Things we love to see

We could read articles about real estate all day and night, but if there’s one thing we love seeing most, it’s these surveys we see pop up every once in a while. Companies will interview sellers who used an agent and those who didn’t, and let’s just say, those are some truly satisfying reads. 

Well, ladies and gentlemen, we have good news. In our second story today, we have another of those terrific surveys that showcase exactly why we do what we do. The headline: sellers who use agents make an average of $79,000 more on their sales. 

That’s the best advertising in the world. 

There’s some more great data below, so let’s go ahead and get into today’s Blueprint!

– James and David

Rate cut spurs rise in housing demand

Total pending home sale contracts are up 6.4% in 2024 compared to this time last year. That’s according to the latest update from Altos research via housingwire.com. Here are the other key data points based off last week’s numbers:

• Inventory rose 0.8% from 725,249 to 731,017 active listings week-over-week. For perspective, during the same week last year, inventory was at 534,746. The all-time inventory bottom was 240,497 in 2022.

• New listings were at 63,022, up from 56,168 in 2023 and 59,780 in 2022.

• 39% of homes had a price-but, compared to 38% in 2023 and 42% in 2022. In an average year, 33% of all homes take a price cut.

Our take

Despite the seasonal nature of housing demand, recent data suggests that lower mortgage rates are already helping to stabilize, and even strengthen, buyer interest. However, significant and sustained growth in demand is likely to occur only when rates dip below 6% for a prolonged period. Given the ongoing affordability challenges in the housing market, it's encouraging to see this positive shift in the numbers.

Sellers make $79K more with agents

New research shows home sellers who used a real estate agent made $79,000 more from their home sales compared to sellers who didn’t. That’s according to a survey by Clever Real Estate, based on the replies of 654 Americans who sold a home this year or last year. 36% of the respondents chose to sell their home without an agent. Here are some of the other key findings from the report:

• 54% of agent-less sellers wish they had used an agent.

• Agent-less sellers are also 64% more likely to say they did not sell for their desired profit and 2x more likely to be unhappy about the method they used to sell their home 

• 49% of FSBO (For Sale By Owner) sellers wish they had priced their home differently, while 73% of represented sellers think their agent priced their home correctly.

• 87% of agent-less sellers would be willing to switch to an agent at some point, with 51% saying they'd hire an agent within two months of not receiving any reasonable offers.

Our take

Clever has done us agents a huge service with this survey. All agents should be using these findings in their listing presentations, especially that last stat. More than half of the owners who didn’t use an agent are willing to hire an agent within two months of not receiving any reasonable offers. Right now, so many listings are going stale. As we reported last week, in August, 48% of all homes for sale nationwide had been on the market for at least 60 days. Keep track of the stale listings and note which of them aren’t with an agent. Introduce yourself to the owners and tap this segment of the market! 

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Top metros for buyers

In the first half of 2024, the median home sold 1.9% below asking price nationwide. That is obviously a reversal from the pandemic when demand was so strong that offers over the asking price were the norm. In May 2022, the median home sold for 3.1% above the asking price nationwide. 

To help buyers snag the best deals, Realtor.com analyzed the sale-to-listing price ratio for the 75 largest U.S. metros to pinpoint areas where homes selling the most below the asking price.

This is the Top 10 from August, with the average percentage below asking price for home sales:

1. Cape Coral, FL: -8%

2. Sarasota, FL: -7.5%

3. New Orleans, LA: -6.8%

4. Miami, FL: -6.7% 

5. Austin, TX: -5.3%

6. Tampa, FL: -4.9%

7. Jacksonville, FL: -4.8%

8. Baton Rouge, LA: -4.4%

9. Orlando, FL: -4.1%

10. Nashville, TN: -4.1%

Our take

It’s not surprising that 6 of the 10 markets are in Florida. Florida’s housing supply nearly quadrupled from March 2022 to August 2024, surging from less than 36,000 homes to over 140,000, tempering buyer demand and making sellers more inclined to accept lower offers. Florida metros—including Orlando, Miami, Cape Coral, and Tampa—rank among the top U.S. cities for new construction per capita, further boosting inventory. Basically, Florida is one big buyer’s market right now.

The news that just missed the cut

• Realtor.com’s guide to the new commission rules

• The $177 million megamansion, Villa Siena, just listed in Bel-Air

• Growing your real estate business using situational prospecting

• California sets a 3-month limit on buyer-agent agreements 

• Ellen DeGeneres’s savvy real estate investment moves

Foundation Plans

Advice from James and David to win the day

Even though mortgage rates are forecast to fall in 2025, it’s still going to be important for agents to build relationships with builders and developers. They’ll be offering the best deals for most buyers. Today, we share our best tips on how to cultivate relationships with builders and how to develop a network of developers who will feed your business for years to come.

Start with the deals – The best way to get noticed by a developer is to bring them an amazing deal. Instead of approaching local developers asking for opportunities, bring them a deal they can’t pass up! This means building a strong client list using the marketing strategies we always talk about: door-knocking, open houses, mailers, email blasts, social media, etc. 

Take buyers to the site – Developers want to work with agents who are constantly making connections and finding new buyers. This proves you’re the kind of agent who will do everything you can to find the perfect buyer when the property is ready.  

Practice your pitch – Know what you’re going to say before you set foot on the jobsite. Developers want to work with confident, knowledgeable agents, and a bold pitch is your one shot to prove that’s you!

This is just the tip of the iceberg. To learn more, we encourage you to watch and review this episode of “Rise Above the Ranks” in which we talk about our success with developers and reverse engineer the process for new agents. Listen and tell us what you think.

To learn more about Estate Media, visit their website.

Just in Case

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

“The distance between dreams and reality is called discipline.” — Paulo Coelho

Strive to make your dreams come true friends. Time waits for no one! Discipline is destiny. Take action today.

Thanks for reading. We’ll see you back here on Friday!

– James and David