Greg McDaniel earns $3,472 per hour cold calling real estate leads, and you can too! On today’s Real Estate Rockstars, Greg shares his cold-calling systems and scripts. Listen and learn how to instantly triple your productivity when prospecting. You’ll also get a pending-property script that any agent can use. Plus, Greg explains why real estate agents should celebrate their losses, how a strong social media presence wins listings, and what you can do right now to increase your conversion rate.
Get 10+ hours of mastermind-level content 100% FREE. Register at Carrot.com/Rockstar today!
Listen to today’s show and learn:
Greg McDaniel’s real estate career [4:24]
How social media can win you real estate listings [6:31]
The shift with cold calling [7:25]
A pending-property script that any agent can use [8:34]
How to triple your productivity with cold calling [13:49]
Ways to get your reps in with cold calling [17:08]
How to do video texts and emails [22:42]
A way to come up with real estate content [24:39]
Automated follow-up systems and advice on real estate CRMs [27:34]
Greg McDaniel’s cold-calling stats [30:29]
What getting one percent better can do for your annual earnings [34:01]
Why you should celebrate your losses [38:26]
What’s next for Greg McDaniel [43:31]
Where to find and follow Greg McDaniel [43:46]
Greg McDaniel
Greg McDaniel literally began his career in real estate at his father’s knee & it would not be an exaggeration to say that real estate is in his blood. Greg learned the real estate industry from his dad, Terry McDaniel, a 42 year real estate veteran – acting as his chauffeur and watching him negotiate real estate transactions.
As a partner in McDaniel/Callahan Real Estate, Greg works with a team of professionals dedicated to educating buyers & sellers about every aspect of the real estate process & providing the highest degree of service with the goal of providing every client with a seamless transaction that get RESULTS.
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It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
Think an old dog can’t learn new tricks? Some say that the nearly 150-year-old title industry has a difficult time adapting and evolving. However, the title industry has proven these critics wrong over the past decade, and importantly, it has done so without leaving homeowners vulnerable to unnecessary risks.
Title companies have embraced digitization, automation and artificial intelligence to better meet their customers’ needs, reduce costs and increase efficiency. These innovations have helped — not hindered — title professionals offering the same, robust coverage and protection that homeowners have depended on for over a century.
Not all innovations are created equal.
Some vendors push alternative title insurance products that are marketed as cheaper options. In reality, these may offer far less protection and lack regulatory oversight.
Recently, Fannie Mae updated its selling guide and aligned industry policy with Freddie Mac. The updates allow the use of unregulated title insurance alternatives in lieu of title insurance policies in limited circumstances. Because of this move, various new iterations of attorney opinion letters have entered the market. They claim to offer the same or a similar level of protection as title insurance.
But in fact, these products — which claim to be a cheaper, more innovative version of title insurance — are a relic of the past. Attorney opinion letters were the status quo before title insurance hit the scene in the late 19th century. Attorneys would search property records and state their written opinion that the property records were clear of any title defects. As the realities of the risks associated with only a static examination of the title records became clear, title insurance policies replaced attorney opinion letters.
Title professionals conduct a search of public records for liens, debts and other issues that could threaten a homeowner’s property rights. It also provides coverage for undisclosed title defects like fraud or forgery that might result in a claim at a later date. In contrast, title insurance alternatives do not provide coverage for these “hidden” or “unknown” risks. Alternative products lack oversight and regulation. There are title insurance regulations in all 50 states and federally.
Innovation should be encouraged across the real estate industry. However, any new products that appear too good to be true deserve a high level of scrutiny. There are other, proven ways the industry is embracing innovation to cut costs and make homeownership more accessible.
Efficiencies and cost-cutting measures
For example, title companies are now automating their businesses to improve efficiency and reduce costs. The cost of title insurance has decreased 7% since 2004 thanks to industry investments in machine learning and artificial intelligence (AI).
Many companies are now using AI and machine learning to search traditional and non-traditional property data sources — reducing the time required for a manual title search. Some companies are also using AI to automatically route mortgage payoffs. There are platforms available that extract the necessary information from documents and route them to the correct file without manual interaction.
Strides in technology have also made closings more accessible. With remote online notarization (RON) technology, homeowners in more than 40 states can execute important documents — including closing documents — without needing to visit a notary in person. This technology is especially critical for active-duty members of the military, those with disabilities and those in underserved and underbanked communities.
The best innovations in the insurance improve the home-buying experience. They make homeownership more accessible without sacrificing the quality of coverage. Protection is — and should remain — a top priority for all participants in the housing finance system.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
Diane Tomb is the CEO of the American Land and Title Association
To contact the editor responsible for this story:Sarah Wheeler at [email protected]
Many predicted that COVID-19 would cause real estate markets to crash. But now, after one full year of economic uncertainty, U.S. housing markets seem hotter than ever. What gives? On today’s State of the Market podcast, Aaron and Matt Amuchastegui discuss what’s driving rapidly rising property values. Tune in and get their thoughts on whether or not we’re in a bubble. Plus, you’ll hear about the insane cost of lumber right now, the political implications of population shifts, and more.
Listen to today’s show and learn:
The insane cost of lumber right now [2:29]
Americans willing to pay more for existing homes than new builds [3:50]
Manhattanites opt for Brooklyn over Florida [6:54]
The political implications of population shifts [8:51]
Forbearance rates continue to drop [12:15]
Businesses report major labor shortages [15:20]
A potential fix for the unemployment problem [20:20]
Blockchain’s place in the real estate industry [23:22]
Matt’s advice for today’s homebuyers [25:36]
Final thoughts [27:10]
Matt Amuchastegui
Matt Amuchastegui has had the pleasure of working in many different industries and positions throughout his career. He has learned the trades of residential home building carpentry, construction management, commercialized construction such as building highway bridges and steel buildings, has worked in inside sales, worked as a purchasing manager, mortgage loan originator, held his real estate license in both California and Arizona, and finally he is currently working as a Real Estate Broker in the great state of Oregon.
