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Photo by Ridrich and Clark Realty.
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Photo by Ridrich and Clark Realty.
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Photo by Parks Realty.
In 2021, realtors continue to walk through a real estate market that looks nothing like what we saw prior to COVID-19’s invasion into our daily lives. Some of the changes include convenient new ways of doing business and houses that come and go as fast as the blooms on a Bradford Pear tree. Heading into this hot Spring 2021 marketplace, here are six things you’ll see us all adapting to.
Relocation Acclimation
While the Greater Nashville area has always seen a steady stream of new people moving to our area, the past twelve months have morphed that stream into a waterfall. Our daily jobs include taking incoming phone calls and answering emails from our potential new neighbors and placing them on the road to Nashville homeownership. New Jersey, New York, Connecticut, Illinois and California are at the top of the list of states people are coming from. It’s clear that the infrastructure and way-of-life in these states are very different from our own. Realtors often find ourselves working not only as salespeople and negotiators but also as cultural guides to a new generation of neighbors that longs for the joys the Nashville lifestyle brings.
Thriving in The Minutia
In 2019, receiving more than one offer on a home wasn’t a shock, but it also wasn’t an everyday occurrence. As Realtors, we abide by a very effective set of guidelines that our Code of Ethics, Tennessee Real Estate Commission laws and multiple listing service rules spell out clearly for us. Navigating a 2021 paradigm of twenty or more offers after a day of thirty-plus showings tests every tool we have in our toolbox. Guiding a buyer to write the very best offer they can and advising a seller to understand their best option is a daily exercise in working in minutia terms. Price is not the only winning proposition. Setting appraisal terms, inspection expectations, occupancy options and funding are just as important in this marketplace.
Professional Stewardship
Now more than ever, consumers need a concierge into our marketplace. I’ve heard a few sellers ask, “Why do I need your help when I have a line of people I know who will buy our home?” This statement is exactly why a seller needs a realtor now more than ever. The open marketplace is a beautiful place. Sellers do not set market prices. Appraisers do not set market prices. Buyers set the market prices. All the minutia terms listed here are part of the marketplace. Realtors navigate this marketplace every day. What happens when a seller receives an offer where it’s clear the home will never appraise for that amount? Are there terms in the contract that protect the seller from having to start this process all over again? What is the protocol when a buyer represents that they have the cash to purchase, yet suddenly a loan comes into play while you’re in escrow? These are just two scenarios out of hundreds that realtors navigate each day.
Sticker Awareness
Prices are changing rapidly. While Nashville, comparatively, is still a market many can afford to buy in, it’s also becoming a market that many cannot afford. Realtors have the responsibility of serving all areas of the marketplace. Housing affordability is being tested like never before. Ten years ago, we could help buyers find a three-bedroom, two-bathroom single-family home in numerous areas under $150,000. In 2021, we’re lucky to find a two-bedroom flat condo for under $200,000. We have to reframe the conversation around affordable and approachable housing for everyone in our community. Subsidized housing and workforce housing both fall under the umbrella of affordable housing. We must have affordable housing for our teachers, firefighters, hospitality workers and the team who keep our city moving. That means we have to have serious discussions about density, infrastructure, and availability of funding programs. The public and the private sectors must partner to create solutions that keep our community income diverse. Realtors are community members who advocate for affordable housing, work to educate policymakers on how decisions impact everyday consumers and roll up our sleeves to help in the trenches of our communities. Making a living is nice, and it goes hand in hand with community care.
Buyer Must-Haves
What buyers are looking for has changed dramatically over the past year. Home is a place of safety and comfort, especially during these unprecedented times. People depend on their homes as their offices, gyms, dog parks, restaurants and social gathering spots. Home office workers are valuing a specific separate space outside of their open floor plan areas where they can leave work. They demand living in areas with strong broadband connectivity. Outdoor spaces where dogs can run, kids can play, and owners can relax are at the top of almost every list. Flexible interior space is a huge asset where someone can have their gym equipment, remote learning classroom, or quiet space away from the chaos of busy households. Homes that clearly model 2021’s homeowner lives are in high demand. New home builders are listening and reacting. We’re seeing amenity-rich neighborhoods come out of the ground as quickly as they can. Inside those neighborhoods, the homes being built mirror today’s market needs. Many out-of-town buyers are also looking for open, large land. Flying into the airport and looking down, you can see that this is scarce, and the old cliché holds true, “You just can’t build more land.”
Inventory Woes
In tandem with buyer must-haves, we’re adjusting to the lack of inventory. We are in the strongest seller’s market many realtors have ever seen. Supply chain issues and shortages have caused huge delays in new construction. Additionally, our hometown residents are less likely to move across town or upsize/downsize right now. That’s not a negative. It’s just a reality. Many sellers ask their realtor, “If I sell, where will I go?” It’s a very valid concern and question. Some think it’s always a realtor’s goal to get you to move; otherwise, we have no job. A great realtor’s job is to listen, adapt, and give options. If a move is right, then we can help you navigate that move. If it’s not right, we can help optimize what you have for your needs right now.
Yes, 2021 is a new place to be a realtor, a consumer and someone who follows the marketplace. It’s more exciting and complex than ever. That complexity makes it more important to have a professional realtor by your side.