Resort - PowerPoint PPT Presentation

Loading...

PPT – Resort PowerPoint presentation | free to download - id: 5894c-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Resort

Description:

Collective force influencing and shaping the real estate industry ... Valued by highly skilled real estate professionals and viewed by them as crucial ... – PowerPoint PPT presentation

Number of Views:41
Avg rating:3.0/5.0
Slides: 89
Provided by: reb9
Learn more at: http://www.rebac.net
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Resort


1
Welcome to NARs
Resort Second-Home Markets Course
2
Only members of NAR may call themselves REALTORS?
and use the trademark.
  • Help members become more profitable and
    successful
  • Collective force influencing and shaping the real
    estate industry
  • Leading advocate of the right to own, use, and
    transfer real property
  • Leader in developing standards for efficient,
    effective, and ethical real estate business
    practices
  • Valued by highly skilled real estate
    professionals and viewed by them as crucial to
    their success.

3
Resort Second-Home Specialist
  • A real estate practitioner who facilitates the
    buying, selling, or management of properties for
    investment, development, retirement, or as second
    homes in a resort, recreational, and/or vacation
    destination.

4
(No Transcript)
5
RSPS Certification Requirements
  • Complete core course
  • Complete one of two options
  • Option 1 Elective courses
  • Option 2 Hold a designationABR, ALC, CCIM,
    CIPS, CPM, CRS, CRB, GREEN
  • One-time application fee of 195

6
www.coursecalendar.com
  • Go to www.coursecalendar.com
  • Search by date, location, topic, designations or
    certifications, and affiliation.

7
Course Goals Structure
Essentials of buying, selling, or managing resort
properties and second homes for recreation,
investment, and development.
  • Skills and knowledge foundation
  • Clients, customers, and properties
  • Affluent or international buyers and sellers
  • Building your business
  • Overcoming bad publicity and disasters
  • Tax and investment
  • Regulatory matters
  • Quiz

8
Learning Objectives
  • Skills and knowledge foundation
  • Developing the skills required to be successful
  • Develop a business strategy
  • Impact of trends and issues
  • Customers, clients, and properties
  • Market and customer/client profile
  • Characteristics of properties
  • Financing and ownership

9
Learning Objectives
  • Working with affluent or international buyers and
    sellers
  • Adapt customer and client services
  • International referrals using the ICREA
    Transnational Referral System

10
Learning Objectives
  • Overcoming bad publicity and disasters
  • Strategies to overcome bad publicity
  • Formulate a disaster-recovery plan
  • Building your business
  • Develop and improve marketing strategies
  • Communication and marketing tactics for building
    customer and client relationships

11
Learning Objectives
  • Tax and investment
  • Investment terminology
  • Tax treatment of second-home
  • FIRPTA regulations
  • Tax-deferred 1031 exchanges
  • Analyzing the investment value of a property

12
Learning Objectives
  • Regulatory matters
  • SEC guidelines regarding investment advice
  • Impact of regulatory, insurance, growth, and
    environmental issues
  • Sources of information
  • Influencing regulatory and tourism entities to
    shape a favorable environment

13
Learning Objectives
  • Quiz
  • 50 question multiple choice quiz
  • Passing grade is 70

14
Definition
  • Lets Review . . . a resort and second-home
    property specialist is a real estate practitioner
    who facilitates the buying, selling, or
    management of properties for investment,
    development, retirement, or as second homes in a
    resort, recreational, and/or vacation
    destination.

15
Property Types
  • Single family residence
  • Condo
  • Condotel
  • Resort
  • Ranch
  • Luxury and unique properties
  • Fractional ownership
  • Time share
  • Vacation cabin
  • Gated community
  • Adult and senior community
  • City pied-a-terre

16
Buyer Objectives
  • Property management
  • Investment
  • Retirement
  • Recreation
  • Enjoyment and relaxation getaway
  • Family gathering place
  • Appreciation potential
  • Tax strategy
  • Diversification

17
Discussion Question
  • What property types and objectives do you
    encounter?

18
Resort Second-Home Markets Course
CHAPTER ONE
19
In This Section
  • Applying core real estate skills
  • Using national statistics, trends, and issues
  • Participating in community planning

20
Adapt Skills
  • A distinguishing factor for resort and
    second-home property specialists is applying core
    real estate skills, combined with specialized
    knowledge.

