Getting Buyers off the Fence
Real Estate Agents often ask me, "What to do, when my buyers don't want to budge?" In a time where the media is certainly providing unfair and unbalanced reporting about the market, the values and the impact of foreclosures on prices, my suggestion is to focus on the investment. Your clients are looking for answers and are not sure where to start or whom to trust. They are looking for leadership, and for the first time Realtors have a new job description, which is how to combat the media and it's impact on Buyers who are unsure about the property values and timing. When should they buy, the time is now!!!! So it is time to turn your focus on providing the data to help your clients make informed decisions. It is time for you to start providing the factual or actual data, that will show them the benefits of having Real Estate in their portfolio.
2008 will be a buyers market like no other. So what is Buyer's want to know? Is Real Estate a good investment? you bet...look at the chart below, for a 20% down payment dating back to 1975, the cash on cash return averaged for the entire country is 31.16%. The average appreciation for Real Estate for The United States is 6.65% dating back to 1963. Put your focus on the investment, long term. The Power of Real Estate is one's ability to leverage, so what will their cash provide them in terms of a return on investment. They will be glad to see the facts. Really I mean, what is their other option? keep their cash in their current home, earning zero rate of return, or in a savings account at 2 to 4%.
Once they understand how much the investment in Real Estate provides in terms of a return, and in addition many tax benefits. They will get off that fence. If you are interested in sources to find this data, just shoot me an email, I am happy to provide many websites and databases where you can get the facts, the stats and real time data to share with your clients. You'll be so glad you did.
Chart Provided Courtesy of Estate of Mind, Inc.