Hello Corrente Crew! Welcome back to our Setting Expectations series. This month, Tino, our founder, is back with Matthew Fusco, Partner at Marchese Fusco Real Estate and Sales Representative with Century 21 Leading Edge Realty, to discuss expectations and budgeting in the real estate and construction industries. Keep reading to learn more about the current state of the market from a professional point of view.Tino: Hi Matthew - welcome back! Let's chat Setting Expectations again and dive deeper into how people can prepare to buy or sell in today's real estate market. What are the expectations of most clients?
Matthew: Hi Tino! Let's get right into it. The market shifted really quick to a sellers market. Sellers are expecting top dollar with the least amount of contingencies or conditions on offers from any interested party. Buyers have had to shift and change the offers they’re presenting because they no longer have the leverage to negotiate. The simple requests for a home inspection or financing condition are essentially non-existent at an offer presentation. Sellers are expecting purchasers to have their pre-approvals complete well in advance to presenting any sort of offer. Some buyers have gone as far as to bring a home inspector to their showings, to get ahead of their competition while also doing their homework.
Tino: What information can people prepare that you find the most helpful to know as their agent?
Matthew: We created a signature process to help the families we work with get to the point of being fully prepared. We understand how busy life can get, so we designed a ‘hands-on’ process to get to their desired destination. I find that 95% of home buyers have an idea of what they’re looking for, but having a conversation about it usually brings forward some of the blind spots that they weren’t aware they needed (e.g. private double driveaway vs. single). What’s common is that most partners generally think they’re on the same page for what they want in their next home. But differences do arise, which is 100% normal. Our goal is to sort through these and help the family get aligned before we go shopping. A pre-approval will give your family an idea of what the bank would be willing to lend you for your next home purchase.
Tino: This is similar to what we go through with our clients when we speak with a family before building a house. It’s so important to understand what a family needs, whether or not they see it, before we proceed with those details. There’s a huge commonality between real estate shopping and our services, and ultimately, the most important thing is adjusting and planning based on what a family really needs and can afford.
Matt: I agree 100%.
Tino: How do you approach what we call the “HGTV budget", where people have this expectation of a budget that is far less than what a safe and good quality renovation or build may cost? How can we put it out there and communicate proper knowledge and education about understanding true renovation budget, contingencies, and changing markets?
Matt: To answer the first part of your question in regards to how people can achieve a realistic budget and expectations. It’s our responsibility as leaders in our industry to explore all the possible options and potential outcomes with the families we work with. Whether buying or selling real estate or a renovation. What I know to be true is that not every family is the same. Some families are okay with getting less because they are spending less. These folks are usually focused on what it's going to cost them vs. the service that will be provided. Whereas, you have others who are expecting a high level of service or product, and are prepared to pay the price for it. I think it comes down to understanding your client and being able to communicate with them.
To answer the second part of your question on how to educate and communicate effectively, it comes down to relatability and simplified knowledge. This is the basis of why we offer free value to our clients. Three years down the road, you know that these families will still be ecstatic about their decision, and that's everything to us.
We’ve found that the best way to educate our following is to give them real life scenarios that come up with other families. Many scenarios happen more than once on the job. It's all about perspective. Our following loves to engage with this info because they feel like they just found a solution to a potential future blind spot. Real life case studies are a big hit on social media!
Tino: That’s what we’re looking to do with these blog posts and series. To help educate our clients and beyond to help people feel prepared and educated when stepping into the housing market or showing interest in renovations. It's okay to ask questions, it’s okay not to know. An ethical real estate broker and contractor will not take advantage of you - we’re here to give you our professional opinion. There’s a stigma that people won’t open up or tell us a proper budget because they’re scared of maxing it out of being taken advantage of. We’re completely transparent and will give you what you want and need. We want to honestly tell you whether or not you can actually afford what you’re looking for and how we can make it happen. We want to put it out there that you can trust us and our group. Everyone wants to invest and become a builder, but not everyone should take on the building part.
Matt: Definitely! Having the right people around you is extremely important! Especially in the renovation business where they’ll give you real costs to conduct an improvement.
Tino: That's what we're here for. Thank you for joining us again, Matthew - we sincerely appreciate your insight and openness. We hope to have you back for future conversations about the industry and wish you all the best.Thank YOU for being part of our discussion and we hope that these conversations are insightful. Let us know what you would like to see next, or where you are in the process of changing, buying, or selling your home. We’re here to help you by providing resources to educate you on today’s market, and we are also available at any point in time for a one-on-one consultation or conversation if you need any other insight.
Leave your questions below, or feel free to reach out to our team here and speak to a member of the Crew. We are here for you and hope you stay safe!