A Property Data API is a powerful tool for clearing up misconceptions formed by information based on national markets and headlines.
Homes prices are going up, people are worrying about a correction and that is sending many people to the rental office.
There has been some buzz in the real estate world about a recent Freddie Mac survey, which showed that 78% of respondents believe that renting is a more affordable housing option than buying.
Additionally, in a 4% increase since the beginning of the year, 58% of renters who responded indicated that they have no plans to purchase a house.
While this information could certainly indicate a trend that is a bit disturbing to a real estate agent, there’s a little more to the situation than a headline can convey.
And as we know, markets differ. What’s taking place in Des Moines is not necessarily the same as Fort Lauderdale. And certainly no market is like San Francisco.
That’s why a Property Data API is a powerful tool to counter the rental mentality.
There are effective ways to use this tool to talk to clients about their options.
After the recession, we saw a huge increase in the demand for rental housing. Young people faced difficulties purchasing property due to low wages and tight credit. Families lost their houses due to foreclosure.
Rent prices soared in many areas throughout the country. For-sale home pricing dropped dramatically.
A large number of people, especially Millennials, lived through that time. Understandably, it might be making them skittish today as home prices shoot upward again.
Home purchase prices nationally are rising quicker than both wages and inflation. This trend, combined with higher mortgage rates, is currently making it a bit more expensive for individuals to purchase new homes and can be making many clients shy away from getting out of a rental situation.
But Freddie Mac president David Brickman has stated that while buying is difficult for many right now, even renting is pretty hard to afford these days.
Property Data API supplies facts about local markets
What’s a person to do?
First of all, it would be helpful for an agent to supply consumers with facts. The key here is local facts. Hyper-local facts.
And the key to local facts, is to have home sales data for individual markets, not only home sale values by zip code, but neighborhoods and subdivisions as well.
For example, a potential home buyer might be worried about buying a home in a certain area.
With your Property Data API, you can show that buyer a few local facts.
Perhaps home sales are rising. That’s an indication that other people are still buying in that neighborhood.
Social proof is a powerful persuader.
Showing rising home sales in a market is about the best testimonial you can get. Better than word of mouth. Call it “Word of Wallet.” That data shows people are still plunking down money to purchase a home.
Conversely, if home sales are flat, then perhaps, the buyer can see that in this particular neighborhood, they can still find a decent home at a decent price.
Run a comparison on monthly mortgage payments compared to monthly rental payments and perhaps that consumer will be convinced they would rather own their home place instead.
Same goes for prices. With a Property Data API an agent can show trends in home prices.
If prices are going up, perhaps that’s an indication that a consumer better make a move sooner than later. If that trend continues, that home should be worth more in the future.
Again, if in that particular market prices are flat, then the home buyer can see there is still an opportunity to get into a home without paying an inflated price.
Each market will be different. Each market will have its own characteristics.
Show how amenities add value
With other data an agent can also point out other characteristics that support buying that particular home as a sound investment decision.
Use school data to show how great the schools are down the street.
Add a geo-coded plug-in to integrate listings with points of interest. Maybe a property is close to a park, which should give it a higher value, say 10% to 20%, than other properties.
Is a Whole Foods going up in the area? Also point that out with your Property Data API. That’s a sure sign that someone believes this is an up and coming area.
There are many programs in existence to help buyers, especially first-time buyers, find a path to home ownership. Not everyone is aware of things like FHA loans, USDA loans, and VA loans.
In addition to these programs offered by the federal government, potential buyers should also be encouraged to do some research into their local city or state programs for housing grants and first-time-buyer programs.
While home ownership does come with some extra work and potential costs compared to renting, point out how that owner will be in possession of a valuable asset which can make a difference in their future.
For example, adding upgrades and improvements can help owners sell later at a profit.
The best way that you can help potential buyers make this decision is to use your local real estate data tools to show property values and house prices in their markets, so they can make an informed decision based on local conditions.
And how they can use those monthly payments toward building owner’s equity rather than filling the landlord’s pockets.
Real estate agents should also take actions to get renters signing up for their online mailing lists. This is a great opportunity to provide them with local market data each week, or month, allowing a renter to jump on a property when they feel comfortable – either when prices stabilize or start to rise and a renter knows they must make a decision.
Buying a home is a scary proposition for many people. Certainly for first-time buyers. But also for veteran home owners as well.
But 2018 is not 2008. Lessons were learned. Safeguards put in place. People can no longer purchase a home with no down payment, no reported income and interest only loans.
A Property Data API, with real estate market data down to the neighborhood level, can present a clearer, rational picture for a specific area a person is considering…and overcome any sort of headline-grabbing hysteria presented on a national level.