Guess Which Buyers Have Joined the Luxury Homebuyer Ranks?

Jun 8, 2023

The media love to promote the idea that our millennial generation is so saddled by student debt that they require a bailout from the American taxpayer.

Guess what? That’s hogwash.

In reality, according to an Experian survey of student loan debt, Gen X and baby boomers, each hold more student loan debt than millennials.

According to a different Experian survey, fewer than half of millennials (42 percent) claim they have never been denied credit. Most surprising is that “… 66 percent of millennials have no student debt at all,” claims the Boston Globe’s Beth Akers.

More important, at least for real estate agents targeting millennial homebuyers, there are more than half a million millionaires in the millennial generation, and “… 93% of them have a net worth ranging from $1 to $2.49 million,” according to Mark Politi at LinkedIn.com, citing Coldwell Banker research.

Recent Engel & Völkers Trend Report surveys find that many have a higher net worth. Of the Americans looking to buy a home for more than $3 million dollars (so-called “peak luxury buyers”), nearly 60% are members of the millennial generation.

The number of younger millionaires will explode with the baby boomer inheritance wealth transfer over the next few decades. And according to the Coldwell Banker Global Luxury study, they will shop for high-end homes.

How can you position yourself to be the go-to agent for this cohort?

Carve out your space on social media

Yes, it takes time, but engaging with others on social media is critical to attracting these luxury homebuyers. Remember, the millennial generation was our first to grow up online.

However, not every social media platform is right for real estate agents. Keep your target market in mind in choosing where to market. For instance, millennials, born between 1977 to 1995, are, in 2023, between the ages of 28 and 46.

Older 40+ millennials are the wealthiest, with the top 1% net worth at nearly $8 million. The top 1% in the 35 to 39 age group is worth more than $4 million. The youngest group’s top 1 percent is about $600,000, according to Levi Rasmussen at WallStreetSurvivor.com.

These statistics should help when choosing which platform to use. Check its demographics to ensure it attracts your target audience.

“There is often a misconception among luxury brands and marketers that digital marketing is incompatible with the luxury industry,” according to Rumble Romagnoli with Relevance, a “… luxury digital marketing agency.”

People believe that UHNWIs [Ultra-High-Net-Worth Individuals] do not engage in social media, do not make online purchases, etc., or that if they do, it is only through super-exclusive social media sites or at private member’s clubs. This is absolutely not the case,” he concludes.

LinkedIn and Facebook are two of the best social media platforms an agent can use to target this audience. You might also consider Instagram ads, Romagnoli suggests.

Concentrate on emphasizing your expertise in both the luxury market and the local real estate market in general.

Erin Nicole Davis, citing an Engel & Volkers luxury homebuyer trend report, adds that “… real estate professionals who provide a personalized, high-touch experience when working with these buyers” will be the winners.

Bonus: You may just end up rolling in referrals!

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts and engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

The Real Estate Marketing Planner is a powerful 12-Month Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

3. The Free Interactive Real Estate Business Plan

The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals. – Click Here

4. The Become a Listing Legend Free eBook

This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

The Most Important Thing to Know About FHA’s “40-Year Mortgage”

Jun 1, 2023

Did you do a happy dance when you read the headlines about the FHA coming up with a 40-year mortgage? Me too.

Until I actually read beyond the headlines.

It’s not a new home loan product on offer, and the operative word in its name that people seem to be missing is “modification.”

Let’s dive into what the FHA is actually offering because it’s not what the media are saying it is.

It’s a mortgage MODIFICATION

“As of May 8, homeowners straining to pay their Federal Housing Administration (FHA) mortgages have another lifeline: the 40-year mortgage modification,” explains Natalie Campisi at Forbes.com.

The program aims to reduce the borrower’s mortgage payment by at least 25%. But, with rising mortgage rates, financial experts caution their clients not to get too excited about the program.

Even “… HUD acknowledges the effect is blunted as interest rates remain high,” according to Campisi.

If you have clients interested in this loan modification, urge them to call their servicer. Their situation will then be evaluated for whichever program fits.

