The End of the 6% REALTOR Commission – What does this mean for Real Estate Agents

In a landmark decision that has sent shockwaves through the real estate industry, the National Association of Realtors (NAR) has announced the elimination of the standard 6% commission for real estate agents. This move marks a significant departure from long-standing industry norms and is set to reshape the competitive landscape for real estate professionals in the United States.

Understanding the Change

Historically, real estate agents have relied on a commission-based model, typically earning 6% of the sale price of a home. This commission is usually split between the buyer’s and seller’s agents. However, with the NAR’s decision to abolish this standard rate, agents will now find themselves in a more competitive environment, where they must vie for business based on the value and pricing of their services.

Potential Impact on Commissions

Experts predict that the elimination of the fixed commission rate could lead to a reduction in average commission rates by as much as 30%. This would not only lower the cost of transactions for home buyers and sellers but also potentially lead to a downward adjustment in home prices across the board.

Financial Implications for the Industry

The real estate industry in America generates approximately $100 billion in commissions annually. A 30% reduction in these commissions could result in a significant financial shift, with tens of billions of dollars being saved by American home buyers and sellers each year. For example, the seller of a $500,000 home could potentially save $9,000 or more if the commission rate were reduced to 3% from 6%.

Consequences for Real Estate Agents

The elimination of the standard commission rate presents both challenges and opportunities for real estate agents:

  1. Increased Competition: Agents will need to differentiate themselves through superior service, marketing strategies, and pricing to attract clients in a more competitive market.
  2. Reduced Income: With lower commission rates, agents may see a decrease in their income unless they can increase their volume of transactions.
  3. Innovation and Adaptation: Agents may need to explore new business models, such as flat-fee services or tiered commission structures, to remain viable.
  4. Client Negotiations: Agents will likely face more negotiations with clients regarding commission rates, requiring them to justify their value proposition more effectively.

Long-term Effects on the Housing Market

This seismic shift in the real estate industry is expected to have far-reaching effects on the U.S. housing market. Housing experts are predicting that it could trigger one of the most significant transformations in the market in a century. The potential for substantial savings for homeowners could lead to increased market activity and accessibility for first-time buyers.

Advice for Home Sellers

In light of these changes, individuals looking to sell their homes should consider the following:

  • Timing: Waiting until new lower commission models become more prevalent could result in significant savings.
  • Negotiation: Be prepared to negotiate commission rates with agents to ensure the best possible deal.

In a post-6% commission world, real estate agents have the opportunity to adapt and thrive in a changing market.

Here are some potential opportunities for agents:

  1. Differentiation Through Service: Agents can focus on providing exceptional service, specialized knowledge, and personalized attention to differentiate themselves from competitors and justify their fees.
  2. Value-Based Pricing: Instead of relying on a standard commission rate, agents can develop pricing models that reflect the value they bring to each transaction, such as flat fees for specific services or tiered commission rates based on the level of service provided.
  3. Increased Volume: With potentially lower commission rates, agents may need to increase the volume of transactions they handle to maintain or grow their income. This could involve expanding their client base, targeting new market segments, or increasing their marketing efforts.
  4. Technological Innovation: Agents can leverage technology to streamline their operations, improve their marketing, and enhance their client interactions, making their services more efficient and appealing.
  5. Collaboration and Networking: Building strong networks with other professionals in the industry, such as mortgage brokers, home inspectors, and attorneys, can lead to more referrals and collaborative opportunities.
  6. Niche Specialization: Agents can specialize in specific niches or market segments, such as luxury homes, first-time homebuyers, or investment properties, to become go-to experts in those areas.
  7. Educational Offerings: Providing educational resources and guidance to clients, such as home buying seminars or online content, can help agents build trust and establish themselves as knowledgeable professionals.
  8. Adaptability and Flexibility: Being adaptable and open to change will be crucial for agents to navigate the evolving real estate landscape successfully. This includes being willing to adjust their business models and strategies as the market demands.

