Tag: Realtor

Developer Financing




When it comes to financing an apartment building, banks, investors or partnerships constitute options developers may consider. So too can be the government.

The government…

Section 207 HUD loans through the 223(f) program are well-suited to finance the purchase of or the refinance of multifamily rental properties. Multifamily apartment buildings which are deemed to be in good condition. Properties that require substantial rehabilitation are not eligible for mortgage insurance (“MI”) in this program. Critical repairs must be made prior to the issuance of an endorsement.

Purpose…

The 223(f) program utilizes 35-year Government National Mortgage Association mortgages. GinnieMae mortgages…so competitive interest rates are available.


Eligible properties…

Properties must contain at least five residential units with kitchens and bathrooms which are in good condition. Furthermore, the property must have been rehabilitated at least three years prior to applying for MI. Non-critical repairs may be completed up to twelve months after closing.

Projects requiring substantial rehabilitation are not eligible for this program. An example of “substantial rehabilitation” would be the replacement of more than one major system.

The economic life for a project must be long enough for a ten-year mortgage to make sense. Amortization cannot exceed, 1) 35 years, or 2) 75% of the estimated life of improvements. The lesser of.

Here are some of the details…

87% LTV for projects with 90% (or greater) rental assistance.

85% LTV for projects that meet the definition of “affordable housing.”

83.3% LTV for market rate projects.

Participant eligibility includes for-profit and non-profit applicants.

Section 223(f) provides for Multifamily Accelerated Processing (MAP). Meaning, the sponsor works with a MAP-approved lender to obtain a firm commitment.

Files are underwritten to determine whether the project constitutes an acceptable risk. Considerations for approval include market need, as well as capabilities of the borrower.

Underwriters determine whether there will be enough project income to repay the loan, taking into account project expenses. Should the project satisfy program requirements, a commitment for MI is issued.

Applications submitted by non-MAP lenders are processed by a HUD field office through Traditional Application Processing (TAP).

With TAP, there are two processing stages: 1) the conditional commitment stage, and 2) the firm commitment stage.

The sponsor participates in a pre-application conference to determine the appraisal value of the property as well as the loan amount.

At the firm commitment stage, the loan amount is determined.

For proposals which meet program requirements, a MI commitment will be issued.

ROI – outdoor kitchens and fire pits


Think of those captivating outdoor kitchen designs you fell head-over-heels in love with while you were scrolling through the pages of Unique Homes. Or while being online through Dwell. Or Dezeen. Or Home and Design.

When thinking through ideas which enhance outdoor living space, your wallet – I.e.: economics – is a factor. Economics will affect your decision. The proverbial… “Yes, we should…” Or, “No, we shouldn’t …”

Rather than allowing your wallet to prevent you from converting your backyard into THE destination point for friends, for family and for admiringly-curious neighbors, transitioning your backyard into the local must-see, data suggests,  can be a wise financial move on your part.

To this effect, let’s look at how two trend-setting hardscaping ideas in 2025 not only enable your interior living space to seamlessly flow into your now-great outdoors. Let’s also look at how smart hardscaping decisions also equate to…GOOD ECONOMICS.

For example…

Throwing burgers on the grill while you take in the crispness of fresh evening air? This is an experience best brought to life for you with an outdoor kitchen. Yes, start preparing your steaks outside. Confidently knowing that the fabulous outdoor living features you now own are the fruition of money well spent. 

Your inset grill. Those stainless steel drawers. The built-in ice chest and sink. Touched off by the granite or the concrete – your choice – counter space.

According to Remodeling Magazine and CNN Money, adding an outdoor kitchen can yield between a 100% and 200% ROI. Dependent upon, of course, how extensive your design is.

In the 2023 Remodeling Impact Report – published by the National Association of Realtors – by adding that outdoor kitchen you’ve been thinking about, what can you expect as your return on investment? A 100% ROI.

Or…think about an evening with the adults out back. Enjoying cocktails-and-conversation on a cool, brisk autumn evening. With a fire safely and brightly simmering in your fire pit.


Come to think of it, it is truly a wonder how any backyard at all doesn’t have a fire pit.

According to the National Association of Realtors, as well as the National Association of Landscape Professionals, the ROI you can expect by adding a fire pit? A 56% ROI.

