Family Ties Are Drawing Homebuyers Back to Rural Southern Illinois

In the part of southern Illinois that runs through Randolph and Perry counties toward the Missouri line, the housing market operates at a scale most metro buyers would not recognize. The area has little commercial property and few businesses, according to Nona Shaw, an agent with Tri County Realty, and the market is thin enough that no single zip code can sustain an agent’s business. “I laugh when people ask me what zip code I’d like to advertise in,” Shaw says. “One zip code would not be a business for someone in this area.” For many of the buyers Shaw works with, the reason to come is family.

Returnees Follow Their Grandchildren

The clearest example of family-driven demand is buyers coming home after decades away. Shaw has recently worked with buyers moving back from Colorado, Montana, Florida, Texas, and Washington State, many of them retirees. The majority of what draws them back, she says, is family – specifically grandchildren, who are often attending the same school system their grandparents did.

“People who grew up there, they want to come back, and they want to live close to their grandchildren,” Shaw says.

Family Figures Into First-Time Purchases

Shaw’s practice centers on first-time buyers, and family figures into their decisions as well. She recently helped a friend’s son find a home in a neighboring county – close enough to his job to cut the drive, but not so close that he lost easy access to home.

Another recent client had a girlfriend in the area and the ability to work, but not enough savings for a down payment. Shaw connected him with a local lender offering a construction-type loan. An appraiser valued the house, the buyer estimated what repairs would cost, and the resulting appraisal gave him enough to put down. It was the first such loan Shaw had worked with. “There’s so many young people that that’s what they want,” she says.

Older Homes Reach a Mixed Buyer Pool

Much of what these buyers encounter is older housing, and many homes reach the market as estate sales. Shaw recently showed a house that three siblings inherited after their parent’s death. It has a usable but dated kitchen, a bathroom that needs updating, and a half-acre lot inside town – a large parcel for an in-town property. “It had good bones,” she says. “It was built when building a house with good construction was important.” A house like that could suit an owner willing to renovate or a buyer planning to update and resell.

Smaller homes draw a different set of buyers. Shaw recently listed a two-bedroom, one-bath house, a layout that is usually harder to sell in an area with so many families with children. It had a new roof and was priced slightly under market value, and most of the people who came to see it were downsizing. The house drew four offers the first time it was listed. When that buyer’s deal fell through over an inspection disagreement, it drew three more within 48 hours of relisting, and it is now under contract again.

Investors Are Active Too

Alongside buyers drawn by family, investors are buying in the area as well. A triplex recently sold to an out-of-area investor represented by another local agent. Shaw sold a house that had been converted into two apartments, each with at least two bedrooms, to a buyer who rents out property. The house needed TLC when he bought it, and he had it rented soon after. She has also seen buyers renovate a house sitting on more acreage than it needed, then split off the extra land for another project.

Her advice to investors comes down to honest renovation math and location. They should avoid properties that need so much work that the investment can’t be recovered. “Looking at the property very honestly about what needs to be done, and location – obviously with real estate, location makes a whole lot of difference,” she says.

Rates Have Not Stalled the Market

Interest rates are not keeping buyers out, according to Shaw. “I don’t think people are letting the interest stand in their way if they can get something,” she says. She points to a recent client, a young woman who could buy at a good level for the area. She took her time, watched how she would invest her money, and bought when she was ready.

Shaw also rejects the idea that the local market has stalled. “People say it doesn’t seem like the market’s moving,” she says. “That is not true. Not for where I’m at.” Pricing decides how fast a home sells. Homes priced well don’t stay on the market long, and homes listed well above market value sit long enough that buyers start to assume something is wrong. “There wasn’t anything wrong with it in the first place,” Shaw says. “It was put on the market too hot.”

About the Expert: Nona Shaw is an agent with Tri County Realty, covering Randolph and Perry counties in southern Illinois.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.