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...
The market is changing, we are starting to see double-digit appreciation returning to the marketplace. Unfortunately this can cause some sellers to get ahead of the market and demand prices that are unreasonable. In short some sellers are getting greedy.
As a real estate professional one of our most important jobs is to be be an educator. Try using the "Four Sales" - Script to help educate your sellers:
"We have to sell this home to four different people. We have to sell it to the real estate community, to motivate them to show the home. Then we have to sell it to the buyer. Then we have to sell it to the appraiser and finally we have to sell it to the underwriter for the bank. All of these people will measure your home-based other homes they have seen in the marketplace. Even if one of them agrees to pay over market – it’s unlikely the other three will also agree."
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Are you going stir crazy yet?
Only a couple weeks into a shelter in place order and many of your clients will be going a bit stir crazy. How can you help? First reach out and connect. In a new study from AT&T over three weeks in March just as the coronavirus began to deeply impact the United States:
Clients want to connect and they are more open than ever from hearing from you. But what do you say? Try this script:
Just checking in on you guys, are you going stir crazy yet? At my house we are <talk about your household activities>…one thing we are doing more than ever is household projects. We found a few checklists that we are working through one is for spring cleaning and another is for household maintenance…if you want a copy, I will shoot you a copy...
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