By embracing these opportunities, real estate agents can position themselves for success in a post-6% commission world, offering value to their clients and sustaining their businesses in a competitive environment.

Overcoming the Home Inventory Crunch

Listing Inventory Real Estate Market

Ladies and gentlemen of the real estate world, gather ’round! It’s time to tackle the notorious home inventory crunch with a bit of humor, some tech-savvy wizardry, and the charm of postcard marketing.

As real estate agents and brokers, we know that the inventory issue has been giving us more headaches than that last-minute home inspection surprise. But fear not! This educational article will equip you with the best tips to leverage technology and postcard magic to get more listings and win those coveted listing appointments. Let’s dive in!

Embrace the Tech-side of Real Estate

Hey there, tech-savvy agents! The digital realm offers an abundance of opportunities to discover hidden listing gems and boost your chances of landing more appointments. Here’s how you can embrace technology to overcome the inventory crunch:

1. AI-Powered Lead Generation: Let artificial intelligence be your fairy godmother! Utilize artificial intelligence powered lead generation tools to identify potential sellers who may not even know they’re ready to make a move. These tools analyze data and predict when homeowners are likely to put their properties on the market.

2. Virtual Tours: Say goodbye to those never-ending open house weekends. Offer virtual tours to potential sellers, sparing them from the hassle and giving them a delightful taste of the magic you can weave when marketing their homes.

3. Social Media Sorcery: Wave your social media wand and cast a spell on potential sellers. Engage with your audience, share enchanting content, and showcase your expertise to draw them into your realm of real estate wonders.

4. Spellbinding Email Campaigns: Unleash the power of email marketing by casting personalized spells on your leads. Tailor your messages to suit the unique desires of homeowners, and they’ll be drawn to you like moths to a flame.

Postcard Marketing: Old School Magic with a Modern Twist

Ah, postcards! The nostalgic charm of receiving mail that isn’t a utility bill. Postcard marketing might seem like an ancient practice, but when combined with modern sorcery, it becomes a formidable weapon in your inventory conquering arsenal:

1. Enchanting Designs: Make your postcards pop with enchanting designs and eye-catching visuals. Be sure to include a touch of humor or quirkiness to capture the recipients’ attention and create a lasting impression.

2. Targeted Spells: Wave your wand (or simply use data analytics) to craft targeted postcard spells. Identify potential sellers by neighborhood, demographics, or property age, and send them personalized postcards that speak to their unique needs.

3. The Power of Storytelling: Every postcard should tell a captivating story. Share success tales of how you worked your magic to sell homes swiftly and at fantastic prices. Showcase your expertise and leave potential sellers wanting to be part of your real estate fairytale.

4. Postcard Incantations: Choose your words wisely! Write spellbinding postcard messages that evoke emotions and motivate potential sellers to take action. Sprinkle humor and charm to make them chuckle and see you as the spellcaster they need.

The Magic of Client Referrals

Let’s not forget the power of client referrals! Happy homeowners are the best ambassadors for your magical real estate services. Here’s how you can conjure up client referrals:

1. Cast a “Happy Customer” Spell: Provide enchanting customer experiences that leave your clients spellbound. Go above and beyond to ensure their real estate journey is as smooth as a butterbeer-flavored broomstick ride.

2. Magic-Infused Reviews: Encourage clients to leave glowing reviews on your website and social media pages. Positive reviews act like spells that attract new sellers like magnets.

3. Referral Rewards: Wave your wand of generosity and offer referral rewards to your clients for recommending your services to their friends and family. Who can resist a little magical incentive?

4. Follow-Up Enchantment: Don’t let your clients disappear into thin air once the deal is done. Stay in touch with them through personalized postcards or emails to keep the magic alive and ensure they remember your name when someone mentions real estate.

