Here's a shocking number:
For every listing in America right now, on average, those sellers, when the listing goes live, are getting 4.8 offers. Let's call it five offers per listing.
It's truly one of the best times in history to put a home on the market, but will this be changing soon?
The answer is yes.
What will change this dynamic is a buyer's ability to afford the house. And what's impacting that right now is interest rates.
Interest rates are rising rapidly, approaching 5% in a lot of markets. And with that, it's pricing a lot of buyers out of the market. And if they're not priced out of the market, it's for them to readjust what they can afford downward. They can't afford that high price because the interest rate won't allow it.
So when we're looking at working with sellers, we need to tell them there's a five alarm fire going on in the real estate industry right now.
And it's interest rates. They're rising so rapidly that...
Hey guys, there's a new study out from The REALTOR Organization talking about the consumer index. They're asking consumers questions about the real estate market.
One of the questions they ask homeowners is: Do they think it's a good time to sell?
What percentage of sellers do you think would answer yes to that question in your market?
Across the country, 76% of people that own a home believe now is a good time to sell.
That's excellent news because when you have such a high sentiment, when you're out there talking to people, they're much more likely to be open to having that conversation.
Not that long ago, just a few years ago, that was more like 30% or 40%. Today, it's 76%. That means over two-thirds of the people you're talking to think it's a good time to sell. Now it's just a timing issue — whether they're ready to sell today or not.
And here's some more good news:
A Zillow study reveals one in seven homeowners over the...
If you were to go back in time for the last 24 months and look at every closing you had, would all those people you closed a transaction with have given you a recommendation or endorsement online?
In other words...
If you closed 20 transactions, do you have 20 endorsements on realtor.com, Zillow, Facebook, or Google Business? Or are you missing a lot?
If you're missing a lot, you're missing opportunities. Here's why:
If you look at a couple of agents in your market, you might find this, I see this all the time. You might have an experienced agent that's crushing it — doing 30-40 transactions a year. Then you have this brand new agent who just started their business a couple of years ago and only closed 10-12 transactions each year.
But... online, they're getting a recommendation or endorsement from every single client. And sometimes clients they didn't even close a transaction with, but just had a good experience with them. So...
There's a "four alarm fire" happening in the real estate industry today:
What is it?
Interest rates are rising extremely rapidly. Now we knew coming into 2022 rates were gonna rise. The anticipation was from Mortgage Bankers Association, NAR, Fannie Mae and Freddie Mac, etc. The consensus was 3.7% by the end of 2022.
But what has happened?
First week in January, rates went to 3.12%. Second week in January, rates went to 3.45%.
Wow — that's almost a vertical rise!
So what's the messaging here?
The messaging for our buyers and sellers is get off the fence and get into the market.
Now, why are rates rising so quickly?
Well, we know that the Fed had told us already that they were gonna raise rates three times in 2022 to fight inflation because inflation's at a 50-year high and 7% was the latest number.
So their #1 goal was to fight inflation.
They also announced they were gonna stop buying mortgage-backed securities...
I'm gonna give you some numbers that are just reality in our business that you should know. And these numbers are going to drive your success throughout your career — whether you like it or not.
Are you ready for these numbers? Here they are:
They may be slightly different for every person, but in general, across the country, here's what the numbers look like in our industry:
* For every 30 conversations you have, you'll average one closed transaction.
And I want you to remember this:
Almost every single transaction you will ever have in your career will be the result of a conversation you've had in the last two weeks. You want more closings? You're gonna have to have more conversations.
Here's another one:
* For every 10 sphere members you have in your database today, you should average one closing — assuming that you've made 20 to 50 contacts with them in the past year.
20 to 50 contacts will get you a 10 to 1 closing...
I want to talk to you about what I call the algorithm of sales. And what that means is that there's some base numbers in our industry, that if you embrace them, it can unlock unlimited opportunity.
The problem is most agents don't want to embrace them. They just want somebody to hand them a buyer or seller. Or for a buyer or seller to literally lay down in front of them so they can just start working with them.
Guys, that doesn't work.
You have to go out there and work the numbers if you want to do well.
I'm going to give you six numbers that are going to be just what I would call standard in the industry that you have to embrace for you to have success.
1. For every 30 conversations you have, you'll average one closing.
So if you want to make 300, 400, 500, $600,000 a year, you just have to figure out how many closings you need. And then multiply that number by 30, which will tell you how many conversations you need to have in...
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