21
Skill Map
? Regulatory Knowledge ? Fiduciary Duties
? Product Knowledge ? Customer Service
? Financing ? Market Knowledge
? Networking ? Marketing
? Presentation Skills ? Technology Use
? Communication Listening ? Tax Issues
? Investment Knowledge ? Community Involvement
? Patience ? Negotiation
22
Regulatory Must Be A Local Expert
  • Be prepared to familiarize clients and customers
    with the laws and regulations affecting resort
    and investment properties.

23
Skill Builder Tip
  • Know the local codes and regulations
  • The specialist must be an expert in local codes,
    covenants, restrictions, and other laws that
    impact the purchase decision because buyers
    expect the practitioner to be a primary source of
    objective information. Since clients are
    frequently from another state or country, they
    typically do not have knowledge of the local laws
    and regulations affecting properties.

24
Product Market Knowledge
  • Product knowledge
  • Property
  • Destination
  • Environment

25
Financing
  • The specialist needs to know about
  • Second-home down payment and qualifying standards
  • Approaches to second-home financing
  • Helping a client evaluate options

26
Networking
  • A specialists network includes

? Builders ? Engineers
? Surveyors ? Developers
? Travel agents ? Tourist councils
? Airline executives ? Property managers
? Housekeepers ? Ranch hands
? Hunting guides ? Marina managers
. . . . and others
27
Presentation Skills
  • Maintain an appearance and personal style
    appropriate to the
  • Buyer
  • Type of property
  • Market area
  • Transaction

28
Communications
  • Know how to
  • Read nonverbal signals without the benefit of
    being face to face
  • Adapt communication approaches

29
Investment
  • Know about a range of investments and how they
    compare to real estate in general

30
Skill Builder Tip
  • Patience is a virtueSecond-home purchases are
    always discretionary. Transactions can take up to
    a year or more to conclude three-year long
    interactions prior to closing are not uncommon.

31
Fiduciary Duties
  • May need to educate buyers on the states
    statutory fiduciary duties
  • Must be comfortable with mail out closings

32
Customer Service
  • Be prepared to provide a wide range of customer
    services
  • Handle a range of aspects of the transaction that
    a residential buyer or seller would ordinarily
    handle on their own
  • Spontaneity and flexibility are essential

33
Skill Builder Tip
  • Customize market materialsThe specialist must be
    able to customize marketing materials to feature
    the lifestyle or attraction that is of foremost
    importance to the client. Is the clients
    interest in golf, water sports, or a
    family-friendly get-away? Customized marketing
    materials that appeal to a clients interests
    will have more impact.

34
Technology Tools
  • Must be comfortable with technology
  • Have a disciplined follow-up system

35
Skill Builder Tip
  • Technology tools maintain contact
  • The specialists e-mail contact and follow up can
    serve to remind customers of why they were
    interested in the first place. It can also help
    them recall the last conversation and reduce the
    anxiety that distance creates.

36
Tax Issues
  • Must be knowledgeable about
  • Tax treatment of second homes
  • For investment
  • For rental properties.

37
Community Involvement
  • Should be active in community issues and local
    government
  • Develop strong ties with local visitors and
    tourism organizations
  • Serve as ambassadors for the destination

38
Negotiations
  • Professional and non-adversarial manner
  • Provide a neutral sounding board
  • Absentee buyers and sellers or gatekeepers can
    present negotiations challenges

39
Who, What, When, Where, Why
  • Who is the typical second-home buyer or investor?
  • What kind of properties do they purchase?
  • When are second-home and investment properties
    used?
  • Where are second-home and investment properties
    located?
  • Why and how do buyers purchase second-home and
    investment properties?

40
Buyer Profile
  • Vacation-home buyer
  • 59 years old
  • Married, no children at living at home
  • Investment-home buyer
  • 55 years old
  • Married, no children at living at home

41
Median Income
  • Vacation Home Buyers 120,600
  • Investment Home Buyers 98,600

42
Profile of Homes
  • Single-family residences 83 of vacation homes
    and 79 of investment homes
  • Smaller than the primary residence
  • Vacation homes -1,480 square feet
  • Investment homes - 1,520 square feet

43
Time Rented or Owner-Occupied
  • 81 of vacation homes are never rented
  • 20 of investment homes are never rented

44
Distance from Primary Residence
  • Median distances
  • 220 miles for vacation homes
  • 10 miles for investment homes

45
Is Every Second Home an Investment?
  • 30 of all buyers expect to convert their second
    homes to primary homes sometime in the future

46
Skill Builder Tip
  • Helping investors make informed decisions
  • While a real estate practitioner should be
    careful not to stray into the territory of
    offering investment advice (unless the
    salesperson is a registered securities dealer),
    salespersons need to be able to supply the
    information about properties that will help the
    buyers compare investment possibilities and make
    informed decisions about capital placement.

