The one thing

Whenever we meet new agents, they always ask us the one thing it takes to make it in this business. Frankly, there are a hundred “one things” that we could tell you.

But let’s face it–nobody wants to hear that! That’s why some of you come to this newsletter right here. We all want answers. Heck, even after all our years in the business, we still always like getting a solid piece of useful advice.

So, if we had to boil it down, here’s the one thing it takes to make it in this business: perseverance.

We’ve seen a lot of people come and go in this business, and most of them bailed for the same reason: they let defeat defeat them. If you really want success, you’ve got to be willing to handle all the ups and downs along the way. We all know that if you make it through all that, it can make success even sweeter!

On that note, let’s get on with today’s edition of The Blueprint!

– James and David

Home buyer demand above pre-pandemic peak

More people are viewing and touring homes than they were prior to the pandemic. That’s the upshot from the latest data released from ShowingTime. Here are its key findings:

• 34% more people are touring homes than in the pre-pandemic peak set in 2018

• 21% fewer people are touring homes than the peak set during the pandemic in 2022

Our take

This is very good news! It confirms everything else we currently know about the market. Home buyers feel empowered by our extremely strong jobs market and are hungry to buy right now. Use this as momentum to get hesitant sellers off the sidelines and in the game. The deals are out there to be had. Let’s make it happen!

Sellers and buyers are getting flexible

Opendoor’s new survey found that a high percentage of home buyers and sellers are willing to make some concessions in order to close a deal. The top areas where they’re willing to bend are the closing date, inspection fees, listing price, and closing costs.

Here are other key takeaways:

• 76% of sellers said they would consider making concessions

• 80% of buyers said they would do the same

• Baby boomers are more likely to offer below the list price

• Millennials are more likely to offer above the asking price

Our take

This is an amazing report. It shows that both sellers and buyers are extremely flexible right now. Both sides want to make a deal, and most importantly, we can see exactly where both sides are willing to bend. You can’t find a more useful tool for negotiations. Take some time this weekend to study this report and use it to strategize how you can best position your clients. Then move them to get the deal done!

The 10 most affordable suburbs in the country

It’s easy to find the most affordable suburbs. 95 out of the Top 100 are located outside New York, Washington D.C., Boston, and Miami. That’s Point2’s finding in its latest report. These homes are at least 60% less expensive than their nearby metros.

Here are the Top 10 most affordable suburbs and their adjacent metros:

1. Medley, FL (Miami)

2. Emerson, NJ (New York)

3. Lodi, NJ (New York)

4. Mount Vernon, NY (New York)

5. Huntingtown, MD (Washington, DC)

6. Waldorf, MD (Washington, DC)

7. Moonachie, NJ (New York)

8. Boulevard Park, WA (Seattle)

9. Lawrence, MA (Boston)

10. Passaic, NJ (New York)

Our take

This report is a gift, especially for agents on the East Coast. Now you know where your buyers can get a large spacious home at a significant discount. Best of all, your buyers don’t need to move to some way-too-far-out town. Use this knowledge to market your current listings appropriately, and start farming these neighborhoods for new listings.

Schematics

The news that just missed the cut

• Boomers are handing down $53 trillion in real estate to their heirs

• AI tools agents could definitely use

• How ADUs affect property taxes and home values

• Costar’s big plan to take over real estate

• The Grammy for Best Real Estate Rap goes to…

Foundation Plans

Advice from James and David to win the day

With so few houses on the market, sellers are inundated with multiple offers right now. If you want to know how to help your buyers make their offers stand out from the crowd, here are three tips:

Offer All-Cash Bids: Two things matter the most to sellers when considering an offer. First, sellers want certainty that an offer will not fall through, and second, they want to sell as fast as they can. Nothing closes a deal faster than an all-cash offer.

Use Pre-Underwriting: Typically, the underwriting process (when a lender looks at your creditworthiness before approving you for a loan) happens after you put a home under an agreement. But now many mortgage lenders are pre-underwriting borrowers before they submit an offer. This allows buyers to close quickly and offer a measure of assurance to the seller.

Offer Sale-Leasebacks: Leasebacks are when the seller sells their home and then leases it back from the buyer for a set period of time. With elevated mortgage rates, sellers need time to find and move to a new home. Offer a leaseback as part of your bid to sweeten the deal for them. This could be the difference between you and someone else winning the bid, especially if the seller isn't prepared to move out immediately.

For more strategies and tactics you can use, read this from our friends at Business Insider.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

That’s a wrap on this edition of The Blueprint!

Remember that real estate is all about building long-term relationships and connections. So go out there and show the world who you are. Make that one extra call and knock on that one extra door. That’s how you build a successful career in real estate!

Thanks for reading, and we’ll see you back here on Tuesday!

– James and David