Did you know women buy the same property for approximately 2% more and sell for 2% less?Isn’t that an alarming stat? I mentioned here, that more and more single women are buying real estate however they aren’t building as much wealth as men through real estate. This article outlines a gender gap in building wealth through real estate. Here are just a few facts that stood out in this article:
- Single men earn 1.5 percentage points higher unlevered returns per year on housing relative to single women.
- 45% of the gap in housing returns can be explained by gender differences in the location and timing of transactions.
Whaaattt? This information is bananas to me. Real estate is such a great way to build wealth and it is an absolute shame if women are missing out on some of the rewards (i.e. money) of real estate. So, how can we fix the problem? Find an agent that you trust and will negotiate on your behalf. As women, we wear a lot of hats and if you aren’t in the real estate industry it may be daunting and intimidating (it is one of the biggest purchases you will make!) but here is the thing, you don’t need to know everything you just need a leader. That leader would come in the form of a real estate agent. What are some characteristics of a good agent for a woman?
- Someone who will negotiate on your behalf.
- Someone who is out there in the trenches themselves (primary residence, rentals, etc.).
- Someone creative. Maybe a house needs only a can of paint?
- A good listener.
- An expert in your marketplace.
Listen, your list may look different but I urge you to may a list of what you need from your real estate agent. I truly believe a good agent can help close the gap between the wealth building abilities of the two genders. These numbers may not scare you, however, this may. “The gender gap in housing returns is economically large and can explain 30% of the gender gap in wealth accumulation at retirement.” Real estate is a great way to build wealth and even a 2% difference in buying and selling price can compound and impact wealth building greatly.
Liz is broker and owner of Liz Daigle Realty.