Here at Inman, May is the month of fees and rewards. We cut through the noise and misinformation and provide you with the latest facts and strategies on how to thrive after the commission’s settlement. Also, get updates delivered straight to your inbox with Inman’s new weekly digest, “Commission Chronicles.”
Success begins with the belief that we can understand what is going on and provide our clients with the information they need to make the best decisions for themselves. His CEO at Keeping Current Matters, David Childers, shares action steps and talking points to recalibrate your mindset for success.
Mr. Childers began by saying: “Perhaps the biggest battle agents currently face is mindset.” [with] everything that came out of it [National Association of Realtors] Questions about the settlement and what the situation will be when the anticipated changes take effect.
“This begs the question of who are you listening to? Are you listening to what the media says, what the fearful people are saying, or are you focusing on the facts? Because when you start looking at the facts, you are told a different story than the one that is often told. Be careful who you listen to because who you listen to determines how you think and act. please.”
How to change your mindset
Mr. Childers shared that the first step in establishing a success mindset is to build a sound market opinion based on facts. Mr Childers said: “Are prices going down? What do you think about mortgage rates? What do you think will happen over the next six months?”
Answer these questions in one of two ways. The first is “I don’t know” or “We’ll have to wait and see.” The second question is, “Can I share some of the things that I discovered and what I believe will happen?” Once you have a sound, fact-based market opinion, it’s no longer yours. ‘s opinion and ceases to be their opinion. It’s their opinion and facts.
He suggested agents leverage data to provide prospects with the best information possible. He divided the frequently asked questions into three categories: pricing, number of transactions, and interest rates.
Price prediction is positive
Childers said all agents need to be aware of current pricing trends. “While local-level prices may differ from the national average, the seven forecasters we follow at Keeping Current Matters predict a national average price increase of about 2.5% this year. However, these predictions range from flat to a 5% increase.
Agents need to understand both national and local numbers when it comes to pricing. For agents, forming an opinion based on local price trends is critical to success, but when a potential buyer or seller turns on the TV at night, knowledge is available on a national level. Masu.
So, what you want to say is:You may have heard about home prices on a national level, but let’s talk about what happens on a local level as well. ” At that point, please share this slide about the national number along with the data you printed at the local level.
Showing how steady price appreciation can increase property value is another way agents can serve as educators and provide buyers with an expert perspective. This chart shows Fannie Mae’s estimated home price performance over the next five years. Housing price forecast survey.
Showing these percentages can be helpful, but it’s even more valuable to have a visual representation of what these projections mean in terms of home equity. The next slide shows the potential growth rate of his equity over the next five years based on his $400,000 home purchase in January 2024 and the price increase predicted by the Home Price Expectations Survey.
“An agent’s ability to provide sound, fact-based pricing opinions is exactly what prospective buyers need in today’s environment,” said Childers.
Forecasts for number of transactions are promising
The next thing we discussed was the forecast for home sales in 2024. Childers said: “As the graph shows, projections range from an estimated 4.9 million homes sold in 2024 to 5.4 million homes sold in 2024. This year is going to be a busy year for transactions. The question is: It’s about how much market share we want to gain.”
We are in a demand-based pricing environment
When asked about mortgage rates and their impact on transaction numbers, Mr Childers said: “The current market is a demand-based interest rate environment. We believe 6.5% is kind of the dividing line between limited to weak demand and good to strong demand. .
Most consumers realize that it’s very unlikely that we’ll ever be in a situation like we were two years ago when interest rates on 30-year mortgages were 3%. So we’re looking at a few things to assess what the future holds.
We’re watching what economists are saying about the 10-year Treasury rate and what the Fed is saying about the timing of the expected cut in the federal funds rate.
Based on economists’ input, we expect the interest rate environment to improve in the second half of this year. Most of the forecasts are showing improvement, with rates expected to be in the 6% range and possibly 6.5% by the end of the year.
When you share this information with potential buyers, they often say, “Okay, I’ll wait for interest rates to come down.” But that’s what others are saying as well. This can cause prices to rise and increase competition to buy homes that are on sale at the time.
“Given this, it may be wise for buyers to buy their home now, rather than waiting for expected lower interest rates or increased competition for a limited number of homes to sell.”
The more things change, the more they stay the same.
“In our world, everything has changed, but nothing has changed. Things have changed in terms of the NAR settlement and things that affect the way we do business. But being an educator Nothing has changed in terms of the need to go into the market with a sound market opinion based on facts. The value of being an educator is increasing. So our job is to be active in the local market and share the facts, not someone else’s opinion,” Childers said.
“When questions arise about the market, being able to share exactly what is going on can make a difference. This is a time when people want to know. And can you give them the right advice?’ This also takes the pressure off us because we don’t have to convince them to do anything. We just give them the best information possible so they can make the best decisions for themselves and their families. ”
