How can the real estate industry pivot in order to thrive?
Drawing on over 20 years of working with real estate investors, we have a unique on-the-ground view of this industry. We’ve seen firsthand how property decisions are often made in isolation – without considering someone’s full financial situation, retirement plans or legacy goals.
While well-meaning, realtors sometimes get caught up in deal-making rather than what is best long-term for clients. Incentives connected to commissions can influence recommendations more than optimal outcomes for investors.
But winds of change are stirring. As regulations increase scrutiny on transaction-based models, there are opportunities to enhance value beyond just maximizing sales.
Real estate advisors can thrive by embracing a big-picture planning mindset that puts client interests front and center. This includes:
1. Incorporating Financial Planning Views
A property’s potential should be assessed in light of factors like clients’ net worth, diversification, cash flow, and retirement objectives. Collaboration with financial planners allows real estate professionals to make personalized recommendations suited to each client’s big-picture strategy and priorities.
2. Clarifying Tax Implications
While real estate professionals cannot provide tax advice, it is their duty to connect clients with tax experts before major transactions. This ensures clients can evaluate decisions in light of deductions, credits, carryovers, and other variables that impact bottom-line costs or savings.
3. Taking a Proactive Approach
Rather than simply reacting to clients’ requests, real estate professionals have an opportunity to bring more value by proactively introducing options aligned with long-term client interests. Partnerships with financial planners, tax professionals and attorneys allows real estate professionals to explore strategies to help clients build wealth, mitigate taxes, and define their legacies.
The future requires a real estate advisor model centered around education, collaboration and advisory solutions. By embracing a more holistic process, real estate professionals can thrive in tomorrow’s market while helping their clients prosper. The time is now to evolve their value proposition.
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For over 20 years SIFF Investment Services has provided unbiased, fee-based real estate consulting to disrupt outdated real estate models. We are not realtors or agents. Our role is to educate and empower clients by objectively outlining all options. Our fee-only structure allows us to put client interests first. By taking an unbiased, consultative approach, SIFF aims to help clients prosper through wise real estate investments.
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