Friday, October 16, 2020 / by Jordana Tobel
According to NAR (the National Association of REALTORS®), inventory in July 2020 was 21 percent lower than 2019’s already low levels. Additionally, homeowners are now moving once every 13 years , instead of 8 years (the average in 2010). This makes things even worse.
Buyers are coming from all parts of the country, to live a life outside year-round. 37% of Americans said the pandemic has caused them to consider moving, and 77% of respondents said that, for 2021, they prefer to live in a suburb over a city. People care less about “proximity to work” and more about “living space.” The survey showed that people are looking for:
- More square footage
- Larger outdoor areas
- Lower population density
- Increased affordability
How can we, the real estate agent community, how can YOU (the real estate agent), help answer the market demand?
Here are two strategies you can do today:
1. Unlock Inventory through Seller Solutions.
Every agent needs more listings. We all know that listings are the bread and butter of this business. To solve the problem for homeowners who need to sell before they buy, why not suggest a "bridge loan"? With a bridge loan, homeowners can buy their next home with a cash offer and move in without having to make an offer contingent on their sale. This allows for a strong offer, to compete with other offers out there.
Additionally, if there are other issues with their home, why not present a cash offer? At Premier Listings, through our investment division, Premier Listings Offers, our agents are able to present homeowners with a cash offer to enable them to move on quickly.
2. Change YOUR Mindset and the Mindset of the Homeowner.
Here's the thing: the market changes every day. And guess what - you should too!
The mindset you had last year no longer applies. Your mindset today, when dealing with homeowners, is to help them think outside the box and open their minds to their options.
As their agent, you need to fully understand the possibilities and in turn, educate your clients. Here are the possibilities you should understand:
- Selling their home through a traditional listing with you
- Accepting a cash offer from an investment group like Premier Listings Offers, without paying commissions or dealing with any marketing of their home
- Working with an entity like Premier Listings Offers to take over their payments and bring them current if they are behind
- Working with an entity like Premier Listings Offers to repair their home before they put it on the market
While most homeowners will feel most comfortable and choose the path of the traditional listing, you need to be the one to explain these options and help them make the decision that is best for them.
Today's agent needs to provide solutions. You need to shift your mindset from being that of a salesperson to that of an advisor. When you explain solutions and educate your clients, here's what happens:
1. You will stay at the center of the transaction.
2. You will develop trust and sellers will work with you no matter what.
Here's the challenge: contact 5 homeowners today who you believe may be stuck. Walk them through various solutions and start working on helping our inventory shortage situation in South Florida.
If you need more education on the options available to homeowners, consider taking our 2-Day training December 16th and 17th which will explain all the options mentioned above and more. To find out more and for registration details, email firstname.lastname@example.org with the subject line "Seller Solutions." What are you waiting for?