What do Rising Home Prices Mean for Real Estate Agents?
The Southern Nevada housing market is so hot that it’s smoking, and with good reason. Mortgage rates are hovering near rock bottom, so people can lock in those low monthly payments, stretch their budgets, and increase their ability to get into their dream homes. The coronavirus pandemic has also impacted home buying and selling across the nation.
Many people are choosing to move out of big cities and into more rural areas. They’re working from home in greater numbers than ever before—and even with many businesses instituting a return to the office, it’s increasingly common for workers to look for homes with home offices and push for hybrid employment. Not only that, with so many people spending so much time at home in the wake of the pandemic, they’ve had time to realize what they want most out of their home environments—and they’re motivated to make those purchases.
Demand is high. Supply is comparatively low. And for real estate agents—or aspiring real estate agents—the hot Southern Nevada housing market is amazing news.
Now is the Ideal Time to Break Into Real Estate
If you’ve considered becoming a real estate agent in the past, but have put it off, now is the perfect time to break in. Southern Nevada is filled with people who are looking for homes, from people interested in finding smaller condos to families who are looking to expand into property with a yard. With such high rates of both availability and need, this is the ideal time to get started as a real estate agent–and you may find yourself quickly picking up as much business as you want.
High Selling Prices Mean High Commissions
One home that listed in 2019 and sold for $305,000 went back on the market in 2021 and quickly sold for $355,000: a more than 15% increase on the initial price of the home. Other homes are selling at similar rates, and for similar prices. For real estate agents and aspiring real estate agents, that means that you can make considerable commissions on the properties you’re interested in selling. They’re also likely to turn around quickly, which makes this the perfect time for many aspiring real estate agents to start generating an income with a new career.
Many First-Time Buyers are Coming to the Market
First-time buyers are more interested in home-buying opportunities than ever before. They’re ready to make a purchase. They know they can get approved, and that their budgets will stretch to accommodate the mortgage they will need for their dream homes. Those first-time buyers, however, may be unsure about the buying process. They may not know how to get approved for a mortgage, how to choose their dream home, or what questions they need to ask before purchasing a property.
That’s where you, as a real estate agent, come in.
First-time homebuyers need a real estate agent to guide them through the process: someone who can answer all of their questions, help them find the ideal property to fit their needs, and even give them a better overview of the attributes they really need in a property. Often, first-time buyers aren’t sure what they really need most in a property. You, as a real estate agent, may have a much better idea of what buyers really need to consider when choosing a property, from proximity to work and school to the features that will make them happiest.
You can also help prevent those buyers from getting discouraged. In Southern Nevada’s hot real estate market, many buyers are quickly getting discouraged and giving up. Homes don’t remain on the market long. Many homes are selling for well above their asking price. As a result, buyers who can’t offer over the asking price or who weren’t the first to put in those critical offers are becoming more discouraged and struggling more to find the home of their dreams. A good real estate agent, however, can stick with them through the process and help prevent them from getting discouraged—not to mention helping them avoid purchases that won’t really fit their needs.
Homes are Selling Fast
Southern Nevada homes are being flooded with offers within days of hitting the market. Many homes, in fact, sell within 24 hours. Bidding wars are common. It’s a seller’s market—and that spells great news for many real estate agents. Quick turnaround can help keep your income flowing steadily during this period. You may find that it takes relatively little effort to sell a property. Staging and curb appeal are still important—after all, that’s what helps push buyers into making an offer on a property—but if you’re just getting started and finding your way, this is the ideal time to try.
The hot Southern Nevada real estate market relies on several key elements: most notably, higher demand than the supply that is available. This particular real estate demand, however, doesn’t seem set to disappear any time soon. Despite low mortgage rates, lenders have tight standards that determine whether interested buyers can pursue the properties of their dreams. The steady stream of people moving into Southern Nevada—most notably people moving out of California, who no longer have to commute into work and are looking for less-expensive housing—seems unlikely to change any time soon. As a result, not only is this an ideal time to break into real estate—or to advance your real estate career—it seems as though this is a trend that will continue for some time to come.
The high demand for homes has also led to a high need for real estate agents, including new agents who have the energy and excitement needed to function within the hot market. Are you interested in starting or advancing your career as a real estate agent? Is this the time for you to go back to school or to start pursuing your real estate certifications? Contact us today to learn more about how we can give you the tools you need to get started.
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