More Homeowners Trading Golden Handcuffs for Comfort
A recent study reported that the "golden handcuffs" worn by homeowners who purchased at low rates will loosen up this year. Prospective sellers are feeling a sense of urgency, with 79% wishing they had listed their homes sooner when the market was hotter in their area.
While almost 1/4 of the homeowners thinking of selling are hoping to make a profit, just as many plan to sell for family reasons. Some have realized that their hastily purchased home is too big or small. Others want to take advantage of the most recent housing price gains.
This year's sellers are more realistic than in previous years, adjusting their expectations for the new market. Only 15% expect to get more than their asking price, down from 31% last year, with the same low percentage (15%) expecting buyers to forgo contingencies.
Ready To Add a CRS Designation?
If you believe that a designation is only worth the effort if there's plenty of effort involved, you may want to consider earning the Certified Residential Specialist (CRS) credential. A CRS is the highest designation awarded to residential sales agents, managers and brokers. Two paths to the CRS are available:
- The 60/30/30 Program, which requires 30 hours of education, plus 60 transactions or $30 million in volume earned during the past five years.
- The Pro Program, which requires 16 hours of education, plus a minimum of 10 years' experience and 150 transactions (or an average of $1 million in volume per year and at least 40 transactions).
Inflation Wears Out Its Welcome
Have you ever prepared to lock up an open house, only to be delayed by a talkative visitor who won't leave? Many of us are feeling the same way about inflation.
Last month's Consumer Price Index came in hotter than expected, with inflation numbers higher than expected across the board. Overall inflation came in at 0.4% month over month, the same as last month and higher than expectations of 0.3%. Relative to a year ago, prices were up 3.5%, more than last month's 3.2% increase and expectations of 3.4%.
This means that the Federal Reserve will probably postpone any interest rate cuts until mid-summer or even later, which may translate into elevated mortgage rates for longer than expected, including through the peak homebuying season. Whether this will deter summer home buyers remains to be seen.3
Be Safe with Top-Rated Phone Apps
While being accompanied by a loan officer or assistant is a smart safety measure when you're holding an open house, it's not always feasible. This means you could be facing some safety concerns when you visit an unfamiliar location or hold an open house event.
If you haven't checked out the latest phone apps designed to keep agents safe, now's an ideal time to do so. Here are some of the most popular, together with pricing.
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bSafe
- Purpose: Walking alone
- Price: 49 cents per week
- Purpose: Verifying identities
- Price: $20 per month
- Purpose: Property showings and open houses
- Price: $4.99 per month
- Purpose: Crime prevention
- Price: $4.99 per month
- Purpose: Secure access control
- Price: Free with purchase
- Purpose: Managing lockboxes
- Price: $15.85 per month
- Purpose: Threatening situations
- Price: $500 per year
- Purpose: Locating your vehicle
- Price: $9.60 per month
- Purpose: Building security and surveillance
- Price: $10 per month
Easy E-mail Tweaks That Heighten Response
The Endowment Effect tells us that people will value an item much more if they own it. With this in mind, you can tweak emails when appropriate. Instead of saying "You're eligible for...", change the message to "You've earned...".
Loss aversion means that losses feel more painful than equivalent gains. In real-world terms, losing $10 feels worse than finding $10 feels good. You can use this simple ploy by replacing phrases like "Come check out this new listing" to "Don't miss out on this condo that's just hit the market".
Scarcity sells. Taylor Swift gigs sell out in seconds not just because she's popular, but because her tickets are hard to come by. You can tweak this when sending out a special offer or new intel to prospective sellers. Instead of saying "Ask for your free neighborhood property review", rephrase it to say, "Only today: free access to my neighborhood property review."5
Sources: 1nationalmortgageprofessional.com, 2nar.realtor, 3redfin.com, 4theclose.com, 5blog.hubspot.com
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