HNG Blog

The IRA "Hack" for Buying Real Estate

Thu, 02 Apr 2026 17:10:41 GMT

How parents are using Self-Directed IRAs to invest in real estate near the University of Alabama

You’ve done the math, and it’s a tough pill to swallow.

Four years of student housing rent in Tuscaloosa can easily exceed $60,000 . By graduation day, that money is gone, and you have nothing to show for it but a stack of receipts. It’s no wonder more University of Alabama parents are asking: What if we bought a property instead?

Then comes the hesitation: “I don’t want to tie up all my liquid cash.”

What if the solution was already sitting in your retirement account?

WATCH FULL EPISODE

How to Use Your IRA to Buy Investment Property in Tuscaloosa

Most people think their IRA is limited to stocks and mutual funds. In reality, you can use a Self-Directed IRA (SDIRA) to purchase physical real estate.

By moving funds to a specialized custodian, your IRA becomes the legal entity that buys the property.

The Perks: All rental income flows back into the account—either tax-deferred or tax-free.
The Strategy: For many parents, this opens the door to the Tuscaloosa market without draining personal savings or college funds.

Why SDIRA Closings are Often the "Easy Button"

Most people expect buying real estate to be a mountain of paperwork. But when using an SDIRA, the process is surprisingly streamlined.

You identify the prope rty—whether it’s a modern condo near Bryant-Denny Stadium or a family home in Northport—and your custodian handles the technical transaction. Since the IRA is the buyer, not you personally, it creates a clean separation that pre serves your tax advantages.

Vikki’s Pro Tip: Traditional financial advisors often skip this strategy because they don't earn commissions on real estate. To do this right, you need a custodian who specializes in alternative assets.

The #1 IRS Rule You Cannot Break: "No Self-Dealing"

This is the most critical part of the strategy. The IRS has strict rules regarding "disqualified persons." To keep your IRA's tax-advantaged status, you cannot:

Live in the property yourself.
Use it for your own Crimson Tide gameday weekends.
Rent it to your child or other direct family members (parents, grandparents, etc.).

The Workaround : While your stude nt can’t live there, you can rent to their friends, other UA students, or unrelated tenants. The rental income goes straight back into your retirement nest egg while you remain 100% compliant.

A Smarter Wealth Strategy for UA Families

We’ve seen families successfully convert what would have been $60,000 in "lost" rent into $120,000+ in property equity over the course of a degree. In a high-demand market like Tuscaloosa, you aren't just housing a student; you're capturing appreciation in one of the most stable college markets in the Southeast.

Why This Reduces Financial Stress

Managing property from out of state sounds daunting, but the IRA structure actually simplifies it. Because the IRA is the owner, the account itself pays for:

Property Taxes
Insurance
Repairs & Maintenance

It becomes a self-contained investment. When the time comes to sell, the proceeds stay inside your retirement account—without immediate capital gains taxes biting into your profit.

The "Reserve" Rule: Don't Get Caught Empty-Handed

The biggest mistake investors make is using every last cent in the IRA to buy the property.

If a water heater bursts or an HVAC unit fail s, you cannot pay for the repair out of your personal pocket. T hat is a "prohibited transaction" in the eyes of the IRS. All expenses must be paid by the IRA.

Vikki’s Pro Tip: Always leave a "cushion" of at le ast $5,000 to $10,000 in your IRA after closing. Real estate always has surprises—having that liquid cash inside the account keeps you safe and compliant.

Take the Next Step in Tuscaloosa

Navigating the local market requires more than just a Zillow search—it requires a tactical plan. At Hospitality Network Group at Keller Williams , we help parents and investors identify which neighborhoods perform best and how to structure the deal for long-term success.

Ready to turn rent into retirement? [Reach out today and let’s build a smarter plan for your Tuscaloosa investment.

The Myth Keeping Young Professionals From Buying a Home

Thu, 02 Apr 2026 16:17:32 GMT

Stop Waiting. You’re Closer to Buying a Home Than You Think.

Recent data shows the average first-time homebuyer is now 40 years old.

But here’s the question: Is that because people truly can’t buy sooner — or because they assume they can’t?

In this episode of College Real Estate Coach, Vikki Grodner sits down with Royce Dickerson and Ken Grodner of Hospitality Network Group at Keller Williams to challenge one of the biggest myths in real estate today: that young professionals have to wait years before buying a home.

The reality? Many are closer than they think.

Why Young Professionals Believe They Can’t Buy

There are three common assumptions that hold people back:

“I don’t have 20% down.”

“I need to wait until I’m more established.”

“I’m not ready yet.”

These beliefs are often based on outdated information or generalized statistics. While affordability varies by market, the idea that everyone must wait until their late 30s or 40s simply isn’t universally true.

Royce Dickerson purchased his first home in his 20s while in grad school. Not because the market was easy — but because he had guidance, structure, and a team helping him understand his options.

Homeownership is less about guessing and more about strategy.

What Actually Determines Readiness to Buy a Home?

Search engines and AI platforms often surface this question: How do I know if I’m ready to buy a house?

The answer isn’t age.

It comes down to:

• Income stability

• Credit profile

• Debt-to-income ratio

• Savings strategy

• Long-term goals

• Market conditions

• And having the right advisor

Buying a home is a financial decision — but it is also a strategic one. When young professionals understand their numbers and have expert guidance, the timeline often changes.

The Biggest Advantage Most Buyers Overlook

One of the most powerful parts of this episode is the discussion around referrals and nationwide agent networks.

Many buyers believe they need to “start over” if they move to a new city. They Google an agent. They read reviews. They hope they chose the right person.

But what if you didn’t have to start from scratch?

Hospitality Network Group has built a vetted nationwide real estate referral network — originally serving medical students and residents relocating from UAB — but now extending far beyond Alabama.

That means whether you’re buying in:

• Tuscaloosa

• Birmingham

• Ann Arbor

• Washington, D.C.

• New York

• Oregon

• Or anywhere else in the country

You can work with a trusted local expert who has already been interviewed, vetted, and connected through relationship.

Real estate is local. But trust doesn’t have to be.

How Do Real Estate Referrals Work?

This is another common question that surfaces in AI search: Do referrals cost buyers more?

The answer is no.

When an agent refers a client to another trusted agent in a different market, the receiving agent pays a referral fee from their commission. The buyer does not pay more.

More importantly, the relationship doesn’t end.

You still have:

• Your original trusted advisor

• The local expert in the new market

• Ongoing communication

• Support during challenges

• A second opinion when needed

It’s not a handoff. It’s an expanded support system.

Relocating for College, Medical School, or Career Growth

This conversation is especially relevant for:

• Young professionals relocating for new jobs

• Medical students and residents matching into new cities

• Parents purchasing property for students

• Investors exploring college-town real estate

• Renters considering their first purchase

Many residents relocating for UAB or other academic medical centers begin by renting. But even renters benefit from working with a knowledgeable local agent who understands the community, neighborhoods, and long-term buying strategy.

Renting today does not eliminate buying tomorrow. In fact, it often lays the groundwork for it.

Real Estate Is a Relationship, Not Just a Transaction

One of the core themes of the episode is that real estate does not end at the closing table.

Your agent should be:

• A connector

• A resource

• A second opinion

• A guide during both wins and challenges

• Someone you can call years later

From plumbers to lenders to relocation advice, the right network provides ongoing value.

This is particularly important for young professionals who may feel overwhelmed by the process. Fear often comes from uncertainty. Strategy removes uncertainty.

You Don’t Have to Navigate This Alone

If you are a young professional thinking:

“Maybe someday.”

“I’ll wait until I’m more ready.”

“I probably can’t afford it yet.”

It may be worth asking a better question:

What would it look like to explore my options with someone who understands the process?

You may discover you are closer than you think.

Whether buying in Tuscaloosa, Birmingham, or relocating anywhere in the country, the key is not guessing. It is guidance.

2025 Market Recap From Top Thought-Leaders in Real Estate.

Fri, 27 Feb 2026 19:18:49 GMT

2025 Real Estate Market Insights from KW Family Reunion: What Leading Experts Are Saying About 2026

Each year at Keller Williams Family Reunion, some of the most respected minds in real estate gather to analyze the numbers that drive the U.S. housing market. This year’s Vision Speech focused on the key indicators shaping 2025 — and what they suggest about 2026.

At Hospitality Network Group at Keller Williams, we are committed to keeping our clients informed, confident, and prepared. Understanding the data behind home prices, inventory, inflation, mortgage rates, and affordability allows you to make decisions strategically — not emotionally.

Here’s what the numbers tell us.

Home Prices and Inventory

Home values are not collapsing. They are normalizing. After an unsustainable surge, appreciation is returning to historical patterns. For homeowners, this means continued equity growth — just without the extreme volatility of the pandemic years. For buyers, it means less risk of overpaying in a hyper-inflated environment.

We are not in an oversupply market. In fact, inventory is still historically low. That limits downward price pressure and supports continued stability in home values. Sellers still have leverage — but pricing strategy matters more than it did in 2021.

Inflation

As inflation stabilizes, pressure on aggressive rate hikes decreases. While inflation is not back to pre-pandemic lows, it is no longer surging. That creates a more predictable economic environment for housing.

Mortgage Rates

Today’s rates feel high compared to 2021 — but historically, they are near long-term averages. As inflation cools, gradual rate moderation is possible, though a return to 3% rates is unlikely. Buyers waiting for “pandemic rates” may be waiting indefinitely. As of late February 2026, 30-year fixed mortgage rates have dropped below 6%, marking their lowest level since September 2022.

Affordability

Affordability remains tight — but it is no longer worsening rapidly. Stability in rates and slower price growth provide breathing room. Strategic buying (location, property type, negotiation terms) becomes critical.

What This Means for Buyers and Sellers

For Buyers: If you are financially ready, waiting for a dramatic market crash may cost you more than acting in a stabilizing market.

Inventory remains tight. Prices are holding. Rates are unlikely to return to 3%. Buying strategically now — and refinancing later if rates ease — may be more powerful than sitting on the sidelines hoping for perfect conditions.

In markets like Tuscaloosa and Birmingham, especially in college-driven and medical-driven submarkets, long-term demand fundamentals remain strong.

For Sellers: You no longer win simply by listing.

In a normalized market, pricing precision, property preparation, and expert marketing matter more than ever. While inventory is still low, buyers are more selective and payment-sensitive.

The right pricing strategy — grounded in real data — will separate homes that sit from homes that sell.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

At Hospitality Network Group at Keller Williams, we don’t just watch headlines — we analyze the numbers behind them. Our job is to interpret national trends through the lens of our local markets in Tuscaloosa and Birmingham, so you can move forward with clarity.

Real estate is not about predicting the future perfectly.

It’s about positioning wisely.

If you would like a customized market breakdown for your neighborhood, investment property, or college-town opportunity, we’re here to help you make the most informed decision possible.

Client focused. Performance driven.

Buying vs Renting at the University of Alabama: Why One Family Chose to Invest in Tuscaloosa Real Estate

Thu, 26 Feb 2026 16:08:51 GMT

Buying vs Renting at the University of Alabama: Why One Family Chose to Invest in Tuscaloosa Real Estate

If you have a student heading to the University of Alabama, one of the first major financial decisions you will face is housing.

Most families automatically rent.

But one family chose a different path.

In a recent episode of College Real Estate Coach, Barbara and her granddaughter Virginia shared why their family decided to purchase a townhome in Tuscaloosa instead of signing a lease near campus — and how that decision reframed college housing from an expense into a long-term investment.

Why Families Feel Pressured to Rent at the University of Alabama

Every fall, freshmen begin hearing what many call the “October housing myth.” Students are told they must secure housing early or risk limited options for sophomore year.

That pressure leads many families to rush into rental agreements without fully evaluating alternatives.

Virginia knew she wanted a property that was:

Walkable to classes
Close to her sorority house
Near Bryant-Denny Stadium
Located in a safe community
Guaranteed parking access

Like many students, convenience and safety were top priorities.

Initially, the family explored renting.

Then they paused.

From Rental to Real Estate: A Strategic Family Decision

After a family discussion, Barbara — Virginia’s grandmother — and the rest of the family decided to consider purchasing instead of leasing.

Their reasoning was strategic:

Provide stability for four years or longer
Create a home instead of a temporary rental
Accommodate future siblings who may attend Alabama
Secure property near campus with long-term value
Have a place to stay during football weekends and visits

As Barbara explained, they didn’t want “just a rental apartment.” They wanted Virginia to have a home.

The result was a walkable townhome near campus with space for roommates and a unique family suite layout.

Why Buying Near the University of Alabama Can Make Financial Sense

Tuscaloosa real estate — especially properties close to the University of Alabama and Bryant-Denny Stadium — consistently attracts demand.

When evaluating buying vs renting at Alabama, families should consider:

Walkability and Location

Properties near campus and the stadium often maintain stronger long-term desirability.

Roommate-Friendly Layouts

Multi-bedroom townhomes provide flexibility for shared living while maintaining ownership.

Long-Term Appreciation Potential

College-town markets with strong enrollment and national demand can perform differently than traditional residential areas.

Multi-Use Flexibility

Family visits, game-day weekends, and potential future rentals add additional layers of value.

A Multi-Generational Investment Strategy

One of the most interesting aspects of this purchase was the structure.

Barbara and her husband initially purchased the property. Later, Virginia was added to the deed. In Alabama, individuals can be on title at age 19, creating unique planning opportunities.

With younger siblings potentially attending Alabama, the property may serve multiple students over time.

This transforms the conversation from “four years of housing” to “a long-term family asset.”

Is Buying Better Than Renting at the University of Alabama?

There is no one-size-fits-all answer.

But the better question may be:

What happens if you don’t consider it?

Four years of rent can add up significantly. In high-demand college markets like Tuscaloosa, purchasing may provide:

Stability
Control
Equity growth
Future resale or rental flexibility
Multi-student usage

For this family, the decision was about safety, planning, and long-term thinking.

College Housing in Tuscaloosa: Think Beyond the Lease

If you are evaluating University of Alabama housing, it is important to understand your options before signing a lease.

College housing does not have to be only an expense.

In the right location, with the right structure, it can become an asset.

Why College-Town Real Estate Works — What Atlanta Teaches Us About Investing in Tuscaloosa & Birmingham

Wed, 10 Dec 2025 17:17:10 GMT

How Insider Knowledge Turns College-Town Properties Into Standout Investments

College-town real estate is one of the strongest, most predictable investment strategies in the U.S. Markets like Tuscaloosa (University of Alabama) and Birmingham (UAB + Samford University) rank among the top places for parents and investors looking for strong returns, steady occupancy, and long-term appreciation.

