Feature Article 61 - Should you keep your first home as an investment property?
When I was actively selling real estate from 2007 - 2019, I worked in an area (the northern suburbs of Wellington, NZ) that was, and is, popular with first home buyers. That meant that when it came to appraisals, most of my potential vendors were first time sellers.
Based on this, I developed a listing strategy that separated me from other agents in my market.
Whenever a first-time seller invited me round to do an appraisal, I would ask them if they had considered keeping their home as a rental? If they hadn't, I would suggest they talk to a mortgage broker to at least understand if it was an option. Why not have all the information at your disposal? Wouldn't it be cool if you could keep it?
Imagine what this is like as an owner - you have asked a commission-hungry real estate salesperson over to your home and instead of hounding you to sell, they are trying to help you keep your existing home as an investment?
The power of this approach is hard to overstate. It was a way to build instant trust with my clients. From that point on, they saw me as a trusted adviser, rather than a salesperson.
As a result of this strategy, a few owners ended up keeping their first homes as a rental. So I potentially missed out on a few commissions there, but overall, the vast majority of owners in that situation still decided to go ahead and sell. I'm confident my initial approach of 'always do what's best for your client' put me in the box seat to win those listings.
You have to consider the long term payoff here too. While I might have occasionally talked myself out of a listing, those owners became advocates for me in my local area. I provided them with a talking point to explain to their friends and family why I was different from other agents.
This isn't rocket science of course, and many of you probably do this already. If so, congratulations! It's another example of how taking a long term approach to real estate is a great way to build a consistent, successful business.
Have an epic week!
PS. Get in touch if you have feedback, questions or suggestions :)
Should you keep your first home as an investment property?
One of the questions potential first-time sellers face is whether or not they should keep their existing property as a rental when they move up to a bigger home.
In this guide, we'll talk through the pros and cons and suggest some questions to consider if you find yourself in this position.