Realtor Resources

5 Reasons There Will Be No Housing Market Crash in 2024

Thu, 11 Apr 2024 19:22:25 GMT

(MoneyforAgents) – Housing economists point to five compelling reasons why no crash is imminent.

Inventories are still very low:

A balanced market typically has a 5- or 6-month supply of housing inventory. The National Association of Realtors says there was just a 2.9-month supply of homes for sale in February (back in early 2022, that figure was a tiny 1.7 months).

This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation won’t allow a price crash soon.

Builders didn’t build quickly enough to meet demand:

Homebuilders pulled way back after the last crash and never fully ramped up to pre-2007 levels. Now, they cannot buy land and win regulatory approvals quickly enough to quench demand.

While they are building as much as they can, a repeat of the overbuilding of 15 years ago looks unlikely. “The fundamental reason for the run-up in price is heightened demand and a lack of supply,” says Greg McBride, Bankrate’s chief financial analyst.

“As builders bring more available homes to market, more homeowners decide to sell and prospective buyers get priced out of the market, supply and demand can come back into balance. It won’t happen overnight.”

Demographic trends are creating new buyers:

There’s strong demand for homes on many fronts. Many Americans who already owned homes decided during the pandemic that they needed more prominent places, especially with the rise of working from home .

Millennials are a massive group in their prime buying years, and Hispanics are a growing demographic keen on homeownership.

Lending standards remain strict: In 2007, “liar loans,” in which borrowers didn’t need to document their income, were common. Lenders offered mortgages to just about anyone, regardless of credit history or down payment size.

Today, lenders impose strict standards on borrowers:

Those getting a mortgage overwhelmingly have excellent credit. The median credit score for new mortgage borrowers in the fourth quarter of 2023 was an impressive 770, the Federal Reserve Bank of New York says.

“If lending standards loosen and we go back to the wild, wild west days of 2004–2006, then that is a whole different animal,” says McBride. “If we start to see prices being bid up by the artificial buying power of loose lending standards, that’s when we worry about a crash.”

Quite the opposite: A recent Federal Reserve survey of senior loan officers reveals that lending standards have tightened even further in anticipation of heightened demand when rates eventually drop.

Foreclosure activity is silent:

In the years after the housing crash, millions of foreclosures flooded the housing market, depressing prices. That’s not the case now.

Most homeowners have a comfortable equity cushion in their homes. Lenders weren’t filing default notices during the height of the pandemic, pushing foreclosures to record lows in 2020. And while there has been an uptick in foreclosures since then, it’s nothing like it was.

All of that adds up to a consensus: home prices are still pushing the bounds of affordability. But no, this boom shouldn’t end in a bust.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

5 Digital Marketing Strategies for 2024

Thu, 28 Mar 2024 19:33:53 GMT

(MoneyforAgents.com) – Marketing sells more than just properties in the competitive real estate market; it sells dreams, dependability, and trust.

The importance of marketing in real estate has increased dramatically as the digital landscape develops, demonstrating that it is not only a necessary tool but also the cornerstone of success in the sector.

First Impressions

In the real estate industry, first impressions are frequently formed online, even before a prospective buyer enters the property. The difference between a listing that lingers and one that ignites initial attention can be found in the quality of images, virtual tours, and property descriptions.

A property that uses effective marketing will be seen and remembered, as it will immediately appeal to the needs and wants of the intended market.

Branding

Building a brand is the goal of marketing for real estate professionals, not only those who sell houses. By positioning an agent or agency as a market leader, a strong, identifiable brand can draw in more business.

Marketing assists in creating a brand identity that connects with customers through a consistent message, design, and values. This helps to develop client loyalty and trust that can last a lifetime of real estate transactions.

Making Use of Social Media

Social media has become a vital resource for real estate brokers, providing a way to present their listings, impart knowledge, and establish personal connections with clients.

By using platforms such as Instagram, Facebook, and LinkedIn, agents may further establish themselves as reliable advisors in the real estate process through targeted advertising, real-time engagement, and the distribution of useful content, ranging from home renovation tips to market trends.

Making Use of Technology

How properties are marketed and sold has changed due to technology's incorporation. Drone photography, augmented reality apps, and virtual reality tours provide immersive experiences that draw customers and distinguish properties.

Marketing initiatives are designed to reach the appropriate audience through data analytics and SEO tactics at the right time to maximize visibility and engagement.

Storytelling to Engage Audiences

Storytelling is at the core of real estate marketing. Effective marketing tells the story of each property in a way that inspires empathy and a sense of connection.

A captivating marketing strategy may attract and motivate potential buyers, regardless of the subject matter—be it the history of a historic property or the potential of undeveloped land.

In summary

The key to success in real estate is marketing. It serves as a means for agencies and agents to convey value, set themselves apart from rivals, and establish genuine connections with clients.

Marketing is essential for opening doors and facilitating these interactions in a field where matching the right person with the right property determines success.

Marketing tactics and resources will change along with the real estate market. Still, their significance will never change—they are vital to the sector.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Here is What Comes Next for the Housing Market According to Economists

Thu, 21 Mar 2024 20:07:42 GMT

(MoneyforAgents.com) – The Federal Reserve is still planning rate cuts for this year, and house buying may be disrupted by changes in selling procedures. This is the prognosis.

President Biden has started looking for ways his administration may lower the high cost of housing, real estate brokers are expected to reduce their commissions following a significant settlement, and Federal Reserve officials want to lower interest rates this year.

In summary, a lot of change is occurring in the housing market. Despite a notable slowdown in sales due to increased borrowing rates, housing and rental rates are still significantly higher than before the epidemic. Whether the current advancements will reduce costs is the subject at hand.

According to housing industry economists, cost increases are anticipated to be relatively low within the coming year. However, they do not expect real price reductions in most markets, particularly for residential purchases.

Cheaper mortgages could entice buyers into a market with too few homes for sale, even though lower rates can help attract more supply around the edges. Demographic factors are still driving strong demand.

Redfin CEO Glenn Kelman stated, "It has become almost impossible for me to imagine home prices actually going down." "Inventory constraints are extremely severe."

Here are the changes and their potential effects on renters, sellers, and buyers.

A decline in interest rates is anticipated

The Fed's decision to raise interest rates to a level not seen in more than two decades has contributed to the recent high cost of mortgages.

Although the central bank does not set mortgage rates, its policy decisions raise borrowing costs throughout the economy. 30-year mortgage rates have been averaging under 7%, recently rising from less than 3% in 2021.

When the Fed reduces borrowing costs, those rates may also decrease, especially if investors start to believe that the rate cut will be more significant than they presently think.

More often than not, investors' expectations of what the Fed will do cause changes in mortgage rates and other borrowing costs, not the central bank's actions.

This is one of the reasons why mortgage rates have been gradually declining since they peaked in late 2023 at roughly 7.8 percent: The inflation rate has decreased, and it is now evident that the Fed may shortly lower its policy rate.

On Wednesday, central bankers predicted that they may lower interest rates three times this year and three more times the following year.

According to some analysts, mortgage rates may fall much lower in 2024. For example, Greg McBride of Bankrate believes they may finish the year at roughly 6 percent.

Lower borrowing costs will impact the housing market in two significant ways. First, they lower the cost of financing a purchase: A $400,000 mortgage with a 7.8 percent interest rate would pay roughly $2,880 each month; at a 6 percent interest rate, it would be closer to $2,400. Such a drop can increase demand from prospective purchasers.

Secondly, if rates drop, more homeowners might decide to sell. Many Americans are reluctant to move because they are sitting on low-cost mortgages that they refinanced during the pandemic.

Rate lock-in may decrease if the difference between current mortgage rates and market rates narrows, which might lead to an increase in the number of available starter homes.

Brokerage operations are about to change

The cost of borrowing is not the only factor that could affect the home market. In a move that might upend the home-buying process, the National Association of Realtors, a strong organization that has long established the rules for house sales, has decided to settle several lawsuits.

The deal would relieve agents representing home sellers of the obligation to pay purchasers' agents in a conspicuously visible way and subject to court approval.

The typical industry commission of 5 or 6 percent will decrease due to the shift.

It's unclear just how that will affect housing expenses. There's talk that it might drive down prices, partly because sellers would find listing their properties at lower commissions slightly more appealing.

However, the amount that prices can drop is limited. While the move may save Americans money on transaction fees, according to Igor Popov, chief economist at Apartment List, house sellers would still continue to try to charge as much as they could in cutthroat markets.

"It's not a big deal for prices and quantities, but it's a big deal for the industry," he remarked.

Agents are unsure how the consequences will manifest. Long Island realtor Jovanni Ortiz said he had heard colleagues question whether agents might quit the industry. Still, no one was certain how much this would cost agents or how it would change the home-buying experience.

Mr. Ortiz stated that it was still too early to say.

The White House is thinking about policies

Concerned that Americans' inability to afford a house or pay their rent is affecting the country's economic confidence, President Biden has become fixated on the exorbitant cost of housing in recent weeks.

He unveiled further initiatives to support homebuyers in his State of the Union address. More than $250 billion in expenditure recommendations are included in his most recent budget request to address the high cost of housing.

These plans include boosting rental assistance for low-income workers and constructing or renovating two million housing units.

However, most of those proposals don't seem likely to be implemented immediately. With the November election approaching and the Republicans controlling the House, there doesn't seem to be much prospect of enacting a significant housing law this year.

Nevertheless, Mr. Biden has instructed his administration to take independent action to lower certain expenses related to purchasing a home.

By eliminating title insurance costs for federally backed mortgages, he has the potential to save each transaction at least $1,000. He urged real estate brokers to pass the savings from reduced mandatory commissions to buyers this week.

Rental housing is becoming more available, but this trend may not last long

Recent months have seen a significant alleviation of the supply shortage, allowing rents on new leases to rise only slowly or even decline in certain regions.

Several large rental buildings were built in several Southern and Mountain West cities, which relieved pressure on monthly costs. However, Mr. Popov stated there won't be much new inventory in 2026 or the following year, so the cool-down might be minimal.

