Zillow’s game-changing move?
Plus, 3 ways to generate leads
We’re optimistic about this market!
We believe we’re in a healthy housing market. Here’s why: there’s no inventory! Everyone sitting on their house right now is either all cash or has a ton of home equity and a very good mortgage locked in.
This is a good thing for sellers and buyers! It means that there’s very little bad debt, which equals fewer foreclosures. People are comfortable sitting in their homes, and that’s a big deal.
The last two years made it seem like it was easy to sell homes, but it’s important to remember that the pandemic market wasn’t normal.
Deals will get done in this market, but agents will have to work a little bit harder!
- James and David
Zillow announces new service for sellers
Zillow announced a new service this week that will allow sellers to compare a cash offer from Opendoor to an estimate if they sold with an agent. This service is intended to help streamline the home selling process and remove financial surprises and stress for sellers.
Here's how Zillow's new service works:
Sellers provide public data information on their home, along with any renovations or updates, and Zillow's algorithm provides an open market estimate.
Opendoor provides a second cash offer estimate based on the same information.
If a seller decides to move forward, they either accept the cash offer or continue on the market with a local agent to guide them through the sale.
There’s nothing we can do about Zillow or Opendoor in the market. They are going to do their best to use technology to close deals. We truly believe that only agents in their local market can tell a seller the appropriate price for their home. There’s no replacing that value and personal touch. If your sellers are considering using this service, we think there’s so much value in telling them about the hard work you’ll do to get them the best price for their home.
FHA loans hit highest rate since 2020
More than 15% of mortgage loans issued in December were FHA, the highest share since May 2020. As the market cools, FHA-financed buyers are more likely to get their offers accepted because there is less competition from buyers with higher down payments and more relaxed financing terms.
Here are the key takeaways:
Roughly 7% of mortgaged home sales used a VA loan in December, the highest share since July 2020.
31.2% of home purchases in December were made in cash.
FHA loans are bouncing back quickly in pandemic boomtowns like Las Vegas and Phoenix where the markets cooled rapidly post-pandemic.
If an FHA loan works for your client, that’s great. We want people to buy homes, and these need to be affordable for them. As agents, it’s our responsibility to communicate everything about the home-buying process to our clients, including helping them understand financing options and determining which mortgages they can afford. It’s critical to make the best decision for your client. This is a big decision for them, and we want to be their most trusted advisor!
10 most popular markets for millennials
Across the nation’s 50 largest metros, an average of 52.88% of mortgage offers went to millennials. This generation makes up the majority of buyers in 37 of the nation’s 50 largest metros.
Here are the 10 most popular metros for millennial homebuyers, ranked by mortgage share:
San Jose, CA – 63.57%
Denver, CO – 61.35%
Boston, MA – 60.59%
Seattle, WA – 60.53%
Austin, TX – 59.41%
San Francisco, CA – 59.18%
New York, NY – 57.06%
San Diego, CA – 56.77%
Los Angeles, CA – 56.73%
Washington, DC – 56.35%
To get in front of this generation, you have to speak their language. This means making the most of social media, video marketing, and everything digital. As older generations start to sell their homes, you’ll have a massive opportunity as an agent to create value. Understand the biggest needs of millennial buyers, and find the best zip codes in your market that work for them. Know the inventory and be a wealth of information!
The news that just missed the cut
Advice from James and David to win the day
We know from experience that it can be tough for agents to generate leads and land clients early on, so it's important to know how to turn one listing into many! Check out some amazing ways to generate additional business from one lead and – spoiler alert! – one is door-knocking, which we couldn't agree with more.
Here are three ways to turn one listing into multiple deals:
Door-knock even AFTER the listing is up. Don't stop knocking on doors just because the listing is live! Get out there, let neighbors know the property is on the market, and ask them to send any leads your way.
Make short, shareable videos for the listing. We said it earlier – millennials are the largest group of buyers in many markets, and they're all about digital content. Make short videos that showcase both your listing and your skill as an agent to share across all of your social media.
Get client testimonials. These give you a ton of social credibility and capital, especially as a new agent, so don't be shy about asking clients for them! You can put these on all of your marketing materials, including mailers and social media.
Want to learn more about making the most of your listings? Click to watch the full video.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That’s all for this edition of The Blueprint! If more client outreach is one of your 2023 goals, check out our FREE all-in-one Door-Knocking 101 guidebook HERE. It has all the strategies and scripts you need to level up your door-knocking today.
Have a great weekend, and we’ll see you on Tuesday!
- James and David