Matt has been able to apply many skills from all of his past jobs, as well as his education from the University of Oregon to what he is currently doing. Matt prides himself in customer service and strives to make sure everyone that he works with, upon the completion of their transaction, feels as though he provided them with the utmost care, attention and customer service. It is also imperative that when he was involved with management and scheduling, that he built solid relationships with the employees and other contractors to help keep them on schedule and within their budget. Business, at any level, in Matt’s opinion is about respect and relationships.
Matt has enjoyed helping people find their dream homes and has also really enjoyed the business side of negotiating sales contracts. Learning to value homes and determine how much they were currently worth and would possibly be worth in the future was also something that served to be an asset for him. Having the opportunity to work in all fields related to home acquisition, sales and management has helped Matt to be versatile in his ability to take on any task!
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Outsiders to the real estate industry may assume that the tight market has real estate agents hanging up their hats. In reality, today’s agents are seizing the market and feeling confident.
Real estate agents are still confident in the industry and the market. Even as the housing market comes down from its COVID-19 pandemic highs, there are houses to be sold and deals to be made. And, AceableAgent — an online real estate agent licensing firm — recently compiled a survey to answer the question, “Is now a good time to be a real estate agent?”
The answer is undeniable. Yes!
Agent satisfaction by the numbers
“An impressive 88% of agents surveyed reported being satisfied (or very satisfied) with their careers in real estate,” said the report.
This satisfaction comes from many sources, flexibility, control, income potential and ease of entry are all cited by agents as the factors that make them enjoy their jobs so much. These factors even outweigh the current lack of listings and longer wait times on commission checks.
“[Some] 58% of respondents feel positive about the current real estate market,” said the report. A large part of these feelings could be due to the fact that, per the report, the tight market comes with positive changes too.
For veteran agents, tight markets often mean the removal of “fair-weathered” agents, those who got in the game during a high and won’t wait out the lows. There are also more opportunities to go to bat for your buyers and be seen as a valuable resource. Or, for those agents who really hit it big during the 2020 and 2021 boom years, now may be the perfect time to slow down business and strategize for the future.
“In the go-go-go market of the last few years, many agents were simply rushing from one client to the next with little time for strategizing to maximize workflow efficiencies. Now that things are slowing down, you can take a beat to reevaluate business strategies like marketing, branding, and operations,” said the report.
The housing market by the numbers
According to the latest, national data from Altos Research, the housing market may be approaching a soft landing. So, for those 83% of agents that said the market would improve in the next 6 months, the light at the end of the tunnel may be closer than they think.
As of mid-July 2022, the average cost of a single-family home in the U.S. was $450,000. According to Altos Research, that data is basically unchanged from 2022. And, inventory is on the rise — slowly. There were 470,000 single-family homes for sale in the U.S. during the same time period. That trend increased by 1% from the week prior.
“Since January, homebuyers have defied all expectations. Sellers have not materialized and buyers have been buying everything that becomes available,” said Altos Founder, Mike Simonsen.
There aren’t many listings to go around, but agents have made it clear that they don’t believe these market conditions are here to stay. There is a light at the end of the tunnel.
So what are agents doing in the meantime to improve their businesses? According to AceableAgent, real estate pros are focusing on networking, digital marketing and client service skills to stay ahead of the competition in today’s market.
Housing discrimination continues to be a serious problem plaguing renters, homebuyers, and homeowners throughout America.
There were more than 31,200 fair housing complaints filed in 2021, the most recent year where data was available, according to the National Fair Housing Alliance’s 2022 Fair Housing Trends Report. That was the most complaints filed in at least 25 years. The majority, 82%, involved rentals.
“Housing discrimination is pervasive in housing markets across the country,” says Morgan Williams, general counsel of NFHA. “Discrimination is significantly underreported. It’s hard to get good data.”
In 1968, the federal Fair Housing Act was passed to make the rampant discrimination in the housing market illegal. It initially protected people based on race, color, national origin, and religion. Familial status, disability, and sex, which includes sexual orientation and gender identity, have since been added as protected classes.
This is meant to ensure that everyone is treated equally when renting or buying homes, receiving home loans or insurance, and having their homes appraised. However, people are still being denied housing based on their race or sexual orientation, and pregnant women are being denied mortgages.
The NFHA commissioned a report in 2004 that estimated that there were likely more than 3 million fair housing violations against Black, Hispanic, Asian, and Native Americans in the rental and for-sale housing market. This didn’t include violations against other protected groups or in the mortgage, appraisal, and other facets of the real estate industry. When adding those in, he expects there are more than 4 million victims of housing discrimination a year.
Much of the discrimination goes unreported. Many people don’t realize they are victims or are unaware of how to file a fair housing complaint. Those who do often face an uphill battle in proving that they are victims. And some worry about losing their housing if they complain.
“It is a real problem in the market,” says Williams.
What are the most common fair housing complaints?
The bulk of the fair housing complaints received in 2021 were related to disability, according to the NFHA report. These made up about 54.2% of complaints. It was followed by race, familial status, sex, national origin, color, and religion. The report captured complaints filed with nonprofit fair housing organizations and government agencies, including the Department of Housing and Urban Development.
