Pigs might fly before you’re allowed to have one as a pet.
Let us guess: you saw that new Nicholas Cage movie, “Pig,” and were so charmed by the close relationship Cage’s character had with his beloved truffle pig that you want one of your own. Or, you love “Charlotte’s Web” and “Babe.” But hold your horses, or rather pigs, for a minute.
Yes, pigs are nice animals. They’re highly intelligent, social and friendly. You can also house train them and walk them on a leash. And yes, they’re extremely cute. Because of these attributes, unprepared owners can assume having a pig as a pet is a piece of cake. But there are a lot of different factors to consider when keeping a pig as a pet, especially for apartment renters.
Compared to traditional pets like dogs and cats, pigs are a whole other animal, literally. In some cases, pigs may not even legally be allowed in apartments. Here are some reasons pigs may not make the best pets for apartment dwellers.
Are pigs allowed in apartments?
The short answer is yes and no. Whether or not your apartment allows pigs varies, depending on factors like local laws and your landlord’s rules.
Pigs fall under the category of non-traditional pets. Animals like dogs and cats are traditional because they’ve been bred for domestic living. Non-traditional pets include rodents like guinea pigs, ferrets, reptiles and birds.
1. Your landlord and lease may not allow it
Since pigs are not traditional pets, many landlords won’t allow them as pets. If they do, they’ll likely have very specific conditions attached to protect their property from damage. Check your lease or ask your landlord directly.
While you could try to sneak in and hide a small pig, the potential for discovery and a nasty altercation with your landlord is too high. You could face eviction, higher fees and other penalties. So, always seek permission for having a pet pig in writing or submit a pet resume when applying so the landlord is aware.
Even if you’re allowed pigs in your apartment, here are some things to consider.
2. It might be illegal in your city or municipality
Your landlord isn’t the only obstacle to having a pet pig in your apartment. Many cities and municipalities have laws against keeping farm animals within city limits. If you can have one, you’ll need to follow very specific regulations and rules. Always research your local laws before purchasing a pet pig. Otherwise, you might need to re-home them or move out of the city.
3. They can get too big
If you’re considering getting a pig as a pet, you’ve likely heard of the terms teacup pig or miniature pig. Because of their small size, you think these would be the perfect option for a pet pig. But a teacup pig is not an actual species.
Some of the most popular smaller pig breeds that could make suitable pets include the Vietnamese potbelly pig and Kunekune pigs. But even these can get pretty big, growing bigger than cats and dogs and weighing anywhere between 50 pounds to well over 100 pounds.
There’s also the chance you’ll purchase a small pig thinking it’s already reached full size. But then, it continues to grow and becomes a full-size farm pig. Then, you have a full-size problem.
4. They’re expensive
Purchase costs. Special vet bills. Pig feed. Housing supplies. Any license fees. Granted, there are costs associated with having any pet. But pigs can still run up a hefty bill between all the above and more. This is especially true of porcine-specific health issues like skin disorders. Talk about a piggy bank.
5. They live a really long time
Although everyone hopes their beloved pet lives as long as possible, you may sign up for longer than expected with a pet pig. Wild pigs usually only live a few years or up to a decade, depending on predators and the environment. But with shelter, food and safety, pet pigs can live anywhere from 15 to 20 years. Just like with any pet, getting a pet pig is a commitment for life. They can also be very difficult to re-home, so really consider the consequences of surrendering one.
6. They might not get along with your other pets
While pigs are very friendly and social, they don’t always mix well with your other pets of different species. Dogs, in particular, are a problem. Both dogs and pigs are aggressive toward each other over food and territory.
7. They require special care and attention
Pet pigs need special care to stay healthy and happy. They need to get regular exercise, with either multiple daily walks or a secure, well-fenced outdoor area to play in. That outdoor area needs clean shelter areas to prevent your pig from exposure to too much sun or cold.
Regular visits to a specialized vet are a must. If you’re not home with them a lot, they’ll likely require a companion. They need a special, well-balanced diet, not slop or leftovers. This is just a beginner’s summary, so unless you have the time, energy and money to give a pet pig the specific care they need, it’s best not to get one.
8. They can get destructive
There’s a reason pigs find truffles, as you saw in the movie “Pig.” They love to root around, dig and get into things. So, if you don’t offer plenty of outdoor space to exercise and play, enrichment and other factors to keep them occupied and entertained, those natural tendencies and wild animal habits could get destructive fast.
They can knock things over, tear up the carpet and flooring, rip furniture and much more. Easily startled and scared by loud noises or disturbances, a frightened pig can panic, running around your apartment destroying things. Living with a pet pig in an apartment, you can quickly understand the meaning of the word pigsty.
9. You may need to pay extra security deposits
Those wild habits leave a high potential for lots of damage to an apartment. If your landlord does allow pigs, they may require a much higher security deposit or pet deposit as collateral. So, your move-in fees would be even higher than usual.
10. You’ll have to pay for repairs
If your pet pig does end up doing damage, it’s not just your security deposit that you’ll lose. You’ll likely have to pay out-of-pocket for repairs. Depending on the damage, this could be hundreds to thousands of dollars.
This is why it’s also important to take dated photos of your apartment before move-in. That way, you won’t have to pay for any pre-existing damages your pig didn’t cause.
11. They can create a lot of noise
When scared, pigs also squeal and scream very loudly. Even in an apartment complex with good soundproofing, your neighbors are bound to hear an upset pig. Mad neighbors and complaints about loud noises, which could even lead to the police or legal intervention, are another reason not to keep a pig in an apartment.
12. They can smell
Pigs themselves don’t smell. It’s their manure that gives people the idea that pigs are smelly on their own. While you can keep your pig clean with regular bathing and grooming, their waste is another matter. You can house-train them, but the place where they do their business will still smell strong. And accidents happen, so they may leave a large, smelly surprise on the floor. In an apartment complex, those smells can go through walls and linger unless you use top-quality cleaners and odor eliminators.
Other types of animals to consider for an apartment pet
Whether it’s not allowed or you’ve decided it’s not the best option for you, you’re not getting a pig as a pet for your apartment. Luckily, there are many other animals that can make great apartment pets. If you wanted to get a pig because of its friendliness and sociability, you can get a dog instead. Many cat breeds are also very friendly and social.
If you really want an alternative, non-traditional pet, there are many different routes. Rodents like hamsters, guinea pigs and gerbils are very sweet, snuggly and easy to care for. Rabbits can also be wonderful companions. If you’re willing and able to put in the time and energy for proper care, more high-maintenance pets like reptiles or birds are also an option.
Living in an apartment with a pet pig isn’t as happy as a pig in clover
Even if your apartment allows pigs, they’re not the best choice in pets. While you’re in love with the idea, their happiness and quality of life matter above all else. So, if you can’t provide the best care and home for them and give them what they need, it’s better to either shelve that dream or start looking for places to live out in the countryside.
