For the last three months, rents have been on decline, and that's kind of a shock. We saw rents skyrocket during covid, but now there's pressure coming into the market.
Two things have happened:
First, people are starting to come back into buying houses again, so they're leaving their rental units to buy houses, a small trickle there. Another big part is the fact that 500,000+ new units across the country were built and came online last year, and 400,000+ are coming online this.
So what's the opportunity for us as REALTORS?
Well, one opportunity is to target mom and pop investors in your local market. These are people that might own two to 10 units in your market. They're not major industrial investors, but they'll be impacted by higher vacancy rates and decreasing rents. Some of these folks bought and they stretched themselves to afford it, and if they have a couple of months of vacancy, they could really get hurt.
Still, it's a strong market and there are still investors acquiring...
Hey, team, got two game-changing ideas for your upcoming Comparative Market Analysis (CMA). As you gear up for the next week or two, consider adding these to your arsenal.
Number one: Identify the strongest competitor and share this insight with the seller. During the CMA, explain, "Mr. and Mrs. Seller, we're diving into a CMA, much like an appraisal. Analyzing three sold properties, three active ones, and three that didn't sell. My suggested price is based on this, but I want to highlight a key competitor. This is the one we need to go head-to-head with. Buyers are likely considering these two listings, so let's be super competitive."
Number two: Distinguish between an as-is price and an improved price, especially for properties needing a bit of work. Frame it this way, "Like an appraisal, we can provide an as-is or an improved price. If we list it as-is, aggressively priced to sell, we're looking at this range. However, if you invest in a few improvements, I've got great...
Hey, team, you're on prospecting calls today—reaching out to expired listings or for sale by owners, maybe marketing in a neighborhood. What if no one picks up? Do you leave a voicemail?
Before that, try this trick:
Hang up and call the same number quickly, twice. Imagine being on the other side—seeing a missed call, then the same number calling back. You're more likely to pick up.
Now, they still don't answer. It goes to voicemail. Should you leave a voicemail as a salesperson? Absolutely. The chances of circling back and calling again are low. Keep the message concise and to the point.
For an expired listing, I might say, "Hey, I'm Jim. Your property delisted today. Wondering if you're interviewing other agents. I have a 25-point marketing plan that works. Just sold a house nearby, 25 days, 5% over list price. Let's talk."
For a for sale by owner, a simple approach: "I'm J Man with ABC Real Estate. Saw your ad on Craigslist. Can I do a video of your property for...
There's a fantastic book I read years ago called "Positioning" by Al Ries and Jack Trout. It delves into the concept that our brains, like a whiteboard, need a space. As marketers, our goal is to occupy that space in the consumer's mind. However, with numerous competitors in the market, the challenge is stiff.
I appreciate the idea that it's not about what we want to say; it's about what consumers want to hear and learn from us. Consider the top four things consumers seek from a realtor: finding the right home, assistance with paperwork (part of negotiation), negotiating price, and negotiating terms.
Reflect on these four aspects—finding the right home, negotiations on price and terms, and paperwork. Are we addressing these in our marketing and branding? Shift from what we want to say to what clients want to learn. This transforms marketing into something people want to pay attention to.
Now, let's consider what sellers want. The top four things a seller desires: an expert in...
We’re facing a dilemma here:
With the impending changes in buyer representation, there's talk about some agents taking zero BAC listings—charging a fee but listing it as zero.
Now, think about it: Buyers looking at these listings may opt to go unrepresented, thinking they can handle it all. So, as a listing agent, taking these listings, the question arises:
What do you do when an unrepresented buyer wants you to facilitate the sale without the BAC?
Considering the surge of unrepresented buyers, it's time to discuss this with sellers. You may still charge your standard listing fee but need to charge a bit more for dealing with an unrepresented buyer.
Because you're essentially doing double the work for potentially half the pay.
You're handling everything from financing and inspections to appraisals and negotiations.
You've got to communicate this to sellers. Due to changes in the market, unrepresented buyers...
Hey everyone, I've got some thrilling news about a game-changing trend in the real estate industry.
Meet the "Silver Tsunami."
Get this: 51% of individuals aged 50 and above are gearing up to downsize. Brace yourselves because this wave kicks off in late 2024, gains momentum in 2025, and is expected to roll in for decades, unleashing an estimated 30 million homes onto the market.
Just to put things in perspective, we currently have around seven to eight hundred thousand homes available.
Now, imagine an additional 30 million hitting the market in the next 10, 15, or 20 years. That's a colossal opportunity!
So, the big question: are you targeting these silver tsunami sellers?
Take me, for instance. I'm 54 and just sold my home—right in the sweet spot. Many individuals like me, empty nesters whose kids have flown the coop, are looking to downsize. This demographic is about to create a flood of opportunities in our market.
Here’s a quick and easy technique when you're talking to investment property owners:
So, you're out there doing lead generation, looking for investment properties like duplexes, triplexes, or RV parks. Often, when you ask owners if they've considered selling, the answer is a flat-out no, right? Happens a lot. But here's the game-changer: ask them why they're holding onto the property.
"Why are you holding onto this property?"
Give them a moment to think, and their response might be about it being a good investment or passing it on to their kids. Respond with understanding, acknowledging the value of holding onto good investments.
Then, drop the bomb: ask if they know their current rate of return.
Offer an income analysis sheet to calculate their cap rate and return on investment.
Now, here's the kicker – if you can beat their current rate of return, would they consider moving their money to something even more profitable?...
Hey everyone, what are the top reasons buyers want to hire REALTORS? What do buyers value most? Well, here are the top three reasons according to an NAR study.
The primary one, unsurprisingly, is assistance in finding the right home. It's consistently at the top.
What might catch you off guard are the next two reasons, both tied to negotiations. Second is aiding buyers in negotiating sale terms, and third is assisting with price negotiations.
Two-thirds of the top reasons revolve around negotiation.
When engaging with buyers initially, agents often overlook discussing negotiation. How can I prompt buyers to choose me, armed with this data? Well, one effective strategy is to showcase successes on social media. For instance, if I help buyers secure $10,000 in closing costs or credits from the seller, why not share that after closing? Highlight the journey—viewing 10 homes, narrowing down to two,...
Hey everyone, with the recent Sitzer Burnett lawsuit and NAR's loss, even though there are pending appeals, how should we adjust our approach to working with buyers? Waiting for the appeals isn't an option; we need to change right away.
So, what should we change? We must revamp our tactics and strategies. Today, I want to discuss a couple of key elements that should be part of your buyer presentation.
A common question from buyers is, "Why pay a buyer's agent a hefty sum to search for properties on the MLS when we can do it ourselves on platforms like Zillow or Realtor.com?"
This is a valid concern. To prove our value, we need to show that we bring a lot more to the table. In your buyer presentation, just like a listing presentation, there are crucial points to cover.
When it comes to the property search, it's not just about using the MLS. We go above and beyond. I emphasize that we leave no stone unturned. I mention that, of...
We know that NAR lost the lawsuit, totaling $5 billion. It's actually $1.8 billion, but it was tripled during the court process. Additionally, some major franchises in America are also involved in this lawsuit.
You might think that it doesn't affect us because it will get appealed, but that's wrong. The major news outlets have been covering this story since the trial, and now, after the verdict, they're going to continue. Your clients, both buyers and sellers, will be talking about it.
A situation might arise when you or another agent in your market is taking a listing, and the seller asks, "I read in the newspaper that I don't have to pay a buyer agent commission. Is that true?"
How do you respond to that?
Well, here's how your conversation should go:
“You have the option not to offer a buyer agent commission. It's entirely optional. But let me frame this for you as it's a competitive and...