The home inventory crunch may seem like a formidable dragon, but fear not! With these tech-savvy strategies, and the charm of postcard marketing, you can conquer this challenge with ease. Embrace the magic of technology to discover potential listings hidden in plain sight, and wield postcard marketing like a sorcerer to capture the hearts of potential sellers. Remember, a sprinkle of humor and a dash of charm go a long way in forging strong connections with clients. So, go forth and cast your spells of success in the real estate realm! Happy hunting!

JUST LISTED & JUST SOLD POSTCARDS

Real estate agents are always looking for new ways to generate leads and reach potential clients. One effective strategy that many agents use is mailing just listed and just sold postcards to homeowners in their target market. This type of direct mail campaign can be a powerful tool for building relationships with potential clients and growing a real estate business.

One of the main advantages of mailing just listed and just sold postcards is that it allows real estate agents to stay top-of-mind with potential clients. By regularly mailing postcards to homeowners in a specific area, agents can establish themselves as a trusted resource for local real estate information. This can lead to more leads and ultimately more closed deals.

Another advantage of mailing just listed and just sold postcards is that it allows agents to target their marketing efforts. For example, an agent can choose to mail postcards to homeowners in a specific neighborhood or demographic, increasing the likelihood that the recipients will be interested in buying or selling a home. Additionally, by mailing postcards to homeowners who have recently sold a home, agents can reach potential clients who may be looking to purchase another property.

REAL ESTATE DIRECT MAIL

Direct mail also has a higher response rate than digital marketing methods like email. According to the Direct Marketing Association, the response rate for direct mail is 4.4%, compared to just 0.12% for email.

Just listed and just sold postcards are also a cost-effective marketing strategy. While digital marketing may have lower upfront costs, it often requires a significant investment in time and resources to achieve the same results as a direct mail campaign. Additionally, direct mail allows real estate agents to reach a broader audience than digital marketing methods, which are often limited to those who are actively searching for a home online.

The use of just listed and just sold postcards is a great way to make an impact with direct mail. According to the National Association of Realtors, postcards are the most popular form of direct mail used by real estate agents, with 44% of agents using them to reach potential clients. The reason for this is that postcards are easy to read and easy to keep. They are also a great way to showcase a property, especially if it is a new construction or a remodel.

There are several key factors to consider when planning a direct mail campaign for just listed and just sold postcards. First, it’s important to have a clear and compelling message. The postcards should include a strong call-to-action, such as a phone number or website for recipients to learn more about the property or the agent’s services. Additionally, it’s important to use high-quality images and design elements to make the postcards stand out.

GEOGRAPHIC FARM MAILING LISTS

Another important consideration is timing. Just listed and just sold postcards should be sent at the right time, such as when a property is first listed or immediately after a sale has been completed. Additionally, it’s important to send postcards regularly to stay top-of-mind with potential clients.

One more important factor is the selection of the mailing list. Real estate agents should be careful to choose a mailing list that includes potential clients who are likely to be interested in buying or selling a home. The use of mailing list provider companies can be very helpful in this regard.

CONCLUSION

In conclusion, real estate agents should consider using direct mail, particularly just listed and just sold postcards, as a way to reach potential clients and generate leads. Direct mail offers targeted marketing, a higher response rate than digital marketing methods, and can be more cost-effective. Additionally, just listed and just sold postcards are easy to read, easy to keep and a great way to showcase a property. By considering key factors such as message, design, timing, and mailing list, real estate agents can

Be A Tech Know It All

Real Estate Technology

Every day we all rely on technology for some reason.  The Pew Research Center tells us, in fact, that a whopping 97% of Americans have a cell phone.  It isn’t out of the question that you might be reading this right now on a cell phone!  And while I assume most of us automatically equate ‘cell phones’ with technology, it goes much deeper than that.  Our reliance on technology has truly become what I’d label a #FirstWorldProblem.  What that can mean for a buyer or seller is how quickly you can help them find someone taking advantage of what technology can do for them in the pursuit of snapping up their dream home, or dumping what they currently own in an effort to try and keep up with the Joneses.  

