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Friday, December 5, 2025

Lisa Gray

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Lisa is an accomplished marketer with years of expertise in direct response marketing, digital marketing, data analytics and business development working with both B2C and B2B.

Real or Fake News?

It’s all over the news – the government is harming homeowners and real estate by wanting to do away with the mortgage interest deduction (MID). From major real estate portals to the National Association of Realtors’ website, hand wringing rules the day.

Is it fake news, the truth or are the reports somewhere in between?

A little history

Before 1986, all interest on all loans (even credit card bills), regardless of purpose, was tax deductible. The Tax Reform Act of 1986 (TRA86) did away with all of those deductions, with the exception of mortgage interest.

Interestingly, the TRA86 was touted very much the same way today’s tax reform efforts are – as a way to simplify the tax code and do away with tax loopholes.

To itemize or not to itemize

To take advantage of the MID, a taxpayer must itemize deductions. For itemizing to make sense, his or her deductions must exceed the standard deduction. These deductions include the MID as well as charitable contributions, medical expenses, property taxes, state and local income taxes and others.

Now, if you itemize deductions you know that it isn’t as cut and dried as it seems. The charitable contribution deduction, for instance, carries a cap. And, filers can deduct only the amount of medical expenses that exceed 10 percent of their adjusted gross income (7.5 percent if the filer or spouse is 65 or older).

This restriction allows only 19 percent of taxpayers who itemize to claim the medical expense deduction, according to Matthew Frankel at motleyfool.com.

It is very difficult for the average middle class American to come up with enough in itemized deductions to beat the standard deduction. In fact, only about 30 percent of taxpayers itemize deductions.

The reality

Here are the stats:

  • About two-thirds of American households own their home.
  • Only one-fourth of homeowners claim the MID.
  • The average tax savings for households with income between $40,000 and $75,000 is just $152 a year. That’s $12.66 a month,” according to Anthony Randazzo, director of economic research at the Reason Foundation.
  • Households with earnings of more than $100,000 derive nearly 90 percent of the MID’s benefits.
  • “In 2015, the federal government spent $71 billion on the MID,” according to Derek Thompson with The Atlantic. He also calls the MID a “moral indictment of the tax code,” and the $71 billion dollars it costs this country “a public-housing policy for the rich.”
But … it incentivizes home ownership, right?

“Economists don’t agree on much, but they do agree on this: the interest deduction doesn’t do a thing for homeownership rates,” suggests Roger Lowenstein at the New York Times.

Remember Jonathan Gruber, the Obamacare architect? He co-authored a National Bureau of Economic Research study earlier this year that found “The mortgage deduction has a precisely estimated zero effect on homeownership.”

“One reason for this is the way the MID is structured. As mentioned earlier, a taxpayer must itemize deductions to take advantage of the MID. It is primarily the wealthy who have enough deductions that make sense to itemize.”

“The value of the deduction increases with the individual’s income tax rate so that higher income taxpayers receive more benefit than lower- and middle-income taxpayers,” according to Tim Manni at HSH.com.

Manni goes on to say that the MID encourages Americans who can afford to, to buy larger, more expensive homes, “rather than to encourage significant homeownership at low- and middle-income levels.”

Even without economists’ word for it, knowing the statistics on who actually uses the MID, common sense tells us that homeownership rates and home prices aren’t going to plummet if homeowners can’t deduct mortgage interest on their taxes.

What the MID actually does

“The MID benefits far fewer Americans than politicians and the media are letting on and, in fact, it drives up tax rates for the rest of us,” insists the National Review’s Robert VerBruggen.

Others argue that the MID subsidizes wealthy households and the money saved by doing away with it will help fund tax reform that benefits the middle class.

Whichever side you fall on over this issue, it’s important to understand the facts. Only then can you intelligently answer your clients’ questions.

Need our assistance? We would love to help you! Call our support team a 866.405.3638. 

Average More Transactions Every Year

The difference between always chasing commissions, or having a reliable referral base to count on, depends on your investment in a sphere of influence.

Want to build a business that is strong, sustainable and competitive, and that you can sell when you’re ready to retire?

Start by creating your SOI.

It’s easier than you think – and will help you get on track to average more transactions every year.

Think about this, if you had 250 people in a database you consistently stay in touch with and develop a relationship with, who will they call when they have a real estate question, need or referral?

YOU.

If just 10% of your database sold or referred to you every year, what would that mean for your income?

Building a database doesn’t have to be hard.

It just needs to be a consistent part of your weekly business habits.

Not having a sphere of influence is hands-down, the single biggest obstacle to agent success.

It will keep you in the endless cycle of always chasing new business, without the benefit of ever gaining any traction.

And think about this, statistically, 1 in every 12 people in your SOI will either do business with you or refer business to you each year.

Not bad odds. Is this worth your time now?

Related: Four Strategies For a Stronger Sphere of Influence

Time to Create Your List.