Sadly, too many journalists missed the word “modification” when reading the press releases for HUD’s 40-year mortgage modification program. Homebuyers nationwide are now excited about getting a lower house payment if they can get an “FHA 40-year mortgage.”

As usual, it’s up to real estate agents and loan folks to clean up the mess and set consumers straight.

The best way to get the word out? Through your newsletter, blog posts, direct mail, and social media posts.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

Is Instagram a Good Place for Real Estate Agents to Market for More Listings?

May 29, 2023

A few weeks ago, we promised to update you on the latest social media demographics. We started with TikTok, and today we dive into Instagram.

The criteria we used when choosing the “best” social media options is simple: Those in your target demographic should use the platform heavily. If that includes buyers and sellers, you’ll want to hang out where baby boomers do.

If, on the other hand, you are targeting millennial real estate consumers, we can show you where to spend your time.

Remember, when it comes to marketing your real estate business, targeting is critical. Otherwise, you are wasting both your time and money.

Let’s talk Instagram

Although India leads the world in Instagram users, with more than 225 million active users, the U.S. comes in second, with “… at least 143.4 million active users,” according to DataReportal.com.

Instagram tends to attract a young crowd in the U.S., with ages 18 to 24 accounting for its largest audience share (27.7). The second-largest share of audience is those aged 25-to-34 … to which 25.7% of Instagrammers belong,” according to data from Oberlo.com.

Pay close attention to this statistic: “As of 2022, around 87% of Instagram’s 1.31 billion users who might potentially be targeted with ads are outside the United States.”

If you’re selling international real estate, this statistic may not bother you. But that nearly 90% of the platform’s targeted users are outside the U.S. should be a deal breaker for real estate agents.

Add to that the young age of the average user. There are platforms with far better demographics if you’re looking for potential homebuyers and sellers.

Who you should be targeting

Although we went over this in our last post about TikTok, in a nutshell, baby boomers are the ones buying and selling right now, making up 39% of buyers. According to the NAR, they have overtaken millennials’ share of the buyer pool (28%).

Sellers? Baby boomers again, but Gen X is part of the pool as well. NAR says the typical seller is 60 years old.

So, we’ve struck out with both TikTok and Instagram. But check back because soon we’ll have the winners of which the-social-media-platforms-are-best-for-real-estate- agents contest.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

Take Control of the Real Estate Market Narrative and Keep it Positive

May 22, 2023

“The party’s over for America’s Housing Market …,” blasts a headline from MarketWatch.com.

“Is The Housing Market About To Crash?” asks one at BankRate.com.

This is the real estate news that consumers are hearing daily. It’s quite challenging, in fact, to find positive news.

Even though there is positive news.

It appears that agents who want the good news pushed out to help counter the bad need to take control of the narrative.

If you pride yourself on keeping in touch consistently with those in your CRM, whether by direct mail, social media marketing, or anything else, blasting out the good news is not difficult.

Real estate consumers beg to differ with the media tale

A funny thing happened to the media narrative on its way to becoming an ever-more negative Nellie. Fannie Mae released its Home Purchase Sentiment Index®, proving that real estate consumers are more positive than the media thinks.

“Fannie Mae’s Home Purchase Sentiment Index® (HPSI) jumped 5.5 points to 66.8 in April, marking the highest monthly gain in two years,” Adam Barnes said at TheHill.com.

62% of those surveyed said it’s a good time to sell. This represents an increase of “… 5 percentage points month over month,” Fannie Mae suggests in a recent press release.

Optimism about the housing market from those who will actually be involved in it. Who would’ve thought?

There is more positive news

March was a great month for home sellers. According to ShowingTime, there was an increase in foot traffic through homes for sale (mostly in the Midwest).

The low inventory prevents many would-be buyers from continuing their home searches, so the news that showings increased is very good.

If you have fence-sitting homeowners, share this news with them. And, just FYI, “Not all regions fared the same in March,” according to the pros at ShowingTime.