The What

There’s an entire nerdy, digital world out there we need to not only be aware of and educated about, but we need to be ready to implement the various types of tech to help close deals.  From the ubiquitous cell phone to a home networked with the personal assistant of your choice, whether you’re asking Alexa to turn up the TV or dim the lights, or screaming ‘Hey, Google,’ for the next step of a recipe…the kinds of technology present in a home can make or break a deal.  That can sometimes descend all the way down to ensuring that the plugs in the kitchen and bathroom and family gathering spaces support the newest USB plugs for charging and enjoying said devices.  Not everyone has the same technology experiences.  And not everyone is going to appreciate what the current owner has done to enhance his or her digital life in the home.  But you don’t want to be caught flat-footed when someone asks you where the router is, or if the home requires a mesh for the best WiFi connectivity, or if there are HDMI outlets already installed.

The When

Times are changing.  In 2011 35% of Americans had a cell phone.  Those people were not asking you what model Nest works best, and they weren’t wanting to adjust the temperature or turn on the living lights from six blocks away, or figure out the optimal location for their Echo Dots.  The only kind of plug options you had were GFI and non-GFI.  Now is the time to bone up on technology, to use it in your own home, and to ensure that you can be as conversational as possible when asked a question the 2011 version of you would have laughed at.  Homes can be retrofitted very easily for all kinds of electrical and technology needs (goal: making them more immediately livable in a buyer’s imagination, for example).  Heck, if I can change an outlet to incorporate the latest USB options, anyone can.  And I don’t even like the Joneses.

Research: https://www.pewresearch.org/internet/fact-sheet/mobile/

Rising Interest Rates

Rising Interest Rates in Real Estate

I couldn’t help myself.  I couldn’t.  It just sprang immediately to mind when I heard that Jerome Powell (and his gang of merry accomplices) added seventy-five basis points to the fed rates.  I saw the ‘Breaking News’ and McFadden & Whitehead started singing to me.  “Ain’t No Stoppin’ Us Now… We’re On the Move!”  Is that art imitating life, or something else?  I’m not sure.  Either way, “Change Is Gonna Come,” just like Sam Cooke sang.  Oops, I did it again.  

The What

According to a quick Google search, “The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and saving rates they see every day.”  In layman’s terms, this is the base rate from which all credit blessings flow.  As you know, there is an enormous amount of weight attributed to what the fed does, and its bearing on everything is more than consequential.  In our case, the specific focus is on mortgage rates…which ties directly to the ability for homeowners to buy and sell their properties.   

The When

Now.  I could stop right there, but that wouldn’t do this timing justice.  Whether or not you are of the opinion that we’re on the precipice of a recession, you’ve no doubt understood the impression on the market today, and the subsequent sway on your clients (yesterday, today, and tomorrow).  Rising fed rates not only hinder the ability to find an affordable mortgage, but they influence things you might consider ancillary, like credit card rates, auto loans, etc.  Those are typically impacted – right now – in a negative manner.  It can be a waterfall effect.  For example, as rates rise, credit card interest follows.  And that makes it even more difficult for anyone with credit card debt they can’t currently manage to get a stranglehold on the finance charges that pile up monthly.  That leads to higher debt-to-income ratios.  And that makes it harder for someone to obtain a mortgage with a ‘lower’ interest rate.  To the contrary, anyone with savings in play should see a modest increase in those rates (but most likely not enough to offset a potential mortgage rate increase).

The Conclusion

McFadden and Whitehead gave us what is essentially a very positive song.  “Don’t let nothing stand in your way!” they sing.  And that’s good advice.  The only way to get through any kind of adversity is to walk right down the middle of it.  Stay on top of the rate conversation, make sure your clients have access to the best financial information they can obtain (NOTE: that advice should not come from you, but a licensed provider), and understand what this trend means to how you need to run your business for the short- and long-term.

Research:

https://www.cnbc.com/2022/07/27/how-federal-reserves-75-basis-point-interest-rate-hike-impacts-you.html
https://www.federalreserve.gov/aboutthefed/bios/board/powell.htm

New Construction Start(s) Me Up!

