Homes are seemingly being sold at a record pace as homebuyers aim to capitalize on the opportunity of low mortgage rates and the current demand for properties that are spiraling out of control. As a result, many real estate investors are snatching up homes as fast as possible to make do of the opportunity provided on their end, creating the unprecedented hectic housing market we can clearly observe unfolding today.
However, one glaring issue that’s been surfacing amid the market volatility is the emerging norm of real estate investors growing lax with their lead generation strategies due to the fact that they don’t have to put much effort as various bids and offers come barrelling down once a property gets listed. But, this untoward negligence could turn to cause significant challenges on the road ahead, as price correction besets the marketplace and global economic recovery starts to pick up the pace once more.
Current Demand Is Unsustainable
There’s no denying that current demand for homes big and small has played to the advantage of real estate investors seeing as to how they can liquidate and reinvest their capital in rapid succession. However, the current demand reflected in the housing market is very unsustainable for three specific reasons, namely, (1) the surging home prices, (2) the record-low mortgage rates, and (3) the current state of housing supply.
- Surging Home Prices: Although surging home prices might seem like a saving grace for real estate investors that want to maximize their profit margins, our current position has gone past the point of no return in the sense that some properties are largely overvalued. As a result, much of the price that’s reflected is no longer from appreciation, location, and value alone but is significantly swung in favor due to the interplay of high demand and low supply.
- Mortgage Rates: Fixed low mortgage rates are excellent buying opportunities for both new homeowners and real estate investors alike; however, these rates are not meant to last forever and will soon see major corrections and upticks as the economy recovers. And when these timely changes do occur, it will evidently offset the incentives for buying a home and will undoubtedly cool down demand.
- Housing Supply: While it might be a long period of time before housing supply can catch up to current levels of demand and create a substantial amount of wiggle room for housing developments to dial back some operations, it’s an inevitable shift that will change the overall market outlook. Therefore, with more listings available and a larger pool of homes to select from, expect the number of offers you receive in comparison today will drop notably.
Safeguard With Sustainable Lead Generation
Given all those reasons mentioned above, real estate investors cannot afford to be lax with lead generation because establishing a sustainable strategy ASAP will safeguard you from unexpected and disruptive shifts that are bound to occur in the near future. And to help accomplish that goal, we’ve listed down our three most helpful and reliable methods of creating a sustainable lead generation framework.
#1 Expand Your Real Estate Team
Firstly, you must expand your real estate team to match and pivot with the changing norms of remote work and flexible schedules. Since talent and training can be seamlessly done and operated through online platforms, you can easily outsource non-core administrative work and expand your reach through different agents. And, in doing so, you can efficiently market more properties and land for sale at half the turnover times and with more warm leads.
#2 Seek Strategic Partnerships That Offer Referrals
Secondly, it is in your best interests to seek strategic partnerships with relevant services that you can co-sign a referral program with so that both businesses can generate leads for each other. For example, since both lenders and real estate attorneys play an important role in guaranteeing to finance for homes and providing legal counsel, you will most often be working with the same clients. Therefore, instead of passing them around, streamlining the process by working with each other.
#3 Utilize Online Marketing And Content Creation
Lastly, with most home-viewing and property hunting now done online, especially with the global pandemic, you will want to utilize online marketing and content creation to its fullest to catch the attention of leads no matter the time of day. From virtual house tours to establishing a social media profile dedicate to your location, there’s a myriad of ways to market your properties more efficiently and secure a sustainable source of leads.
Returning Economic Confidence And Overall Recovery
Overall, given that the economy is set to see another boom, the returning economic confidence and global recovery should be reasons enough to drive the importance of sustainable lead generation in the real estate market. Therefore, we strongly recommend real estate investors implement the steps mentioned above and tailor them to fit their personal situation best.