Property managers and other real estate professionals must follow these steps to stay in compliance with federal and state consumer data regulations.

Property managers and other real estate professionals routinely conduct background and credit checks in the course of business. Be vigilant: You could be sued for not adhering to federal and state regulations when gathering and sharing sensitive consumer data. 3:50

The latest “Window to the Law” video from the National Association of REALTORS® details your duty to comply with the Fair Credit Reporting Act when handling this data, including a consumer’s credit and rental history as well as other personal data. Aside from the federal law, state consumer data laws vary widely, says NAR staff attorney Mike Rohde. “Regardless of jurisdiction, consumer reports must only be used for a permissible purpose, which includes evaluations connected with credit, employment, insurance and rental housing,” he adds. To prevent liability, Rohde suggests asking for written consent before ordering background or credit checks. If these reports could lead to a negative outcome, such as the denial of employment or rental housing, provide the person with notice and an opportunity to review a copy of the information, he says. Also, have a system in place to properly dispose of collected background and credit reports. A document retention policy should detail how you’ll handle it.

©National Association of REALTORS®
Reprinted with permission

Explain both the pros and cons of new-home construction versus existing-home construction.

New-home Construction

Pros:

• Modern floor plan (open space, flex rooms, larger windows)
• Delayed major maintenance costs (such as roof or HVAC)
• Lower utility bills as a result of stricter building codes and newer energy-efficient products
• More upfront personalization Builder warranties on materials, workmanship and structural items

Cons:

• Higher upfront costs
• Special financing, such as construction loans, often needed
• Longer wait times
• Often farther from amenities, jobs
• Sparse landscaping

Existing-home Construction

Pros:

• Lower-priced options available
• Established neighborhoods
• Mature landscaping
• Move-in ready
• Value add-on potential with remodels and cosmetic updates

Cons:

• Outdated floor plans
• More repairs and maintenance
• Higher utility bills if products and materials are less energy-efficient
• Less personalized
• Competition from other buyers

©National Association of REALTORS®
Reprinted with permission

To develop their craft effectively, real estate pros require flexible learning experiences. The Center for REALTOR® Development, a content sponsor, has unique and varied course offerings that will fit your busy lifestyle.

When the University of Chicago became the first traditional educational institution to provide correspondence courses in 1892, it blazed a trail towards equity by simply providing students with more options. Today, it’s downright necessary for professional development to be delivered in multiple formats, especially when it comes to adult learners.

Think about how important flexibility is for a real estate professional. It’s a business where schedules and responsibilities can change dramatically from one day to the next. REALTORS® are masters of multitasking, entrepreneurs, entertainers, product stagers, photographers, counselors and—because of the varied roles they must play—innate lifelong learners. Plus, with five distinct generations coexisting in the workforce, personalized learning experiences are more important than ever before.

So, how can you be sure that you’re embarking on an educational journey that fits your unique needs? You can start with the Center for REALTOR® Development (CRD)(link is external), which offers exceptional education for real estate professionals at any stage of their career, delivered through several mediums. “At CRD, we curate and provide education that is ‘on the go’ and ‘in the know,’” says CRD Director of Education Katie Eddy. “We have this unique ability to connect the world-class research and reporting that comes out of NAR and infuse that into a practical learning experience.”

Choose Your Own Educational Adventure

Whether you have two days or 10 minutes, CRD has a variety of course types that will work for your schedule.

• In-person: If you prefer to be in a classroom environment, you can search for in-person classes near you(link is external). Courses are offered across the United States—and, in some cases, internationally—through an extensive network of providers. 
• Live virtual: Courses that are being offered through a live virtual format are the perfect option for those who seek the interactivity and connection of an in-person class but with the convenience of being able to attend from your home, office, or any location best suited to your learning style. 
• Online: CRD’s online self-paced courses are great for learners who crave flexibility and the ability to start and stop. Also available through this format are over 100 microcourses for when you want to learn something new but don’t have a full day to dedicate to learning.

If you are unsure where to start with your learning journey—or where you would like to end up—you can check out the updated CRD Learning Pathways(link is external), which were created to empower REALTORS® with specialized skills and help them achieve their goals effectively and efficiently.

What’s In It for You?

Regardless of your learning preference, CRD offers much more than just educational opportunities. Whether taking part in cutting-edge courses or listening to the CRD podcast(link is external), you’re taking steps to build your business, your network, and your future.

Professionalism. Every CRD course is written and revised in concert with a team of subject matter experts who bring their know-how and practical advice to help learners become better practitioners. For example, new agents who take the Accredited Buyer’s Representative (ABR®) designation course(link is external) may be hyperfocused on the buyer consultation portion because they’ve never done one before. But a seasoned buyer’s rep may be drawn to the branding portion because his or her value proposition and business needs have evolved. That’s the unique nature of courses created by REALTORS® for REALTORS®; they’re relevant throughout your professional journey.

Connection. When you take a course, listen to a podcast or simply converse about your work with a colleague, you are connecting with something bigger. You are taking a journey and embarking on a learning experience that will enhance you as a professional—and perhaps also as a person. Let’s say you took the Certified International Property Specialist course “Global Real Estate: Local Markets” and learned how to identify international prospects and clients in your area. You just learned something about your community, too. The GREEN designation(link is external) program, on the other hand, will help you guide your clients through testing for improving resource efficiency—which you can now easily accomplish in your own home.

Longevity. REALTORS® who remain plugged in and well-educated and who participate in learning tend to stay in the business longer. Research shows that entrepreneurs who continue to learn flourish because they are healthier and more motivated. Learning is literally good for your health!