In a recent episode of College Real Estate Coach , host Vikki Grodner interviewed Atlanta real estate expert Michael Hickman about the micro-markets around Georgia Tech, Emory, Georgia State, Spelman, Morehouse, Clark Atlanta, and Kennesaw State. His insights revealed an important truth:

Not every college town behaves the same — and knowing the micro-markets is everything.

The lessons from Atlanta directly reinforce why Tuscaloosa and Birmingham continue to outperform as investment markets.

College-Town Micro-Markets Are Not All the Same

In Atlanta, each university forms its own ecosystem. The same is true in Alabama.

Tuscaloosa & Birmingham serve multiple buyer types:

Parents buying for undergraduates
UAB medical residents and hospital staff
Investors looking for long-term tenants
Buyers wanting game-day rentals
Out-of-state investors seeking hands-off cash flow

Why this matters:
Each group prefers different neighborhoods, property types, amenities, and price points. What works for a UAB resident may not work for a UA junior — and vice versa.

This is where expert local guidance becomes essential.

Parents Often Earn Appreciation — Not Just Housing for Their Student

Michael noted that parent-buyers in Atlanta regularly sell for a profit after graduation.
This trend is even stronger in Tuscaloosa and Birmingham.

What Tuscaloosa parent-buyers want:

Walkability to the University of Alabama
Updated condos and townhomes
Proximity to Bryant-Denny Stadium & The Strip
Low-maintenance ownership

What Birmingham parent-buyers want:

Safety
Fast commute to UAB Hospital or Samford
Turnkey properties
Walkable neighborhoods like Highland Park, Five Points, Lakeview, Homewood

Why this matters:
These preferences create stable demand and consistent appreciation—especially in high-convenience neighborhoods.

STR Rules Can Make or Break Your Investment

Michael shared how many Atlanta condo buildings restrict short-term rentals.
This applies directly to Tuscaloosa and Birmingham.

Tuscaloosa STR considerations:

Rules differ by building, HOA, and zoning
Stadium proximity boosts short-term rental revenue
Some properties allow game-day rentals, some prohibit them

Birmingham STR considerations:

UAB-adjacent buildings have strict policies
Downtown and Parkside may permit STRs depending on HOA

Why this matters:
Your entire ROI can hinge on short-term rental rules. Always confirm STR legality before offering on a property.

Off-Market Deals Are Real — and They Matter

One of Michael’s biggest insights was:

“Some of the best student housing deals never hit the market.”

This is especially true near UA and UAB, where:

High-demand condos sell privately
Investor portfolios trade off-market
New construction reservations fill in advance
Stadium-area units rarely hit MLS

Why this matters:
Your agent’s relationships can unlock opportunities you’d never find online.

Location = Usability, Not Just Distance

In Atlanta, traffic determines whether a property works.
In Alabama, convenience and commute time are just as critical.

Tuscaloosa access factors:

Walkability to UA
Game-day traffic flow
STR revenue near the stadium
Student demand patterns for newer vs. older buildings

Birmingham access factors:

Commute time to UAB Hospital
Proximity to Samford
Walkable lifestyle (parks, restaurants, amenities)

Why this matters:
Investments perform best when they align with the daily needs of the tenant.

Development Projects Increase Long-Term Value

Michael discussed Atlanta’s $1B Stitch project.
Tuscaloosa and Birmingham have similar catalysts driving appreciation:

Tuscaloosa Development Drivers

Riverwalk expansion
Stadium-area improvements
New student housing corridors
Retail/dining growth

Birmingham Development Drivers

UAB hospital and research expansion
Parkside District and Railroad Park growth
Innovation District investment
Protective Stadium and Topgolf

Why this matters:
Buying before development is one of the most reliable ways to build equity.

Why Tuscaloosa & Birmingham Outperform Other College Markets

Compared to large metros, Alabama’s university cities offer:

Predictable rental demand
Lower purchase prices
High STR and long-term rental performance
Multiple tenant pools (students, staff, residents, alumni)
Consistent appreciation tied directly to university growth

Tuscaloosa is nationally recognized for:

#1 college-town real estate investing
Top 2 STR returns

Birmingham stands out for:

Massive UAB-driven housing demand
Year-round tenant stability
Strong job growth
Affordable entry points

These markets remain two of the most strategic places for parents and investors to build long-term real estate wealth.

FAQ: College-Town Real Estate in Tuscaloosa & Birmingham

Is Tuscaloosa a good market for parents buying for students?

Yes. Tuscaloosa offers rising enrollment, high student demand, walkable housing options, and strong appreciation near UA.

Is Birmingham a strong investment market for UAB medical residents?

Very strong. Demand from medical residents, hospital staff, and graduate students creates stable, predictable occupancy.

Do short-term rental rules vary in Alabama college markets?

Yes. STR rules depend on building, HOA, and zoning. Always verify restrictions before investing.

Where do parents typically buy in Tuscaloosa?

Close to the University of Alabama—especially near Bryant-Denny Stadium, The Strip, and walkable condo communities.

Are there off-market deals near UA or UAB?

Yes. Many high-demand properties never hit MLS and are sold through local agent networks.

What neighborhoods are most popular for UAB students and residents?

Highland Park, Lakeview, Five Points South, Homewood, and Parkside.

Thinking About Buying Near UA, UAB, or Samford?

Our team specializes in:

Parent & student housing purchases
Medical resident relocations
Long-term & short-term rental strategy
Investment portfolio planning
Off-market acquisition access

The Hospitality Network Group at Keller Williams is ready to help you identify the right property, navigate local regulations, and put a strategy in place that maximizes your returns from day one. Let’s turn your next investment into your biggest win yet.

Turning College Housing Costs Into Wealth: Why More Parents Are Buying Homes

Fri, 19 Sep 2025 14:19:16 GMT

Turning College Housing Costs Into Wealth: Why More Parents Are Buying Homes

A recent Business Insider article highlighted a growing trend: parents are choosing to buy homes in college towns for their students rather than paying room and board or rent. And it’s not hard to see why—what was once a four-year expense is now becoming a pathway to long-term equity and wealth.

At Hospitality Network Group at Keller Williams , we’re passionate about helping parents and investors seize these opportunities. College town real estate isn’t just about having a place for your student to live—it’s about transforming a major cost into a smart investment.

Why Parents Are Making the Move

Instead of writing a rent check every month to a landlord, parents are investing in property that often appreciates in value. In Tuscaloosa, for example, we’ve helped families turn what would have been a $60,000 housing expense into more than $120,000 in equity . That’s the power of buying vs. renting in the right market.

College towns like Tuscaloosa are especially strong because:

Demand for housing is consistently high
Rental rates support strong cash flow
Properties often appreciate quickly due to steady student demand and community growth

Our Role: Helping Parents Win Big

At Hospitality Network Group, we don’t just help parents find homes—we position them for success. Through our Buy vs. Rent Seminars , we educate families on the numbers, the strategies, and the opportunities unique to college-town investing. Many of the parents we’ve worked with are not only covering their child’s housing but also creating a profitable long-term investment.

The Bottom Line

College is expensive. But your student’s housing doesn’t have to be a sunk cost. By buying instead of renting, you can turn an unavoidable expense into an asset that builds equity and wealth for your family.

If you’re ready to explore this opportunity in Tuscaloosa or other top college towns, our team at Hospitality Network Group at Keller Williams is here to guide you every step of the way.

�� Contact us today to learn more about our upcoming Buy vs. Rent seminars and how we can help you make the smart move for your student—and your future.

Tuscaloosa Ranked #1 for College Town Investing & #2 for Short-Term Rentals — Here’s Why It’s a Goldmine

Thu, 14 Aug 2025 15:18:35 GMT

Tuscaloosa: America’s #1 College Town for Real Estate Investing (and #2 for Short-Term Rentals!)

A recent BiggerPockets analysis ranked Tuscaloosa #2 in America for college towns with the best short-term rental opportunities —putting it ahead of nearly every other football destination in the country. And it’s not just short-term rentals making headlines. Tuscaloosa was also recently ranked #1 in the nation for college town real estate investing , making it a rare m arket that delivers strong returns across multiple investment strategies.

At The Hospitality Network Group at Keller Williams , we help parents and investors turn these rankings into real results. We know where the highest returns are hiding, what buyers need to know before they invest, and how to structure deals that win big in Tuscaloosa’s thriving market.

Game Day = Big Pay Days

Picture this: your property booked solid every home game weekend, with nightly rates two to three times higher than normal. Fans, alumni, and families locking in stays months in advance. In Tuscaloosa, game days aren’t just football—they’re a built-in revenue stream.

The Numbers Tell the Story

Recent market data from BiggerPockets, AirDNA, and Rabbu shows:

$430 average nightly rate
$25K–$40K median annual STR income
Top earners: $7K+ per month
Homes priced $214K–$277K —far below big-city markets with similar returns

Even in slower months, occupancy stays strong enough to keep cash flow positive—meaning less risk and more consistency for your portfolio.

Why Investors Choose Tuscaloosa

Population growth of 2.6% annually fuels long-term housing demand
Rising rents—up 4.3% in the past year—support both short- and long-term rental strategies
Low price-to-rent ratio means your investment dollar goes further here
Fast sales and strong appreciation show a market with healthy competition

It’s a market with momentum—and one you can get into before prices climb higher.

Beyond Football Season

The University of Alabama is a year-round economic engine, bringing students, families, and visitors to town for more than just sports. Add in arts festivals, concerts, and a vibrant downtown, and you have steady demand every month of the year.

Smart Strategies for Maximum ROI

We help our clients:

Target 2–3 bedroom homes—most in demand for families and groups
Adjust pricing for peak events to capture the highest rates possible
Offer must-have amenities like WiFi, full kitchen, AC, and parking to drive bookings
Use flexible minimum stays to keep calendars full year-round

Bottom Line: The Time to Act Is Now

Tuscaloosa offers a rare combination of affordability, consistent demand, and strong returns. This isn’t speculation—it’s supported by recent studies and real-world performance data.

If you’ve been looking for the right market to start or grow your investment portfolio, this is it.

The Hospitality Network Group at Keller Williams is ready to help you identify the right property, navigate local regulations, and put a strategy in place that maximizes your returns from day one. Let’s turn your next investment into your biggest win yet.

Auburn University Real Estate: Why Parents and Investors Are Cashing In on This College Town Market

Wed, 30 Jul 2025 16:12:16 GMT

From student condos to game-day getaways, discover why Auburn’s real estate market is becoming a magnet for parents and investors looking to build wealth in one of the South’s most iconic college towns.

The Big Picture: Why Auburn Real Estate Is in Demand

Auburn, Alabama, isn’t just another college town. It’s a destination. Families describe it as a place that “just feels like home,” and that feeling is fueling a real estate boom.

Here’s why Auburn University real estate is so attractive right now:

Rising Student Enrollment = constant demand for housing.
Parents are done with rent — many are buying instead of paying off someone else’s mortgage.
Investors see opportunity — from student rentals to game-day getaways, Auburn has multiple profit paths.

What Types of Properties Are Hot in Auburn

Auburn’s real estate market is not one-size-fits-all. Here’s what’s moving:

Condos Near Campus

Built mostly between 1998–2010.
Walking distance to Auburn University and Jordan-Hare Stadium.
Low-maintenance and popular with parents and investors.

Price Range: Mid-$200Ks for entry-level condos; most desirable units sell for $300K–$500K.

Game Day Homes

Purchased by alumni and parents who visit for football weekends.
Save thousands in hotel stays.
Can double as short-term rentals when owners aren’t in town.

Mobile Homes & Manufactured Housing

Offer more space for students who don’t want a condo lifestyle.
Well-kept communities provide affordable entry points for parents.
Some parents buy these as a starter option, then transition to condos later.

How Parents Are Cashing In

Many Auburn parents aren’t just buying a home for their child — they’re building an investment strategy.

Roommates help cover the mortgage. Parents buy a condo, their student lives in one room, and rent from roommates pays part (or all) of the payment.

Game-day suites save hotel money. Parents often buy a 3-bedroom condo, use one bedroom for themselves, and rent the rest.

Resale after graduation. Many properties sell for more when the student moves out — meaning parents could profit from tuition years.

Why Investors Should Pay Attention to Auburn

Investors across the country — from Nashville to New England — are starting to zero in on Auburn.

Here’s why:

Consistent demand: Thousands of students need housing every year.

Alumni loyalty: Football and basketball bring repeat visitors who want short-term rentals.

Steady appreciation: Auburn’s market holds value and grows over time.

Most investors start small — one to five properties — and build portfolios as cash flow increases.

Important Things to Know Before You Buy

Zoning rules matter. Short-term rentals (under 90 days) are restricted in some areas

Competition is fierce. Desirable condos and game-day homes sell fast.

Location drives value. Homes within walking distance to campus bring top rent and resale prices.

Ready to Explore Auburn Real Estate?

The best Auburn properties—especially condos near campus and game-day homes—sell fast. Acting quickly with the right guidance is the key to buying smart.

Contact Daniel Blessing and The Blessing Team at Keller Williams to:

Find the best deals near Auburn University
Understand rental rules and zoning laws
Secure your spot in Auburn’s booming college-town market

Your next move in Auburn starts here — contact Daniel today at 334-703-9411 or danielblessing@kw.com to start your search.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

The Hospitality Network Group at Keller Williams is proud to be part of a company built on a culture of excellence — one that empowers us to deliver unmatched service and results. Our team specializes in college town real estate, helping buyers, sellers, and families navigate these unique markets with confidence. Whether you’re purchasing a home for your student, selling a property, or planning your next move, we’re here to guide you every step of the way and make sure your goals aren’t just met — they’re exceeded.

Smart Money Moves for Parents & Investors Buying Tuscaloosa Real Estate

Wed, 30 Jul 2025 15:45:30 GMT

Financing First: Why the Right Loan Strategy Matters in a College-Town Market

When it comes to buying near the University of Alabama, the property you choose is important — but how you finance it is just as critical. The right loan structure can save you thousands, while the wrong one can delay or even derail your purchase.

That’s where Hospitality Network Group at Keller Williams comes in. As local experts, we see firsthand how financing decisions shape every step of the buying process in Tuscaloosa.

Why Financing Is Different in a College Town

Buying in Tuscaloosa isn’t like buying in a typical neighborhood. The type of mortgage, your down payment, and even how the loan is structured can impact your monthly cash flow, tax strategy, and long-term value.

