We’ve been talking for some time about getting your feet wet on TikTok, but we forgot to warn you that it’s also a flaming dumpster fire with endless misinformation that can be wildly frustrating.
It is hard to hold your tongue when you see a 22 year old screaming that distressed sales are at an all time high and flipping is just a coat of paint and then bags of money. It’s especially hard to hold your tongue when you can tell they still live at home and you know that distressed sales are rare these days.
Dr. Jessica Lautz, VP of Demographics and Behavioral Insights at the National Association of Realtors (NAR) has seen the same thing, expressing that she too is frustrated by all of the misinformation, particularly on TikTok and Instagram.
Only “one percent of sales are distressed,” she emphasized at the recent NAR Forecast Summit. Our eyes rolled into the backs of our heads, too.
It’s for this reason that knowing current data both locally and nationally give you an advantage in the marketplace of information.
Dr. Lautz points out that there are four trends right now that are touchpoint opportunities for Realtors in the field:
1. Virtual purchases
Dr. Lautz reports that with 12% of buyers purchasing virtually. For real estate practitioners, this means listings without virtual tours are at a disadvantage.
And speaking of TikTok, doing quick walk through videos highlighting a listing’s feature can reach those one in ten buyers who will close before ever setting foot on the property.
2. Remote work
Remote work continues to influence the trends, says Dr. Lautz. There is still a lot of opportunity in both listing properties of folks leaving your town and aiding buyers that are moving to your area.
Marketing to both segments is still relevant as migration trends continue to pepper Americans into different parts of the nation.
3. Revisiting the shutouts
Nationally, the average number of offers on a listing was 5.5, but that has already fallen to 3.4, and the levels of buyers waiving contingency to be the most attractive offer is also declining.
When 5.5 offers are on the table, competing against institutional all-cash investors who can afford to waive contingency and overbid, Dr. Lautz notes that buyers with FHA loans or reasonable finances couldn’t compete.
She noted that half of all Realtors have worked with clients who were shut out during this process. This is another opportunity, as these are people that should be revisited as the market eases.
Another area where you can clear up misinformation (especially through social media, hint hint) is that 35% of consumers think that the required downpayment is 16-20%, when that’s not true, per NAR – putting out correct information makes you the worthy resource.
4. Energy costs are rising
You already know that Millennials and Gen Z place a higher priority on green features and energy efficiencies in homes, for ethical and financial reasons.
Yet, the typical home purchased is 29 years old, filled with inefficiencies. Dr. Lautz points out the opportunity in this disparity.
She rightfully points out that it’s worth reaching out to these people you’ve sold homes to and find out what remodeling they’ve done.
Or if they’re thinking of remodeling, she notes it’s an opportunity to be a resource – offer them information for the contractors you trust, especially as supplies begin to reenter the market.
And another touch point is when you come across an article pointing out rising energy rates, use it in your drip marketing campaigns to note some energy efficient listings currently available.
As markets shift, it is important to look critically at trends and see where the opportunities are. Just as Dr. Lautz has already done for you.