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- James and David
Zillow lowers its home price rise prediction
San Francisco: https://bit.ly/3PGKVDF
Zillow now predicts that home prices will rise nationally by 4.9% by August 2024, down from its previous prediction of 6.5%. That’s according to the company’s latest forecast of its Home Value Index. Here are other key takeaways:
Zillow expects tight inventory conditions and elevated mortgage rates to continue to limit sales volume into the first half of 2024
Zillow expects 4.1 million existing home sales in 2023, slightly from last month’s prediction of 4.2 million. This would be an 18% decline from 2022.
Our take
If there ever was a sign that we are out of the pandemic boom, this is one of them. We can’t remember the last time Zillow made a downward revision to one of its projections. But they’re not alone. This is in line with what most forecasters are predicting. Next year is going to be another year of home price growth, but unless people get used to elevated mortgage rates or mortgage rates (...somehow) fall dramatically, sales volume is going to be slow. Homes are going to get sold and deals will get made, but we’re going to have to really work for them as agents.
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Homebuyers back out of purchases at eye-popping rate
Redfin: https://bit.ly/3PmTkuG
In August, potential homebuyers backed out of home purchases at the highest rate in almost a year, according to a new report from Redfin. Nationwide, almost 60,000 home purchases fell through, representing 15.7% of the homes that went under contract during the month. That’s up from 14.3% a year ago and marks the highest percentage since October 2022, when mortgage rates surpassed 7% for the first time in two decades.
Top 10 metros with the highest home purchase fall-through rates in August:
Jacksonville, FL (26.6%)
Atlanta, GA (23.7%)
Las Vegas, NV (23.6%)
Fort Lauderdale, FL (23.1%)
Orlando, FL (23.1%)
San Antonio, TX (23.0%)
Tampa, FL (22.4%)
Fort Worth, TX (21.7%)
Houston, TX (21.5%)
Riverside, CA (21.1%)
Our take
This is certainly a frustrating report to read. It reminds us about the importance of transparency and honesty in closing a deal. We know there are certain fluctuating factors that agents can’t control, like mortgage rates and their impact on affordability, but agents can help their clients’ understand what they’re getting into BEFORE bidding on a house. It’s so vital to make sure they have 100% clarity on every aspect of home buying and what costs they should expect. This is our duty to our clients and our industry as a whole.
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RE/MAX settles for $55 million!!
RE/MAX is the latest brokerage firm to settle a pair of major buyer agent commission lawsuits, further reducing the number of defendants heading to trial. In court documents filed on Sept. 18, RE/MAX indicated it had reached a settlement agreement with the plaintiffs in both the Sitzer/Burnett and the Moehrl class action cases. The settlements are subject to the judges’ approval.
Here is a quick summary:
RE/MAX’s settlement agreement covers both the Sitzer/Burnett and Moehrl cases.
Along with paying $55 million, RE/MAX will also make “massive changes” to its practices around buyer agent commissions.
The National Association of Realtors, HomeServices of America and Keller Williams are the remaining defendants in both cases.
The Sitzer/Burnett trial is set to begin Oct. 16, while a court date has not been finalized for Moehrl
Our take
Both the RE/MAX and Anywhere settlements have been huge. But, so far, we don’t exactly know the implications they will have on buyer agency. With only a month left before the trial, we will continue to update you on this settlement and any further developments related to these class action lawsuits.
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Schematics
The news that just missed the cut
Source: https://bit.ly/3ELpET8
Chris Pratt’s Pacific Palisades mansion lists for $32 million
5 tips for better listing photos
The 10 least expensive states to own a home
MBA’s updated forecast for mortgages
6 ways to level up your “just sold” posts
Foundation Plans
Advice from James and David to win the day
We talk a lot about the value of prospecting and cold calling to find amazing opportunities that other agents have passed up. Today, we’d like to offer you some guidance on how to dial your way to securing new leads and deals.
Invest in a prospecting dialer – This is a software tool that scours your MLS and pulls the phone numbers from FSBO listings and canceled or expired listings. You set the parameters and the dialer calls the numbers for you, saving you considerable time searching and manually dialing.
Set aside dedicated time every week – We recommend spending at least two hours, three days a week on phone calls. Use part of that time to keep up with your follow-ups, then devote the rest of it to your cold calls.
Be ready to start your script when the prospect answers – Write out and practice every part of your script from the initial hello to your strong close, so when the call connects, you’re more than ready.
Always have a next step ready – Don’t end a call without having a next step in place. That could be a scheduled follow-up call, an in-person meeting, or a full listing pitch.
To learn more about incorporating dialers into your prospecting game, start here.
Q+A
You ask, James and David answer!
Q: Any tips on how to overcome anxiety? As you know, people can be awfully rude at times. I would like to know how you deal with it.
A: We always try to keep in mind that our clients are making probably the biggest investment of their entire lives, so there are going to be times when tensions run high and emotions get the best of them. But we don’t take it personally. We let their comments roll off, keep doing our absolute best in every situation, and just keep moving forward!
We’ll be back next week with another answer to a real reader question. Submit yours here!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Mortgage News Daily
As we are in the home stretch for this year, don’t let the enormity of everything you have to do as an agent overwhelm and paralyze you. Break down what you need to do into small manageable tasks, and then execute! Neither your plans nor your journey is going to be perfect. Just start and optimize as you go.
That’s a wrap on today’s Blueprint! Thanks for reading, and we’ll see you Friday.
