Very special guest!

On this week’s episode of Rise Above The Ranks, we’re joined by one of our good friends and longtime colleagues, Mauricio Umansky, CEO of The Agency and star of the new Netflix show Buying Beverly Hills (which comes out this Friday)! Mauricio is a massive dealmaker in his own right, and we’ve done millions of dollars of deals together.

We have a terrific conversation about one of our most requested topics: the art of negotiation. We share the scoop on our favorite negotiation tactics and how to avoid the ones we absolutely hate.

Don’t miss this episode because the information will surely help you close some deals!

Check out the episode → Apple | Spotify | YouTube

– James and David

All-cash new home sales surging

In Q3, all-cash new home sales surpassed FHA-backed sales for the first time since 2007. The uptick in cash buyers comes from stock market instability, rising interest rates, and tough loan contingencies. Some of the key numbers from the National Association of Home Builders' Q3 report:

• All-cash new home sales hit a 20-year high of 9.5%

• FHA-financed sales accounted for 7.5% of sales

• Conventional loans still finance the majority (77.6%) of new home sales

Our take

This is no surprise. Cash is king, and that's how it will be until interest rates stabilize and come down a bit. It's not your job as an agent to go find cash buyers, but it's good to have this knowledge at your fingertips. It will help you guide potential clients who are wondering if they should buy or sell, and how they should structure deals. Remember, be a wealth of information for your clients!

Buyers are optimistic about home buying process

The National Association of Home Builders reports that more than a third of buyers expect improvements in housing availability and the overall homebuying experience for a second straight quarter. This is due to increased inventory and less competition as high-interest rates continue to price some buyers out of their desired markets. Some key takeaways from that report:

• Housing availability expectations improved in all regions of the country in Q3

• The greatest share of buyers expecting their house search to get easier came from the West

• Buyers in the Northeast reported the greatest increase in the number of homes for sale in their region

Our take

We agree that the home buying process will continue to improve. The pandemic and shifting interest rates have led to a lot of uncertainties, but once inflation settles down, everything is going to return to normal, or at least, the new normal. We expect to see a shift around Q1 of next year, but nobody can say anything for sure these days, so do your best to get out there and build that pipeline!

10 most affordable markets for buyers right now

Zillow compiled a list of the 10 most affordable housing markets. They based the list on the percentage of a buyer’s average income that would go to their mortgage. Mortgages that comprise more than 30% of a homeowner’s income create a housing cost burden. Right now, the U.S. home average is 38%.

Here are the 10 most affordable metros:

1. Scranton, PA (22%)

2. Youngstown, OH (23%)

3. Toledo, OH (24%)

4. Akron, OH (24%)

5. Jackson, MS (24%)

6. Pittsburgh, PA (25%)

7. Harrisburg, PA (26%)

8. Little Rock, AR (27%)

9. Indianapolis, IN (27%)

10. St. Louis, MO (27%)

Our take

It’s great to see some affordability in certain markets. It just goes to show that every market is unique, so while some people like to grab headlines with crazy doomsday predictions about a crash, you can see that many markets are not headed in that direction. Every market is cyclical and ever-changing. It’s not worth moving markets for affordability. Work to capitalize on your own market and find creative ways to generate opportunities!

Schematics

The news that just missed the cut

• See why luxury real estate buyers love Montana 

• 6 reasons inflation can be good for real estate investors

• Important tips for professionally photographing your listing

• Interior designers highlight the 6 hottest trends for fall and winter

• This is D.C.’s priciest listing at $16.2M

• Cities with legal cannabis see $22k increase in home values

🎧 Rise Above the Ranks

In this week’s Rise Above the Ranks podcast, James & David share how to negotiate like a pro. Special guest Mauricio Umansky, CEO of The Agency, joins the guys on their latest episode to share everything he’s learned over the years. They discuss important tips for negotiation like:

• Do your homework. Before you negotiate, be sure to study things like the price per square foot, comps, and recent sales. Having the basics down pat means you’ll come to every negotiation confident that you have all the facts necessary to get your client the best possible deal.

• Know who you’re negotiating with. When you represent a buyer, it’s also important to understand the seller’s wants too. Maybe a longer escrow will make the deal more attractive, or maybe writing a letter to the seller will sweeten the pot. Every client is different, and the most successful agents know how to navigate both buyer and seller.

• Focus on the objective of the negotiation. In every negotiation, you’re teaming up with the other agent to get the deal done. Working together means you’ve got to put your ego aside and put your clients first. Take emotions out of the negotiating process. Remember: the only win that matters is your client’s!

Want the full scoop? Check out the episode → Apple | Spotify | YouTube

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! Learning how to negotiate well is one of the hardest parts of being an agent! Make sure you show up prepared with numbers and insight into what the seller wants out of the deal. Leave your ego at the door and work with the seller's agent to hammer out a deal that makes both of your clients happy. Remember: it's not personal – it's business!

– James and David

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