Why the right price matters
As an agent, pricing is one of the most important strategies you’ve got to get right from the very beginning. If you price a property incorrectly, it will sit on the MLS, accumulate days on market, and really make that listing hard to move.
In this week’s Rise Above the Ranks podcast, we’ll talk more about how to negotiate the right list price with your sellers, set your listing up for success, and keep your relationships healthy throughout the selling process. Give it a listen (on Apple or Spotify), and if you feel like you learned one thing, please leave us a review.
– James and David
Why all-cash offers are rising
Source: Unsplash
The share of all-cash home purchases has remained higher than average since January 2021. We saw this approach gain popularity last year as the best (and sometimes only) way to win a bidding war. Currently, many affluent buyers are paying in full to avoid rising interest rates.
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In July, 31.4% of home purchases were cash-only deals
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In February, the share reached an 8-year high of 32.1%
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All-cash purchasing activity is up 27.5% YoY
Our take
We are seeing this trend in our markets. If your buyers have cash as an option, that’s great, especially considering rising inflation and the declining value of the dollar. The reality is that not everybody has this choice, so be sure to educate your buyers with other options such as ARMs (adjustable rate mortgages) to help your buyers make a move.
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New stats on foreign buyer activity
Source: Unsplash
According to the NAR’s international buyer’s report, foreign buyers purchased more than $59B in domestic real estate between April 2021 and March 2022.
The highest share of buyers came from these five countries:
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Canada (11%)
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Mexico (8%)
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China (6%)
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India (5%)
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Brazil (3%)
Foreign buyers were most active in these five states:
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Florida
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California
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Texas
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Arizona
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New York
Our take
We love to see foreign buyers in California because we work there and we are foreign, ha! Seriously though, this is helpful information. It’s important to know where your next buyer might be coming from. We recommend studying up on these foreign buyers – their customs, preferences, and needs – so you can work with them more effectively.
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Zillow faces consumer privacy lawsuit
Source: NY Post
Zillow is facing a class-action lawsuit over its use of screen recording technology. The complaint accuses Zillow of recording users’ activity on the site, then creating video reconstructions of their browsing sessions. This violates Washington’s wiretapping laws. Microsoft (who embedded this recording code into Zillow’s site) is also named in the lawsuit.
Our take
This is a tough one for Zillow. Privacy is so crucial these days, and it’s pertinent for a product to be careful here. We get the need for Zillow, but this is just another reason why agents are crucial for the industry. Trust, privacy, and face-to-face business are essential. After all, this is one of the most crucial financial decisions anybody will make!
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Schematics
The news that just missed the cut
Source: Wall Street Journal
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See inside what could become the country’s most expensive home
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Why the best homebuying week of the year is just around the corner
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81% of buyers think these home features are the most important
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This maps shows where prices are rising and falling today
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Check out the Royal Family’s New York Real Estate portfolio
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Oprah just sold this Mediterranean mansion to Jennifer Aniston
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Opendoor lost a lot of money in August
🎧 Rise Above the Ranks
In this week’s Rise Above the Ranks podcast, James & David share their best tips for setting realistic seller expectations.
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How to prove your negotiation skills, starting at your listing appointment
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Information you need to know before you list the property. These include neighborhood comps, local sales activity, market data, and current interest rates.
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The “Coming Soon” strategy. This is one of our favorite ways to test your sales price before you officially list the property.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
Thanks for reading today’s Blueprint. Your week is already off to a great start! Keep up the momentum, stay focused on your big goals, and get out there and crush it. You’ve got this real estate pro.
-James and David
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