May 11, 2018
Fannie Mae’s Home Purchase Sentiment Index rose 3.4 % in April to 91.7, an all-time high.
The increase can be attributed to an increase in five of the six HPSI components since March.
* Report that now is a good time to sell a home increased 6% to 45%.
* Said home prices will rise in the next 12 months increased 7% to 49%.
* Say mortgage rates will go down over the next 12 months increased 4% to 48%.
* Said they are not concerned about losing their job over the next 12 months increased 5% to 79%.
* Reported a significant income increase from May 2017 increased 1% to 18%.
* Thought now was a good time to buy a home fell 3% to 29% compared to March.
Referrals continue to be the way that most buyers find their real estate agent. According to the 2018 National Association of REALTORS® Home Buyer and Seller Generational Trends, referrals by friends, neighbors, or relatives were higher among younger buyers such as 37 years and younger (48%) and 38 to 52 (39%) compared to older generations.
Use these tips to build your network while having fun and enjoying your life:
- Identify contacts in your business, social, or family networks who may be potential clients themselves or know potential clients.
- Attend industry events to keep up with competing businesses, stay on top of trends, and become aware of new client markets.
- Meet or call with former clients to get referrals at the end of each transaction. Utilize online networking sites like LinkedIn.
- Make sure your business has an active and well-curated Facebook, Instagram or Twitter accountwith interesting thought leader-style blogs, podcasts and articles.
- Connect with other professionals such as doctors, lawyers, venture capitalists and CEOs of various companies outside of your industry.
- Create face-to-face networking events to meet your online contacts.
- Get involvement with charity work to enrich your professional and personal relationships and expand your reach of potential clients.
- Get involved in your local community to meet others who might be looking for your services.
Buying remains more affordable than renting in most U.S. markets, and it’s important to spread the word to older clients who may be thinking about the hassle-free lifestyle of renting.
Here are few strategies to target your services to seniors and keep them from giving up on homeownership entirely:
- Most boomers seek a single-story home, ideally in a setting with minimal maintenance and yard work. Condos, patio homes, or elevator buildings are good options.
- Advise on aging-in-place modifications so they can safely remain in their home for as long as they’re physically able.
- Network with local senior-focused service providers, which can include movers, home retrofitters, nursing home and assisted living representatives, insurance agents, and financial advisers.
- Boomers and seniors tend to respond best to face-to-face marketing. Meet and network with prospects at community centers, senior centers, and community fairs.
- Extend your messaging to family members of seniors as well as their children or grandchildren may be assisting in their real estate decisions.
- Working with seniors takes time. Often, they want to fully explore all their options before settling on their next ideal property which may take 2-3 years.
Green building techniques can save homeowners money and make the environment a cleaner place. Here are ways to translate industry terms and green building materials into listing descriptions that buyers will understand and help sell your homes.
- Blower door tests: This home leaks less air than the average home, which will likely mean lower heating and cooling costs.
- EPS (extruded polystyrene): This home uses EPS insulation, which provides a higher insulating value per inch than Styrofoam.
- Low-flow water fixtures: This house has low-flow faucets, shower heads, and toilets, which means your family will use fewer natural resources—and you’ll save money on your utility bills—without noticing a difference in water pressure.
- Photovoltaic system: This home generates its own electricity using solar panels on its roof, resulting in much lower energy bills.
- R-value: The new insulation installed in the attic and exterior walls has a high R-value, which means it’s more energy efficient and easier to keep warm in winter and cool in summer.
- SIPs (structural insulated panels): This home’s walls and floors were built with insulated panels, which are stronger and more energy-efficient than conventional lumber and plywood.
- Xeriscaping: The yard’s landscaping uses native plants, which require less water to remain healthy and will withstand periods of drought without wilting and turning brown like conventional lawns.
A lack of affordable new homes for first-time home buyers and young families has made small lots hot property to buyers who want to live closer to their city’s business core.
In major metro areas where detached homes in close-in, transportation-oriented, semi-urban locations can command high prices, builders can also buy old homes, tear them down, maximize the site, and sell it at a price that makes it profitable.