The availability of homes for sale is a less happy tale. Not only have fewer sellers been listing their homes for sale, but rising mortgage rates have also hurt home construction.

This has made a shortage that has been getting worse for years, and it has meant that prices have stayed high despite declining sales of both new and existing homes due to high mortgage rates.

Builders might be more inclined to develop new homes as soon as they observe indications of a thawing market. However, many customers will be drawn in by the somewhat reduced prices.

Senior economist at BNP Paribas Yelena Shulyatyeva stated, "Demand is so strong that it's unlikely that the housing market will fall apart." She pointed out, among other trends, that many millennials are still in the market to purchase a home.

The final result? According to Mr. Popov, the housing market may soon revert to more typical levels. At the same time, a price decline is improbable; price gains might be more gradual than in the significant spikes since 2020.

"The pandemic has caused numerous significant blows to the housing market, and we've been feeling the aftershocks of those blows," he stated. "The housing market will experience a return to more normal numbers and sentiment."

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Profit from Properties with This Insider Buying Guide

Thu, 14 Mar 2024 18:04:09 GMT

(MoneyforAgents.com) – Investing in real estate is a time-honored method for building wealth, offering potential for passive income, capital appreciation, and tax advantages.

However, not all investment properties are created equal, and making a wise choice requires careful consideration. Here’s what to look for when buying an investment property to ensure you make a profitable and sound investment.

Location, Location, Location

The adage “location, location, location” holds especially true in real estate investing. The right location can dictate the property’s appeal to renters or buyers and significantly affect its future value. Consider the following factors:

Proximity to amenities: Look for properties close to schools, parks, shops, and public transportation.
Economic stability: Opt for areas with low unemployment rates and strong job growth, which tend to attract more tenants.
Safety: Properties in safe neighborhoods generally have higher occupancy rates.
Future development: Information on planned infrastructure or commercial projects can indicate potential appreciation.

Property Condition

The property's condition can significantly impact your budget and potential return on investment (ROI). While fixer-uppers may come at a lower purchase price, they require a budget for renovations. Assess the following:

Age and construction: Older properties may have more character and maintenance issues.
Necessary repairs: Consider whether repairs are cosmetic or structural. Structural repairs can be costly and time-consuming.
Inspection reports: Always conduct a professional property inspection to uncover hidden issues.

Market Analysis

Understanding the market dynamics of the area is crucial for making an informed investment decision. This includes analyzing:

Rental yields: Look at the average rental income in the area compared to the property’s cost.
Vacancy rates: High vacancy rates may indicate a less desirable area for renters.
Comparables: Research sales of similar properties in the area to ensure you’re paying a fair price.

Financial Considerations

A sound investment fits within your budget and financial goals. Here are key financial factors to consider:

Cash flow: Calculate potential rental income minus all expenses (including mortgage, taxes, insurance, and maintenance) to ensure positive cash flow.
Financing options: Explore different financing options and interest rates to find the best deal.
Tax implications: Understand the tax deductions and liabilities associated with owning an investment property, including property tax, depreciation, and capital gains tax.

Legal and Zoning Regulations

Be aware of local laws and regulations that could affect your investment:

Zoning laws: These can impact property use and future developments in the area.
Landlord-tenant laws: Familiarize yourself with local regulations regarding tenant rights, eviction processes, and rental agreements.
HOA rules: If the property is in a community with a homeowners’ association, understand the rules and fees involved.

Potential for Appreciation or Cash Flow

Decide whether your primary goal is long-term appreciation or immediate cash flow. Properties in developing neighborhoods offer more significant appreciation potential, while those in established areas can provide steady rental income.

Exit Strategy

Have a clear exit strategy in place. Whether you plan to sell after a certain period, refinance, or hold the property indefinitely, your strategy should align with your overall investment goals.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Why There Won’t Be a Recession That Sinks the Housing Market

Thu, 07 Mar 2024 15:21:43 GMT

(MoneyforAgents.com)—Over the past few years, there has been much discussion about the recession. That could make you fear that what happened in 2008 is about to happen again. Here are some recent expert forecasts to help you understand why that isn't likely to occur.

The economy is doing reasonably well, according to LendingTree Senior Economist Jacob Channel:

“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty well. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”

According to a recent Wall Street Journal survey, only 39% of economists predict a recession in the upcoming year. That is far less than the 61% who predicted a recession just a year ago.

Most analysts predict that the upcoming year won't see a recession. The present unemployment rate is one cause. Let's examine our current situation compared to past Trading Economics , Macrotrends , and the Bureau of Labor Statistics (BLS) statistics.

When we do, it becomes evident that there is still a relatively low unemployment rate today.

The orange bar represents the average 5.7% unemployment rate since 1948. The red bar indicates that the unemployment rate reached 8.3% immediately following the 2008 housing market implosion and financial crisis.

The difference between those two figures and the January unemployment rate (highlighted in blue) is substantial.

Will the unemployment rate increase, though? Take a look at the graph below for the solution.

It displays the experts' predictions for unemployment over the next three years based on the long-term average using data from that same Wall Street Journal survey.

As you can see, economists predict that over the next three years, the unemployment rate will not even approach the long-term average, much less the 8.3% that was recorded during the last market meltdown.

Nonetheless, some people will lose their jobs in 2019 if these predictions come to pass. Anytime someone is unemployed, friends and family must also deal with a complex scenario besides the individual.

The crucial concern remains: will the unemployment rate be high enough to trigger a wave of foreclosures, destabilizing the real estate market?

Forecasts indicate that the unemployment rate will probably continue to be lower than the 75-year average. Thus, a significant influence on the home market from a wave of foreclosures is not something you should anticipate.

Most specialists predict that the upcoming year will not see a recession and that the jobless rate will not increase significantly. Thus, you don't have to worry about a wave of foreclosures sending the home market into meltdown.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

7 Key Moves to Becoming Real Estate Broker

Thu, 29 Feb 2024 21:02:32 GMT

(MoneyforAgents.com) – Becoming a real estate broker and working as a managing broker or broker-owner is a natural next step for many real estate agents on their journey to professional development.

In contrast to other businesses, where advancement to management positions is typically associated with higher revenue levels, several brokers encounter difficulties in matching the financial performance of their most prosperous agents.

Upstream costs might make it challenging for brokers who operate as franchise owners in a big-box brokerage model to stay profitable.

Overhead and running expenditures can make it nearly impossible for brokers who operate as independent broker-owners, particularly in the early stages of their business.

Being a broke broker is not enjoyable and may prevent you from providing the assistance your agents require to expand their companies and, consequently, your own.

Here are seven strategies to make sure you don't end up the poorest person in your company:

1. Choose if you want to be a broker that competes or doesn't

Without being in production, you might discover that you cannot support yourself, at least not at first. Ensure that the agents you hire have enough experience to not feel that you are working against their best interests or that you plan to feed leads to them as needed.

2. Create a lucrative commission schedule

Do the math on your commission structure to ensure you can run your business effectively and in a way that allows you to earn a reasonable, competitive wage in line with local market norms.

3. Pay attention to premium or volume listings (or both)

To enable your agents and yourself to earn more commissions, ensure your branding and marketing will allow them to obtain premium or higher-volume listings. Give your agents the necessary resources and assistance to operate in these markets.

4. Make use of your knowledge

You may have an extensive network that enables you to network with other brokers and target high-net-worth customers. You may have acquired specialized knowledge that enables your brokerage to rule a particular market or niche.

To improve your company's reputation (as well as your own), establish yourself as a subject matter expert and leader in the market. You have to create a distinctive value offer.

5. Make your management better

To maximize your agents' productivity and save time on hiring, onboarding, and retention efforts, ensure you take the best care of them.

Grow your team strategically so members are content to help one another rather than vying for scraps.

6. Vary your sources of income

Expand the range of services your brokerage provides by including advisory and financial services and property management. Strive to establish strategic alliances with title companies or lenders.

Create your real estate investment portfolio by enrolling in a real estate course or using your professional experience.

Your income will increase, and your protection against changes in the market will improve the number of sources of income you have.

7. Utilize other people's experience

Hire a fractional CFO and collaborate with a tax strategist to ensure you make informed judgments regarding every dollar coming into and out of your brokerage.

To make the most use of your skills, focus more on the activities that bring in money and give other people support duties.

Your agents are essential to your financial success, and vice versa. Ensure that the company you're starting will allow everyone to prosper, especially you.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Economist Warns Why Timing the Market May Not Work for Buyers

Wed, 21 Feb 2024 23:01:40 GMT

(MoneyforAgents.com) – A few prospective homebuyers decided to hold off after seeing a slight increase in mortgage rates this week. Here's why they might not want to hold off, though.

This week's spike in the 30-year fixed-rate mortgage average demonstrated to prospective homeowners how sensitive they are to changes in mortgage rates.

According to the Mortgage Bankers Association, the rate increased to 6.77%, and the number of mortgage applications for house purchases decreased by 3%.

Although borrowing costs have stabilized, home purchasers' purchasing power may be impacted by slight fluctuations in interest rates.

According to Jessica Lautz, deputy chief economist at the National Association of REALTORS®, "while mortgage interest rates edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high," when rates were close to 8%.

She added , "Although mortgage interest rates might drop to as low as 6% in the middle to end of the year, purchasers need to consider what is best for them personally. When new employment, marriages, and babies are the true decision-makers, it is rarely effective to time the real estate market only based on mortgage interest rates—especially marginal changes.”

Waiting could not save buyers much, either. According to Lautz, at this week's average interest rate, buyers of the median $400,000 property with a 20% down payment would probably have a monthly mortgage payment of roughly $2,080.

Homebuyers may have saved almost $70 a month when rates averaged 6.64% last week, but that was based on a median property price of $391,700.

The cost of homes is rapidly increasing. According to NAR, the median price of an existing house reached an all-time high in December, and price increases are anticipated.

According to NAR's prediction , the yearly median home price would rise 1.4% this year and by an additional 2.6% in 2025 to $405,200.