Zoe Baillargeon is an award-winning writer and journalist based in Portland, Oregon, where she covers a variety of beats including travel, food and drink, lifestyle and culture for outlets like Apartment Guide, Rent., AFAR.com, Fodor’s, The Manual, Matador Network and more. In her free time, she enjoys traveling, hiking, reading and spoiling her cat.
Inside: Looking to celebrate Christmas on a budget? This guide has you covered with creative and affordable ways to do just that.
Are you stressed out about how to afford a fabulous Christmas on your budget? Worry not.
This festive season isn’t about how much cash you fork out, it’s about creating lasting memories and spreading joy.
Why let financial woes dampen the joyous yuletide spirit when you can celebrate a charming Christmas on a budget?
Remember, it’s your money, your decisions, and your rules – no guilt trips or social pressures should force you into spending Christmas in debt.
Today you will learn:
Determine your Christmas budget: Figure out what’s a comfortable amount for you to spend and stick to it religiously.
Be creative with gift giving: Homemade presents or heartfelt letters can be more valuable than pricey items.
Find simple ways to save money: Use these money saving tips to enjoy a festive holiday season.
This holiday season, celebrate responsibly, within your means, for a Christmas that’s merry, bright, and totally guilt-free!
Why Celebrate Christmas on a Budget?
Embracing a budget-friendly Christmas can prove to be not only a smart choice but one filled with warmth, delight, and genuine joy.
Enjoy valuable family bonding time with exciting games and shared activities. Volunteer work, a day of holiday baking, or a simple drive-through Christmas lights sightseeing trip can leave a lasting impression. Look through this Christmas bucket list.
Opt for economical, yet thoughtful gifts or stick to fun gift exchange rules, such as the “four gift rule” for your kids. Remember, it’s the sentiment behind the gift that matters the most.
In essence, an economical holiday season needn’t be a dull affair, rather it’s an opportunity to make it more heartfelt and unforgettable.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What to buy for Christmas on a tight budget?
Yes, friend, you can buy meaningful Christmas gifts while sticking to a budget.
In fact, the thought behind a gift is often what makes it special, not the price tag.
A few ideas include homemade gifts, gift cards, subscriptions, and second-hand items. With a little creativity, you can find the perfect present for everyone on your list without spending a fortune.
Below you will find plenty of great gift guides for Christmas that won’t break the bank.
Benefits of a Budget Christmas
1. Allows you to plan ahead and stay on track 2. Prevents overspending 3. Buy gifts that are within your budget 4. Focus on quality over quantity 5. Ensures that everyone gets a gift 6. Helps you avoid debt during the holidays 7. Prevents you from feeling stressed out about money during the holidays 8. Be creative and come up with unique gifts 9. Save for next year’s holiday budget 10. Stay connected to the spirit of the holidays
Savings with Christmas on a Budget
From homemade Christmas decorations to unique gift ideas, it’s possible to create magical moments that’ll last a lifetime without a hefty price tag.
Embrace the true spirit of Christmas – love, family, and togetherness, rather than commercialism, and read on to discover how.
Learn the simple ways to celebrate the festive season without breaking the bank with our creative and budget-friendly Christmas ideas.
1. Think about a No Gift Christmas
Having a No Gift Christmas is a creative and budget-saving alternative to traditional holiday festivities, especially suitable if funds are tight. Why not consider it?
Here are some benefits:
You can alleviate the holiday stress often associated with spending on gifts.
It fosters the idea of Christmas as a season of togetherness, not just gift-giving.
It offers the potential for unique and memorable experiences, like volunteering or creating fun traditions with your loved ones.
Remember, having a memorable Christmas doesn’t have to cost much, or anything at all Learn more about a no gift Christmas.
2. Make Your Own Gifts
DIY Christmas gifts are your perfect solution. They not only save pennies but are laced with your love and creativity.
Start by exploring plenty of creative gift ideas available for free online. Need help? Look for “homemade gifts for Christmas” and you’ll be surprised.
Compile a list of possible gifts from homemade candles to personalized coupon books, keeping the recipient’s likes in mind.
Remember, your efforts will reflect in your gift. So, unleash your creativity and let the magic begin.
3. Borrow Instead of Buy
Borrowing instead of buying is a clever way to have a festive holiday while keeping things budget-friendly. This concept is simple: swap decorations, games, or even gifts with friends, neighbors, or family
Discuss your idea with your circle and organize swapping parties to exchange items.
The key is to creatively engage and make it a fun, budget-conscious activity. After all, Christmas is about sharing and caring!
Remember, return borrowed items in their original condition to maintain trust.
4. Attend Free Events
The Christmas season doesn’t have to be a strain on your wallet. Attending free community events can provide fun and festive celebrations:
To find these events, check your local newspaper or community websites. Be sure to:
Take advantage of free refreshments, but also bring your own to share.
Consider hosting a potluck dinner before or after community events.
Attending free events supports your local community.
Remember, Christmas is about togetherness, not extravagant spending.
5. Make Your Own Decorations
To create a festive atmosphere this season, you could repurpose items around your house or make your own decorations.
Choose a color theme and gather items in those shades, then place them together on a mantel or coffee table to create a coordinated layout.
For a natural touch, clip pine needles, branches, or herbs from your garden, and enhance them with glitter.
Additional budget-friendly options include taking advantage of sales and discounts at thrift stores or crafting handmade decorations such as ribbons from fabric strips or Christmas cookie ornaments.
6. Keep Track of Your Christmas Expenses
Just like throughout the year, budgeting is critical to your financial success.
Nothing changes with Christmas, it is crucial to track and budget your holiday expenses. Jot down every potential cost – from the Christmas tree, and food, to holiday décor.
Be thoughtful about what you really need and opt for items you can use for years.
This is one of the cash envelope categories I recommend saving for. To effectively manage your expenses, assign specific dollar amounts to each item on the list, ensuring you stay within your budget.
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7. Share the Spirit
Embracing frugality during the holiday season can not only help you save money, but can also create memorable experiences and meaningful connections.
Small gestures, such as sending heartwarming physical letters to loved ones instead of emails, can still convey thoughtfulness and spur the holiday spirit.
By centering your holidays around family activities and endeavors, like homemade ornaments or a scavenger hunt with small gifts, the focus shifts from materialism to fellowship and unity.
Find more frugal Christmas ideas.
8. Check Out Bargain Stores
Bargain stores provide the perfect solution for savvy holiday shoppers looking to save money without compromising on quality or variety. Not only can you find unique, quirky gifts, but you can also keep a lid on your spending while doing so.
Stores like consignment shops or websites such as Craigslist often have high-quality used toys that are nearly new if you’re willing to look carefully.
Another option is to look at discount retailers like TJMaxx as they often host sales during the holiday season, making it even easier for you to save money while hunting for the perfect gifts.
9. Save Money Throughout the Year
Automating your savings for the Christmas season can be a practical and efficient strategy. The 100 envelope challenge is perfect for this!
By setting aside just $50 each month, you could accumulate up to $600 by December, providing a decent budget for your holiday expenses. This method can ease the financial stress during the holiday season, letting you enjoy the festivities without worrying about overspending.