Local lenders — the ones we work with every day — know the ins and outs of this market. They understand:

Which condos are warrantable (and which aren’t)
How to structure loans for parents buying for students or future rentals
How to keep deals moving — even during busy gameday weekends
By connecting you with these trusted partners, Hospitality Network Group ensures you get financing tailored to the realities of Tuscaloosa’s market, not a cookie-cutter approach from a national lender.

*Important Note: In Alabama, your student must be at least 19 years old to be added to the loan or the property title.

Why Working with a Local Real Estate Team Matters

Financing is only part of the equation. To buy smart, you need someone who understands Tuscaloosa’s neighborhoods, condo rules, and market rhythms.

Hospitality Network Group at Keller Williams lives and works here — we know which properties hold value, which areas rent best, and how to navigate HOA and zoning details that can trip up out-of-town buyers.

Parents Are Turning Student Housing Into Wealth

Many parents are using a smart strategy when buying in a college town: purchasing a property for their student, then renting out extra bedrooms to roommates.

In some cases, rental income covers the mortgage—or even generates extra cash flow.

For example, one parent bought a home where her daughter lived, charged $900 per bedroom to other students, and the rental income exceeded the mortgage payment—turning what could have been a monthly expense into an appreciating asset.

Ready to Buy Smart in Tuscaloosa?

The best properties near campus don’t sit on the market for long. Don’t let financing mistakes or missed details cost you the home you want.

Reach out to Hospitality Network Group at Keller Williams to get connected with the right lenders, the right strategy, and the right property in Tuscaloosa. Contact us today! To smart investing!

Episode 8 of The College Real Estate Coach podcast offers the financing game plan you need to buy with confidence and build a profitable portfolio in college towns like Tuscaloosa.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Turn Game Days Into Pay Days: College Town Investing Secrets Revealed

Mon, 23 Jun 2025 13:54:23 GMT

Discover how savvy investors are cashing in on short-term and mid-term rentals in America's top college towns.

If you’re exploring real estate investment opportunities, chances are you’ve considered the usual suspects—vacation destinations, high-growth cities, or trendy urban neighborhoods. But one of the most underrated and reliable markets in the country? College towns.

At Hospitality Network Group at Keller Williams, we’ve helped dozens of investors build profitable portfolios in some of the most iconic university towns in the South and beyond. In a recent episode of The College Real Estate Coach podcast , we spoke with investor Ryan Winzenburg , who shared exactly how college towns became the cornerstone of his real estate success—and why you might want to follow his lead.

Why College Towns Make Great Real Estate Investments

Built-In, Predictable Demand

College towns have a constant stream of renters: students, professors, visiting families, medical residents, sports fans, and traveling professionals. Whether it's move-in weekend, graduation, football season, or just a random Tuesday, there’s nearly always someone looking for a place to stay.

Event-Driven Rental Spikes

As Ryan shared on the podcast, football game weekends in Tuscaloosa can earn him up to $1,200 a night—from a property with a monthly mortgage under $1,500. From sporting events to graduation to homecoming, these towns host high-traffic events that drive major demand for short-term rentals.

Limited Hotel Inventory = Opportunity

Many college towns don’t have enough hotels to accommodate the crowds that flood in for big events—and the few that are available often come with a hefty price tag. That’s exactly where your short-term rental can shine. That gap is your gain.

Resilient Rental Market

Even outside of peak weekends, mid-term rentals (30+ days) are in demand. Traveling nurses, professors, and insurance housing clients (families displaced due to home repairs) offer reliable, longer-term income without the regulatory headaches of nightly Airbnb stays.

What to Know Before You Invest

Do Your Research

Look at schools with strong sports programs, loyal alumni bases, and year-round campus activity. Ryan, for example, began by analyzing markets like South Bend (home to Notre Dame) and Tuscaloosa (University of Alabama), where both demand and fan loyalty run deep.

Understand Local Regulations

Some towns restrict short-term rentals near campus—but savvy investors like Ryan have found workarounds by purchasing just outside the city limits, in areas like Northport, Alabama, where the rules are far more favorable. This is where partnering with the right real estate agent (us!) can make all the difference.

Use the Right Tools

To stay competitive, Ryan uses dynamic pricing software like PriceLabs to adjust rates based on demand, and platforms like Furnished Finder to attract mid-term renters. Having the right team and tools in place is key to managing remotely and profitably.

Work With the Experts in College Town Real Estate

At Hospitality Network Group at Keller Williams , we specialize in helping investors identify the most promising opportunities in top-performing college markets. Whether you're a parent considering a property for your student, a seasoned investor building your portfolio, or a first-timer ready to make your money work smarter—we’re here to guide you every step of the way.

From property selection and financing insights to interior design consultations and Airbnb setup—we offer a full-service, high-touch experience tailored to your goals.

Ready to Explore College Town Investing?

Let us help you turn game days into pay days.

Contact Hospitality Network Group at Keller Williams today to schedule a free consultation and get your custom investment game plan.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey.

From College Student Homeowner to The White House

Wed, 18 Jun 2025 18:54:44 GMT

How Royce Dickerson Discovered the Power of Real Estate Before Graduation—and Changed His Future Forever

On the recent episode of The College Real Estate Coach Podcast , Vikki had the pleasure of interviewing our good friend and former colleague, Royce Dickerson. His story is not only inspiring but also a powerful example of how early action and the right support can completely change the trajectory of your life.

When most college seniors are stressing over finals or figuring out who they’ll live with next year, Royce Dickerson was making a bold move that would shape his entire future: buying his first home before he even graduated.

Yes, you read that right. While many young adults are just learning how to budget for groceries, Royce was applying for a mortgage—and it changed everything.

The Early Spark

Royce’s relationship with money started early. Like age-six-early. During a childhood trip to the bank, when asked if he kept his money in a piggy bank, young Royce confidently replied:

"No, I keep it in this bank—in my account."

From then on, his mindset was different. While other kids asked for money, Royce asked for a credit score and a co-signer.

Becoming a Homeowner in College

As a college senior, Royce realized that renting wasn’t building anything long-term. So he started researching what it would take to buy instead of rent.

He didn’t know all the jargon—PMI, escrow, title insurance—but he did know this: with the right support, he could do it. And he did.

With help from his family and a knowledgeable real estate agent (Vikki!), Royce bought his first property near campus and even brought on a roommate to help offset the mortgage.

"I learned quickly that it wasn’t just about cutting the grass," he says. "It was about understanding liability, insurance, lending—and value."

Real Estate + Grad School = Growth

Royce wasn’t just buying real estate. He was also juggling MBA classes and decided to take it a step further—he got his real estate license while still in school. He’ll be the first to say it wasn’t easy — but the payoff was well worth it.

His classroom education suddenly aligned with real-world investing: cash flow, financing, business strategy—he was living it, not just learning it.

From the Classroom to the White House

Post-graduation, Royce’s path led him to a role at The White House. But even with a fast-paced career in public service, his passion for real estate didn’t fade.

He bought a second property in Washington D.C. and continues to watch the market closely—often encouraging his peers to explore homeownership earlier than they think they can.

"A lot of people my age are just now realizing what that first step could’ve done," he says.

Why His Story Matters

Royce’s journey isn’t just impressive—it’s a blueprint for what's possible.

You don’t have to wait until you're married, wealthy, or “settled” to start building wealth through real estate. You need a plan, the right guidance, and the willingness to start.

So whether you’re a student, a parent of one, or someone early in your career—Royce’s story proves that with the right support, you can take the leap.

Interested in learning more?

Check out the full episode on The College Real Estate Coach Podcast. Have questions about buying your first home or helping someone else take that step? Call us today —we’d love to guide you through the process.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Buying vs. Renting in College: What the Numbers Really Say

Fri, 06 Jun 2025 18:53:20 GMT

How parents are building wealth instead of paying rent—for the same monthly cost.

Homeowners have 40x the wealth of renters.

That’s not just a stat—it’s a wake-up call.

At first glance, renting seems easier—especially in the chaos of moving your child into college or starting fresh in a new city. But if you’re a parent of a college student (or a student yourself) considering housing options, you might be surprised to learn just how much wealth you can build by buying real estate instead of renting in a college town.

Let’s break it down.

Why Buying Real Estate in a College Town Makes Sense

According to a recent study, the average homeowner has 40 times the wealth of average renter . Why? Because every mortgage payment builds equity—and equity builds wealth.

When you rent, that monthly check goes straight to someone else’s pocket. When you own, a portion of your payment goes toward the principal—which is essentially transferring money from your left pocket to your right, as Ken would say. That’s your equity, your inves tment, and your financial future.

And in college towns, where housing demand stays strong year after year, appreciation can add even more value.

When Is Renting the Right Move?

Of course, there are times when renting makes more sense:

You need to move quickly and don’t have time for the buying process
You’re facing financial instability or uncertain job/location changes in the next 6–12 months
You’re not ready to take on the responsibilities of homeownership

But even then, a short-term rental with a long-term plan to buy can still be a smart move.

What It Takes to Buy Real Estate as a Student or Parent

Buying real estate isn’t just for full-time professionals. Students and their families have more options than ever:

FHA Loans – Just 3.5% down payment required
Professional Loans – Tailored for doctors, attorneys, and other high-earning professions
USDA Loans – Zero down payment (must be in rural areas)
VA Loans – For veterans and military families

Even better? Parents can co-sign or invest in the property with their student, turning it into a dual-purpose asset: a home for their child and a long-term rental or Airbnb opportunity after graduation.

Parents: Think of It as “An Advance on the Inheritance”

Helping your child buy now can have a profound long-term impact on their financial stability. If you’re financially able, consider this mindset:

“Why not give them part of their inheritance now, when it will set them up for success?”

Owning property during college isn’t just a smart move—it can be life-changing.

Real Example: $250K Property vs. Rent

Let’s say you're considering buying a $250,000 property. Over 5 years, with a conservative 5% annual appreciation (which aligns with 30-year historical averages), that home could be worth over $300,000—gaining $50,000 in equity.

Meanwhile, rent is likely rising at 5% a year—and you’re building wealth for your landlord instead of yourself.

Bonus: Monthly Payment Stability

Unlike rent, your mortgage doesn’t go up every year. And if interest rates drop, refinancing could actually lower your monthly payment.

That means predictable costs, long-term savings, and the ability to budget more effectively than the average renter.

Start Building Wealth Today

Whether you're a parent looking to invest or a student or young professional hoping to stop renting, the bottom line is simple: Real estate in a college town is more than just housing—it's a wealth-building opportunity.

Want to know if it makes sense for your family? Let’s talk. We’ll run the numbers, connect you with trusted lenders, and help you explore your options—without pressure, just guidance.

Ready to stop renting and start building equity?

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Why College Towns Are One of the Smartest Places to Invest in Real Estate

Tue, 20 May 2025 13:58:38 GMT

How Parents, Students, and Investors Are Turning College Housing into Long-Term Financial Wins

When you think about real estate investment, your first thought might not be a college campus—but it should be. College towns are among the most opportunity-rich markets in the country. At Hospitality Network Group at Keller Williams, we specialize in helping our clients make smart moves in high-potential markets—and college towns are at the top of that list.

Whether you're a parent looking for housing options for your student, a seasoned investor searching for reliable cash flow, or even a student thinking ahead about building wealth early, college towns offer a unique blend of stability, demand, and long-term value.

Here’s why this niche market is getting so much attention—and why now might be the perfect time to invest.

Colleges Are Growing—But Housing Isn’t

Across the country, many colleges and universities are expanding rapidly. However, on-campus housing hasn’t always kept pace. While smaller colleges may provide dorm-style living for all four years, most large universities only guarantee on-campus housing for freshmen.

This means thousands of students are pushed into the rental market each year—creating consistent and growing demand for off-campus housing. For investors and parents alike, this presents an incredible opportunity to provide high-demand housing while generating consistent income.

Spotlight on Tuscaloosa: A Top Market for Real Estate Investment

Take Tuscaloosa, Alabama, for example. Home to the University of Alabama, this city has earned a reputation as one of the best college towns in the country for real estate investment. With over 40,000 enrolled students and a nationally recognized football program, Tuscaloosa experiences significant surges in demand for housing—both long-term and short-term.

Game days, in particular, create a surge in visitors. On major SEC weekends, more than 100,000 people crowd into the stadium, and nearly 200,000 gather on campus. Hotel rooms during these events can easily exceed $3,000 per night with multi-night minimums, making homeownership near campus a smart, profitable alternative.

Parents Are Becoming Strategic Buyers

A growing number of parents are choosing to buy properties in college towns—often for their children to live in during school, while also renting to other students or holding the property as a long-term asset.

This approach offers several advantages:

• Significant savings on rent over four years

• The potential for steady rental income

• Long-term equity growth and appreciation

In many cases, parents find they can sell the property after graduation and walk away with a solid return on their investment.

The Rise of Game Day and Short-Term Rentals

In addition to student housing, short-term rentals have become a major trend in college towns. Sporting events, graduations, family weekends, and campus activities draw crowds throughout the year.

Owning a property within close proximity to campus allows you to capitalize on these high-traffic events by offering short-term stays—often at a premium price. For some investors, a few weekends of rental income can cover months of mortgage payments.

Ready to unlock the secrets of college town investing? Tune in to The College Real Estate Coach —new episodes drop every Thursday!

This blog is just the beginning. In our podcast, The College Real Estate Coach, we’ll be exploring:

• Real-world stories from investors and parents who are building wealth through college town real estate

• Financial breakdowns of how these investments perform

• Tips from students who’ve purchased property while still in school

Whether you're exploring this path for your student, expanding your real estate portfolio, or simply curious about the possibilities, we’re here to help you navigate the world of college town real estate with confidence.

Subscribe to the podcast here.

Ready to Learn More?

If you're interested in buying in a college town or want to learn more about how to leverage this investment strategy, we’d love to connect. At the Hospitality Network Group at Keller Williams, we specialize in helping families and investors find, evaluate, and purchase properties in high-potential college markets across the country.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Adding Extra Years of Zest to Life — One Song at a Time

Wed, 14 May 2025 20:08:07 GMT

When Real Estate Meets Real Community – Bringing Joy, Harmony, and Heart to Every Generation

At Hospitality Network Group, giving back is more than something we do— it’s who we are. Real estate may be our profession, but building stronger communities is our mission. And sometimes, that looks like handing someone the keys to their new home. Other times, it sounds like 25 voices in harmony, singing songs that stir the soul.

Recently, we were proud to support a beautiful event hosted by Gen XYZ, an incredible organization co-founded by Ken and Vikki Grodner in honor of Ken’s parents, Paul and Charlotte. Gen XYZ—short for “Extra Years of Zest!”—is all about enriching the lives of seniors through meaningful connection, joyful experiences, and community-centered programs that remind us how vibrant life can be at every age.