“There is still a tremendous amount of ignorance, as well as conscious and unconscious bias regarding people who are differently abled,” says Stephen Beard. He is an Oakland, CA, real estate agent with Keller Williams who specializes in working with people with disabilities. “Some landlords and other decision-makers do the minimum they can get away with.”
Some of the issues faced by those in the disabled community include being denied rentals because of the way they are perceived, not receiving reasonable accommodations for ramps, chairlifts, and closer parking spaces, as well as landlords not allowing service support animals. Sometimes light fixtures and countertops are out of reach for those in wheelchairs, or kitchens aren’t wide enough to accommodate a chair.
“There simply is not enough accessible housing stock for people with physical challenges, as well as bias against people with cognitive challenges such as autism or who have mental health issues,” says Beard. Many people “can’t find housing. If they have housing, they sometimes can’t afford to move or make their own homes accessible.”
Securing housing is also often a challenge for members of protected classes. For example, families might report that their landlords illegally prohibit their children from accessing amenities in their complexes. People of color are denied mortgages or charged higher fees for loans compared with white borrowers with similar financial pictures. Transgender renters report being evicted due to their gender identity.
“Housing affects absolutely everything you do,” says Marlene Zarfes, executive director of Westchester Residential Opportunities. The civil rights agency works on fair housing complaints in Westchester County, NY, which is located just north of New York City. “If you don’t have suitable housing, how do you get to your job? How do your kids go to school?”
There are many incremental tasks to complete as you prepare to sell your home, but a successful transaction starts with looking at the big picture. Before you take a single interior photo or begin painting your trim, it’s crucial you take a moment and assess your situation properly. Are you emotionally ready to sell your home? Will you use a real estate agent? Is it a good time for you to sell? Let’s examine the factors that go into answering these questions.
Am I Ready to Sell My Home?
Whether you are sad to leave behind a family home full of memories, or can’t wait to get out and into your new upgrade, selling a home can often be an emotionally charged process. There are many considerations to take into account before you decide to sell, which should be done as dispassionately as possible.
Once you’re confident you truly want to sell, it’s still important to not be overly swayed by the attachment to your home during the selling process. Homeowners should try to contain their emotions as much as possible and treat the process like any other business transaction in order to ensure a smooth and timely sale.
An important way to minimize your feelings as a factor in preparing to sell a home is by trying to see things from a prospective buyer’s point of view:
What types of buyers are likely to be interested in your home and neighborhood (e.g., large families with children, single professionals or retired couples)?
How can I make my home more desirable to them?
What are their long term goals and concerns?
Aligning your property with the needs of your prospective buyers can help you sell it quickly and for a great price. But remember that other people don’t have the same attachment to your home as you do, so a fair market price may be lower than your own perception of its value.
Timing is another factor to consider in order to sell your home successfully and for the most return. If possible, it can be beneficial to list your home during the most popular times of the year for the average homebuyer. Spring and summer are typically the best times to list, but the optimal selling season ultimately depends on your specific housing market. For example, communities popular with retirees in warm states like Florida or Arizona may see more action in the winter. A real estate agent can help you determine your area’s prime selling period, or you can do the research yourself. The same goes for conducting the sales process itself.
Real Estate Agents vs. For Sale by Owner: Which Is Better?
If you have a timing plan and are ready to get your home on the market, one of the first decisions you need to make is whether to go it alone, or use a real estate agent. Both methods have their own pros and cons — Let’s examine each option.
Using a Real Estate Agent to Sell Your Home
Real estate agents take a commission, which can typically be 5 to 6 percent of the sale price of your home. And for the average seller who does not make a living in the real estate industry, the choice to use an agent in exchange for this commission can not only save precious time, but also increase the amount received for the home, making the investment well worth it in many scenarios.
The right agent will help you with everything from setting the most advantageous selling price, marketing your home (including photography, videos and staging the property to look its best), arranging showings and open houses, negotiating with interested buyers, to helping you choose the right escrow company and getting the transaction closed without any snags. They are also ideally there for you as an ally and asset if any issues or questions arise during the selling process. They understand all of the required paperwork and typically have contacts and other resources that can help you solve nearly any possible problem. They can also strategically provide a buffer between you and potential buyers, and will have the experience and knowledge to ensure that you only invest your time engaging well-qualified buyers.
If you want help locating the perfect agent to sell your home, you can be matched with one in your area through Pennymac Home Connect, a nationwide network of top-producing real estate agents. You may even be able to earn $350 to $9,500 back at closing if you buy or sell a home with an agent you met through the network.*
For Sale by Owner
Real estate agents can be extremely helpful but it is also possible to sell your home on your own, a process commonly known as “for sale by owner.” In order to sell your home yourself, you will need to:
Do your own research in order to come up with a suitable selling price.
Manage all of the marketing, including getting your home on the Multiple Listing Service (MLS).
Show the house and interact with prospective buyers on your own.
Negotiate the sale with the homebuyers and/or the buyer’s real estate agent.
Ensure you have the proper documentation and that you adhere to all of the relevant laws and regulations.
If you are not going to use a real estate agent, it’s still wise to consider hiring some help in the form of a real estate attorney to make sure that the transaction goes smoothly, including setting up a real estate escrow account.
A Checklist for Selling Your Home
Now that you have determined which method you want to use to sell your home, it’s time to get to work. A smooth, successful home sale can be influenced by many factors, some large and some small. Fortunately, you can do many improvements yourself, with time and sweat being your biggest investments. Here are some moves you’ll want to consider in order to get ready to sell your home.
Interior Updates and Curb Appeal Improvements
For interior improvements, consider painting walls in contemporary, neutral colors and upgrading the lighting, even with small investments like additional lamps or upgraded light bulbs.