Consider setting up automatic transfers to a high-interest savings account. This ensures your Christmas funds grow without your intervention.
Lastly, try a no-spend month where you only cover essential bills, giving your savings a significant boost.
10. Start a Side Hustle for More Money to Spend
Engaging in side hustles throughout the year can help you significantly cover your holiday expenses.
By delivering food, completing microtasks, selling gently used items, or shoveling snow, you create extra earnings that can go directly into your Christmas fund.
For instance, extra income from a seasonal retail job could help finance gift-purchasing without straining your usual budget.
This strategy not only prevents potential post-holiday debt but also allows you to enjoy the season without financial stress.
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11. Shop Online Instead of Going to the Mall
Shopping online for your Christmas gifts can seriously ease your holiday stress, and potentially save you money.
Let’s explore why skipping the mall and clicking your way to a merry Christmas might be your best bet this year:
No dealing with holiday crowds or cranky shoppers.
Enjoy sales and deals without leaving your home.
Track prices over time to grab the best deals.
Use Rakuten to save even more money on purchases.
For smart online shopping, prepare a list of gifts before diving in. Take advantage of the “wish list” option on platforms to curate items of choice and make sure you first glance over deal sites before making purchases.
12. Have a Christmas Potluck
Host a festive potluck! Invite friends and family, asking each to bring their favorite dish.
Here are some tips for a successful event:
Get organized and ask guests to bring specific types of food. This prevents duplicate dishes and ensures a balanced meal.
Introduce a fun element. Try a cookie swap or a silly game like “Guess the Cookie.”
Keep decor simple. A large vase filled with greenery and baubles can effectively replace a pricey Christmas tree.
Remember simplicity is key in food and decor. Costly ingredients and complicated recipes aren’t prerequisites for a memorable Christmas.
Remember, the holiday is about togetherness, not extravagance!
13. Make Your Own Cookies
There’s a unique pleasure derived from making your own cookies during the holiday season instead of buying them. More so, the cookies you’ve invested your time and creativity into can double as thoughtful, homemade gifts, adding another level of sentiment.
Apart from being a cost-effective option, it brings an opportunity to bond with friends and family during cookie exchange or decorating gatherings.
Making your personally crafted cookies also gives you control over ingredients catering to specific dietary needs or preference
Indeed, making your own cookies adds value that surpasses the mere cost savings, it infuses the holiday season with warmth, joy, and a sense of shared experience.
14. Cross Off Activities from your Christmas Bucket List
Having a joyful Christmas doesn’t necessarily mean overspending. In fact, integrating cost-effective activities into your holiday routine can make the season more meaningful and fun.
This Christmas Bucket list post offers an extensive and diverse list of creative ideas for budget-friendly Christmas shopping, gifting, and celebrating.
Additionally, downloading the free printables and a Christmas Budget Template will make the process even more manageable and fun.
15. Have a No-Gift Party
A no-gift Christmas party is an affordable and fun holiday celebration where attendees do not exchange gifts. It’s a great option for those looking to save money and still enjoy the festive season.
Here are steps to make it happen:
Step 1: Decide on the party type, either a simple gathering or a potluck dinner.
Step 2: Inform guests about the no-gift policy in advance.
Step 3: Organize exciting, cost-effective activities such as a game night.
Step 4: Engage guests with games for a joyful event.
Expert Tip: Conversation and laughter are your best tools.
16. Make a Christmas Memory Book
Creating a Christmas memory book is an affordable and engaging way to celebrate the holiday season, especially when you’re on a tight budget.
To start, you can utilize items already at your disposal in your house such as old photos, greeting cards, and crafts.
Spend some time penning down heartfelt messages and your favorite holiday memories associated with each picture or craft. Embellish the pages with affordable decorating materials like glitter, stickers, or color pens.
Not only does this create a personalized touch, but it also serves as a nostalgic keepsake that can be cherished for years to come.
Tip: Digitize your memory book by creating an electronic version. This can also help preserve the original items.
17. Spend Time With Loved Ones
Celebrating Christmas on a budget doesn’t mean skipping on the fun.
It’s about cherishing time spent with loved ones, harnessing creativity, and making priceless memories that last a lifetime.
Here are some cost-effective activities you can embrace this festive season:
Share stories of memorable Christmas experiences.
Organize virtual celebrations with extended family and friends.
Create your own family-themed board game.
Bake Christmas cookies or make a popcorn Christmas tree.
Stream a Christmas church service.
If snow is around, engage in snow play.
Dance to classic Christmas music.
Put together an annual family calendar.
Participate in one of these Christmas Challenges!
Remember, it’s not about what’s under the tree that matters, but rather, who’s around it.
18. Stash Christmas presents all year
Do what I do! Begin addressing the issue of holiday budgeting by stashing Christmas presents all year round.
This is a smart and stress-reducing move!
Find deals throughout the year rather than spending lavishly in December. Hang on to items like discounted gifts in your secret gift closet!
As you build an inventory of diverse items, you will be ready for birthdays or sudden party invites – you’re always prepared!
Just be careful to stop shopping when your list is fulfilled to avoid overspending.
19. Write a Christmas Gift List
Creating a Christmas gift list can be an effective way to manage your holiday spending. This helps you understand the overall picture of your holiday expenditure.
Start by writing down the names of every person for whom you consider buying a gift.
Then, determine how much you’re willing and able to spend on each individual. This helps you understand the overall picture of your holiday expenditure.
Take time to brainstorm potential gift ideas within your decided budget for each person. This process can be even easier and more informative if you’re able to reference a gift list from previous years.
Ultimately, the goal is to ensure that your total intended spending is reasonable and manageable for your personal financial situation.
Remember, you may not need to buy gifts for everyone on your list – some individuals might appreciate homemade or free gifts just as much.
20. Choose Great holiday things to do for less
Set aside the societal notion of linking the joy of holidays to copious spending, and welcome small, inexpensive, yet heartfelt gestures.
Adopting a mindset that finds value in low-cost or even free activities, especially during the holiday season, can not only alleviate financial pressure but also create cherished memories.
Instead of focusing on extravagance and materialistic desires, turning attention to experiences and emotional bonding can revolutionize the celebration!
You can always find things to do on Christmas Day.
21. Think Outside the Box With Gifts
Finding affordable gifts doesn’t mean you have to sacrifice quality or thoughtfulness.
By utilizing a gift guide such as the 4 gift rule – something they want, need, to wear, or read – you can ensure a well-rounded and meaningful set of gifts for each child.
Alternately, consulting lists of inexpensive yet creative suggestions like those curated by Money Bliss can help you find unique presents that won’t break the bank. These affordable finds range from books, gadgets, to personal care items, and home accessories.
Regardless of budget, the key to successful gift-giving lies in understanding the recipient’s needs and interests.
22. Consider Re-Gifting
Re-gifting is a practical, budget-friendly, and environmentally-friendly way to celebrate Christmas. It allows unused or unwanted items another chance to be appreciated and might save you some cash too.
