5 Common Client Concerns - about Real Estate
Client Concern #1:
Bad market conditions.
Everyone knows the housing market is facing challenges, but what many people may not understand is this: Homebuilding is a cyclical business, as are the airline and automotive industries. The last housing downturn occurred in the late 1980s and early 1990s. New home sales began recovering in 1992 and continued growing until the next peak in 2005.
So what does this mean for you? Most people have heard the phrase “Buy low, sell high.” Right now, it’s a buyer’s market—and that means your clients can get more for their money. They’ll have outstanding choices when it comes to homes and locations. They can enjoy more value, more design features, low interest rates and outstanding loan programs. For more information on current loan programs, contact me at 303-942-0648 and I can connect you with a trusted mortgage specialist.
The market could change at any time—and judging by historical standards, it’s only a matter of time before the cycle shifts again. Why wait for prices and interest rates to go up when you could be living in the home of your dreams right now?
Client Concern #2:
Dropping home values.
Despite short-term market cycles and fluctuations, long-term home values have increased historically. On average, the value of a home nearly doubles every ten years, according to research from the National Association of REALTORS®.¹ And the Federal Deposit Insurance Corporation reported that between 1978 and 2003, the nationwide House Price Index grew an average of 5% per year.²
These statistics are a sound reminder to keep long-term goals in mind. While today’s market may not be optimal for investors seeking a quick turnaround profit, it could be an ideal window of opportunity for people who are seeking a place to live out their lives and build memories, dreams and futures.
It is also a perfect opportunity to invest in rental property!
Client Concern #3:
Selling current home.
Although selling a home can be difficult in today’s market, there are many things your clients can do to help their house stand out from the rest. Staging a home is a great place to start. From strategically arranging furniture to adding warm and stylish accents, staging is all about making the home feel inviting and allowing others to imagine living there. For expert ideas without spending a dime, consider touring model homes throughout your area.
Other helpful tips for home sellers? Put extra stuff into storage, clean carpets, touch up paint and spruce up their home’s exterior with plants, patio furniture and lighting. Beyond cosmetic changes, it’s important to fix anything that may be wrong below the surface. Getting a home inspection in advance can pay off by addressing any problems that could deter potential buyers or hold up the sale of a home.
Client Concern #4:
Negative news coverage.
Homebuyers today are flooded with national economic news that is not necessarily representative of their local market. Every area is different, as are many neighborhoods within a given area.
Luckily, as a Realtor, I am an expert in the local market. I can educate my clients on the area’s benefits, such as its economic standing, employment centers, schools, transportation and nearby amenities. These factors can have a substantial impact on home prices and should be factored into purchasing decisions.
Client Concern #5:
Making a bad investment.
Paying rent each month makes no financial investment in your future, no matter what the market.
On the other hand, when you buy a home, you are investing money in your own future. Perhaps the most important thing to remember, are the lifestyle benefits homeownership can provide. When you buy a home, you are investing in something far more valuable than any stock or bond can offer. You are investing in memories. A home is a place to throw dinner parties, game nights and sleepovers; a place to play a game of catch in the backyard or sit on the front porch and watch the neighborhood kids play.
That’s the kind of investment that is worthwhile in any market.
Sources:
1¹ National Association of REALTORS® (2008). Public Awareness Campaign: Home Values. Retrieved March 10, 2008, from http://www.realtor.org/pac.nsf/pages/HomeValues.
2. ² Federal Deposit Insurance Corporation (February 10, 2005). U.S. Home Prices: Does Bust Always Follow Boom? Sect. 8: What Does History Suggest about the Current Situation? Retrieved March 10, 2008, from http://www.fdic.gov/bank/analytical/fyi/2005/021005fyi.html.