What most sellers WON’T want to hear

How to avoid mistakes

Did that headline catch your attention? It definitely would catch ours. We have always looked for ways to avoid making frustrating and, frankly, boneheaded mistakes.

As much as we hate to admit it, sometimes, there is absolutely no way to avoid making mistakes. In every deal, there are thousands of details to mind and boxes to check. It’s almost certain that every agent will miss a few of those from time to time.

But the most important thing to remember–don’t beat yourself up over it. The best way to learn is to make a mistake and figure out what you could do differently next time. So, if you overlook one of those many details, here’s the good news: you probably won’t on your next deal!

If you want more real estate advice from us, check out our very first free live webinar this coming Tuesday, June 20th. Sign up here!

- James and David

Gains in the battle against inflation

Headline inflation grew by 4% from last year, according to the BLS. That’s the slowest inflation growth in two years. As a result, the Fed did not raise interest rates yesterday, although it said it might do so later this year. The Fed also updated its projections for the second half of 2023.

• Interest rates are expected to be higher (5.6%)

• Unemployment rates are expected to be slightly lower (4.3%)

• Headline inflation is expected to be slightly lower (3.5%)

• Real GDP is expected to be higher in 2023 and lower in 2024/2025 (1.2%)

Our take

We are not surprised that the Fed didn’t raise interest rates. What did surprise us was its GDP projection for the year. The Fed now thinks that the economy might grow by 1.2% for the year! It would be an amazing turnaround if that prediction comes true because that was certainly not the expectation at the start of the year. Our fight against inflation isn’t over, but we’re winning. A soft landing genuinely might be possible, but it’s still touch-and-go.

Buyers want move-in-ready homes

75% of potential homebuyers think that improvements to a home are necessary before they are listed for sale, while only 43% of sellers do. That’s according to Curbio’s latest survey of homebuyer and seller attitudes. Here’s a breakdown of what buyers want:

• 67% say they will only buy homes with updated features and layouts

• 68% say their biggest deal-breaker is a home in disrepair with visible wear and tear

• 77% say they won’t even consider a home that is not move-in ready

Our take

This is a strong message to sellers. While sellers may not want to put in all that effort to upgrade their homes, buyers clearly want homes that are move-in ready. We know that upgrading a home can be costly and time-consuming, but sellers need to ask themselves if they’d rather go through that trouble than watch their home sit on the market unsold. Keep these numbers handy. They may help sellers who need a little nudge.

The Best Real Estate Lead Generation Companies

Agentadvice.com released its list of the best real estate lead generation companies for 2023. They based the list on pricing, reviews from real estate agents, and the quantity, quality, and type of leads produced. Here’s their list:

1. Best Real Estate Lead Generation Company: Ylopo

2. Best Overall Lead Gen System (Leads + Supporting Tools): Real Geeks

3. Cheapest Leads: RedX

4. Best For Large Teams: CINC

5. Best for Small to Medium Sized Teams + Indy Brokers: Sierra Interactive

6. Best For Solo Agents: Real Geeks

7. Best Lead Generation for Realtors: Ylopo

8. Best Buyer Leads: CINC

Our take

Our business is built on forging as many connections as we can. Use these services to build your database. Lead generation services cannot replace the hard work of door-knocking, cold calling, and marketing yourself creatively, but they can be another tool in your repertoire. Whatever service you use, make sure you’re tracking your conversion rate. That’s key.

Schematics

The news that just missed the cut

• Check out the real estate CRM built for WINNERS. Visit Boomtown and use promo code BLUEPRINT to get a whopping $750 in FREE digital advertising!

• Cold-calling advice every agent should internalize

• 90% of homeowners have these mortgage rates

• 7 things agents NEED to know about real estate accounting

• Eye-opening stat about California renters

• How to turn a lowball offer into a winning deal

Foundation Plans

Advice from James and David to win the day

Real estate is a relationship business, especially when it comes to how you manage your relationships with clients. Here are three tips:

There are no “past clients” - Forget the “one and done” mindset. Agents don’t have past clients, but an ongoing clientele base. 89% of homebuyers say that they will use their agents again, but only about 15% actually do. This is partly because many agents don’t maintain those relationships. It takes extra work, but that work is worthwhile.

Call your clients - The best way to forge relationships with clients is to treat them as people that you value. Call them on their birthdays, anniversaries, and holidays. Don’t even talk about the “market” or business with them on these calls. Just build trust and a friendship.

Send a monthly market update - Take some time once a month to make a quick video updating your clients on what’s going on in the market. This will help establish you as the premiere knowledgeable broker in your area. Your clients might not watch all your videos, but in the back of their minds, they’ll know they can always reach out to you.

Our colleague Tom Toole has a powerful episode on this topic. We encourage you to listen to it.

Just in Case

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

That’s it for today’s edition.

Remember: we’re hosting a free live webinar on June 20th. From systems and operations to hiring and building a cohesive team, it’s our comprehensive guide to building a modern real estate business. Sign up here!

Thanks for reading, and we’ll see you next Tuesday!

- James and David