To boost your home’s “curb appeal” — the first impression and level of attraction prospective buyers feel for your home from the street before they step inside of it — consider making some inexpensive improvements to your home’s exterior and yard such as pressure washing, painting trim, and landscaping additions and touch-ups. Such simple beautification efforts can help improve your chances of attracting the right buyer.
Clean and Stage Your Home
You’ll want to thoroughly clean your home. A muddy hallway, messy garage or dusty bedroom will only reduce its appeal. Keep rooms as orderly and as uncluttered as possible for all showing appointments. Use a storage unit to temporarily house extra or unsightly items if necessary — that old recliner may be quite comfy, but it could be a ratty eyesore as well. Your real estate agent will likely have a professional home stager you can hire to make your home look its most appealing to buyers. And you can always ask a stylish friend to help you with organizing or decor. In either case, a second set of eyes is always helpful.
Provide Numerous High-Quality Photos
The right photos can make or break your listing. Most agents work with professional photographers, or you can hire one on your own. Ask a friend or neighbor for objective input when selecting pictures and don’t be afraid to speak up if you don’t like the photos used in your listing.
Set a Realistic Price
Setting a price for the home you are selling involves getting input from numerous sources. Start by checking area comps, or comparable sales, and get price suggestions from a couple of real estate agents. Consider all of these numbers, and add in the factors that make your home unique — in both positive and negative ways. Don’t use a property tax assessment since that figure is typically much lower than the current market price.
Still not sure how to price your home? Appraisals will determine how much money a lender will lend, so you should get a professional appraisal before listing your home. Appraisals are not inexpensive, but in certain markets and situations they could save you a lot of time, and that easily translates into saved money.
Create a Plan to Accommodate Showings
It’s a bad idea to conduct ad hoc showings. For all intents and purposes, you’re putting on a sales presentation so you should always put your best foot forward. Having a plan means adequately preparing for your customers (i.e. the potential buyers), while also minimizing the chances something could go wrong during the showing. Some important points to consider when scheduling a showing:
How much time does your work schedule and family/personal life allow for?
Do you have pets that you will need to remove from the home?
How much lead time will you need from your agent to ensure that it is in show-ready condition?
If you have small children, how will you manage their needs throughout each showing?
How will you deal with the unexpected, such as last minute viewing appointment changes, prospective buyers that show up early, or inclement weather concerns?
How to Sell Your Home Fast
No one wants to have their house sit on the market forever, but if your move is being influenced by a time-sensitive factor like a job change, a family situation, or financial issues, you may need to sell your house as quickly as possible. Here are our best tips for speeding up the home sale process.
Have your own home inspection: One part of the homebuying process that can drag on for a long time is addressing the findings of the buyer’s home inspection. Before you even list your home, you can hire an inspector yourself. Use their findings to create a to-do list, or factor the cost of repairing any issues into your sale price. This will allow you to start one step ahead of your potential buyers’ negotiations.
Accommodate (but also vet) potential buyers: Offer buyers whatever you can, whether it is showings on short notice or flexibility with their closing date. However, don’t act too much in haste to sell and don’t sign contracts with unqualified buyers. Spending time in limbo with a buyer whose offer might fall through can waste valuable time and miss connections with more qualified buyers.
Spread the word yourself: Ask for help from your friends, family, and other contacts. Share your listing on social media, carry flyers with you at all times and even consider hosting events like an open house party.
Consider offering incentives: Paying all or part of your buyers’ closing costs, a home warranty and flexibility with closing are all ways that you can attract potential buyers.
Consult with a lender: Knowing what financing options are available to potential buyers can help you market your home. For example, are there low down payment options available?
Ensuring a Successful Home Sale
Our final, and perhaps most important, tip for selling your home is to make sure that you prepare mentally and financially for the many possible offers and issues you may encounter. What if you don’t get the price that you want? If you are trying to sell your home fast, what if it sits on the market for a long time? If you can come up with contingency plans for these worst-case scenarios, you will be ready to handle anything that you encounter in the home selling process.
Being prepared is the key to success in the home sale process, from your first showing appointment to the closing of the deal. If you’d like additional insights into selling your current home or buying your next one, consult with a Pennymac Loan Expert today.
*Pennymac Home Connect is offered in partnership with HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with PennyMac Loan Services, LLC, and PennyMac Loan Services, LLC is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from PennyMac Loan Services, LLC is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a referral fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. PennyMac Loan Services, LLC is not responsible for the reward. The reward is valid for 18 months from the date of enrollment. After 18 months, you must re-enroll to be eligible for a reward. Offer subject to change or cancellation without notice.
PennyMac Loan Services, LLC ( Lender NMLS 35953 ) does not perform any activity that is or could be construed as unlicensed real estate activity, and PennyMac Loan Services, LLC is not licensed as a real estate broker. Agents of PennyMac Loan Services, LLC are not authorized to perform real estate activity.
PennyMac Loan Services, LLC loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
Home generators provide backup power during outages and are essential for homeowners. Understanding the basics, types, and fuel sources can help you choose the right generator. Installing and maintaining it properly ensures reliable performance.
Safety precautions, such as proper ventilation and carbon monoxide detectors, are crucial when using generators. Maximizing fuel efficiency, extending lifespan, and managing loads can optimize generator usage. Comparing features and options helps make an informed decision. We will cover everything you need to know about home generators.
What is a Home Generator?
A home generator is a device that provides backup power in case of a power outage. It is designed to automatically detect when the main power supply fails and quickly switch to a secondary power source, ensuring that essential appliances and electronics in the home continue to function.
