At Wednesday’s virtual Inman Connect, Anthony Lamacchia of the Crush it in Real Estate training platform revealed the two most important points to share with clients in today’s market.
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With fall well underway and mortgage rates hovering around 8%, many agents may be having a hard time convincing both buyers and sellers to take action now.
But if you take the time to effectively educate your clients, both you and your clients can open up great opportunities in today’s market, says Anthony Lamacchia of the training platform Crush it in Real Estate. I am.
Lamacchia spoke during a recent Inman Connect session about the two most important points to educate clients if they want to sell in today’s market.
introduce an acquisition
Lamacchia says the first thing to be familiar with is the mortgage rate buyout option. Mortgage rates are at 20-year highs, and while many prospective buyers are patiently waiting for rates to be lowered, many economists believe rates won’t be lowered for some time and remain at the lowest levels that prevailed during the pandemic. I certainly don’t expect it to be lowered to that level.
Current high mortgage rates will become less scary if customers know they can take advantage of adjustable mortgage rates.
“I can definitely say that no matter who is president, no matter what happens, in three or four years, maybe two years, interest rates will be lower than they are now,” Lamacchia said.
This prediction should help convince anxious homeowners who want to sell their home and buy a new one. If they took advantage of the 2-1 buydown, they would have to pay about 6 percent or 7 percent for the first two years of the mortgage, then 8 percent in the third year, if LaMacchia’s claims are correct. , by which point interest rates will be even lower. They can refinance their mortgage.
“These are things that not only do you need to talk about and explain well to buyers, but you also need to explain them well to sellers and buyers,” Lamacchia said.
forward falling speed
The next thing the agency should study this fall is the complexity of seasonality and how it varies from market to market, Lamacchia said.
During the fall market, the housing market slows to a snail’s pace and inventory tends to be low as fewer owners put their homes up for sale, but inventory rebounds significantly along with prices after the holiday season. Before, the competition is similar.
“Every winter, a bunch of buyers come in and say, ‘This is it, this is the year to buy a house,’ and they get very motivated,” LaMacchia said. “Here’s the problem: other companies are doing the same, so they’re competing and there’s a lack of listings.”
While demand begins to decline in the coldest northern markets on November 1st, listings in southern markets do not begin to decline significantly until December 1st, creating competition for buyers in these markets. You will be given a month of opportunity. It’s down, but there’s still stock.
“There’s less competing demand and more inventory,” LaMacchia said. “That’s the time to buy.”
LaMacchia cited two examples from the local New England market. The Worcester, Massachusetts home was listed in June 2022 for $559,000, but it didn’t sell and went off the market in the fall. It was relisted at the same asking price in January 2023 and sold for $570,000.
Another home he cited was listed in Seekonk, Massachusetts, in June 2022 for $279,000. It also failed to sell and was taken off the market, relisted in January for $299,000 and then sold for $320,000.
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