3 Keys To Maximize Your Real Estate Returns After Covid-19
Updated: Jun 25, 2020
According to post-COVID-19 reports, real estate in South Africa is definitely bouncing back with renewed vigour.
And these are the 3 tops ways you can profit the most from your real estate investment today:
1. USE PROPTECH TO CUT PROPERTY EXPENSES:
Whether you’re in residential or commercial real estate, embracing technology will help win over buyers, sellers, residents, and tenants. Property technology, or PropTech, has been helping real estate companies gain a competitive edge for years. COVID-19 has accelerated the trend by forcing the real estate industry to upgrade its processes and tools.
In a recent survey whose goal was to provide insights about how consumers want to safely navigate residential real estate transactions during the COVID-19 pandemic, respondents said they weren’t ready to go to an open house yet and listed what conditions it would take for them to feel safe enough to do so again. Like the approval of a COVID-19 vaccine (47%) and assurances from the local health department that touring open houses would be safe (45%).
Therefore, the pandemic has accelerated the digitization of real estate in a big way with agents and brokers turning to technologies to manage the sales process--from conducting virtual property tours to moving legal paperwork to the cloud to close deals remotely.
So strongly consider the value of a virtual tour, and enhance the experience by including a tour of the neighborhood or providing written information about home improvements the seller has made.
2. INCREASE CASH FLOW BY ADDING VALUE TO PROPERTY
With the majority of property buyers still concerned about public health, you can easily increase your cash flow by considering and installing serious health and safety measures. Buyers and sellers see value in precautions, such as providing sanitary wipes, limiting visitors to two to four at a time, providing hand sanitizers, and requiring masks, gloves, and shoe coverings. And these are precautions that will need to remain in place over the long term.
According to Gina Derickson, research director of research firm Engagious, "People want to know that cleaning has taken place before they enter an establishment; they want to see professional cleaners rather than staff (or homeowners) working on high-touch surfaces like doorknobs and elevator buttons; and the right products and right wording are important. People prefer terms like “sanitized” and “disinfected” over “cleaned” on signage."
Also an additional way to easily add value to the transaction is to involve a professional real estate professional or agent in the process.
According to a survey, 54% of buyers say a real estate agent’s guidance is especially valued during the pandemic. What matters the most to buyers and sellers about in-person tours is the real estate agent, who is expected to know and enforce health-related safety rules. Sixty-four percent of buyers and sellers state that agents should understand state and local protocols for COVID-19 safety and provide guidance, and 63% of buyers and 64% of sellers say that if someone in the home is not following health protocols during a visit, they expect the real estate agent to address it.
Helping buyers uncover valuable information about a property, helping them sift through online listings, and providing more in-depth pictures and videos of properties were among the ways agents could be of service to clients. And while 40% of buyers and 52% of sellers stated that they wouldn’t need to meet their real estate agent in person to buy or sell a home, they did place a premium on oral communication—70% of buyers and 66% of sellers said they felt more comfo