Buyers and renters return to the city
Plus, give thanks… for these holiday real estate tips
Good morning!
We'd tell you Thanksgiving is the perfect time to give thanks for your family and friends, but since this is a real estate newsletter, we're going to remind you to give thanks for those important people we call "clients". Here are four easy ways to stay in touch and relevant to your past clients:
Call them with a well wish and a bit of market news
Post a festive video to social media and tag the clients you’re thankful for
Send them a personalized email with your gratitude and an industry update
Send a thoughtful gift with a thank you note
Remember, a holiday is a great reason to reach out to past clients. And hey, you might pick up a referral or two... and that will just be another thing to be thankful for.
- James and David
Today's Blueprint:
Cities’ not-so-warm welcome back
Explaining iBuying in 30 seconds
Demand is building for new construction homes
How to sail through your next listing presentation
Returning urbanites face city sticker-shock
At the start of the pandemic, droves of city residents sold their downtown homes or broke their leases in search of wide open spaces and a dedicated home office. But as the small town charm wears off (and companies call their workers back to the office) urbanites are now looking to return to NYC, L.A., and other major metros. Unfortunately, many have been priced out of their old stomping grounds.
Enter: Wild surge in many major metro’s rental and housing prices. In Seattle last month, median rent was up 15.4% YoY. Rates jumped 18.9% YoY in New York. And the competition in the housing market is just as stiff. In Manhattan, Q3 saw the highest number of homes sold in over 30 years.
Our take
Since many renters are getting priced out of cities, you can help them explore untapped potential right outside the area. Be ready with backup options for adjacent hotspots and smaller neighborhoods, and a list of reasons why these more affordable areas are worth considering. Note: these signals show that people still have confidence in the market and a hunger to buy, even as we approach the end of the year.
BTW, what is iBuying anyway?
iBuying | “i-bi-eeng” | Verb
def. When a real estate company skips the agent and works directly with a seller, offering them cash for their property. Also, how 1% of homes nationwide were sold in September.
How it’s different:
Uses an algorithm to determine offer price. On average, it’s 0.22% below market value.
No concessions (inspections, warranties, upgrades) are requested
No open houses or bidding wars
The “i” stands for instant. These easy breezy cash transactions can take just days.
Once the iBuyer has purchased the property, they usually relist it on their own platform. While the practice is still fairly new, experts believe it will only keep expanding as people become more comfortable with the technology.
Our take
Real estate is very much relationship-driven. The average person just doesn’t know the intricacies of the market. That’s why an agent is so important. The information you carry is priceless, and iBuyers don’t have access to the depth of local expertise and experience that you do. iBuying really only works for a specific type of buyer, like someone looking for a quick deal on a simple transaction.
Finally, some good news in the homebuilding industry
Even though the home building industry has been struggling, demand for new construction surges on. According to the NAHB/Wells Fargo Housing Market Index, Homebuilder confidence in the market just hit 83 points. Any score above 50 is good news. Builders haven’t been this confident since early last summer, when COVID sent lumber and other input prices to record-breaking levels.
But there are still other obstacles to clear. Materials are expensive and scarce, while supply chain disruptions cause delay after delay. Robert Dietz, Chief Economist of the National Association of Home Builders (NAHB), says there are over 330,000 open positions in the construction industry, and the lowest availability of lots in several decades. In short, it’s never been this tough to build a home.
Our take
Establish a relationship with a few highly productive builders and developers as soon as you can. Become the go-to agent when they’re ready to sell. That kind of partnership that will pay off big time in the coming years.
Schematics
The news that just missed the cut
The five major NAR changes you need to know about
This 2022 housing forecast predicts favorable rates and strong growth
These three $1.8M homes have v strong personalities
Buyers say out with the old (floorplans) and in with the new
What Not to Wear: Agent Edition
Foundation Plans
Advice from James and David to win the day
So you’ve landed a listing presentation with a potential seller. How do you take that client from “shopping around” to “signed, sealed, and delivered?” Nail your next pitch with these three tips:
Get creative: When it comes to delivering your pitch, don’t be afraid to think outside the box. A printed lookbook, interactive video presentation, or personalized touch goes a long way.
Show your past wins: If your last marketing campaign went well or you had a particularly successful open house, show them the numbers. People want to see what you’ve done, not just hear what you can do.
Bring the data: Explain to your potential client why you’re proposing that list price. Let them see your expertise. Show them you know both the real estate industry and your local market.
Want more? Check out all 10 tips for nailing your listing presentation here.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
The Blueprint may be taking Thanksgiving off, but that’s no reason for you to take your foot off the gas this week! Keep closing deals, making connections, and honing your skills. In this world you gotta do what others won’t so you can have what others can’t!
- James and David