“The overall increase in showing activity was driven by the Midwest, up 18% from February, and the Northeast, up 15%. The South stayed relatively flat with a monthly increase of 1.4%, and the West dropped 2.7%.”

Your part in the process

Sharing the positive aspects of the market with your potential clients is more important than ever. Blog, post to social media, and create direct mail pieces to grab their attention and fight the negative narrative.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

Is TikTok a Good Place for Real Estate Agents to Market for More Listings?

May 16, 2023

In real estate, as in other businesses, it’s important to remember that you need to know who your “audience” consists of if you ever hope to effectively target them with your marketing. Many agents target “anyone who is breathing,” and that’s understandable.

It was how they generated leads as a newbie. They had little other choice. But, think back to those days. That type of marketing is not only expensive but time-consuming as well.

As we grow into our business, we know better than to shoot arrows and hope something sticks. Target marketing is far saner and more efficient.

Who is your audience on social media? It depends a great deal on the platform, first. Some are chock-full of folks you should be reaching out to, while others simply waste time and effort.

It’s time to update our social media recommendations for real estate agents, and we begin with TikTok.

First, let’s nail down your target audience

While it was somewhat lucrative to target first-time buyers in the past, you may want to change your strategy this year. They made up only 26% of last year’s real estate consumers, which is a huge drop from the previous year’s 34%, according to the folks at the NAR.

With the country’s current wonky economy, don’t look for that number to improve this year.

If you plan on sticking with the first-timers, you’ll be targeting folks in their mid-to-late 30s (NAR calls the 36-year-old “The typical first-time buyer.”)

Repeat buyers are always worth an agent’s consideration because of the very real chance that they also have a home to sell. This target’s age is 59 years.

Your largest buyer pool will be the baby boomers, who comprise 39% of all buyers. Millennials have dropped to 28% of the pool.

Finally, if you’re after listings, stick with older Gen X folks and baby boomers. “The typical home seller was 60 years old,” according to the NAR.

When it comes to social media marketing, spend your time on platforms with the robust participation of baby boomers (folks age 59 to 77).

Does that include TikTok?

Not at all. Let’s take a look at who hangs out on TikTok.

According to the platform’s survey of its users:

80 million Americans are “active users” of TikTok.
The largest share of these users (60%) are age 16 to 24. “80% are between the ages 16-34.”
Although Gen X (age 47-58 in 2023) “is highly active on social media … less than 5% of them are on TikTok,” according to digital content provider Gitnux.com.
Baby boomers are almost invisible on the platform. Those who are age 55+ make up 5.1% of users. Throw in the next youngest demographic (age 45-54), and that number nudges up to about 13%, according to Oberlo.com.

Your TikTok takeaway

Unless you love hanging out there, we believe other platforms are far more worth your marketing time and effort (Facebook is one).

Wherever you decide to market on social media, remember that your post needs to be relevant to your target audience.

Check back soon when we look at Instagram and whether it’s worth your marketing time and energy.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

How to Avoid Job Burnout in a Changing Real Estate Market

May 8, 2023

If your daily “busyness” consists of “… chasing online leads, slamming social media with videos, or banging the phones with cold calls” (thanks, Sarah Long) with limited results, you’re not alone.

And you’re probably a little on the stressed side. Burnout, by the way, is caused by stress.

The first step in dealing with burnout is recognizing and paying attention to it. If you don’t, you may end up in that growing pool of agents currently ditching the business.

And we really, really want you to stay. We are, in fact, your biggest cheerleaders.

What does real estate burnout feel like?

In the words of an agent friend, “It feels like I’m running out of gas, physically and emotionally.”

“Cynicism and detachment … feelings of ineffectiveness and lack of accomplishment” is how Sherrie Bourg Carter Psy.D. describes burnout at PsychologyToday.com.

She goes on to explain some of the symptoms of a full-fledged burnout event:

Restless sleep and feeling tired most of the time.
Being forgetful, unable to concentrate.
Loss of appetite.
Feeling depressed or anxious.
Quick to anger.

Who is at risk of burnout?

