The prevailing themes for most industries in 2020 has been, and will end up being, survival, and recovery. The coronavirus has spelled doom and disaster, both for its widespread human cost and for its damage to the foundation of our economy.
According to Yelp’s (September 2020) economic impact report, 163,735 total U.S businesses on their platform reported closures since the beginning of the pandemic; 60% of those businesses reported permanent closures. Businesses have been forced to re-think how they are going to survive considering about 90% of U.S commerce takes place physically. Fortunately, small businesses who shifted their businesses approach and not only transitioned but embraced technology to finally move online are having success thanks to a widespread shift to online behavior. A shift made possible by a growing community of technology-driven consumers and hyper-targeted online advertising. There is no question digital technology is at the center of today’s economic development.
As solutions for struggling businesses arise, difficulties in the housing market near. The real estate market is booming, and homeowners are currently sitting on more home equity than ever before. So why the panic? The number of homeowners 90 or more days past due on their mortgage has multiplied by five since the entering 2020. That number now exceeds 2.3 million according to Black Knight, a mortgage analytics company.
Foreclosure protection under the CARES Act has provided much-needed mortgage relief to homeowners with distressed finances as a result of the pandemic. However, the 12-month mortgage relief period on government backed loans is set to expire this coming March or April for a large majority of homeowners benefiting from the program. Record breaking unemployment rates means millions of Americans will likely continue to struggle to make mortgage payments and a subsequent domino effect of foreclosures and short sales is likely inevitable. What does that mean for home sellers?
As described in the book Home Selling Secrets, labeled by Yahoo News as “Possibly the most controversial real estate book for the general public ever written,” the law of supply and demand is a theory that will perfectly simplify why the sudden increase in real estate supply will not only negatively affect demand, but also explain why the long growing real estate bubble is likely set to finally pop. As struggling homebuyers have long anticipated, the much-needed increase in housing inventory means homes should at minimum become more affordable and homebuyers could finally have leverage in negotiations. Naturally, selling your home could no longer be easy as pie. This is the perfect time for aspiring home sellers to think like business owners, re-consider their options, and shift their approach to avoid falling victim of the pandemic economic shock and successfully sell their home without sacrificing their equity.
The concept of leveraging the internet and using proven high-tech marketing platforms is now wiser than ever. Like many online consumers, in today’s digital age, home buyers find properties virtually — forcing real estate agents’ tactics for marketing a house to shift for the better. The increasingly sophisticated marketing methods available can truly benefit homeowners in embracing the digital transformation of the Covid era.
A home marketing agency like Xolde.com which in addition to providing modern marketing, aims at transforming the way consumers make home-related decisions by providing data and education to empower the homeowners with the valuable information that is imperative of what could possibly be the biggest investment of their lives. They also provide a useful platform to monitor the best areas to invest and make better purchasing decisions.
Xolde Intelligent Home Marketing owner and Home Selling Secrets author Raphael Orozco Jr. identifies himself as a digital marketer who is licensed to practice real estate. Not the other way around.
Interestingly enough, we would think the number one reason many homeowners hire a professional to sell their home would be due to all the legal paperwork and the liabilities involved with the sale of real estate. However, that is not the case. A study conducted by the National Association of Realtors revealed only 4% of home-sellers view the legal paperwork and procedures first on their priority list when selling a home. The vast majority place higher importance on what will help them sell faster and for more money, like great home marketing.
“Money follows attention. Everybody knows it. And home-sellers chase that attention for their home because they seek profitable home sales. Smart sellers understand that nowadays using the latest technology to market real estate is crucial to assuring buyers notice their home” he said.
In the current digital age, homeowners are well informed about the tools available to them and their real estate agents. Considering they can be expected to pay broker commissions upwards of six percent, home sellers expect nothing but the best; as they should.
The pandemic will affect the real estate industry as much as any other industry. Homeowners around the country will soon be faced with many tough choices to decide the direction of possibly their most valued asset. Although every scenario is unique, one thing is true, success leaves clues. In the words of Tony Robbins “If you want to be successful, find someone who has the results you want and copy what they do and you’ll achieve the same results.” Shift, and take action.