The first time home buyer tax credit officially expires today. If a ratified contract is not in place on a home by now, eligible first time or repeat home buyers cannot take advantage of the tax credits that have been available. But all is not lost! While intense focus has been put on the home buyer tax credits and most consumers feel that the credits helped both first-time home buyers and the U.S. housing market overall, recent studies show that the expiration is unlikely to slow the surge in home purchases across the country. Market Watch, a publication of the Wall Street Journal, reports that potential home buyers are more concerned with home prices, interest rates, and unemployment. To read the full article, click here.
So what can REALTORS do to keep their business fresh and focus on something other than federal tax credits? The answer is simple: do what REALTORS do best!
Take an education course. FAAR offers a variety of classes that reflect the changing needs in the marketplace. Consider signing up for the next Short Sales and Foreclosure (SFR) Certification course scheduled for Wednesday, June 2nd. This course provides a NAR-recognized certification and covers the intricacies and challenges of short sales and foreclosures. For more information on the class or to register, click here.
Update your marketing materials. Obviously, advertising the first-time home buyer tax credit is no longer an option, but highlighting the improving market for sellers and the great inventory on the market for buyers could help your business.
Experiment with social media. The pace of business in the U.S. has changed dramatically over the past 10 years and REALTORS have done a good job keeping pace. Who can live without their Blackberry or cell phone these days? But there are other technology opportunities that you may not have tapped into yet. Setting up a Facebook page or a personal blog highlighting your success as a REALTOR may appeal to younger buyers who spend a lot of time online doing research instead of using the phone book or verbal referrals.
Monitor the interest rate. Homebuyers are very concerned about mortgage interest rates, especially with recent predictions that rates will rise over the next several months. Monitor rates closely to effectively counsel prospective buyers about upcoming changes that may result in higher monthly payments. This “insider information” will make a big impression on clients.
Have fun! In many cases, REALTORS are one of the first individuals newcomers meet in a community so don’t forget to enjoy doing the job. Short sales and foreclosures can add stress to the process but at the end of the day, REALTORS are helping people accomplish their dreams.
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Whereas the $8,000 tax credit was a somewhat false sense of urgency, a more urgent issue for prudent buyers, is the soon-to-occur FHA and lending industry changes. These changes will make it harder to get a loan and increase interest rates. The increase in an interest rate is a far bigger loss than the $8,000 tax credit.
Unfortunately, a great deal of emphasis is put on short term benefits in the American culture and far too little on the long term planning or effects of decisions.
This is one of many reasons why it’s important for practitioners to study and understand financing and how to properly qualify a client.
.-= Matthew Rathbun´s last blog ..Digital Signatures on Real Estate Documents =-.
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