According to the Chicago Tribune’s Ellen Jean Hirst, anyone whose work life is filled with “maniacally stressful days” is at risk. She goes on to state that those in positions where they frequently feel out of control are also good candidates for the condition.

Not knowing which way the real estate market will turn and when unsure if and when the next commission check is coming can make an agent feel out of control.

Experts say, however, that women are more prone to stress-induced burnout than men.

Can we avoid burnout?

Reducing your stress level will go a long way in helping you to avoid burning out. “Many stress management techniques are skills that are learned rather than activities we do naturally,” suggests Elizabeth Scott, Ph.D., at verywellmind.com.

Thankfully, there are apps to help you learn these skills. Find a favorite and use it daily. Here are a few to get you started:

Calm (track your moods, meditate)
Personal Zen (science-based app for handling anxiety and stress and developing positive habits.
Insight Timer (“… free app for sleep, anxiety and stress”)

This uncertainty in the market won’t last forever, so get yourself pumped about the future. Plan to join your colleagues at a real estate convention and attend the educational opportunities offered. Or take a vacation. Yes, a vacation.

Take short breaks throughout the workday. Get outside, enjoy some fresh air, and exercise while you allow your thoughts to wander. This is especially effective if you can get into nature, even if it’s just the local park.

New agents might consider a mentor. Is someone in your office willing to allow you to shadow him or her?

A study of real estate agents found that 80% are optimistic about their futures in the real estate industry. You can be, too, if you take care of yourself and curb the stress in your life.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

Introducing a BRAND NEW ProspectsPLUS! Rewards Program

May 1, 2023

The PLUS! Points Achievement System is a rewards program for prospectsplus.com customers.

Customers can earn PLUS! Points by unlocking various achievements, such as making a specific purchase or completing a task.

PLUS! Points can then be redeemed at any time for an account credit at a rate of 1 point = $.01.

PLUS! Points have an expiration date of one year from the date they are converted into an account credit.

Bonus PLUS! Points: throughout the year, we will offer opportunities to earn bonus PLUS! Points by purchasing a postcard from a new series or completing other tasks. Bonus PLUS! Points will automatically be added to your “Redeem” page on Prospectsplus.com once you have qualified.

Get started earning PLUS! Points NOW, CLICK HERE.

How to Get Started

To get started achieving PLUS! Points begin at your account dashboard.

To locate your account dashboard, click on your name in the upper right corner of our prospectplus.com. A drop-down menu will appear, click on “Dashboard” (see screenshot below).

How to View Achievements

From your dashboard, click “View Achievements” in the upper right-hand corner (see screenshot below).

On the Achievement page, you’ll notice locked achievement badges and maybe even some unlocked badges as well. Be on the lookout for new badges to be added in the future.

A locked achievement badge – will be grayed out and has not been achieved yet. Move your cursor over a locked achievement badge, and it will flip over and display what you need to do to accomplish the badge and how many PLUS! Points it’s worth. To get started completing that badge, click the available link on the backside of the badge.

An unlocked badge – is a badge that you have accomplished. It will be displayed in full color. If you place your cursor over this badge type, it will flip and describe what you did to achieve the badge and how many PLUS! Points you earned (see screenshot below).

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How You’re Awarded PLUS! Points

When you complete an achievement within seconds, a badge will appear on your screen with confetti announcing your accomplishment (see screenshot below), and PLUS! Points will automatically be added to your Redemption account.

How to Redeem PLUS! Points

To redeem PLUS! Points or view your balance, click on “Redeem Points” in the upper right corner of your Dashboard page or Achievements page.

On the Redeem page, you will see a breakdown of all PLUS! Points you’ve achieved, what badges you’ve earned, and how many PLUS! Points you’ve redeemed in the past.

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What Home Buyer Incentives Are Most Popular in the Current Market?

Apr 26, 2023

“ 2 in 5 home sellers are offering concessions to homebuyers,” according to data from Redfin buyers’ agents. It appears that gone are the days when buyers felt the need to waive the home inspection and other contingencies just to win the home in a bidding war.