Here are some regifting tips:
Ensure the gift is in good condition, unwanted but quality, and not linked back to its original giver.
Consider the preferences of the new recipient, ensuring the gift suits them.
Completely re-wrap the gift to give it a fresh appearance.
Some may debate the etiquette of re-gifting but remember, it’s more about the thought and less about where the gift originated.
Making smart choices can ensure a successful and fun re-gifting experience this festive season.
23. Use Gift Cards or Cash App to Stay on Budget
Purchase a prepaid gift card from your favorite store to ensure you’re limiting your spending to a specific amount and preventing the temptation of overspending.
If you’re planning to shop from a range of places, opt for a Mastercard of Visa prepaid card. While there may be an activation fee, it’s ultimately going to be less than what you’d potentially overspend.
Another great option is using the Cash App card and learn where you can load your Cash App card.
Also, you can use budget tracker apps like YNAB or Simplifi. These can help you meticulously keep track of your spending and stay within your budget.
Remember, the key is to stick to a budget and avoid falling prey to impulsive purchases. Using gift cards or these budgeting apps makes it easier to limit and monitor your expenses.
24. Use Money Gift Ideas Wisely
Money gift ideas can be an excellent alternative to traditional presents, especially when budgeting is a critical aspect.
Too many times, money gift ideas are overlooked as impersonal, but a money gift box or money cake will definitely surprise the recipient.
This will guarantee you will stay within your target budget by using money gift ideas.
For larger families, a gift exchange with a set price limit can keep costs manageable.
25. Donate to Charity Or Volunteer
Volunteering at a charity is a meaningful way to give back during the holiday season that doesn’t put a strain on your budget.
Instead of buying more items a person may not need, you’re investing time, money, and energy in causes they care about. Although this doesn’t require a financial commitment, it’s a generous gift full of sentiments.
Furthermore, donating money to a charity in someone’s name is a thoughtful and effective way to honor someone who already has everything they need. It allows the recipient to feel the joy of giving, yet remains a budget-friendly option for the giver.
If you’re keen on frugal yet meaningful ways to celebrate Christmas, how about considering charitable donations? It’s a splendid alternative to traditional gift-giving – not hard on your wallet, plus it makes a difference!
Most people know it is hard enough to buy gifts for the woman you who has everything or kids who have everything.
How to Make a Christmas Budget
A lot of joy and goodwill is associated with the holiday season; however, it also brings with it the challenge of managing finances meticulously to avoid slipping deep into credit card debt.
One of the effective ways to keep your finances under control during this festive time is by creating an efficient Christmas budget.
In the following sections, we will delve in detail into the simple process of creating a feasible Christmas budget that you can adhere to.
Step 1: Decide What You Want to Spend on Christmas
Determining how much to spend at Christmas depends on your individual budget and financial situation.
On a general basis, most people will overspend at Christmas in order they don’t look broke or not generous.
However, that thought process is backward if you are trying to reach your financial goals. You need to decide on how much you want to spend at Christmas time.
That is why these consumable gifts tend to be popular.
Expert Tip: Avoid surpassing your Christmas budget to prevent feeling the pinch of holiday debt later on. Stick to your allocations and plan things out in advance.
Step 2: Make a List of Christmas Gifts
Creating a list is essential for budget-friendly and stress-free Christmas shopping.
This prevents you from forgetting someone important by intuitively documenting all the people you intend to get gifts for. Also, allows for the clear allocation of your total Christmas budget, preventing overspending on some individuals and under-spending on others.
If you aim to economize, consider the 4-gift rule: something they want, something they need, something to wear, and something to read. This method provides thoughtful gifts for children while maintaining a manageable budget.
More importantly, a well-planned list significantly reduces the time spent shopping and aids in buying gifts early before the holiday rush begins.
Expert Tip: Don’t forget to consider items like stocking stuffers, last-minute gifts, or teacher’s gifts, and the cost of extra food for holiday gatherings.
Step 3: Prioritize Your Spending
Prioritizing where to spend money relative to your financial goals is crucial to achieving long-term financial stability and health. It ensures that your money is allocated effectively, giving priority to necessities and matters that directly support your objectives.
This practice can also prevent unnecessary expenditures and helps in averting serious overspending, especially during high-spending periods like the Christmas season.
Thus, you will need to prioritize your Christmas budget before the festive season. It helps prevent overspending and keeps you debt-free.
Step 4: Limit Your Christmas Spending
First, it is important to abandon the notion of a “perfect Christmas” and focus on enjoying the holiday within your budget.
You can even educate your family members about the concept of holiday budgeting and involve them in your planning process.
Consider proposing less expensive alternatives to traditional gift-giving within your extended family such as handmade or recycled gifts, or conducting a white elephant exchange with budget-friendly novelty items.
Don’t overlook smaller gifting costs that can accumulate, like Christmas stockings – instead fill them with practical, affordable items that your family needs.
Save money on wrapping supplies by using items readily available at home like newspaper or butcher paper and involve the kids in a fun, cost-saving activity by having them create homemade gift tags.
Remember, sticking to your budget doesn’t mean letting go of the Christmas spirit. It’s about celebrating responsibly and starting the New Year without financial stress.
Step 5: Ignore Sales and Keep it Simple
Sales, sales, sales – the deal is too good to pass up!
Here are key ways to overcome this common dilemma.
Resist impulsive purchases compelled by sales, and stick strictly to your shopping list.
Pause before purchasing an item not on your list, consider the necessity.
Keep emotions in check, they run our shopping decisions.
Conquer emotional spending, stay true to your budget.
Discourage additional spending once your list is fulfilled and the budget exhausted.
Remember that it’s better to focus on affordable presents rather than seeking the perfect, but expensive, gift.
Step 6: Shop for Christmas Gifts Early
Start early. Begin watching for sales on items from your Christmas gift list way before the season’s rush.
Begin monitoring for sales early, especially during holidays that precede Christmas, to stretch your budget further.
Make use of Black Friday and Cyber Monday. They provide excellent opportunities to snag deals on your gifts.
Expert Tip: Remember to stick to your list. If it isn’t on your list, pass it up. It’s challenging but keeps your budget in check.
Step 7: Reuse and Recycle Holiday Decorations
Start by taking stock of items in your house. Don’t limit yourself to traditional decorations—choose a color theme and scan your home for items that fit and can be repurposed.
Use the resources outdoors. Pine branches, pine cones, mistletoe, and holly can be fashioned into decorations from nature’s catalog.
Even consider trading decorations with friends or family. This can bring a new look to your home without the need for new purchases.
Get creative with items from dollar stores that can be combined to appear high-end and save costs.
How to buy gifts for Christmas on a budget?
Maintaining a budget doesn’t mean you can’t enjoy giving gifts this Christmas.
Use these gift guides to help you out:
Remember, the joy is in the giving, not in the cost of the gift.
