How to Guide Clients Past Negative New
The national media continues to crank out depressing real estate headlines, harping about rising mortgage rates and lack of homes for sale. But not all of the bad news applies across the board, or to every area. Here's some data to share with prospective or nervous clients.
Home sales are rising in some markets. National headlines don't always apply to regional markets. For example, home sales are gaining momentum this year in some parts of the country. Be sure to remind potential sellers — especially those in more expensive homes — that they may be able to collect the full price you recommend, or even see buyers bidding higher offers.
Wow. Look at that equity. While some potential sellers may be feeling some FOMO (Fear of Missing Out) because they didn't sell during the peak of the market, the equity they've acquired is still impressive. Most homeowners have paid off their mortgages or have at least 50% equity in their homes. Home ownership continues to be a smart investment, even in a fluctuating market.
We're returning to realistic rates. While clients who missed out on 3% mortgage rates may be pining for 2021, sharing historical data may help. The mega-low rates were triggered by a global pandemic which is an extremely rare event. Freddie Mac data shows that 2019 began with 30-year rates over 4.5%. And, more recently, the inflation that helped drive rates higher in 2022 continues to wane.1
Three Lesser-Known, Free Lead Strategies
While you may be doing well with one or more paid sources of leads, it's smart to consider taking an offbeat approach as well, especially when they don't come with a price tag.
Here are three ideas you can put to work at any time.
1. Share Your Smarts on Local Online Communities
Joining real estate-related groups on sites like Reddit and NextDoor is an excellent way to generate free leads, and become a valued member of your local community while you're at it. Introduce yourself by mentioning any specialized knowledge and build credibility by supplying answers without asking for business.
2. Blog About Local Topics
Earning first-page Google ranking for most articles is almost impossible, unless you blog about the micro-niche local topics that big sites ignore. Some examples: local zoning changes, new construction, or guides to small subdivisions or neighborhoods that buyers are checking out. If your territory has interesting properties, such as vintage kit homes or Lustron homes, blogging about these can earn you plenty of hits.
3. Prospect Old Expireds Instead of New Ones
Focusing on older expired listings this summer might get you better results. Here's why: prices have gone up so much over the last two years that the unrealistic price the homeowner was originally asking may be a realistic price in today's market. Get started by searching your MLS for listings that have expired over the past three years and call the homeowners. If a listing's been withdrawn, call the listing agent and ask if it's coming back on the market.2
Is Lack of Inventory the Only Challenge Out There?
While most agents would certainly like more listings, recent data tells a different tale and suggests that there's more to it. Some stats from last week's Existing Home Sales data illustrate this point.
Overall stats make it appear that inventory really is in line with all-time lows, and not seeing the usual summer growth. But let's look at another number: inventory in terms of months of supply.
In terms of units, inventory is nowhere near mid-2020 levels — but "months of supply" is well above those levels, as this chart illustrates.
Time on market has risen as well, from 14 days in June 2022 to 18 days in June 2023.
The conclusion we can draw from this is that other factors, such as higher interest rates, are currently affecting sales. Let's talk about ways your potential buyers can lock in the lowest possible rate.3
You're Not Just an Agent, You're a Professor
Almost all homebuyers are successful and educated ... but not when it comes to real estate. This is why it's helpful to view them as students.
Keep in mind that they've chosen you to guide them through the home buying process. Here are two lists of specifics that you may want to discuss with new clients.
Seller advice:
- Even if your property has been on the market a long time, it can suddenly have one or more offers. There are new buyers entering the market every day, so be patient. Some move quickly.
- There is no set formula for how long a property will be on the market, or how much it will sell for.
- Potential buyers may ask for contingencies. Not all are problematic, but some can delay your sale's closing. We'll need to be careful about agreeing to these.
- Sometimes your first offer to a seller is your only chance. Don't assume you will get a counter-offer. The seller may sign the best offer presented, especially if there are several.
- If you see price reductions happening, you may be tempted to wait. But this may result in you losing the home you really wanted. Instead, we can discuss negotiating the price with the seller.
- Things like contingencies, closing dates and financing can be as important than the price you offer. It's a good idea to discuss these sooner than later.
- The longer you wait to buy a home, the more time you are missing out on appreciation, which is how you build wealth.
Create a Catchy Call to Action
An effective call to action (CTA) is powerful and memorable, so it's worth spending the time to create one for your business if you haven't already. It must be concise, relevant and clever.
You or your team can feature the new CTA or slogan within personal sites, blog titles, and even property descriptions. You can "brainstorm" your CTA on your own, or with a team. Simply write down words, phrases and ideas that describe your services. Is there a particular compliment you receive? Write that down, too. If you're stuck, move on to another task for an hour or two before returning to your CTA.
Here are more tips that can help you come up with a killer CTA, slogan or tagline.
- Rhyming makes a slogan catchy and easy to remember. Here's an example: "Invest in Southwest" for a political campaign in a Southwestern district of Atlanta, Georgia. And nobody can forget this paper towel tagline: "Bounty. The quicker picker upper."
- Use structural similarity to make your message more striking and memorable. An event planning business came up with "Have Your Party Your Way".
- A dose of humor can bring both levity and attention like "Blink if you want to try our product" or "Tap That" instead of "Click Here."
- People like feeling happy, so keep your call to action optimistic. It's why Nike's "Just Do it" slogan has remained insanely popular for 35 years.5
Sources: 1rismedia.com, 2theclose.com;, 3mortgagenewsdaily.com, 4rismedia.com, 5theamericangenius.com
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