Furthermore, the supply of homes is still at an all-time low, which presents a significant barrier for prospective homeowners. Economists predict that this will maintain pressure on property prices.

For the week ending February 15, Freddie Mac has released the following nationwide averages for mortgage rates:

30-year fixed-rate mortgages: the average was 6.77%, up from 6.64% the previous week. At this time last year, the 30-year rate averaged 6.32%.

Mortgages with a 15-year fixed rate saw an average of 6.12%, up from 5.90% the previous week. 15-year rates averaged 5.51% a year ago.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Analysis: Here's When the Housing Market Will Be More Affordable

Wed, 14 Feb 2024 03:48:08 GMT

(MoneyforAgents.com) – According to data from the U.S. Bureau of Labor Statistics, inflation increased in January but did so more slowly than anticipated. This led analysts to speculate that the Federal Reserve would take longer to reduce borrowing prices.

In January, the Consumer Price Index (CPI) saw an increase in inflation of 3.1 percent, marginally less than the 3.4 percent increase in the previous month.

However, the CPI for January exceeded economists' expectations. They had calculated that it would be 2.9 percent.

Given that inflation does not appear to be waning as quickly as expected, experts advise against the central bank cutting interest rates immediately since this could hurt the price of house loans.

Mortgage borrowing costs increased to 8% in March 2022, the most since the year 2000, partly due to rate increases that started that month.

Although mortgage rates have dropped in recent weeks to a range of mid-6 percent, housing analysts warn that rising inflation above the regulators' 2 percent objective could halt the rate decline.

Chief realtor.com economist Danielle Hale wrote in a note, "For the housing market, today's data means that mortgage rates are likely to hang on to the narrow range they've occupied since late December while moving toward the upper end of that range."

At the beginning of the year, some investors predicted that the Fed would start cutting the funds rate from its current two-decade-high range of 5.25 to 5.5 percent as early as March.

However, officials stated in January that although they had most certainly reached the end of their cycle of rate increases, an instant reduction in rates was improbable.

Just as in December, housing prices continued to be the biggest driver of inflation in January, increasing by 0.6 percent and "contributing over two thirds of the monthly all items increase," according to the Bureau of Labor Statistics.

Experts currently predict that rates may fall later, after the January reading.

The National Association of Realtors' chief economist, Lawrence Yun, told Newsweek in a statement that "the Federal Reserve will not cut interest rates in the first half of this year."

However, in the year's second half, rate reductions of three, four, or even five rounds will be feasible. Weekly mortgage rates will fluctuate, but by year's end, they'll stabilize around 6%.

Some observers stated that the inflation data validates the Fed's cautious stance of holding off on making changes to policy until they are sure that prices are heading lower toward their target.

The Fed has been emphasizing that more data, particularly inflation-related data, will be needed before making a policy change, according to a study that LPL Financial chief global strategist Quincy Krosby shared with Newsweek .

"The 'last mile'—as expected—is proving to be stickier and more stubborn," he added.

Because of the high prices, some economists believe that the Fed might start reducing rates as early as the summer, when more inflation data becomes available to paint a more complete picture of how prices are performing.

"This report underscores the Fed's messaging that they'll need more information, specifically inflation-related data, before a policy transition," Quincy Krosby, chief global strategist for LPL Financial, said in a note shared with Newsweek. "The 'last mile'—as expected—is proving to be stickier and more stubborn."

In addition, Sweet said that the Fed's officials are more focused on the PCE inflation index, which has been declining more quickly than the CPI. Later this month, the most recent data for that metric is expected to be released.

Regarding the Fed's potential timing of rate cuts, late spring or early summer is the most likely time frame for borrowing costs to decline across the economy.

Mortgage rates may drop in tandem with the Fed's expected rate reduction, which would assist purchasers in experiencing a decrease in their monthly payments.

"Fed policymakers will likely put this inflation report [in] the 'not so good' column as they continue to exercise caution in assessing when to start easing policy," Gregory Daco, chief economist at EY, said.

"Our longstanding view has been that the Fed would start cutting rates in May, but this report increases the odds of a June onset. We still expect a total of 100 [basis points] of rate cuts this year. Markets appear to slowly be aligning to this view," Daco added.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

6 Reasons Why It Makes Sense To Sell a Home Right Now

Thu, 08 Feb 2024 20:14:25 GMT

(MoneyforAgents.com) – Although many homeowners wait until the spring to offer their homes for sale, there are a few clear benefits to listing this year and being ahead of the game.

Home sales usually slow down during the winter, but this year is slightly different. For most of 2023, high interest rates kept a large portion of the US real estate industry under a deep freeze.

However, a ton of pent-up demand (and supply) could suddenly explode onto the market now that rates have somewhat decreased in the new year. A portion of it is already available.

The timing of a house sale can be crucial. Like equities, home prices increase and fall. If you enter the market during the height of demand, you can tip the odds in your favor and get better terms and more significant earnings.

So, is it time for you to list your property? Continue reading to discover more justifications for wanting to enter the 2024 real estate market early.

1. Interest rates on mortgages are declining

Mortgage interest rates were a primary factor in property sellers' reluctance to sell in 2023. Rates on a 30-year fixed mortgage hit a 23-year high of 7.79% towards the end of October.

Due to the possibility of having to purchase a new home and incurring higher mortgage rates if their current residences sold, homeowners experienced a "lock-in" effect.

In fact, according to Realtor.com, around two-thirds of homeowners had mortgages with interest rates under 4%. Over 90% had a rate that was less than 6%.

However, mortgage rates have started to decline recently. According to Realtor.com's 2024 housing forecast, mortgage rates will drop further and wind up at the mid-6% level by the end of the year.

Thus, home sellers will benefit more by switching to a new mortgage rather than losing out on their current one.

According to Realtor.com Chief Economist Danielle Hale, "most sellers, especially those who have lived in their homes for several years, will be able to walk away from a transaction in a good position."

2. Compare agents: There is still a shortage of housing

Even in this challenging market, sellers have one significant advantage: few homes are available.

According to Cindy Allen, a real estate agent in the Dallas and Fort Worth, Texas, area, "the housing supply is still well below the historical 'balanced market' number of six months' supply." "A property can still be the focal point of attention because there aren't enough available homes."

If a house is listed in good condition and at the correct price, it "can fetch a quick offer," the realtor continues.

According to Jonathan Spears, Realtor® and founder of Spears Group, this is particularly true for distinctive or unusual houses.

As he puts it, "quality is always in high demand." These houses are "selling at the highest frequency they ever have" in his Florida area.

Spears adds that while most people "can't go out and build the house that you have at a better price point," sellers can still profit from inflation as it is currently high.

He states that purchasers typically have to make do with the available goods.

"I would be in the mood to sell if I were a homeowner and I had something that's quality," he claims.

3. More purchasers could soon join the market

Many purchasers have recently been priced out of the market due to rising housing prices, inflation, and high mortgage rates.

However, experts believe that some purchasers may emerge from their slumber now that mortgage rates are finally declining, releasing their pent-up desire for the few astute sellers to be on the market.

More homes on the market due to more buyers "will inevitably lead to increased competition among sellers," according to Allen.

If they list now, sellers may experience less competition before other sellers swarm the market.

4. Home sellers won't put in as much effort

Seasonally speaking, analysts claim that the first few months of the year might be excellent for sales.

According to Cedric Stewart of Entourage RG in Keller Williams, near Washington, DC, the start of the year can be a surprisingly advantageous time to list.

Many people discover that their tax refunds and work incentives have left them with extra money. This can prompt further bids at a more fantastic price.

Stewart agrees that because fewer people are house-looking in the winter, homeowners who list in that season usually don't receive as many offers as those who list in the summer.

However, he notes that those few offers made during the winter months may have greater significance because sellers may not have to put in as much effort to obtain them.

"There might be four or five other houses that people are looking at that are similar to yours, but you might get more offers in June," he says. You might not be the ball's belle. To be the star of the show, you need to make some changes. If you need to move in January, you're most likely the only one in the area. They must thus deal with you. Because it is a fact that those who require immediate relocation must do so.

5. Sellers who intend to purchase can avoid the crowd

Selling soon also allows homeowners to move into their new residence before the market heats up and receive a decent price for their house.

According to Stewart, when there isn't too much buyer competition, it's the ideal moment to relocate. According to him, buyers can still join the market "before the prices get spring- and summer-crazy" if sellers move out of their houses immediately.

Spears concurs, stating that such circumstances can result in a win-win scenario for present homeowners.

"We're returning to a market where you can still sell for a very fair price, and if you decide to buy again, you'll have more options and negotiating power than before," Spears adds. Thus, you have an exceptional chance to purchase low and sell high simultaneously.

6. Emotional motives to sell frequently prevail over market ambiguity

Homeowners who need to move for any reason—job, family size change, retirement, or anything else—should not be discouraged from listing, even though timing the market while doing so can benefit sellers.

The main driving force is frequently not merely money. Individual needs also matter, according to Allen. Sometimes, sellers have to remind themselves of their initial motivations for moving.

There are always solutions to help make a transfer possible should their needs change or their lives take a different turn.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Home Sales Are On The Rise. Will It Continue?

Wed, 31 Jan 2024 19:38:14 GMT

(MoneyforAgents.com) – The National Association of Realtors published their December pending sales figures last week. Impressively, the headline showed an 8% increase from December 2022.

If you've been following the Altos data, house sales have been rising over the past two months. When mortgage rates recently fell in December, they began to increase.

When the housing market was heating up in December last year, we released sales growth statistics.

Is this a pattern that will last the entire year? From what we currently have access to, it appears likely. However, January saw a sharp slowdown in December as the nation was again plunged into a deep freeze and mortgage rates spiked upward.

Thus, this expansion is not steady. In the meantime, annual growth in housing prices is also relatively strong.

Contract-rise residences

Right now, more properties are under contract than at this time last year. Although this trend will endure, there is no certainty. This week's new pending and sales were lower than they were at the same time last year.

Experts boldly predicted that home sales would increase by 15% in 2024; however, the growth rate from the previous year has now declined for four weeks running!

