As someone who thrives on staying ahead of real estate trends, I can't help but emphasize the importance of exploring every nook and cranny of the market. Brandon Mulrenin and Jared Wright bring to light a fascinating aspect of real estate—absentee owners. These are property owners who don't reside in the homes they own, and their motivations can range from trying their hand at rental properties to market conditions that didn't align with selling.
Brandon Mulrenin boasts nearly two decades of experience in the real estate arena. His wealth of knowledge, coupled with strategic insights, makes him a trusted figure in the industry. Jared Wright, an authority on data-driven insights, complements Brandon's expertise perfectly. Together, they provide actionable advice to real estate agents aiming to tap into the absentee owner market.
For more valuable content, connect with Brandon Mulrenin on LinkedIn and explore their informative videos on YouTube.
Motivations Behind Absentee Ownership: Many homeowners turn into absentee owners due to circumstances like trying out rental properties, unfavorable market conditions, or owing too much or too little on the property. The decision to keep their former homes stems from various factors.
Challenges and Opportunities: Absentee owners often lack awareness of the current value of their property because they don't reside there. This creates a unique opportunity for real estate agents to step in and provide valuable insights, potentially leading to sales or other real estate transactions.
Market Assessment: Jared highlights the significance of knowing the number of absentee owners in your market. By using tools available on their website, agents can easily identify and quantify the potential in their specific marketplace.
Jared Wright: "You can go out and search your marketplace for the zip codes in your area, and identify the absentee owners in your target market."
Q1: Why do homeowners become absentee owners?
A1: Homeowners often become absentee owners due to reasons like exploring rental properties, unfavorable market conditions, or financial considerations.
Q2: What challenges do absentee owners face?
A2: Absentee owners may lack awareness of their property's current value since they don't reside there. This information gap creates an opportunity for real estate agents to offer valuable insights.
Q3: How can I identify absentee owners in my market?
A3: Utilize tools available from The Share Group to search for absentee owners based on zip codes and gain insights into the potential of this market in your area. Use This Link to search Absentee Owners your target market.
Q4: How do I approach absentee owners effectively?
A4: Reach out to absentee owners with personalized information about their property's value and opportunities in the current real estate market.
Q5: What's the benefit of targeting absentee owners?
Less Emotional Attachment: Since absentee owners don't live in the property, they might have a reduced emotional attachment to it. This can make them more open to selling and negotiating, as they might not have the sentimental ties that can sometimes impede the sales process.
Potential for Multiple Properties: Absentee owners who are investors might have multiple properties in their portfolio. This presents an opportunity for agents to not only help them sell one property but also to potentially work with them on selling or buying additional properties.
Higher Conversion Rates: Absentee owners often have a greater urgency to sell, especially if the property is vacant or not generating rental income. This urgency can lead to faster decision-making and shorter sales cycles, increasing the agent's conversion rates.
Investment Opportunities: Some absentee owners might be interested in reinvesting the proceeds from their property sale into another real estate venture. Real estate agents can position themselves as experts who can guide these owners toward suitable investment opportunities.
Reduced Competition: Absentee owners might not be as commonly targeted by other real estate agents, giving you a competitive edge. With less competition, you have a better chance of building meaningful connections and securing listings.
Networking Opportunities: Prospecting absentee owners can expand your professional network. These owners might have contacts in the real estate industry, such as property managers, contractors, or other investors, which could lead to additional referrals.
Market Insights: Working with absentee owners can provide real estate agents with valuable insights into the rental and investment property market. This knowledge can be used to better advise other clients, enhancing your reputation as an informed and trustworthy agent.
Long-Distance Sales: Absentee owners might reside in a different city, state, or even country. Handling long-distance sales showcases your ability to manage complex transactions and can help you establish a reputation for seamless remote property sales.
Portfolio Diversification: Focusing on absentee owners as a lead source diversifies your client base. This diversity can provide stability during market fluctuations and economic uncertainties.
Brandon Mulrenin: A lot of people that own these properties, to your point, had them for whatever reason, didn't decide to sell them. Most of the reason why, in my experience, Jared, in almost 20 years in selling real estate has been because when they bought their new home, which to your point, is not where their absentee owner home is-
Jared Wright: Right.
Brandon Mulrenin: ... when they did that, it didn't make sense to sell the house. They wanted to try their hand at a rental property.
Jared Wright: Sure.
Brandon Mulrenin: The market wasn't good for a variety of different reasons. They owe too much. They owe too little. Interest rate was high. Interest rate was low. They decided to keep it but yeah, value number one is they typically don't live where they own their-
Jared Wright: The property.
Brandon Mulrenin: ... rental property, and so therefore, they don't know what the value is.
Jared Wright: Yep. One thing that we come across every single day when we talk about the value of the absentee owner is how many there are in your marketplace. I mean, it's amazing to see the total number of “non-owner occupied homeowners.”
Brandon Mulrenin: Yeah. It's crazy. You have on your website now, agents can go on there and just look at their market and say, “Hey, how many do I have?”, right?
Jared Wright: Yeah, no, absolutely. You can go out and search your marketplace for the zip codes in your area, and identify the absentee owners in your, yeah, your segment.