the purchase, real estate can be used for many reasons.
While societal changes may seem scary and tumultuous, real estate has remained a major feature of the American Dream and that is not about to change anytime soon. Real estate is a unique investment that can provide safety, investment, and profit. If one can ride out the storms of short-term societal upheavals, there can be tremendous reward. Real estate is an investment like no other.
At the moment one might hear warnings about either purchasing or selling real estate. Murmurs of global or market instability might also follow such warnings. While no one can know the future, it is safe to say that real estate is a basic necessity so the need for it will never dissipate. This in itself should offer a sense of confidence for those looking to buy or sell. Whether it is a home or a business, real estate is and has been a valuable commodity and will continue to be for the foreseeable future.
Historically, the purchase of real estate has been one of the safest investments a person can make. However, in the recent past a few changes on the national level to both the world of real estate and to the political landscape may have had an impact on buyers, sellers, and investors.
On the national level, both the NARS settlement and recent political actions have affected the real estate market. However as the old adage says, the three most important aspects of real estate are location, location, location, which, in this case, means that how an individual is affected by these recent factors will probably be based on that individual’s local market. AS is always the case, some geographic areas are in a better position to weather a period of instability whereas other areas may not be so fortunate. But much like stock market instability, if one can hold on, things will most likely get better.
The reason why both the NARS settlement and political decisions, like imposing tariffs on foreign-made products, are affecting real estate at the moment is because these events are converging at this point in time. This convergence may be responsible for the caution some are currently warning of in the world of real estate. However, just as the stock market rises and falls, so does the real estate market even in times of relative calm.
At the most basic level, the NARS settlement has changed the way that real-estate brokers are paid. Previously, the seller was the one more likely to compensate both brokers after a transaction. The seller’s agent and the buyer’s agent were often paid from the proceeds of a piece of real estate. However, a class-action lawsuit changed this practice and it has resulted in the NARS settlement, which has changed the way that buyer’s brokers get compensated. It is now required practice that the buyer enter into a written contract with a broker before that broker shows the client any potential properties. The relationship between the client and the broker is spelled out at the very beginning of the relationship in order to prevent any miscommunication. In addition to this new business practice, the tariffs imposed on imported goods adds another layer of uncertainty to both buyers and sellers of real estate.
The change in the political administration at the federal level has resulted in not only stock market instability but also real-estate market instability as tariffs placed on foreign-made goods have caused fear. The fear stems from what the repercussions of those tariffs might do to the costs of building materials. This is creating some uncertainty in the short-term. However, the idea behind imposing tariffs is allegedly one in which prices will eventually fall to more affordable levels. But in the interim, there is fear. The fear is understandable, but it should be tempered with the expectation of better times ahead because real estate is in a class by itself for a number of reasons.
Real Estate is dependable. The land upon which structures are built will not move or end up anywhere else. The local environment may change, and the structures that are built upon the land may change, but the land itself will always be in the spot it is. In that way, real estate is an investment like no other. In addition, physical structures can be updated or altered to conform to changes in zoning laws. The real-estate business refers to this as indestructibility, but it is often overlooked among the general public and is not usually used as a factor in making a purchase, especially when there is fear in the marketplace.
Real estate usually increases in value. Again it is a rare commodity in that it doesn’t often depreciate. It is a stable resource. As long as people need homes or places in which to conduct business, there will be a need for real estate. Furthermore, this increase in value offers a return on investment for anyone from the single-family home owner to the corporate business owner. The chances that real estate will rise in value are high and have been a consistent source of investment over time.
Real Estate can offer safety and peace of mind in tumultuous times and it can be handed down to others by the owner’s wishes. While the owner of a piece of real estate can personally enjoy the benefits of that piece of real estate, that owner can then provide security to heirs by willing that property to others.
Real estate can also provide income. Real estate owners may rent out portions of their real estate or run their own businesses in their real estate property. Depending on the zoning laws and the purpose of the purchase, real estate can be used for many reasons.
While societal changes may seem scary and tumultuous, real estate has remained a major feature of the American Dream and that is not about to change anytime soon. Real estate is a unique investment that can provide safety, investment, and profit. If one can ride out the storms of short-term societal upheavals, there can be tremendous reward. Real estate is an investment like no other.
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