Construction Real Estate New Homes

We’ve all heard of the Rolling Stones and Mick Jagger.  I don’t know if you have to be a person of a certain age, a fan of the Rolling Stones, or just hip and wise beyond your years.  But if you don’t automatically start singing (the lyrics you think you know) when ‘Start Me Up!’ comes on, are you really part of the fabric of humanity?  That’s debatable, depending on your circle of friends and your ability to stick your tongue out and wear skinny pants on stage.   Okay, that might be a bit too far.

The What

What connected me to immediately to Mick Jagger was the reporting I read on both the census website, as well as www.tradingeconomics.com.  Vitally important to your ability to make homeowners’ dreams come true is the supply of homes.  A subset of that supply is new construction.  And according to both of those sources I noted above, new construction [housing] starts are lagging in 2022.  Before we go too far, according to www.Investopedia.com (clever name), housing starts are defined as, “the start of construction on a new residential housing unit.”  For your purposes, just have an image of a single-family home in mind as you take in this article.  

“Privately‐owned housing starts in June were at a seasonally adjusted annual rate of 1,559,000,” per www.census.gov.  “This is 2.0 percent (±9.0 percent)* below the revised May estimate of 1,591,000 and is 6.3 percent (±10.2 percent)* below the June 2021 rate of 1,664,000.”  They used a lot of words to tell us what we already know: new homes are hard to come by.  Those were the latest stats through June of this year.  And it doesn’t look like that trend is going to reverse itself in the very near future. 

The When

As in ‘when will housing starts begin to tick upward?’…  That is actually very much up in the air.  It’s a waiting game, honestly, and there are a number of factors that we just can’t influence.  It’s a long game, to be sure.  “Housing starts in the US dropped 2% month-over-month to an annualized rate of 1.559 million units in June of 2022, the lowest since September last year.”  Will the recent passing of legislation tied to the Inflation Reduction act be impactful?  Will there be a sense of economic improvement that makes its way to housing, ultimately impacting the market, supply & demand, and mortgage rates?  We’ll see.  

The Conclusion

Although I’m fairly certain there is subtext in Mick Jagger’s lyrics that isn’t suitable for all audiences, one thing he writes (with respect to the real estate market in 2022) rings absolutely true: “You make a grown man cry.”  

Research:

https://tradingeconomics.com/united-states/housing-starts

https://www.census.gov/construction/nrc/pdf/newresconst.pdf

https://leadingbuilders.org/wp-content/uploads/2020/07/Residential-Construction-Economic-Study-5-2020.pdf

Home Staging 101

Home Staging Ideas

Staging: Helpful or Hassle?

One of those quotes we’re accustomed to seeing – and using – doesn’t exactly mean what we think it does when it spills out of our mouths.  “All the world’s a stage,” really speaks to the world being a stage show, and all humans are simply actors; everyone has a role, everyone has a part.  Well, in the world of real estate, all the world really IS a stage.  And it reveals itself, most often once you push open that front door and let happenstance (read: fate) take over.

The What

We are all aware of the ‘varied’ tastes and decorating abilities exhibited by clients and homeowners.  At times, we’ve wondered aloud about their ability to dress themselves and find their way to work.  Stepping into a home with a mishmash of design sensibilities and execution is as off-putting for your client as it is detrimental for the homeowner to find their way to a quick sell.  Not everyone has the talent or imagination for highlighting specific aspects of their home which can go a long way in doing the work for you.  An integral part of preparing a home for sale can be ‘staging’, or doing everything and anything you can to enhance the visual appeal, as well as create a basis for the perfect buyer (e.g., someone with design imagination and the willingness to make changes post-sale).

