The Best Time to Buy a Home? This Week...Really!
Recent data from Realtor.com found that the week of September 25-October 1 is ideal for would-be homebuyers to make their move.
Specifically, a combination of seasonal and 2022 post-pandemic market conditions, combined with up to 46% more active listings than the year's average so far, add up to some serious buyer incentives.
Although buyers who wait may (or may not) find lower home prices in the future, purchasing earlier may provide them with more choices. Therefore, you may want to contact prospects and discuss their priorities. Those waiting for more inventory may want to act now, while those waiting for lower property prices may want to postpone for a month or two, since home prices tend to decrease in December.1
Use the 10% Planning Rule to Increase Productivity
If you're busy building productive work systems that will help you manage your time successfully, it's easy to get so bogged down in building systems that less work gets done. If this sounds familiar, relax…you're not alone.
It's why mental health guru Neil Hughes recommends spending no more than 10% of your time on systems-focused activities like list making, research, and color-coded Excel spreadsheets. The other 90% of your time should be spent using them. His philosophy: while planning is an important tool, they're ultimately no substitute for hard work…something you're already familiar with.2
Four Ways to Convert More Real Estate Leads
The quality of your leads is always a top priority, especially in today's evolving housing market. However, buying expensive leads is never a guarantee that you'll increase your conversion rates. Here are four ways you can convert more real estate leads:
Decide how you want to manage calls.
Designate a certain amount of time for making follow-up and cold calls. If you have a team, you can determine which calls would benefit from your personal touch and have someone else help you with the others.
Pay close attention to your website leads.
If you have a website, prioritize the leads that sign up online. You already have a strong basis to build the relationship because they've taken the time to reach out directly.
Find ways to regularly engage with your leads.
Whether it's through email, text, or social media, find ways to engage with your leads on a regular basis. For example, you can ask team members to help you or even have your virtual assistant manage all your leads on social media.
Never give up on a lead.
Don't give up on a lead unless they plainly state they won't work with you, or no longer need your services. Be consistent in their lives. When they're ready to act, they'll call you and no one else.3
Three Don'ts to Share with Buyers to Ensure They Close
Some home buyers inadvertently create stress for you and their lender before their financing closes. It's why many seasoned agents coach their clients upfront on what they should never do. Here are three don'ts to share with buyers to ensure they close:
Don't buy a new car before closing.
Purchasing a home can result in a lot of excitement for your clients. Some may think that another major purchase will complement their new home. But large purchases, such as new furniture or vehicle, could disqualify them for a mortgage by lowering their FICO score. Tell them to wait until they close to make big purchases.
Don't make large bank deposits.
Underwriters are reviewing your clients' bank accounts throughout the mortgage process. Any large deposits will require letters of explanation because they're considered 'red flags.' It's better for buyers to avoid any large deposits, or suggest they speak with their loan officer for advice.
Don't apply for credit.
When lenders are working to verify a borrower's income, they look at their debt-to-income ratios and pull credit. Tell clients to avoid opening any new lines of credit before closing, as it could increase their mortgage's interest rate – or worse, they may no longer qualify for a loan.4
This Year's Housing Market Trends
The arrival of the COVID-19 pandemic led to unexpected sky-high property prices and unprecedented growth, based on data from the National Association of REALTORS® (NAR) and second home specialist Pacaso. Here are five of their top housing market observations for the remainder of 2022:
Home financing is more flexible.
NAR found that 96% of homebuyers had their mortgage applications approved in 2021 because, in part, home financing guidelines were approving more potential buyers.
First-time homebuyers are trending.
Homebuyers purchasing for the first time made up 31% of all buyers in 2021 who traded in their rental for homeownership.
Buyers see real estate as the best investment.
About 42% of homebuyers believe that real estate is a better investment than stocks.
Home prices grew astronomically.
Pacaso found that the cost of primary homes grew by 134% between January 2020 and January 2022 alone.
Demand for second homes took off.
NAR findings revealed that demand for second homes nationwide grew by an astounding 99% between 2015 and 2020.5
Sources: 1realtor.com, 2theamericangenius.com, 3rismedia.com, 4theclose.com, 5pacaso.com
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