How to prep a listing

What we love most about home-selling is that you can add your own personal touch. We like to think about what we’d want to see when we walk through the front door. What would get us interested? What would make us want to put an offer on the table? 

Before we get to the open house, we start with open minds. We look at every single aspect of that property and re-think how we could make it more attractive to buyers. It's that creative part of the process that we love. 

Today, we encourage you to get creative! If there's one thing we've learned over the years, no detail is too small. In fact, it may be that tiny detail that helps you make a big, big sale.

– James and David

Latest CPI report sends rates through the roof

August’s Consumer Price Index report came out on Tuesday revealing a 1.4% rise in inflation. This caused stocks to plummet and mortgage interest rates to spike. Here are some key stats:

• The average 30-year fixed rate hit 6.28% on Tuesday

• Total mortgage application volume is down 1.2% last week and down 29% YoY

• Refinance activity is down a full 83% YoY

Our take

This news isn’t that much of a surprise to us. Heading into Q4, we all expected to still see inflation. Don’t let news like this deter you. The market is normalizing and there is still activity happening. Get out there and spend more time marketing the listings you do have. Remind your buyers that purchasing a home is still the single best investment they will ever make. 

Foreclosures on the rise 

According to the real estate data firm ATTOM, foreclosure rates skyrocketed in August, nearing levels we haven’t seen in more than two years. This is attributed to the cancellations of the pandemic’s biggest mortgage assistance programs and foreclosure moratoriums. Here are some key stats from August:

• 34,501 properties had an active foreclosure filing, up 14% from July and 118% YoY

• Nearly 24,000 properties went under foreclosure last month

• August’s foreclosure activity was only 14% lower than in August 2019

Our take

That last stat is important to note. It references pre-pandemic levels. Foreclosures may be going up, but that just means they are where they were before the madness. It’s unfortunate that this is happening, but it just means that inventory will be coming on the market soon, and we know the market definitely needs that.

Why the rental market may be cooling

In August, declining demand pushed rent down an average of 0.1% across the major metro areas. This reversal comes after 20 consecutive months of rental price hikes. While rent is still up 7.1% YoY, there is hope prices will continue to drop this winter. 

Check out the top 10 cities with the biggest rental rate drops in August: 

1. Nashville (-1.1%)

2. Austin (-1.0%)

3. San Francisco (-0.9%)

4. Las Vegas (-0.8%)

5. Raleigh (-0.7%)

6. Orlando (-0.7%)

7. Denver (-0.6%)

8. Seattle (-0.6%) 

9. Phoenix (-0.5%)

10. Detroit (-0.5%)

Our take

We know that some of these markets are already normalizing in single-family areas, so it makes sense that the rental market is following suit. This is something that needed to happen. Rental prices were clearly too high. It’s hard enough to buy a home. People need other options, so it's good that these numbers are starting to come down.

Schematics 

The news that just missed the cut

• Homes with this front door color sell for $6,000 more

• Would you buy this $90,000 parking spot?

• How to get the lowest sale price for your buyers

• These 4 tips will help your buyers get the best rate

• Realtor.com is the latest real estate company to lay off employees

Foundation Plans

Advice from James and David to win the day

It’s frustrating to be stuck with a listing that just won’t sell. If your property isn’t gaining traction, one of these 8 missteps might be to blame: 

1. The listing description is boring or unclear

2. The pictures are low quality

3. There are too many showing restrictions or too few available slots.

4. The property lacks a “wow” factor

5. The property is poorly staged (too many personal pictures, distracting artwork, clutter, etc.). 

6. Your price is too high or just outside a key pricing bracket (for example, a home priced at $305,000 won’t show up in a search for properties under $299,000)

7. There’s an error in your MLS listing, the property may not be categorized correctly, or could be missing key information. 

8. You need to put in more follow-ups to light a fire under a potential buyer

Check out the full list of reasons why listings languish on the market here. 

Q&A

You ask, James and David answer!

We’ll be back next week with another answer to a real reader question. Submit yours here!

Just in Case

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

Thanks for reading today’s Blueprint. We’ll see you back here on Tuesday!

In the meantime, have a great weekend and make some killer deals!

– James and David

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