In Part II of this two-part series, we’ll explore how to capitalize on Trends 4 and 5 by building you business strategy by first diving deep into data and crunching numbers.
Five Important Trends
In an interview by Bernice Ross with Richard Sharga, executive vice president of RealtyTrac, a subsidiary of ATTOM, Sharga discussed the most important five trends emerging from company data. Those five trends include:
– Millennial demand for housing to peak in next 3-5 years and Millennial homeowners tend to sell their homes after living in them between 2-5 years
– Homeowners continue moving from high-cost, high-tax areas to low-tax, low-cost areas and now, back again
– Foreclosures down by -76%
– 5%-10% of homeowners remain underwater
– Economists expect +5.7% price increase and interest rates at about 4% in 2022.
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5%-10% of Homeowners Remain Underwater
Agents who already have experience working with distressed owners and REOs, you know what it takes to work with those owners and lenders to close a short sale. Agents who don’t have that experience, research, ask questions of those who do and find out everything you can about getting a short sale closed.
- If you have to pay a service to locate these properties and/or identify the lender, buy the service as it’ll likely be worth it for you.
- If you have investor clients who may be interested in these properties, connect with them and have all the relevant information to give them.
- Ask them to sign a Buyer Broker agreement (similar to a listing agreement with similar time spans) that includes your commission.
- If the owner is in default, connect with the lender to determine whether or not the owner would consider a short sale.
- If the owner is open to a short sale, connect with the owner to explain the process. Getting a one-party listing from the owner would enable you to approach any of your prospective buyers.
Economists predict home prices to increase about +5.7% and interest rates to come in at about 4% in 2022.
AFFORDABILITY IS A BIG ISSUE IN 2022.
TRACT ABSORPTION RATES IN YOUR MARKET NICHE to see where your market is going BECAUSE INVENTORY CHANGES ARE GREAT INDICATORS OF PRICES 6-12 MONTHS DOWN THE ROAD
5 months of inventory or less = seller’s market
6 months of inventory = flat market
7 months of inventory or more = buyer’s market
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
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Thanks to RealtyTrac and, Bernice Ross, president and CEO of Brokerage, and Inman.