These Are the Top Slides to Share to Build Seller Confidence
With every other news headline talking about our economy, it’s impossible to not think about the impact it will have on real estate.
The truth is: many real estate markets around the country are not only back to where they were, they’re better than before COVID-19.
The question is: do your clients know that?
With media painting a certain picture, many may be thinking the worst about the market, putting their real estate plans on hold or worse, panicking that we’re going to see a housing collapse.
That’s why these are the 5 slides that every real estate agents needs to have right now.
Home Showings Are Higher Than Before COVID-19
Not only are home showings up, they are higher than they were at the beginning of the year.
While they may have dipped during the worst of the shutdowns, low mortgage rates have led eager buyers back to the market.
Still, sellers have been slow to return at the same rate, making many markets extra competitive.
If you have sellers who have been hesitant to list, showing them this graph could motivate them to make a move sooner than later.
Majority of Economists Predict Price Appreciation
While the economy’s status continues to be a source of concern, most economists predict that low supply and high demand will continue to fuel home price appreciation.
They key to communicating this with your clients is helping them understand why the market is different than the one that led to the housing collapse.
Before the Great Recession, the housing market had:
- Irresponsible mortgage lending
- An oversupply of homes
- Overtapped equity
Today’s market looks the opposite with:
- Stricter lending practices
- An undersupply of homes
- More equity
Showing both buyers and sellers this slide should help calm fears that buying a home now is a good financial decision. Plus, low mortgage rates have made homes more affordable than ever, making this the perfect time to “move up.”
Unemployment Will Not Lead to Mass Foreclosures
It’s an easy assumption. If people can’t pay their mortgage, they will have to foreclose.
And while under ordinary circumstances, that is definitely true. But these are not ordinary circumstances.
The CARES Act enacted for coronavirus relief allows forbearance up to one year for all federally or GSE-backed mortgages including FHA, VA, USDA, Fannie Mae, Freddie Mac. For homeowners who do not have a government-baked mortgage, most private lenders are also offering extensions on forbearance forgiveness.
No one wants to see what happened in 2008 to happen again. Making sure that your clients know this is key to building confidence in the real estate market right now.
91% of Economists Believe We’re Already in a Recovery or Will be Soon
Recession is a scary word but context is everything. The “flatten the curve” mentality temporarily closed many businesses, naturally leading to a period of decreased economic activity.
What happens when economic activity declines for an extended period of time? A recession, at least according to the technical definition.
But as businesses pick back up, economic activity does too. This slide shows that despite the uncertainty of the past couple of months, 91% of economists thank that the economic recovery has already begun, or will as soon as the 3rd quarter of this year.
Whether you’re sharing this through email, social media or in your listing presentation, it should calm fears in both buyers and sellers.
The Housing Market is Almost Back to What it Was Before COVID-19
Before COVID-19, the real estate market was strong. Supply was low, demand was high, and affordability fueled by low mortgage rates was a big motivator. While buying and selling understandably slowed at the height of the pandemic’s shutdown, this slide shows that supply, demand, price and time on market are almost back to what they were in February.
Showing your clients that the market is nearly back to what it was sends a strong message.
If they had any doubts or concerns that a recession would cause the market to collapse, this slide should help ease their worries.
Bottom Line
With information coming from all sides, it’s important to continue to step up and be the real estate expert your friends, family and clients rely on.
While the real estate market may be heating back up, there is still a lot of speculation about what the future holds. In order to build trust in your communities and calm fears among clients, you need to continue to share the right information the right way.
These graphs are a great starting point, but it’s going to take persistence to get the message out there. Be sure to check into our Resource Page regularly for updated information on what’s happening in the real estate market.