Enhancing memories in your backyard? Check.

Loving your home even a little bit more? Check.

A good ROI? Check.

All that’s left is…to start dreaming about your very own customized design.

Shadow Inventory


Uninhabited real estate. Vacant homes. Vacant lots. Distressed homes. Each, categorized as shadow inventory.

Properties in foreclosure. Bank REO’s. Properties which will soon be listed for sale…but have not yet been listed for sale. Shadow inventory. City-owned properties? These properties should be included in the same category – shadow inventory. But they’re not. 

Shadow inventory is all too often overlooked as a property category through which the provision of increased access to affordable homes can be expanded in neighborhoods where limited opportunities to find affordable housing now exists.

Distressed properties make up a significant portion of shadow inventory. Distressed properties sell at lower prices than do properties which are in good condition. Accordingly, sales of shadow inventory homes can contribute to lower area home values. Yet these lower shadow inventory sale prices create affordable housing opportunities. Through the lower sale prices. As such, the acquisition of a shadow inventory home could enable a buyer to gain access to affordable housing..

Properties in foreclosure. Bank REO’s. Shadow inventory. Once again, how about city-owned properties? 

City-owned properties would not necessarily be classified as “shadow inventory.” Classifications aside, one upside found in purchasing a foreclosed home – or a bank REO – can also be found in purchasing a city-owned property. This upside being, an opportunity to get into a home of your own. Affordably.

Benefits found in shadow inventory homes are not bestowed only upon those who are looking to find affordable housing opportunities. 

Acquiring shadow inventory – and city-owned properties – creates a nice opportunity for real estate developers. As developers are able to acquire shadow inventory and city-owned properties at less-than-market sale prices.

Then, as developers reposition shadow inventory and city-owned properties to “performing properties,” developers are able to put the now-performing properties on the market. Selling the properties they purchased at less-than-market prices at market prices. In a limited inventory market. A profitable exercise.

Affordable housing advocates…this is one good path to consider.

Real estate developers…this is one good path to consider. 

It’s rather ironic, yet factually accurate, that for-profit real estate developers are able to benefit by following along the same pathway that affordable housing advocates travel. Yet this is a unique situation we do have, within the space of identifying benefits attributed to purchasing shadow inventory and city-owned properties.

Is what we are talking about here a liberal real estate path? Or is this a conservative real estate path? Is this a real estate path for FOX viewers? Or is this a real estate path for MSNBC viewers. The answer is, All of the above. 

Building your home is one option. A construction loan is how you can do it.


You’ve thought about building your own home. You can. A construction loan can make it happen.

There are different types of construction loans. So let’s look at two of these loan types: a) the one-time close construction loan, and b) the two-time close construction loan.

With the OTC, you qualify one time for two loans.

The 1st qualification is for your construction loan. The 2nd qualification is for your permanent loan.

And then there is the two-time close (“TTC”) construction loan.

The TTC is a riskier loan than the one-time close. Due to the fact that with the two-time close, you will need to qualify based upon your credit and your income a second time- after your home is built.

With the TTC, any reduction in your income or a drop in your FICO Score – while your home is being built – could make it more difficult to qualify for your permanent loan.

Another potential risk to consider with the two-time close is, What if the construction phase doesn’t go well? What if construction is not completed? What if it’s delayed?

In either situation – a) a drop in your credit score or a reduction in your income, or b) challenges with construction, with the TTC, qualifying for your permanent loan could be put at risk.

Key points…

The one-time close construction loan: one loan approval

The two-time close construction loan: two loan approvals

Great for buyers…great for sellers: the 2-1 buydown

When mortgage rates are high – like they are today – you can use a 2-1 interest rate buydown to obtain a lower mortgage rate. And a lower mortgage payment.


The 2-1 interest rate buydown is a home loan feature whereby funds are set aside in an escrow account at the closing. These funds are set aside for the benefit of the buyer. The escrowed funds enable the buyer to “buy down” their interest rate for the first two years. In year one, the buyer’s interest rate will be 2% lower than the 30-year rate. In year two, the buyer’s interest rate will be 1% lower than the 30-year rate.


The 2-1 interest rate buydown is simple. It’s a 2% interest rate reduction in year one. It’s a 1% interest rate reduction in year two.