Understanding the Basics of Generators
Generators work by converting mechanical energy into electrical energy. They consist of an engine that runs on fuel, such as gasoline, propane, or natural gas, and an alternator that produces electricity. When the engine runs, it spins the alternator, creating an electrical current.
Generators come in different sizes and power outputs, ranging from small portable units to larger standby generators that can power an entire house. They also vary in fuel consumption, noise levels, and features.
Benefits of Having a Home Generator
Having a home generator offers numerous benefits for homeowners:
Continuous power supply: A home generator ensures that essential appliances like refrigerators, heaters, and medical equipment keep running during a power outage, preventing food spoilage and providing comfort and safety.
Protection for electronics: Power surges can damage sensitive electronics. A generator provides stable power, safeguarding devices such as computers, televisions, and home security systems.
Comfort during emergencies: Electrically powered heating and cooling systems and essential lights and outlets keep the home comfortable even when the main power supply is disrupted.
Increased home value: Installing a home generator can increase the value of a property, making it a desirable feature for potential buyers.
However, if you live in a homeowner association, finding out if they are allowed will be essential. Having a generator could violate the HOA rules. Check with the board or management company before making a purchase.
Different Types of Home Generators
There are different types of home generators available, each with its unique features and advantages:
Portable Generators
Portable generators are versatile and easy to move around. They are typically smaller and can power a few essential appliances or electronics during a power outage. Portable generators are ideal for camping trips or powering small outdoor events.
Standby Generators
Standby generators are permanently installed outside the home and are connected to the electrical system. They can automatically detect a power outage and start supplying electricity within seconds. Standby generators are designed to power an entire house and can run on various fuel sources like natural gas or propane.
Inverter Generators
Inverter generators are a more recent innovation in generator technology. They are known for their quiet operation, fuel efficiency, and clean power output, making them ideal for powering sensitive electronics like laptops and smartphones.
In conclusion, a home generator is a valuable investment for homeowners looking to ensure an uninterrupted power supply during power outages. Understanding the basics of generators, recognizing their benefits, and familiarizing oneself with the different types available are essential steps in choosing the right home generator.
Choosing the Right Home Generator
When selecting a home generator, there are several factors to consider to make the best decision for your needs. From assessing your power requirements to evaluating safety features, this section will guide you through the process.
Assessing Your Power Requirements
Start by determining how much power you need to supply during an outage. Make a list of essential appliances and electronics that you want to keep running. Consider their wattage requirements and prioritize accordingly. This will help you choose a generator with the appropriate power output.
Determining the Fuel Source
Next, decide on the fuel source that suits your preferences and availability. Portable generators often run on gasoline, which is easily accessible. Standby generators and portable models can use propane, offering longer runtime and cleaner fuel. Gas natural, however, is only compatible with standby generators.
Evaluating the Size and Portability
Consider the physical dimensions and weight of the generator. If portability is a priority, opt for a smaller, lighter portable generator. For standby generators, focus on installation space requirements. Consider where the generator will be placed and ensure it meets all necessary clearance criteria.
Considering Inverter Generators
Inverter generators offer a compact and efficient alternative to traditional generators. They provide clean and stable power, making them ideal for sensitive electronics. Additionally, inverter generators are quieter and more fuel-efficient, perfect for recreational activities or camping trips.
Reviewing the Safety Features
Never compromise on safety when choosing a home generator. Look for features such as automatic shutdown in case of low oil or fuel levels, overload protection, and ground fault circuit interrupters (GFCIs). These safety mechanisms ensure the generator operates without harming your home or family.
By carefully considering your power requirements, fuel source preferences, size and portability needs, and safety features, you can confidently choose the right home generator that provides reliable backup power during outages.
Installing and Maintaining Your Home Generator
Preparation and Installation Process
Before installing your home generator, it’s important to ensure proper preparation. Start by determining the ideal location for installation, considering factors such as ventilation and proximity to the main electrical panel. Clear any obstructions and ensure a stable foundation for the generator.
Next, consult a professional electrician to handle the installation process, which involves connecting the generator to your home’s electrical system. Follow all safety protocols and local building codes during installation to ensure a seamless and safe setup.
Regular Maintenance and Inspections
Regular maintenance is crucial to keep your home generator in optimal condition. Develop a maintenance schedule that includes periodic inspections and servicing. This includes checking the fuel levels, oil levels, and battery condition.
Inspect the generator for any signs of damage, leaks, or loose connections. Clean or replace air filters as needed to maintain proper airflow. Consult the manufacturer’s guidelines for specific maintenance requirements and recommended service intervals. Additionally, consider hiring a professional generator technician for regular inspections and servicing to ensure thorough maintenance.
Troubleshooting Common Issues
Even with proper maintenance, home generators may encounter some common issues. It’s essential to understand how to troubleshoot these problems to minimize downtime. Some common issues include starting difficulties, engine misfires, or power delivery problems.
Check for fuel supply issues, including clogged or empty fuel tank filters. Inspect electrical connections for loose or corroded wires. If troubleshooting the issue becomes challenging, contact a qualified generator technician for assistance. Keeping a troubleshooting guide handy can help you address minor issues and restore your generator’s functionality efficiently.
Using Your Home Generator Safely
Understanding Carbon Monoxide Risks
Using a home generator can expose you and your family to the risks of carbon monoxide poisoning. Carbon monoxide is a colorless and odorless gas that can be deadly if inhaled in high concentrations. Understanding the potential risks and taking necessary precautions to prevent any harm is essential.
