What’s A Proper Gift For Your Client?

What’s A Proper Gift For Your Client?

During the holidays many us have a million and one gift we have to get and often times it’s difficult to think of the right gift. In fact, it can be more difficult shopping for a family member, someone you know the best, than a client you’ve known for a mere month. Aside from closing gifts, some real estate agents send a holiday gift or card to their clients of the past year. So what are the lengths that these agents are going to please their clients?  Closing gifts in real estate have become somewhat of a norm in the industry. When your buyer or seller closes on a property it is often custom to buy them a congratulatory gift. Most agents will leave a bottle of wine or perhaps champagne in their client’s new fridge, or present them with a basket full of goodies. In a Wall Street Journal article, Alina Dizik unveils a new level of closing and holiday gifts in real estate. Real estate agent Christophe Choo, presented his clients, who had just purchased a $15 million home in Los Angeles, with an all-expense paid trip to Las Vegas once the sale was closed. In a comment made to the WSJ, Choo said he gives such lavish gifts to the clients who spend over $10 million. SInce his “business is 70% repeat clients”, Choo finds it important to creating lasting memories for all his clients. Choo isn’t the only agent going to great lengths to to congratulate clients, and thank them for the commission they’ve just earned. After a buyer purchased a $1.2 million condo in...
An All Time Low For First-Time Home Buyers

An All Time Low For First-Time Home Buyers

2015 marks an all-time low percentage of first-time home buyers. According to cnbc.com first-time home buyers made up only 32% of sales, the lowest in over three decades. So what’s causing such a substantial decrease in buyers? In what many would argue, a favorable market, why is the homeownership rate in the US the lowest it’s been in 50 years at 63.4%?  The general consensus as to why there is a lack in first-time home buyers is millennial debt, much of this debt acquired by the younger generation comes from student loans. While there’s an increase in the desire for a higher education, it is also more commonly a requirement in the workplace. Now, in the application process, most companies don’t just “prefer” a bachelor’s degree but require one. In turn, the millennial age is continuing on to higher levels of education but also higher levels of debt in order to find a stable career. Student debt is preventing people from being able to save for a down payment. Instead of setting aside a couple hundred dollars a month, in hopes of owning a home some day, they’re paying hundreds a month on paying back their loans. Furthermore, what’s holding back the millennial age from purchasing a home is the significant increase in rent. The Wall Street reported that most people are paying rents that are 40% of their gross monthly income, leaving little to be saved. An ideal percentage of a monthly income dedicated to housing would be 25% to a maximum of 30%. This increase in rents nationwide is a classic cause and effect case. While employment...