Time to Create Your Holiday Budget and Make it Memorable
Regardless of your financial situation and the extent of your holiday plans, this guide will help you maintain financial stability while fully embracing the Christmas spirit.
By setting aside a prescribed sum for your holiday expenses, you’re able to enjoy the season without the stress of unexpected expenditures or financial shocks after the holiday haze has cleared.
Celebrating Christmas on a budget doesn’t mean skipping the fun or the warmth.
With just a dash of creativity and thoughtful planning, you can make the yuletide season enjoyable and meaningful without breaking the bank.
Use the festive tips provided and start planning your budget-friendly Christmas now. Remember, the true essence of Christmas isn’t in extravagant spending—it’s about love, joy, and spending quality time with those who really matter to you.
Don’t forget to access a free printable worksheet for your customized holiday budget.
Know someone else that needs this, too? Then, please share!!
The second quarter 2023 was a boon for real estate teams, beating out financial performance in Q1 2023, according the Streamlined Quarterly Team Benchmarking Report, which looked at the financial performance of more than 200 teams across the nation.
Steamlined, based in Arizona, has a roster of hundreds of U.S. real estate teams and individual agents as clients for their accounting and bookkeeping services. The firm confirms actual financial and operational details of these businesses and assemble the data in useful benchmark studies to help their clients assess how effectively they are operating.
“This is extremely valuable information, not only for teams but also for the brokerage firms with whom they are affiliated,” says Steve Murray, senior advisor to HW Media. “A clearer understanding of the performance of teams helps everyone understand the impact of the growth of the organization and performance of teams and confirms the importance of LG in the industry.”
The second quarter performance analysis shows the benefit of scale as revenues had their normal seasonal upturn while many costs remained fixed, resulting in increased gross and net margins among all sizes of teams.
Small teams had highest increase in net margin
Teams in every size category saw an increase in Gross Margin (GM), with teams having annualized revenue between $300,000 and $550,000 seeing the largest increase in GM from 72.5% to 76.3%.
Teams in the smallest category of size, having less than $300,000 in Gross Commission Revenues (GCI), had the largest increase in Net Margin (NM), whereas in Q2 2023 it grew from 36.9% of GCI to 49.3% of GCI. Imagine a pretax profit margin of nearly 50%?
The largest teams had net margins of 18.8%. Compare this to the average of all brokerage firms for the past 12 months, published by RTC Consulting, of gross rates of less than 14% and NM of less than 4%.
Two of the main factors impacting the improvement in net margin were the decline in spending of salaries/benefits and lead generation. In every size category, these costs as a percentage of GCI declined in a material way.
“It appears from these results that teams are keeping these costs fixed in terms of the dollars spent,” says Murray. “As the seasonal upturn in housing sales experienced across the board this year in Q2 (which does happen virtually every year) and GCI and GM followed this upturn in sales, then it follows that the percentage spent in these categories would fall.”
Team operating costs declined
Total operating costs for all sizes of teams declined in Q2 as a percentage of GCI, as well. Interestingly, it was the category of teams doing between $1.5MM and $3.0MM of GCI that saw the largest decrease, dropping operating costs from 37.7% of GCI to 29.0% of GCI, or a decline of 23.1% from Q1 to Q2.
The category that had the next highest decline in expenses was the smallest group doing less than $300,000 in GCI, which saw these costs fall from 42.6% of GCI to 33.6% of GCI, a decline of 21.1%.
“It would be expected to see the smallest teams have the lowest costs and have the most leverage. They are small and focused and have the lowest fixed overhead, generally,” says Murray. “What is surprising is how teams as large as $1.5 to $3.0 million also have used both their scale and leverage to drive operating costs down as a percentage of GCI as well as increase their NM.
Q1 versus Q2 2023
In terms of changes in results from Q1 to Q2, it was also those teams with GCI between $1.5MM and $3.0MM that had the largest increase in NM, at 63.8%. The lowest increase was that of teams between GCI of $550,000 and $800,000, at 22.5%. One quarter of results are not convincing as to whether the small teams or the largest teams can execute on scale and leverage, but it is an indicator worth examining in future reports.
“Should anyone question where the money has flowed over the past 10 years and what form of business enterprise is still performing well, then these findings confirm that it is teams that have figured out how to make a profit in good markets and poor markets,” says Murray.
In this quarter, Cost of Sale barely fluctuated as a whole, reconfirming this is an average cost of closing revenue.
Overall, the data seems to suggest that as the annual revenue increases, there are rising costs and shifting priorities in spending, leading to a decrease in net income percentage. This may indicate challenges in scaling the business efficiently or a strategic decision to invest more in certain areas, like lead generation, at the cost of profitability.
Streamlined, RTC Consulting and HWMedia are teaming up to share this data with our readers to help create transparency in the results of over 200 teams. We will publish these results on a quarterly basis roughly 45 days after the end of each calendar quarter.
David Pittiglio is the CEO of StreamlinedBusiness Solutions.
In our latest real estate tech entrepreneur interview, we’re speaking with Christopher Burnley from Corefact Corporation.
Who are you, and what do you do?
I am Christopher Burnley CEO of Corefact Corporation. My background is in software engineering. I find passion in building teams and products to empower real estate agents in their business. While TV shows agents driving around in a Mercedes Benz, in the real world agents have a difficult job that add enormous value to their communities. My job is to find ways to make their jobs and lives easier so they have more time to spend with their loved ones.
What problem does your product/service solve?
Corefact provides marketing products and services for real estate agents that list properties. These products include lead generation marketing to get new listings and products to market active listings include print, direct mail and digital marketing products.
What are you most excited about right now?
I am both excited and scared about machine learning. Machine learning (AI) can be a powerful tool to make business and life efficient, but there are also a number of side-effects that are/will disrupt society as we know it. Progress is certain, but it is our job to shepherd the technology into an ethical and sustainable future.
What’s next for you?
My goal over the next five years is to continue to grow Corefact. The keys to success will be to continue to build a solid team that can solve the challenges of the future. We will continue to grow our product portfolio including products in adjacent spaces. We will continue to explore deeply our customer needs and challenges and build new solutions to meet those challenges.
What’s a cause you’re passionate about and why?
I am passionate about youth soccer and volunteer as a referee for AYSO. The game instills teamwork and leadership to the children who participate. It also keeps them very active and in good health. The organization is entirely volunteer so it is important that parents get involved and participate. My kids haven’t played soccer in a few years, but I continue to volunteer each year.
