A geocode API tool can add an important new dimension to an agent’s website that can be critical when home prices in local marketplaces are at all time highs. That’s one of the situations we face today as inventory is low…and prices for entry-level homes keep escalating; which is causing people to stretch their dollars and look at higher end properties.
But as with any challenging scenario, there are ways to frame a property so the price at this point in time seems justified. For one, mortgage rates are super low. That helps buyers justify paying more, when the effect on their monthly loan payments are still reasonable. But here’s a major factor – a silver lining for many properties – neighborhood amenities surrounding that property.
And Millennials, who now make up a huge bubble of buyers, like those amenities. Their eyes light up when you tell them there’s a cool cafe or new wave sushi place down the street (frankly, that works for many buyers in any age group).
Homeowners will love to hear how an agent is going to market their property and support that price by promoting the value of their location. Let’s face it. There might not be many homes in a certain price range. But if that buyer looks a little higher up, there could be quite a few choices available for them. Home shoppers might be discouraged by the price per square foot. The fact that there are actually quite a few homes available in that price range might cause them to sit back and wait for prices to drop.
But here’s the kicker, while Properties A, B and C are all similar in price, Property A has something extra going for it – a great location.
Geocode API Visually Illustrates Value of Location
Using a Geocode API map tool, an agent can point out all the cool amenities located near Property A. They can use a map…or present those amenities in list form by distance.
For example, there might be a Whole Foods right down the street, within a short bike ride. Or perhaps a LA Fitness gym around the corner. Then, there’s that cool espresso cafe with the homemade muffins and lattes to die for.
For newly married Millennials, schools will play an important factor. Use the neighborhood amenities map to show that elementary school, middle school and high school within easy reach. Their kids could complete the journey from kindergarten up to senior year in high school all from that one home nearby.
What about workplaces? Perhaps Property A is also located near several business parks. A great source of jobs for any new home buyer. Maybe there’s an industrial park a mile away with plenty of office and warehouse space for a company owner. Same with a hospital or college that employs hundreds of local people.
Another factor to point out is walkability. (Don’t forget bikeability either. There has been a surge recently in people buying bicycles and commuting by bike to work). Millennials are not crazy about cars. They prefer alternative means of transportation. Show them how Property A can reach plenty of great amenities by walking, or just a short bike ride. Leave that car in the garage. Take a bike ride to get that latte.
When an agent uses their geocode API to point out these amenities, the value of the property will go up in the mind of the buyer.
There’s also another persuasive argument going on here as well – the law of scarcity. Not only does Property A have this great location, but it’s one of the few properties that is so close to so many cool places. Which means, somebody is going to make an offer very quickly. Perhaps there will be even multiple offers coming in at some point. Time to move fast.
That’s what agents can also tell their listing prospects as well. When they create their marketing package, the agent can show them how they are going to use that Geocode API to illustrate the proximity of these great amenities to their home. And how that location makes their property unique.
In fact, there is actual research that shows how the location of a park, for example, can increase home values by 10% to 20%. For example, there is plenty of documentation to show how properties near the popular High Line Park in Manhattan have skyrocketed in value. And that’s only for a little 1.4 mile linear park built on some abandoned railroad tracks.
It’s ironic. Now that this huge segment of the population, Millennials, has finally understood the value of owning their own home, there aren’t many homes on the market to sell them. They are finding they have to bid higher if they want to get in a property today.
Pointing out that appealing grocery store, restaurant, club, yoga studio, golf course, park, etc., with a geocode API will certainly go a long way in helping to justify the added value of a property.