Mortgage News February 11, 2022

Three Tips to Create a Positive Experience for First-Time Homebuyers

Buying a property can be overwhelming, particularly for first-time buyers -- and they're looking to you for guidance as they navigate the process. Fortunately, you can help homebuyers have a positive experience by using these three strategies:

• Set clear expectations
  First-time homebuyers are looking for an agent who is honest about what they can get for their budget. This will include what "must-have" items they may need to sacrifice, and which communities and neighborhoods offer affordable properties.
• Serve as a resource
  Your first-time buyers most likely have questions about everything from loans and mortgages to the best school districts and inspections. Sharing your knowledge and contacts can ensure their homebuying journey is a smooth one.
• Sidestep potential issues.
  An agent's most important role is to help clients avoid possible issues, both now and in the long run. Assist first-time homebuyers by identifying red flags as they do their due diligence, and they'll remember you positively when it's time to buy their next home.¹

Google Implementing Updates to Improve Browser Privacy

Google has announced its plan to phase out support for third-party cookies for the Chrome browser. Through its "Privacy Sandbox" initiative, the company intends to introduce other methods for advertisers and marketers to track ad reach and effectiveness.

They are also developing other tools for fighting online spam and fraud. All the updates are expected to be in place later this year.

Agents and real estate firms that promote themselves via online ads will need to make sure they are using privacy-compliant platforms to avoid disruption to their marketing schedules. Your ad provider should be able to share more about their plans to adapt to the new Chrome requirements.²

Four Tips for Creating Virtual Tours that Stand Out

Virtual tours are a great way to draw in potential buyers. There are several ways to host them, from guided 3D tours to a pre-recorded video walkthrough. Some agents even live-stream property showings, answering buyers' questions via Facebook, Zoom or another streaming platform:

• Show the whole room
  Give viewers a 360-degree shot of each room, so they have a good idea of the space and flow.
• Highlight important details
  Focus on valuable features of the home, such as high-quality materials, room dimensions, ceiling height, and other selling points.
• Choose your shots carefully
  You don't have to show everything on a virtual tour. Skip disorganized areas or features that may be a turn-off for buyers.
• Provide your contact info
  End each video with a call to action to schedule an in-person tour or get more information about the home, followed by your contact details.³

Second Home Rate Locks on the Rise

After falling slightly in the second and third quarters of 2021, the share of second home rate locks bounced back up to 5% in the fourth quarter. The rate locks came ahead of new upfront fees established by the Federal Housing Finance Authority, impacting high-balance and second home mortgages. The biggest increases occurred in southeast states; the area between Orlando and Tampa, Florida saw the largest jump, with a 65% year-over-year rise in second home rate locks.⁴

Seeking Financial Freedom? Start With These Four Steps

Financial stability and potential wealth are high on the list of reasons for choosing a career in real estate. But achieving financial freedom requires discipline and knowing how to use your money wisely. Follow these four steps to get started:

• Pay off debt
  Tackle your debt before investing to avoid paying more than necessary in interest and related fees.
• Diversify
  Spread your money into different "buckets." These may include cash, retirement accounts, stocks/bonds, real estate, or small businesses.
• Learn from others
  Study others who have achieved personal financial freedom and find ways to adapt their methods for your own lifestyle.
• Set annual financial goals
  You probably already have an idea of how much you want to make this year, but consider setting other goals, such as creating an emergency fund, setting aside a certain amount for retirement, or giving a percentage to charity.⁵

Sources: ¹mckissock.com, ²realtybiznews.com, ³realtytimes.com, ⁴nationalmortgagenews.com, ⁵rismedia.com