“… 42% of homes sold in recent months offered buyer incentives,” according to the another Redfin report.

Some cities find more buyer incentives than others. Seattle, Las Vegas, Denver, San Diego and Phoenix lead the way when it comes to sellers being willing to give something up to get their homes sold.

Since the chances are good that you may run into a situation where you’ll need to counsel a client about offering concessions, let’s take a look at some of the most popular.

mortgage rate buy-downs
cash for repairs
cash for closings costs
warranties on household appliances.

Offer to pay points

As we all know, one of the biggest disadvantages in the current real estate market is rising mortgage interest rates.

If you represent sellers that just can’t seem to get the home sold within their deadline, counsel them about what is likely the most effective buyer incentive, paying the buyers’ points.

Check this out: “… lowering the buyer’s interest rate can make their monthly payment a lot more affordable,” according to Christy Bieber at Motley Fool.

If they are weighing just lowering their asking price for the buyer, explain to them that buying down the buyer’s mortgage rate is the better deal. Especially for the seller.

Bieber explains that “… if you had a $300,000 house on the market, dropping your home to $280,000 would have about the same impact as buying down the buyer’s rate by 0.75%.”

“But reducing the buyer’s rate that much would only cost you $9,000, so you’d end up about $11,000 ahead.”

This tactic should be reserved for only those clients who need to sell and are having a hard time doing so. Keep it in your back pocket and pull it out if you suspect that it’s mortgage rates standing in the way (if your listing is a starter home, for instance).

Other popular incentives to speak with your client about include:

Pay a portion of the closing costs
Include personal property if the buyer has expressed an interest
Offer to pay for the first year or so of HOA dues
Warranties are always appreciated
Designate a specific amount of money toward repairs “Seller will pay $500 at closing for repairs.”

Offering incentives to the buyer may be a hard pill to swallow for the seller. Approach the topic at the beginning of the selling conversation so that they aren’t caught by surprise and counsel them on the benefits of offering buyer incentives.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

LEVEL UP: Go from One Listing to Market Maker

Apr 19, 2023

Dean Jackson, Founder of GoGoAgent and Listing Agent Lifestyle, states, “Most agents begin focusing on finding a buyer after they get a new listing.”

“Often, the reason agents are only focused on getting listings is because of their belief they need the listing to be able to find buyers.”

But what if instead of matching buyers and sellers, listing by listing, you become a Market-Maker who controls your market?

How incredible would it be to arrive at your listing appointment with a list of buyers you’ve already been communicating with from the surrounding area?

Dean Jackson says, “There’s nothing more powerful than promoting your access to buyers at your listing appointment because you’ve got the very thing the seller wants more than anything.”

“Regardless of who else is competing for this listing, they can’t win when you already have buyers in hand.”

When you begin to see your listing appointments this way, you are changing the game entirely and taking the first steps toward becoming a Market-Maker.

Rent By Number Series is shown above. See more **HERE.**

How to Begin

Create a Renter Prospect List in the area you are currently prospecting using the Demographic Search tool on ProspectsPLUS.com, and launch a marketing campaign to this list.

Then, before your next listing appointment, print out your list in map form. Use the List Management Tool under your ProspectsPLUS!® account options.

PINPOINT YOUR RENTER PROSPECTS LIST ON A MAP

Take your map with you on your listing appointment. Show this map of prospective buyers to your homeowner, and inform them you’ve been communicating with this list
from the surrounding area for months.

“The most essential item you can take with you when going on a listing appointment in a competitive market is access to buyers.”

Then, discuss the high probability that their home buyer is on this list.

“…Specifically, when you factor in the NAR statistic, homebuyers purchase homes within 15 miles of their previous home.”

Imagine the feeling you’ll have selling this listing to your own buyer – that’s a true Market-Maker!

Bottom Line

The most essential item you can take with you when going on a listing appointment in a competitive market is access to buyers.

