How well do you know your Millennial clients?

According to a report released by the Demand Institute – a non-profit think tank formed by the Conference Board and Nielsen – some myths about Millennials might be busted within the next five years and their spending habits may turn out to be similar to previous generations.

The Demand Institute drew several conclusions based on its summer 2013 survey of 1,000 Millennials (ages 18 to 29), stating that Millennials don’t seem to be as inclined as previously thought to rent instead of buy homes.  In fact, the report states that Millennials seem likely to make similar choices about their futures as their parents’ generation.

The report states that Millennials will form 8.3 million more households in the next five years, so that by 2018 they will spend more per household on rent and home purchases combined than any other “generation” will in the next five years.

Other conclusions about Millennials include:

  • 79 percent expect their financial situation to improve in the next five years.
  • 74 percent plan to move in the next five years.
  • 64 percent expect to be married in five years.
  • 55 percent expect to have children in five years.
  • 84 percent either own a home or plan to own a home someday.
  • 75 percent believe home ownership is an important long-term goal.
  • 61 percent are looking for more space in their next home.
  • 48 percent plan to live in the suburbs, 38 percent want to live in the city.
  • 61 percent prefer a short drive to the grocery store rather than walk.
  • 88 percent of Millennial households own a car today.

Want more? See the full report.

10 ways to know if you need a real estate license to manage property in Illinois

IAR gets thousands of calls a year for legal guidance. One hot topic off the association’s Legal Hotline was property management, which, when you do it for another person and for compensation, requires a properly sponsored real estate license.

The question: Must I have a real estate license to engage in property management activities?

The answer: To the extent that those activities are included in the Illinois Real Estate License Act of 2000 (the Act) at Section 1-10 under the definition of “Broker,” and you are doing the activities for another and for compensation, you will be working within the scope of your real estate license.

The list of activities taken from the definition of Broker under the Act is:
(1) . . . rents or leases real estate.
(2) Offers to . . . rent or lease real estate.
(3) Negotiates, offers, attempts or agrees to negotiate the . . . rental or leasing of real estate.
(4) Lists, offers, attempts or agrees to list real estate for . . . lease . . .
(6) Supervises the collection, offer, attempt or agreement to collect rent for the use of real estate.
(7) Advertises or represents himself or herself as being engaged in the business of . . .  renting or leasing real estate.
(8) Assists or directs in procuring or referring of leads or prospects, intended to result in the . . . lease or rental of real estate.
(9) Assists or directs in the negotiation of any transaction intended to result in the . . . lease or rental of real estate.
(10) Opens real estate to the public for marketing purposes.
(11) . . . leases or offers for . . . lease real estate at auction.

Read the Legal Hotline Top 5.

Be one of the first to get the REALTOR® Credit Card

Show pride in your profession and enjoy the benefits that you deserve by getting the REALTOR® Credit Card from REALTORS® Federal Credit Union, a division of Northwest Federal Credit Union.

REALTOR® cards offer competitive interest rates, a comprehensive rewards program and real estate-themed designs.  They do not have annual fees or fees for balance transfers or cash advances.  To be one of the first to apply, follow the directions posted on the National Association of REALTORS® (NAR) website and when the application is available, you will be contacted.  Plastic cards will be available in November.

REALTOR® cards are available for NAR/IAR members, real estate practitioners and advocates for home ownership, such as association staff and family members.  Approved applicants can choose to have a title printed under the cardholder’s name, such as:

  • REALTOR®,
  • Association Executive and
  • Commercial Real Estate.

For more information, request the form now or stop by the NAR booth (#1019) or the Credit Union booth (#1511) at the NAR Conference & Expo (Nov. 7-10) in New Orleans in the NAR Pavilion.

The cards are offered through NAR’s REALTOR Benefits® partnership.

HUD Secretary: More must be done to expand homeownership

Department of Housing and Urban Development (HUD) Secretary Julián Castro said Tuesday that more must be done to boost homeownership in the U.S. and make home financing more accessible. REALTORS® welcomed Castro’s comments and in a statement, National Association of REALTORS® President Steve Brown said:

“By making access to affordable homeownership the cornerstone of his vision for the future of the Department of Housing and Urban Development, Secretary Julian Castro is proving himself to be dedicated to the values supported by Realtors® and hardworking families everywhere.

“NAR looks forward to working with Secretary Castro and HUD officials to fulfill his vision and refine FHA policies that ensure responsible borrowers are able to purchase homes at all stages of their lives.”

Find media coverage of Castro’s comments:

New HUD Head Castro Pushes Nationwide Homeownership – National Mortgage Professional

HUD’s Castro Looking to End Shame of Promoting Homeownership – Bloomberg

Julián Castro Urges Broader Access to Mortgages – Wall Street Journal

IAR efforts delay vote on Deerfield code change mandating fire sprinklers

Deerfield’s board of trustees was poised to adopt wholesale a set of changes to building codes.

That’s when IAR Government Affairs Director Howard Handler stepped in to ask why new homes would be required to have sprinkler systems installed under the proposed changes. Handler is a Deerfield resident, and works with the Northshore-Barrington Association of REALTORS® on IAR’s behalf.

Handler spoke with IAR Communications about the proposal, and how he was able to help stop trsutees from immediately voting on the measure.

The board is expected to take up the building code changes in October, but already several members have questioned what the impact might be on the community.

See Handler’s take on the proposal, and what he has told trustees about the measure which could add perhaps $10,000 to the cost of a new home.