'Rebound' might not be a good thing when referring to a dating situation, but it's not a bad thing at all when we're talking about housing.
In fact, there are a lot of people 'on the rebound' that mortgage loan officers and their Realtor partners should be courting.
Online information and marketplace RealtyTrac estimates that more than seven million Americans lost their homes during the Great Recession. Depending on circumstances and taking into account that people generally have a two to seven year waiting period to repair credit and restore their eligibility to get a loan, the home-buying pool is about to get even more crowded.
People are coming back in position to buy homes on a regular basis, but a peak is expected in 2018 when a surge of 1.5-million consumers become able to buy homes again.
Mortgage Loan Officers and Realtors need to get ready and get them ready!
Here are some things MLOs and Realtors need to keep in mind and communicate to prepare for this "new group" entering the market above and beyond the normal flow of buying and selling:
Reaching out to renters:
Lack of housing inventory - particularly in the first-time home buyer price range - has been making news all over the country, increasing competition for properties, creating multiple offer situations and lengthening the time it takes to find and close on a home. A big infusion of rebound buyers could intensify these conditions, so marketing should focus on the importance of making a plan, how soon they need to get started and the reality of timelines for qualifying, searching for and closing in competitive market conditions.
An influx of home buyers is a great reason to connect with current homeowners and past clients about equity position, area appreciation and goals for the next one to five years. Outreach to homeowners should tap into curiosity and get their imaginations going about moving up, moving on, buying a vacation or second home. Focus on the importance of needing to be ready for the "buyer surge of 2018" so their homes can be top contenders when they hit the market.
It's great news that people hit hard by the housing, mortgage and economic downturns are rebounding by the thousands every day. They're starting over in a whole new real estate and mortgage world, with professionals who operate with higher standards and service than those in the years before the bubble burst.
This higher level of service includes keeping the public, as well as your prospects and past clients, informed of conditions and trends that may present opportunities.
We in the industry know that it's a good idea for everyone - not just those on the rebound - to take advantage of the experience and resources of real estate and lending professionals on a regular basis to stay on top of property values, personal finance and options during various market conditions…but the public doesn't. It's in their best interests (and it's our job) to make sure they do.