Treat your clients like family
We treat our clients as if they were our family. We imagine what would happen if our mother, brother, or sister was sitting across the table from us, asking for our help. They would want our honest, straightforward advice. So that’s what we aim to give our clients.
We know that, sometimes, it can be difficult to deliver tough advice. It’s normal to get a little skittish, especially if you’re worried that your clients might take their business elsewhere. But we think it’s always best to give them the truth. That’s the service we provide, and we have faith that if we give them that, the result will be right.
Every relationship, whether with our families or our clients, is built on trust. We firmly believe that if you build that with your clients, you’ll not only keep their business, you’ll get more referrals along the way.
– James and David
Riding the interest rate rollercoaster
Source: Redfin
We’re in the middle of the most significant mortgage interest rate volatility since 1987. Much of it is caused by the Federal Reserve’s inflation-fighting interest rate hikes. Just last week, The Fed raised rates by 0.75% for the third time in a row. Economic uncertainty and fluctuating demand are also adding to the wild rate swings.
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The average interest rate on a 30-year fixed mortgage hit 6.87% on Monday, its highest peak since 2002 (for a brief moment, it even hit 7%!)
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Over the past 12 months, rates have risen at the fastest pace since 1981
Our take
These interest rate swings are absolutely tough for all of us in the industry. While no one can guess what interest rates will be tomorrow or next week, we do know that rates will keep going up through the end of this year. They most certainly will pass 7%. In the meantime, encourage your buyers to keep in close contact with their lenders so they always know exactly what they’re qualified to receive before putting in an offer.
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Good news for sellers
Source: Financial Times
With 7% mortgage interest rates on the horizon, buyers flooded the market in August. According to data from Realtor.com, new home sales surged, partially due to the brief interest rate drop mid-month. Here are key stats from August:
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New home sales jumped 28.8% month-over-month, the 2nd-biggest new home sales jump on record
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The Northeast saw the greatest increase in new home sales, up 66.7% month-over-month
Our take
LFG 🚀 It’s just what we’ve been saying—buyers are hungry for a great deal now that the competition has slowed down. They realize they finally have room to negotiate, and that there’s great inventory out there if they’re willing to look for it. We’re telling our clients that this is the perfect time of year to buy. They can find a home they love at a great price and get fully settled in before the holidays.
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As the market cools, these cities perform best
Source: Visit Lake County
Redfin released a list of the top cities likely to hold up best as demand drops. According to their report, certain Midwest and East Coast cities are more likely to weather the recent market. They studied metrics like home prices, price fluctuations, days-on-market, supply, and pending sales. They found that, in these cities, prices weren’t dramatically impacted by the surging demand we’ve seen these past two years.
These are the top cities best positioned to weather the cooling market:
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Lake County, IL
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Albany, NY
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Chicago, IL
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New Haven, CT
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Milwaukee, WI
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New Brunswick, NJ / Elgin, IL (tie)
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Bridgeport, CT
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Pittsburg, PA
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El Paso, TX
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Rochester, NY
Our take
As market trends shift over the next year, we’re expecting to see some more suburban cities emerge as real estate hot spots. In these pockets, there’s a lot of opportunity for both homeowners and investors to find a great deal. Stay sharp and stay ready. You never know when your local market will become the new Austin!
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Schematics
The news that just missed the cut
Source: Wall Street Journal
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At $69M, this Aspen mansion almost broke a local real estate record
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The University of California student housing crisis keeps escalating
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Is remote work to blame for the home-price surge?
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See inside Kim Kardashian’s new $70.4M Malibu mansion
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This chart shows rental price growth is slowing
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Zillow’s co-founder says the housing market is changing fast
Foundation Plans
Advice from James and David to win the day
We talk a lot about the value of cold calling to find amazing opportunities that other agents have passed up. Today, we’re giving you a step-by-step process to help you smile and dial your way to a host of new deals.
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Invest in a prospecting dialer. This is a software tool that scours your MLS and pulls the phone numbers from FSBO listings and canceled or expired listings. You set the parameters and the dialer calls the numbers for you, saving you considerable time searching and manually dialing.
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Set aside dedicated time every week. We recommend spending at least two hours, three days a week on phone calls. Use part of that time to keep up with your follow-ups, then devote the rest of it to your cold calls.
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Be ready to start your script when the prospect answers. Write out and practice every part of your script from the initial hello to your strong close, so when the call connects, you’re more than ready.
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Always have a next step ready. Don’t end a call without having a next step in place. That could be a scheduled follow-up call, an in-person meeting, or a full listing pitch.
Want more great prospect calling tips like this? Check out this article.
The Blueprint Spotlight
Highlighting an incredible agent who we believe you should know!
Meet Krys Benyamein, a talented agent who’s been serving Los Angeles and Orange County for four years.
Q: What advice do you have for agents looking to level up their career this year?
A: I have three tips that I think really helped me accelerate my own career:
– Try time-blocking. Commit to a few non-negotiables everyday, like making your calls, following up, and posting content. Then put them on your calendar at the same time every day. That makes it easier to get them done.
– If you’re in a slump, acknowledge it, accept it, and be open to letting it go. It’s okay to throw a brief pity party, but talk about it with people that you trust and then do things that help raise your energy level.
– Be careful about what content you consume. Make sure it’s high vibration and positive.
Q: Aside from cold-calling and door-knocking, what advice do you have for agents looking to generate more leads?
A: Sign up for all the affiliate lead sources you can find that provide free leads in exchange for a referral fee when you close the transaction. Even if you have to pay a referral fee, it’s worth it to gain a new long-term client (and all their potential referrals)!
Want to connect with Krys? Follow him on Instagram @krysbenyamein
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
ICYMI – When you share The Blueprint with just one friend, colleague, or connection, you'll get a free copy of our ultimate guide to accelerating your real estate career. The Essential Real Estate Toolkit includes 19 pages of tips, scripts, tools, and best practices— every thing we wish we didn't have to learn the hard way. Just hit the referral button above to share and enjoy!
Have a fantastic weekend!
-James and David
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