August 17, 2018
Homebuilder Confidence remains steady, falling only one point to 67 in August. The NAHB reports strong demand for new housing, fueled by steady job and income growth along with rising household formations. However, there are growing affordability concerns, stemming from rising construction costs, shortages of skilled labor, a dearth of buildable lots, and rising interest rates.
First-Time Homebuyers Continue To Dominate Mortgage Market
The gap between first-time home buyers and repeat buyers in the market is widening as homeowners stay in their homes longer, and renovate to update and age in place, according to a report from the Urban Institute.
Certainty Home Loans has a first-time homebuyer presentation and marketing materials that can be co-branded. To connect with first-time homebuyers in our region, we can present a workshop together that explains the home buying and home loan process. Please contact me for more details.
Use Moving Day To Cement Client Loyalty
Try these four methods to help sellers achieve a stress-free move, and you could earn lifelong fans who will send you referrals.
- Be deliberate with service recommendations. Be proactive by sharing a list of reputable storage and moving services to your clients before moving day. Providing a list of moving companies will save clients time and hassle of having to conduct their own research, shows your connections in the industry and gives clients options to choose from.
- Promote staging as a way to prepare for a move. Staging provides an opportunity to declutter and remove items for a more appealing look while advancing the moving process.
- Help coordinate a “hybrid” move. Make clients aware of the option of packing and transporting belongings themselves then hiring professionals to load and unload to cut moving costs. Provide clients with information about renting a portable storage pod or moving truck, and advise them only to hire the assistance they need.
- Offer a turnkey solution. If the resources are available, provide clients with free moving materials marked with your brand, such as packing materials and a moving truck. This method will remove the stress and expense of hiring a moving company for clients while marketing your business.
The Logic Behind An Effective Logo: A Real Estate Professional’s Greatest Asset
The purpose of a logo is to connect with the heart through the eyes. The right logo should create an emotional connection, and encapsulate a series of feelings, from warmth and confidence to contentment and a wellspring of affection. A logo should express your company’s identity while providing the most affordable means of affecting positive change.
As real estate professionals, your logo should convey who you are and what you represent to your community. It must be memorable and more than just a passing a signpost that bears your name and logo. It should act as a reminder to home buyers and sellers that there is a professional who can represent them. They have a neighborhood expert who can facilitate a sale or purchase of a home. You are someone eager to assist them.
Helping Clients Understand Online Pricing Calculators
Online home pricing calculators estimate a home’s value based on its physical attributes, tax information, and previous sale records, however, that usually doesn’t tell the whole story. The home’s condition and subtleties of location, school district and neighborhood need to be weighed against other sold and pending comparable homes.
Correctly estimating new construction is even more difficult as there is no way of knowing what amenities are placed in the home along with the cost of construction. Builders can help ensure their new homes sell for what they’re worth by offering incentives, not discounts, so the subsequent sales come in higher, continually driving up the automatic models.
Clients who are buying in a new community can look to the builder’s construction loan appraisal for comparable sales leading to the value. Builders use this tool to help determine the price point of new subdivisions and are most likely the same comparable sales that the first home to close in that area will see on their appraisal.
Applying Artificial Intelligence To Home Building
The use of artificial intelligence (AI) in the real estate industry is slowly, but surely progressing. Though AI works better than humans in precision, accuracy, and speed in home building, humans are still needed to tell these machines what to do. The good news is that most home building today is undertaken in blissful ignorance of what could be lost or gained were advanced materials procurement, cutting and assembly, and customer generating technologies incorporated AI into business procedures.
The bad news is that AI algorithms are based on learning from past data. While builders’ value generation in home building continue to orbit around their ability to leverage relatively inexpensive land, inexpensive labor, or inexpensive capital to build homes and communities people want to buy and live in, then this new way of data analysis will not steer builders into adoption and investment in technology.
However, homes – new, remodeled, rented, owned, resold – are a growing human need, with a shortage of resources. If builders can learn how to adapt the tech community achievements in developing and evolving consumer-value-centric products and experiences, artificial intelligence can begin to favorably impact supply chains for home development and construction.