Thanks to Christopher for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
DSCR, Non-Del, CRM, Pricing Engine, Real Estate Agent Products; STRATMOR Customer Service Workshop; NAR President Resigns
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DSCR, Non-Del, CRM, Pricing Engine, Real Estate Agent Products; STRATMOR Customer Service Workshop; NAR President Resigns
By: Rob Chrisman
3 Hours, 5 Min ago
“What did the happy real estate agent put on her sign? I have lots to be thankful for.” (Feel free to use that gem at your next presentation at Sotheby’s.) In response to yesterday’s opening paragraph comments about housing supply, from Maryland Ken Sonner sent an article about how New Zealand managed to shift its zoning to help alleviate the supply issues and lower rents. People like lists for some reason, and here is the “The 15 most in-demand ZIP codes for U.S. homebuyers, and #1 is in Ohio.” But heading back to inventory, affordable housing, and such, the topic is certainly percolating up to Capitol Hill. A bipartisan duo in the U.S. Senate introduced a bill that would address a shortage of affordable housing in rural communities by easing the process for non-profits to acquire properties with USDA rural housing loans. It would also decouple the related rental assistance so that the assistance doesn’t end when the mortgages mature. (Today’s podcast can be found here and this week’s is sponsored by Black Knight. Black Knight is an award-winning software, data and analytics company that drives innovation in the mortgage and real-estate industries, and the capital and secondary markets. Listen to an interview with Servbank’s Anthony Forsberg on default and loss mitigation.)
Lender and Broker Software and Services
Don’t discount the value of prioritizing your customers. Many servicers are adding customer-focused technology to give homeowners self-service options and more. Just take it from AimLoan, an internet-direct mortgage lender that recently implemented MSP®, Black Knight’s loan servicing system, along with several other customer-focused solutions. After recently moving its servicing portfolio in-house, AimLoan needed proven technology to enhance the customer experience of today and prepare for growth of tomorrow. Ready to join AimLoan by enhancing the way you serve your own customers? Learn more about MSP today.
Get valuable face time with real estate agents: host your own For Sale to Sold workshop. MGIC’s ready-made workshop kit makes it easy for loan officers to guide agents to a deeper understanding of the mortgage process. The benefits of hosting your own workshop? You’ll position yourself as an expert, build stronger relationships and earn more referrals. Request your For Sale to Sold workshop materials to get started.
Loan servicers are invited to attend a free webinar on the MERS® Annual Report and third-party review process next Thursday, September 7th, at 3pm ET. Hear from the experts at Falcon Capital Advisors, an experienced and trusted third-party review firm, about the Annual Report process and how your organization can ensure it remains compliant with MERS® System requirements. Click here to register.
You don’t have to accept lower profitability when loan volume is down. Instead, find efficiencies in your mortgage process that add up to cost savings and bolster your bottom line. Loan officers using Maxwell Point of Sale achieve more with less work, closing 20% more loans and moving loans to clear to close 35% faster. Maxwell POS syncs with your LOS bi-directionally, keeping real-time data in one place for easy management and seamless updates and preapprovals. Managers have visibility into the team’s entire pipeline, allowing them to identify opportunities for quick adjustments and better results. If you’re ready to maximize your mortgage operations and take advantage of every basis point, schedule a call with the Maxwell team.
In today’s low-volume, purchase-focused market, every mortgage lender’s goal is to optimize their profits and overall efficiency. The catalyst? The right product and pricing engine. In a recent article with HousingWire, industry expert Parvesh Sahi of Polly emphasizes three critical components to thrive in this ultra-competitive market environment: 1.) Speed to market, 2.) Margin management, and 3.) Loan officer experience and education. According to Sahi, creating the connective tissue between these three primary components is an enormous opportunity. Are you taking it? Learn more, here: Why the right PPE matters.
“It’s no surprise that many mortgage lenders use more than one channel to maximize loan origination opportunities. Maybe you’re a traditional retail shop with a growing consumer direct team, or you decide to shift resources to wholesale while your retail group rides out a rough patch. What is surprising is how many lenders use two or even three different CRM systems to meet their multi-channel needs, each one increasing the inefficiency and cost of their sales and marketing. Download our free guide, “How to Find the Ideal CRM” and learn how to streamline your tech stack and improve sales and marketing performance across all your channels.”
Broker and Correspondent Products
“Brokers: Are you attending NAMB National? Meet NexBank’s team at booth #12 and learn why we are a trusted investor and warehouse bank partner to brokers and correspondents nationwide. NexBank is continuously ranked as a top lender by Inside Mortgage Finance, and we continue to grow in the wholesale and correspondent space. Our wholesale and non-delegated channels offer a suite of Portfolio, Conventional, FHA and VA products. Our competitive portfolio products include Full Doc and Reduced Doc (Non-QM), available for loan amounts from $200,000 to $2 million, with ARM and Fixed Rate options, along with Interest Only. Ask about our unique 6-month ARM! Plus, portfolio loans have no LLPAs for FICO or second homes and allow cash-out to 80 on primary with no dollar cap on cash-out amount, where applicable by law. Contact us. Restrictions apply. Subject to change. For mortgage professionals. Not intended for general public. Member FDIC. Equal Housing Lender. NMLS 672886.”
Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.
STRATMOR Customer Experience Workshop
According to data from Gartner, two in three companies say customer experience is the primary area where they will compete for business. Lenders, how is your business utilizing customer feedback to drive revenue growth in today’s challenging market? Need help? Join STRATMOR Group’s customer experience experts as well as peer lenders for STRATMOR’s Customer Experience Workshop on September 25, 26 and 27. This highly interactive, virtual workshop is designed to give lenders specific, actionable ideas: you’ll learn how to optimize your loan processes to maximize repeat and referral business and achieve your growth goals in challenging market conditions. Register today!
Capital Markets
With a light day of data to open the week, investors continued to mull over Fed Chair Powell’s Jackson Hole Speech, which had a rather hawkish tone as he vowed to hike rates further, if necessary. Investors in Fed Funds futures got the message, ramping up bets that the Federal Open Market Committee will hike rates by an additional 25 basis points at the November meeting. The U.S. Treasury sold $45 billion in 2-year notes yesterday morning and $46 billion in 5-year notes in the afternoon, with both offerings meeting good demand ahead of today’s $36 billion 7-year note auction. We have a heavy week of data coming up with home prices and consumer confidence today, GDP tomorrow, the PCE Price Index on Thursday, and the jobs report on Friday.
Keeping things in perspective, two weeks ago, markets were buoyed by an upwards surprise in retail sales. However, last week’s durable goods report showed orders fell 5.2 percent in a sign that business investment is slowing. Despite potentially lower jobs gains, initial unemployment claims have remained fairly consistent throughout the year and were at a three-week low last week. Given the record over-supply of available jobs over the last year, the softening in the labor market may presently be manifesting itself in less job openings rather than increasing layoffs. There were about 14 percent fewer job openings as of August 18 than on January 1. Existing home sales fell for the second consecutive month in July as higher mortgage rates reduced demand as well as supply. Lower supply has put upwards price pressure on the limited existing homes availability. This allowed builders, armed with price and rate incentives, to insulate themselves from the housing slowdown. New home sales were up 4.4 percent in July. While recent inflation data is encouraging, hawkish talk from Fed officials has the markets split on whether another rate hike will be necessary before the end of the year.
