2021…the year of very low inventory. Low inventory to the point where buyers are doing irrational things to win homes. This seems to be true in many markets around the country, not just the Northern Virginia/Washington DC area. COVID is playing a part in this low inventory arena, but there are other factors as well such as people might sell their home quickly, but then have to find a new home within 30 days, and with low inventory and tough buyer competition, they don’t want to be rushed. It’s a weird conundrum of low inventory because people are waiting for more inventory. How do we create more inventory? There are several ways, but there are three real estate farms that are ripe for the picking that can help to alleviate this issue. Let’s discuss them.
1. Inner City Absentee Owners of Condos
It’s no secret that with a pandemic, people are leaving close-quarters living and moving outward to the suburbs. In many markets, rental rates have come down due to the abandonment of city living which leaves absentee condo owners, not only looking for more tenants but finding their income stream is less than it was 12 months ago. This is causing these owners to consider selling their assets at a time of great urgency for housing inventory, hence cashing out. Targeting these owners and positioning yourself with easy turn-key solutions to their problems should have the phone ringing.
2. Down-sizers in Desirable School Districts
One of the best real estate farms to go after is the down-sizers. Yes, they have been hanging on not wanting to sell, but now is the time. It’s very tough to “time the market” but there is no better time than this moment to sell that large home you no longer want to clean and take care of. Families with small kids buy these homes and they do it based on where their children will be going to school for the next 10-15 years. Farming by a school district is far more effective than just subdivisions. Parents want their kids in good schools, and they shop or homes that way. Homes where the owners have lived there 20+ years, are certain square footage where you know it has stairs are ripe for the picking. As a Realtor, targeting these people and educating them on how you can assist with their sale and transition into something else will put you in a good light. 38% of ALL homeowners in the US own their homes free and clear. Now is the time to cash out…so get after these people.
3. Condo/Townhome Owners-Owner Occupied
If you own and live in a condo/townhome and want to sell and move up…now is a great time. Interest rates are under 3% so if you want to make out like a bandit on the sale of your home and borrow the most money you will have ever borrow on a move-up purchase, now is when you make that happen. We know the life span of a condo/townhome owner is less than a single-family, so look for great locations that are desirable to live in and have young people who have better than average income levels. This farm has a ton of potential, and with the move out of close quarters and into single-family, I would be spending marketing dollars here.
Listings Breed Buyers…Now what?
With fewer homes to purchase, many people are looking to buy New Construction homes, at least they are in Northern Virginia. Check out the highlighted link to get more information. Listing those homes from the real estate farms mentioned above will bring many new buyers your way that need representation. With the flock to new construction, I would do all I could to know the best developers, builders, and construction lenders. Making in-roads with these people is important.
Stewart Title Can Help You Target These Homeowners!
Well of course we can! We do all we can to put our Realtor partners in the best shape possible to gain more clients. We partner with several data mining providers but TitleFlex is the best. Contact me or your local Stewart Title sales rep and we can assist! Fill out the form below and let me know how else I can assist your real estate business and become your Title partner.
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Interested in growing your real estate business with Pruitt Title? Please fill out the form below and I will contact you shortly. Thanks, Wade "DCTitleGuy"
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