The Three Best Focuses For Expanding Your Business
What is the best way for you as an agent to expand your business this summer? You can take advantage of the uptick in real estate activity by building your knowledge in three critical areas. They are as follows:
- Key Local Real Estate Market Trends—
-Demand (closed transactions)
-Supply (number of active listings)
-Consumption (month’s supply of inventory)
-Value (price per square foot)
2. Buyer Arguments– The top reasons a buyer should buy right now
3. Seller Arguments– The top reasons that a seller should sell now instead of later
Best Seller Argument #2– The Shadow Inventory Close
Many sellers have decided to take their homes off the market or wait to list their homes for sale until the market improves. After preparing a seller pro-forma, it’s important for prospective sellers to be aware of the shadow inventory situation. There are a significant number of properties that the banks presently own that are being released gradually because releasing them all at once could have a severe impact on prices. Additionally, many experts believe that there could be as many as eight million more foreclosures during the next few years. This shadow inventory could have an even greater impact on lowering prices. If the seller waits, the loss could be even greater.
Best Reason To Buy Now #2– The second chance interest rate close
Many buyers continue to sit on the fence because they are concerned about the possibility that prices could drop even further. In most markets, prices have already begun to level off. In some cases, prices have begun to increase slightly. It’s also important to let buyers who are financing their purchase know that the additional cost in monthly payments from an increase in mortgage interest rate could end up costing the buyer a lot more over time then what they might save if prices drop. Earlier this year, interest rates began to climb and increased 1%. This increase added significant cost for buyers if they kept their home for five to ten years. Fortunately, interest rates have recently dropped from just over 5% to as low as 4.2%. Buyers have been given a second chance and may never see interest rates this low again. Be sure to make your buyers aware of how fortunate they are to be able to take advantage of some of the lowest interest rates in history.