In years 3 through 30, the buyer’s interest rate remains the same. The buyer’s mortgage payment will remain the same as well. The buyer’s interest rate in years 3 through 30 – as well as the buyer’s mortgage payment in years 3 through 30 – is established when the buyer locks their rate.


The 2-1 interest rate buydown provides a buyer with an opportunity to qualify for a larger loan amount. This increases the number of homes the buyer can go out and look at.


By using the 2-1 interest rate buydown, a buyer can purchase a larger home. A buyer can purchase a more expensive home. A buyer can purchase a home with more “bells and whistles.” All are nice options. Possible, through the use of the 2-1 interest rate buydown.

What does a 2-1 interest rate buydown cost?

The cost of the 2-1 interest rate buydown is equal to the difference between principal and interest payments – based on the 30-year rate, which goes into effect in year 3 – and the principal and interest payments on the bought-down, lower rate in year 1 and year 2. Escrowed buydown funds are paid at the closing. Paid by the seller. Held in escrow. For the benefit of the buyer.

You are thinking about selling your home. How can the 2-1 interest rate buydown help you, as the seller? Let’s look at a few situations…

When the housing market is softening. When higher numbers of sellers are listing their homes for sale. When the housing market shifts from a seller’s market to a buyer’s market. When you see price reductions. When homes are sitting on the market – unsold – for longer periods of time. In each situation, the 2-1 interest rate buydown is an attractive tool that can be used by a seller to attract more buyers.


Over the past few years, mortgage rates have remained stubbornly high. When mortgage rates are high – like they are today – buyers who may be thinking about purchasing a home are also thinking about those higher mortgage rates. Higher mortgage rates = higher mortgage payments.

The 2-1 interest rate buydown lets a buyer get into the home they want today, with an interest rate during the first two years that will be closer to the lower mortgage rates buyers were used to seeing a few years ago. Lower mortgage rates buyers are eagerly waiting for. Mortgage rates…that are just not getting much lower.


Families hoping to purchase a home are taking notice of higher mortgage rates. Higher mortgage rates place pressure upon family budgets. This affects whether a buyer will decide to submit an offer to purchase a home. Which in turn, affects prices sellers get for homes they are selling. All being good reasons to consider using the 2-1 interest rate buydown. The 2-1 interest rate buydown benefits buyers. The 2-1 interest rate buydown benefits sellers.


Through the 2-1 interest rate buydown, as the seller, you offer your buyers the benefit of the lower mortgage rate. And the lower mortgage payment too. In year one. And in year two.

As the seller, by offering your buyers a lower mortgage rate for the first two years, you will attract more buyers to your home. Because your home is being sold with the 2-1 interest rate buydown. Because your home is being sold with a lower mortgage rate. Because your home is being sold with a lower mortgage payment. For two years. As the seller, this positions your home – which is being presented to buyers, with the 2-1 interest rate buydown – as an attractive option. Especially when compared to other homes on the market that buyers may be looking at. Because those homes don’t provide buyers with a lower mortgage rate in year 1 and year 2. Because those homes don’t provide buyers with a lower mortgage payment in year 1 and year 2. And yours does!

The 2-1 interest rate buydown. It’s great for sellers. The 2-1 interest rate buydown. It’s great for buyers.

Should a portion of the blame for our housing shortage be placed upon sales managers?

In an environment which is accompanied by elevated interest rates, hopeful home buyers are challenged by housing affordability (or a lack thereof). But the real problem is not found in interest rates. The real problem is found in inflation. Housing inflation, to be more specific.

Housing inflation, linked to the fact that, we just don’t build (or rehab) enough homes. Every year. Year after year. Same problem. So, in real estate, is it wise to simply recruit more salespeople to follow the same business model? To attain the same outcome?

What is the real sales challenge to solve? Add more homes to the market. Every year. Year after year. Meet demand.

A noted portion of homes which could be/should be added to the market each year will come through, 1) rehabbing more homes, and 2) building more new homes.

An industrywide over-reliance which is placed upon selling move-in ready homes, coupled to a lack of prioritization – and/or specialization – in creating additional housing stock is arguably a “sales management C-minus,” or a “sales management D.”

