Real Estate Market Trends You Should Know

Now that the year is about to end and a new one is about to start, it is always advisable for realtors to know the real estate market trends that are expected to happen in the next few months and in the coming year. The year 2017 may not be far from over but every realtor knows that this is not the year everyone in the real estate business wants it to be.  

The market trends in the real estate market will serve as guides for a realtor when making the marketing plan and financial decision. If you are a realtor, here are the trends in the real estate market that you need to keep an eye on: 

  1. The decline of property values

After World War II, property values are trending upwards, luxury homes in Fort Lauderdale are now quite expensive. But since 2006, the property values started to decline. In fact, it dipped down to almost 39% somewhere between the years 2007-2008, though the average decline between those years appears to be lower. 

  1. Buyer agency growth

Before, an agent tends to represent a single party only, either the buyer or the seller. That changed in the 1990s when the concept of buyer agency became widely accepted as both practical and uncomplicated. Buyer agency means that the realtor will work only in the best interest of the buyer. Before the buyer agency became popular, the state law assumes that the realtor is working for the seller. 

  1. Lower commission rates

A study in 2005 presented by the Government Accountability Office, it was found out that a realtor’s commission rate tends to be between 5 % to 7% of the property’s selling price. In 2007, the commission rates tend to go down. However, other alternatives for getting other sources of income for the realtor were put into practice. On top of the sales commission, they can now ask for a flat-fee, hourly rate, and for sale by owner tools. 

  1. Marketing trends

The internet becomes the most powerful marketing tool over the past few years. It will continue to be the main source or real estate property listings and market information in the coming years.  The National Association of Realtors estimates that 87% of the home buyers use the internet during their home buying process. They also said that one-third of the home buyers found their dream house online.  

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Understanding A Good Realtor

Before you start the very complicated and stressful process of buying or selling a home, you should have an idea of what makes a good realtor. Hiring an incompetent realtor will only add to the mountain of things you have to worry about. On the other hand, hiring a great realtor will ease your mind and give you someone you can trust with important decisions regarding your home. A realtor is there to make the process of buying and selling homes easier and more enjoyable. If you can avoid it, do not hire a realtor without a personal reference. Even if you have read reviews online, and checked out the company’s website, you never know who has written the reviews. The company could even be paying people to write good reviews. Talk to someone you love and trust, such as a family member or a colleague at work in order to find a great realtor. However, you should not blindly trust the person who gave the recommendation. Do your background research and make sure the realtor is qualified.

Realty is a business; plain and simple. You do not want someone conducting such an important business as selling or buying a home, with no experience in business. In addition to having some background with business, a background in financial planning as well as communications is a plus. There are many outstanding realtors who do not have college degrees, but all of them must have a license to practice realty within the state or province. If you see the letters GRI or SRES after your realtor’s name or company name, it means they have a realty certificate. The acronym GRI stands for Graduate Realtor’s Institute. The acronym SRES stands for Senior Real Estate Specialist. A realtor with these qualifications is bound to be experienced and knowledgeable. Realty is an art and the more education and experience a realtor has, the more success they experience in the business.

The more well-known and reputable your realtor is, the more clients they will have. This should not lead to you to being neglected as a client. A good realtor will be organized and knows how to allot their time appropriately. You should never have to wait a matter of days in order to get your phone call returned. Move on to a new realtor if you find this happening to you often. You should also not put up with a realtor who cannot keep an appointment. A good realtor is punctual and responsible. Of course, extenuating circumstances arise and appointments need to be rescheduled from time to time, but if it becomes a regular occurrence, take your business elsewhere. Their lack of commitment to you could result in you losing money.

If you ask a realtor for their resume, they should provide you with it. Look on their resume for their professional references and get in contact with them. It is rare for people to actually contact references, so you may find that the references they have listed actually had a bad experience with the realtor. Talking to someone who has worked with them in the past will bring great insight into their professionalism. There are not many things to remember when it comes to what makes a good realtor. A combination of passion, dedication, professionalism, and reliability should do it. When you can tell that someone likes their job and they do it because they genuinely want to help you, then you will surely be satisfied with the service they provide.

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