Mark my words, the summer of 2009 will be a hot one for real estate sales. And the absolute worst mistake you can make is not to be prepared.
Economists, analysts and the National Association of Realtors (NAR) are predicting first-time home buyers will turn up the temperature on the 2009 real estate market. In fact, NAR announced that 53 percent of all home sales came from first time buyers in March of this year.
Why? Well, first timers have plenty of incentives. Of course there's the $8,000 tax credit in the stimulus bill for first-time buyers that earn less than $75,000 ($150,000 for couples).
Next, there are the super low interest rates and extraordinarily low home prices (the average cost of an existing home in 2009 is about $20,000 less than a home listed during the same period in 2008). Then, add the fact that first-time buyers don't have a home to sell, and you have a clear forecast for a fertile summer.
So how do you take advantage of this superb selling scenario?
First thing is Know who you're going after.
Any archer will tell you it helps if you can see the target before you shoot. Who are first-time home buyers? According to Quantcast, a research company in San Francisco, Calif., 2009 first-time home buyers look like this:
- 58 percent female
- 41 percent are between age 18 and 34 (59 percent are 35 and older)
- 62 percent are Caucasian (26 percent African-American, 7 percent Asian and 4 percent Hispanic)
- 80 percent have no kids
- 35 percent earn between $30,000 and $60,000
- 58 percent have some college education
Also, know that they're likely anxious. Allay those fears by acknowledging their anxiety, then focus on all the benefits of building equity in a home (something they can't do while renting) and push home warranties (some studies have shown homes with warranties sell 23 days faster than homes with no warranty coverage). Also, talk about all the other buyers you've helped. If others are buying, then it must be okay.
Bob Corcoran
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I like the sound of the market picking up - it has in this area lately. It is rather exciting to be a part of the upswing! Thanks for sharing!