I coached an agent this morning who wrote a contract yesterday – and sold a listing he took within 12 hours in Ft. Myers! Customers and agents are asking how this will affect the real estate market. Well, we have experience with this and here’s what it says:
- Historically, new construction materials increase in price after a disaster. We’ve had one in Texas and here (not to mention the islands and PR) – which may affect materials. The time to enter into a locked new construction price contract is now. If you have anyone on the fence with new construction, they need to sign ASAP. If history dictates, we may see increased pricing in the new home market within 30-90 days.
- The resale market then, may heat up as inventory shortens through homes off the market because of damage, an increase of renters, and if new construction prices increase. Therefore, buyers in that segment of the market should also act now.
- If you are talking with a seller – remind them that properties that may come off the market now to be repaired/improved, will likely hit the market 90-120 days from now… better and nicer than they were before. It’s not the time to “play around” with adjusting price, showing homes and accepting offers.
As a general reminder – the tone of your communications now should be one of help/concern/care. Contact all your core advocates & affiliates who are in the repair business and support them. Great time to get them dinner/lunch – show up with a cooler full of cold drinks – whatever. They are overworked now. Remind them that as they come across homeowners who state that they may be thinking of selling (a lot of owners will simply say “just do the minimal repair, we’re selling it soon anyway”)… be sure your affiliates pass that information onto YOU so you can reach out to the homeowner.
Every change – even challenging change – brings GREAT opportunity. Look for it…