The most important thing agents must do

We hit the main stage at the Tom Ferry conference yesterday, and, wow, the energy in that room was electric! We loved getting to talk about our industry, and getting to talk to so many other terrific real estate professionals who are as hungry to succeed as we are. What a way to kick off the year!

We want to share our main message at the conference with you: When you’re doing all your prep work for a listing presentation, the most important thing you can do is focus on your mindset. Remember that YOU are the expert. Before you walk into that room, keep in mind that your clients are making one of the most important financial decisions of their lives and they’ve chosen you, above everyone else, to help them make it.

You control the narrative. Lean in with confidence.

So, let’s take that confidence that we all know we have and start off 2023 with a bang!

– James and David

CPI releases encouraging mortgage report

Source: Unsplash

Thursday’s CPI report shows inflation cooling (down to 6.5%), indicating that mortgage rates could continue to fall and increase consumer confidence in the market.

Here are other key takeaways from the report:

  • Mortgage rates for conventional 30-year loans dipped from 6.58% to 6.42% week to week, resulting in a 5% spike in mortgage refinance demand.

  • Even before yesterday's CPI number came out, The Mortgage Bankers Association reported that applications dropped 1% week-to-week. They were 44% lower than the same week last year, which is the lowest reading since 2014.

Our take

This is great news, and we are sharing this with our clients ASAP! Inflation is cooling, which means the economy is heading in the right direction to benefit the housing market. There’s no reason a buyer or seller should be on the fence now. As reports like this come out, we recommend using them as a reason to reach out to your clients to see if they’re ready to make a move.

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Divided market forecasted for 2023

Source: Unsplash

Knock released their Buyer-Seller Market Index report last week, which predicts that, this year, buyers will have more leverage in western markets while sellers will dominate in eastern markets. Overall, housing inventory rose nationwide in November, and median days on the market rose in nearly all markets YoY.

Here are their top 5 buyers' markets for 2023:

  1. Phoenix-Mesa-Chandler, AZ

  2. Colorado Springs, CO

  3. Las Vegas-Henderson-Paradise, NV

  4. Dallas-Fort Worth-Arlington, TX

  5. Denver-Aurora-Lakewood, CO

Here are their top 5 sellers' markets for 2023:

  1. Fayetteville, NC

  2. Harrisburg-Carlisle, PA

  3. Syracuse, NY

  4. Hartford-East Hartford-Middletown, CT

  5. York-Hanover, PA

Our take

It’s important to cater to the type of market in your area. If you’re in a buyer's market, make sure your seller knows the right concessions to offer to make the deal happen. If you are in a seller's market, check the comps in the area to see how much leverage buyers actually have. Remember: transactions are happening, and 2023 is still unpredictable, so stay on top of the data and be the agent that goes the last 10% to get a deal done.

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New Western's 2023 predictions for investors

Source: Unsplash

New Western released its 2023 investor survey, which predicts trends in residential real estate investment. The survey shows that investors remain confident in real estate, with Gen Z and Millennial investors driving demand in a growing fix-and-flip market.

Here are the report's key takeaways:

  • Rent will become more affordable than mortgages, which ensures investors will have a healthy pool of renters in 2023.

  • Gen Z and Millennial investors see real estate as a secure hedge against inflation.

  • Younger buyers will drive growth in affordable, mid-sized metros.

  • The exit of iBuyers will create a more favorable market for local investors.

  • 63% of investors say mortgage rates are not high enough to deter them, and 70% plan to invest in real estate in 2023.

Our take

What a great report. Our biggest takeaway: real estate is a hedge against inflation. We could NOT agree more! If investors aren’t deterred by interest rates, you shouldn’t be either. If investors are pouring into single-family properties, that just means they have faith in the market (as do we). This is such a great nugget to share with your clients as we head into this year.

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The news that just missed the cut

Source: National Association of Realtors

Foundation Plans

Advice from James and David to win the day

We always talk about how important getting out there and knocking on doors is for generating leads and finding clients. It's a powerful practice that leads to real results, and we encourage all agents to do it. But if you hate door-knocking, there are still great ways to network and find leads.

Here are three alternative strategies for reaching new clients:

  • Enhance your social presence. Get in front of people in social settings and build connections with them. Accept as many invitations to social gatherings as you can, and try hosting some yourself. Remember to be authentic and bring the energy!

  • Get involved in your community. Getting involved in your local community truly matters as a real estate agent. Not only do clients want to work with someone who is doing good in the world, but it also grounds you in a community of like-minded people. Stay true to yourself, and find a cause that speaks to you!

  • Nurture existing relationships. Keep up with the people you currently have in your network. Put together a strategy for ongoing communication – think holiday cards, regular newsletters, or occasional check-in texts. As a real estate agent, your relationships are everything, so put them at the forefront.

Want to learn more about reaching new clients? Click to read the article.

Just in Case

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

Source: Rocket Mortgage

That’s all for this edition of The Blueprint!

Remember: all you have to do is refer 1 person and we send you our 35 page real estate essential toolkit covering all our favorite topics (open house strategies, door-knocking, negotiating, building a brand, etc). Click the share link above and send it to a colleague.

Have a fabulous weekend.

– James and David

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