Rural Solutions For Urban Brokers

 

 

Although some of what Realtor .com publishes is slanted to favor agents and purchases, I see a lot that a broker or investor can take away from the below linked article. Rural real estate can be more attractive to some these days, but it is not because of market conditions. Brokers and investors can gain from a better understanding of the needs and wants of specific buyers.

Even with an increase in the number of employees returning to the office, the number of people working most or all of the time from home continues to be far above what it was prior to the events of 2020. Meanwhile, many rural properties are in municipalities which are significantly smaller in population than the big cities and medium sized markets. One consequence is that owners face much lower property taxes, often by several thousand dollars per year. 

The result could allow a potential buyer relocating to either save thousands of dollars to own a similar property or be able to afford more space and improved amenities. Suppose living in a 3-bedroom 2-bath ranch home in a small rural community costs $7,200 per year less in property taxes than the “same” house in a big city. The result is saving $600 per month. If you factor in extra driving to “the city” or a train station at two “extra” tanks of gas per month, it could make the savings $500 per month. 

If you or your potential seller does not need to commute and/or need a specific school district, and works from home, a situation like the one in the previous paragraph could be a win for a broker or investor. If you represent the owner of a rural property that does not “need” to stay in place, you might be able to create a scenario in which they can sell and downsize or relocate to their advantage.Some people might be willing to drive 80 miles a day to and from work “if it saves us $500 per month”. 

We are all seeing more situations in which sellers and buyers are more heavily influenced by the situation they are exiting than the one they are relocating to. Others see the benefits of “switching” amenities. If you are not seeing potential opportunities for transactions, you need a research person or team to monitor for you. My team and I can help you to be “first in” for creating more transactions within the next few months!

 

https://www.realtor.com/news/trends/home-prices-surge-rural-counties-midwest-south/