Growth in sales is not assured

According to reports, 56,000 contracts for the purchase of single-family homes were started this week. The majority of 2023 saw 20–30% less home sales than 2022 as the year went on.

Last year, home sales were incredibly slow. The trend finally turned positive in November and returned to growth. We printed 20% more sales in a week a few weeks ago than we did the year before.

There was 0.8% less this week. Thus, it was a quiet week. As said, there is sustained growth in sales. However, there is no certainty. This increase won't last if mortgage rates remain in the sevens this year.

Home sales increase

Currently, 276,000 single-family houses are under contract, which is 5% more than last year. As a result, we already know that first-quarter home sales increased by 5% over the previous year. I already have that covered.

This trend will continue even with the slight decline in new contracts this week if the 6s remain in the mortgage rate range.

Two hundred seventy-six thousand single-family houses are currently under contract, up from 264,000 last year. Undoubtedly, 276,000 represents over 30% fewer applications than in January 2022, at the height of the cheap money craze.

We're coming off such a low base, which is one reason the housing market can expand this year. Twenty-three saw very few home sales. Thus, 24 is expected to be a growing year.

Less volatility in mortgage rates

The fact that mortgage rates are less volatile in 2024 is another factor contributing to the growth in home sales volume. Sales are expected to increase if mortgage rates remain in the sixes this year.

They will halt this growth trend if they return to the mid-sevens. During September and October of last year, we observed that stall. In the previous few weeks, we have seen a slight increase in mortgage rates from the mid-sixties to 6.9%.

Any estimate of this year's growth in home sales that I make is contingent upon mortgage rates remaining in the 7s or 8s.

However, that estimate does not also call for a decline in mortgage rates. Demand from home buyers is seen in the sixties when rates are stable. Mortgage rates are not estimated, and many people who try to do so predict rates in the 5s by year's end.

If that occurs, I predict even greater demand, a sharp increase in the number of homes sold combined with an inventory reduction, and a return to rising home prices.

Inventory decreases marginally

There are 503,000 unsold single-family houses on the market right now. That represents the nation's current inventory. Last week's inventory decreased by six-tenths of a percent.

That is rather typical for the final week of January. Every year, during the winter, inventory levels typically fluctuate around the year's low before beginning to rise in February and March due to a surge in new vendors.

Due mainly to the unpredictable nature of mortgage rate variations, demand has been higher in the spring of the past few years. As a result, the number of unsold properties on the market has been steadily falling through April.

The upward trend in home prices will persist

It's no secret that home prices have increased over the previous year if you've been observing any of the numerous metrics tracking home prices in the news.

And that pattern of rising home prices this year is expected to continue, according to all the leading indicators included in the Altos data. In the US, single-family homes currently have a median price of $424,000.

That is still a few percent higher than it was a year ago, and it is up 1% from last week.

We utilize the pricing data from Altos' active market to predict where home sales prices will end in the coming months. A house is listed now, it receives an offer in February, closes in March or April, and the typical housing data reports the transaction in May.

However, the location of those prices is currently visible. Additionally, those costs have increased.

The price of the properties under contract is a highly accurate indicator of the sales that will close next month. The homes under contract have a median price of slightly less than $385,000.

This is 6.8% more than it was at this time last year. Due to the sharp increase in mortgage rates in 2022, demand for purchases drastically decreased.

The second quarter of 2022 marked the peak of housing prices. Home prices thus showed year-over-year declines over the same time a year later, in April, May, and June 2023.

Communicating this to buyers and sellers can be challenging. Some others are keeping a close eye on pricing, hoping to take advantage of any unexpected discounts.

However, they could be unaware of the level of competition that is waiting for them.

People require your assistance in comprehending this rapidly evolving market , so stay sharp and informed.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Will AI Replace Real Estate Agents?

Wed, 17 Jan 2024 19:40:15 GMT

(MoneyforAgents.com) – Cloned voices, ChatGPT-generated listings, and avatars might be the stuff of nightmares.

Depending on who you ask, ChatGPT's chatbots, avatars, voice clones, and home descriptions might be the stuff of real estate business nightmares or dreams.

According to Northern Virginia Association of Realtors CEO Ryan McLaughlin, "AI has the potential to revolutionize the housing market." "Realtor value, effectiveness, and efficiency can all be increased with AI."

Some in the industry are concerned that it would render agents obsolete. Leigh Reed, an agent at Long & Foster in Bethesda, says, "I have heartburn because my daughters may want to become agents someday, and I don't know how much all the disruptions in real estate will change things in the next ten to twenty years."

Despite the conflicting feelings, more real estate agents are using AI. For example, Reed and her group create video scripts and listing descriptions using GhatGPT.

According to McLaughlin, the goal of the technology is to free up agents' time for customer interactions by reducing the amount of work they must put into mundane chores, all without making them less effective.

According to Reed, "[Agents can] sell themselves short if they only use technology." "Human experience and expertise cannot be replaced by AI."

Utilizing AI Nowadays

Since artificial intelligence is still a relatively new instrument in the industry, its exact usage is difficult to determine. Patrick Hall is a visiting assistant professor of decision sciences at the George Washington University School of Business.

He claims that while government agencies and large banks have used AI for decades, brokerages and agents are less established: "Up until now, real estate firms have primarily used AI on the periphery of their operations."

Many buyers, sellers, and owners first encountered artificial intelligence (AI) years ago when using the Zillow website's "Zestimate" feature. Agents now use AI for virtual representations, data collection, and listing language.

Agent Miguel Calvo of Keller Williams Fairfax Gateway uses ChatGPT to create team training courses, video scripts, and newsletters. "Because I speak Spanish, I'm self-conscious, so technology helps me overcome that," says Calvo.

Agents with poor wordsmithing skills could find that their sellers benefit from AI-generated support when listing. Harrison Beacher, a DC agent with Keller Williams Capital Properties, utilizes ChatGPT to build and tidy spreadsheets and presentations and proofread and verify language.

However, he asserts that the technique still needs a last proof: "You can't just copy and paste; you have to read and edit it." Chief data officer Thomas Morgan of Bethesda, Maryland-based Bright Multiple Listing Service concurs.

His company verifies that agent photographs, logos, and trademarks adhere to its regulations by reviewing its AI-generated listings twice.

According to Aaron Nichols, a McLean agent with McEnearney Associates, artificial intelligence can also locate buyers and sellers.

"AI has the ability to generate forecast scores regarding an individual's likelihood of selling, predicated on publicly accessible data like the length of their residence and the number of annual home sales in a particular neighborhood," says Nichols.

Additionally, it might search through data to identify tenants inclined to buy—for example, a couple who just had a child and might wish to move up.

Additional AI applications include virtual staging and 3D modeling, which let buyers see what a house might look like.

According to McLaughlin, by using ChatGPT or sharing photos, purchasers can use artificial intelligence (AI) to describe their ideal home instead of utilizing standard platform filters like bathroom and bedroom counts.

Additionally, it can point out areas or homes that purchasers might not have found otherwise. AI can assist sellers in comparing the anticipated return on investment and cost of presale remodeling projects.

According to McLaughlin, some brokerages also use it to review their agents' previous transactions and determine their activities to increase sales or profits.

As agents revert to earlier strategies linked to quicker or more profitable sales, sellers may profit from this.

In the real estate industry, AI is not limited to agents. For moving quotes, the Sterling company JK Moving, for instance, employs an AI program that visually measures the volume and size of rooms, furniture, and appliances.

The company's president, David Cox, claims this has resulted in a 50% increase in possible daily estimations.

As per the Mortgage Bankers Association, lenders have utilized AI for automated underwriting for almost three decades.

Additionally, according to Rick Hill, vice president of industry technology at the MBA, emerging AI capabilities, including document identification, fraud protection, next-generation chatbots, and back-office automation, are being assessed.

Technology's Boundaries

AI is by no means a perfect solution. There are many situations where humans are still required.

Although every business will eventually use AI, it has its limitations. For example, AI can't help in the space where Realtors are at their best—giving context, nuances, and their expertise."

Chatbots stop responding after the first exchange and are one example of technology not fitting for real estate, even though AI can free agents from repetitive tasks.

For an expensive, emotionally charged, and infrequent transaction—which most people only complete once every 12 years or less—agents are the best option for guidance.

Real estate agents won't be replaced by artificial intelligence but rather by other agents who utilize technology.

Possible Hazards

Inadequate supervision of AI use might also expose agents and clients. One of the main problems with text generated by AI is that it might not adhere to the Fair Housing Act, which forbids discrimination.

For instance, even if something is positive, you must remove it if it calls out particular schools as "excellent" or states that a house is close to a place of worship.

It's a myth that AI is impartial. Still, biases are inadvertently perpetuated through design decisions or the data that's being collected. Even though redlining has been outlawed for decades, algorithms are nevertheless susceptible to lingering bias because data isn't always impartial.

However, developers of the more recent AI, such as ChatGPT and Bard, have gone above and beyond in thwarting the inclination toward racist and sexist tirades.

Factual inaccuracies, a lack of data privacy protection, and possible infringements on intellectual property rights and copyright are other problems with AI.

Although AI can spot odd trends or occurrences and help stop fraud in real estate transactions, it can also be used to commit fraud.

According to research, technology can alter text, voice, or video recordings. This technology can be helpful for positive purposes, such as swiftly creating movies and messages from a script. Still, it can also be used as a tool by con artists.

According to reports, a few years ago, con artists would take down real estate advertisements, pretending they were for rent, ask for a wired deposit, and then vanish from sight.

Thanks to AI, it's much simpler to make a false website. Regretfully, I believe that due to the increased likelihood of false title fraud, title insurance premiums will increase.

To estimate property values, some appraisers currently utilize computerized valuation methods; however, experts caution that this might be error-prone, saying that relying too much on Google Maps, walkability scores, and images is not a good idea.

It is not enough to click a button and receive a comparative market study based on typical home prices; you must also be aware of aspects like light and view quality.

However, advancements in AI could lead to more accurate automated values. For property valuation, some agents use insights for value forecasting and predictive analysis from websites like Redfin and Zillow.

