The UPSIDE To A Down Real Estate Market

Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? https://whylibertas.com/harris or text Tim directly 512-758-0206

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1 Buyers in the new market now have more choices.  How many of your buyers were sidelined for months or even years, waiting to have more than one house to choose from?  How many buyers opted to not have to be in a bidding war? How many of those buyers also have a home to sell, who told you they would have listed, but where would they go?  When was the last time you spoke with them?

Inventory has inched up over the past 90 days, if only slightly.  Some homes are taking longer to sell, and as days on the market increase, so do the number of choices. 

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2.     Buyers don’t have to guarantee appraisal gaps anymore.  Homes are selling at or close to the list price, not massively above.  No more worries for you about deals dying because buyers don’t have the downpayment PLUS the appraisal difference!  This means each buyer’s savings actually goes further toward a stronger down payment, or keeping more reserve cash.

3.     Sellers actually need you.  Homes aren’t selling themselves anymore, pricing is more challenging, and staging matters.  No more beating down your commission because they really didn’t see your value.  The temptation to be a for sale by owner, or to not be particular about whom they list with, or to list with a discount broker is now waning.  

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4.     Commissions are going up on both the listing side and the buyer's side.  Caring, competent and skilled agents are now in high demand. Fear of missing out (FOMO), plus scary headlines = sellers need your guidance to figure out what is actually going on in the market.  Be the problem solver, the leader in an otherwise confusing market.

5.     Builders love you again.  Commission bonuses are already common, as high as 6% or more paid to buyer’s agents.  If you’re not talking to builders right now, you’re missing out on opportunities for both your buyers and yourself! Identify new construction neighborhoods in your area, visit the model homes, get the list of promotions, and get your buyers the house they’ve been waiting for.

6.     Builders also love buyers.  Most builders are now offering in-house financing with loan buy-down programs, which start at an introductory low rate, adjust 1 to 3 times, and then lock in the rate on year three.  This means buyers can afford more, still get a low rate, refinance later if they wish, and have a new home by the holidays.

7.     Homes are still appreciating, and rents are still high.  Thus being a homeowner still makes more sense than renting.  Real estate is still one of the best, most stable, most predictable investments you can make.  Thanks to inflation, you can still count on between 3 and 5% appreciation, year over year, according to the latest reports from many economists.  Remember that ‘appreciating less’ is different than ‘depreciating’.

8.     When you personally carry more listing inventory, your lead generation becomes easier, not harder.  Having just 30 days on the market changes everything.  Now you have sign calls, open houses, lead follow-up, just listed and sold campaigns, and doorknocking to generate around each listing.  Every listing should produce a minimum of one more immediate listing for you in the same or competing neighborhood when you take advantage of slightly longer days on the market.

9.     No more wonky, as-is contracts for your buyers.  This means more buyers will have confidence in their purchase since they’ll know something about the house they’re trying to buy. Yes, this means YOU will have to have a higher level of skill in negotiating on both the buyer and listing side with regard to inspections.  Refer to our podcast series about how to deal with inspections!  The percentage of buyers who are waiving inspections continues to drop, month over month this year.

TIME CODES

00:00 - Intro
01:49 - Objection handlers
04:04 - Predictions
09:45 - Premier Coaching
12:31 - New construction
16:13 - Gloom and doom
21:00 Pricing and condition
25:14 - FSBO
29:45 - Like and subscribe