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By Leon Y. d’Ancona, B.T.L., M.T.L., RRESI
Investors rightfully expect that you know the real estate market in your area very well. It won’t take very long for an astute real estate investor to realize that your knowledge is lacking and that perhaps she should be seeking the advice of someone else. Conversely, when an investor makes money with you, your reputation quickly starts to spread, and others seek you out. Astute buyers think of themselves as investors and think along the same lines.
Here are four proven methods used by my clients both in Canada and the United States.
1. Investors and astute buyers look at a home as a way to make money. You will need to focus on the right area, conducive to growth and income potential. Remember "Location Location Location"? Don’t just preach it, practice it.
2. As an accomplished real estate professional, you will understand the clients’ hopes, aspirations and goals, for property growth and income. Then cater to that need impeccably.
For example:
2. As an accomplished real estate professional, you will understand the clients’ hopes, aspirations and goals, for property growth and income. Then cater to that need impeccably.
For example:
Presenting a client with 12 month data how many units sold, how long it took to sell, and what the average and median price is, goes a long way to establish your credibility as an advisor.
Suppose Quesnel grabs your client’s fancy. You will need to dig a bit deeper: An average price of just $171,730 looks attractive, but what does it get you?
There is a problem with “averages”. Reminds me of the statistician whose head is in the oven and his feet in the refrigerator. When asked how he felt, he replied “on average I feel fine.”
3. An investor willing to sink money into a property expects to be presented with all the information relevant to her purchase such as the disparity within her choice. Here are subareas:
They will likely influence your client’s decision.
4. In larger metropolitan areas with many sales, you should pay attention to the market percent of sales of a particular type of property. If condo apartments constitute ¼ of all sales, do condos have a constant market share? If the market slows does it slow for all types of sales? Look at this four year market trend of condo apartments. Do you see a trend?
If you don’t, look at this 4 year graph.
Yes, Virginia, if you are an investor or a potential home owner, there is a good time and a better time to buy a condo.
Only your imagination limits the way you can apply % of total sales by units or value for any real estate market segment. Price, type, style, city core, suburb and so on.
Knowledge and presentation skills will earn you the reputation you deserve with clients who need an expert like you to help them. Feel free to contact me if you need more help.
P.S. It’s always a good time to buy a home given the right reason!
All articles presented on this site and statistics provided by REality™ are copyrighted www.realestatestatistics.com. For more information or to enquire about using the articles and data presented, contact leon@realestatestatistics.com.