Today’s calendar gets under way later this morning with Redbook same store sales and will be followed by home prices from S&P /Case-Shiller and the FHFA for June, July job openings from JOLTS, consumer confidence for August, Dallas Fed Texas services for August, the aforementioned Treasury auction of 7-year notes, and remarks from Fed Vice Chair of Supervision Barr. We begin Tuesday with Agency MBS prices roughly unchanged from Monday and last Friday and the 10-year yielding 4.20 after closing yesterday at 4.21 percent. The risk-free 2-year T-Bill is at, or above, 5.0 percent for the sixth straight day.
Employment, transitions, and NAR President resignation
“Citizens Wholesale Lending: If you’re an Account Executive looking for a solid Wholesale Lender, look no further than Citizens! Citizens Wholesale has been supporting the Broker and Non-Del community for the past 28 years with a commitment to delivering a best-in-class experience. As the mortgage landscape continues to evolve, Citizens remains a strong pillar for the Wholesale industry. We are currently hiring Account Executives in GA, NC, and SC to join one of the strongest bank-owned wholesale lenders in the country. If you’re interested in an opportunity to thrive and be a part of a winning team, learn more at our jobs page today!”
Allen Friedman, an industry veteran and long-time friend of this Commentary, has returned to his home of over 10 years, iServe Residential Lending. Allen joins iServe as Executive Vice President and will help to further develop and expand the company’s strategic growth and development initiatives. Co-CEO Ken Michael states “We are thrilled to have Allen back in this leadership role. He helped to create our culture and shares in our desire to ensure that iServe is a company that both MLOs and Branch Managers can join to build something extraordinary. With a can-do culture, our goal is to empower each MLO and Branch Manager with a voice in the company alongside the decision makers. Allen strengthens that platform.” iServe was established in 2007 as a multi-state residential mortgage banker and invites NMLS licensed Originators to apply. For a confidential conversation about joining iServe, contact Allen Friedman through his email or at 415-298-2500.
It’s hurricane season, and sure enough we have Hurricane Idalia forming and expected to hit Florida on Wednesday. The National Association of Realtors has its own storm: the (now ex) President, Utah’s Kenny Parcell, resigned after the New York Times reported on allegations of sexual harassment and a culture of fear at NAR.
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It was bound to happen. Just as home builders began to feel more confident about attracting potential buyers, rising mortgage rates are proving too much for those customers.
After steadily rising for seven consecutive months, builder confidence retreated in August as rising mortgage rates nearing 7% (per Freddie Mac) and stubbornly high shelter inflation have further eroded housing affordability and put a damper on consumer demand.
Builder confidence in the market for newly built single-family homes in August fell six points to 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released August 15.
Home Builders Need Workers, Buildable Lots and Distribution Transformers
“Rising mortgage rates and high construction costs stemming from a dearth of construction workers, a lack of buildable lots and ongoing shortages of distribution transformers put a chill on builder sentiment in August,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala.
Huey said that other factors are helping support the demand for new construction.
“But while this latest confidence reading is a reminder that housing affordability is an ongoing challenge, demand for new construction continues to be supported by a lack of resale inventory, as many homeowners elect to stay put because they are locked in at a low mortgage rate.”
Housing Affordability Compared to US Median Income
Rising home prices and interest rates coupled with elevated construction costs, low existing inventory and solid demand resulted in a significant decline in housing affordability during the second quarter of 2023.
According to the NAHB/Wells Fargo Housing Opportunity Index (HOI), 40.5% of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $96,300. This is down from 45.6% posted in the first quarter of this year, and the second-lowest reading since NAHB began tracking affordability on a consistent basis in 2012.
Where to Buy? Affordable Housing Markets Around the Country
The Housing Opportunity Index shows that the national median home price increased to $388,000 in the second quarter, up from $365,000 in the previous quarter. Meanwhile, average mortgage rates rose from 6.46% to 6.59% during this period.
The top five most affordable major housing markets in the second quarter of 2023 were:
Lansing-East Lansing, Mich.
Scranton-Wilkes-Barre, Pa.
Harrisburg-Carlisle, Pa.
Indianapolis-Carmel-Anderson, Ind.
Pittsburgh, Pa.
Top five least affordable major housing markets—all located in California:
Los Angeles-Long Beach-Glendale
Anaheim-Santa Ana-Irvine
San Diego-Chula Vista-Carlsbad
Oxnard-Thousand Oaks-Ventura
San Francisco-San Mateo-Redwood City
Meanwhile, Cumberland, Md.-W.Va., was rated the nation’s most affordable small market, with 95.5% of homes sold in the second quarter being affordable to families earning the median income of $89,900.
The top five least affordable small housing markets were also in the Golden State. Tied at the very bottom of the affordability chart were Salinas, Calif., and San Luis Obispo-Paso Robles, Calif., where 6.5% of all new and existing homes sold in the second quarter were affordable to families earning the area median income of $100,400 in Salinas and $113,100 in San Luis-Obispo-Paso Robles.
NAHB Chief Economist Robert Deitz Calls for Government Action
Deitz said that government policies aimed at helping builders could help the housing shortfall. He said the shortfall is currently about 1.5 million housing units.
“Declining customer traffic is a reminder of the larger challenge that shelter inflation is up 7.7% from a year ago and accounted for a striking 90% of the July Consumer Price Index reading of 3.2%,” said NAHB Chief Economist Robert Dietz. “The best way to bring housing inflation down and ease the housing affordability crisis is to enact policies at all levels of government that will allow builders to construct more homes to address a nationwide shortfall of approximately 1.5 million housing units.”
Builders Again Pressed Into Using Sales Incentives
The August HMI survey also revealed that rising mortgage rates are causing more builders to use sales incentives to attract home buyers.
After dropping steadily for four months (from 31% in March to 22% in July), the share of builders cutting prices to bolster sales rose again to 25% in August.
The average decline for builders reducing prices remained at 6%. And the share of builders using incentives to bolster sales was 55% in August, higher than in July (52%) but still lower than in December 2022 (62%).
Home Deco Expo International (HDX) has opened registration for its inaugural exhibition, presenting international suppliers of furniture, decor, lighting, rugs and flooring, and set for Feb. 29-March 2, 2024, at the Miami Beach Convention Center.
Across the 250,000 square feet of exhibition space, HDX will offer an extensive array of product and price categories presented by exhibitors from Europe, Latin American, Asia and Canada.
“Home Deco Expo offers clear advantages for buyers and exhibitors as there is mutual interest in forging new collaborations, discovering new products, and building better ways to do business,” said Oguz Gurdamar, CEO of Home Deco Expo International.
Free registration and more information are available at HDX’s website or by email at [email protected].
Better — which went public after merging with special purpose acquisition company (SPAC) Aurora Acquisition Corp. on Thursday — funded a loan volume of $1.7 billion across 4,768 loans in the first six months of 2023. In Q2, Better’s origination volume was $900 million across 2,421 loans, compared to production of $800 million across 2,347 loans funded in Q1.
Of the $1.7 billion in production volume in the first half of 2023, refis accounted for $131 million and purchase loans consisted of $1.6 billion. Better’s funded loan volume of $1.7 billion in the first half of 2023 declined from $9.7 billion during the same period in 2022.