Others utilize [the search engine] RealScout to look for target clients' addresses and estimate the worth of properties.

AI will make agents more efficient, freeing up more time for clients and generating better, more transparent information for sellers and purchasers, benefiting both parties.

AI can enhance "any administrative task that looks at trends and data. Realtors will eventually be able to employ AI to explain long-term trends to homeowners and purchasers.

When mortgage rates jumped last year, fear affected the market. However, AI allows you to place the market in a broader context and helps individuals approach the real estate market less emotionally.

So, Can AI replace real estate agents?

Though the use of AI in real estate is increasing substantially owing to its predictive and analytical skills, it still lacks the human or personal touch like empathy or emotional intelligence, which play a crucial role in customer interactions.

So, using AI in real estate would benefit by automating specific tasks, increasing efficiency, reducing human error, and more. Still, it would not completely replace real estate agents.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Buyers Rush In as Mortgage Rates Take a Dive!

Thu, 11 Jan 2024 20:00:10 GMT

(MoneyforAgents.com) – The spring housing market of this year may have gotten a head start thanks to a significant decline in mortgage interest rates in December.

Customers anticipate further rate drops, as they are currently around one full percentage point lower than in October.

Fannie Mae's monthly consumer survey indicates optimism over mortgage rates spiked in December. According to Mark Palim, deputy chief economist at Fannie Mae, more homeowners expect rates to go down rather than up for the first time since the survey's start in 2010.

Palim stated, "This notable change in consumer expectations follows the recent rally in the bond market." "Remarkably, compared to renters, homeowners and higher-income groups indicated stronger rate optimism.”

Since the beginning of the COVID epidemic, the average rate on the 30-year fixed has experienced a tumultuous ride.

It hit over a dozen record lows in 2020 and 2021, around 3%, sparking a historic run on home-buying and a dramatic price jump, only to subsequently more than double in 2022.

In October 2023, rates reached a 20-year high and remained there for a while, averaging 8%, before dropping to 7% in December. That being said, rates have not decreased in the last three years.

April 20, Cutler Bay, Florida On April 20, 2023, in Cutler Bay, Florida, Ryan Paredes (R) and Ariadna Paredes view a house that Ryan Ratliff, a Real Estate Sales Associate with Re/Max Advance Realty, is showing them.

The National Association of Realtors reported that, in March, existing home sales decreased by 2.4% to a seasonally adjusted annual rate of 4.44 million. Furthermore, sales were down 22.0% from a year ago.

Customers are returning. Paul Legere, a real estate agent in the Washington, D.C., region, had two open houses this past weekend for homes priced between $1.1 million and $1.2 million.

He claimed these were the busiest he had seen in the previous 12 months.

"My coworker provided a similar report," he continued. Even amid a downpour on Saturday, we both had more than ten groups of customers in action.

These folks had previously been in the market but had slowed down or stopped searching, and now they were returning with a sincere desire to find a new home.

Searching for housing inventory

Legere stated that he anticipates seeing "an infusion" of inventory during the next week or two. Another obstacle for prospective homebuyers is the high prices maintained by low inventories.

A more optimistic outlook for mortgage rates may convince some homeowners to list their properties for sale, helping to increase the supply of existing homes in the new year.

This is because homeowners have told us time and time again in recent months that high mortgage rates are the main reason why it's the wrong time to buy and sell a home.

According to a new analysis by national real estate agency Redfin, demand increased in December as interest rates decreased. As per the research, Redfin's Homebuyer Demand Index, a seasonally adjusted measure of requests for tours and other homebuying services from Redfin agents, increased by 10% from the previous month and reached its highest point since August.

Pending sales, which track contracts for already-built homes, decreased by 3% from December 2022, although that was the least amount of decline in the previous two years.

Much will depend on interest rates and house values in the upcoming months. Due to a shortage of supply, prices are still rising. If interest rates keep falling, price increases may quicken. Potential homeowners can afford more when the rate is lower.

Although more mortgage rate reductions are anticipated, this will depend on inflation and the economy's health.

Matthew Graham, the chief operating officer of Mortgage News Daily, recently stated on CNBC's "The Exchange" that the current economic data is showing strong momentum.

In his opinion, if the data continues to perform well, then there is a possibility that mortgage rates could decrease and even reach 5%, or potentially even high 4s, if some experts are correct about a recession in 2024.

The average rate on the 30-year fixed mortgage hit a recent low of 6.61% at the end of December but is up slightly this month to 6.76%, according to Mortgage News Daily .

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

2024's Hottest Property Market According to Zillow

Thu, 04 Jan 2024 21:30:08 GMT

(MoneyforAgents.com) – Zillow has released a new analysis predicting that Buffalo, New York, will have the hottest property market this year despite being one of the snowiest cities in the country.

The real estate company examined various characteristics to identify the "hottest" market. It analyzed the top 50 metro areas in the United States.

This includes anticipated increases in home values between December 2023 and November 2024, the number of jobs available, the rate at which properties are selling, and other variables.

Buffalo topped the list because of its excellent career prospects and meager cost of living. Zillow's estimations place the current value of a typical property in Buffalo at $248,445, compared to the $347,415 national average.

A buyer in Buffalo would pay $1,792 a month for their mortgage if they put 5% down.

The ratio of newly produced jobs to newly constructed homes in Buffalo was one of the primary metrics employed by Zillow to gauge the area's anticipated housing demand.

Out of the 50 locations that Zillow studied, Buffalo has the most jobs per new housing unit, according to the business.

According to Zillow, unless enough new homes are constructed to fulfill the demand, housing competition will heat up due to additional jobs, pushing home prices.

Buffalo is renowned for having harsh winters as well. The National Weather Service reports that Buffalo had 133.6 inches of snow during the 2022–2023 season.

Vienna Laurendi, president of the Buffalo Niagara Association of Realtors and an associate real estate broker with Howard Hanna Real Estate Services, told MarketWatch, "Although our temperatures are cold, our market is not."

Along with Rochester and Syracuse, Buffalo was recently named a federal technology cluster and is expected to get billions of dollars in federal assistance. In the upcoming year, the funds will be utilized to develop the area into a center for semiconductor manufacturing.

To boost the state's economy, former Democratic governor of New York, Andrew Cuomo, also started a multibillion-dollar project known as the "Buffalo Billion."

Along with being home to SUNY Buffalo State University and the University of Buffalo, the city is also a college town. Along with the Buffalo AKG Art Museum, Josh Allen and Dion Dawkins, two Buffalo Bills players, call it home.

Buffalo resident Laurendi remarked, "There is a lot of energy in both the city of Buffalo and the city of Niagara Falls."

According to Laurendi, Buffalo also boasts a sizable medical campus, attracting business from the medical community and the auxiliary organizations necessary for them.

She declared, "We are the largest little city in the country."

Laurendi added that there is great potential for constructing additional new residences in the city.

She told MarketWatch, "Our developers today are looking at older buildings and older infrastructure that are just begging for revitalization, and that is why we have an awful lot of underutilized land."

According to Laurendi, part of that work also entails examining abandoned factories and other structures that "have significant fantastic character and can be revitalized into something fabulous."

Zillow's ranking of the hottest housing markets in 2024 included other "hot" Midwest cities in second, third, and fourth place, mainly due to the far lower cost of properties in those areas. Cincinnati and Columbus, both in Ohio, and Indianapolis, Indiana, are among them.

Laurendi stated, "Now that the holidays are over, buyers are definitely coming back," mainly because mortgage rates are below 7%.

Buffalo, Cincinnati, and Columbus have property prices below the national average. In both Ohio cities, the average home is approximately $300,000, and a buyer making a 5% down payment would pay less than $2,200 per month for a mortgage.

According to Zillow, "owner-occupied home growth is expected to accelerate in Columbus and move at the fastest rate in Cincinnati, which is indicative of population growth and family formation."

More affordable markets offer youth a "genuine chance at purchasing."

Midwestern communities have topped real estate rankings for the past year because, among other things, homes there are relatively affordable and the pace of life is slower.

Anushna Prakash, data scientist for Zillow Economic Research, stated that "housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity."

According to Zillow, Charlotte, North Carolina, had the best real estate market last year. In 2024, the city dropped to sixth place.

Why 86% of Americans Are Wrong About the Housing Market

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Should People Buy a Home Now or Later? Factors to Consider in 2024

Thu, 21 Dec 2023 14:23:03 GMT

(MoneyforAgents.com) – Many would-be homeowners have been seeking more ideal circumstances this year. Despite rising home prices annually and persistently high mortgage rates, 2023 hasn't been a great year to buy a property.

Inflation was out of control at the beginning of this year, so the Federal Reserve quickly raised interest rates. At the same time, prices increased in many national markets due to a scarcity of available properties.

But with a new year quickly approaching, everyone's primary concern is whether or not homebuyers will have better circumstances in 2024. If so, should I wait to buy, or is it appropriate to buy now, given the more advantageous conditions?

The significance of the matter increased when the Federal Reserve revised its forecasts to include three interest rate reductions in 2019, yet kept interest rates constant this week.

The decision, which was widely anticipated, ended the central bank's 11-month cycle of interest rate increases that began in March 2022. Even the odds of a rate reduction starting in May are priced into the markets, while other economists believe they may happen sooner.

When deciding if this is the ideal moment to purchase a home, there is never a one-size-fits-all solution. It's a significant choice unique to you and your financial situation.

Additionally, it is impossible to forecast precisely what the market will do shortly. Still, there are a few things to consider to figure out what relocation could be best for you in 2024.

Purchase Now If You Can Afford It And Need To Move

It may be a new employment opportunity, a shift in your family's dynamic, the excessive expense of your existing home, or a lease that is about to expire. Regardless of the necessity, you must decide whether to buy a new home or find a new rental.

While renting is always an option, buying today is usually preferable to waiting for people to be ready financially to become homeowners.

Purchasing now will guarantee you a place to live and start amassing equity. In addition, you can benefit from other homeownership advantages when you own a home, such as tax deductions for mortgage interest, property taxes, and other costs associated with home repairs.