Begin with the following names (including email, address, phone):

Family, spouse’s family, extended family, neighbors, past customers

best friends, close friends, children’s friends parents, church congregation

Children’s teachers, coaches, principal

Family dentist, doctors, optometrists, business coleagues

Employees/owners of retail establishments and restaurants you frequent

PTA board at your children’s school, Sunday school teacher

Manicurist, facialist, hair dresser, dry cleaner

Auto maintenance/repair shop, tire shop, mailman

Once you have compiled your list – Take Action

Start a touch marketing campaign every 21-35 days. 

Send our done-for-you newsletters every month. They’re designed to be eye-catching, informational, and are filled with direct response offers that get results.

Or consider a series of postcards such as holiday, recipe postcards, customer appreciation cards, or listing inventory cards that will keep you top of mind until you have the opportunity to see or speak to them.

Even if your list is small, don’t wait to start your marketing.

Momentum doesn’t just happen. But over time you can build something powerful.

The 20 year value of a client is roughly $49,647.

With that number in mind – how many people do you plan to put in your book of business?

Need our assistance? We would love to help you! Call our support team a 866.405.3638. 

Appraisal Secrets Revealed

“Overpriced,” thought Ryan Lundquist, a certified residential appraiser in Sacramento, California. He’d just received an appraisal order and, thankfully, his last impression didn’t match his first. In the end the home received top dollar.

But, he was puzzled. Finding that the property was worth slightly more than the selling price, he wondered why the listing agent offered no information about the property until he asked for it. Didn’t he want to ensure top dollar was received for this home?

Unfortunately, many agents have been intimidated by, and sadly misinformed about the 2010 Dodd‐Frank Wall Street Reform and Consumer Protection Act, assuming that they can’t communicate with an appraiser under any circumstance.

Let’s bust that myth

It’s not against the law to contact and converse with the appraiser, unless the goal is to bribe or intimidate him or her.

In fact, Dodd-Frank specifically states that you or “anyone with an interest in a real estate transaction” can ask an appraiser to:

  1. Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.
  2. Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.
  3. Correct errors in the appraisal report.”

The law does not, however, provide for a “full-blown conversation or discussion with the appraiser,” cautions Vic Knight, certified general appraiser and former president of the North Carolina Association of REALTORS®.

“The implication is that the flow of information is essentially one-way,” he continues, “from the broker to the appraiser.”

How your MLS description can help the appraiser

Knight offered an often overlooked point brokers can utilize to help the appraisal process. Writing a listing description is considered part of the marketing of a home for sale. What most agents don’t think about when penning the description is the appraiser, who will also be part of the audience reading it.

Knight recommends that you keep in mind the following tips as you enter the listing into the MLS:

  • Don’t skimp on the photos and include photos of the home’s unique features.
  • Be overly descriptive – this helps with marketing as well.

Point out the “quality of finish in ‘below-grade’ living areas, attics, bonus rooms, decks, porches, etc.”

Related: Featuring Your Listing in the Best Light

Create an appraiser’s package

Knight suggests that agents compile a package of documents and either leave it at the property for the appraiser to view, or deliver it in person, by meeting the appraiser at the home. Include the following documents in the package:

  • A fully-executed copy of the purchase contract and addenda
  • Comps
  • Deed
  • Floor Plan
  • HOA Docs
  • Inspection reports
  • List of upgrades, including the dates they were performed, with photos
  • Neighborhood information, especially anything that makes homes here more valuable than homes in nearby areas
  • Plat and survey
  • Proof of multiple offers

The latter is important information for the appraiser, according to appraiser Tom Horn of Birmingham Appraisal Blog. “Providing proof of multiple offers does show them that more than one person is willing to pay a certain price for the home,” he suggests.

It’s also important that you are very specific in your description of the home’s upgrades. Rather than stating that the bathroom was “completely remodeled,” list what was replaced, what it was replaced with, the date the work was performed and the cost.

For example, Lundquist suggests, on his Sacramento Appraisal Blog, “Bathroom remodel: new tub; travertine tile work; cherrywood cabinetry; Kohler sink, faucet, etc. …/Installed 2009/$15,000 cost.”

Or, offer the appraiser a cheat sheet

Lundquist offers some tips on how to interact with the appraiser within Dodd-Frank guidelines.

These useful tips help agents avoid the appearance that they are pressuring the appraiser, a violation of federal law. Any statement that can be perceived as an attempt to steer the appraiser to the value you want for the home can get you into hot water.

Examples of these are frightening because they are so commonly (and innocently) used. Banish them from your interactions with appraisers:

  • “I’ll be happy as long as it appraises for at least the sales price.”
  • “The market has been ‘on fire’. You shouldn’t have any trouble with the appraisal.”
  • “Is it going to come in at ‘value’?
  • “If this doesn’t ‘appraise’, the seller is going to go into foreclosure.”
  • “I would be shocked if it didn’t ‘appraise.”
  • “I really hope this works out. No pressure or anything though.”

To avoid trouble, keep your opinions, feelings and thoughts to yourself. Communicate only the facts about the home and neighborhood.

A listing agent’s job entails far more than marketing the home and negotiating with the buyer’s agent. Underlying all of the duties, however, is the duty of “care.” This includes ensuring your client gets the most money possible for the home.