The lender’s gain-on-sale margin increased to 2.34% for the six months ended June 30, 2023, from 0.99% for the six months ended June 30, 2022. The jump in gain-on-sale margin resulted from “market volatility which positively impacted our mortgage platform revenue,” its 8-K filing states.
Better’s total market share of 0.2% during the six months of 2023 declined from 0.7% in the same period in 2022.
“The mortgage market remains competitive among lenders, given the interest rate environment and we continue to focus on originating the most profitable business available to us. As a result, we have pulled back on our most unprofitable channels, resulting in further declines to market share,” according to its filing.
In Q2, Better decided to wind down its in-house real estate agent business to focus on partnering with third-party real estate agents. The pivot was aimed at providing customers with real estate agent services, a business model that better aligns costs with transaction volumes, particularly in market environments with decreased mortgage volumes.
The company’s latest filing shows the firm had less than five agents as of June 8, 2023, declining from 470 agents as of December 31, 2021, and about 80 agents as of December 31, 2022.
Total operating expenses dropped to $183.9 million for the six months ended June 30, 2023, driven by lower funded volume as well as reductions in headcount-related costs and other operating expenses resulting from restructuring initiatives. Compared to the same period in 2022, operating expenses declined by 80% from $903.7 million.
Better scaled down about 91% of its workforce over an 18-month period to 950 team members as of June 8, from 10,400 employees in Q4 2021.
“As we have reduced headcount drastically in previous years and have continued headcount reductions in the first and second quarters of 2023, and expect to continue through 2023, we expect employee-related costs to decrease as a smaller administrative function is needed to support an organization with a much lower headcount,” the disclosure states.
Filings show Better completed the acquisition of Birmingham Bank – a regulated U.K bank – in April 2023. The company acquired 100% of the equity of Birmingham for a total consideration of $19.3 million – consisting of $15.9 million in cash and $3.4 million in deferred consideration.
The acquisition allows Better to grow and expand existing operations in the U.K. by enabling it to offer online deposits to consumers and hold U.K. residential mortgages, the company said.
Back in April, Better announced plans to create 40 jobs in Birmingham over the next three years following the buyout in fields such as business development, savings management, marketing, operations, finance, risk management and IT.
Its 8-K filing revealed that Fannie Mae notified Better about failing to meet the agency’s financial requirements due to the company’s decline in profitability and material decline in net worth.
“Subsequent to June 30, 2023, as a result of failing to meet FNMA’s financial requirements, the Company has entered into a Pledge and Security Agreement with FNMA on July 24, 2023, to post additional cash collateral starting with $5.0 million, which will be held through December 31, 2023,” the filing stated.
The company had cash and cash equivalents of $109.9 million as of June 30, 2023, down from $318 million on December 31, 2022.
Better’s stock opened for trading at $1.20 on August 28. They were down about 93% from $17.45 when blank check company Aurora closed for trading on the stock exchange on August 23.
Anne Hodge and Debra Dobbs are joining the Chicago office of Compass, the company announced Friday. The top agents were previously at brokerage @properties.
“We are thrilled to welcome Anne and Debra to our growing Chicagoland team,” Fran Broude, regional vice president at Compass, said in a statement.
With her 20 years of experience, Hodge is one of the top-producing agents in the western suburbs of Chicago. Before becoming an agent, she was a civil engineer. She ranked 102nd in the 2023 RealTrends ranking of the top agents in Illinois by volume. Her sales volume was of $25,146,500 in 2022.
“I’m excited to be working alongside the top real estate agents in Chicago and look forward to tapping into the Compass tools that are proven to scale agent business,” Hodge said in a statement.
Dobbs, on the other hand, has nearly four decades of experience. She ranked among the top 1% of Chicago Realtors in 2017 and is also a past president of the Women’s Council of Realtors. On her website, Dobbs claims that she was among @properties’ 2022 Altitude Award earners, which indicates that her team raked in between $20 million and $50 million in total sales volume.
“We’re excited to bring our business to the end-to-end Compass platform and integrate AI-based processes to the benefit of our clients,” Dobbs said.
Compass joined the Chicago market in 2017 and has since grown to 22 offices and over 1,600 licensed agents, the company said.
Digital lender Better Home & Finance posted a $45.5 million net loss in the second quarter, according to results released days after the firm’s difficult debut on Wall Street.
The newly public company improved upon its $89.9 million net loss at the end of March, it disclosed Monday. Better last week completed its business combination with a special purpose acquisition company, and in doing so received a capital infusion totalling around $567 million, according to Securities and Exchange Commission filings.
Company founder and CEO Vishal Garg in a statement Monday touted the firm’s investment in its technology platform and its One-Day Mortgage offering. The business didn’t host an earnings conference call, and didn’t respond to a request for comment.
Enduring prolonged criticism since an ill-fated mass firing over Zoom in December 2021, Better was in the spotlight again last Thursday when its stock had a lukewarm debut. The company, trading under the “BETR” symbol, opened at $1.98 per share and ended its first day at $1.15 per share. The SPAC it merged with, Aurora Acquisition Corp., had ended the prior day trading at $17.44 per share under the “AURC” symbol. A Nasdaq tracker shows the companies’ stock performances as one.
Better’s debut also came on the same day Freddie Mac reported that mortgage rates were averaging at a 22-year high, a factor that Better, in SEC filings Monday, said was impacting its business.
The lender’s net loss in the first half of this year of $135.4 million was another improvement over the loss it posted in the same time last year, at $399.3 million for the six months ending last June. It also funded $1.7 billion over the first six months of 2023, compared to $9.7 billion in the first half of last year.
Refinances across the industry have all but dried up, and Better’s earnings reflected the larger trend, with $131 million in funded loan volume through the year’s first six months compared to $4.9 billion over the same period in 2022. The company also posted a 2.34% gain on sale margin in the first half of this year, against a 0.99% GOS margin in the same time last year.
Since the first half of 2022, Better reduced its expenses from $903 million to $183 million. The savings came in part due to a massive downsizing, with the company ending last year with just 1,300 employees from a peak of 10,400 in 2020.
The lender counted $0.8 billion in mortgage warehouse facilities as of June 30. It let a $150 million line mature earlier this month but also agreed to a new $175 million facility. It also had an outstanding corporate line of credit balance of $123.6 million after failing to meet a minimum revenue threshold on a trailing 12-month basis per a 2021 facility, it said. The company paid the remaining balance before the close of its business combination.
Better’s capital infusion included $528.6 million from an affiliate of SoftBank. Sponsor NaMa Capital declined to provide an additional $100 million of financing at the time of the SPAC merger, an agreement it reached with the companies earlier this year.
The firm’s leaders said they plan to expand their business partnerships with their Tinman loan origination platform, but as of June 30 only had a partnership with Ally Bank. The company also maintains cash offer, title insurance and settlement, and homeowners insurance divisions. It ended June with 0.2% of market share, compared to 0.7% at the end of last June.