The Effects of Gas Prices on Real Estate

By
Real Estate Agent with Lake and Lodge Realty LLC

gas prices

Higher prices at the pump affect us all in many ways but have you noticed how much it affects real estate? I noticed a change in the overall dynamics of my solds this week. Comparing to years before my vacation home sales were way down and my local residential are up. Most of our vacation home buyers are from down state or even Northern Indiana or Illinois and I noticed last year more were asking for vacation homes within a 3 hours of their areas. Now gas is $4 per gallon I think they have tightened up that radius even more as the calls for these properties is almost non existent these days.

The higher costs of gas has also affected how I show homes. I am more likely to refer clients looking in far off markets. After figuring in the cost of showing homes along with extra mileage and time sometimes a referral fee is the better way to go. I still hang tough with repeat buyers and past client referrals but the price of gas definitely enters into every part of my business. Even my advertising has changed as I have tighten up the areas to a closer group of potential clients. With the number of foreclosures out there, the lower commissions offered and the price of gas, keeping my business closer just makes sense. How has the Pain at the Pump affected you?

 

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Randy Ostrander
Lake and Lodge Realty
107 N. Michigan Suite B
Big Rapids, MI 49307
(231) 796-5253
randyooo@yahoo.com

 

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Comments (8)

Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Randy:

If prices go higher it won't just be body parts they are after it will be our souls too.

 

May 15, 2011 04:32 AM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

You are right Gas Prices are effecting real esate!  I meet clients more often in the office now that I used too, I try to do one stop listing appointments and if I am showing buyers with kids houses, I ask if I can ride with them!

May 15, 2011 04:58 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Randy...I'm sure it has an effect on what some people do....I hope it goes down soon!
Hope you had a great day!!---Rob

May 15, 2011 12:10 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

I reduce my number of showings and try to schedule consecutive showings at the same property within minutes of each other. I also require new clients to meet me at my office first to qualify before I show them anything.

May 15, 2011 01:05 PM
Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

Randy, you are so right!  I have changed the way that I do business with more "one-trip" activities.  I think this is something we will continue to do as the prices hang high.

May 16, 2011 01:39 AM
The Scott Loper Team Bux-Mont Premier Properties
Keller Williams Real Estate - Montgomeryville - Lansdale, PA

Hi Randy,

Honestly, we haven't changed the way we do business because of gas prices.  But it doesn't make me like the soaring prices.  I do think it affects people's motivation to move (in some ways good if they want to be closer to their work).  But we have a lot of homes with oil heat; so that is impacting their desirability.

Lisa

May 16, 2011 03:27 PM
Simone Bercu
Metro Referral - Palm Beach Gardens, FL
Not state specific Real Estate - GRI, e-PRO, AB

Randy, I too, prefer to give referrals to other states that I am licensed in.  One prospect even asked me why, today.  Is this not obvious to the non-agents?

May 18, 2011 03:48 PM
Kathryn Acciari
Arc Home LLC - Shrewsbury, MA
Relationship Manager/Mortgage Loan Originator

That extra $10 or so at each fill-up does eat into the budget.  I'd rather spend it on something that will get results.  But prices always go up in time for summer travel, so let's hope they go down in a couple of months.

May 19, 2011 02:43 PM