Most local real estate companies focus on working with buyers and sellers in a specific regional area. And regions around the country differ in many ways, from their economic profiles to the activities people enjoy. Local real estate companies benefit from analyzing neighborhood trends and meeting the needs of their target market.
Understand the Demographics
Selling real estate involves research. The demographics of the area help define its buyers, sellers, and renters. The United States Census Bureau provides accurate data about people, economy, and business. The National Association of REALTORS® (NAR) further defines this data as it pertains to the real estate market. For example, if the area has a rising unemployment rate, people may want to sell their homes and rent the property instead. And when employment opportunities increase in the neighborhood, more people want to buy homes. Consider the types of job openings and the median salaries to determine if you are showing affordable condos or luxury corporate homes.
Outstanding Public Schools
Keep track of the rankings and progress of the local public schools. The National Center for Education Statistics provides recent data about neighborhood school districts. And sites such as Niche offer parent and student ratings of area schools. When the scores of local schools improve, people want to move into the neighborhood. Be prepared to show homes for sale and rent that appeal to families with children. Showcase other local amenities families appreciate, such as playgrounds and the best regional parks.
New Commercial Opportunities
NAR also issues the Commercial Real Estate Alert to announce trends in sustainable building features that appeal to investors or tenants and various demographics. These trends based on national data also reveal factors that can eventually ripple into the local markets. Gather more statistics about employment and business growth from the Department of Labor. Become an active member of community organizations and civic associations. Learn about local businesses, the employment sectors in the area, and what these companies want in real estate and personnel. Help them find the ideal commercial facilities. And attract key people to their industries by defining the target market and encouraging them to buy homes in the area.
When a new corporation moves into the neighborhood, people and jobs tend to come with it. Essential talent may get transferred from a previous location to the new one. These people need housing. REALTORS® who read the business news know when companies are relocating. Smart real estate agents start marketing homes to these potential buyers months before the move occurs. Nobody wants to rush into a new house, and well-prepared
REALTORS® can corner this target market. And some corporations are willing to pay for relocation costs and housing. As a result, corporate home seekers might have a generous budget to find a local house.
Vacation Hot Spot
Vacation homes are another viable opportunity for real estate agents. From rolling golf greens to sandy beaches, local amenities attract travelers. And real estate professionals help drive more tourism to areas by marketing vacation homes for sale and rent. Consider whether the tourism is year-round or seasonal. Market properties ahead of the season and create a sense of urgency. FOMO (fear of missing out) drives this type of luxury spending.
Recreational and Cultural Activities
With tourism in mind, neighborhoods might have unique recreational opportunities people won’t find everywhere else. Experience the local hot spots firsthand. Get to know what people enjoy most in the community. Then sell houses that focus on owning property where buyers can appreciate these activities all the time. Examples include a home on a golf course, a cottage by the beach, and a condo in the center of an artistic or historical zone in the city. Focus on how property owners in the area are within walking distance to their favorite pastimes.
Factors That Drive Sellers
Neighborhood trends also include factors that drive people to sell their homes. A large older population might be ready to relocate and retire. Or the rising cost of living in the area may cause people to sell their homes to seek more affordable housing. And negative factors, such as rising crime or increasing taxes, influence people to sell their houses. All of these sellers have potential buyers who want these types of homes. Young couples are eager to buy fixer-uppers from seniors. Increasing taxes can indicate growing commerce, which attracts buyers who want to live closer to their jobs. And buyers on a budget want homes in neighborhoods they can help rebuild and revive. Look for these opportunities when examining local demographics and trends.
Successful local real estate companies deeply integrate themselves into the neighborhood. These REALTORS® become go-to resources for information about the region. From hot spots and events to homes and business opportunities, real estate agents need to have their finger on the pulse of what’s happening right now. Being in touch with the local trends creates opportunities to build a real estate business and become a pillar of the community.