Don’t blame Jerome Powell. Our housing challenge is, in many ways, about sales management deficiencies. A lack of leadership in sales. Which, in my opinion, functions as one primary contributor to our ongoing national housing challenge. Inefficient sales management in real estate makes Jerome Powell’s tough job even tougher.

Creating more inventory is the solution. Ignoring processes which will lead to the creation of more inventory further contributes to housing inflation. To fewer sales. To less commission. And, quite possibly, to the underutilization of capable real estate professionals.

Real Estate and AI

One does not really sell a home. So then can one really, effectively push for a deal to close? Yes. And, no.

People really kinda’ buy homes. So pulling a buyer in, to a great experience offered to that buyer – an experience which “stars the home” so to speak – could be an effective approach to consider. Then engaging your buyer in an interactive way. Rather than selling a home to a buyer. Ideas and approaches. Aligned with the effective use of AI. In real estate.

By observing data, and in this form, “data” could be consumer behavior, then by thinking through responses to observed data, a real estate professional could craft their own foundational buyer-inquiry follow-up system. In this manner, AI could facilitate added value for the real estate professional. In their market. For buyers. And as such, for sellers too.

With an emphasis placed upon the buyer’s experience. Adding to a value-add the real estate professional delivers. By facilitating an interactive experience for the buyer. Less of a need to push deals. More so, the focus having been transitioned to, pulling buyers in through a great virtual experience. Delivered by the Realtor.

Data…Feedback…Response.

Inadequate Supply: Assessing Annual New Home Build Levels

One factor which has greatly contributed to – a factor which, on an annual basis, continues to contribute to – challenges Americans face today in regard to choosing from a limited housing inventory…a housing inventory which, by any metric used, would be considered inadequate, would be the 2007-2008 Financial Crisis.

America is simply not building enough new homes to satisfy demand. This leads to inadequate supply levels. This contributes to affordability challenges. This contributes to escalating home prices. This contributes to the naggingly-stubborn inflation that the Federal Reserve is combating with higher interest rates.

When the Financial Crisis took hold in 2007-2008, home builders stopped building homes. Home builders closed their doors. Home builders shut down. Home builders went out of business. As home builders exited the marketplace, the tradespeople that home builders relied upon to get their new homes built – and positioned, for sale, in the market – simply found other careers. Tradespeople found new ways to make a living. Tradespeople exited the housing industry. They left the construction business. This left a void in the market, which has contributed to an inability on the part of home builders to build enough homes each year, to satisfy demand.

Post-Crisis, as the real estate market began to stabilize, and as home purchase numbers began to climb once again – albeit very, very slowly – the new home construction industry was simply ill-equipped, not rightly-sized, and understaffed. Thus, the new home construction industry was unable to keep up with the increasing (albeit, a slowly increasing) demand for new homes. That inability of home builders to keep up with increasing demand levels for new homes continued. Each year. Year by year. Every year. Last year. This year. All leading to the housing inventory shortage we have today. And to inflation. And to an inadequately-functioning housing market. And to the imbalance we have in the housing market today between supply and demand. And to the challenges Americans face everyday, in regard to housing affordability (or lack thereof).

Let’s look at some data, to see how we arrived at this inadequately low number of new homes which are available to buyers in the marketplace.

We simply have an inadequately low number of new homes being built and added to the market each year. The number of new houses built and added to the market each year is continually contributing to the challenges we see in housing affordability (or lack thereof). This low supply level of new homes in the marketplace is continually contributing to inflation.

In the year 2000, the number of new housing permits for privately owned homes totaled just about 1.6 million for the full year. This, as the number of new housing starts for privately owned homes also approached 1.6 million for the full year in 2000. While in 2000, the United States population was a tad over 282 million.

Fast forward from the year 2000, to 4 years later…

Taking place in back-to-back years – in 2004 and once again in 2005 – housing permits obtained for privately owned homes topped 2 million each year – in 2004, and again in 2005. The year 2004 had been the first year that permits obtained for privately owned homes exceeded 2 million in a year. That 2 million level of housing permits issued for privately owned homes had been reached in back-to-back years in 2004 and 2005. The trajectory of new home builds in the United States had been on an upward swing, in the mid-2000’s.

