How to set good expectations

In this business, we all know communication is key. Our sellers want to know how and when we’re doing everything. When we take on a listing, we always make sure to keep those lines of communication open so our sellers don’t get any surprises.

In this week’s episode of our real estate podcast Rise Above The Ranks, we discuss how to get more eyes on your listing for your seller. We always make sure that we’re on the same page and that our sellers know exactly how we are going to position their homes. That way, when they see that listing for the first time, they know exactly what to expect.

In the episode, we go through our entire process with a schedule that lays out exactly what we’ll be doing in week one, week two, and so on. We hope this helps you and your sellers communicate more effectively, and we hope you’ll give it a listen.

– James and David

Home supply increases in disaster-prone areas

For millions of U.S. homeowners, the trend towards suburban living might have an unexpected consequence: increased risk of facing a natural disaster. According to climate-risk data from ClimateCheck, the majority of homes built in the past two years were built in areas at moderate-to-extreme risk for a natural disaster, including flood, drought, fire, storm, and/or excessive heat. Here are stats on homes built since 2020:

• 45% of those homes face drought risk

• 55% of those homes face a moderate to extreme fire risk, up from 30.1% in the 1990s

• 78% of those homes face a storm risk

• 99.5% of those homes face excessive heat risk

Our take

We all know the inventory problem that's facing this country, so it makes sense that as buyers start building in new areas, these areas may be less than ideal. However, demand remains strong for these “disaster” prone areas due to their affordability, lower property taxes, and access to nature. If you’re working in any of these markets, study the insurance policies to help educate your clients.

Why Americans are flocking to Europe

Europe’s real estate market has never looked so appealing to American buyers. Now that the dollar has reached parity with the euro, American buying budgets stretch 16% further in these countries, making an overseas second home or investment property more accessible than ever.

• The most popular Eurozone markets for American buyers are Paris, St. Tropez, Tuscany, Venice, Barcelona, Mallorca, and Sardinia

• In cities like Paris, Barcelona, Rome, and Milan, home prices have risen less than 4-5%, making these areas attractive compared to domestic homes where prices have been skyrocketing

Our take

When we talk about real estate being the best long-term investment, we don’t just mean US real estate. This is a rare opportunity for buyers with available cash to purchase incredible properties they never could have afforded otherwise. And it gives them two potential chances to see great ROI: as the value of Eurozone properties continues to increase, and if the dollar continues to strengthen compared to the euro. Plus, they get an amazing vacation home in the meantime! The way we see it, it’s a win-win-win.

Household equity makes a huge jump

The Federal Reserve’s Board of Governors recently released a report showing just how much rising prices have helped current homeowners. Homeowners’ real estate wealth is increasing at a staggering pace.

• Household equity in real estate jumped $1.4 trillion in Q1, to $27.8 trillion in total equity

• Overall mortgage debt grew much slower, increasing just $240B in Q1 to $12.8 trillion. This reflects how existing homeowners can roll their home sale profits into their new purchase, reducing their overall mortgage debt.

Our take

More equity than ever means homeowners have more money than ever. That’s incredibly great news because it shows how this market is nothing like the market before the ‘08 crisis. People have a lot of cash they can tap into when needed, which means homebuying budgets will remain strong. To us, this shows that the market will bounce back quickly with very few foreclosures nationwide.

Schematics

The news that just missed the cut

• Check out Hollywood’s top 30 record-setting agents

• These average first-time buyer stats may surprise you

• 5 tips to help your sellers pass their home inspection

• Why refinance activity is down 83% 

• Citi is now piloting its own affordable home programs

• The hottest markets in August are actually affordable

🎧 Rise Above the Ranks

In this week’s Rise Above the Ranks podcast, James & David share their best tips for getting more eyes on your listings:

• Make a plan. Before you list the property, create a plan and timeline. Know when you’re going to post, host the open houses, make your calls, and suggest a price reduction if needed.

• Nail your marketing. Use a variety of marketing tactics to reach the right kind of clientele for your listing. Think: email blasts, phone calls, organic press, open houses, word-of-mouth, social media, paid advertising, and so on.

• Invest in great photography. High-quality photos get more people through the doors, and every person who visits your listing is a potential buyer, new client, or referral!

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

Just in Case

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

Thanks for reading today’s Blueprint and checking out our podcast! We take real reader questions for every podcast and in our Friday newsletters. Have you had yours answered yet? Drop it here for a chance to be featured! 👉 Ask Us Anything (about real estate!)

-James and David

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