The COVID-19 pandemic has had dramatic collateral consequences on the global economy, and many Americans are currently very concerned about their financial security.
So why then are home sales in Alaska and elsewhere around the country so strong? Who are these people who are racing to buy? And how can you find them to bolster your business?
Below, we’re going to explain how COVID-19 has affected the Alaska real estate market and what kind of buyers you should be looking for.
Are Potential Buyers Looking for a Bargain?
Yes and no.
While it is true that many buyers are entering the market due to record-low mortgage rates, home sales prices do not seem to be following this trend. In fact, if anything those looking to buy seem more willing to pay extra and use their mortgage “savings” to seek out higher-end homes.
As virtually all realtors here in Alaska can attest, most homes under $500 thousand are receiving multiple offers. Buyers are willing to pay, and they’re willing to compete for a house they want.
Are Potential Buyers in a Rush to Get a Home?
Again, yes and no.
While they absolutely want to take advantage of low interest rates, most buyers right now seem to understand that the inventory level is low and that they will most likely need to submit offers on multiple homes due to the high level of competition.
Obviously, though, every client is different, so it is wise to educate them on the nature of the real estate market right now and explain how they can increase their chance of success in purchasing a home here. Namely:
Get a mortgage pre approval, which will give sellers confidence that they will be able to get a loan, and therefore that the sale will go through successfully.
If they can be flexible about the closing date, let the seller know this. The pandemic has made the logistics of moving more complex, so a flexible closing date is especially helpful to sellers and may encourage them to go with your client over others.
Who Are These Potential Buyers?
Who exactly is buying houses in the middle of a pandemic that has cost tens of millions of people their jobs? Obvious answer: those who haven’t lost their jobs.
Which is true. But clearly it’s a bit more complicated than that.
The pandemic has not only turned people’s finances topsy-turvy, but also how they live and work. Many of those who have been lucky enough to hold onto their jobs were able to do so because they could telecommute.
And it doesn’t seem like that’s going to be changing anytime soon. In fact, many large workplaces have told their employees not to plan on returning to the office until 2021 — if ever.
With so many no longer tethered to a physical location due to work, they’re looking to leave these often more expensive places and go where they want to live.
How Do You Reach People Who Want to Buy Homes During the Pandemic?
One word: online.
This has been increasingly true for a while now, but the pandemic definitely pushed things further in this direction.
With so many people stuck at home either bored or stressed from trying to keep everyone sane in a space that now seems much smaller, online is the place to advertise real estate listings.
Of course, that’s only half the battle. You also have to gear your listings to what those people want.
Right now, for many, that’s space. Escape from the hustle and bustle of big cities. Large outdoor spaces they can use without fear of running into others. Nature. Indoor spaces geared toward things like family game and movie nights, but also working (and learning) from home. Kitchens designed to be used a lot more.
You can do this by highlighting those images in your listings and really showing off those spaces in creative ways. Want help doing just that? Reach out to DMD!