What is a “Good Deal in today’s Real Estate Market?
I’ve read over and over again that “a recession is a terrible thing to waste”. And I agree. When I googled this phrase in quotes, I came up with 23,300 hits. The truth is, during any downturn, someone is having an upturn. In the retail market, that someone is Wal Mart and Target instead of Nordstom and Neiman Marcus. And in real estate it is no different. Many people are very quietly celebrating this recession… and making big bucks by taking advantage of it. Someone is going to win big and I want it to be you!
So, how do we as real estate agents, win big?
By making our Buyers and Sellers win big, of course! The problem, as I see it, is that the general public does not see the opportunities out there. Like how to use the home they have as a tool to position themselves in a better place when the market recovers! What an opportunity they have and they don’t often see it. Instead they see how much they’ve “lost”. When they haven’t lost anything!
And the Buyers? They all want X% off the LIST price when the real question is how much off the last peak price is the home? How much will it be in the next peak?
So, how do we, as Agents, show the Buyers and Sellers the truth about the opportunities today and not “waste this recession”? I have some thoughts and would love to hear yours as well.
1. Do the research and tell the Buyers what the home was worth in the peak before you show them. “This home was worth $500,000 in the peak and it’s listed at $300K now. That’s $200K less than the last peak! How much do you think it will be worth in the next peak? How long do YOU think it will take to get there?” That allows the Buyer to see the unbeatable “GOOD DEALS” they have available today!
2. Show the Sellers how to use their home as a tool to get in better position for the next wave. If they keep the home they are in, they are in no better position. Of course they must also need/want/can afford the next property but you may be surprised when you run the numbers. I’m seeing Sellers that can sell (for much less than the peak was) and re-buy a bigger, better, newer home for nearly the SAME monthly payment they have now. PLUS, they are positioning themselves to really win in the next upturn! That’s showing them how to get a really “GOOD DEAL”.
3. Show investors the positive cash flows they can have buying investment real estate in today’s market. Positive cash flows are abundant and I think we all believe we are at or near the bottom. Explain the risks and the benefits to them. It’s a GREAT time to buy investments! That’s what people who get a “GOOD DEAL” are doing all over the country!
It boils down to this…. How well do YOU understand what is a "good deal" and how well do you deliver that message? Would love to hear your comments.
- Topic: ActiveRain Community
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