By Tracy Wisneski
As Safer-at-Home orders are lifted and we embark on a new normal, what are some changes we may anticipate and how can we prepare for them?
First Time Home Buyer Advantages
First time home buyers who’ve remained employed may possibly be the biggest winners post-quarantine. Many were struggling with a glut of multiple offers on coveted entry-level homes before the pandemic. It is a very
frustrating process to find and fall in love with a home only to be beat out by another offer; often repeatedly. An anticipated decrease in buyer competition could greatly ameliorate that issue for them.
First time home buyers who’ve remained employed may possibly be the biggest winners post-quarantine. Many were struggling with a glut of multiple offers on coveted entry-level homes before the pandemic. It is a very
frustrating process to find and fall in love with a home only to be beat out by another offer; often repeatedly. An anticipated decrease in buyer competition could greatly ameliorate that issue for them.
Unlike their homeowner counterparts, first time buyers do not have the burden of selling a home before buying their next home. Many require only 30-45 days’ notice to their landlords in order to move. This not only makes for a much more reliable process, but also for stronger offers without a home-to-sell contingency.
How can you prepare?
The toughest part will be helping to assuage their fears. Home buying can be scary for anyone, but it is most intimidating for first time home buyers even under the best circumstances. The current uncertainties we all
face will likely exacerbate those fears for first time home buyers. Work on strong educational content to help them learn more about the process, the market and their options in order to help them feel empowered. Marketing
pieces like this will allow them to feel more confident in the process and in you as a source of information and guidance.
We all know the right loan product can make all the difference in terms of affordability, so learn about the various products available to them and partner with lenders who can help them with a loan best suited for
their circumstances. There are a variety of loan products and down payment programs, some have just been approved in response to the crisis that can help them make their dream of home ownership a reality. Be the
source of information, walk them through the steps and you’ll earn a client for life!
Home Sweet Home
Since mid-March, most of us have spent more time than ever before in our homes. Many people are working from home for the first time and parents with school aged children are homeschooling, as well. Homes are being used very differently than they were before and it’s leading to people considering what kind of home and floor plan works best for this.
Open floor plans have been very popular for quite some time, but a fully open space does not lend itself well to multiple people working on different tasks. How can one child be on a Zoom call with class while mom is making business calls, sister is reading and dad is on a conference call? Suddenly, some extra walls make a lot more sense. Homes with spaces that allow for multiple purposes and a little extra privacy will be very helpful. Extra rooms that can be used as office space will also be in high demand.
Outdoor spaces like yards, lanais or even balconies will be very desirable. While we’re coming out of quarantine, many people are still spending most of their time home and enjoy having nice outdoor spaces to enjoy. Pools, outdoor kitchens and other home amenities will be in higher demand.
How can you prepare?
Keep an eye out for these kinds of floor plans, outdoor spaces and home amenities. Point them out to your prospective buyers along with how they may better fit their lifestyles and desires.
When marketing your sellers’ homes, be sure to get great pictures and videos of these coveted spaces and amenities, and be certain to carefully complete the MLS listing so that boxes are checked for these important items. Highlight them and explain them in your comments and marketing materials. These will be very strong selling points in our new normal.
While it wouldn’t make sense for sellers to spend on extravagant home improvements, they can make minor adjustments that will help buyers envision how a home will check important boxes for their lifestyles. Staging
can go a long way, so recommend that they stage a room or even a space as an office. Some furniture, plants and other minor decor can be used to make outdoor spaces more inviting. Landscaping, both front and back, will
make the home more appealing to buyers looking for creature comforts in their next home.
Develop relationships with local contractors so you’ll have a cost reference for changes buyers may want to make to the home if it is missing any of these desirable characteristics.
Household Changes on the Rise
Everything from the anticipated baby boom to boomerang children and additional family members moving in together will make homes with more space and additional rooms a better option for many families. In-law suites, guest houses and other means of multi-generational living will be in high demand.
