Hey guys, quick idea for you. Actually two.
First one is: Have you mapped all the home anniversaries for clients you sold a home to in 2021? Maybe you go back even further. You could go back to 2020, 2019 and map those home anniversaries of those closings, and then give everybody a call as their anniversary comes up.
You can say, "Hey, happy home anniversary. By the way, I did a quick updated CMA on your home for you to let you know what your home is worth and to show you how much equity you've built up over the last 12 months. It's incredible. Let me show you what's happened here."
That will be a value added call. People will appreciate you're making the call and they'll be looking forward to it next year.
Okay. That's a one idea.
Second idea is this time of year, everybody's starting to file their taxes. Get it in front of it. Send everybody you closed a home with in the last 12 months a copy of their HUD and closing statements so their...
Hey guys, quick market update for you:
We know that the CPI—the consumer price index—has risen dramatically. And right now it's running about 7% to 7.5%, depending on which economist you talk to.
That means that inflation's skyrocketing. The cost of goods and services is skyrocketing. Wages are skyrocketing. And so is the cost of getting a new loan or a new mortgage on a home.
Now, why are loans affected? They are affected because the federal government looks at this as a lever that they can push on the economy to slow the economy down and put the brakes on the growth in the country.
So since November of last year, through roughly today, we've seen a 300-point basis jump in what interest rates are costing Americans.
Now to put this in perspective because what does 300 basis points even mean?
It means that if you were gonna try to get November's interest rate today, it would cost three points. Three points, every a hundred...
Hey guys, here's a question:
How many transactions would you guess in the marketplace are cash transactions?
The answer is 23% of all transactions in the real estate industry today are cash transactions.
Now, why is that important?
It's important because when we're talking to buyers and sellers, we need to be able to talk about the impact cash buyers have in the marketplace.
So for instance, when I'm sitting with a seller, sometimes sellers will say, "Well, Jim, I only want to sell to a cash buyer."
Now I'll say, "Hey, I get it. I would prefer that too when I'm a seller. Cash buyers don't have an appraisal requirement. And a lot of times you can close faster and it's a little easier. I get it. No lender involved. But here's the reality of those numbers: Today the latest studies show that 23% of buyers are cash buyers. So that means 77% are not. Only about one out of four buyers are cash buyers. If we only want to sell to a cash...
A new study from NAR shows what's going on with home buyers and it's really, really powerful data.
When we look at home buyers, these 2000 groups, we found that 52% of them had been pre-approved. So they've gone through the process and they're pre-approved.
When you look at the reverse of that number, that means 48% have not. About half the buyers you're competing with when you're in a multiple offer situation are just pre-qualified. They're not pre-approved.
Now you need to make sure that number one, you're having a conversation with your buyer about the importance of being pre-approved. And secondly, educating your sellers about the difference between the two.
One thing that I would encourage you to do is have a conversation with your buyers as a starting point. So here's what I would say with my buyers:
I'd say, "You know, we're still in an extremely low inventory market. Things are changing a little bit and a few more...
Hey guys, with a Delta variant really starting to surge across America, it's coming back into the real estate conversation.
So I've got a couple of questions that you need to be asking clients. And a question you need to be prepared for if your clients ask.
So the two questions I want you to start asking (or thinking about asking) are these:
1. Would you prefer that I wear a mask?
So when you're working with a buyer, you need to start asking this question. Would you prefer that I wear a mask when we're talking? Some of them will say yes. Okay. Maybe most of them will say yes. It depends on your market area, right? It depends on the demographics. And what's going on in your market area. Remember, this is not a political conversation. You're not getting into a debate. You're just offering a service that if they feel more comfortable, you put a mask on.
If you're taking a listing, you might want to ask this second question:
2. Hey, would you...
What if from every listing you take, you received five transactional sides? Imagine you take 10 listings in the next 12 months. And that leads to 50 transactional sides.
Is it possible? Absolutely.
And more importantly, we have to look at what we've done the last 12 months — how many listings did we take and how many sides did we create? If we are leaving money on the table, it's probably coming from the activities that we're not doing when it comes to our listings and those opportunities are so massive.
We have a system which I call the "5 Star Listing System" and it identifies the five easy transactions we can secure from every single listing we take.
1. We're going to sell the listing that we take
Now, that sounds simple in today's market. 95% of listings are selling as soon as they hit the market. But as the market transitions, as the market shifts, believe me, we're going to need to be able to refine our presentations and...
The listing market is about to blow up. We've seen all kinds of stats around this. Everybody's looking at the same wave coming towards us. The question is, what are we going to do about it?
We know 77% of homeowners believe now's a good time to sell.
1 in 10 homeowner's plans to list in the next year. And 63% in the next six months.
Here are 5 things you must have to get ready for the super surge of listings that's about ready to break into your market right now:
1. An in-depth marketing plan
Now this is a step-by-step, point-by-point marketing plan that's unique to you. Not just your office, not your company, not your brand, but to you personally that you give to every seller.
If you haven't developed this, we've actually developed one for all of our coaching students, which will blow your mind. But you need to take some time to develop one yourself.
2. Recent testimonials
Have you collected those on an 8.5x11 piece of paper...
A recent study that shows about 6% of people are taking advantage of eviction moratorium laws. In other words, they're not paying their rent and they're just staying in place. In those cases where the tenant is unable or unwilling to make their rental payment, it can become a burden on the people that own these investment properties.
Why? Because they have to continue to make their own mortgage payments.
As a real estate professional we should reach out to investors as a resource. How? Try using the "Lock In Your Upside" script:
"My name is (your name) with (your company name). I am calling about an investment property at (address of units) did I reach (owner name). Great! Quick question - how did you do with rent collection last month? You know, the biggest challenge that I'm hearing from rental owners in the market when I'm talking to them is that they're having a challenge with the eviction moratorium. The reason for my call is that we have still...
Jim would like to talk to you about your real estate business with a complimentary 30 minute coaching session.
During the call be prepared to discuss - Your goals for the next twelve months. Your time management and priority management strategies. Your willingness to change and adapt to a changing market landscape, and your biggest choke points - what's really holding you back
The road to transformation starts with small steps. Take your first towards a better real estate business today...