The When

Not everyone is going to have the budget to replace furniture or paint multiple rooms or make repairs to obvious areas in need of some TLC.  Your client doesn’t have change everything about their home, but they need to understand and have a willingness, at the front end of the selling process, to absorb the fact that the pink walls in the dining room need to go, or that an extensive ‘editing’ of the knick-knacks will showcase those special parts of a room or the home that are enticing to buyers.  Don’t wait until there have been two or three or four showings with frowns and sighs and negative feedback.  Time is of the essence, and the sooner you can make your ‘product’ more appealing, the less time (hopefully) there will be between a showing and a contract.

The How

I poked around and found a great article (https://frederickrealestateonline.com/decorating-staging-trends-2022/) listing TEN staging ideas a seller can consider when getting their home ready for sale.  I don’t agree with all of them.  For example, “The New Modern. As more people become digital nomads, that trend is influencing our tastes, whether we even travel or not. We are exposed to the world in a way that was never possible before. Can you have a maximalist design that incorporates zen, minimalism, and neutrals? Yes, you can…you can have it all.”  Zen?  Maybe.  

I think most people would prefer a calming paint color, or the furniture arranged smartly, in a way that lets them imagine themselves living in the home.   As with any ‘Best Ideas’ lists, you have to read the room, right?  And as a real estate professional considering the ‘staging’ conversation, you need to take into consideration those ideas which your seller can legitimately afford, those for which they have a true interest, and whatever helps move that needle, gets the showings, and ultimately helps get all parties to the closing table.  Period.

Research:

https://literarydevices.net/all-the-worlds-a-stage

https://frederickrealestateonline.com/decorating-staging-trends-2022

Home Buying vs Selling Whiplash

Buying vs Selling House

It Costs HOW MUCH?!

Only a few, short months ago the refrain coming from excited homeowners was, “I can’t afford NOT to sell my house.”  Remember?  The prices were absolutely stratospheric across markets, regions, and socio-economic quadrants.  It would seem, though, that what we’re hearing now is pretty much the opposite: “I can’t afford to sell my house.”  If they do sell, where are they going to go?  What can they legitimately afford?  Whiplash, anyone?

The What

You can slice this up any way you see fit, really.  We looked at several sources to make a determination about the most impactful criteria homeowners are dealing with in today’s market.  The struggle is real, the TikTok experts’ seminal advice, notwithstanding.  The barrier to entry boils down to price.  The cost for single-family homes (and apartment, condos, townhouses, and multi-family units, etc.) has quickly outpaced what people can afford.  Is it the economy’s nosedive?  Is it too much inventory that didn’t sell during the boom?  Is it stagnant wages, the war in Ukraine, or insurance costs, or ‘you name the reason and you’re probably correct’?

The When

Tabitha Mazzara, director of operations at Mortgage Bank of California, says don’t wait (www.forbes.com).  Prices aren’t likely to drop dramatically at the exact moment you think you’re going to be ready to buy.  “If you’re waiting for prices to suddenly plummet to what they were in the past, you’re making a mistake.”  Honestly, if you need a home, don’t want to rent, and are ready to pull the trigger, just do it.  The search for something you can afford/love/learn to love might be a little tricky – and lengthy – but time is of the essence.  Right now, there is a very large percentage of home seekers literally between a rock (no inventory they can afford) and a hard place (the interest rate monster).  Says Tabitha, “The Fed has promised another interest rate boost. If you’re ready to buy, don’t wait because prices aren’t headed dramatically downwards to what our parents paid. Things might dip a bit, but there’s no cliff dive that’s going to happen.”

Conclusion

Naturally, a homeowner/home seeker is only going to be able to do/afford what they can.  As a real estate professional, you’re no doubt being overrun with calls and emails and texts from prospects in this very same, and very real boat.  As always, it’s a bad look to start working with a client who isn’t verified and cross-checked.  They need to know precisely what they can afford, yes.  But they also need to be approved and they need to understand that you all could be in this for the long haul.  Take a breath, ensure open channels of communication, and maybe a little yoga to smooth out the road.  They’ll find a home, they’ll think you’re a superstar, and you can move on to the next home seeker in need.

