As we close the books on 2019, you probably wonder how you can make 2020 your best year ever for real estate sales. Realtor.com reports that 2019 was a banner year for the U.S. housing market, with median home prices up to $316,000—a record high! (That probably sounds low for those of us who live and work in Southern California.) How can you, as a real estate agent, turn a tidy profit in the coming year? Here are some tips to help you not only achieve, but exceed your sales goals:
Set Realistic Prices
As everyone knows, higher home prices equate to better profit margins for home sellers and realtors alike. But the flip side of this equation is that buyers are increasingly finding themselves priced out of the housing market. No matter a buyer’s financial situation, it always makes sense to competitively price any and every home that comes on the market. Consider this. If you can convince your sellers to list their house for bargain-basement prices, you will not only attract ticket-conscious shoppers but could create a bidding-war.
We realize that some sellers refuse to see the writing on the wall…insisting on setting an asking price far higher than they should. To keep the peace, counsel them about your opinion and then agree to set their desired price, as a test. If offers don’t come rolling in during a predetermined period, revisit the issue, pointing to data to back up your calms that lower priced houses attract more attention than their higher-priced peers. While, admittedly, this is easier said than done, gently nudging sellers while making sure you have their best interests at heart is one of the most important functions in your real estate role.
Capitalize on Lower Interest Rates
In the not-too-distant-past, a “great” interest rate was 8 percent. Fast forward to 2019-2020 and buyers resent having to pay anything higher than 4. The reason this matters to you, as a real estate agent, is because it’s great information to pass on to your clients. Baby Boomers remember the days of double-digit interest rates, so they may not question a mortgage offer circa 2019 of 5 percent. But if your clientele skews younger, you may need to point out historical trends. When buyers understand the translation of nominal differences in monthly payments based on interest rate percentage points, they may not argue with your mortgage lender’s offer. While no one can predict the future of real estate interest rates, one thing is certain. Rates will continue to rise until they fall. And in both situations, people will buy real estate. A realtor who explains the lifecycle of home buying and selling earns the trust and respect of his or her buyers.
Happy New Year from all of us at Exact Escrow!
About Exact Escrow in La Verne, California
When it comes time to choose an escrow company, please consider Exact Escrow Inc. We are a full-service independent escrow company dedicated to exceeding our client’s every expectation. Our goal at Exact Escrow Inc. is to make sure even your most complicated transaction closes smoothly and efficiently. Call today to speak directly to an escrow officer (909) 542-1062.