The Center for REALTOR® Development has unrivaled access to top instructors, subject matter experts and industry leaders. All of that comes together to form high-quality, impactful learning experiences that will equip you with information to make a meaningful impact within your own business and community.

For more information and to browse CRD’s extensive course offerings, visit learning.realtor

©National Association of REALTORS®
Reprinted with permission

Homeowners have only three to four minutes to evacuate in the event of a fire, research shows. Share the dangers with your clients to help them prepare and stay safe.

Deadly house fires are growing in frequency—and many homeowners have less time to get to safety. Newer homes and furnishings are burning faster(link is external), research shows, giving owners just three to four minutes to evacuate when a fire breaks out. Thirty years ago, when homes were built to different standards, owners had about 17 minutes to evacuate.

While observing National Fire Prevention Week, which runs through Saturday, fire officials are urging homeowners to take greater precautions. “The number of home fire deaths is going up,” says Steve Kerber, vice president and executive director of the Fire Safety Research Institute(link is external). “In just three minutes or less, a room could be more than 1,000 degrees Fahrenheit and filled with deadly levels of toxic gas from the smoke.”

FSRI recommends homeowners take the following precautions:

• Make an escape plan. Every household should have a fire escape plan, Kerber says. However, one in three Americans says they do not have one—mostly because they’ve never thought to, according to an FSRI survey. Have a plan A, B and C that identifies two ways to get out of every room. If you cannot escape, plan C should be getting behind a closed door, turning on the light and dialing 911 for help.
• Check smoke alarms regularly. Three out of five home fire deaths are attributed to properties without a working smoke detector, according to the National Fire Protection Agency(link is external). Check smoke detectors monthly. Change them out every 10 years. Make sure they are installed in all bedrooms and on all levels of the home, including the basement.
• Close bedroom doors when sleeping. FSRI has launched a campaign, “Close Before You Doze(link is external),” after conducting research showing the protective barrier a door can offer in the event of a house fire. A closed door can prevent deadly levels of carbon monoxide, smoke and flames from entering a room. Further, a 900-degree Fahrenheit temperature difference can exist between a room with an open door and a closed door.

“Smoke inhalation is the leading cause of death in home fires,” Kerber says. “Smoke from a home fire is thick and black, incredibly hot and filled with toxic chemicals. It moves extremely fast. Smoke from a fire in a living room can fill a one-story home or apartment—and everywhere that isn’t blocked by a closed door—in a matter of minutes.”

Cooking is the number one cause of house fires and was behind about 50% of them from 2015 to 2019, according to the NFPA. Many of those fires involved a stove and people walking away from the food while still cooking. Fire officials say that there are only about 30 to 45 seconds to react before a fire can quickly get out of hand. Another leading cause of house fires is heating equipment, particularly space heaters. The NFPA urges homeowners to turn off portable heaters whenever leaving a room or sleeping. Also, space heaters should be kept at least three feet away from furniture, bedding or other flammable items.

©National Association of REALTORS®
Reprinted with permission

More people are upgrading their current property rather than moving, and they’re looking for guidance on resale value, surveys show.

Despite recession fears, homeowners who want to stay put are moving ahead with renovation plans, and you can guide your clients through the improvement projects they should prioritize. After all, 22% of homeowners say ROI is their top motivation for remodeling, according to a new Houzz survey(link is external). So, they need your expertise when it comes to resale potential.

Homeowners also may look to you for recommendations on contractors, as 35% say it’s challenging to find reputable professionals to work on their projects. Still, 37% of homeowners started a remodeling project this year, and nearly a quarter says they plan to start one next year, the Houzz survey shows. Kitchen and bathroom renovations remain the most popular projects, for which homeowners spend a median of $25,000, the survey found.

“Limited choices of available homes and rising interest rates are driving many toward renovations and improving their current home,” says Marine Sargsyan, a staff economist at Houzz. “Additionally, more than half of the homeowners we surveyed have no intention of selling or moving out of their current residences in the next 20 years—or ever.” 

Homeowners also are sitting on a bigger nest egg: The average mortgage borrower had about $300,000 in home equity at the end of October, according to CoreLogic data(link is external). Many are leveraging their equity to invest in top-line renovations, which may explain higher earnings reports from top home improvement retailers like Lowe’s and Home Depot. “We’re not seeing the negative impacts of inflation,” Lowe’s CEO Marvin Ellison told CNBC(link is external). An “improve in place” mentality is growing among homeowners as the housing market slows, added Home Depot CFO Richard McPhail, who told CNBC(link is external) that the company’s DIY sales are growing and contractors continue to report backlogs.

The National Association of REALTORS®’ 2022 Remodeling Impact Report offers insights into how 19 common renovation projects appeal to home buyers, as well as how much REALTORS® estimate that homeowners can recoup at resale. The report found that refinishing hardwood floors is the home improvement project with the highest ROI (147%), followed by new wood flooring (118%) and insulation upgrades (100%). Among exterior projects, new roofing and a new garage door both recovered 100% of the project costs, the report found.

The Houzz study found that many homeowners are focusing more on exterior upgrades, showing a preference for updated windows or skylights, new exterior doors, refreshed exterior paint, porches or balconies, and decks. Houzz found that owners also are basing home improvement decisions on their home’s age and condition. After all, the nation’s housing stock is growing older: The median age of a home in the U.S. is 39, according to the National Association of Home Builders. More than half of owner-occupied homes were built before 1980; 38% were built before 1970. As homes age, they may require more upkeep. The Houzz survey found that the age-related projects homeowners are prioritizing include the electrical system (49%), plumbing (48%), heating (34%) and security (34%).

©National Association of REALTORS®
Reprinted with permission