Programs important to real estate will be affected in the event of a partial federal government shutdown that could start at midnight tonight if lawmakers fail to pass short-term budget legislation.
The National Association of REALTORS® is in regular communication with congressional leaders and the White House and is working with other organizations to ensure lawmakers are aware of the importance of keeping programs critical to communities operating without interruption.
There are three areas of concern for your business: the availability of federal flood insurance under the National Flood Insurance Program; delays in processing of Federal Housing Administration–backed mortgages; and slower response times by IRS offices for tax information needed for real estate transactions.
Flood insurance
The authority of the NFIP to sell flood insurance policies will expire at midnight if new legislation is not enacted. Should the program lapse, the NFIP will not be able to sell or renew policies. Existing policies will remain in effect until their expiration date.
FHA programs
Under a shutdown, the FHA will furlough nonessential employees. Delays are possible in loan processing and approval. Mortgages backed by secondary mortgage market companies Fannie Mae and Freddie Mac would not be affected, nor would mortgages backed by the U.S. Department of Veterans Affairs.
Tax information
To the extent taxpayer information from the IRS is needed, transactions could face delays as IRS offices, subject to furloughs of nonessential employees, take longer to reply to requests.
In response, more homeowners are getting creative to catch these package thieves—and they're using smart-home tech to do it. Video doorbells can capture video and audio as thieves try to sneak off with packages left on a homeowners’ doorsteps. For example, Google’s Nest Hello video doorbell, Ring, and other smart doorbells are catching more porch pirates in action.
“Having a visual deterrent like a video doorbell can show there’s security at a house and may make a porch pirate think twice,” says Erick Low, product manager who oversees Google’s Nest Cam Outdoor and Nest Hello. Nest Cam and Nest Hello allow homeowners to keep an eye on their front door through a video camera embedded within the doorbell or video cameras strategically located outside. The devices can alert homeowners on their smartphone when the doorbell has been pressed or any motion has been detected on a front stoop. Homeowners can speak to visitors remotely through the smartphone app or listen in secret as they watch someone at their front door. Video doorbell systems from Nest and Ring, for example, also offer continuous monitoring features that record footage 24/7 for playback at any time. The Nest doorbell also has an added facial recognition feature and can alert you to a familiar or an unfamiliar face at your doorstep.
Fifty-seven percent of consumers who have been victimized by porch pirate thieves or vandals say they’ve responded by upping their security measures at home, like adding motion detectors on lights, security systems, automatic timer on lights, video doorbells, and lockboxes for any packages that are left at their doorstep, according to the InsuranceQuotes.com survey.
Smart-home tech is increasingly being adopted by consumers, and security has been one area cited for a big driver of its growth. A survey by August Home, a company that makes smart door locks, found that 63 percent of consumers cite home security as the biggest motivation to buying a smart-home device. Numerous smart-home devices are aimed at beefing up a home’s security, from cameras that can detect break-ins to safety devices that can detect smoke, fire, carbon monoxide, and moisture levels. Read more: Help Clients Get Wise to Smart-Tech HypeSource: By Melissa Dittmann Tracey, REALTOR® Magazine’s Daily Real Estate News
