This round of US economic expansion is expected to break the longest record in history. Many reports highlight the strong fundamentals of economic activity, job market, household spending, and commercial fixed investment and are expected to increase interest rates in a gradual and orderly manner further. Here are four reasons the US real estate market stands out, among others.
The culture of “Mergers & Acquisitions” and the size of the businesses
One of the things in which the difference with the United States is abysmal is investors’ availability willingness to gamble their money in foreign businesses and the tradition due to buying, selling, and merging real estate businesses. It is known as “mergers & acquisitions.” This financial culture facilitates the growth of companies with capital and allows entrepreneurs who manage their businesses. Whether small or large, if they have no heirs, it aspires them to monetize their business on the way to enjoy retirement more or less anticipated and the result of efforts developed over the years.
Professional Regulation
It is not about establishing absurd barriers for competitors’ entrance in the commercial sector, such as real estate sales. It is about a professional license system that ensures a natural series of knowledge of the Agents dealing with buyers and sellers about the laws and obligations they have with them during the transaction. It also limits the ability to close contracts and accept amounts of money only to duly accredited and insured Brokers.
Together with the NAR strength and its public projection, this regulation makes up an ecosystem where Real Estate Agents and Brokers’ role is much more socially recognized and more respected by consumers. In turn, it strengthens the self-esteem of professionals with the positive consequences that this entails.
The Effort of Standardization
It is not always possible to implement and is not still exempt from criticism. However, there is an extreme concern for standardization at very different levels and areas of the profession. It starts from the most basic standards for exchanging data and documentation, allowing connecting information between different local MLS, referenced by the RESO (Real Estate Standards Organization). It further went beyond the NAR’s core standards and reviewed periodically, which suppose mandatory minimums for the MLS that depend on it. The NAR’s core standards begin with the Code of Ethics’s implementation and defense but continue with multiple demands for services that must be offered to associate members.
Political Influence
It is a direct consequence of the existence and power of an association such as the NAR, which has one of the most financially endowed PACs in the United States real estate market. These Political Action Committee (PAC) allows a professional Association such as the NAR to provide funds for different political candidates, and then have a direct link with those who have been elected to Congress or the Senate with their support to address issues of interest to the Sector that these congressmen and senators will support in just correspondence. The NAR presumes in its information to finance the campaigns of more than 200 American senators and Congress members.
Among other things, this power of influence has substantially limited financial entities’ presence in the commercialization of properties, not because they have not been trying for decades. However, with the current political turmoil taking over the US estate market, the outcome can further damage the years to come. If you wish to excel under the current political influence, you need to pitch your real estate sales more efficiently.
Conclusion
An immense amount of growth has been witnessed in the real estate industry over the last five years in almost every market. Success in Real Estate has become harder to develop with more people after your client, your chance to grow a successful business, and listing opportunities.
It may be pretty simple when you think about it but play your strengths, surrounds yourself with tools, showcase your value, and always be ready to learn and grow. Remember, the more you invest in practice that helps you build supportive and strong relationships with the sellers and buyers to help them succeed, the more you stand out. Now, the key here is not to give up and excel in a market whose value is bound to increase as time passes by.
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