Real Estate News
Real Estate News

Solutions Solutions Solutions


Written by
Wednesday, July 08, 2020

It’s time for real estate professionals to modify long-held value statements.

Widespread acceptance of the value and practicality of working from home may have diluted the power of the long-standing real estate value mantra: location, location, location.

Significant societal change and moral reckoning—necessities for a long time—are gaining momentum and will work toward resolution. In the meantime, many real estate owners and “wannabes” need solutions now for weathering the pandemic and related social and economic upheavals.

In these unsettling and unprecedented times, solutions matter. Homeowners, home buyers, and real estate investors value real estate solutions—solutions to real estate issues and real-estate-based solutions to a variety of other problems.

Effective forward thinking hinges on ingenious, individualized real estate solutions:

1. Safety and Convenience:

During the pandemic, consumers isolate at home. Home substitutes for the workplace and everything else. Visiting malls and grocery stores was transformed into online shopping, coupled with home delivery or curbside pickup. Post-pandemic, many will continue to let their fingers do the tapping from home rather than returning to retail aisles or work cubicles. How many aspects of real estate will remain online?

The variety of pandemic online shopping options has blossomed. Competition is stiff. Consumers abandon online shopping carts and head to the e-competition whenever a purchasing process is confusing, slow, tedious, or boring. With more real estate buying and selling processes finding their way online, consumers will expect the same degree of convenience, accuracy, and speed they experience with their other online activities…or they’ll move to the competition.

Your solutions: As a real estate professional, how have you redesigned your and your brokerage buyer-and-seller experiences to remove hassles and distractions? How do you ensure social distancing, video touring, virtual meetings, and other safety measures are efficient and effective without compromising speed and convenience?

2. Buyer Lifestyle Solutions:

Shift your marketing and promotion from “dream home” to “home solution” to weather these and future uncertain times. You know the types of financial and lifestyle problems the pandemic has caused and will cause the buyer target markets you concentrate on. What solutions does the right real estate purchase offer?

• A multiple-unit income property may provide a buyer with financial security if their employment becomes unstable or ends.
• An income-generating home could provide top-up income or emergency financial backup if it were practical to take in boarders, operate an airbnb, or rent out a self-contained suite as needed.
• A work-live space may provide security for small business owners or entrepreneurs.
• A secondary suite or second home could also allow homeowners lifestyle flexibility. They could move into the smaller unit and rent out the main unit to supplement job loss or to meet the need for future epidemic isolation.

Your solutions: What real estate solutions would properties in your area offer buyers who want to be prepared for uncertainties ahead and to benefit from a more secure lifestyle?

3. Seller Future Solutions:

Isolation issues that have arisen during the pandemic have revealed how practical multigenerational living can be. Separate living areas for different generations with communal areas for recreation and dining can make it easy to pool resources so real estate is more affordable for all:

• If a suite or second house cannot be added to the current real estate, property owners may welcome the option of moving up to a larger home or property that can be shared with parents or grown children.
• Some sellers may consider a move to a more natural setting—perhaps in a less-expensive urban area—which would incorporate recreational lifestyles that include waterfront living or local winter skiing.
• The persistence of virus infections in densely-inhabited urban areas may entice some city dwellers to relocate to safer, less expensive, more-for-your-money suburban or small town locations.

Your solutions: How might the pandemic or the threat of new viral epidemics change location preferences for your target markets or within your selling territory?

4. Mortgage Solutions:

Mortgage rates are at historic lows, so mortgage renewal can make good financial sense and there’s more…

• Low rates also make lifestyle changes more affordable. Perhaps, some homeowners would like to take home equity out for a renovation to add income potential or to purchase a second home as a safe isolation site. Income earned may also increase the total financing a homeowner qualifies for.
• Your network of mortgage brokers and investors may also offer flexibility in arranging mortgages, especially for qualified buyers who lack traditional employment histories or who are self-employed.

Your solutions: Encouraging buyers and sellers to build flexibility into their real estate and financial plans will help them embrace solutions for future emergencies that resolve many of the problems people have faced and will during this pandemic.

5. Environmental Solutions:

Climate issues have slipped out of the headlines during the pandemic, but questions regarding environmental issues like flooding and wildfires are still significant concerns in many areas.

Your solutions: Your local knowledge will reveal areas that are less prone to natural disaster and that may offer attractive solutions for nature-conscious families. Can you impact local buying patterns by revealing value in previously-overlooked areas?

Real estate markets will be tied to the pandemic until a vaccine removes life-threatening danger:

• Many with cash on-hand and/or purchasing power will take on the investor role, particularly where foreclosures climb.
• Others are searching for solutions to preserve their real estate holdings in the face of economic uncertainty.
• Many buyers and sellers who were intent on a real estate transaction before the pandemic hit are still keen to act, but to proceed they need solutions to the financial and lifestyle challenges facing them now.

Is it time to reconsider the target market and selling territory you concentrated on pre-pandemic?

• Significant changes in buying power may shift who will act in spite of global uncertainty.
• Some previously-preferred neighborhoods may face long-term or permanent down-grading.
• How will the real estate value mantra evolve as technology and digital transformation progresses?
• What dramatic changes do you see based on your local knowledge and experience?

Yesterday has disappeared. How are you redesigning your tomorrows and those of your clients?

Who will consider your real estate solutions valuable?

For more on strategic communication, visit PJ’s blog: What’s Your Point?



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