Housing starts for privately owned homes surpassed the 2-million threshold in 2005. Housing starts for privately-owned homes fell just short of 2 million during the prior year, in 2004. At that point in time, the market had been absorbing just about 2 million new homes a year.

Permits for privately owned homes – as well as actual housing starts for privately owned homes – in 2004 and in 2005 as well – had reached a level which was just about 400,000 higher each year – higher in both 2004 and 2005 – than the level of permits and housing starts reached in 2000. While at the same time, the population of the United States was approaching 297 million by 2005.

Between the years 2000 and 2005, there had been an increase in population in the United States which totaled just about 14 million. That would be, fourteen million people added to the population of the United States over those five years (2000 to 2005). While at the same time, the number of housing permits for privately owned homes – and the number of housing starts for privately owned homes – had been just about 400,000 higher each of these two years – 2004 and in 2005 – as compared to the number of housing permits and housing starts for privately owned homes in 2000.

Let’s look at the effect the Financial Crisis had on the number of new homes that were being built in the United States…

Between the years 2008 and 2013, in each of these six years, the number of new housing permits for privately owned homes – in 2008, 2009, 2010, 2011, 2012, and once again in 2013 – failed to reach 1 million in any given year. Too few new homes were being built…

In 2009, new home starts for privately owned homes fell to just about 550,000 for the full year. This level of 550,000 new housing starts for privately owned homes in 2009 encompassed nearly 1.5 million fewer new home starts for privately owned homes than the marketplace had absorbed four years earlier, in 2005. While there had been just about 1.5 million fewer new homes built in 2009 than had been built in 2005, the population of the United States increased by 12 million over that same four-year period, between 2005 and 2009.

The United States has an increasing population, which is coupled to a highly inadequate number of new homes which are built each year, and added to the marketplace.

There is so much discussion today about the topic of inflation. No matter which news channel you prefer, we see that inflation is a problem that we all face. If we de-politicize the topic of inflation, and just focus on the topic of housing in relation to inflation, we see a significant imbalance that exists between supply and demand for new homes being added to the market. We also see how this imbalance in housing contributes to inflation. The imbalance we have – an imbalance which compounds annually – is compounded by the inadequate supply levels. This leads to escalating home prices, further complicating the task the Fed has in combating inflation.

The Fed is correct in ratcheting up interest rates to squelch overall demand in the economy. The Fed’s approach of higher interest rates is correct in combating inflation. The inflation challenge we have, and the demand level in the marketplace which contributes to inflation – each of which is being addressed by the Fed – are unfortunate ancillary consequences of an imbalanced housing market. A market imbalance which traces its origin to the limited supply of new housing which is being added to the market each year. A problem, which is coupled to higher demand levels for homes, each and every year.

The housing supply and demand challenges we face today lead to a situation where, each year, starting in 2006, we have continued to see too few homes being built and added to the market. To simplify our housing and inflation challenge, too few homes are being built each year. This leads to our housing problems. A housing problem which is present, which is current, and which is ongoing. Ongong, a full sixteen years after the number of new homes built each year drastically fell, on an annual basis, as a result of the Financial Crisis.

One point to consider when assessing the condition of today’s housing market would be the aggregated, annual, compounding, ongoing, every-year challenge one would find in any supply-and-demand equation, when supply – every year – is inadequate, in relation to demand. The topic of housing just happens to be the largest, most relevant, most highly-visible example of supply-and-demand that we have – that we can see – each and every day. So let’s look further at our inadequate housing supply levels…

New housing starts fell from a level whereby 2 million privately owned homes were built in 2005, to the much lower level of 1.3 million privately owned homes built two years later, in 2007. Seven hundred thousand fewer new homes were built in 2007 than had been built two years earlier, in 2005. While at the same time, the population of the United States increased by 6 million people during that same two year period – 2005 to 2007. This is an inadequate supply of new housing created, which was not satisfying demand.

One year later – in 2008 – new housing starts for privately owned homes fell further…dropping by another 400,000 for the year, to just over 900,000 new housing starts. In 2008, there were 1.1 million fewer new privately owned homes built than had been built three years earlier, in 2005. While at the same time, the population of the United States increased by 3 million people. A supply of new housing created, which is inadequate, in relation to home buyer demand.