Proper Ventilation and Placement
To ensure safety, it is crucial to ventilate the area where the generator is being operated properly. Generators, including garages, basements, or enclosed spaces, should never be used indoors. They should be placed at least 20 feet away from windows, doors, and vents to prevent carbon monoxide accumulation.
Installing Carbon Monoxide Detectors
To detect any carbon monoxide leaks, installing carbon monoxide detectors in your home is important. These detectors should be placed on each level of your house, especially near bedrooms and sleeping areas. Regularly check the batteries and ensure the detectors are functioning correctly to provide an extra layer of protection.
Safety Precautions during Power Outages
During power outages, following safety precautions when using your home generator is crucial. Never connect the generator directly to your home’s electrical system unless a professional has properly installed it. Avoid overloading the generator by prioritizing essential appliances and electronics. Keep all cords and extension cables away from water sources to reduce the risk of electric shock.
Keep a fire extinguisher nearby and ensure everyone in your household knows how to use it.
Regularly inspect the generator for any signs of damage or wear and tear.
Follow all manufacturer’s guidelines and instructions for safe operation and maintenance.
Store fuel in approved containers in a cool, well-ventilated area away from the generator.
Never refuel the generator while it is running or still hot.
Teach your family members about generator safety and the potential hazards.
By understanding carbon monoxide risks, ensuring proper ventilation and placement, installing carbon monoxide detectors, and following safety precautions during power outages, you can safely use your home generator and provide reliable backup power when needed. Remember, these steps can protect your loved ones and prevent unfortunate incidents.
Getting the Most out of Your Home Generator
When it comes to your home generator, there are several ways to ensure maximum efficiency and longevity. Following these tips and guidelines, you can optimize its performance, power essential appliances and electronics, and manage its load effectively.
Tips for Maximizing Fuel Efficiency
Maintain your generator regularly, including cleaning filters and spark plugs.
Use high-quality fuel and ensure it is stored properly for optimal combustion.
Avoid overloading the generator – match the power needs of your appliances.
Consider investing in an inverter generator known for its fuel-efficient technology.
Utilize the generator only when necessary to conserve fuel and reduce emissions.
Extending the Lifespan of Your Generator
Follow the manufacturer’s maintenance schedule and guidelines.
Regularly check and change the oil to ensure proper lubrication.
Keep the generator clean and free from debris.
Invest in a generator cover or enclosure to protect it from the elements.
Store the generator in a safe and dry location when not in use.
Powering Essential Appliances and Electronics
Prioritize the power needs of critical appliances like refrigerators, medical equipment, and security systems.
Consider using power management devices to distribute power efficiently.
Use surge protectors to safeguard sensitive electronics.
Understand the power requirements for each appliance and ensure your generator can handle the load.
Create a priority list to manage power if your generator has limited capacity properly.
The Importance of Load Management
Understand the power limitations of your generator and avoid overloading it.
Distribute the load evenly across the generator’s circuits.
Avoid starting high-power appliances simultaneously to prevent tripping the generator.
Consider staggering the usage of appliances to reduce the overall load.
Monitor the generator’s performance during operation to ensure it is within its capacity.
By following these guidelines, you can make the most of your home generator, ensuring fuel efficiency, extending its lifespan, and safely powering essential appliances and electronics. Effective load management is crucial for smooth operation and optimal performance. Take the necessary precautions to protect your generator and enjoy an uninterrupted power supply during outages.
Comparing Home Generators: Features and Options
When choosing a home generator, there are several factors to consider. Understanding the features and options available will help you make an informed decision that meets your needs. Here are some key aspects to explore:
Factors to Consider When Buying a Generator
Before purchasing a home generator, it’s important to assess various factors. Consider the generator’s power output, fuel efficiency, noise level, and durability. Evaluate the reputation and customer reviews of different brands and models. Additionally, check for available warranty options and the availability of service and support.
Best Portable Generators for Home Use
If portability is a priority, portable generators are a great choice. These compact units are lightweight and easy to transport, making them ideal for activities like camping or as a backup power source for essential appliances. Look for features such as multiple outlets, noise reduction technology, and extended runtime.
Standby Generators: Which One is Right for You?
Standby generators offer a reliable and convenient solution for whole-house power backup. Assess your power requirements to determine the appropriate size and capacity. Consider features like automatic transfer switches, remote monitoring, and noise reduction technology. It’s also crucial to consult a professional for proper installation and to ensure compliance with local regulations.
Inverter Generators vs. Traditional Generators
Both inverter generators and traditional generators have their advantages and considerations. Inverter generators are known for their quiet operation, fuel efficiency, and clean power output, making them suitable for sensitive electronics. Traditional generators, on the other hand, provide higher power capacities and are often more cost-effective for heavy-duty applications.
Assess your needs and prioritize noise level, fuel efficiency, and power requirement to make the right choice.
Final Thoughts
Considering these factors and exploring the options, you can select the home generator that best suits your needs. Remember to prioritize factors like power output, fuel efficiency, noise level, and specific requirements for your household. Making an informed decision will ensure you have a reliable backup power solution for any situation.
Bill Gassett is a thirty-seven year veteran to the real estate industry. He enjoys writing helpful articles for buyers, sellers, and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, the National Association of Realtors, Inman News, Maximum Real Estate Exposure, Newsbreak, Credit Sesame, and at Realty Biz News. He has been on of the top RE/MAX agents in New England over the last two decades.
Are you discounting your services in order to get deals done? Listen to today’s podcast and learn why you should always charge what you’re worth. Real estate veteran Steve Shull, coauthor of The Full Fee Agent, outlines proven techniques for getting your full fee on every transaction. Steve also shares his no-nonsense approach to prospecting, the one thing it takes to succeed in real estate, and the best tool for any type of negotiation: tactical empathy.
