A Realtor’s Perspective on Politics Influencing the Real Estate Market

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You wouldn’t think that politics could have any effect on the real estate market. After all, people still need to live somewhere, regardless of who is running the country. But the truth is that politics are a major influencing factor in all business areas, real estate in particular. In the following lines, we will discuss some of the challenges that this market deals with in different political situations, and what agents can do to maintain their business afloat even during hard political times.

1. Direct effects of politics in real estate

Political uncertainty can cause chaotic changes in the market. Sadly, these situations are hard to predict and even harder to control. A relevant example on this matter is the current situation in the UK where the political uncertainty has brought the market to its 2011 condition. The prices are severally dropping in London and South-East England, due to the latest state matters which have brought about low stock numbers, economical unbalances caused by the aftermath of the tax changes, and numerous other challenges. These are hard times for the London realtors who are forced to bring their real estate scripts to the next level if they hope to survive in these difficult situations. After all, the scripts are an agent’s best weapons, and if they are good enough, they can inspire confidence even in the toughest times.

2. Subtle effects that the market deals with regularly

The average Joe may not be aware of the many ways in which politics affect the property market, but a good realtor should always be up to date with the latest political news, in order to be able to anticipate changes in the property market. For example, how the government budgets are spent will dictate future changes in the economy. Big investments in infrastructure and constructions are always good news for realtors, whereas when these two areas are not prioritized, you can expect less business in the following years. After all, nobody is going to build new properties in areas with poor infrastructures, and cumbersome construction regulations can also hinder the growth of the real estate market.

3. What can agents do in difficult political times?

As we said, it is important for agents and realtors to keep in touch with the latest political games, to be able to anticipate changes in the market. Moreover, you should always adapt your real estate scripts to the current political climate. Buyers are a lot more informed than you suspect and they will trust you a lot more if you know what you are talking about. When times get really tough, you can also consider attending some real estate coaching sessions, where you will be able to learn new tricks from the industry’s best players. After all, these people are experts and over the years, they have seen the market rise and fall many times.