Josh Keefer

So, I’ve been watching number and following a lot of trends and I believe I see a change coming in the future. This is pure opinion of course, but investors should be poised for jumping into the market. There are several factors that have lead me to this conclusion and here are a few. Right now home prices are very competitive which is a good thing for buyers. We are coming into a time of year when annually sales slow down and homes will sit on the market a bit longer (this is due to some people not wanting to move in the middle of winter as well as a few other factors). These two items will help to soften sellers up a bit so that they are more negotiable. NOW…I want to pause for a minute after saying a statement like that. What I am not saying is that “low-ball” offers and “bullying” a seller will work-out. Often, these foolish tactics will only upset sellers and make them stick-to-their-guns all the more. All that I am saying is that sellers realize that they have to be accommodating in these market times. Weeellllll….now that we have all that cleared up let’s keep moving. The other indicators that investors may want to start jumping into the market are all the changing bank guidelines. More and more banks are becoming stricter as to who they would like to see obtaining a mortgage. The sub-prime days are over (for good in the foreseeable future as well). Banks have seen the problems that are created by allowing just anyone to own a home. If someone can’t afford to live in a home, then a period of time is needed for them to save some money and becoming better qualified. That is where you as an investor jump in. It is my belief that rentals will be on the increase. With folks not knowing what the housing market is going to do they feel more comfortable renting for a period of time. Also, all the people who aren’t qualified to own a home will need a place to live. And lastly, some people just don’t want to own their own home. It is easier for them to simply rent an apartment, or a house, where everything is taken care of for them and they don’t have to sweat all the small things that a homeowner may have to. Take a second and think about it. Kinda makes sense, huh? We certainly aren’t going back to the mess in the mortgage world that got us here. So, where are we going and where are people going to live?

With the economic crisis that our country is facing, it is imparative that we as Real Estate professionals inform our buyers and sellers of the trickle-down effects that this may have on them. For instance, if showings slow-down on a seller’s home and they are asking why, it is important that we are honest with them to avoid being seen as “over-optomistic”. It is always imporant to be optomistic, however, when we allow our optomism to blind us from the truth we are only doing ourselves and our clients an injustice. That is why we need to be proactive in gathering as much solid information as we can. If interest rates are going to be increasing (or decreasing), call your buyers and inform them of the news and let them know how this will effect them. This helps to make your clients feel that you are on the cutting-edge of information, but also that they have someone who will be honest with them. No buyer or seller wants to be working with someone who is out of touch with reality. Besides, if you were in their shoes wouldn’t YOU want to know?