Huge opportunity coming for sellers

Find opportunities in the chaos

After this past week’s SVB collapse and the fallout that ensued, the headlines can feel daunting. But like we always say – there’s no need to fall into the trap of letting negative news consume us.

We believe there’s always opportunity in chaos. A down-shifting market or recession can be a perfect opportunity. When everybody is reeling, that’s when we shift ahead.

Try to find those opportunities. We know that this is easier said than done. But make sure to recognize the opportunities that come your way, be gutsy, and go after them.

Now let’s get after it!

- James and David

Seller concessions hit record in February

Home sellers gave concessions to buyers in 45.5% of home sales during the three months ending February 28, according to Redfin. This is up 31.1% from one year ago and represents the highest share of any three-month period since June 2020.

A record 13% of home sales included both a price cut and a final sale price below the list price, in addition to a concession.

Here are the five metros with the most home sales with concessions:

1. Las Vegas (77.4%)

2. San Diego (74.8%)

3. Sacramento (70.9%)

4. Phoenix (63.7%)

5. Denver (60.9%)

Our take

This is great news for buyers! As an agent, it’s crucial to understand what concessions your local market is seeing to determine the best negotiating tactics. This is a market where deals are getting done, as we’ve said, but not without great effort. Putting in the work is crucial right now because you’ll have to work diligently with agents on the other side to get that deal done.

Why experts say April will be the best time to sell in 2023

According to realtor.com, the best time to sell this year will be April 16-22. Sellers who list their homes during this window could boost their sale price by as much as $48K, if they come prepared with quality repairs, high-ROI updates, and strong marketing.

Here are the historical factors that make mid-April the best time to sell in 2023:

• Higher home prices – Homes listed this week are priced 2.1% higher than the average week and 12.% higher than the start of the year.

• Strong buyer demand – Homes listed this week had 16.4% more views than the average week and 32.5% more views than average in 2022.

• Less seller competition – Active inventory at the start of 2023 was 65.5% higher YoY but 43.2% lower than pre-pandemic levels, which means less seller competition.

• Faster sales times – Homes have historically sold 18% faster this week than average, and experts also expect faster sales times this year despite lower buyer demand.

Our take

This is incredible information to use in a cold call, email, or social media post. If you’ve had sellers on the fence for any reason, make sure to share this with them. Get them prepared to list their house by advising them to make those repairs and declutter. As rates drop due to the SVB collapse, buyers will start to emerge. This could be a perfect storm for the housing market!

New runner-up for most valuable market

California’s housing market remains the nation’s most valuable, according to a new Zillow report. Real estate in the Golden State reached $9.5 trillion last year, representing 19.5% of the national total. Florida moved into second place, edging out New York for the first time. Florida has eight of the ten fastest-growing housing markets in the country.

Here are the 10 states with the most valuable housing markets:

1. California ($9.5T)

2. Florida ($3.6T)

3. New York ($3.3T)

4. Texas ($3.2T)

5. Washington ($1.6T)

6. New Jersey ($1.63T)

7. Massachusetts ($1.58T)

8. Pennsylvania ($1.48T)

9. North Carolina ($1.34T)

10. Virginia ($1.28T)

Our take

Of course, we love to see California on top of this list, but it’s also great to see this list overall. It’s wild that Florida surpassed New York, but makes sense with the moves we saw during the pandemic. When we see lists like this, we’re reminded that real estate is an industry that we’re grateful to be in. As agents, there’s so much opportunity for all of us, and we can all get a piece of this big pie!

Schematics

The news that just missed the cut

• Peek inside Jim Carrey’s $28.9M LA mansion

• Check out Open AI’s multimodal GPT-4 

• Why real estate ETFs are up after banks collapse

• Real estate experts share top social media tips

Foundation Plans

Advice from James and David to win the day

Tax time is a month away! For a lot of agents, navigating self-employment taxes is incredibly stressful, but it doesn't have to be. Find a good accountant, and don't try to file your own taxes – trust us on this! Our friends at BAM put together an amazing guide of Dos and Don'ts for agents at tax time, along with great advice on how to get the most out of tax time.

Here are three ways to maximize your tax return:

• Take advantage of ALL deductions. Agents can save a ton of money at tax time by claiming all the deductions they qualify for. This can include home office expenses, travel for work, networking events, and marketing.

• Check your entity structure. This is something agents should do every year to make sure you're in the most tax-advantaged structure possible. If you started as a sole proprietorship, it might be time to incorporate as an LLC. If you've got an LLC, talk to a professional about whether it makes sense to switch to an S-Corp.

• Avoid over-expensing. As agents, this is an easy trap to fall into! We want to make a perfect first impression with clients, so we treat them to lunch or drinks that are tax-deductible. This is fine, but doing it too often can put agents in a financial pinch. Look for financially sustainable ways to show clients and leads that you're the best choice!

Want to learn more about getting the most out of tax time? Click to read the article.

Just in Case

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

That’s all for this Blueprint! Remember, don’t dwell on the negative news and uncertainty. Deals are still happening, so make some calls, door-knock, and find the opportunities in the chaos.

Have an amazing weekend, and we’ll see you Tuesday!

- James and David