As has been previously cited, new housing starts for privately owned homes fell to the very low level of 550,000 in 2009. New housing starts remained at a sub-600 million level, each year, through 2010.

In 2011, new housing starts for privately owned homes finally crept back up to over 600,000 for the year. Six hundred thousand new homes built in 2011…the 600,000 new homes built, still being an inadequate number of new privately owned homes added to the marketplace for the year, in relation to buyer demand levels.

Three years later –  in 2014 – the market would finally once again absorb one million new home builds for the year. One million privately owned homes were built in 2014…a new home build total which still had been one million fewer than 2005 levels.

In 2021, the market absorbed 1.7 million new permits for privately owned homes, while the market also took on 1.6 million new privately owned homes which had been built. The 1.7 million new permits, and the 1.6 million new housing starts…each total representing annual figures which were three-hundred thousand fewer (permits) and four-hundred thousand fewer (housing starts) than the market absorbed 16 years earlier.

According to U.S. census data, the total number of new homes built between 2012 and 2019 would be a new home build total representative of 3.9 million homes less than the total number of new households created in the United States during that same seven year time frame. The country is just about 4 million new homes short over the past seven years…and that is 3.9 million homes short, only taking into account housing demand coming through the creation of new households. This 3.9 million new home construction shortfall does not even take into account home buyers who have older homes, who would like to trade up, to a new construction home.

Multiple Listing Services

In the year 1908, the National Real Estate Exchanges was first established. During the first decade of the 20th Century, one of the early goals for the National Real Estate Exchanges was to facilitate an effective cooperation system which could be used by different real estate brokerages to sell real estate. In summary, these were the earliest days of what we today refer to as cooperation among REALTORS.

The National Real Estate Exchanges set out to find good ways to communicate the benefits of – and the saleable features for – individual properties which were available to be purchased through members of the National Real Estate Exchanges. This would have been real estate which was only able to be made available to the buying public through the earliest centralized efforts of cooperation undertaken by National Real Estate Exchanges members.

The National Real Estate Exchanges established innovative methods for member-brokers to effectively communicate – i.e.: sell – the features of the real estate they were marketing, to other member-brokers. These were other real estate brokers, that is, who were working at different real estate offices. The idea being, these could be real estate brokers who may very well have had the right buyers for the properties their colleagues were promoting.

The National Real Estate Exchanges, in the early days of the 20th Century, was committed to facilitating processes that could be used by member-brokers to sell real estate. While simultaneously developing processes through which those real estate sales could take place. Helping National Real Estate Exchanges member-brokers to sell their properties. Helping National Real Estate Exchanges member-brokers to locate properties for their buyers. To simplify: cooperation among members to sell real estate.

In the very, very beginning of the business of property-information-sharing, taking place a couple of times each month, what was then the dissemination of MLS property information would have looked like the physical delivery of property information – delivery by real estate brokers – to the actual doorsteps of other real estate brokers, at their brick-and-mortar real estate offices. The earliest stages of REALTOR cooperation, and the very earliest forms of the sharing of information about properties in the real estate industry. It looked very much like property information drop-offs: 1) head over to the local real estate office, 2) drop off information about properties which were available for sale.

Preceding this physical dropping off of property information at the front doors of real estate offices, in the late-19th Century, real estate brokers liked to meet in the offices of their local real estate trade associations. To discuss the properties the brokers were selling. The meetings which took place at offices of these local real estate trade associations were scheduled with an intent for the brokers to share information about their properties. And to sell their real estate. Real estate brokers who participated in these early-on MLS member meetings agreed to compensate one another…a collaborative effort undertaken to assist one another in the sale of member-brokers’ properties. Functioning something like this: Help me to sell my property, and I’ll help you to sell yours…

At these early-20th Century association meetings, brokers would have conversations with other member-brokers about the properties they had available. Discussing specific criteria applicable to the properties the brokers were hoping to sell. Sell, that is, by presenting their properties to their trade association colleagues; colleagues who would meet – regularly – at their local real estate trade association office. To find properties for their buyers. To sell their properties through their colleagues. Broker cooperation.

