No Rate Hike This Month...But What About Later?
Many economists and real estate experts are predicting that the housing market will remain subdued until the Federal Reserve starts cutting rates next year. Unfortunately, a final rate hike for 2023 is expected to be announced by the end of the year, putting rates at around 5.6%.
Economists with the Mortgage Bankers Association (MBA) are expecting a delayed improvement to the housing market for buyers and sellers alike, with rates expected to trend down next year. The MBA expects the Fed will begin to reduce rates in 2024 and is currently predicting that the 30-year fixed mortgage rate will decline to 5.4% in 2024 and 5.1% in 2025.
While you're well-aware that some potential buyers are waiting for lower mortgage rates, not all have adopted this strategy. Instead, NAR data suggests that only one out of seven buyers have put their plans on hold for the time being.
Instead of putting your marketing campaigns on hold, join me in building relationships with potential buyers and sellers right now. I have access to an updated library of marketing materials, all professionally designed and ready for us to begin co-marketing with our contact details. Contact me and I'll arrange a preview for you.1
Put a New Spin on Your Instagram Posts
Even though Instagram supplies a growing array of posting strategies, it's easy to fall into a rut. Here are some ideas that will earn you more likes and shares:
Video walkthroughs. Create a short, imaginative Reel for each new listing that lingers on its primary selling points (or the areas that have thrilled viewers during showings). With a little practice, you can create a video that only runs for a minute or less, where you personally point out the features that will draw more buyers.
Put your mug into a meme. Some of the busiest agents have a sense of humor they flaunt by putting their own photo into a new or established meme. There are tons of fun memes floating around that you can recycle and repurpose for your audience.
Be yourself. Don't be afraid to add some personal touches that engage your followers. For example, one agent asked followers to guess her career before she switched to real estate. Another posted a thank-you to his clients that combined details of his love of surfing. Photos of listings are important, but so are you. Prospects and clients want to get to know you.22
Builders Go Boomer
A recent data release from the National Association of Home Builders (NAHB) reflected a rise in home starts in age-restricted communities. HUD allows these communities to carry this restriction provided they are created and managed under certain guidelines.
Buyer ages for these homes range from 55 to 62 and better, although a minimum 80% Boomer occupancy is acceptable.
Of the 1,005,000 home starts recorded in 2022, around 59,000 (28,000 single-family and 31,000 multifamily) were built in age-restricted communities. While property sizes tended to align with others — both with a median size of 2,300 square feet — they were usually on smaller lots and with a higher price. Designs accommodated Boomer buyers' aging-in-place needs, such as single-story homes with outdoor patios.
The median price of an age-restricted single-family home started in 2022 and built for sale was $472,000—$75,000 higher than it was in 2021, and considerably above the $461,000 median price of non-age-restricted homes started in 2022.3
New To Real Estate? How To Land Listings Sooner
You're ready to begin your new career...but you may be wondering how to bring in those elusive first seller clients. Did you know that many newbies make the mistake of limiting their marketing to prospective buyers, or to limit seller approaches to FSBOs and expired listings? Here are ways for you to become a busy, confident listing agent.
Perfect Your CMAs
Offering a Comparative Market Analysis (CMA) to a homeowner may feel intimidating, so build confidence by practicing. Start with creating highly readable CMAs for your homeowner friends, family, and neighbors. Don't be shy about asking for feedback and introducing new layouts and designs. One of them may eventually decide to sell their home and you'll be the first agent that comes to mind.
Design A Killer Seller's Guide
Even if your employer supplies these, consider creating your own. Thinking through the selling process and putting it in your own words means you truly own it, and it'll sound much more personal than other Guides. Present yourself as someone that sellers will look forward to working with. When you're finished, offer a copy to anyone who wants one. Write a post that tells prospects how and why you created it and offer to send a PDF version upon request.
Share The Right News
Keep your eye out for news articles that will appeal specifically to potential sellers, and regularly share them on your social media, or by email. (Be sure they're not paywalled, or you'll annoy people.) Add your personal point of view, and answer these questions: Why should this news matter to them? What should they do, given this news?
The more you post these types of articles on your social media, the more people will think of you as a perceptive listing agent. Don't be discouraged if these don't earn you dozens of Likes. You won't convert every reader...instead, you're going for the few potential clients who see you as in touch with the market.4
"You want the seller to leave what?"
Sellers' pets. These have gone far beyond cats and dogs. One buyer asked that the sellers leave their racing pigeons, while another asked for the pet peacocks to stay. This last request was later regretted, as peacocks' mating calls are loud and the birds tend to visit neighbors, invited or not.
Wooden toilet seats. The buyer was terrified that the seller would take this item and literally had it written into the sales contract. (These retail for as little as $30.00.) Another buyer insisted that a bathroom door robe hook be left behind, even threatening to abandon the deal if it wasn't.
Legendary cars. One agent mentioned that a sale of a luxury home fell through as the seller refused to negotiate selling the Corvette in the garage. Other buyers have tried to convince the seller to part with their Corvette or Lamborghini.
Off-beat decor. One seller agreed to leave their three-foot statue of Bigfoot behind for a buyer. Another seller eventually threw Winston, their near-life size polar bear sculpture, into the deal.5
Sources: 1housingwire.com, 2theclose.com, 3eyeonhousing.org, 4lightersideofrealestate.com, 5lightersideofrealestate.com
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