Research:

https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions
https://myhome.freddiemac.com/resources/calculators/how-much-can-you-afford 

5 Ways to Close More Real Estate Transactions this Year

Sell More Real Estate Sold

We want more leads.  We want more contracts.  We want more closings.  As Real Estate professionals, often living and dying by commissions, getting to the closing table successfully and with as little pain as possible is our goal.  We can write as many contracts as we want, but if they are never ‘consummated’, they’re as useless as the paper (or pdf) they’re written on.

How to Close More Transactions and Get More Listings in 2022

Moving your client through the process is unique for them all; no two experiences are exactly alike, but they always share nuances and have similarities you can use to your advantage.  Getting to a ‘close’ should be enjoyable, not anxiety-inducing.  How can you get there with less stress, more often, and more profitably?  Here are five great ideas to help you do just that:

  1. Know Your Customer – One sure fire way to never get to the closing table is by not understanding everything you can about your client.  In that first conversation, not only should they be interviewing you, but you should be doing the same to them.  Forging a great working relationship will require you know their background, their budget, their strategies, how many agents they might have had before you, etc.

  2. Negotiate – Be it a sale or a purchase, there is still a lot of work to be done to get to the final stage, closing the deal and signing the documents to transfer ownership.  “Most negotiations have to be balanced, reasonable, and equitable for them to work out — otherwise one or both of the parties would walk away.” (www.carealtytraining.com) Come to the negotiating table fully prepared, commit to a floor/ceiling/conditions, and stick as closely to that line in the sand as you can without jeopardizing the deal. 

  3. Identify & Implement (the best closing strategy) – Direct, Soft, Hard/Hammer Close options play a role in how the process moves along toward pen and ink.  ABC (Always Be Closing) should live in your head rent-free.  In short order, you’ll get a sense for how to approach the close: tough and direct, an attempt to feel out the seller/agent and biding your time, or by putting your foot down and giving an ultimatum.  The desired result of the strategies, of course, is a positive response from the other side.  There’s nothing wrong with starting the closing process as early as possible.  But the earlier you identify the best method to elicit a favorable response, the better!

  4. Get an Inspection – Never enter into a possible sale without ensuring you know what you’re buying.  Conversely, it’s always a good idea to know what you’re selling to prevent a deal-killer from popping up at the last minute.  Hidden problems can quickly turn into money pits, nightmares, and enormous cases of buyer’s/seller’s remorse.  Don’t put your client in that position.  Knowing up front what issues need to be tackled, as revealed by a quality home inspection service, and what it might cost to repair them is critical.  Not all problems negate a sale, and some issues can be worked into (or out of) the sale price.  But knowing what they are sooner than later is half the battle.

  5. (Buyer should…) Present a knockout offer – Can you name many more things that get a seller excited about entering in a contract to unload their home other than a fantastic offer?  Coming as close to what both parties want can be trying, but when done correctly (and timely) you’re bound to decrease the time it takes to get to the signing table.  Make sure your client has their finances in order (approved), make sure to work with the seller, and offer terms they’ll appreciate – while protecting your interests (and wallet) at the same time. (www.thanmerrill.com)

Congratulations, you’ve got a fish on the hook (as it were), and you’re putting yourself and your client in position to close the deal.  You want to capitalize on the time you’ve invested helping buy or sell a property, you want to get in and get out, and you want to repeat with the next client. 

With as many ways as there are to get to close, there are even MORE ways to design the perfect real estate postcard campaign to get you noticed.  Drive engagement.  Drives lead generation.  Drives contacts.  Drives sales. 

What 2022 Looks Like for Local Real Estate Agents

REALTORS® Get Ready For A Wild 2022

Looking back on the real estate market in 2021, it was akin to scenes in movies (picture an alien invasion or some land rush in a western) where entire families, belongings in hand, are running down the street, away from their homes and off into chaos.  These folks weren’t escaping a monster from outer space or trying to lay claim to the back 40, no.  They were bolting from the homes they’d just sold – in many cases – for upwards of tens of thousands of dollars over ask. 