While other agents discuss what they’ll do to find a buyer once the listing agreement is signed, you stand alone because you’ve already done the work.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The Free Interactive Real Estate Business Plan

4. The Become a Listing Legend Free eBook

How to Determine Market Value in a Transitioning Housing Market

Apr 17, 2023

Depending on the condition of the real estate market, preparing a CMA for a listing appointment can be either a snap or it can cause you to go into a total breakdown.

The latter is an exaggeration, but when a market is in flux, a CMA can be challenging to put together.

In a market with rapidly rising home prices, you’ll find that recent home sale prices haven’t caught up to what is actually happening with current sales. In a declining market, the same is true, and you’ll risk overstating market value.

In a nutshell, both transition markets present a conundrum for the listing agent because “… comparable properties reflect yesterday’s home sales rather than the present market value,” which is higher or lower “… than it was even a few weeks earlier,” suggests Carrie B. Reyes at Firsttuesday Journal.

The CMA

For the benefit of the newbie, in a nutshell, compiling a CMA involves the following steps:

Go through the MLS to find recently sold listings and gather three to five that most match the subject property in age, size, number of bedrooms and bathrooms, and lot size.
In a normal market, you would choose comps that sold within the past six months. In a transitioning market, grab comps that have sold most recently.
Typically, you would restrict your comps to within one mile of the subject property. Again, you may have to adjust this proximity outward in the current market.

A while ago, the experts at Fannie Mae put together a guide for appraisers entitled “Fannie Mae Addresses Declining Market Issues,” a copy of which can be found at AppraisalInstitute.org.

You’ll find that some of the information included addresses how to deal with a more rapidly declining market than we are experiencing right now, but you can also take other useful tidbits from it.

Naturally, if this current market transition isn’t your first rodeo, you’ll sail through the market evaluation process with no problem. Less experienced agents, however, may find themselves in a panic or, worse, end up overvaluing their listings.

This is where a mentor would come in quite handy. Lacking such a goldmine of information, you may want to run your final analysis by your broker to ensure it fits current market conditions.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The BusinessBase, SOI building system

The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks these boxes but is also a business-building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

4. The Free Interactive Real Estate Business Plan

5. The Become a Listing Legend Free eBook

Get Your Market Leaning in by Using These Three Simple Rules

Apr 12, 2023

Before you launch your next direct mail marketing campaign, add these rules to your list of MUST-DO’S.

Rule #1 Provide a Compelling Call-to-Action

Retailers have an easy time using a “call to action.” Offering a percentage off, free shipping, or buy-one, get-one-free are all popular examples.

What about real estate agents, though? What kind of call-to-action can you provide that might compel a postcard recipient to lean in for more information?

The following are a few attention-getting examples that can potentially engage homeowners and get them to request more information.

• Free Buy First vs Sell First Evaluation
• Free Home Equity Analysis
• Free Local Market Stats
• Free Pre-Listing Consultation

The above call-to-actions are included in the Call to Action Series available on Prospectsplus.com.

Remember that when you use call-to-actions in your marketing, the number of hoops your prospects jump through to redeem the offer impacts the response rate, according to Bob McCarthy at DMNews.com.

The more they have to do to receive that offer, the lower the response rate. So make it as quick and easy as possible for them.

Rule #2 Utilize Standout Designs

“One strategy we use to get our highest response rates is to make the call-to-action the centerpiece of the direct mail piece,” McCarthy claims.
Whether you include an image representing the free offer or use text to describe it, mention it boldly and repeatedly.

Your message (its length and graphic requirements) determines the size and style of the medium.

Plan on keeping it plain and simple? A standard-sized postcard may do the trick, although jumbo, panoramic, and mega-sized postcards stand out in mailboxes, making a genuinely lasting impression.

If it is graphics-heavy and you include substantial copy, using one of the larger postcard sizes (jumbo or panoramic) becomes even more important.

Choose a font that is easy to scan as people sift through their mail. As direct mail experts, we recommend using a sans serif font, such as Arial, rather than Times New Roman or another serif font.

Consider varying the font size throughout the text. For example, you can highlight important items with a larger version of the font you choose.

