Grace Townsley
November 23, 2021
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:
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
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.
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.
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:
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.
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.
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.
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.
The news that just missed the cut
Advice from James and David to win the day
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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:
Want more? Check out all 10 tips for nailing your listing presentation here.
Keep the latest industry data in your back pocket with today’s mortgage rates:
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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
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