This is going to be an exciting year for real estate.
But do your clients know that?
Most likely, they’re seeing news headlines that are sending another message. The upcoming presidential election, a possible recession, and political tensions are all factors leading to confusion and hesitancy.
It’s time to step up, be the teacher and let them know that waiting is a mistake.
Here are some of the top questions your clients are asking themselves, and how you can tackle them head-on with the most recent insights.
Will the Presidential Election Impact Real Estate?
Election years can be a tricky time for the market. During this time, both sides of the spectrum will be preaching conflicting statements about the economy – leading to confusion among potential buyers and sellers.
That’s why many people tend to sit back and wait until the election is over before making any major real estate decisions. This isn’t a new phenomenon, but with the market’s current strength and mortgage rates at historic lows, putting off buying or selling could mean less of a reward as more time goes on.
To help move your clients off the fence, present them with the facts. Back up any worries about a real estate market or economic downturn with expert testimonials and projections. This is a topic KCM will cover increasingly throughout the year. Make sure you’re subscribed to KCM to stay up-to-date on the top real estate news and insights to keep your clients in-the-know.
Is a Recession Around the Corner?
When a media storm of recession talk hit the news in 2019, many people became affiliated it with another housing market collapse. The fears aren’t surprising, but they’re also not accurate.
Economists are now reporting that if a recession occurs, it may not be until 2021 or even 2022. On top of that, the real estate market is not a likely driving factor for an economic downturn, and the four recessions before 2008 saw little no effect on the housing market.
Do your clients know this? Probably not.
But you can’t get ahead of the rumors if you don’t try and change the narrative. This isn’t a time to shy away from the topic. Confront your client’s fears head-on and show them the facts.
What If I Buy a Home and Prices Depreciate?
It’s the greatest fear a new homeowner has. Many prospective buyers may be holding off on their search because of uncertainty tied to the upcoming presidential election and recession rumors.
Thankfully, you can appease these worries by showing them that data and predictions say otherwise. The market is strong and big hitters like Freddie Mac, Fannie Mae and NAR predict home values to continue to appreciate through 2021.
Buying now is a sounds investment, and buyers should take advantage of the current low mortgage rates because waiting to purchase a home could mean paying more.
Should I Take Advantage of Interest Rates Now or Wait?
Essentially this comes down to one thing: why take the chance?
Interest rates are currently at historic lows, and your clients are probably unaware of their increased buying power. Although the mortgage rates are projected to hold steady around 3.8%, certain factors could change this.
Show them facts and graphs that illustrate this picture clearly. If they hold off on their home search and mortgage rates do rise, they will end up paying more for the same house.
The most important job a real estate agent has is to educate and reassure clients they are making powerful and confident decisions.
The only way to do this is by being an expert, keeping current on market news and effectively communicating what is really happening in real estate.
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave Ramsey
The best way to do this is to supply them with facts and what the experts are saying about home value projections. Give them information, especially in visual format, so they can digest it easily.
Most importantly, make sure you’re constantly on top of what’s taking place now and what’s projected to take place later so you can stay ahead of the curve.
A quick and easy way to stay on top is by signing up for KCM so you can get the most important insights in real estate delivered to your inbox daily. This isn’t the year to be out of the loop on what’s happening in the market. A KCM membership gives you access to webinars, eGuides, blogs, slides and more so you can be the informed agent your client’s need right now.