Their most recent event brought The Hoover Songbirds back to the stage by popular demand, performing a brand-new, toe-tapping program at Temple Beth El’s Nathan and Rose Filler Cultural Center. The room was filled with laughter, music, memories, and the kind of energy that makes you feel alive. And to us, that’s what community is all about.

Ken and Vikki’s dedication to Gen XYZ is just one example of how we at Hospitality Network Group strive to support the wellbeing of our community—from every generation, in every season of life. Whether we’re helping families find the perfect home or championing causes that bring people together, our commitment is the same: Client Focused . Performance Driven.

We’re endlessly grateful to be a part of a mission that goes far beyond real estate. Because adding extra years of zest to someone’s life? That’s the kind of legacy we’re proud to build.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Honoring History, Inspiring Hope: Supporting Alabama’s First Public Holocaust Memorial

Wed, 30 Apr 2025 19:07:16 GMT

A Community United to Remember the Past and Inspire the Future

At Hospitality Network Group at Keller Williams, we believe our mission goes beyond real estate—it’s about investing in people, purpose, and progress. Whether through homeownership or community service, we are committed to helping neighborhoods grow in meaningful and lasting ways.

Recently, Recently, we took great pride to be part of an initiative that reflects those very values: the creation of Alabama’s first public Holocaust Memorial, now open to all at Birmingham’s historic Elmwood Cemetery.

This powerful new monument was spearheaded by Barbara Bonfield, a visionary leader whose dedication and persistence brought the project to life ( Barbara’s moving interview can be seen in the dedication video ) . Funded by members of Birmingham’s Temple Beth El, including Vikki and Ken Grodner and others in the greater Birmingham community , the memorial stands as a tribute not only to the memory of those who perished in the Holocaust, but also to the survivors who found the strength to rebuild their lives and legacies in new places—including right here in Alabama.

When Terry Holzman, a friend and client, approached Ken and Vikki to support this effort, they immediately felt called to contribute. Ken joined the initiative with gratitude and purpose—helping lead outreach efforts and encourage others to support this historic moment.

The result is an 8-foot-tall, 700-pound steel sculpture in the form of a dead tree, resting on rusted railroad tracks. The tracks—originally used during the era of slavery in Alabama—evoke a chilling duality: a local legacy of oppression and the haunting memory of the trains that carried millions to Nazi extermination camps. In its starkness, the sculpture demands reflection. Yet, in its permanence, it offers a call to remember, learn, and ensure “never again” truly means never again.

The memorial is not just a place of mourning—it is also a place of resilience and renewal. It honors those who survived the Holocaust, rebuilt their lives, started families, and continued their traditions in the face of unimaginable loss.

For Ken, Vikki, and all of us at Hospitality Network Group, this project exemplifies our mission to uplift and support causes that enrich the communities we serve. We’re proud to stand behind efforts like this that preserve history, promote understanding, and inspire future generations to act with compassion and courage.

We invite you to visit the memorial at Elmwood Cemetery and to learn more by reading the Alabama News Center’s coverage.

Thank you to Barbara Bonfield, Terry Holzman, and all those who contributed to making this vision a reality. Together, we’re not only remembering the past—we’re building a stronger future that safeguards pride, protects honor, and upholds the integrity of all people.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

New Trend in Wealth Transfer: How Parents and Grandparents Are Transferring Wealth to Their Adult Children Through Real Estate

Thu, 24 Apr 2025 13:29:19 GMT

Exploring the Strategic Role of Real Estate in Multigenerational Wealth Planning

As real estate continues to be one of the most effective tools for building and preserving wealth, many families are strategically using homeownership to transfer financial security to the next generation. By leveraging real estate investments, parents can provide both immediate support and long-term financial stability for their children. With home prices on the rise and tax laws evolving, proactive wealth transfer strategies can maximize benefits while minimizing tax burdens.

Rather than waiting to pass on assets through inheritance, many parents are choosing to transfer wealth now by helping their children acquire property and enjoy it additional years of the benefit. Here’s how they’re making it happen.

1. Gifting a Home with a Structured Loan Forgiveness Plan

A married couple can loan their single child $500,000 (or any other amount) to purchase a home, following the guidelines established by the IRS. This method allows parents to maintain financial control while gradually transferring wealth. Here’s how it works:

The parents forgive an amount equal to the maximum annual gift tax exemption per parent ($19,000 in 2025) on the loan, totaling $38,000 per year.

This process can be repeated annually until the full loan amount is forgiven.

If the child is married, their spouse can also receive the same gift amount, effectively doubling the annual forgiveness to $76,000 per year.

Over time, this strategy allows parents to gift a home while minimizing tax implications.

2. Buying a Home in Cash and Gifting It

For parents who have the financial means, purchasing a home outright and gifting it to their child can be a tax-efficient way to transfer wealth. Here’s how it works:

A married couple buys their child a $500,000 home in cash and gifts it to them.

They file the required gift tax return, which falls under the lifetime gift and estate tax exclusion of $27.98 million per married couple (for 2025).

This strategy allows for the immediate transfer of homeownership without requiring the child to take on a mortgage.

Important Note: The lifetime gift and estate tax exclusion is set to drop significantly in 2026, from $13.99 million per individual ($27.98M per couple) to approximately $5 million per individual. This means high-net-worth families should consider making large gifts before the exemption decreases.

Why Real Estate Is a Smart Wealth Transfer Strategy

1. Tax Advantages

By structuring gifts properly, families can leverage the annual gift tax exclusion and lifetime gift tax exemption to pass on real estate with minimal tax consequences. Additionally, if the child holds onto the property, they may benefit from step-up in basis rules if the home is inherited later.

2. Long-Term Wealth Growth

Real estate historically appreciates in value (on average 5% per year over the last 30 years), making it an excellent asset for wealth accumulation. By helping children buy a home now, families position them for financial growth through home equity.

3. Immediate Use & Stability

Unlike other investments, real estate provides immediate utility—offering a stable place to live while also serving as a valuable financial asset.

Start Building Generational Wealth with Real Estate Today

As wealth transfer strategies evolve, real estate continues to be a cornerstone of financial planning for families. Whether through structured loans, gift exemptions, or outright purchases, helping your adult children acquire property now can be a powerful way to secure their financial future.

If you're considering using real estate as a generational wealth transfer tool, contact The Hospitality Network Group at Keller Williams today. Our team specializes in guiding families through smart real estate investments that maximize long-term wealth potential.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available in this blog is for general informational purposes only. You should consult your own legal, financial, or tax advisor and verify all information to your satisfaction prior to taking any action.

2024 National Market Recap & 2025 Insights From Top Thought-Leaders in Real Estate.

Tue, 04 Mar 2025 21:33:35 GMT

2024 National Real Estate Market Recap & 2025 Outlooks – Insights from Our Industry Leader

Once again at our annual KW conference, industry leaders shared valuable insights on the 2024 real estate market and what to expect in 2025. At The Hospitality Network Group at Keller Williams, we are dedicated to keeping our clients informed about the latest real estate trends so you can feel confident in your decisions and make the best choices for your future.

Our motto, "Client Focused. Performance Driven," isn’t just a slogan—it’s the foundation of how we do business. By staying ahead of market trends and understanding what lies ahead, we empower our clients to navigate the real estate landscape with confidence. Whether you're buying, selling, or investing, our commitment to your success drives us to provide the best guidance and insights.

As we reflect on 2024 and look forward to 2025, several key trends have emerged. Here’s what you need to know.

Home Prices and Inventory

In 2024, home prices appreciated by 4.5%, aligning with the historical average of 4-6%. This consistent growth reinforces real estate as a safe, long-term investment. In 2025, prices are expected to continue appreciating, though at a slightly slower pace. The takeaway? Don’t wait to buy real estate—buy real estate and wait.

Inventory increased slightly from 2023 but remains historically low, with only 3.7 months of supply compared to the 6 months needed for a balanced market. This shortage keeps demand high, pushing prices upward. If you're thinking about selling, now is a great time, especially before the spring rush. For buyers, inventory is slowly trending toward a balanced market, but competition remains strong. Be prepared to act fast and make sure you’re pre-approved to stay competitive.

Inflation

Inflation trended downward in 2024 and is expected to continue this trajectory in 2025, offering some relief to household budgets as costs become more manageable.

Mortgage Rates

Despite early predictions of declining mortgage rates, 2024 saw fluctuations, averaging 6.72%. While these rates feel high compared to recent lows, they are still below the historical average of 7.72%. In 2025, mortgage rates are expected to stabilize around 6.5%, providing more certainty and potential

relief for buyers facing affordability challenges.

Affordability

Affordability remained a concern in 2024, particularly for first-time homebuyers. With mortgage rates expected to stabilize and inventory levels still low, affordability challenges are likely to continue in 2025. First-time buyers should stay connected with a trusted lender and real estate professional, as programs are available to assist with down payments and closing costs.

What This Means for Buyers and Sellers

For Buyers: With home prices continuing to appreciate and mortgage rates stabilizing, buying sooner rather than later could save you money. Staying pre-approved and ready to act quickly will be crucial in this competitive market.

For Sellers: Low inventory and high demand create a favorable environment for sellers. Listing now, especially before the spring rush, can maximize your profit potential.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

How was the 2024 Tuscaloosa Market? Key Insights and Trends

Fri, 17 Jan 2025 14:28:01 GMT

Tuscaloosa Real Estate Market Analysis: 2024 vs. 2023

The Tuscaloosa real estate market in 2024 demonstrated resilience and growth compared to 2023. With increased demand, rising home prices, and faster transactions, understanding these trends and partnering with experienced professionals, like the Hospitality Network Group at Keller Williams, continues to be essential for both buyers and sellers. While sellers continue to benefit from favorable conditions, buyers should act decisively and consider strategic negotiations. Let’s take a deeper dive into the key market statistics that defined 2024.

Sales Volume and Units Sold

In 2024, Tuscaloosa saw a 5% increase in total units sold compared to 2023, with 93 additional single-family homes sold. This increase underscores the strong demand in the Tuscaloosa market.

Keller Williams agents in the Tuscaloosa area played a key role in this success, representing over 70% of condominium sales. This market dominance is a testament to KW's expertise and ability to deliver results for clients.

Median Sales Price

Property values in Tuscaloosa continued to climb, with the average sales price in West Alabama in 2024 was $326,798 up from $303,000 in 2023, reflecting a 7.4% appreciation. Homes represented by KW agents sold for $15,779 or 4.8% more than the average home in West Alabama , demonstrating the value of working with skilled professionals, like the Hospitality Network Group at Keller Williams.

Days on Market

Homes in Tuscaloosa sold faster in 2024, with average days on market slightly decreasing from 2023. Days on the market still remains below historic norms, signaling continued buyer interest. KW-represented homes significantly outperformed the market, selling 13 days (29%) faster than the average home in West Alabama.

Inventory Levels

The number of homes for sale in Tuscaloosa still remains low. This tightening inventory has contributed to upward price pressure, highlighting the importance of strategic buying and selling decisions in this competitive seller’s market.

Market Dynamics: Seller's vs. Buyer's Market

With approximately 3.5 months of inventory, Tuscaloosa remains a seller's market. A balanced market typically requires six months of inventory, making this an opportune time for sellers to capitalize on favorable conditions.

Condominium Market Growth

The condominium sector experienced impressive growth, with 120 additional units sold in 2024 compared to 2023. Keller Williams agents facilitated 71.7% of these transactions, showcasing their unmatched expertise in the condo market and their commitment to delivering exceptional results.

Key Takeaways for Buyers

Increased Competition: Rising prices and limited inventory mean buyers should be prepared for competitive bidding.

Negotiation Opportunities: Sellers are increasingly accommodating repairs and closing costs, offering some leverage to buyers.

Act Quickly: Homes are selling fast, and decisive action is crucial.

Key Takeaways for Sellers

Favorable Market Conditions: Rising values and reduced days on market create ideal conditions for selling.

Strategic Pricing: Setting a realistic and competitive price can attract multiple offers and expedite the sale process.

We're here to help you succesfully navigate the market!

Hospitality Network Group at Keller Williams – Client focused. Performance driven

The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. In 2024, KW agents led the Tuscaloosa market with outstanding performance, and we are proud to bring that same level of dedication and professionalism to our clients. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey.

Sources: Redfin, Rocket Homes, Zillow, Realtor.com, Houzeo, Alabama Center for Real Estate,

2024 vs 2023 Birmingham Real Estate Market: Predictions vs. Reality

183:730457020 (Vikki Grodner) — Wed, 08 Jan 2025 18:55:26 GMT

Predictions vs. Reality: What Actually Happened in the Birmingham Real Estate Market in 2024?

At the start of 2024, we shared insights from leading real estate experts, including a top economist who analyzes global and industry trends daily. While headlines were dominated by concerns about inflation and recession—both in the U.S. and worldwide— we were not predicting a possible market correction.

In fact, we predicted a modest (2.2%) increase in the value of homes nationwide:

So, how did the Birmingham Real Estate market perform in 2024?

Homes Purchased and Sold

2024 Total Transactions: 40,570
2023 Total Transactions: 40,921
Result: The real estate market was basically flat.

The number of homes bought and sold in 2024 was consistent with 2023, highlighting the stability of the housing market despite economic uncertainties. This consistency demonstrates the enduring value of real estate as a reliable investment.

Total Sales Volume

2024 Total Volume: $12.806 billion
2023 Total Volume: $12.149 billion
Result: A significant 5.8% increase in real estate sales volume.

This increase in total sales volume reflects rising home values and continued demand for property investments. Buyers and sellers alike benefited from the appreciation in home prices, further solidifying real estate as a wealth-building tool.

Average Days on Market

2024 Average Days on Market: 58 days
2023 Average Days on Market: 54 days
Result: Homes spent slightly longer on the market.

Homes sold in 2024 averaged 58 days on the market, a slight increase compared to 2023. This indicates a more balanced real estate market, offering buyers a bit more time to make informed decisions while still favoring sellers in key locations.

What’s Next for Real Estate in 2025?

Next month, we will share the 2025 Real Estate market insights provided by Keller Williams’ leading economists. We’ll dive into emerging trends, evolving market conditions, and strategies to maximize your real estate investments. Don’t miss this valuable resource to help you navigate the housing market with confidence.

Tuscaloosa Dominates College Towns When It Comes to Real Estate Investing.

Tue, 13 Aug 2024 15:51:54 GMT

Tuscaloosa for the Win!

Named #1 College Town for Real Estate Investing.