Listen to today’s show and learn:
Steve Shull on playing for the Miami Dolphins in Superbowl XVII [2:28]
Steve’s introduction to real estate and Mike Ferry [4:22]
Steve’s first couple years in real estate [5:11]
Real estate sales in simple terms [7:23]
Mike Ferry’s four options for drumming up real estate business [8:00]
A no-nonsense approach to prospecting [8:32]
Building a custom real estate CRM back in 1991 [9:39]
How sports can help you succeed in real estate [13:46]
The name of the real estate game: listings [16:39]
The mistake most real estate agents make [17:30]
Real estate is not rocket science; it’s a battle for consistency [19:36]
Chris Voss’ Never Split the Difference [23:26]
How Chris Voss’ book completely changed Steve’s real estate scripts [27:27]
The Full Fee Agent by Chris Voss and Steve Shull [27:32]
What it means to be a full-fee agent [28:08]
The false premise that the entire real estate industry is built on [34:08]
The root of all evil in real estate [42:50]
How to respond to a client who asks you to cut your commission [45:49]
Transactional versus relational paradigms [47:14]
Tactical empathy [48:43]
A story detailing the power of tactical empathy [51:50]
What you’ll learn by reading The Full Fee Agent [55:44]
Steve Shull
Steve Shull grew up outside of Philadelphia, Pennsylvania. He attended The College of William and Mary in Williamsburg, Virginia. He graduated with a BS Degree in 1980. Steve then played four years in the NFL as a linebacker with the Miami Dolphins. He was one of the tri-captains in the 1982 Super Bowl. A knee injury ended his career in 1983. Steve then went to graduate school at The University of Miami and received my MBA. He worked on Wall Street as an institutional fixed income sales person for five years. From 1991 thru 1993 Steve sold residential real estate in the Fullerton, CA. area. In his first year with his partner, they closed 53 transactions. In his second year, they were on pace to sell 100 homes when Steve came up with the idea to create a coaching program which marked the beginning of his real estate coaching career in 1993. In 2007, Steve was one of founding partners of Teles Properties. He helped the company open four offices in Beverly Hills, Brentwood, Newport Beach and Pasadena before leaving in 2012. Steve is married to his wife Katerina and they have two daughters and they live in Brentwood, CA.
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It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
A multiple listing service settled a lawsuit challenging Realtor commission rules for $3 million, a possible harbinger for several ongoing actions by home sellers alleging listing requirements are anticompetitive.
The case, Nosalek v. MLS Property Information Network, had class action status and was filed in the U.S. District Court for Massachusetts. Only the MLS agreed to a settlement, according to a June 30 legal filing. Other defendants in the case, both franchisors and brokerages, were not part of the agreement.
Sellers, along with the Department of Justice, are pushing for a major change to the real estate industry’s compensation structure that both its proponents and opponents agree will affect every party involved in home buying.
“Life after all of this is gonna be quite different,” Dennis Norman, a real estate broker and owner of More, Realtors, said. “And I don’t know if NAR survives because we’re talking about massive, massive amounts of money.”
Rules by the National Association of Realtors and associated multiple listing services, which are databases real estate brokers use to list and search for properties, are at the crux of all three major lawsuits — Nosalek v. MLS PIN, Sitzer v. NAR and Moehrl v. NAR. All three cases cite the Sherman Antitrust Act.
The Nosalek plaintiffs didn’t sue NAR, although they did go after realty companies like Century 21, HomeServices of America and Keller Williams. Their initial complaint, filed in December 2020, cites MLS PIN rules on Realtor commissions that say listing brokers must include a fee for the buyer’s representation on each property.
This is because of a coupled compensation structure: most home sellers pay for both the buy-side and sell-side broker fees.
Sellers who don’t offer a fee on the MLS PIN can’t list their home on the service. The lawsuit says this complicates the selling process because buyer agents use the MLS to search for their clients and popular websites like Zillow also use it for their home listings.
Another complaint in the lawsuit says if sellers offer a lower-than-normal fee, buyer agents can see this on the MLS and will likely steer their clients away from the listing.
As part of the settlement, MLS PIN agreed to change its rules on the topic, eliminating the compensation listing requirement. They will also require brokers to inform buyers that they can negotiate the buyer-broker fee and inform sellers that they can elect not to pay it.
HomeServices of America and its affiliates recently filed for summary judgment on the case, arguing there’s no evidence the company conspired with the MLS PIN to inflate commissions.
Both the Sitzer and Moehrl cases contain similar complaints, but are focusing on the NAR as well because of its strong influence on listing service rules: 97% of regional MLSs are affiliated with the NAR and follow its code of ethics, according to by T3 Sixty, a real estate consultant firm.
If the Sitzer and Moehrl lawsuits compel NAR to uncouple with MLSs as some industry voices like Norman are expecting, on top of large damages, the organization and its local chapters would lose their major draw: member-only access.
“I think that’s almost the last bullet for the associations,” Norman said. “MLSs are gonna have their challenges too… but they still have what everybody wants and they’re good for the consumer.”
How Realtors get paid Coupled commissions have been around for a long time. With this system, home sellers pay their listing broker 5% to 6% of the final sale price after closing. That commission is then divvied up evenly between sell-side and buy-side agents, who interact with the customers, and their broker agencies. The majority of each half goes to the agent.
For example, after selling a $300,000 house, a seller pays $15,000 in Realtor fees. Agents receive $6,000 each and their brokers $1,500 each for the sale. The buyer doesn’t pay any fees.