Buy Now: You're Not Afraid of a High Interest Rate

Undoubtedly, the current state of mortgage rates is excessive, particularly for those who have become accustomed to the record-low rates of the previous 15 years. But historically, mortgage rates haven't typically been between 3% and 4%. Freddie Mac data shows that, except for the years after the Great Recession, rates have been at or above 6% every decade since the company began monitoring changes in mortgage rates in 1971.

Purchasing now is better if you can keep your monthly expenses at today's rates while purchasing. If interest rates fall in the future, you can always refinance to ensure a cheaper monthly payment.

According to current data, experts anticipate that rates will be in the mid-sixes by the fourth quarter of 2024, says Jeff Ocasio, a Fairway Independent Mortgage Corp. loan officer in Tampa, Florida.

Because markets, valuations, and rates constantly shift, it's imperative to seize the moment. It's the ideal moment to move if you can qualify and are renting."

Just be careful not to make any mistakes that could hinder your refinancing strategy when rates drop, maintain employment, and maintain a high credit score.

Purchase Today If You Want to Live in the House for a Long Time

If you are uncertain where to buy a property, renting is a great alternative. This could be the case if you have recently moved to a new city and are unsure of your long-term living arrangements, if you are considering a new job that may require you to relocate again, or if you anticipate significant changes in your family situation in the next year or two.

Renting allows you more flexibility in these situations.

However, purchasing now is unquestionably the best option for individuals who are not planning to move very soon. If you're ready financially, now is the perfect moment to buy, according to realtor Steavy Carter of Rogers Healy and Associates in the Dallas-Forth Worth, Texas, area.

"The appreciation rate in the greater Dallas market over the last 10 years has averaged between 7% and 8.5% year over year," Carter states. That implies the value of a $500K home bought in 2014 has almost doubled. The longer you wait, the more the house you inherit now will cost you if housing appreciation keeps up."

Assuming prices stay high, you're accumulating equity with every mortgage payment. Since you want to remain in the house for an extended period, you won't be as concerned if prices decline.

This keeps you in a solid financial position and gives you more time for prices to rise when the time comes to sell. You have a foot in the door to develop equity, rather than walking out of a rental house with nothing.

You Can't Afford a Median-Priced Home at Today's Rates, So Hold Off on Buying

Buying a property is a more costly undertaking than renting one. A down payment and closing charges require more than just a sizable sum of money; owning a property sometimes entails additional expenses than renting.

Except in a few niche markets, renting is less expensive than buying a house. Even in housing markets that are seen as affordable, this is true.

Consider Cincinnati, where the U.S. News Housing Market Index indicates that the median home price was $271,000 in September.

A 30-year fixed-rate mortgage on $217,000 would require a down payment of up to $54,000 plus closing fees.

Your monthly payment, excluding taxes and insurance, would be $1,442 based on this rate. Cincinnati, on the other hand, has a median rent of slightly over $1,500.

It's also a more economical financial choice because, as a renter, you aren't responsible for additional maintenance bills, property taxes, or insurance.

Waiting to buy is the wisest course of action if your income and budget are too tight to handle the mortgage payment plus the ongoing costs of living in your house.

Hold off on Buying Since You Can't Find the Ideal House

The number of homes available is gradually rising. As of October 2023, Redfin's most recent data indicates a three-month supply of available properties. Although it is still an undersupplied market, this is a positive step after the pandemic-induced housing frenzy, when the supply of homes was reduced to less than one month.

A market that is in equilibrium is thought to exist for about six months. Many buyers find it challenging to locate a property that suits their criteria at a price they can afford due to a shortage of inventory. Suppose the supply shortage in your neighborhood makes it difficult for you to find the ideal home.

In that case, you should hold off until the market's inventory returns.

"There's a chance housing inventory and demand will increase as interest rates drop," Carter asserts. Many homeowners feel trapped waiting for a more affordable moment to reenter the market since they had a mortgage when rates were as low as 2% or 4%.

They might decide to repurchase a house when rates drop, which would help the inventory rise.

Hold Off on Buying Since You Can't Afford the Current Rates or Prices

It's best to put off buying if your present employment, debt-to-income ratios, amount of outstanding debt, or the typical property price in your area at the current rate make it impossible for you to get accepted for a mortgage.

"As you wait, concentrate on making financial arrangements. Reduce your debt and improve your credit score by taking action. Carter states, "You never want to get into financial trouble when buying a home."

Sometimes, waiting is preferable, particularly if mortgage rates decline as currently anticipated. But remember that no expert can predict what will happen in the housing market in the upcoming year because nobody has a crystal ball.

Contrary to many experts' predictions, property values increased in 2023. The Housing Market Index indicates a 2.2% annual increase in U.S. home prices.

In 2023, many analysts also expected mortgage rates would go down, but they went up.

Timing the market ideally shouldn't be the aim. Your time to select the ideal house, your financial situation, and your personal demands should all be considered while making this choice.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

How Real Estate Agents Can Maximize Their Time in This Difficult Market

Tue, 19 Dec 2023 14:51:01 GMT

(MoneyforAgents.com) – It's critical for realtors to manage their time effectively and concentrate on tasks that will produce the most outstanding results in a real estate market with low demand and high interest rates.

Realtors can continue in business by setting priorities for their work and breaking up their hours into manageable chunks.

An explanation of the optimal time management for realtors:

Prospecting and lead generation (25–30% of the time): Set aside a substantial amount of time to proactively search for fresh leads and prospects. This entails contacting prospective customers looking to purchase or sell despite the state of the market, networking, and cold calling.

20–25% of the time is spent on client communication and relationship building. Retain constant contact with both current and former clients. Develop these connections to bring in recurring business and recommendations, particularly beneficial in a down market.

15–20% of the time should be spent on market research, data analysis, and/or MLS studies. Keep up with changes in the housing market, local housing statistics, and economic factors. Determine new market niches or opportunities by conducting data analysis.

You should spend 15–20% of your time on branding and marketing. These activities are meant to draw attention to your listings and services. Examples are developing strong real estate listings, participating in internet marketing, and enhancing your personal brand via social media and content production.

Continued Education and Adaptation (10–15% of the time): Set aside time to stay current on market trends, new technological advancements, and industry developments. To learn new skills, participate in webinars, seminars, and workshops.

Administrative work (5–10% of time): Although necessary, attempt to reduce the time spent on administrative work using systems and tools for organization and automation.

Self-Survival and Wellness (5–10% of the time): Don't disregard your personal health. To prevent burnout, schedule time for rest, physical activity, and an excellent work-life balance.

Remember that these percentages are estimates that could change based on specific situations and market conditions.

In the real estate business, adaptability is essential, and agents need to be ready to modify their time schedule in response to shifting needs and opportunities in their particular area.

Additionally, this time allocation approach must be reviewed and adjusted regularly to be successful and efficient in an ever-changing real estate market.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

3 Innovative Ways Real Estate Agents Can Boost Housing Affordability

Thu, 14 Dec 2023 13:30:04 GMT

(MoneyforAgents.com) – We in the real estate industry know that homeownership is still a great way to create wealth for future generations, even in the face of rising housing costs.

It should come as no surprise that fair housing and affordability are closely intertwined, as equitable financing and housing are essential to affordability for all.

When fair housing and affordability come together

A recent seller, Bob, made so much money selling his 20-year house that he could buy a retirement property in Savannah, Georgia, and had enough money left over for a healthy retirement nest fund.

This agent's story was related to Bob during a coaching session.

His pension as an employee of an auto plant is not included in this. That is the power of homeownership in the United States, so congratulations to Bob.

The affordability landscape of today

However, what if Bob's evaluation had been underestimated? Or what if he had been misled to another place or wrongfully refused the necessary finance, making it impossible even to buy that specific house?

What if the neighborhood was being redlined, limiting the kinds of purchasers who may submit an offer for his house?

Sadly, even as 2024 draws near, some people still live in such hypothetical scenarios.

Fascinatingly, the Department of Justice has observed two recurring patterns in redlining and other unfair housing (and lending) enforcement proceedings; these two patterns influence and contribute to the supply of overpriced housing.

Among them are:

Redlining hazards were known to lenders, sometimes for years, yet they did nothing about it.
Emails from managers or employees that contain evidence of discrimination, such as negative remarks about certain neighborhoods or overt hostility against protected groups.

A recent example from the news is "BofA was fined $12 million by the CFPB for not gathering data on mortgage applicants."

"On Monday, the Consumer Financial Protection Bureau (CFPB) stated that Bank of America (BofA) had been fined $12 million for breaking federal laws by providing fraudulent mortgage financing information for about four years.

The CFPB claims that hundreds of BofA loan officers omitted to inquire about the demographics of mortgage applicants and misrepresented their response rate, according to HousingWire .

This is important because it is against federal law and because, in many cases, the data gathered here is the only means by which we can hold businesses responsible for unethical lending and housing practices.

To put it another way, the saying "No face, no case; no names, just games" turns into a wicked prophecy.

"In 2022, KeyBank's deceit towards black and low-income homebuyers persisted."

Low- and moderate-income (LMI) borrowers received 19.2% of KeyBank's house purchase loans for the year, down from 19.7% in 2021.

For non-wealthy households looking to purchase a residence, KeyBank's longer-term success is understated by this slight but noteworthy one-year decline: More than 38% of these KeyBank loans were taken out by LMI borrowers in 2018. When compared to other leading lenders, who gave LMI borrowers over 30% of their 2022 buy mortgages, these data points appear even more disgusting. (Refer to NCRC.org )

Everyone should have access to fair housing and lending, not only the wealthy. Let's return to Bob's American dream. What would happen if he could not apply for a home loan? Based on this information, he probably would not have been admitted as a retiree from an auto plant.

"A federal regulator says Citigroup was fined $25.9 million for discriminating against Armenian Americans."

"The agency discovered throughout its probe that Citi staff members were told to flag applications with Armenian last names and then hide why those applications were turned down.

