Why your clients should invest in real estate

Now is a great time to be investing in real estate. But how do you convince your clients of that?

Hudson & Marshall’s Auctioneer and Sales and Marketing Manager Bret Richards has a few suggestions to convince clients that now is the ideal time to invest.

According to Richards, the best way for a Realtor® to encourage a client to begin investing “is to stay on top of the investment opportunities that are coming up in their area, research the various platforms and properties, and become the subject matter expert in their market.”

Once you feel comfortable with what investments are available, there are several ways to share your expertise with your clients. Richards advised hosting an auction-buying seminar for existing clients or potential clients to help them understand differences in the process.

“Agents have been known to create auction packets for their clients that contain MLS, auction-specific, and other pertinent information so that their clients can make educated decisions that result in more confident purchases,” Richards advised.

However, Richards cautions that clients should be made aware that real estate investments typically take more time to be successful, compared to investments like the stock market.

Additionally, make sure your clients have enough cushion in their accounts to absorb day-to-day issues or unforeseen problems that may arise, and encourage them to carry good home warranty policies, said Richards.

Clients also need to aware of seasonal issues such as yard maintenance in spring and summer, leaves in the fall, and frozen pipes in the winter. These are additional responsibilities they may not consider during the initial purchasing process.

“Investing in real estate versus the stock market or other avenues has been debated over the years, but it really comes down to what a person is comfortable with. While real estate may have higher entry costs, it tends to fluctuate a bit less than the stock market,” said Richards.