Real Estate Can Still Be Profitable in a Downward Market
The real estate business has been in a downward trend during these last years, but perhaps I can share some interesting facts that can help ease the problems. I know a few real estate brokers and when I ask them how they are doing, they come back with a surprising answer, "Not bad." I also know some owners who are trying to sell their home, but without any success. Although I know that these people were doing better in this business in previous years, they are now succeeding in it more than other brokers and home owners. Here are some reasons:
In my neighborhood, there are five homes that have been up for sale. Each one is listed under a different brokerage firm. Four of the homes still have a "for Sale" sign in front of their home. These signs have been up for over a year. There have been several Open House signs during the year, but I see very few "future inhabitants" coming to view these homes. The fifth house which was up for sale at one time also, the sign is no longer there. Why is this? Was this house sold because it is less expensive than the others? Is it more attractive or laid out better? None of these are the answers. the owner of this home did what I think was a smart move.
When he saw that the real estate market was going down, and he wasn't able to sell his home, he decided to rent it. Within a month, his home was rented.
Yes, he still has the concern that one day he would like to sell this piece of property, but in the meanwhile, he is collecting money, while the other home owners are still waiting to make a sale. They are losing money, whereas they could be making a profit. I'm sure in the future, when the real estate market gets better, he will be able to sell his house. Meanwhile, as stated before, he is making money on his house by renting it while the four other property owners are losing because they are waiting so long for a buyer to come along.
I talked to a friend of mine who is also in the real estate business. When I asked him how he is doing, he says, "fine." Why is he doing so well? First of all, he has a "good eye" for design.
He can go through someone's home, and will be able immediately to know what to do to make the house more up to date and attractive. This is exactly what he does with his customers. He tells them what improvements can be made to the house. Since he seems to know what he is talking about, they take his advice, and there goes a sale. Also, this salesman joined a neighborhood council. He became active in this group, and of course, the more people you are exposed to, the more chances you have in the business world.
He also has his name and his picture and the name of the brokerage firm he is working for in an attractive magazine. This is in an architectural magazine with beautiful homes displayed on each page. He sends this magazine out to all his friends, like myself, free of charge. This is a very good advertising technique. I love looking through the pictures and I don't hesitate to show my friend this magazine.
Is this a good sales technique? I think so. I have another friend who seems to be doing well in this market also. She works for a family service group. This group counsels people regarding their family life. They also try to help people find places where to live. Who do they go to for assistance? My friend, who helps them find a home as well as counseling them.
There are also sellers who realize they can get their home sold faster if they get a property inspection before their home is listed. This type of inspection includes repairs needed such as leaks, faulty electrical wiring and other repairs needed. In a case like this, the owner is putting money into the house, buys additional furniture online, but at least he/she is able to make a quicker sale.
There's one important matter to consider if you are a buyer. My cousin recently bought a home. He was very happy about it, but soon after he and his family moved in, they got a phone call stating that the city plans to widen the street and take some part of their property away from them. He complained that he never received a notice about this matter. If he had known, he would not have purchased the house. The city stated that they notified all property owners. Although this is a very rare incident, it is important to check the disclosure statement. You never know what's in it that may be of importance to you.
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