I SEE DEAD PEOPLE:

James Kunkel
Nov 4 · 4 min read

HOW SMART REAL ESTATE BROKERS AND AGENTS ARE BUCKING THE TRENDS

It will come as no surprise to any real estate broker that they’re facing some staunch competition from wholesalers, investors and now iBuyers. The foreclosure market has dried up, which is a good thing, but inventory is down and prices are up making houses harder and harder to find. Real estate brokers have an army of agents and the licensing that enhances their branding to secure the uber important lead to get the listing. Sure, buyer agents are important but, in this market, with the lack of inventory — sellers reign supreme. Knowing all this; what is the strategy for a broker to secure leads for their army of agents? The answer is simple -dead people.

People die every day with houses. It is a seamless stream of new inventory that doesn’t require development, construction, or permits. The majority of people who have passed away have high equity in their homes. The Baby Boomer (1946–1964) generation is now in their seventies and is the all-time highest population of generation’s to-date. Their parents who are now in their eighties, the Silent Generation (1925–1945), are not far behind. Let’s face it, we are all mortal and check any county in the country’s death roll and you will find the majority are in these two generations and many of them own their homes ‘free & clear’, or with a great deal of equity. Only a small percentage of senior citizens have converted to the new wave of reverse mortgages.

As a result, we are seeing the greatest transference of property wealth in our nation’s history, and ninety percent of those who have experienced the death of a relative that owns their house are highly motivated to sell the property, not move into the house as it is highly likely that they have moved away and have houses and families of their own. Those heirs need help and who better than a Realtor? It is critical in this distressed market to reach the inherited relative with the velocity faster than your competition.

On average, over 250,000 people die every month in the United States; a little over half of which own real estate (approximately 53%), leaving up to $33 Billion in property value. With over 3,300 counties (where death records are recorded and maintained), the annual numbers become staggering; but, smart brokers are finding ways to get to the inherited family members first.

When people think of dead people or inheritance, they immediately think: Probate. This is not probate. One can take the risk and see if the house will enter Probate 7–12 months down the road; but, by that time, one of the predatory investors or wholesalers will have discovered the property and made their first moves. But depending on your region, 60–70 percent of the deceased owner properties don’t have to go through probate; and, one-third of the properties are waiting to be listed and sold. Researching death records is a laborious task and not something that real estate agents will see the cost benefit for the amount of time required when they have to maintain their present listings. Cross-referencing the death records with property-ownership and finding the heirs takes a considerable amount of time and knowledge of record gathering resources to complete. But even if you find the record, what do you really want? That would be who’s next in line to the deceased as heir of the property; and secondly their endorsement to get the listing and sale.

Previously companies such as LexisNexis, or a plethora of online companies that conduct property reviews only capture properties that enter Probate. A company called inheritedhomedata.com has developed and is now marketing a specific list by selection of counties throughout the United States with up to date deceased property owners and their heirs for a single time purchase or re-occurring list specifically for Real Estate Professionals. As deaths occur regularly where new names, properties and heirs appear; real estate brokers that purchase these lists in their respective areas and distribute to their agents are arming themselves with leads and information that if properly harvested can create a listing for an eventual sale.

HOW SMART REAL ESTATE BROKERS ARE BUCKING THE TRENDS

James Kunkel

Written by

Real Estate Attorney, Practice Areas of Wills & Estates, Trust, Property Distribution, Probate.

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