An improving economy and real estate market has spurred consumers’ interests in making a move – and not just across town. U.S. Census data reveal that more people are moving across state lines in the last two years. This means there is a new kind of seller and buyer out there that you may not have worked much with – especially if you’ve started selling real estate in the last five years. And many people who are moving out of state are doing so at their own expense and for their own reasons, rather than as part of a corporate move.

 

To help you navigate this growing market, we tapped ERA brokers for insights for insights on how they work with clients interested in relocation. Here’s what you can do:
1.  Offer potential clients an analysis of their equity to determine if now is a good time to move. As home prices begin to rise, the resulting increase in home equity creates more homeowners who are in a position to make a move to a place with a lower cost of living in order to recoup financial losses sustained during the Great Recession. Even if winds up that now is not the time for them to move, you will offer invaluable advice and establish a connection that could result in business down the line.

2.  Understand your client’s main motivation to move then help them meet their goals. In addition to greater equity and a lower cost of living, people are enticed by better job opportunities, lower home prices, better weather, the opportunity to be closer to family / friends and curiosity about new places.

Motivations also vary by age.
• People in their 20s and early 30s are the most likely to have recently relocated and the most likely to make a major move in the next 1-2 years.
• People in their 30s and 40s are the most likely to relocate to experience a new place.

And by location:
• People in the Northeast and the West are more interested in a lower cost of living. People in the south and Midwest are looking for better job opportunities.
• People in the Northeast and Midwest are more likely to be looking for better weather.
• People from the West are more likely to move because they are curious about new places.

3.  Help buyers understand the neighborhood. When a client is moving to your area, it’s critical to counsel them to prioritize the neighborhood over the home. People tend to fall in love with a home and possibly overlook neighborhood quality. Be sure to discuss a neighborhood’s re-sale history so clients have a clear understanding of the trending ROI on their investment.

4.  Identify the MUST-haves for your clients and connect your clients with their dream home! The main selling points for a relocating buyer are home prices, quality of schools followed by proximity to work and the type of neighborhood. Least important are real estate taxes. When looking at homes, relocating buyers are interested in creature comfort amenities like a fireplace, a pool or custom kitchen.

5.  Connect your relocating clients with affiliated services that can reduce the overall cost of an out of state move. As part of the post-recession “lean and mean” mentality, people are more inclined to embark upon a “self-directed move,” that is a move without the assistance of an employer.

If you’re a broker with ERA Real Estate, consider enrolling your company in the ERA Referral Network, to be eligible to send and receive out of state and international referrals from other Realogy companies.