Additional design tips to keep in mind include ensuring your headline is bold and compelling yet short and specific. Use lots of white space to make the piece appear to be easily digestible.

Subheadings are important, as they help guide the reader through the text. Don’t forget to use high-resolution photographs, and avoid placing text over photos.

Last note, ensure that your call-to-action stands out and that your contact information is easy to find.

If you want to save time and ensure you’ve followed the above rule, these crucial best practices have been applied to the Call to Action Series available on prospectsplus.com.

Rule #3 Track Your Results

Tracking your results is vital to your direct mail campaign. One of the most popular methods agents use is creating a dedicated website landing page.

The URL should be unique to the campaign so you can learn your exact response rate (the number of responses divided by the total number of pieces sent). Marketing experts vary when quoting an “average response rate” for direct mail.

The most recent figure puts it at 9%. How close or far you are from that figure depends on how closely you follow the guidelines outlined above.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

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2. The Free 12-Month Done-For-You Strategic Marketing Plan

3. The BusinessBase, SOI building system

4. The Free Interactive Real Estate Business Plan

5. The Become a Listing Legend Free eBook

3 Strategies to Prevent Your Real Estate Deals From Going South

Apr 10, 2023

In recent months, more than 15% of home sales fell through nationwide, according to a Redfin analysis. If you’re a Phoenix, Las Vegas, or Tampa agent, you’re undoubtedly familiar with this, as these cities have the highest number of incompleted real estate deals.

According to a survey from Cinch Home Services, the top 5 reasons for these derailments include:

The buyer walked
The buyer’s mortgage application was denied
Seller backed out
Home inspection issues
The home didn’t appraise

Don’t wait for your deals to start falling apart. Being proactive rather than reactive will help avoid some more common problems.

1. Vet the buyer

According to the aforementioned Cinch survey, 42% of derailed deals in recent month’s resulted from a denied loan application.

Buyers’ agents should thoroughly vet their clients to ensure they qualify for a loan and are prepared to financially complete the deal.

Listing agents might want to consider requesting “… a recent pre-approval letter from the lender, written within the last 30 days,” suggests a Boulder, Colorado agent at realtor.com.

Additionally, ensure that the buyer has a lock on the interest rate. “Buyers that have a mortgage rate lock are more likely to close the purchase versus those that still need a rate lock,” according to zondahome.com’s chief economist Ali Wolf.

Jason Gelios, author of “How to Think Like a Realtor,” offers up some signs for a listing agent to be on the lookout for that might indicate that the buyer isn’t as strong as you might hope. These include:

A small down payment
Requests for credits or concessions from the seller
A pre-approval letter from an unfamiliar lender

2. Tighten up those contingency timelines

Not too long ago, we were engulfed in a hot, hot, hot sellers’ market, so much so that the word ‘contingency’ almost became obsolete.

“Now, the supply and demand balance has changed,” Aly J. Yale at money.com reminds us. “Buyers have leverage, ushering in a new age of contingency-laden deals.”

“Homebuyers now will agree to buy a house and be doing the inspection, and then back out because they found another home they love more,” cautions a Redfin agent in Las Vegas.

Before accepting a contract, counsel your client to counter with a request to shorten any overly-long contingency timelines. The less time the buyers have to shop around for another home while still under contract on your listing, the better.

3. Consider a pre-sale home inspection

Nearly 40% of failed real estate deals can be blamed on home inspection results.

We get it: Many agents hesitate to recommend a pre-listing home inspection to their clients. Some say it’s because it presents additional disclosure items. Whatever the reason, the truth about the home will come out in the buyers’ inspection report anyway.

Be proactive so your client has the full picture of what she’s facing when the buyer’s inspection results come in. This allows your client to fix or replace anything you’re sure will be an issue for the buyer.

At the very least, you’ll have time to strategize how to handle negotiations if there are problems with the home.

PLUS: When you have time…below are some marketing tools to help support your success.

1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card! – Click Here

2. The Free 12-Month Done-For-You Strategic Marketing Plan