The Biggest Questions Your Clients Are Asking Today (And How to Answer Them)
In any typical year, clients are going to ask standard questions, and you’re going to be able to give them standard answers.
As we know, this is no typical year for the U.S. real estate market.
With so many things happening with the economy, politics and pandemic, your clients will be armed with a lot of complicated questions. It’s your job as the market expert to answer them to the best of your ability, and to have the insights to support your reasoning.
By answering the biggest questions in today’s housing market, you’ll help your clients navigate a complicated market, prove your value and set yourself up for a successful 2021.
Is now a good time to sell?
OK. So this one you probably get asked a lot. But with everything happening right now, you can’t rely on your typical answer to do the trick.
Inventory is still at record lows, with buyer demand at record highs. Anyone who wants to sell their home will be in a good position to do it quickly and for a good price.
Low mortgage rates means this is the perfect time to move up or downsize your current living situation for an affordable price.
In such a competitive market, the seller has the upper hand. This can be advantageous when it comes to negotiating terms, repairs, moving dates and more.
What if I sell my home but I’m not able to find a new one to buy?
This question has come up a lot this year, and for good reason.
Many potential sellers are concerned that if they do decide to sell their home, they won’t be able to find one to buy in time for closing.
This is a good time to highlight your negotiating tactics, availability and commitment to helping them find a house that meets their needs in a timely fashion.
It’s also important to note that while pre-owned inventory may not be plentiful, the new construction homes hitting the housing market are a good option to explore.
Plus, closing dates are negotiable. Especially in a competitive market. And there are loan options out there that let you buy a home before you sell yours, something that could bring peace of mind to a weary seller.
Home prices are high right now. Should I wait to buy?
Affordability is one of the hottest real estate topics of 2021, and there’s a lot of misinformation floating around about what exactly that means for homeowners.
To best explain this, it’s good to turn to visuals. This graph is a great way to show that although home prices are rising, so is affordability. Put this in your listing presentation, share it on social media, or save it on your phone for when this topic comes up (and it will come up).
If a lot of foreclosures hit the market, will that bring down home values?
-a buyer doesn’t want to purchase a home at the height of the market to then have values drop
-some homeowners may put their selling plans on hold to wait out the market
However, banks are unlikely to let what happened from 2008-2012 happen again, especially when the real estate market is playing a big part in our economic recovery.
In order to help calm any concerns about this, you can touch on these three points:
Nearly 30% of borrowers in forbearance are still current on their mortgage payments.
Banks likely don’t want to repeat the mistakes of the Great Recession. This time, many will instead negotiate a modification plan with the borrower, which will enable households to maintain ownership of the home.
With the amount of equity homeowners have today, many will be able to sell instead of going into foreclosure.
While every market is different, it’s important to remember that most homeowners base their decision-making on what they gather from the media.
When explaining complicated topics with your clients, it’s always best to rely on visuals, market experts and data to back up your answers.
Or, fill your social media feeds and marketing content with information that tackles these questions before they’re asked.
Remember, an informed buyer or seller is a confident buyer or seller. It’s your job to make sure they’re equipped with the best information so you prove your value and gain their trust.
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