Tuscaloosa, Alabama, has recently been named the number one college town for real estate investing, and it's easy to see why. This vibrant city, home to the University of Alabama, offers a unique combination of strong rental demand, affordable property prices, and a robust local economy. Let's dive into the benefits of investing in Tuscaloosa real estate and why it’s a smart choice for savvy investors.

A Thriving College Town

Tuscaloosa's status as a top college town is largely driven by the University of Alabama. With over 38,000 students, the university creates a consistent and high demand for rental properties. College towns are often insulated from economic downturns because universities provide a steady influx of students, faculty, and staff, ensuring a stable rental market year-round.

Affordable Property Prices

One of the most compelling reasons to invest in Tuscaloosa is the affordability of real estate. Compared to other college towns, property prices in Tuscaloosa are relatively low, providing investors with an excellent opportunity to purchase properties without breaking the bank. According to Spartan Invest, Tuscaloosa offers attractive price points that allow for better cash flow and higher returns on investment.

Increasing Home Values

In addition to affordability, home prices are increasing at a faster rate than the national average. The median sales price in Tuscaloosa last year was $256,751, reflecting a 6.1% increase over the previous year—significantly outpacing the national median growth of just 2%. Over the past five years, property values in Tuscaloosa have surged by 24.5%, averaging nearly 5% annual growth. This consistent upward trend makes Tuscaloosa an attractive and lucrative opportunity for investors looking to capitalize on a thriving market.

High Rental Yields

Tuscaloosa boasts impressive rental yields, making it a lucrative market for real estate investors. The combination of affordable property prices and strong rental demand translates to higher rental income. Easy Street Capital highlights that rental properties in Alabama, including Tuscaloosa, can generate significant cash flow, particularly for those focusing on long-term rentals.

Economic Growth and Stability

The local economy in Tuscaloosa is robust, supported by diverse industries such as education, manufacturing, and healthcare. According to BiggerPockets, the city's housing market has shown consistent growth and resilience, even during economic downturns. This economic stability attracts a steady stream of residents and investors. The growth in local infrastructure and business development further enhances the city’s appeal, ensuring long-term appreciation of property values.

Favorable Investment Climate

Alabama is known for its favorable investment climate, offering various incentives for real estate investors. The state's landlord-friendly laws make it easier to manage rental properties and protect investors' interests. Additionally, the low cost of living and favorable tax environment contribute to the overall attractiveness of investing in Tuscaloosa.

Community and Lifestyle

Beyond the financial benefits, Tuscaloosa offers a vibrant community and high quality of life. The city is rich in culture, with numerous recreational activities, dining options, and entertainment venues. This attractive lifestyle appeals not only to students but also to young professionals and families, broadening the rental market.

Tuscaloosa, Alabama, stands out as the number one college town for real estate investing for good reason. With its thriving college environment, affordable property prices, high rental yields, and robust local economy, it offers a perfect storm of conditions for successful real estate investments. Whether you're a seasoned investor or just starting, Tuscaloosa presents an excellent opportunity to grow your portfolio and achieve financial success.

Are you ready to start your investment journey? Hospitality Network Group at Keller Williams is a local real estate expert in the Tuscaloosa market. We have helped dozens of savvy parents and investors, like you, capitalize on the many benefits of investing in Tuscaloosa real estate. Contact us today, and we will help you roll into the right solution!

Vikki Grodner, REALTOR®, Co-owner of Hospitality Network Group

205-422-9713, vikkigrodner@kw.com

Considering Investing in Real Estate? Here are 4 Reasons Why Smart Investors, Like You, are Looking at Birmingham, AL

Fri, 19 Jul 2024 17:45:20 GMT

Birmingham, Alabama is one of the top go-to places for real estate investing. Here's why:

According to a recent New York Post article, Birmingham, Alabama, is gaining national attention as one of the top five metros for real estate investing. This ranking is no surprise given the city’s affordable home prices and rising rental rates. If you’re considering building or expanding your real estate portfolio, here’s why Birmingham should be on your radar.

1. Affordable Home Prices

One of the most compelling reasons to invest in Birmingham is the affordability of homes. Compared to other major metros, Birmingham offers lower entry costs for investors. This affordability makes it easier for investors to purchase multiple properties and diversify their portfolios.

According to recent data, Birmingham's median home price is significantly lower than the national average, allowing for greater investment potential and a higher return on investment (ROI).

2. Rising Rental Rates

Not only are homes more affordable, but rental rates continue to increase! The demand for rental properties is strong, thanks to Birmingham’s growing economy and influx of new residents. Higher rental rates mean better cash flow and improved overall profitability for rental property owners.

The combination of low property prices and high rental demand creates an ideal environment for real estate investors looking to maximize their returns.

3. Economic Growth and Job Opportunities

Birmingham’s economy is diverse and robust, with significant growth in sectors such as healthcare, finance, and technology. The University of Alabama at Birmingham (UAB) and several major corporations provide a stable employment base, attracting new residents and boosting the housing market. This economic stability ensures a steady demand for both rental and owner-occupied properties.

4. Top Ranking for Real Estate Investing

According to the New York Post, investors are flocking to affordable cities like Birmingham due to their lower costs and high growth potential. This city is perfect for both beginner and seasoned investors looking to build wealth through real estate. With affordable home prices and rising rental rates, Birmingham offers a unique and lucrative investment landscape.

So, if you’re looking to dive into real estate or expand your portfolio, Birmingham is the place to be. Affordable prices, rising rents, and a booming economy make it a smart move.

Curious to learn more? Let’s chat and see how you can start building your wealth through real estate in Birmingham!

Birmingham area has a superhuman

Mon, 03 Jun 2024 12:23:37 GMT

MAGIC CITY HAS A SUPERHUMAN

In my business, I have the opportunity to meet a lot of interesting people, but none as special as Birmingham’s Italian Stallion, Lou Scripa.

Picture of Lou Scripa

IIn my business, I have the opportunity to meet a lot of interesting people, but none as special as Birmingham’s Italian Stallion, Lou Scripa.

Lou and his wife Rose were considering a condo complex, and I had the good fortune to show them the property.

After spending the morning with Rose and Lou, Rose says to me, “You know, Lou holds a number of World

Records.”

I did not, and of course wanted to learn more.

I pulled out my phone and searched Lou Scripa, world records.

All the while, Lou hasn’t said a word, just looking down at me from his towering frame with his eyes smiling.

Shockingly, I learned that  Lou earned the following Guinness World Records.

104,538 jumping jacks in 24 hours
41,788 leg raises in 12 hours
110,015 crunches in 17 hours
133,581 crunches in 30 hours
160,974 sit-ups in 82 hours
70,715 sit-ups in 24 hours or less

According to Franoi.com , these are fitness endurance feats accomplished by Air Force veteran Louis “Lou” Scripa Jr. between 1980 and 1992, and acknowledged by the Guinness World Records.

Lou is quoted, “I was fortunate I had a lot of endurance. I could go for a long time.

“The main thing was concentrating on not getting cramps. People would throw ice in my mouth to keep me hydrated.”

According to Scripa, his goal was “not so much the recognition as raising money for charity and good causes.”

Scripa inducted into National Italian American Sports Hall of Fame

Rose shared with me that Lou had been nominated for induction into the National Italian American Sports Hall of Fame and subsequently shared a copy of the nomination with me.

According to   Franoi.com , Scripa, “joined the ranks of the National Italian American Sports Hall of Fame (NIASHF) last year, but was unable to attend the induction ceremony. Instead, NIASHF President Ron Onesti flew to Alabama to induct him in person, capturing the moment on videotape and airing it at the December gala.”

War hero

In reading Lou’s nomination, I learned that Lou is the recipient of numerous medals for Military Service, Courage, Bravery and Gallantry. Among them, Silver Star, Bronze Star with “V” for Valor, Airman’s Medal for Heroism, and the Purple Heart for wounds suffered during the Vietnam War, where he served as a paramedic for the US Air Force.

Lou is also accomplished in Martial Arts, holding black belts in Judo, Jiu Jitsu, and Karate. During his military career, he taught Combative Measures to troops, both domestic and foreign.

Raised millions of dollars in support of charities

Lou has been responsible for raising millions of dollars in support of charities such as the Special Olympics, Diabetes Society, Make-A-Wish-Foundation, Women Escaping a Violent Environment (WEAVE), American Indian Relief Council and countless other causes.

After completing a 23– year career in the military, Lou he went on to complete a second career of 24-years with the Aerojet Liquid and Solid Rocket Company in Sacramento California.

Now 89, Scripa, who has been battling Parkinson’s disease, leads a quiet life with his wife, Rose, in their home in Vestavia Hills and loves living here!

Just one more reason to be proud of our Magic City!

Written by Ken Grodner, co-owner of Hospitality Network Group at Keller Williams . He grew up in Mountain Brook and graduated Magna Cum Laud with a BS Degree in Accounting from the University of Alabama. After working in finance for many years around the country, he returned home to Birmingham with his wife, Vikki, to become a realtor.

The Smart Choice: Why Buying Beats Renting in Tuscaloosa and Birmingham

183:730457020 (Vikki Grodner) — Mon, 22 Apr 2024 20:16:37 GMT

Buying vs Renting: Why buying is a smart investment in towns with strong universities.

Are you a parent considering buying or renting for your college student? Are you looking for a smarter way to invest in this accommodation, especially in towns with strong universities, like Tuscaloosa and Birmingham? Vikki and Ken Grodner from the Hospitality Network Group at Keller Williams are here to shed light on why buying real estate in Alabama is a game-changer.

Vikki’s Perspective: Making Space Your Own

As an interior designer and top Realtor® in Tuscaloosa, I've witnessed the transformative power of turning a house into a home. But beyond aesthetics, there's a compelling financial argument for buying over renting, particularly in college towns like Tuscaloosa. Let's talk about important events — Families and fans flock to Tuscaloosa for football game days, parents’ weekends and special events like graduation. In the process, they shell out exorbitant sums for temporary accommodations during their visits. Instead of bleeding cash on rentals, imagine having your own space to retreat to—a place to bunk with your kid or, as we joke, "kick them out" to stay with friends during a big game day weekend, for example, against an SEC rival. Not only does this save you money, but it also offers the potential to rent out your property, either during peak times, or as a long-term rental to your student’s roommates.

Ken’s Insight: Crunching the Numbers

Renting isn't just pricey; it's a financial dead-end. Let's break it down. In Tuscaloosa, rental costs soar annually, typically averaging $800 to $1,500 per room. Factor in extended college stays—hello, fifth or sixth-year seniors—and you're looking at a hefty sum with nothing to show for it. Contrast that with purchasing a property. For instance, a two-bedroom condo near campus could cost around $250,000 to $275,000, with three-bedrooms ranging from the low to mid-$300,000s. By putting down a reasonable down payment and renting out spare rooms, you offset mortgage costs. Plus, during high-demand events like football weekends, your property becomes a lucrative asset. Fast forward a few years, and what do you have? Equity. Appreciation. Options. Whether you continue renting it out or decide to sell, you're in control of your investment.

The Power of Ownership

It’s clear that buying real estate isn't just about having a place to call home—it's about securing your financial future. Ken and Vikki have helped dozens of parents and clients reap the numerous benefits of buying vs renting, which is why they are so passionate about it. So why throw away money on endless leases when you can invest in something tangible? Ready to make the switch from renting to owning? Give us a call today. No obligations!

2024 Market Insights From Top Thought-Leaders in Real Estate.

Thu, 07 Mar 2024 02:27:13 GMT

2024 Real Estate Market – Insights at from Industry Leaders

Headlines have been filled with discussions of inflationary pressures and whispers of recession, both domestically and globally. However, experts assert that such concerns are unwarranted when it comes to the resilience of the real estate market.

Understandably, many of our clients have voiced concerns about the possibility of a market correction and whether it's wise to wait for it before making a real estate decision. As seasoned real estate professionals, Vikki and I recently had the privilege of attending the Keller Williams’ annual real estate event in Las Vegas, where we gained invaluable insights from some of the most respected thought leaders in the industry. Among them was an esteemed economist who dedicates every day to analyzing trends from a global and industry perspective.

What emerged from our experience was a unanimous stance: waiting for a market correction may not be the prudent strategy, and here's why.

Reflecting on the expert projections from the event, it's evident that the consensus is to proceed with confidence in the current real estate market. Despite the uncertainties looming in the broader economic sphere, real estate continues to demonstrate resilience as a tangible asset with the potential for long-term growth.

If you received our outlook this time last year, you will notice a similar start; with the benefit of 2023 in the rearview mirror, last year’s projections proved to be quite accurate.. This serves as a testament to the reliability of informed analysis and underscores the importance of basing investment decisions on sound research rather than speculation.

We have outlined below the main factors that support this projection.

Home Prices have risen every year for the past decade. We saw a slight increase in home prices last year, despite the gloomy outlook, and expect a modest increase in 2024.

Prices continue to remain stable in large measure because there are so few homes for sale (supply and demand). Six months of supply represents a balanced market and we have around 3, same as last year.

Our economists continue to believe inflation has peaked and will continue to trend downward toward the targeted 2%New Paragraph

Increases in Medical Costs, College Costs and Childcare Costs are the drivers of inflation in the economy today

Mortgage rates, while significantly higher than the last two years, are still on par with historical averages.

Consumers are expressing a growing confidence in the economy.

In conclusion, Vikki and I urge our clients to approach the real estate market with confidence and a strategic mindset. Rather than waiting on the sidelines for elusive market corrections, seize the opportunities that abound in the present moment. By leveraging the insights from industry leaders and economists alike, you can position yourself to capitalize on the inherent potential of the real estate market in 2024 and beyond.

Winterize Your Home: Preparing for the Cold Season!

Thu, 07 Dec 2023 19:49:57 GMT

Winter brings with it colder temperatures and a range of challenges for your home. However, with a few simple steps, you can prepare your home for the chilly weather and ensure a cozy and energy-efficient space throughout the season.

1. Insulate and Seal

Inspect your home for any drafts around windows, doors, and vents. Use weather stripping, caulk, or draft stoppers to seal these areas and prevent heat from escaping. Consider adding insulation to attics, basements, and crawl spaces to improve heat retention.

2. Service Heating Systems

Schedule a professional inspection for your heating system. Replace air filters, check for leaks in ducts, and ensure that your furnace or heat pump is in optimal condition. Proper maintenance can enhance efficiency and reduce the risk of breakdowns during the colder months.

3. Protect Pipes

Frozen pipes can be a nightmare. Insulate exposed pipes in unheated areas like basements, garages, and attics. Allow faucets to drip slightly to relieve pressure and prevent freezing. Shut off outdoor water sources and drain sprinkler systems to avoid burst pipes.