47
Sources of Down Payment and Financing
  • Source of down payment for 3 out of 4 second
    homes is savings or equity from the previous home
  • Savings as the 1 source
  • Higher the price of the property the more likely
    it is to be purchased with cash

48
The Typical Buyer
  • Vacation-Home
  • Investment-Home

49
Marketing to Boomers Gen X-ers
  • Typical vacation-home buyer is a Baby Boomer
  • Typical investor may likely be a Gen Xer

50
Use of a Real Estate Agent
  • 2/3 of second-home buyers purchased through a
    real estate agent or broker
  • 6 out of 10 hired the first agent they
    interviewed
  • Buyers leading sources of information are real
    estate agents and yard signs

51
Why You Need to Know About Issues
  • Clients and customers need and deserve complete
    information
  • Community planners and regulators meet and
    communicate with each other
  • What is an issue today in another area may become
    an issue in your market area tomorrow.
  • Early warning system

52
Issues Ranked by Importance
  1. Dwindling affordable workforce and life cycle
    housing
  2. Elimination of tax deduction for second homes for
    state tax purposes
  3. Controls on growth by state and local agencies
  4. Availability of homeowners insurance
  5. Reduction and restriction of mortgage deduction
    on primary home
  6. Impact of environment restrictions on growth and
    development
  7. Short term rental restrictions
  8. Cyclical and seasonal buying
  9. Threat of impending tax on commissions
  10. Mold
  11. Zoning ordinances
  12. Preservation of natural resources

53
Skill Builder Tip
  • The specialist is a primary information sourceIn
    many, if not most, cases the buyer of a vacation
    home or investment property will be from another
    area and will look to the real estate
    professional as the primary source of information
    about local issues and regulations.

54
The Short-Term Rental Debate
  • Reasons noise, competition
  • Benefits tourism, revenue, defray costs
  • Impact diminishes value, fewer buyers, private
    property right infringement, less housing stock
  • Solutions tourist zone, grandfathering,
    licensing, post owner contact info, fines for
    nuisance tenants

55
Impact Fees
  • Fees imposed on new construction
  • Earmarked for a specific purpose
  • Increase the price of a property
  • Let development pay its fair share

56
Growth Moratoriums
  • Stop development and preserve an environment or
    the character of a town or area
  • NIMBY
  • May cause the sprawl it wants to prevent

57
Government-Owned Lands/BLM
  • 28 of land on United States
  • 80 of Nevada
  • In western states experiencing the greatest
    growth rates Alaska, Arizona, California,
    Colorado, Idaho, Montana, Nevada, New Mexico,
    Oregon, Utah, and Wyoming

58
Land Trust or Land Bank
  • Local governments buy up and hold vacant land
  • Prevent speculation
  • Use as collateral
  • De facto growth moratorium

59
Design Standards
  • Preserve community character
  • Increase property values
  • Restrict construction
  • Increases development costs and lead time for
    obtaining a building permit
  • Can be exclusionary

60
Work Force Housing
  • Critical in attracting and keeping a stable
    workforce
  • Issue for teachers, police, firefighters,
    paramedics, nurses, and others who provide
    essential community services
  • No single solution to this complex problem

61
Traffic Congestion
  • Year-round residents feel the burden of seasonal
    traffic as they try to drive to jobs, school, and
    shopping
  • Solutions may be growth restrictions, short term
    rental restrictions, and parking restrictions

62
Transportation and Access
  • Major factors in sustaining property values
  • Number of commercial airlines and the proximity
    of the airport
  • Proximity to highways and roads
  • Availability of alternative driving routes

63
MID
  • Current deduction interest paid on combined
    mortgage debt of up to 1 million on a primary
    residence and one additional residence
  • Lower limits or elimination would likely force a
    steep decline in property values

64
McMansions
  • Destruction of older and smaller homes to make
    way for new and larger homes
  • Teardowns can raise property values
  • Emotional old versus new conflict

65
Environmental Laws
  • Most attractive areas are often in the midst of
    vulnerable natural environments
  • Shore lines, wetlands, nature reserves, and
    woodlands
  • When land availability is restricted the cost of
    housing increases

66
Environmental Liability Issues
  • Be familiar with common environmental issues
  • Look for signs of pollution or contamination
    during inspections
  • Recommend environmental audit
  • Reinforce the need for full disclosure

