By Rachel Arterberry
Today, the role of real estate professionals has evolved far beyond simply helping clients buy or sell homes.
More than ever, clients see their agents as trusted financial advisors who can guide them toward long-term financial health. Real estate is not merely shelter—it’s often the largest single investment a person makes and a powerful tool for building multi-generational wealth.
Eric Ravenscroft, CRS, sales agent at The Real Broker in Phoenix, Arizona, and Pat Zaby, CRS, broker-owner at Pat Zaby, Inc., share insights on how agents can coach clients to view homeownership as a cornerstone of their long-term financial strategy. From leveraging equity wisely to treating property ownership as a multi-generational financial asset, these approaches equip agents to add significant value for their clients and build enduring relationships.
A Home: More Than Just Shelter
As Zaby puts it, “A home becomes a stabilizing factor for a person, not just emotionally but financially.” It locks in housing costs, shields owners from future rent hikes and offers two significant financial advantages: the reduction of principal with each mortgage payment and the potential for property appreciation. Together, these elements steadily grow a homeowner’s equity, forming the foundation of personal wealth.
For first-time buyers, this is often a revelation. Many focus only on the emotional benefits—a private space, freedom to renovate and a yard for children or pets. Yet agents have an opportunity, and arguably a responsibility, to explain how purchasing even a modest property can launch clients on a path to substantial financial growth over time.
Leveraging Equity Wisely
In many markets, homeowners are sitting on record levels of equity, thanks to years of price appreciation and, for some, low fixed-rate mortgages secured during historically low-interest-rate periods. However, tapping into that equity requires homeowners to think strategically.
Homeowners often consider accessing their equity for various goals, including funding children’s education, launching a business, covering unexpected expenses or investing further in real estate. Agents should help clients weigh options such as:
- Refinancing the entire mortgage to pull out cash
- Obtaining a home equity line of credit (HELOC)
- Taking a second mortgage
- Selling the property outright to realize gains
Zaby shares critical advice on this: “Don’t finance short-term expenses with long-term assets unless you have disciplined changes in your spending habits.” For example, using equity to pay off credit card debt may be wise, but only if the client commits to avoiding the same spending pitfalls that led to high-interest debt in the first place.
Real Estate as Part of a Wealth-Building Strategy
Ravenscroft takes a unique approach shaped by his background as a financial planner. He urges agents to help clients view their homes not merely as places to live, but as integral parts of their financial portfolios.
“Every year—or twice a year—I reach out to clients to review how their real estate holdings fit into their overall financial picture,” Ravenscroft explains. This involves:
- Tracking current market value and equity in primary residences and investment properties
- Modeling hypothetical scenarios—e.g., converting a home into a rental and estimating income potential for long-term, midterm or short-term strategies
- Projecting 5-, 10- and 20-year horizons to help clients envision how property decisions today shape future financial flexibility
He emphasizes that any agent can adopt these practices without special financial certifications. Simple tools like spreadsheets, client portals or apps like Trello can help agents share projections, keep clients engaged and highlight opportunities. Financial firms, as used in the CRS courses provided by RRC-approved supplier InTouch Systems, can also aid in this process.
This consultative approach is crucial, as many clients don’t realize they should consider real estate as part of a larger wealth-building strategy until an agent explains it to them. Whether they’re young buyers purchasing a first home or retirees looking to downsize, clients benefit from seeing how real estate contributes to financial security and future options.
Homeownership as a Multi-Generational Strategy
Real estate can be a powerful tool for transferring multi-generational wealth. Families that invest wisely in property can leave behind assets that not only appreciate but also generate income for future generations.
Agents can help modern clients adopt similar strategies:
- Encourage buyers to start small and “stair-step” into larger or additional
- properties as financial capacity grows
- Identify opportunities for rental income to support future investments or retirement
- Educate clients on using equity to fund investments in other properties, creating a virtuous cycle of wealth building
While some clients may view buying a second home as a lifestyle choice rather than an investment, agents should consider whether that capital might work harder elsewhere, particularly if the second home won’t generate rental income.
Staying Resilient Through Market Changes
The real estate market, like any asset class, is cyclical. While long-term trends favor appreciation, short-term dips can and do happen. However, a key advantage of real estate over many other investments is its ability to withstand downturns.
“If you have a long-term mortgage and a property that cash-flows or meets your living needs, you don’t have to sell just because the market is down,” Zaby explains. Unlike stocks, which can be subject to margin calls in downturns, a property owner can ride out low points until values recover.
Agents who proactively educate clients about these cycles—and help them avoid overextending themselves—can build stronger trust and longer-lasting relationships.
The Agent as Trusted Financial Guide
Ultimately, real estate agents have an extraordinary opportunity to be more than salespeople. By equipping clients with financial knowledge, modeling long-term scenarios and advising on how property fits into a wealth-building plan, agents become trusted partners in their clients’ financial journeys.
“Most people don’t want to pay taxes if they can legally avoid it,” Ravenscroft says. “Real estate offers tax advantages and wealth-building opportunities that many people don’t even know exist.” For example, bonus depreciation is a valuable tax tool that helps investors reduce their taxable income more quickly, especially when combined with cost segregation. It applies to rental properties but comes with specific rules to qualify. Agents can add value by helping clients use this strategy—and should consider it for their own investments too. Ravenscroft is available to help agents learn more.
A 1031 exchange allows investors to defer capital gains taxes when selling one investment property and purchasing another. It applies only to properties held for business or investment purposes, not primary residences. To qualify, sellers must identify a new property within 45 days and close the deal within 180 days.
Empowering clients to see homeownership as a stepping stone toward financial security—and even multi-generational wealth—is perhaps the most valuable service real estate professionals can provide. In doing so, agents ensure they’re not just closing deals, but opening doors to lifelong prosperity.
