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Shifting Your Focus In Order To Sell More Homes
There are some shifts in the real estate marketplace that have been taking place over the last year. One of the most important strategies you have as a real estate agent in order to be successful in selling homes is to be aware of shifts and changes in the marketplace.
When our market was super hot that the prices were going up thousands of dollars per hour- Nestor knew that the market was going to go bust so we got out of the residential marketplace and switched over to the parcel assemblage niche- putting properties and owners together for developers and builders to buy.
Then Nestor said a few years later that we would need to shift again since the signal that the land assemblage niche was not going to be lucrative any longer was when builders stopped going through with the sales and terms.
Nestor said that short sales were coming around the corner- this was in 2007 so we positioned ourselves to be there when the market crashed. At that time, there were no designations for short sales. There were no rules. We did very well during those years with having a high 98% success rate in closing our short sale listings and staying in the top 3% of closed sales for our MLS.
So what are the new shifts?
Developers are back in the marketplace. New construction is happening again. Those are 2 great niches.
Where are you focusing your marketing?
The Move-Up buyer pool is one of the markets that is shrinking. There are 18% less move up buyers. Move up buyers typically are between the ages 36-45 years old. These move up buyers were born in the 70's.
Think about it. How can these people be move up buyers when they have negative equity in their properties in most cases, still. In most cases, these would be move up buyers bought their first homes about 10 years ago at the peak of the market and we are not anywhere near those prices again, at least not yet.
Some of these buyers are instead coming into the marketplace as boomerang buyers. They are starting over again and have been through short sales or foreclosures.
We have always said that if you want to make more money selling real estate you either have to sell more units or sell higher priced units. I would rather sell fewer homes at higher prices any day over selling more units.
The Luxury home buyer niche is growing and at a good rate.
Stock prices have been going up and the interest rates are still low, this fuels the luxury niche.
This niche are people between the ages of 46 to 60. These buyers are the tail end of the baby boomers. They are wealthier than any other generation before them. In many situations, their kids are grown and typically both spouses have successful careers or own their own businesses. They also have less debt.
This group is good with their money. They have success in business equity, they own financial securities, stocks, bonds and mutual funds. They also tend to have income producing real estate, trusts and life insurance.
The best part about this niche- is there are A LOT of them!
The best group if you love to help people is the older baby boomer generation, the ones who are turning 65. 55+ communities are popular with this age group but we also must consider multi-generational households who would not qualify for active adult communities.
8 million people will be turning 65 over the next 10 years. This group tends to be very loyal so if you develop the loyalty they will refer their friends to you. In this group- you will see a lot of them will move in social groups. One couple will move into a community, fall in love with the community and start telling their friends about it. Soon more and more within that social sphere move into the same community.
While Florida and Arizona have typically benefited from this group of buyers that is no longer the case. Yes, they will continue to flock to Arizona and Florida but many in this group will retire in places like Logan Utah, Boise Idaho and Fargo North Dakota. They also will move to places close to their grandchildren.
Be ready to shift in your marketplace. Embrace the different niches you can work within to be successful and sell more houses this year!