Why floor plans are the next big opportunity for real estate agents
Traditionally, floor plans have been a valuable marketing asset. They are appealing to buyers because they enable them to visualize their movement through a house prior to visiting it. In addition, the measurements on the floor plan assist the new owners in determining the size and placement of furniture in each room.
It is therefore not surprising that more than two-thirds of online homebuyers found floor plans "very useful."
However, recent updates from Fannie and Freddie make them even more advantageous because they facilitate faster closings, which benefits all parties involved, including buyers, sellers, agents, mortgage brokers, and other stakeholders. When agents acquire a floor plan proactively, the remote appraisal and mortgage approval process can begin as soon as the seller accepts an offer, thereby saving valuable time.
The floor plan revolution
As the world transitioned to fully digital experiences, sellers and buyers relied on floor plans more heavily than in the past during the pandemic. Once considered a nice finishing touch, floor plans are now an essential marketing tool for agents attempting to reach buyers with limited access to the property.
Due to lockdowns, social distancing, and a shortage of appraisers on the market, many official entities permitted appraisers to complete home evaluations remotely.
Because appraisers are no longer required to conduct a physical inspection of qualifying residential properties and other data, the new requirement includes floor plans that depict gross living area and other standards.
Floor plans are saving transactions
Traditionally, when a seller accepts a buyer's bid, the buyer initiates the loan process with their mortgage provider, which includes sending an appraiser to evaluate the property. Due to the current market and the shortage of appraisers, it may take up to 20 days to receive an appraisal report. This two- to three-week window leaves both parties vulnerable to potential complications.
For sellers, these concerns include:
- Uncertainty regarding the buyer's loan approval if the appraisal is too low.
- Modify the contract if the evaluation is too low.
- If the original buyer is unable to proceed, the seller will lose potential customers.
- Personal setbacks, such as inability to pack or prepare for closing
For purchasers, these concerns include:
- If they are unable to obtain this loan, they will be unable to purchase other homes.
Including floor plans in listing preparation
One of the most effective ways to utilize floor plans as an asset is to incorporate them into the listing preparation procedure. A list of essential items might include the following:
- Obtain agency and execute seller's contract
- Recommend staging and cleaning
- Schedule photography.
- Acquire a floor plan
- Plan a formal inspection.
- Specify asking price
Ensure that your floor plans are created by a reputable company that understands the law, rights, intellectual property, licensing, and other issues. It is the best way to limit your exposure and liability for copyright and licensing violations.
Creating a floor plan prior to the sale gives sellers and their agents a competitive edge in a crowded market.