These workers kept any decisions off recorded phone lines or in writing since they knew doing so would violate bank regulations that forbid discrimination based on national origin.

Citizens held the perception that Armenians were more likely to commit fraud and crimes.

In actuality, Citi falsely created documents to conceal its discriminatory practices, according to CFPB head Rohit Chopra in a statement. (Source: ABC7.com)

Sadly, there is still work to be done because the connotations of a person's name or speech pattern are not a recent factor in unjust housing.

What if Bob's credit application was turned down immediately due to his last name? How he would have found himself in the middle of an American nightmare.

Ways to differentiate yourself in your market

Discriminatory housing (and lending) is based only on these three examples. However, we are not helpless.

As a result, we require more Fair Housing DECODERS—an abbreviation for all of us who support fair housing—in the community.

As Fair Housing DECODERS, let’s reflect on how we can demonstrate the letter “R,” which stands for “Reporter,” from the acronym for the above recent real estate news.

What are the duties of reporters? They submit a report!

To elaborate, let’s ensure we are aware of and share vital, fair housing and lending news with our networks so everyone can make informed decisions about which banks (and other companies) to patronize.

Stay up-to-date on necessary lending and fair housing data. I advise registering for Google Alerts at no cost.

You can set up an alert for national and local news with an alert like “fair housing in [insert your town and/or state].”

Proactively keep your network informed with vital fair housing and lending news

Do you enjoy sending a mailer or newsletter? Great, try adding a “fair housing corner.” Do you prefer TikTok, Instagram, or YouTube videos? Videos work well, too.

Add a monthly or quarterly vlog on fair housing. There is no limit to how you can keep your network informed.

Improve your business dealings based on the various fair housing and lending news alerts. Your preferred lenders and other vendor lists could use some end-of-the-year purging.

We have the local sway to hold fair housing and lending violators accountable by asking them how they plan to champion fair housing and lending in the future (they should include timelines and benchmarks).

I suggest not recommending them until they have a satisfactory, proactive plan with corresponding actions.

All businesses should be given another chance if they are willing to remain accountable and supportive of fair housing. When we know better, let’s do better.

As real estate agents, we have an opportunity to decode and interrupt unfair housing when it tries to rear its ugly head in our everyday operations, which can influence affordability for our neighbors.

Let’s make the most of each opportunity.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Foreclosure Relief Now, But Will 2024 Spells Trouble for Homeowners?

Tue, 12 Dec 2023 13:59:25 GMT

(MoneyforAgents.com) – Fewer homeowners are facing foreclosure by the end of 2023 than at the beginning of the year.

A recent survey from real estate data firm ATTOM states that the percentage of homeowners who filed for foreclosure decreased by 7% in November compared to last year.

Real estate analysts, however, cautioned that in 2024, foreclosures are expected to increase.

In a statement, ATTOM CEO Rob Barber stated, "While we've observed a modest decrease in U.S. foreclosure activity, most likely due to seasonal factors, it's essential to note that these fluctuations are a part of the market's cyclical nature."

In November of this year, there were still over 3,200 residences in foreclosure, 5% more than in November of 2022. That represented roughly 1 out of every 4,347 residential properties with a foreclosure filing in November.

Bank repossessions, scheduled auctions, and default notices were among the filings.

Most real estate analysts do not anticipate another wave of foreclosure closings akin to those that swept the nation during the Great Recession.

The riskiest mortgages, those with payments that inflated over time, were removed from the market by new rules and criteria from lenders.

Applicants for mortgages now have to meet far higher qualifications to be approved for a loan.

In addition, the reverse issue of the 2000s is currently present: there are more purchasers than available properties.

Due to this, housing prices have remained high, and few homeowners have experienced loan default. Therefore, homeowners should be allowed to sell their houses without foreclosure , even with specific financial difficulties.

However, that does not imply that some homeowners will remain in their houses.

"We expect a possible increase in foreclosure activity as we move toward 2024 as different economic factors change and market dynamics shift," Barber stated.

Which locations filed for foreclosure most often?

The country saw many foreclosures, with homeowners in the mid-Atlantic, Ohio, South Carolina, and some regions of California suffering the most.

With one in every 2,393 houses at risk, Delaware homeowners had the highest percentage of foreclosure filings in November. Following it were New Jersey (1 in 2,834), South Carolina (1 in 2,711), Ohio (1 in 2,656), and Maryland (1 in 2,537).

With one foreclosure filing for every 1,595 houses, Bakersfield, California, was the metro region with the highest percentage of homeowners.

Following Cleveland were Canton, OH (1 in 1,820), Columbia, SC (1 in 1,922), Stockton, CA (1 in 1,961), and Cleveland (1 in 1,818). (In this section of the ATTOM analysis, only metro areas with 200,000 or more people were considered.)

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Here’s Why Home Sales Will Continue to Climb in 2024

Thu, 30 Nov 2023 14:44:25 GMT

(MoneyforAgents) – If you follow real estate data closely, you’ll know that inventory rose late in November. You also know that new listings are up over last year, too.

However, what you might not know is that home sales are climbing, which is a good sign.

Inventory finally peaks for the year

Housing inventory was down by 0.7% from last week. Inventory hit 566,000 homes on the market, meaning there are 0.5% more homes for sale now than last year.

The new listing volume is up, too. This week, there were 58,000 new listings, with 10,000 of those homes already under contract as immediate sales. A few more sellers are braving the market each week.

Pending sales make a surprising jump

Here’s the surprising data point: We’re seeing more new contracts started each week than last year. We had 52,000 recent pending sales this week.

That’s 5% more sales initiated than this time a year ago.

There are still fewer total contracts pending now versus last year (296,000 versus 304,000 in 2022), so the headlines will still report low sales for several months.

All year long, we’ve had 20% to 40% fewer sales each week, but now the rate is expansionary, with 5% more sales this week than the same week a year ago. However, if mortgage rates were to jump again, we could see sales slip, so it’s a delicate balance.

Sales may be down, but home prices had a softer landing in 2023

Overall, home sales cratered in 2023, but home prices are up 1% to 3% over 2022–a trend that looks to continue. The median price of single-family homes in the United States is $425,000.

There’s nothing bullish on the horizon for home prices in 2024. Given the economic risks and gently rising home inventory, we will likely see some declines there.

Watch the following video to get the latest housing market update from Altos Research :

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

2024 Housing Market Crash Coming? Morgan Stanley Gives Insight

Tue, 21 Nov 2023 13:09:15 GMT

(MoneyforAgents.com) – According to Morgan Stanley, the U.S. home price correction that started in the summer of 2022 is still going strong, whose most recent prediction model predicts a 3 percent nationwide decline in home prices in the upcoming year.

Home prices in the United States fell for seven months following their June 2022 peak due to a decline in demand, with economists declaring that the market was going through a significant correction.

However, by early 2023, home prices began to rise once more as demand remained high and inventory levels remained generally low across the nation, prompting some to predict the market slump was probably finished.

Even though mortgage rates remained high, property prices rose 0.7% higher in May than the previous record set in June 2022. However, Morgan Stanley predicted that the housing downturn would persist in 2019.

Morgan Stanley, one of the greatest names in investment banking globally, had forecast back in August that home prices would drop by 2 percent the following year.

It updated its projections in October, indicating that home values would decline by as much as 5% in the upcoming year.

Morgan Stanley has revised its 2024 predictions again, this time predicting a mild decline of roughly 3 percent in housing values. On Monday, Newsweek sent Morgan Stanley an email requesting a comment.

Both increased sales inventory and improved affordability are what we anticipate. As the rise in inventory balances the increased demand, U.S. home prices should witness small decreases (down 3% YoY), according to Morgan Stanley, as reported by writer Lance Lambert on X, formerly known as Twitter.

The top U.S. economist at Morgan Stanley, Ellen Zentner, believes that this additional price decline will benefit the American housing market, particularly for prospective homeowners.

In a recent podcast, the investment banking firm Zentner stated, "We expect home sales to be weak in the first half of next year, but activity should pick up in the second half and further into 2025." The podcast was aired on November 17.

The economist believes that the main factor behind this recovery will be increased affordability, which has been a major problem for American homebuyers in recent years as prices have risen to all-time highs and mortgage rates have skyrocketed since 2022 as a result of the Federal Reserve's efforts to fight inflation.

The situation should also be improved by an increase in inventory, which has been a major problem in recent years, driving up prices as purchasers compete over a limited supply.

"We also think homebuilding activity will be stronger in the second half of next year," added Zentner.

She added, "As inventory increases to balance out demand growth, home prices might experience slight reductions. With reduced rates, home sales should increase more logically by 2025."

"It is unlikely that the housing market would collapse to the extent it did in 2008; instead, the investment manager anticipates "a soft landing for the U.S. economy," according to Zentner.

"We still maintain this view, even though strains in the economy are becoming more noticeable and recession fears remain alive," she stated.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Housing Market Predictions for 2024

Thu, 16 Nov 2023 15:08:39 GMT

(MoneyforAgents.com) – In September 2023, the median sale price of an existing home in the United States was a substantial $394,300, marking the third consecutive month of year-over-year price rises.

Additionally, as of the beginning of November, the average rate for a 30-year mortgage was 7.69 percent, which was still close to 20-year highs but mercifully below 8 percent.

In the upcoming year, residence values, mortgage interest rates, and stock levels will all influence housing affordability. Wondering where these patterns might lead? Read on to learn what the experts predict for the 2024 housing market.

In 2024, what will become of the housing market?

Because of the Federal Reserve's fight against inflation, interest rates nearly doubled in 2022 and have been high ever since. Mortgage rates have increased in lockstep with the Fed's extended run of rate hikes, even though the Fed does not directly set mortgage rates; instead, mortgage lenders follow its lead.

'Higher rates will always be the new normal as the economy keeps growing," said Greg McBride," Chief Financial Analyst at Bankrate.

Although many believe the Fed's battle on inflation may soon end, purchasers will likely still feel pressured in 2024.

According to Greg McBride, CFA, chief financial analyst at Bankrate, "the new normal of higher rates is here to stay as long as the economy continues to motor along."

