April 29, 2022
How we approach networking
James here. A lot of people ask me how we started meeting potential clients back when we were first getting into the luxury market. Did we hand out business cards everywhere we went? Did we go to all those networking events and meet new people?
I have to tell you, I have never been that person who walks around with a stack of business cards in his pocket! For me, I think it has to be organic. Being yourself is all that matters. Have confidence, know that you have what it takes, remain authentic and greatness will come. Don't rely on gimmicks.
If I go to a networking event, I know I’m not going to meet anyone there because there’s 50 other people in the room doing the exact same thing. It’s too hard to stand out and make meaningful connections. I’ve just never enjoyed them or found them to be successful.
Get up and do your best every day. That’s how I’ve found my best clients and made meaningful connections. It’s all about being in the right place at the right time, which means you’ve got to get up, get dressed, and get out there!
Home prices and interest rates aren’t the only climbing costs for today’s buyers. According to data from CoreLogic, closing costs hit an average of $7,000 for a typical single-family home. That’s a YoY jump of 13.4%.
Why the steep increase? Lenders started raising their fees last year to help cover growing loan expenses and to compensate for decreasing loan volume. Tight inventory and higher prices meant the average lender processed fewer loans at a higher cost than in prior years, and buyers started paying for it.
Tell your buyers to shop around before they settle with one lender. Some mortgage brokers are charging more for loans which raises borrowing costs. Your buyers can actually apply through several different lenders, let those lenders know they’re shopping around, and potentially get a better deal.
Due to the low housing supply and surging home prices, an increasing number of millennial buyers are using “house-hacking” to be able to afford their first home. House-hackers are essentially live-in landlords. They rent out portions of their homes to vacationers who book via Airbnb and other platforms. According to Airbnb, new hosts made an average of $9,600 last year. With home prices on the rise, this additional income is helping millennials buy homes they otherwise couldn’t afford
Overall, this is a really smart strategy to help buyers get into their first homes. It means they’ll have more streams of income and will build equity in their property. This strategy is best-served for homeowners who live in a walkable area, have a private entrance for guests, and other amenities that make it a strong short-term rental listing.
It’s that time again… time for Realtor.com’s emerging cities report. This report scores the 300 biggest metros on factors like home prices, inventory, local wages, average commute, property taxes, and a host of other data points. In Q1, the top-ranking metros had better wages and commute times, plus faster home sales than the overall market.
Top 10 emerging metro areas of Q1:
Several of these cities are big vacation destinations. With travel restrictions lifted and more people looking to snag that second home before rates skyrocket, it’s no wonder these areas made the list. If you’re near one of these emerging markets, keep networking to build up your referral partners! When people are looking to move into these metros, you’ll want to be positioned as one of the top local agents in the area.
The news that just missed the cut
Advice from James and David to win the day
What makes an open house really strong? Here are our top tips:
You ask, James and David answer!
Keep the latest industry data in your back pocket with today’s mortgage rates:
As the month comes to a close, take a moment for some self-reflection this weekend. Are you where you want to be in your business? What’s going well and what needs to change in May? What can you stop and celebrate? Intentional reflection like this gives you the opportunity to recalibrate, quickly and often!
Have a great weekend!
- James and David
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