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.
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.
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.
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.
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.