This article is not intended to serve as legal advice and should not be used as a substitute for consultation with an attorney.

Related: Pricing Makes Perfect 

Need assistance? Contact our customer support team at 866.405.3638. They’re incredibly knowledgeable, and excited to help get you succeed!

The Success Mind-Set

Success begins with the right mindset. Real estate sales is not just a job; it is a business. A business that requires planning, organization and systems to maintain balance, accountability and forward momentum. The following details the 3 steps to epic success.

Step 1: Have a Plan

Planning is critical to realizing your goals, generating consistent income and creating an exit plan. The proper exist plan ensures you have a valuable “book of business” that you can sell when you are ready to retire. Your plan should:

  • be written out and clearly defined
  • have a realistic and comprehensive budget
  • be based not only on your goals, but also on your family’s goals (very important to maintaining the support system necessary during long days or tough weeks!)
  • outline the number of transactions you need to reach those goals based on commission dollars, list-to-close ratio and fall-through rate
  • outline the number of contacts, appointments scheduled/.attended you need to realize your transaction goal
  • break your numbers down into daily, weekly and monthly activities so that you ALWAYS know where you are in relation to your goal

Be sure to share your plan with a manager, coach or partner so that you can set up a system of accountability.

Step 2: Employ Smart Marketing

In today’s competitive arena, effectively marketing yourself and your business requires both consistency and laser focus.

Countless agents send single marketing pieces to thousand of consumers, with no intention of following up. This approach is a waste of time, energy and valuable marketing dollars.

The truth is, you should be in contact with your sphere of influence at least every 30-45 days. One month, send a postcard, letter, newsletter or flyer. Many of our customers find the Listing Inventory Series, Content Cards, and Market Dominator among their favorites.

The following month, call with a friendly event reminder, helpful hint, or just to say hello.

During the third month, arrange to see them via a networking event, social gathering or in-person visit. Drop off a small token, informational item or card. Then start the “rotation” over again.

Such consistency creates vital ‘top-of-mind’ awareness. This awareness becomes “the key to the kingdom” when growing your referral base and creating a reliable income.

Gone are the days when agents could afford to take a “shotgun” approach-casting a wide net in the hopes of “catching a few”.

Response rates increase dramatically when you speak directly to the needs and interests of a particular group.

Wise agents seek out demographics or geographics that they relate to or have a history of success with.

The more comfortable you become speaking to a particular group or segment, the more you become recognized or thought of as a specialist in that field.

Related: Niche Marketing and the Law of Attraction

mailing list
Targeted marketing examples:

  • First-time homeowners – Try MapMyMail to quickly create a list of local renters. Send a postcard that explains the advantages of home ownership.
  • Builders – Offer to help builders eliminate their #1 worry: standing inventory. Create a list of every builder in your area and send a flyer explaining how you can find their perfect customer.

lifestyle

  • Find a new niche – With our Lifestyle Interest data, you can reach consumers who are just the demographic you want to work with. Think Golfers, Boaters, Fitness Lovers and more.
  • FSBOs – There are many effective search products for this demographic. Fear leads many agents to steer clear of FSBOs, which eliminates at least a portion of your competition.

real estate fsbo marketing postcards

  • A New Geographic Farm – Find an area in your market that is beginning to see turnover, but doesn’t currently have another agent with more than a 10% market share.  Start connecting month after month using the Neighborhood Update/Free Offer series. This series will present yourself effectively as the turn-to agent in your market.
Step 3: Put Solid Systems in Place

Without systems, you’re like a hamster on the wheel-spinning without really getting anywhere. Systems are the only way to maintain the delegation, automation and streamlining that will continuously work on your business. Systems allow you to:

  • manage your time effectively
  • create a consistent standard of service
  • assure clients that their needs are being met by a “team”
  • provide checks and balances for fine tuning your business
  • promote efficiency and accuracy
  •  reduce training time when bringing on new team members

What systems should you have in place?

The success mind-set requires dedication and a commitment to the activities that earn you top dollar and allow you to “feed” the career you’re building.

Related: 3 Tools That Drive More Business

Need our help?  Contact our support team today at 866.405.3638. They’re more than happy to help you.

How do you plan your week to optimize productivity?

Try following these simple steps:

Step 1. Review Monthly Goals – review or create a list of your goals for the month.

Step 2. Plan of Attack – determine what needs to be completed under each goal and the time it will take.

Step 3. Schedule Tasks – plot out your month based on the time each goal will take and add the tasks associated with that goal to your calendar for that month.

Step 4. Plan Your week – The night before your week begins, review what tasks need to be completed during your coming week and determine, based on time needed, when you will complete these tasks.

Step 5. Week-end Review – At the end of your week, review the tasks that needed to be completed. If something on your list didn’t made the cut, add it to your coming week, with a new plan of attack for completion.

Have a productive rest of your week!

Remember at ProspectsPLUS! we are always here to help you in anyway we can! Please reach out if you need our assistance at 866-405-3638.

 

 

 

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