67
Major Federal Environmental Laws
  • Clean Air Act of 1970 (CAA)
  • Clean Water Act of 1977 (CWA)
  • Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (CERCLA)
  • Endangered Species Act of 1968 (ESA)
  • Federal Insecticide, Fungicide, and Rodenticide
    Act of 1972 (FIFRA)
  • National Environmental Policy Act of 1970 (NEPA)
  • Safe Drinking Water Act of 1973 (SDWA)

68
Hunting Fishing Regulation
  • Handled by the states
  • Restrictions apply to size and placement of
    hunting blinds and deer stands
  • Wild plant gathering
  • Federal Duck Stamp

69
Sustainable Development
  • Balancing of the beauty of the environment with
    the enjoyment of it
  • Consequences of unchecked or non-sustainable
    development may not be immediately obvious, but
    will have an impact on the long-term viability
    and appeal

70
Takings and Inverse Condemnation
  • Taking government actions render a property
    unusable or inaccessible
  • Inverse condemnation government actions cause
    diminution of property value

71
Eminent Domain
  • Prior Assumed that a governmental bodys use of
    eminent domain was limited in purpose
  • 2005 Kelo decision
  • Municipality eyes pieces of prime real estate as
    ripe for development and currently
    underperforming from the view point of community
    vitality and tax-base

72
Wind Farms
  • Installations of large turbines, like modern
    windmills
  • Wind action generates electricity
  • Low impact no use of fossil fuels
  • Obstruct and detract from view

73
View Obstruction
  • Obstruction of sunlight and scenic views
  • Ridgelining

74
Mandatory Club Dues
  • Adds to the cost of ownership
  • Supports the amenities that make the community
    attractive
  • Can create a barrier for prospective buyers who
    could otherwise afford the property

75
Flood Insurance
  • Critical to the real estate transaction
  • Insured property can sell at a considerable
    premium
  • Property in federally designated flood zones can
    insure through the National Flood Insurance
    Program (NFIP)

76
NFIP
  • Covers storm surge, wave wash, tidal waves, or
    the overflow of any body of water
  • Excludes wind and hail damage
  • Covers only structure
  • 250,000 structure
  • 100,000 contents
  • Condos up to 250,000 per unit

77
FEMA Flood Maps
  • FEMA maintains maps of U.S. floodplains
  • Not always accurate or up-to-date
  • Designation of a specific property or area can
    change
  • Borrowers must show a LOMA or LOMR to the lender

78
Riparian Rights
  • Rights of access and use enjoyed by a owner whose
    property abuts a natural body of water
  • Uniformity of riparian rights among the states
    cannot be assumed
  • Some do not recognize riparian rights

79
Boat Mooring
  • Private boat dock commands a premium over
    properties lacking the facility
  • Obtaining a mooring permit usually starts with an
    application to the marinas harbormaster

80
Skill Builder Tip
  • Ahoy there!Find out the marina locations, harbor
    master contact, procedures, waiting time, and
    general costs for boat moorings. Knowing about
    regulations and procedures for boat mooring and
    anchorage is an important part of helping a
    client or customer understand how they will be
    able to enjoy their property.

81
Anchorage Rights
  • Anchorage rights can become a controversial issue
    when boaters anchor for fishing and recreation
    next to the yards and frontages of expensive real
    estate

82
Houseboat Communities
  • Live-aboard houseboat communities use berthing
    sites intensely
  • Floating homes are an established part of the
    housing scene

83
Houseboat CommunitiesUpscale and Downscale
  • Guerilla houseboat communities result in
    neighbor conflict
  • May be part of the workforce housing solution

84
Homeland Security
  • All financial institutions must implement a
    customer identification program (CIP)
  • No specific rules affecting real estate brokers
  • All business transactions, including real estate,
    are expressly prohibited with anyone (person or
    entity) on the SDN List

85
Skill Builder Tip
  • Check the SDN list periodicallyPeriodic checking
    of the SDN list is particularly important for
    real estate professionals involved in sale and/or
    leasing of commercial space and multi-housing
    units.
  • Go towww.treas.gov/offices/enforcement/ofac/sdn

86
Community Planning Approaches
  • Active participation in community planning
  • Influence the direction of development
  • Core skill and distinguishing characteristic of
    the specialty

87
New Urbanism Principles
  • Walkability
  • Connectivity
  • Mixed-Use and Diversity
  • Quality Architecture and Urban Design
  • Traditional Neighborhood Structure
  • Increased Density
  • Smart Transportation
  • Sustainability
  • Quality of Life

88
Charette Community Planning
  • A design process that enrolls community
    stakeholders in intensive brainstorming and
    planning sessions to develop a shared vision for
    future growth
About PowerShow.com