What might that kind of (recent) history foretell where 2022 is concerned? And how should we look to the past as a bellwether for what local agents can expect as the calendar rolls over to the New Year?  Pitfalls and triumphs, alike, will be had, yes.  But where, how, when, and what will be the best ways to be prosperous?

Seller’s Market

Kelly Melcher, from Opendoor.com, believes,” The seller’s market will continue into the 2022 spring homebuying season.”  She also thinks it will be less competitive than the year before, which is great for buyers, but still relatively optimistic for anyone wanting to sell.  Agents representing clients in 2022 are going to continue the search for inventory.  Marketing to (or identifying) geographic farms will increase or become more targeted.  And there will be a reliance on ensuring homes that do find their way to the market are in tip-top shape; the preparation not only cuts down time on market, but it also dramatically cuts away any fluff tied up in contingencies and things that could have been caught (and fixed) with an inspection.

Buyer’s Agent

“It’s really the severe shortage of homes for sale relative to demand,” says Odeta Kushi, “that will be the primary driver of continued positive house price growth.”  As the deputy chief economist at First American Financial Corporation, she knows a thing or two about the impact on the housing market.  There should be light around the corner, though, and as a buyer’s agent, it will be imperative to watch the pace at which home price appreciation begins to eventually taper off.  In the short-term, however, and given available inventory, it’s expected that ‘what I want versus what I can afford’ should still be at odds with specific target markets (e.g., Millennials and first-time buyers) looking for something to purchase.  In other words, prices might stabilize (don’t quote us on that), but the available inventory should remain relatively thin.

The Trends

RisMedia has offered up these great trends to watch in 2022, and we think they’re spot-on in many ways:

  • Affordability – This is truly going to be a “mixed bag as mortgage rates continue to climb and home prices rise.  Realtor.com® expects income to grow 3.3% by year end and unemployment to continue declining from a projected 4.8% in the last three months of 2021 to 3.5% during the same time-period in 2022.”  Depending on how closely these predictions come to reality, mortgage rates will still be volatile, and buyers will want to hop on low rates (pre-emptively understanding their credit rating and the amounts for which they can be pre-approved] early and check multiple outlets before taking a hit on their credit.
  • The ‘Burbs – Neighborhoods away from uptown/downtown centers “will become increasingly popular compared to big urban metros as home shoppers search for more space—a trend brought on by the pandemic. However, as demand is expected to outpace new construction growth, buyers may have to sacrifice space due to affordably constraints.”  The key here is to make sure buyers don’t make a bad deal just to get out of the drag of uptown/downtown because the siren’s song of backyard BBQs and pool parties beckons. 
  • Hispanic Homeownership – This segment of the population and their need for housing is predicted to rise in 2022, driving housing demand and impacting the homeownership rate for years to come. Realtor.com revealed that 1 in every 10 recent homebuyers is of Hispanic or Latino origin.  [NOTE: Per the 2020 United States Census, The Hispanic or Latino population grew from 50.5 million (16.3% of the U.S. population) in 2010 to 62.1 million (18.7%) in 2020.]

Conclusion

It doesn’t seem as though there are going to be any easier or more difficult opportunities when it comes to selling or buying real estate in 2022.  This business experiences peaks and valleys like other industries. 

The difference is there is often a near-immediate recognition of trends.  That, alone, gives real estate agents the ability to adjust their intake of facts, how they react to movements in the market (and real estate marketing) and to put plans in place to capture success!

https://time.com/nextadvisor/mortgages/mortgage-news/sping-2022-housing-market-predictions

https://www.rismedia.com/2021/12/01/forecast-2022-real-estate-market-mixed-bag

https://www.realtor.com/research/2022-national-housing-forecast

https://www.census.gov/library/stories/2021/08/improved-race-ethnicity-measures-reveal-united-states-population-much-more-multiracial.htm