1. Be Ready for the Pre-appointment Appointment
In order to best take advantage of the opportunities this year will bring, make sure you are ready to speak real estate at any moment. Whether it is at the food store, the movies, or at your child’s ball game, people are again talking about real estate. Be prepared to intelligently articulate answers to the questions that come up. Ensure this by being very mobile with your information (smart phones, iPads, or tablets).
2. Understand the Advantages of Owning Over Renting
We sell real estate for a living. We must be prepared to be an evangelist for homeownership. Know that owning is less expensive than renting in 72% of the country. Be able to explain all the financial benefits of owning a home and learn the non-financial reasons people buy a home.
3. Know That Today’s Mortgage Opportunities Will Never Exist Again
Today, a buyer can purchase a home with a 5% interest rate guaranteed for 30 years. These low rates will disappear as the economy improves. If the lending reform that many are calling for happens, there is a chance that the 30 year mortgage will also disappear. For more on this point, click here.
4. Realize the Wealthy Are Back in the Market
In 2010, sales of homes under $1 million were down 2.8% from the previous year. Yet, home sales of properties priced over $1 million were up 18.6%. That means that the people who best understand the principle “cost vs. price” best think now is the time to buy real estate.
5. Don’t Forget It’s Still About “Supply and Demand”
There will be a steady supply of buyers purchasing homes this spring. Houses will sell; many houses. Don’t allow this increase in demand to fool you or your homeowners. Home prices will not appreciate on increased demand alone. Price is determined by the ratio between supply and demand. Make sure you know the month’s supply of inventory available for each category of house you have listed. Only then can you give great counsel on pricing.