Understanding the 2021 Real Estate Market
It is important to understand what is happening in real estate and also why it is happening if you are thinking of selling or buying a home in 2021. There are always opportunities and challenges in the real estate market and that is especially true in 2021. Why Lisa is asked how the market is, the answer is often, "It depends". The way that a buyer or seller views the real estate market is very different. Not everyone is maximizing the opportunity or minimizing the challenges either. This mistake could cost buyers and sellers thousands of dollars.
Here’s how you can avoid them.
Mistakes in Real Estate and How You Can Avoid Them
A study shows that 77% of sellers are hiring the first real estate agent that they speak to. This is only okay if they're speaking to the right agent. Sellers are not interviewing their real estate agents or worse, not vetting agents. Meaning, they are not looking at the success rate, experience, and the marketing plan that the agent has in order to sell their home for the most money. Many sellers hear someone has a license and they think that all real estate agents are all the same. If all agents were the same then all agents would get the same results. With over 21,000 real estate agents, only 1,200 sell 10 homes or more a year. That is crazy. There is a difference with the real estate agent you hire.
At Treu Group Real Estate, we always encourage the people that contact me to look at what others say about us. When they do, they will see a long list of successes and raving fans. They've read our Google reviews, looked at us on Yelp, looked at our track record, and discussed our strategy to get them the desired results. It’s important to make sure you do this when choosing a real estate agent. It takes five minutes of somebody's time. This is crucial especially if you want to sell for the most money or you are ready to buy your home.
The Strategy to Winning in Real Estate
There are two things Treu Group Real Estate does very well as a company when it comes to our clients:
#1 is Marketing. Attracting the right buyers for our properties is more than simply doing the 3 P's. What are the 3 P's? Putting a sign in the yard, Putting it in the MLS, and Praying (not that I am against praying). Selling for the most money with the best terms is amplified with proper marketing.
#2 is Negotiation Skills. We are trained to be able to allow our clients to benefit from the seller's market which includes price and terms. It is called the "Treu Cupcake Effect". Who doesn't love a delicious cupcake? What is an example of the Cupcake Effect? There are so many ways to have your cake and then some. For example, multiple offers from our 10-point multiple offer strategy or our popular post-occupancy strategy.
We are willing to work for our clients to get the best offer, not just an easy offer.
Palm Beach County Real Estate Overview
2021 has been challenging for buyers due to the shortage of homes for sale. What has caused this? There are so many reasons including COVID-19, record low-interest rates, and taxes. People are tired of being in limbo and want to enjoy life now. Many are asking, if not now, when? Relocations are up dramatically from the Northeast and California. Each week we have fewer new properties come on the market than what is being sold.
The merging of multiple types of buyers is causing our seasonal properties and our spring/summer properties to be in demand now. Some people are really scared that in the spring or summer season, there's going to be nothing for them to buy so they're starting to buy now. People that have leases are starting earlier because they understand that it's a very competitive market.
The average age of the person moving into Florida is dropping. Why is that? People can work from home anywhere and they are moving. They keep their income and they can live in Florida and enjoy the amazing lifestyle here year-round. When they move to Florida they can afford more due to lower prices and lower taxes. This year a driving force is that they can be outside in winter eating, walking, going to the beach, playing golf and so much more. The Northeast is loving this opportunity that we're open and that it's easy to live a safe COVID-19 lifestyle in Florida’s outdoor options. The flip side of this is if you're looking to buy a home in South Florida or Palm Beach County. It is never a fun proposition to have to buy into a very competitive real estate market, but it doesn't mean it's not the right thing to do. As we know, far more often than not, if you're going to be in place for a minimum of three years, it is better to buy a home than it is to rent especially in this moment of historic low mortgage rates.
How Do You Navigate the Competitive Market Now?
Here’s some good news about this competitive situation that we have. When we compare interest rates from today to just a year ago in January, they are down 1%. So a 1% adjustment in interest rates will balance out a 10% increase in the sales price. The lower rates have helped offset the appreciation in our real estate market. Treu Group Real Estate believes that there are approximately 100,000 out of 400,000 renters that, without a doubt, should and could be homeowners. The earlier you start buying real estate, the more you have equity, which means the more wealth you have long-term. Who are the people who can buy a home? These are people that have the income and have the reserves. People should start buying in their 20s if they have a stable job and financial situation.
Your Real Estate Equity
Real estate is 83% of a person's wealth at retirement and people really don't understand it. However, we actually have a free tool for people to be able to see and monitor their real estate equity. It's a monthly visit with your equity. This tool allows you to visit but also play with it and say, "What if I made an extra $10 a month in my payment? What if I made an extra $100 a month in my payment? What can I do with that equity? Is it time to maybe invest in something?" There's a lot of great quality information in that equity builder and you are in control. We provide this with our clients and everyone because your equity is so important and we want to help you build your equity faster.
Your Real Estate Resource
Here’s the truth: websites like Zillow are not real-time or accurate. The info you need is not there immediately. Most people don't understand that so agents always have a head start on looking at properties available. Here's also the big one, real estate agents don't have to put up their properties on Zillow. If you want to see all the properties for sale, you can find them here on our website. In Florida and South Florida, it's really important as we have different types of communities such as country clubs, active adult communities and not everybody wants those. Maybe you're not old enough to live in a community that requires you to be a certain age. You can eliminate those so you do not have to go, "Well, can I live there or not?" You can customize and only see the properties that are perfect for your needs like if you want a pool or a waterfront view, and so much more. One more important thing is if you own a home, you can also see pending (these are properties that are already under contract) and sold data. You cannot do that on Zillow. Our website is a full resource for homeowners, move-up buyers, or first-time buyers and an easy site to manipulate and use. And for those that like to search online, they definitely should be searching on our site.
If you are planning to sell and move out of the area, now is the time. If you want to move-up buy, this is the right time. If you are renting and you say, "Enough is enough. I want to find my dream home." You need a dedicated buyer's agent on your side to help you have a bigger chance to win that property. Lastly, and we hate to say this, but if you are not able to pay your mortgage and you are struggling, or you are underwater, call us. Treu Group Real Estate’s experts are here to help you. At Treu Group Real Estate, we love what we do and we don't do this for money. This is our passion and my team knows you deserve the best. We are here to serve you.