Depending on who you trust for information, homeownership is the only path to wealth and security. But are we getting enough information to make informed choices about this big decision? On this episode of Real Estate Uncensored, we talk to real estate experts and co-authors John Agostinelli and Chris Michaud. They share insights on the real estate crash from inside the industry, and whether homeownership is the right path for everyone.
One of the main underpinnings of the economy is confidence. If we keep the confidence up, spending keeps going up. Bad things happen when confidence goes down. -Matt Johnson
Takeaways + Tactics
Agents have to educate themselves beyond what the media and vested institutions say about homeownership so they can better inform clients.
When people calculate the benefits and costs of home ownership, they rarely calculate the lost opportunity cost of the money that went to the downpayment.
When it comes to homeownership, don’t max out, buy about 80% of what the bank says you should.
On this episode we discussed; The crash: what John and Chris learned from the inside and the disconnect between what the media was saying and what was happening. Advice for real estate agents from John and Chris’ perspectives The real estate industrial complex and the vested interest groups that are self-motivated to prop up housing The truth about homeownership you won’t hear from the media Recommended readingKey Quotes
Homeownership isn’t always a great investment especially if you take into consideration the operational and maintenance costs of the house. -John Agostinelli.
It’s been believed by the political class that homeownership is a good way to bridge the wealth gap. -John Agostinelli
People don’t look at homeownership as a business. They don’t look at it as an investment property but rather a consumer good, an expense and a way of buying into a lifestyle. If you follow the media, the message that is widely given to consumers is that homeownership is a path to wealth. However, there is more to this picture and it’s necessary for agents to be informed, so they can inform their clients of the best path for them. Be candid with your buyers, not just about the price of buying a home, but the costs too. Guest BioJohn Agostinelli has over 25 years experience in banking and real estate industries having worked at the FDIC examining the causes of bank failure and managing foreclosures in Massachusetts, NH and RI. He is also a real estate investor, speculation home builder and rehabilitates properties which helps communities to recover from the blight and regression caused by distressed properties. He is a guest speaker, author, real estate expert witness and real estate investment coach.
Chris Michaud is a 30+ year veteran of the real estate business as a real estate investor, broker and industry insider with some lobbying experience at the state and national level. He’s a sought after guest speaker and author. He was a past state REALTOR President-elect, an investor coach and trainer of the RealInvest Profit System.
For information on Chris and John’s upcoming book go to easymoneyamerica.com.
Click here to download your free PDF, Greg’s Favorite Scripts, featuring scripts for buyer and seller lead follow up, price reduction and objection handler scripts and much more.
