This week’s email brought the news that Redfin says home prices are now at all all-time high, and still rising. Prices are up 14% over this time last year.
Is this true in YOUR community?
Are home prices going to continue to rise?
The premise of the article is that the rising cost of rents, plus the fear of even higher inflation, is causing people to hurry up and buy. One third of the homes listed go under contract within a week, and on average, sell for 0.5% over list.
If all of this is true, what does it mean for the future of real estate? Will we see the kind of buying frenzy that led to the mortgage crisis several years ago? Will prices rise beyond what people can pay, then fall dramatically?
If only we could have a real crystal ball.
In spite of rising home prices, inventory is still low. In fact, according to their report, the number of active listings fell 22% from 2020 and 41% from 2019.
How will rising home prices affect your marketing efforts?
Will rising prices encourage more homeowners to sell? Or will this news cause them to hold off? Homeowners with no urgent need to sell are probably considering two questions right now:
- If I wait, can I sell for even more next year?
- If I sell, will I be able to buy a replacement?
Target your prospecting to find new listings
Considering that homeowners are asking themselves those questions, I’m thinking your best targets for new listings will be people who really need to sell.
Another news article a few days ago said that defaults are still twice what they were before Covid. So watching the newspaper for default notices might be wise.
Who in addition to homeowners in default really needs to sell?
- People who are being transferred – either by the military or by a corporation
- Estate executors
- Widows or widowers who are unable to keep the house with only one income
- Divorcing couples
- Elderly who can no longer live alone
- People with vacant homes
How can you reach the homeowners whose choices aren’t affected by rising home prices?
Some are fairly straightforward. You can watch the newspaper for probate and divorce filings. Then begin mailing prospecting letters to them.
You can also prospect to attorneys to develop a source of leads. In addition to my divorce prospecting letters, I have a separate set of letters for divorce attorneys. Right now my only probate attorney letters are part of the original set of probate letters.
For people relocating through corporations, the best bet is to become acquainted with some people in Human Resources. I do have a FREE HR letter on my freebies page, but it is geared toward people coming in. Perhaps its time for me to address people moving out.
Since I don’t know anyone who is currently in the military, I don’t know what office you could contact to reach people being transferred. If you know – please share so I can pass that information along. In the meantime, advertising both on your website and in publications would be a good idea. So would networking. Agents who know the ins and outs of military transfers, VA financing, etc. can be valuable assets to military homeowners and to the buyers transferring in.
Finding people who own vacant homes requires a bit of legwork and research…
But it might need to good new listings. And yes, I do have letters you can send to them.
When you prospect to senior citizens, tread carefully…
Never assume that someone’s age will dictate their desire or need to sell a home. Instead, approach them from the standpoint of “Do you want to make a change?” You should have information available about retirement communities and even nursing care – in case they ask. But you’d be wise not to mention it unless they do.
How will you find those seniors? You can either do some homework and learn which communities are most heavily populated by seniors, buy a list from a list broker, or use a service such as Cole Realty Resource to research ownership statistics in a neighborhood you wish to farm.
One last thing…
If you haven’t yet responded to my recent survey, please do. Your answers will help direct me in writing these weekly posts. They’ll also tell me if you need prospecting letters I don’t offer or other services.
There are only 6 questions and e-junkie says it will take you less than 3 minutes to answer them.
So – please help. Just click here.