Why some unfamiliar buyers could be heading your way

And it’s gonna be a closeout!

Grace Townsley
November 16, 2021

Okay, we see you Bezos! The Amazon founder, and second-richest man alive, just picked up a sprawling Hawaiian estate complete with a private white sand beach and 700-square-foot circular pool. With the ocean on one side and dormant lava fields on the other, now that’s what we call “prime” real estate. 

TODAY'S BLUEPRINT

  • Open borders? More like open season! 
  • Another quarter, another price spike
  • Don’t expect CoStar to share the spotlight

Goodbye travel ban! Hello home sales!

Source: The Wall Street Journal

Who is flush with cash, eager to buy, and just booked a ticket to the states? Thousands of vaccinated visitors from 33 countries around the world. With the United States travel ban lifted as of November 8th, agents in the hottest luxury markets—think Miami, NYC, and LA—are booked solid with showings for foreign buyers. This rush of demand is expected to drive prices up even further in these popular cities. 

Many of these buyers have been hesitant to buy sight unseen. From April 2020 to March 2021, foreign purchases of U.S. homes dropped 27%. This is the first chance buyers have had to tour stateside properties in 20 months. Their return to the market could generate tens of billions of dollars in additional sales next year.

Our take

This is a great opportunity to reach back out to your potential sellers and tell them: It's time to get off the fence and put your property out there! There is so much pent-up demand just about to be unleashed on the market. We’re seeing a whole new massive group of people on the hunt for fresh listings. 

It’s a seller’s world. Buyers just live in it.

Source: Forbes

There’s no question your sellers have had it pretty good lately! In Q3, prices rose in 99% of the 183 markets tracked by the National Association of Realtors. Of these markets, 78% saw staggering double-digit price increases. In plain terms, price increases have made the average home $50,300 more expensive this year. 

For your buyers, there is a light at the end of the tunnel. While prices in most metros aren’t expected to drop, their ascent does appear to be slowing. With interest rates on their way up and inventory growing, rising prices will likely level off in 2022.

Our take

The forcasted price drop off isn’t a bad thing. Really, it’s a sign of a self-correcting market healthy enough to adjust without crashing! When you see prices lag, look for ways to create your own opportunity. When you see other agents give up, that’s your chance to work harder, smarter, and faster. 

CoStar is stealing the show

Source: The Real Deal

Step aside Zillow, there’s a new kid on the block. You may know CoStar as “The Artist Formerly Focused on Commercial Real Estate." Lately the company has been staking claim on the residential market in a major way. Here’s a brief history of what’s gone down.

  • Merge: CoStar buys Homesnap, a search portal in direct competition with Zillow.
  • Buy: CoStar acquires the domain houses.com. If that’s not the most obvious signal of their residential market aspirations, what is?
  • Intimidate: In an interview last winter, CoStar CEO Andy Florance called out Zillow for short-changing and squeezing out agents. Ouch.

Who will win the fight between CoStar and Zillow? Let’s watch and find out. 

Our take

As an agent, you’ve got to be willing to keep up with the times. The growth of these mega companies proves technology is the future of real estate. Stay relevant and stay aware of what these big players are doing. Your clients will be using these tech platforms, so use them to your advantage too! 

Foundation Plans

Source: Forbes

To be a successful agent, you’ve got to be one-part charming, one-part killer closer, and one-part business savvy. We can’t help your charm factor, but we can give you a few business tips! 

  • Make a business plan. Q4 is the annual planning season! Review your activities over the past year and set your goals for next year. What are you aiming to achieve? How can you improve?
  • Watch your costs carefully. We’re talking marketing, materials, and event costs. These can eat into your profits fast. 
  • Use a CRM. If you’re tracking clients on napkins and post-it notes, it’s time to join the 21st century. It doesn’t have to be expensive, but find a software that works for you. The longer you’re in this business, the more this organizational tool will pay off. 

Schematics 

Source: Redbubble

Just in Case

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

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Don't listen to the noise in your head telling you that you can't do something, it's nonsense. We believe in you, now let’s get it done!

-James and David

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