How can you prepare?
Know which models and communities offer these features so you will be best prepared for buyers looking for these kinds of homes. Keep a close eye on your local inventory and compile lists of homes that fit these criteria. Builders may be a good source of some of these homes and they’ve begun to offer more incentives to buyers in terms of closings costs, design credits and interest rate buy-down. Builders that have homes in inventory may also be a source for making the selling/buying transition a little more comfortable for owners who must sell first.
If your sellers have homes like these, be certain to make them as easy to find as possible! Use keywords, check the corresponding boxes in the MLS, include these details in the early part of your descriptions so anyone skimming will see them right away. Upload floor plans if they’re available or consider using 3-D imaging.
Keep Up with Local Market Statistics
While you should have been doing this all along, it will be even more important in the weeks and months ahead for you to be knowledgeable about market statistics. Both sellers and buyers will want to know how the market is changing. Are prices going up or down? What about days to contract? How does inventory affect the local market?
Especially during times of uncertainty, being a source of detailed information will help you build trust and confidence. We have access to several great sources of market statistics. Make use of them by sharing them in posts, emails and blogs. Become familiar enough with them to speak about them conversationally.
How can you prepare?
Greater Tampa REALTOR® members have access to a host of sources for market statistics. Florida Market Reports available online through the Florida REALTOR® website provide detailed residential reports for the state, counties, metropolitan areas and individual zip codes. These reports include a host of very helpful market indicators, as well as the year-over-year change for each. Click here to view Florida Market Reports.
Florida REALTORS® also offers access to interactive data, charts and graphs using Sunstats. You can add your branding to these reports making very effective marketing pieces that will set you apart as a well-informed professional. Click here to access Sunstats.
For more local market details, Greater Tampa REALTORS® offers monthly video market updates by economist, Dr. Elliot Eisenberg, on GTR’s YouTube channel that are great for educating yourself on the local market, and also provide great content for sharing with your contacts. Click here to view Hillsborough County Market Updates from Dr. Elliot Eisenberg.
Stellar MLS is another source of local market information that you can generate using the statistics tab within Matrix. There are several preset statistics, as well as an option for generating your own. In addition to broader
statistical data by counties, you also have the option of drilling down to zip codes, subdivisions or even map areas, and you can utilize various search criteria depending on your needs.
Listen More, Persuade Less
During this current crisis, each person’s experience is very distinct. There will be those who had no interruption in work, others who had an increase in work and still others who are barely surviving.
There are homeowners who just purchased their dream home at the very top of their budget because their businesses were thriving who are now faced with some very difficult decisions. Maybe there’s enough equity to sell or perhaps there’s not enough for a regular sale.They should not be persuaded to sell. They need you to honestly educate them on their options, point them to resources, refer them to their accountant or a lawyer if needed. Once they have all the information, if they choose to sell, that’s great! If they choose an option that better suits them and you “lose” the sale, you would have served them with integrity, which is vitally important. Remember that as REALTORS®, we are obligated to “protect and promote the interests of [our] clients.”
How can you prepare?
Learn all you can about the various resources and sources of information you can share. Compile a list of carefully vetted professionals like attorneys and accountants to whom you can refer your clients or prospects when
needed. Short sales may come back into play for people who are unable to manage their mortgage post-shutdown. Familiarize yourself with the process as it is now. You may want to consider earning the Short Sales & Foreclosure Resource® (SFR®) designation. Depending on each unique situation, a short sale may or may not be their best option. Refer your sellers to their accountants for tax advice and have contact information of attorneys who can best counsel them on their options.
Even as businesses begin to open and real estate picks up steam again, we still have a long way to go before any of us will truly know what lies ahead. Keeping informed is crucial as this is still a changing situation.
Unlike 2008, our industry is not the cause of this crisis. In fact, it is expected to help the economy recover. Be flexible and resourceful and you’ll do well. Each challenge we face increased our expertise and makes us better suited to serve our public.
