housing affordable for most people and prices stable. Advocate for the best interests of clients, which, in turn strengthens our collective voice when talking to government and non-government organizations about effective, affordable housing policy. Our personal reputation and the reputation of our brand is strengthened by conducting our business in such a way that we are advocates for affordability. WHY IT MATTERS It is in our collective interest to ensure that as many people as possible can afford housing for price stability and the wealth effect it produces for our clients. Housing has become unaffordable for too many, there is not enough of it, and first-time homebuyers need help reaching their homeownership dream. What is the consequence of not being an affordability advocate? The housing we provide continues to be affordable for fewer and fewer people, price stability comes under pressure, and others will shape housing policy without us. There are many practical ways we can act as advocates for affordability, including educating our homebuyers about the options for reducing the cost and barrier to home ownership. Being an advocate matters because it is good not only for our clients but also for our business and long-term success. •
“AFFORDABLE HOUSING BRINGS STABILITY, ECONOMIC DIVERSITY, AND IMPROVES THE PHYSICAL QUALITY OF THE NEIGHBORHOOD.” —John Woods
2 Educating homebuyers and sellers on seller financing options that give more people a path to homeownership. 3 Educating homebuyers and homeowners on house hacking or offsetting their housing costs by buying a house with
POTENTIAL CONSEQUENCES The consequences for not leading efforts to help with affordability are: More homelessness. Less wealth creation. More government intervention
(think: rent control). Losing the ability to
someone else or renting a part of their property. 4 Educating investors and
influence and shape the outcome for housing in America as real estate professionals and investors.
homeowners on the potential to add an ADU to their property to offset their housing costs
The last thing we need is misguided government intervention that actually provides less affordable housing options. We must conduct our business and view ourselves as affordability advocates providing options that are of high quality and affordable for homebuyers and renters. This will strengthen our collective voice as we work with individual families, government, and non-government agencies to craft policy decisions that actually provide more housing affordably. HOW TO BE AN AFFORDABILITY ADVOCATE There are many ways investors and real estate professionals can educate and help with affordability, including: 1 Educating homebuyers and sellers on loan programs with downpayment assistance.
and provide an affordable housing option for others. 5 Not allowing homebuyers to get emotional and overpay or even engage in a multiple-offer situation. 6 Increasing opportunities for buyers who live in an
unaffordable area to purchase an investment property in an affordable area and use the equity to buy more investment properties there to build up equity to purchase a property in the area they prefer to live (but is unaffordable now).
Jeff Roth is the founder of Arbor Advising in Ann Arbor, Michigan. Arbor Advising is a real estate consultancy dedicated to growing and securing clients’ wealth. They are passionate about helping clients invest, buy, and sell in Michigan. You can contact Roth at jeff@arboradvising.com, visit www.arboradvising.com,
POSITIVE IMPACT TO YOUR BUSINESS
Being an advocate for affordability is good not only for others but also for business. Keep your product of
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