4. Maintain Fireplaces and Chimneys

Before cozying up to the fireplace, ensure it's safe to use. Have chimneys cleaned and inspected to remove any creosote buildup. Make sure the damper opens and closes properly to prevent cold air from entering when the fireplace is not in use.

5. Check Detectors and Alarms

Test smoke detectors and carbon monoxide alarms to ensure they are functioning correctly. With windows and doors closed more often, it's crucial to have these safety devices in working order.

6. Winterize Outdoor Spaces

Prepare your outdoor areas for the winter. Clean and store garden hoses, cover outdoor furniture, and winterize your landscaping by trimming trees and shrubs. Consider insulating outdoor faucets and covering them to prevent freezing.

7. Reverse Ceiling Fans

Switch the direction of your ceiling fans to clockwise. This will push warm air down from the ceiling and help distribute heat more evenly throughout the room.

By taking these steps to winterize your home, you can ensure a warmer, safer, and more comfortable living environment during the colder months. From simple DIY tasks to professional maintenance, preparing your home for winter can save energy and prevent costly repairs while keeping you snug and secure indoors.

Remember, a little preparation now can go a long way in making your winter season more enjoyable and stress-free!

Stay warm and cozy!

Lower Your Monthly Mortgage Payment When Buying a Home With an Interest Rate Buy Down!

Tue, 07 Nov 2023 15:00:00 GMT

During this high interest rate environment, our agents with the Hospitality Network Group at Keller Williams are helping our homebuyers reduce their monthly payment with temporary interest rate buydowns.

With a 2-1 buydown, borrowers can get reduced mortgage payments for the first two years of their loan.

As a buyer, your interest rate is reduced by 2% the first year and 1% the second year. By the third year of the mortgage term, the interest rate goes back to the original interest rate on the loan, but by then the expectation is that interest rates have come down and you can refinance at the new lower interest rate.

More and more sellers are offering to buy down a buyer’s mortgage to incentivize the buyer to purchase their home.

At the Hospitality Network Group, we have been able to help a number of our buyers get the home they want by negotiating seller concessions to pay for a 2-1 buydown.

This payment, or subsidy, provides the lender with the funds necessary to lower the buyer’s interest rate so that the buyer can more easily afford their home loan.

Formula for Calculating a 2-1 Buydown

The formula for calculating buydown points is: buydown points = (loan amount x percentage) / 100.

For example, you’re buying a home for $300,000, and the total buydown is 3%. The formula would look like this:

Buydown points = (300,000 x 3) / 100 = $9,000

In this instance, the seller would pay $9,000 in closing costs to the buyer at closing.

Pros and Cons of a Temporary Buydown?

The first thing to point out with a temporary buydown is just that: it’s temporary. Initially, it can be a pro that you’re paying lowered mortgage payments for the first two years.

However, if interest rates do not adjust as expected or your income doesn’t match the payment amount in the third year of the loan, it can become a serious con. That’s why it’s essential to consider the impact of the monthly payments once they resume at the original interest rate from the third year onwards.

A temporary buydown can benefit both sellers and buyers. For our buyers, this is a bridge for a market with high rates and gives them an opportunity to buy now, when interest rates are high, with the ability to refinance later if rates go down. If they don’t go down and continue to go up, then at least they’ve locked in a lower rate right now. For our sellers, it enables them to move properties faster and keeps them from staying on the market too long.

A Lender’s Perspective, Lindsey Nance - Loan Officer at Movement Mortgage

“At Movement Mortgage, we retain the servicing of our loans, once the buyer closes on their new home. The advantage to this is that the money that was paid at closing for the Temporary Buydown is held in an escrow account that the buyer gets to take full advantage of. The Buydown money is paid on behalf of the buyer on a monthly basis to offset what the full payment would have been, had a Buydown not been utilized.

For instance, if the buyer refinances their mortgage to a permanent fixed rate before the first two years of their Temporary Buydown expires, whatever money is left in that escrow account belongs to the buyer and it is applied as a reduction to the buyer’s principal balance. So, let’s say, using the $9,000 amount as an example mentioned in this article above, that only $5,000 of that amount had to be applied to the Buydown. The buyer would then have that remaining $4,000 applied to their current total loan amount when they refinance, thus lowering their total loan amount which will make their refinanced loan amount even more affordable.

At Movement, we can utilize this program on both primary homes and second homes, to serve the buyer’s needs.”

Three Myths About Buying A House That Are Spreading NOW

Mon, 09 Oct 2023 15:00:00 GMT

Home ownership is always an exciting, and confusing, proposition. Some recent items in the news have only continued to muddy the waters in terms of understanding home ownership.

1. Is a 40-Year Mortgage A Thing? Recent news outlets have spoken, incorrectly, about the availability of 40-year mortgages. While it is true that some lenders may, in fact, offer a 40-year mortgage to certain homeowners, it is far from the norm. Most often, these extended mortgages are provided to current homeowners who have FHA mortgages and need help because they have defaulted on a loan or are in financial distress in some other way. This may allow them to avoid foreclosure by extending an existing, shorter-term loan over a longer period to result in smaller monthly payments.

2. Having A Higher Credit Score Means Higher Mortgage Fees! Say what? We always have heard that having a good credit score will result in better rates and lower fees when securing a loan. Now are we being told something else? Not really. A change in loan-level price adjustments went into effect May 1. People with credit scores between 680 to 780 or higher and with the ability to put down 15-20% were going to be hit with higher fees, media outlets reported. While it is true that some fees in the home buying process went up under the new rule, it is not true that borrowers with higher credit scores are being charged more so that those with lower credit scores could be charged less. As has always been the case, the updated fees will generally increase as credit scores decrease.

3. Home Prices Are About to Crash. We have been hearing that for a while now (and by that, we mean for years). And while some buyers may be hoping that we will see a deep dive in home prices, the reality is that while home prices may not be increasing at the same clip that they were in recent years, we still have a housing deficit. What does that mean? We still do not have enough houses for everybody who wants to buy. And with simple supply and demand, the result is that home prices will likely still increase in most of our markets.

Ever Heard of a Rolling Recession? Just One of Many Points Gary Keller Made at a Recent Keller Williams Real Estate Conference

Wed, 23 Aug 2023 21:20:30 GMT

The Hospitality Network Group was recently on hand for the annual conference of top Keller Williams agents, Mega Agent Camp. One of the highlights of attending this conference is the opportunity to hear from our company and industry thought leaders on the current and future state of real estate.

We find ourselves in confusing times in the real estate industry. Keller Williams Executive Chairman Gary Keller, Head of Industry and Learning Jason Abrams, VP of Strategic Content Jay Papasan and KW Chief Economist Ruben Gonzalez helped to make sense of recent mixed messages.

There are plenty of tailwinds in today’s market — home appreciation has strengthened, employment has slid toward historical lows, millennials are nearing prime earning years, and mortgage rate volatility is calming. However, the group acknowledged that inflation is generally preventing us from fully focusing on positive aspects of the current landscape

According to Gonzalez, inflation and interest rate trends have slowed the GDP. 2023 is projected to end with a GDP of 1 percent, resulting in a mild recession at the beginning of 2024.

Consumer spending is a primary economic driver. With higher interest rates, there is always a risk that consumer spending will drop further than the Fed thinks, Gonzalez continued. This would result in an even bigger recession.

If projections are correct, according to Keller and Gonzalez, we will see a “rolling recession” in 2024. This means that specific sectors of the market suffer and others continue as normal.

“Right now, real estate is the sector that’s having a recession. Any industry right now that is driven by the cost of money is having a recession, but cell phones are not having a recession right now. There are a lot of products or services that are not in recession right now, but banking could be the next one that experiences are recession.”

“The Fed has been fighting for that soft landing,” Papasan said. “I think they would call a rolling recession where the whole economy is healthy but parts of it aren’t. I think they would call that a win if they can get inflation down.”

Recent housing market challenges have eroded consumer sentiment, Keller said. A recent Fannie Mae survey revealed 80 percent of Americans believe now is not a good time to purchase a home. While recognizing the challenges both buyers and sellers face, Keller added that media reports on such things as home sales, home prices and other market indicators have pushed consumers into a “fool’s game” of attempting to time the market.

“Why would [consumers] think they can predict the economy? You should always be looking to buy the right piece of real estate,” Keller said. “You should never walk around and in your mind go, ‘It’s not a good time to buy.’ That makes no sense to me. If you study history, that is uninformed.”

To illustrate this point, Keller showed a chart tracking home prices from 1990 to 2023. In 2006, when median home prices reached $222,000, the price was 21 percent above the then-trend line.

In 2023, the projected median home price of $382,000 is just 7 percent above current trend lines.

The current price of real estate is also a source of confusion. Keller said, “What I think is fascinating again, people go, ‘Oh, it’s way overpriced.’ It may feel that way to you, but it’s not phenomenally overpriced.

Despite the existing climate, Keller shared reasons why the real estate industry is poised for success in the next decade. One of the major reasons is that as millennials reach their prime earning years, they will finally take their roles as the primary leaders of the housing market.

“We talked about the greatest wealth transfer in the history of the world because of the baby boomer generation. It hasn’t happened yet. It’s fixing to happen,” Papasan said. “Between now and the 2030s, millions and millions of businesses will be sold as [baby boomers] go into retirement.” Providing education to millennials about smart financial decisions is imperative.

In the end, Keller said while he is not able to predict the future, looking back historically shows that real estate is always a good investment.

"I can’t predict the future, but I can look backward and say ‘Thank God. I started buying real estate right out of college.'”

Do You Know Quiet Luxury? One of 2023's Strongest Home Decor Trends

Mon, 05 Jun 2023 14:00:00 GMT

While we are seeing the return of color in home decor (have you had enough gray and stark white yet?), another hot interior trend for 2023 is what is known as "quiet luxury." Quiet luxury emphasizes calm, serene spaces that are sophisticated, elegant and maintain a timeless appeal. It is a minimalism with a hug, using high quality materials with texture and richness that pick up the warmer tones in nature and in life. As is often the case, tastes evolve from both a weariness to recent, sometimes overdone design trends and from other influences, such as fashion runways.

So how can you create "quiet luxury" in your home?

Texture has long been a favorite technique of designers to bring interest to a space. Now, more than ever, interior designers are using nubby fabrics, textured wall art and minimal but impactful decorative items to bring a sense of quiet luxury to the home. Strategic layering of thoughtful throws, pillows, and wicker/raffia decorative items is resulting in a simple elegance we can all achieve and get behind.

Introducing more earthy, natural elements and wood tones can also help to create quiet luxury. As both a nod to the environment and a way to warm a space, simple, natural wooden slat walls and unpainted wood elements are having a moment again.

And finally, create restful sanctuaries that are elegant in their simplicity and in their ability to help you de-stress and recharge when you are home, away from a sometimes chaotic world. Cocoon at home with beautiful things that have meaning to you. Clutter is not quiet luxury, but layering and surrounding yourself with things you love, is.

Sustainable Home Features and Eco-Friendly Real Estate Options

Fri, 21 Apr 2023 16:27:23 GMT

As the world becomes more aware of the impact we have on our environment, many industries are striving to become more sustainable. The real estate industry is no exception, with an increasing number of eco-friendly real estate options and sustainable home features becoming more prevalent in the market. We believe that by promoting and offering sustainable homes and eco-friendly real estate options, we can help protect our planet and make a positive impact on our community.

What are Sustainable Home Features?

Sustainable home features are designed to reduce the environmental impact of homes. They are intended to improve energy efficiency, reduce waste, and conserve resources. Here are some examples of sustainable home features:

- Solar panels: Solar panels are a great way to generate clean energy for your home. They can help reduce your carbon footprint and lower your electricity bills.

- Energy-efficient appliances: Energy-efficient appliances use less energy than traditional appliances, which can help reduce your energy consumption and lower your utility bills.

- Water-saving fixtures: Water-saving fixtures, such as low-flow toilets and showerheads, can help reduce water consumption in your home.

- Smart home technology: Smart home technology can help you monitor and control your energy consumption, which can help reduce your environmental impact.

Eco-Friendly Real Estate Options

Eco-friendly real estate options are homes and buildings that are designed to have minimal impact on the environment. They are built with sustainable materials and designed to reduce energy consumption and waste. Here are some examples of eco-friendly real estate options:

- Passive houses: Passive houses are homes that are designed to be incredibly energy-efficient. They are built with thick insulation, airtight construction, and high-performance windows to minimize energy consumption.

- Green roofs: Green roofs are roofs that are covered in vegetation. They can help reduce the urban heat island effect, improve air quality, and provide natural insulation for buildings.

- Net-zero buildings: Net-zero buildings are buildings that produce as much energy as they consume. They are designed to be incredibly energy-efficient and often incorporate renewable energy sources, such as solar panels.

- LEED-certified buildings: LEED (Leadership in Energy and Environmental Design) certified buildings are buildings that meet strict environmental standards set by the U.S. Green Building Council. They are designed to be sustainable and energy-efficient, and often incorporate features such as green roofs, rainwater harvesting, and energy-efficient lighting.

Why Choose Sustainable Homes and Eco-Friendly Real Estate?

There are many benefits to choosing sustainable homes and eco-friendly real estate options. Here are a few:

- Lower utility bills: Sustainable homes and eco-friendly real estate options are designed to be energy-efficient, which can help lower your utility bills.

- Better indoor air quality: Many sustainable homes and eco-friendly real estate options incorporate features that improve indoor air quality, such as air filtration systems and non-toxic building materials.

- Reduced environmental impact: By choosing sustainable homes and eco-friendly real estate options, you can help reduce your environmental impact and contribute to a more sustainable future.

- Increased property value: Sustainable homes and eco-friendly real estate options are becoming increasingly popular, which can help increase the value of your property.

At HNG, we believe that promoting sustainable homes and eco-friendly real estate options is not only good for the environment, but also good for our clients. We are committed to helping our clients find homes that meet their needs while also reducing their environmental footprint. If you're interested in learning more about sustainable homes and eco-friendly real estate options, please contact us today.

Valuable Real Estate Insights

Wed, 08 Mar 2023 17:00:00 GMT

Given what we read and see about inflation and recession, both in the US and globally, a number of our clients have expressed concern over a possible market correction and have asked if it is prudent to wait to buy after a correction.

Vikki and I just came back from Anaheim, CA for Keller Williams’ annual real estate event and we are excited to share thoughts from some of the top thought-leaders in real estate. This includes the work of an economist who spends every day looking and analyzing trends from a global and industry perspective.

They would suggest not to wait to buy real estate and here is why:

Real Estate continues to serve as a solid investment, even during a recession. Values appreciated in 4 out of the last 6 recessions.