Today, there are just about sixty-thousand licensed REALTORS in New Jersey. Florida has over two-hundred twenty-thousand licensed REALTORS. This makes Florida – by far – the most highly-concentrated state, in terms of licensed REALTORS. There are in the range of two-hundred two-thousand licensed REALTORS in California. In Texas, there are over one-hundred fifty-thousand licensed REALTORS.

Using Texas as our example, those 150,000-plus Texas REALTORS access Texas MLS property information through a consortium of Texas multiple listing services. Each of which are managed and controlled by the Texas Real Estate Commission.

One of the oldest MLS’s in the state of Texas is the Austin Board of REALTORS Multiple Listing Service. The origin of the Austin Board of REALTORS goes all the way back to the year 1918…its establishment in Austin taking place a mere ten years after the earliest formation of what would go on to become the National Association of REALTORS. Today, the Austin Board of REALTORS Multiple Listing Service serves over 18,000 real estate professionals practicing their craft in eighteen Texas counties.

In the United States today, MLS’s are organized locally. And they are managed locally too. The importance of local MLS management – and local MLS control – can be found to be quite evident when one thinks about real estate listings in the state of Texas.

In Texas, MLS property descriptions may include pertinent information about – among other features such as kitchens, bedrooms, and property taxes – oil leases, mineral rights, as well as additional considerations which could be applicable to oil and gas interests. These would be Texas property details – about oil and gas, that is – which may be included (with relevance) in many Texas MLS property listings. As these property details about oil and gas in Texas would not be so relevant, for example, in Florida MLS property listings or in New Jersey MLS property listings. Because the energy industry would be more of a factor for real estate valuation in Houston, Texas, than it would be for property valuation in Holmdel, New Jersey. Or in Miami. Or in Los Angeles. Accordingly, the argument for localized MLS control and management.

The largest MLS in the state of Texas is the Houston Association of REALTORS Multiple Listing Service. Houston’s MLS was established in 1918. Serving over 164,000 real estate agents and brokers, the Houston Association of REALTORS Multiple Listing Service is the 10th largest MLS in the country.

The California Regional Multiple Listing Service is the largest multiple listing service in the United States. The California Regional Multiple Listing Service serves over 100,000 REALTORS, as well as 40-plus local associations, boards, and MLS’s.

Two other notably large – large, as measured against other MLS’s in the United States – are also domiciled in California: 1) the LA/Westside MLS, and 2) the California Regional MLS. The LA/Westside MLS serves over 16,000 agents and brokers in California.

The largest MLS in the state of New Jersey – and the 39th largest MLS in the country – is the Monmouth-Ocean Regional REALTORS Multiple Listing Service. Established in 1936, Monmouth-Ocean Regional REALTORS has over 11,000 members, serving home buyers and home sellers in two New Jersey counties: 1) Monmouth County, and 2) Ocean County.

The second largest MLS in New Jersey is the Garden State MLS. The Garden State MLS – established in 2010 – is the 89th largest MLS in the United States. Based in Parsippany, New Jersey, serving ten New Jersey counties, the Garden State MLS typically has nearly 19,000 real estate listings to choose from.

Founded in 1908, the National Association of Real Estate Exchanges became the National Association of Real Estate Boards eight years later, in 1916. By 1972, the National Association of Real Estate Boards officially became the National Association of REALTORS, the NAR.

Of note, the National Association of REALTORS is entirely distinct from, and independent of, the National Association of Real Estate Brokers – NAREB.

Founded in 1947 in Tampa, Florida, members of the NAREB would be REALTIST members, not REALTORS.

The NAREB is the oldest minority business association in the United States. The NAREB functions as an equal opportunity and civil rights advocacy organization…focusing their efforts on advancing the interests of African-American real estate professionals, consumers, and neighborhoods.

Headquartered in Maryland, the establishment of the NAREB goes all the way back to early-day efforts which were then undertaken by Black real estate professionals who had a goal to form their own real estate trade group. Incentivized to do so due to Black real estate professionals’ then-exclusion from NAR membership, due to race.

The first NAREB convention was held in New Jersey. In Atlantic City. In 1948.

Today, the National Association of REALTORS governs – and establishes policies for – most of the multiple listing services in the United States. NAR members belong to local real estate boards and associations which are strewn throughout the United States; of which there are about 1,600.

NAR members are REALTORS. With over 1.5 million members, the NAR is the largest trade association in the United States.