Leading Indicators for Real Estate Are Positive

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stock arrowI’ve heard the same story over and over recently, but I believe every sale (no matter what the size) helps. And I hope anyone who reads this will think about this and tuck it away for future reference…

Heard recently – “Real estate sales are increasing, but the sales tend to be low-priced bank-owned homes.”

My response – So what! Inventory is moving. Plus, these are real families moving into real homes and sending their children to schools and mowing the grass which hasn’t been cut in months. This is a good thing!

Want to know what the “leading indicators” are for the real estate business? These are items which are measurable, quantifiable and reportable to the public. Watch for: 1) website hits, 2) site visits,
3) showings, 4) offers and 5) pending contracts. When these start to increase, closings are sure to follow.

Being a Trusted Advisor has never been more important. 

Buyers have and will continue to have the most challenges: down payment, financing, best circumstances and timing for the family move, inspections, family stress during the process, etc.

Shouldn’t Realtors be talking to buyers, asking questions about their life situations, long-term life and financial goals and their plans for reaching those goals? Shouldn’t Realtors have services available to help achieve those goals, such as financing, insurance products, home warranties, life event warranties (yes, there is such a thing…insurance to protect against loss of income) as needed?

Speaking of long-term goals, here’s a different perspective on today’s real estate market – when asked how the market is doing these days, one long-time agent replied, “Well, I bought my house for $155,000 in 1990 and it’s worth $550,000 today. It may have been worth $650,000 a year or so ago, but it’s worth a whole lot more today than when I bought it. Interest rates are a whole lot lower than when I bought, too. I’d say the real estate market is great!”

I couldn’t agree more…how about you? Have you seen an increase in your business lately? Are your sellers looking at their current situation as positively as the agent did in this entry?

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5 Responses to “Leading Indicators for Real Estate Are Positive”

  1. Jamie Hook Says:

    Yes, I agree. Lets get these bank owned properties sold. I have many first time buyers taking advantage of these homes. Also, I have buyers that are moving up into a $435,000 that is worth $600,000. They could have never afforded this neighborhood if it wasn’t for the opportunities that exist right now. They are nervous that they might have to rent their current home but they realize that this opportunity may never ever happen again. It could be decades before we ever see a market like this again.

  2. Pat Viohl Says:

    My sister has been a realtor in Columbia, SC for a number of years, and she used to say you can make a real fine living selling $100K homes; you just have to sell more of them! I agree that every sale, regardless of price point, will help us on the road to digging out of this mess our economy is in. And to some degree, sellers are finally “getting it”…. it’s been much easier lately for me to convince sellers that they have to get real about pricing if they want to get their homes sold. I am seeing an increase in buyer clients, and now, slowly, with sellers as well.

  3. Donna N. Hogan Says:

    I’m a walking testimony. I’ve been working with many buyers and I don’t know who’s more frustrated me or the buyer. Each time we find a home they like, it’s UNDER CONTRACT. The market is truly moving. To make matters worse, losing a deal last week due to Bank of America deciding at the closing table they’re pulling out of the $100 downpayment HUD deal for my buyer was such a SHOCK! But, due to all of the grinding I do talking about the perks that’s given to the first time buyers, I now have 4 binding contracts expected to close soon. None are huge deals, but, I’ll take as many as I can to meet my goals.

  4. Lloyd Carver, Loan Officer Says:

    Like my old boss used to say, “a little something is better than nothing”. By the way, Metro Brokers Financial has a number of investors who will still close on the $100 down HUD homes.

  5. Valerie McDonald Says:

    It has always taken sales at the lower end to get the sales at the upper end moving. Yes, we need sales on the lower end to allow move-up buyers to move up. Yes, we need to clear out the foreclosure & bank-owned inventory to make room for the rest of the homes.
    & I agree with Lloyd. I’ve always heard & said, ” a little of something is better than all of nothing”.
    Flexibility helps on all levels.

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