- Episode 31 -
This year marks the first wave of nearly 7.3 million homeowners who are “bouncing back” after losing their homes to foreclosure or short sale during the housing crisis. According to the January 26th article on Realty Trac, most of these potential “boomerang buyers” have worked over the course of the last seven years to repair their credit and get themselves back in a position to once again purchase a home. This influx of buyers to the market is said to last for the next 8 years corresponding to the eight years of historical short sale and foreclosure activity from 2007 to 2014.
Markets that were hit the hardest during the housing debacle are the areas most likely to see this flow of buyers materialize throughout the next few years. Realty Trac reported these markets have populations of at least 250,000 and are in some of the largest metropolitan areas throughout the country. The locations were high in housing units lost to foreclosures over the years but have current home prices that are still affordable for median income earners.
Going into your archives for those sellers who you helped with their short sales or foreclosures should be your starting point to making contact. Hopefully you have kept up with them over the years, but if not, now is a good time to reach out and remind them that you are still a Realtor. Find out where they are with their credit repair and get their thoughts on getting back into homeownership.
While these buyers are primarily the Generation Xers or Baby Boomers, perhaps their needs have changed over the years when it comes to housing. A lot of these Boomers are now empty nesters so getting something smaller, or on one level, in perhaps a 55+ community should be the key points to your marketing strategy. Maybe they have adult children that have moved back home so finding a property with separate living quarters might be a match. Perhaps even moving out of the area to where the grandchildren are now living will be motivation enough to help them with a referral in a new location.
This niche market is predicted to be the “next great thing” in real estate, so getting ready for it now should be on the top of your to do list. With a steady flow over the next 8 years these potential buyers aren’t dwelling on their past issues but are looking forward to getting back to owning their own homes – and helping them get there can be very rewarding for you.
This next chapter in the real estate play book is not one to be missed.
Kay Conageski is a professional Realtor® with The Keyes Company based in Plantation, Florida. Check out her RESAAS profile ›