Know You Are Not Alone
Research reports such as the Realtors Confidence Index Survey, released in May 2018, gather information from over 50,000 real estate agents and brokers around the country. When the report breaks down Issues Affecting Buyers and Sellers such as “problems encountered for contracts with delayed settlements”, you can be comforted by the knowledge that 15% of clients decided not to move or sell in order to stay put with their existing mortgage rate. Why is that comforting? Because it wasn’t anything that you did. You aren’t the only realtor experiencing those problems. When you see that the number one reason settlements are delayed, 1/3 of all delays, is because of “issues related to obtaining financing” you can give yourself a break over the delays that your clients might be experiencing.
Take Proactive Steps
The report indicates that the top reasons for delayed settlements include things like issues related to obtaining financing, appraisal issues, home inspection and environmental issues, title or deed issues, and home/hazard/flood insurance issues. These issues are probably no surprise to you. Yet, what are the proactive steps that you can take to help your clients avoid these delays? One response may be to get to know more financing options including the types of financing, the variety of lenders and lender requirements and having more than a few trusted mortgage representatives you can count on. Another response may be to be more active in a homeowners financing process. Don’t just turn this over to buyers, remember you are the expert. Stay involved and use your experience to push the transaction along. Keep a record of common issues that delay mortgage approval and provide a resource or checklist to homebuyers that help them avoid these mistakes.
Use data to inspire creative strategies for increasing your business. For example, the Realtors Confidence Index Survey provides characteristics of buyers and sellers. According to the report, First-time buyers accounted for 31 percent of sales. This number is down slightly from the 33% in May 2017, yet still accounts for one-third of sales. What can you do to creatively market to the first-time home buyer? Don’t overlook this huge segment of the market. The report also indicates that 17% of Sellers offer incentives including warranties, closing costs, and offers to remodel.
Be a Resource to Your Clients
Clients want you to give them a general idea of just about everything. Sellers want to know when they should vacate their property and will likely ask something to the effect of ‘what do most people do?’ The Realtors Confidence Index Survey provides data that twenty percent of sellers vacate their property before listing with ten percent vacating more than 3 months prior to listing. At the same time, according to the survey, more than half of all sellers vacate between contract signing and the transaction closing. Imagine the situation that you are trying to win a listing. The sellers ask two realtors the same question, “We want to plan our own move, when do most people move out when they sell their house?” One realtor says ‘It depends.’ The other realtor, armed with research data, says ‘According to national research, around 20% move out before listing their property but just over half of all sellers wait to move out once a contract is signed. What is your plan for moving?” Who do you think the Sellers will find more professional?
Joseph James Real Estate in Kearny, NJ likes to employ real estate professionals who stay on top of market issues and topics in order to grow their business. Are you that type of professional? Joseph James is hiring. Contact us if you are looking for a new opportunity.