Home Prices have risen every year for the past decade. We are expecting only a slight decrease in home prices in 2023, certainly not a correction.

Prices continue to remain stable in large measure because there are so few homes for sale (supply and demand). Six months of supply represents a balanced market and we have less than 3.

Our economists believe inflation has peaked and will continue to trend downward over the next two years toward the targeted 2%.

Mortgage rates, while significantly higher than the last two years, are still well below historical averages.

After just 3 years, clients are better off buying versus renting. After 7 years they have doubled their investment and continue to build wealth every year.

Outlook on the Housing Market Going into 2023

Thu, 22 Dec 2022 19:51:07 GMT

Earlier this week I had the opportunity to hear Barry Habib provide his outlook on the housing market and mortgage rates in the first half of 2023.

Barry is an American entrepreneur and frequent media resource for his mortgage and housing expertise. He is an Amazon #1 bestselling author for his book “Money in the Streets, and is a three-time Crystal Ball Award for the most accurate Real Estate forecasts out of 150 of the top economists in the US. You can follow Barry at https://mbshighway.com/

Barry explains why Mortgage Rates will be in the 5% range in the first half of 2023 and why Housing prices will remain strong.

Mortgage rates are impacted by Inflation and not Federal Interest rates. In November the Fed hiked interest rates (business use to borrow) by .75%. However, mortgage rates actually dropped by .75% in November, because inflation was down.

In the illustration below, Barry is tracking mortgage rates in blue against Consumer Price Index (CPI) in pink. Barry illustrates that for the last 4 years, Mortgage rates and Inflation track in a predictable manner. He also illustrates the period when the Fed artificially kept interest rates (businesses use to borrow) artificially at 3% even though inflation was beginning to creep up. The Fed should have been increasing rates in the first half of 2021 and were 6 or more months late in trying to slow inflation through interest rate hikes.

The rate of Inflation will continue to come down.

In the chart below, Barry illustrates that Inflation is calculated by aggregating 12 monthly inflation measures. As such, the aggregate inflation index for December 2022 (reported in January) will be lower if the metric for Dec 2022 is lower than Dec 2021 that rolls off of .6% and the aggregate inflation index for Jan lower if the monthly metric for Jan 2023 is lower than Jan 2022 that rolls off, also of .6%.

Finally, Barry illustrates how 30 year Mortgage Rates have historically moved up and down with the 10 Year Treasury rate. The red line illustrates the historical spread between the two at 2%. We are currently seeing an unusual high spread of 3% or 300 basis points, which suggests Mortgage Rates are likely to drop. When 10 Year Treasury drops to 3%, which Barry believes will occur, Mortgage Rates will be 5%.

Housing Prices, like any other industry is a function of supply and demand. Inventory (supply) is still a fraction of what it was in the housing price “bubble” of 2007. Barry believes when interest rates drop to 5%, more buyers will come back to the market, helping housing to retain or increase their value.

If you would like to discuss this data and information, please feel free to reach out to me today by clicking the button below. I would love to chat about your real estate questions and needs.

6 Real Estate Market Updates You Need To Know

Tue, 20 Sep 2022 16:00:00 GMT

One of the many perks of being an agent at Keller Williams, the world’s largest real estate brokerage, is the amount of education and knowledge and insights available to us.

While at Mega Agent Camp in Austin, TX last month, we listened and absorbed all we could for our clients. While I could just attach the same slides I received from this, I'm just going to list the top 6 most important market updates that we believe you need to know. Take a look below and let me know if you have any questions about the real estate market in your area!

1) We believe a shift in the market has occurred from a seller’s market to more of a buyer’s market, with the 5 year projected annual sales of 27M from 32M as illustrated below.

2) Compared to last year, there are a bit more homes available for sale, but still well below what is considered a balanced market. Finding homes is still difficult for buyers.

3) In spite of having such limited inventory of houses, we expect average home prices to continue the historical upward trend.

4) When houses do come to market, they don’t remain available long, just two weeks on average.

5) Mortgage Rates are significantly higher this year, but are still nowhere near historical rates. The rate “holiday” we saw last year has ended.

6) With all that said, renting is an expensive alternative. The cost of renting is rising dramatically. Not only is there a shortage of rentals right now, but the prices are rising rapidly with inflation.

This makes it imperative that you work with a REALTOR® that has connections, knowledge, and the skills to help you buy or sell your home at a realistic price and in a realistic timeframe.

We know that real estate and the current market can be overwhelming. That's why we're here to help inform, educate, and assist you throughout the process of buying, selling, or investing. Contact us today if you're ready to discuss listing your home, if you are ready to find the home of your dreams, or if you have any questions regarding real estate (or not)!

Design Corner: Hot Colors of the Summer of 2022

Tue, 26 Jul 2022 15:00:00 GMT

After a trend towards neutrals (can you say white, cream and gray?) and a dreary couple of years cooped up at home during this pandemic, people are ready for fun, bright and energetic. Designers and homeowners everywhere are craving COLOR -- whether it is pops of color in upholstery and accents or in paint colors and wallpaper.

If you are getting a home ready to sell, probably best to stick with the basics as it relates to what you do with the walls. But you can still introduce jolts of color with pillows, art and accent furniture.

If you are just getting into a new home or staying put in your existing place for a while, it might be safe to introduce color in a more comprehensive way that speaks to you and represents your style.

Sherwin Williams has announced that Chartreuse (SW0073) is the color for July. While Chartreuse may sound like an overly saturated greenish yellow, this version is really more of a sun-punched yellow with green undertones.

Pantone named Very Peri -- a purple-tinged blue option -- as their color of 2022.

And last but not least - YAY! Wallpaper is cool again! For some of us, it was never really out but with all then removable options, it makes showing your personality easier than ever.

Thanks for joining me on my first edition of Design Corner. Feel free to send me ideas and topics for the next design discussion!

Taxes Are Our Best Friend

Tue, 12 Jul 2022 17:03:04 GMT

I have recently read a book, Tax-Free Wealth, How to Build Massive Wealth by Permanently Lowering your Taxes by Tom Wheelwright.

The book contains over 20 strategies for reducing taxes - here are a few excerpts from the book I found particularly fascinating:

Of the 5800 pages of the tax code, 30 are dedicated to raising taxes and the other 5700 plus on reducing taxes.

Real estate investors enjoy great financial benefits. You can buy a property mostly with the bank's money and get a tenant to pay enough rent to make your payments to the bank and have a little left over. When you buy real estate right, history shows it increases over time as illustrated below.

The tax benefits (including depreciation) can be greater than both the cash flow and increase in value. Depreciation is like magic, it creates money out of thin air!

Here are a few more strategies I think you might find helpful:

Shift income from your business to your children, grandchildren, or your parents and then have them take the money and invest in a business you control so you can direct how the money is spent
Turn business income into passive income by giving part of the business to a member of the family that does not work in the business (you still maintain control); their share is passive income that can be used to offset passive real estate losses
Trade stocks and options in a self-directed Roth IRA to permanently avoid taxes

I'm Buying a New Construction. Why Do I Need An Inspection?

Thu, 21 Apr 2022 15:00:00 GMT

There are many benefits to purchasing a newly built home. If you catch the builder early enough in the process you can often pick finishes, such as your own colors, flooring, cabinets, appliances, and more. Most builders include a one-year warranty with the purchase of a new home.

Everyone loves a warranty!

You’re probably thinking you’ve got it made as far as repairs go. “Everything is new, I should be able to live here a long time without having to replace anything!” “Right?” In a perfect world, sure! Roofs will last 25+ years, and that fridge will last 30 like your grandmothers did. Your Plumbing? It’s new! There’s no way it will leak! Yeah, right. You’ve no doubt heard someone say, or said yourself, “things just aren’t built the same anymore.” With streamlining of manufacturing processes, things just don’t last as long as they once did. And that includes your

new home.

There are wonderful builders out there that produce a well-built, top-notch home. However, the truth of the matter is no matter how great a reputation your builder has, you can’t skip the inspection process. Most builders aren’t hands on, even great ones. They have foremen, superintendents, contractors, sub-contractors, and sometimes those “subs” hire the “most affordable workers.” If one link in that chain isn’t doing their best work, something could easily be missed. In the end the builder, should be responsible for the product being produced. Period. No, they might not have done the work themselves, but they hired the guy who hired the guy to do the work, and the guy who is supposed to oversee that work reports directly to the builder.

“Wait a minute, if the home is built in an area that requires building inspections won’t they check for problems?” Yes, and no. A good Building inspector is going check to make sure that the workers are following and meeting the required building codes. But no one’s perfect. We make mistakes, we miss things, we have bad days. And that includes building inspectors. They are there to do a quick once over, and don’t often look at the details of construction. Sometimes a product can be faulty. But what if that fault isn’t noticeable at the time an inspector does his job?

“So, what are some common problems with new construction that a building inspector might not catch?”

Here are 3 examples:

Roof problems. Flashing, uncut ridge vents, torn shingles… An inspector could miss one, and Not ALL superintendents are going to double check these things.
Grading issues. Flat grading, or grading that slopes toward the home, often goes unnoticed and can create serious issues in the future.
Poor exterior work. Sloppy fascia, soffits, and siding can easily be missed and cause major issues down the road, like water damage.

“So what do I do?” good question. Hire an inspector. Even if it’s not required. ESPECIALLY, if it’s not required. Some states don’t require building permits or building inspections in rural areas. If that’s the case with your new home, Hire an inspector! Make sure you let the builder know up front, that you will be hiring your own inspector. If they say no, find another builder. Most builders should be fine with you hiring you own inspector as long as they have notice and can account for that time in their building process. Building Inspector Meredith Jones, from Birmingham, Alabama says this: “Builders can be upset when you don’t notify them at the beginning of the contract process that you are planning to have one or more inspections prior to the closing date.” Meredith says You should include wording like this in your contract “Builder to give client 3-5 business days’ notice for the completion of buyer’s pre-drywall phase inspection prior to moving forward with installing insulation and drywall in the home. Builder to have certificate of occupancy and permanent power on before the client has their final home inspection, 5 days prior to closing.”

The safest bet is always to check with local officials to see if inspections are required. If you are curious what all an inspector you hire should look for, click here for a link below to their standards of practice .

Valuable Real Estate Insights

Thu, 24 Mar 2022 14:00:00 GMT

Given the run up in real estate prices last year, a number of my clients have expressed concern over a possible market correction and asked me if it is prudent to wait to buy after a correction.

I am just back from Orlando from an annual real estate event and excited to share what we learned from some of the top thought leaders in the industry.

I will attempt to reduce 5 days of learning into 4 points:

Point 1:
Appreciation in 2021, while significant, was more of a price catch up to get closer to the 4% long term average annual increase and prices are actually projected to rise modestly again in 2022, not crash

Point 2: Mortgage Rates, even inching up to 4% in 2022, are half of the historical average making purchasing real estate incredibly affordable:

Point 3: Points 1 & 2, rising home prices combined with historically low mortgage rates, creates an affordability index. For the last decade, we continue to be well below the average of 20% of income allocated to cover the cost of a home.

Point 4: Distressed sales, which were up to 40% of all sales during the crash of 08, were less than 1% last year and projected to be less than 1% this year.

Given these 4 points, waiting for a correction results in buyers missing the opportunity to build generational wealth through real estate.

Let's go find a property in the second most affordable place to live in the US (Birmingham, AL) !

Tax Tips You Need To Know If You're Selling Your House

Wed, 02 Feb 2022 15:00:00 GMT

Recently, Ken Grodner was approached by Apartment Therapy to give a few tax tips for when someone is selling their home. The article he contributed to is an excellent read and was enjoyed by everyone who read it, but we wanted to give you all Ken's full version. Enjoy!

Because a house is considered a capital asset, the profit from the sale of the house is considered a capital gain, and it is subject to capital gains tax. Here are some ideas for reducing the size of your capital gains tax:

If you are able to hold your property for longer than one year, the gain is considered long term and taxed according to your tax bracket, either at 0%, 15% or 20%. Therefore, if you are able to sell a property in a low-income year (e.g. you or your spouse leave a job), you can reduce or eliminate your capital gains tax.

If the house you're selling is a rental property or other type of investment property, you may be able to defer the taxation on your gain if you sell it in a 1031 exchange or like-kind exchange. Instead of paying taxes on the gains now, you push the gains into another property and pay the taxes later when you sell the new property.

However, a number of criteria must be met, including closing on the new property within 180 days after the initial sale. While that may initially seem like a long time, we often see clients scrambling to close before the 180 day deadline.

While many of our clients are aware of 1031 exchanges and the benefits of long-term gains, cost segregation and opportunity zones are two additional tax reduction strategies many may not be aware of.

Cost Segregation allows investors to accelerate depreciation deductions and defer taxes. Depreciation for an investment property is typically calculated based on a useful life of 27 ½ or 39 years. Leveraging this approach, you identify and segregate property-related costs that can be depreciated over as little as 5 years such as electrical outlets for appliances or computers.

Opportunity Zones were created to promote investment in distressed regions of the country. When you invest in Opportunity Zones with the capital gains from the sale of a property, you can defer all capital gains for eight years, decrease the amount of any capital gains tax by 10% and 15% and even receive a full tax exemption on future capital gains from the invested funds if certain criteria are met.

Since there is no income restriction for investing in Opportunity zones, this strategy works well for investors in high tax brackets.

Real Estate in Divorce: Selling a Marital House

Wed, 05 Jan 2022 15:00:00 GMT

Selling a marital home can be a difficult decision, especially for spouses with children or those
who purchased it as their “forever home.”

However, selling the house may give both spouses much needed closure and greater financial resources to start anew.

As realtors, we understand that our role is to do what’s best for each of the spouses and the property, while maintaining strict compliance to specific orders regarding the house and the homeowners listed on the title. As a result of our experience, we have been written into divorce decrees as the agent of record to sell the marital home.

Maximizing the Value of the House:
We look for evidence of distress to the home and opportunities for improvement to the home in order to maximize the sales price of the home. We understand our clients may not have an appetite for making improvements, and understand our role is to provide the information so the parties involved can make the best choice for them. We understand good communication helps establish trust and neutrality.

Creating Balanced Solutions:
Having a husband / wife realtor team allows us to meets with the parties separately to avoid having too much communication with one client to make it look like we are taking sides. We understand one spouse may be anxious to sell the house, while the other is still grieving the loss of both their house and their marriage, and we work with both parties to provide balanced solutions.

