Military Communities have long been immune from the "Bubble" we often hear about in our profession. We may be seeing a slight change that all REALTORS and Consumers should be aware of. If your located near a military installation, you will want to keep an eye on the BRAC recommendations.
What is BRAC?
"BRAC" is an acronym that stands for Base Realignment and Closure. It is the congressionally authorized process DoD has previously used to reorganize its base structure to more efficiently and effectively support our forces, increase operational readiness and facilitate new ways of doing business.
How does it impact the Real Estate Profession?
If a Division or Installation is slated to be relocated to another area. It means the military and civilian personnel will need to relocate. The customer will need to Sale their home and purchase a new home in the new area (i.e. Referral). If your in the area that will be receiving the reduction this will allow you the Real Estate Professional to target market to those homes and possible receive a referral to the new area.
If you happen to be in the area where you will receive an increase in personnel, you should start targeting the area's that will be relocating to your area. If you partner with local Realtors you can both create a Win Win situation.
What are some examples of how BRAC will impact?
In the Fayetteville, Fort Bragg NC area the market has started seeing a rise in the Price of homes and Subdivisions that are being planned. BRAC announced that the Fort Bragg area would be receiving a very large number of soldiers from Fort McPherson in the Atlanta region. Why the rise in prices? FORSCOM is relocating to Fort Bragg, which means the soldiers will be primarily Officers, causing a shift in the market.