Powering through Real Estate Challenges with the Power of One
Mike Moran - May 11 2022Mobility professionals gather to explore the changes, challenges, and secrets to succeeding in real estate’s perfect storm
Understanding how Real Estate market trends are changing the game within the relocation industry has become one of the most important factors to consider when talking about global mobility. That level of understanding can only come from fresh intelligence based on the latest data from diverse sources. That quantitative insight needs to be complemented by a front-line narrative that draws from the expertise of professionals in real estate, finance, destination services, and temporary housing.
If that sounds like a lot to digest, have no fear; Kathy Connelly, Gary Carmel, Jennipher Christensen, and Tracy Hayes are prepared to deliver it all in a fast-paced hour on Tuesday, May 19th as part of the Worldwide ERC® Spring Virtual Conference. Panelists will use intuitive graphics to power through the latest reports on pricing, inventory, market demand, and supply chain.
The Situtation
Pending sales are down, and prices continue to rise even as mortgage rates now rise alongside them beyond anyone’s expectations. There are just two months of inventory and home prices have increased 15% year-over-year after 121 consecutive months of increase. “At this point, there are more licensed realtors than there are units for sale,” says Kathy Connelly, Senior Vice President, Corporate Services Berkshire Hathaway HomeServices, Georgia Properties.
Be forewarned, this is a dark and scary ride at the outset, but it emerges with some powerful tactics and strategies to continue delivering great customer experience. “There is a lot in here that will help mobility professionals inform corporate clients about what to expect and how to adapt to make the best of a challenging environment,” says Connelly. “We have to prepare every mobility professional to set expectations. Clients, transferees, and RMCs all need to understand the realities of house hunting in 2022.”
“Everyone should understand that it takes on average three offers before a buyer has a bid accepted,” Connelly says “and that third bid can reflect the hard lessons learned in earlier failed bids. Finding the right home may require several house-hunting trips.” says Connelly.
Connelly pivots from the data briefing to relate front-line experiences in which buyers are covering sellers’ taxes and moving expenses, and sellers require the property to be rented back to them while they in turn look for a new home. “In some deals, if the seller is unable to find their next home in a defined period of time, they would be released from the contract,” says Connelly. “It’s extreme, but it’s happening.” Each panelist relates the transferees’ experience from their own direct experience serving them.
Winning the Bidding War
The session also focuses on strategies and solutions to make transferees more effective in their home search. “One simple element of a winning bid is coming to the table pre-approved for a mortgage—not just pre-qualified—so that there are fewer contingencies making it more attractive to sellers’” says Connelly. “In some situations, buyers are also retaining 3rd party vendors to essentially convert their bid to a cash offer for a small percentage of the sale price, making the bid more attractive to sellers. This may become a more common tool once it is better known,” says Connelly.
Many of these tactics and strategies involved are informed as much by seller psychology as they are by available financial instruments. There are many approaches that are tailored to very specific situations according to buyer capabilities and seller profiles.
The Power of One
For those attending The Game Changer: How the Real Estate Market is Impacting Global Mobility at 12:15 PM ET on Thursday, May 19th the key value will be the fact that the briefing is being led by mobility professionals from different verticals on stage at the same time. Where the strength of the Industry Vertical panel discussions on May 17th is to provide a depth of information in seven distinct sectors, the afternoon panel sessions on the 19th will provide a systems perspective where interconnected disciplines collaborate to provide a continuum of service.
“For me, it’s about awareness,” says Connelly. “The more we have a shared understanding of a problem, the more ideas we are going to collectively generate ideas to solve it. At the end of the day, we are all serving the same customer—the transferee. We all deliver different elements of that journey, but we have the same end goal—great customer experience.”
Ultimately that is the value of membership; the talents of many, and the power of one.
For more information on the Spring Virtual Conference, click here. Registration is just $150 for the two-day event, and attendees can earn up to 24 total continuing education units for (S)GMS®/(S)GMS-T® and (S)CRP® recertifications through viewing the live and recorded sessions.