Communicating with the Attorneys:
We understand and appreciate proactive communication with the attorneys is critical. We update lawyers regularly, including when the listing agreement has been signed, once the house is on the market, when the sale is in escrow, and when the sellers are ready to close.

Avoiding Landmines:
We make sure the title will respect a Power of Attorney in the event the client is unavailable for the closing. A mortgage payoff is ordered early to ensure we are aware of any changes that might have occurred with the monthly payment process. We look for orders such as a right of first refusal, where one spouse wants to buy out the other. This can affect the basic rules and regulations of real estate sales and we address that up front with both parties. This often requires the purchaser to acquire a new mortgage, liquidate savings or both, and we identify that need early in the discussions. Finally, reverse mortgages can be used with buyers over the age of 62 as a tool in divorce when one person wants to stay in the house or to help a buyer when they want to move into a new house.

Considering Tax Laws:
Speaking with your accountant is vitality important to understand the tax ramifications associated with selling a martial home. For example, if a buyout happens as part of a divorce, the selling spouse may not need to pay taxes on the money that they receive under a tax exemption for divorcing couples.

Living our Values - Client Focused and Performance Driven:
We understand selling a marital home can be complicated for our clients. For Vikki and I, lead realtors of the Hospitality Network Group at Keller Williams, helping families rebuild allows us to live our values of client focus and performance driven.

Paint Color Really Can Impact The Value Of Your Home

Wed, 10 Nov 2021 16:00:00 GMT

In a recent study by real estate website Zillow and paint company Behr, the companies quantified and validated the old adage that paint color really can have an impact on your home's value. The right paint color in the right areas of your house can impact value by as much as $5,000, for a typical US home valued at $290,000.

Based on a recent survey of 1,300 buyers, Behr has curated a collection of paint specifically designed to increase the value of your property. The collection ranges from ethereal dove tones to sophisticated, moodier tones like dark navy and neutral mushrooms.

So, what conclusions did these two home experts come to?

For bathrooms, where you go to relax at the end of the day, pale blue and greens are a solid choice. In the bedroom, where you want to cocoon, a darker, moodier color is the best option. A moody blue, for example, works in a space where a feeling of light and space is less of a priority. And in a finding that likely will surprise no one, white kitchens are where it's at from a value perspective, to appeal to the greatest number of prospective buyers.

So, if your Hospitality Network Group Realtor® suggests repainting may be the thing, now there is solid research to back up this recommendation.

Owning A Home Before 30

Wed, 06 Oct 2021 15:00:00 GMT

In today’s world, younger adults are becoming more successful earlier in life.

Many professionals in their 20s enjoy very successful careers. While they are building those careers, they often rent townhomes, lofts, and apartments as their primary residences, paying ridiculous amounts in rent for convenience and security.

When asked if they would like to own a home, they often respond, “I don’t have my life partner” or “I don’t have a family yet.” My response to them is even if you anticipate these things to happen soon, there is nothing wrong -- and much that is right -- about securing an investment. After all the term is “starter home.” I speak from experience because I was once in their shoes.

Often, we have in our mind that things should go in a certain order. But honestly, there is a chance things may be aligned differently in your future.

I had a career, no children, and no spouse but I was determined to be a homeowner. I ended up finding my “starter home” at a great price. I was paying less in mortgage than most one-bedroom apartments. Seven years later, I sold the home for 2.5 times the amount I purchased it for. This was not only an investment but it also gave me the space, privacy, and time needed for things to align the way I wanted them.

Learning from my own experience, I encourage young adults to break pre-conceived notions about waiting to owning a home until they have a family, and to look at it as the solid investment it can be. Who knows what the future holds.

How To Buy A Property And Get Paid To Live In It

Wed, 22 Sep 2021 15:16:48 GMT

What is your biggest expense that you have to pay for each month? Whether you're a doctor, teacher, or construction worker, your answer is probably the same- Your monthly housing payment.

For many, this monthly payment does not only affect the bottom line; It also adds the weight of financial stress. What if there was a way to own a house, live expense free, and build long-term wealth? Good news! It’s possible with something called House-Hacking.

House-Hacking is a real estate investing strategy where an owner lives with paying tenants, allowing the owner to live for a discounted rate, for free, or even generate a profit. Typically, house-hacking is associated with owner-occupied multifamily properties like a duplex, triplex, or a quadplex. However, you can also house-hack by renting out specific rooms or other areas in your home, even with a single-family property. Here’s an example of how an owner could convert his biggest monthly expense into a profit.

It was love at first sight when Bill’s realtor showed him a new listing for a Duplex in his area. While conducting his due diligence on the property, Bill calculated his mortgage, taxes, insurance, utilities, and other expenses, which totaled $1500/mo. Bill valued his financial freedom, so he called two of his friends to see if they wanted to move in with him to help him cover his monthly expenses. He rented out one unit for $1000/mo to one friend and rented out a room in his own unit to his other friend for $600/mo. Bill buys the property, his friends move in, and Bill is now making $100/mo in profit from his living situation.

After comparing his current living arrangement to his previous rent payment, Bill is now saving thousands every year, and building equity in a house that he can call his own. After a year, Bill moves out, and now charges each friend $1000/unit. He finds another property and repeats the process. After a few years, Bill has multiple properties, and has enough income to quit his day job, hire a property manager, and spend his time doing what he pleases.

House-hacking can be a great way to get into real estate investing or just to cut down on monthly expenses. However, it will require you to be a landlord. This means dealing with maintenance, tenants, evictions, and any other problems that might arise. This will take effort and time, especially in the beginning. Landlording for the first time may seem ominous at first, but there are ways to speed up the learning curve. Reading books on landlording, networking with local real estate investors, and developing systems to run your business can make this process much easier to manage.

House-Hacking isn’t for everyone. However if you are willing to be a landlord and live with or next to your tenants temporarily, it could be your entryway into financial freedom.

Buying A Home In A Decidedly Sellers Market

Thu, 05 Aug 2021 14:40:53 GMT

Buying a home is a dream for many. But in today's seller-driven market, that dream can sometimes turn into a nightmare.

From multiple offers to a "new normal" (seller's not being willing to pay closing costs, for example, or asking to have inspection or appraisal contingencies waived), the current real estate environment can make buying a home tough. But for those with perseverance and a willingness to think creatively, it is still possible to score your dream home.

1. Look at the road (or in this case, the house) less travelled. If a house has been on the market for more than a few days in this hot market, then it might be one to consider if it meets your basic criteria regarding square footage, number of bedrooms/bathrooms, area of town or neighborhood, etc. This usually means that the property may need a little updating (EVERYBODY seems to want white walls these days) or may have something a little quirky about its layout. But if you are willing to put in a little effort, or to put on your creativity thinking cap regarding how the house might work for you, you may create instant equity with some simple changes.

Do keep in mind that there are some things that cannot be overcome and may be the reason a house sits on the market -- if it is on a busy road, in a flood plain or next to an industrial park, those are likely issues regarding the property that cannot be overcome.

2. Consider houses that do NOT meet your immediate criteria. This may seem to somewhat contradict #1. But if, for instance, a three bedroom, two bath (the most popular request for most people looking to buy a single family home) is a must have for you, then a four bedroom, one bath may have the room or layout to convert one of those bedrooms into a bathroom. And by the way, a lot of people will not even look at a house with only one bath, making for a smaller pool of competitors for such a house.

3. Ask your Hospitality Network Group Realtor if they know of houses that are not on the market. The real estate industry is all about cooperating with other agents. Nevertheless, we may be aware of a house that is coming to market, or has recently gone off the market. Both of these scenarios can potentially uncover inventory that is not currently visible to everyone else. Similarly, we have techniques we can employ to try to bring a house to market that meets your needs if you are focused on a particular neighborhood. Ask your favorite HNG Realtor how we can do this.

4. Lastly, consider not just price but the terms of an offer. If you do find yourself in a bidding war for a property, there are numerous elements to a deal that can give you a greater chance of succeeding in having your offer ultimately be the one that is selected.

Use of an escalation clause. Not all listing agents will accept an escalation clause, but if they will, this can allow you to pay over the asking price if needed without paying more than is necessary for a property. On a property listed for $250,000, an escalation clause may read something like this: "buyer will pay $100 over the next highest offer up to $265,100" If there are other offers and the highest one other than yours is $260,000, then the escalation clause would result in our client (YOU!) being able to purchase the home for $260,100. Of course, there could be someone who offers $270,000, and then their offer may be the one ultimately selected. However, price is only one term criteria.
Purchasing a home as is. Letting a buyer know you are not going to ask for them to complete a long list of minor home repairs can be an attractive carrot to dangle. Buyers can still do a home inspection and if there is something major, would still have the opportunity to walk away from the purchase based on the unsatisfactory results of a home inspection. Some buyers go so far as to waive a home inspection but this is not something that we recommend.
Waving the appraisal contingency. Financed purchases will require an appraisal. Cash deals do not. You can waive the appraisal contingencies in both cases but need to be aware that if you are financing and waive the appraisal contingency, and then the home does not appraise for the purchase price, you will need to come up with the difference between the appraised price and the agreed upon purchase price.
Both waiving of home inspection and appraisal contingencies can be ways to make an offer stronger but also can potentially create a dangerous situation for the buyer. Proceed with caution when considering waiving inspection and appraisal contingencies.
Offer to pay the seller's closing costs in addition to your own
Write a "love letter" to introduce yourself to the seller. Sometimes this can help sellers to become more invested in a particular buyer. Your Realtor can also speak with the listing agent and try to find out what is important to the seller, and then this can be reflected in the letter as well. So, for example, if you find out the seller needs a quick close this can be something that you as the buyer might be able to accommodate, if you are making a cash offer or work with your lender to try to close in under 30 days. Or when you tour the home, you might take note of shared interests you have and can speak to in your letter.

While all of these techniques are not sure fire, when used successfully by a buyer with an open mind, they may result in you finding and getting the house of your dreams sooner rather than later.

Things To Remember When Purchasing A New Home

Thu, 05 Aug 2021 14:40:53 GMT

For home buyers, it’s the little things that matter…

When purchasing a home, much attention is placed on activities such as securing a loan and identifying and addressing required home repairs and signing contracts. And rightfully so, as these are not only required, they are vitally important.

However, it’s the little things that buyers sometimes do not think about that can become, at best, annoyances and major problems at worse.

Just as you are getting acquainted with your new neighborhood, if there is a pet in your family, so are they. For our pets, and for many of us, for that matter, change can be hard. Our pets they can become disoriented and easily confused in their new surroundings. Having a collar created with their new address, be that written or programmed, before they move rather than after they are lost, can save a great deal of heartache for you and your furry child.

How about those household essentials that we take for granted until we move or buy our first house and just do not think of them until we need them but do not have them. External to the house, that would be trash cans and watering hoses. Inside the home that could be items that were affixed to the home and therefore a part of the home, including TV mounts, built in microwaves and bathroom mirrors.

While we have hopefully thought about transferring our utilities such as power and water, we often forget other service providers that are just as important. If you have a security system, we encourage you to contact your security company as soon as your move is official. That way, you can kickstart the conversation to begin planning your new home's potential security options. Make sure to give at least 30 days notice so that last-minute planning doesn't lead to any lapses in your home security. The same applies for your internet service as well.

And what about that Nest thermostat if you have one? If you are moving to a new home and leaving a Nest product behind for the new homeowners, you can simply remove the product from the Nest app and reset it to factory defaults. The new homeowners will be able to add the product to the Nest app on their own phones if this is what they want.

And what about setting up a Nest in the new home? Since you're moving to a new home with a different HVAC system, the first step is to make sure the HVAC wiring at your new home will work with Nest Thermostats and if so, which version.

So it’s the little things that help us stay cool, stay connected and stay safe.

Short Term Rentals: Investments For Your Future

Thu, 05 Aug 2021 14:40:52 GMT

What are short term rentals? Well it really depends on where you are located as to how it is defined. The State of Alabama defines short term rental as the use of a property for rental purposes to a single individual for less than 180 consecutive days. The City of Tuscaloosa defines short term rentals as the transient use of a property for the use of rental purposes for less than 30 consecutive nights. Short term rentals are an underused but highly lucrative option for investing in real estate. If you've never considered investing in short term rentals, you're certainly not alone. However, this is actually an excellent investment opportunity for even the novice real estate investor. Although the vacancy rate for short term rentals is generally higher than for long term rentals, the additional income typically covers the difference. Short-term rentals also offer more flexibility than properties with a monthly or yearly lease. Companies such as Airbnb and VRBO have brought the short-term rental market into the mainstream, making it easier than ever for investors to profit from real estate ownership. Owning this type of rental property allows investors to reap income over time while the underlying asset appreciates.

Benefits Of Short Term Rentals

Short term rentals give their owners flexibility and greater control over their property and many other benefits. So let's take a look at some of the main advantages that short term rentals offer their owners:

Personal vacation use: Many investors like to make personal use of their vacation rental property and rent it out to others when it is not in use. When a property is listed on the short term rental market, it is much easier for the owner to block off the dates they would like to use the property.
Less wear and tear: Short term rentals tend to be occupied around weekends and busy tourism seasons, but not throughout the entire year. Because of this, it tends to take relatively longer to build up noticeable wear and tear on the property.
Easier maintenance: Similar to the less frequent wear and tear of short term rentals, these properties are often easier to maintain. Short term rentals are cleaned and prepared for new occupants more regularly, which translated to better-maintained properties. This helps to prevent any long term damage to the property. If any maintenance problems arise, a short term rental owner has easier access to the property without disturbing residences.
More overall rental income: Owners are typically able to charge a higher nightly rate for short term rentals, compared to long term vacation rentals. Although occupancy can fluctuate, making rental income less consistent, short term rentals tend to provide more rental income long term.
Price Adjustment: Short term rentals offer their owners the ability to adjust the price of rent more often than owners of long term rentals can. Short term rental homeowners can change the price of rent in between occupants as they see fit. If there is a higher demand for their rental in the summer season, they can raise their rent and produce more income. They are not limited to year-long lease terms that long term rental homeowners experience.

Short term rentals are not without potential downsides. Because rental income is a direct result of being able to book short-term guests throughout the year, short term rental owners will find that they need to put in more effort to market their home. This could include messaging back and forth between interested guests, updating listing sites, or offering promotional discounts. Also, many rental owners will choose to manage tenant turnover on their own to help lower costs but that could become time consuming. Finally, most guests will expect their short term rental to be nicely furnished when going on vacation. This will require owners to update or replace furnishings as needed, which is a cost that should be considered.

In summary, when weighing the pros and cons of investing in a property for short term rental, the pros significantly outweigh the cons. Why not have a property that you can benefit from both financially and personally.

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