“The whole compensation system doesn’t make a lot of sense,” Steve Brobeck, a senior fellow at the Consumer Federation of America and a self-described public interest advocate, said.
Why are Realtors compensated this way? It evolved from the original system used in 1908 when the first iteration of NAR, the National Association of Real Estate Exchanges, was founded, according to a report by T3 Sixty.
Back then, the industry relied on an exclusive representation system: sellers hired a single listing broker for a fee. Buying brokers were sub-agents of listing brokers, and both sides had a fiduciary duty to sellers. When property sold, listing agents gave their sub-agents a portion of the commission fee.
Eventually, the industry moved away from the subagency model to properly align fiduciary duties, but it didn’t move away from coupled compensations.
“It’s a weird system,” Ann Schnare, a former Freddie Mac executive who ran a study on the compensation structure, said. “Admittedly, it wouldn’t be the first to come to mind, but the fact is that’s what exists… changing it, I think, would be unnecessarily disruptive.”
The NAR has a similar outlook: it resists the lawsuits’ efforts to outlaw shared commissions because they say it’s optional and the rate is negotiable.
Critics of the system like Brobeck point to uniform commission rates despite this negotiability. Brobeck found that in 24 cities across the country, 88% or more of home sales had buy-side commission rates between 2.5% and 3% in a CFA report.
“This rate uniformity is striking evidence of the lack of price competition in the residential real estate industry,” Brobeck said in the report.
Other antitrust lawsuits Legal action over commission fees began in 2018, when a 10-year settlement between the DOJ and the NAR expired. Before crafting a new agreement, the DOJ and Federal Trade Commission held a joint workshop about competition in the real estate industry.
In 2020, the DOJ filed a new lawsuit against the NAR under the Sherman Antitrust Act and simultaneously settled with the association. The settlement required several changes to NAR’s code of ethics to provide “greater transparency to consumers about broker fees.”
The settlement banned buyer brokers from advertising their services as free unless they receive zero compensation from any source. It also prohibited these brokers from searching MLSs by filtering out properties with low commission fees and pushed for greater transparency on those sites.
Because of the settlement, many MLSs began to publicly post commission fees for each property. Redfin and Zillow followed suit. For the first time, homebuyers saw how much their agent would earn from each listing.
But then, the DOJ pulled out of the settlement in 2021 because it prevented them from investigating the association’s rules further.
The Moehrl and Sitzer lawsuits popped up around the same time as the DOJ’s initial workshop.
On March 6, 2019, Christopher Moehrl sued Realtor companies “for conspiring to require home sellers to pay the broker representing the buyer of their homes, and to pay at an inflated amount, in violation of federal antitrust law.”
Then, in April 2019, Joshua Sitzer and Amy Winger, Scott and Rhonda Burnett and Ryan Hendrickson filed a similar lawsuit in Missouri.
Both plaintiffs sued the NAR along with large national broker franchisors: Realogy (now Anywhere Real Estate), HomeServices of America, RE/MAX Holdings, and Keller Williams Realty, as well as HomeServices affiliates BHH Affiliates, HSF Affiliates and The Long & Foster Companies.
Real Estate Exchange, a real estate brokerage, also filed an antitrust lawsuit in 2021 against the NAR, Zillow and Trulia. The lawsuit alleges that Zillow’s search features prevent “transparent access to home inventory.”
Will cash-constrained homebuyers suffer? NAR argues in press releases about the lawsuits that the coupled compensation system fosters market competition because it frees up cash for buyers, allowing them to make a larger down payment.
A study funded by HomeServices of America, a defendant in all three suits, supports the claim. It declares that unless lending changes come in tandem with revisions to this commission structure, it would hurt “minorities, lower income households, and first-time home buyers” the most.
Consumer advocates argue that agent fees won’t hurt buyers because their cost is currently built into home prices. If sellers no longer pay both agent commissions, home prices will fall, and buyers will have the same net cost.
Schnare, one of the study’s authors, said because most finance their home with a mortgage, that’s not true.
“If everything was cash, it wouldn’t make a difference,” Schnare said. “What seems like a small adjustment can make a big adjustment on what they can afford to pay and, you know, potentially hurt the lower end of the market, but with ripple effects upwards.”
Brobeck says this concern is exaggerated, and that lenders will adapt accordingly: “the only reason that argument has any force at all is because the industry supports buyers not being able to finance their commission on the mortgage.”
But Schnare’s study found it’s not that simple.
In order to avoid hurting cash-constrained buyers, lenders would need to change underwriting standards, specifically the loan to value ratio, which represents the borrower’s equity position in the property. This is the most powerful measure of default, the study says, and including an “extraneous factor” like buyer agent fees in the ratio could decrease its predictive accuracy. Schnare says government-sponsored enterprises, the Federal Housing Administration and the Department of Veterans Affairs are unlikely to approve of this change.
Even if they did, it would “require regulatory approval and coordination across multiple parties along the mortgage supply chain,” so Schnare expects it to be a lengthy, expensive process. In the meantime, first time homebuyers would struggle to pay broker fees out of pocket.
“We have what we have, we’re not starting from scratch,” she said. “That’s a big ask for something where the benefits are not entirely certain.”
But the CFA and REX both dismissed the study, citing its funding and accusing it of a faulty premise.
Either way, the industry might be forced to change — both the Sitzer and Moehrl lawsuits are going to trial and many expect the plaintiffs to win. The Sitzer trial is scheduled for Oct. 16, and the Moehrl trial will likely begin early 2024.
“I would not be surprised if there was a settlement before them in both cases,” Brobeck said. “And then the question is, will this settlement really lead to effective price competition?”