He added, "Mortgage rates would significantly drop during a severe economic downturn, but be cautious about what you ask for. In most parts of the nation, home prices will increase at a low- to mid-single-digit rate."

Home Loan: Important housing market data

NAR data shows that the median price of a home sold in September 2023 was $394,300, a 2.8 percent increase from the previous month.

According to NAR, the country's housing inventory was only 3.4 months' supply as of September, which is low enough to be regarded as a seller's market.

In August 2023, home-price rise increased by 2.6 percent, the seventh consecutive month of gain, according to the most recent Case-Shiller Index from S&P CoreLogic.

As of November 8, 2023, the average rate for a 30-year mortgage was 7.69 percent, according to Bankrate's most recent nationwide survey of major lenders.

As of October 2023, the U.S. inflation rate was 3.2%, marginally higher than the Federal Reserve's stated target of 2%.

Will sales of homes drop?

Although housing prices have undoubtedly remained stable this year, sales have significantly decreased.

According to NAR data, existing home sales in September 2023 fell to an annual rate of 3.96 million, a 15.4% decrease from the previous month.

If mortgage rates decline in 2024, these patterns will reverse.

According to Lawrence Yun, chief NAR economist, "retaining mortgage rates will bring more buyers and sellers to the market and get Americans moving again."

Yun estimated at a November NAR conference that sales may increase by as much as 15% in the upcoming year.

"Housing sales are anticipated to rise slightly this year," says Redfin's chief economist, Chen Zhao. She clarifies, "We are not anticipating a sharp increase in sales, as rates are likely to stay above 6 percent."

CoreLogic chief economist Selma Hepp said, "Lower mortgage rates would help spur home sales activity, which is expected to increase in 2024 compared to 2023."

She continued, "Declines in mortgage rates will encourage more sellers to sell their current residence, which will increase the number of transactions by bringing much-needed inventory to the market."

Will there be more homes available?

Speaking of desperately needed inventory , a few houses were unavailable in 2023. As of September, there were 1.13 million existing residences available for purchase nationwide, an 8.1% decrease from the same month the previous year.

The supply that amount represents is only 3.4 months, significantly less than the 5 to 6 months typically required for a balanced market.

"There are just not enough houses available for purchase," Lawrence Yun, National Association of Realtors Chief Economist, declared earlier this year. "A doubling of inventory can be easily absorbed by the market."

A massive influx of newly constructed homes would need to hit the market, or a rise in homeowners advertising their current properties would cause inventory levels to drastically improve.

Even though they both appear improbable, Yun predicts a slight rise in available homes by 2024.

According to Yun, "More new homes will be built, and more current homeowners will be prepared to sell and forfeit their cheap mortgage rates."

Will the cost of homes decline?

The median home price in September of $394,300 was just $20K behind the highest monthly price the NAR has ever recorded ($413,800, established in June 2022). Housing prices have been surging recently, reaching all-time highs.

Will housing prices then decline in 2024? Yun thinks that this is not likely, estimating that home prices will increase by three to four percent.

Zhao states, "There is a close relationship between housing inventory and prices. Inventory will remain limited since sellers will probably not want to give up their cheap interest rate for a significantly higher one."

"As time goes on, more homeowners might find themselves "forced" to sell because of unforeseen circumstances. Thus, inventory might rise from its current pitiful levels, but not by much. Therefore, until demand declines, it is unlikely that prices will decrease year over year," Zhao added.

Is it a seller's or a buyer's market in 2024?

The tight inventory provides sellers with an advantage in the current market. Every home that hits the market becomes a hot commodity since more buyers than available homes exist.

This would not be the case if there were more possibilities. It appears unlikely that the seller's market will alter in the upcoming year without a notable inventory increase.

According to Zhao, "demand will likely exceed supply, similar to current conditions given expectations about interest rates and supply." "Supply is probably going to stay below our definition of a balanced market."

"Low inventory won't be cured in the near future, but high mortgage rates will hurt demand and result in a more balanced market in 2024," predicts McBride.

In 2024, sellers might have to give in more frequently on closing fees or interest-rate buydowns, and purchasers should exercise caution when taking up more debt than they can afford to repay.

In several coastal regions, insurance costs have increased significantly, home prices are at record highs, and finance costs are higher than they have been for over 20 years.

You're not receiving a decent deal. Therefore, it could be wise to be willing to walk away.

Final thoughts on the housing market in 2024

The factors that will make the 2024 housing market difficult for buyers and sellers are limited inventory levels, steep property prices, and high mortgage rates.

Key takeaways:

Low levels of inventory mean that sellers continue to have the upper hand in the housing market.
High mortgage rates and steep home prices are dissuading would-be buyers.
If rates were to drop in 2024, that would spur the market for both buyers and sellers.

However, if rates cool in 2024, market activity should rise accordingly.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Mortgage Rates Log BIGGEST Drop in Over a Year

Thu, 09 Nov 2023 03:02:52 GMT

(MoneyforAgents.com) – According to the most recent figures from the Mortgage Bankers Association , the most popular U.S. house loan rate recorded its most significant weekly fall in more than a year last week, while mortgage demand increased.

According to data from the MBA on Wednesday, the average interest rate on 30-year fixed mortgages with loan balances of $726,000 or less decreased last week from 7.86% to 7.61%.

Simultaneously, the overall mortgage application amount increased by 2.5% over the previous week.

As investors poured money back into U.S. Treasurys following weeks of volatility that saw the benchmark 10-year bond yield rise above 5% for the first time since 2007, mortgage rates fell in tandem with falling bond yields.

Joel Kan, vice president and deputy chief economist at the MBA, stated that "last week's decrease in rates was driven by the U.S. Treasury's issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market."

Applications for mortgage refinancing rose 2% over the week, but they were still 7% less than at the same point in 2022.

In the end, mortgage rates have not decreased since November of last year either, indicating that homeowners and potential purchasers are no longer motivated to refinance or enter the market.

Nevertheless, house prices are still high, mortgage rates are close to multi-decade highs, and available homes are below historical levels.

And even if the job market data released last week showed that things were improving, Wall Street analysts and economists don't think the Federal Reserve will loosen monetary policy any time soon, which means that mortgage and Treasury rates will likely stay high.

Money for Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

How Much Homebuyers Must Earn to Afford the Typical U.S. Home

Thu, 26 Oct 2023 14:45:57 GMT

(MoneyforAgents.com) – For Americans, affording a home is more difficult than ever.

The median home price in the United States is $114,627, 15% ($15,285) more than a year earlier and more than 50% higher than when the epidemic began.

That's the most income required annually to purchase a home on record.

This is based on a comparison of the median monthly mortgage payments for August 2023 and August 2022 homebuyers conducted by Redfin .

Inflation is taken into account while analyzing the national income data. For more information on methodology, see the bottom of this report.

Housing costs are higher than ever because of the combined effects of extremely high mortgage rates and growing home prices.

In August, the 30-year fixed mortgage rate averaged 7.07%. Since then, mortgage rates have increased even further; in the week ending October 12, they reached 7.57%, the highest level in over 20 years.

Yet, inadequate availability drives up housing prices, even if rising mortgage rates have reduced demand.

August saw the average U.S. home sell for $420,000, up 3% from the previous year and only $12,000 below the record in mid-2022.

The average monthly mortgage payment for a home buyer in the United States is $2,866, a record high.

That represents a 20% increase from $2,395 a year earlier, and by then, payments had already increased significantly from the start of the pandemic—a period marked by meager mortgage rates and still-rising home values.

For example, in August 2020, with a median home price of $329,000 and an average mortgage rate of 2.94%, the standard monthly payment was $1,581.

To afford the average home during the period, a buyer must make $75,000 annually.

The average American household's income is around $40,000 below what it takes to purchase a home at the median price.

Approximately $75,000 was the median household income in 2022, the latest year for which yearly income statistics are available.

In 2023, hourly salaries have increased, but not quite as quickly as the income required to buy a home: the average hourly salary in the United States has risen by roughly 5% in the past year.

In the perfect environment for homebuyers, higher mortgage rates would reduce demand and drive down property prices to offset high interest costs.

However, that is not the current situation: while the number of new listings is marginally increasing, inventory is still at record low levels as homeowners hold onto their cheap mortgage rates, which is driving up prices, according to Chen Zhao, the research lead for Redfin Economics.

"Those dedicated to purchasing a property right away, especially first-time buyers, should be open-minded. A condo or townhouse is less expensive than a single-family home; alternatively, you should consider relocating to a more reasonably priced area of the nation or region," he added.

For buyers who are moving up and have all the cash, affordability is less of an issue. The first-time homebuyer is most affected by the significant increase in income required to acquire a property.

High mortgage rates have no effect on buyers who can afford to pay cash because these buyers probably make more money than is required to buy a house in the first place.

Unlike first-time homebuyers, buyers selling their present residence to purchase another are in a better position because they have probably accrued equity in their current residence, lessening the blow of skyrocketing monthly payments.

The caveat on top of the proviso is for people who purchased a home during the peak of the epidemic era with a really cheap mortgage rate and now need to sell it since they may have lost money in addition to forfeiting the low rate.

Metro-level Highlights: All major metros have seen an increase in the income required to purchase a home; Miami has seen the most significant increase, and Austin is the fewest.

The analysis covers the 100 most populated U.S. metro areas for which data is available as of August 2023.

It should be noted that increases in the annual income required to purchase a home in the metro area are not inflation-adjusted.

Metro areas where the minimum income has grown the most: The largest percentage increase among the major U.S. metros is in Miami and Newark, NJ, where purchasers must make 33% more than they did a year ago to afford the typical property.

Miami homeowners must make $143,000 yearly to afford the area's $3,580 monthly mortgage payment. Newark homeowners must make almost $160,000 to afford the $3,989 payment.

Other metros where the required income has risen by more than thirty percent: Four other major cities in the eastern part of the nation—Bridgeport, CT ($183,000); Dayton, OH ($60,000); Rochester, NY ($66,000); and Hartford, CT ($95,000)—have seen increases in the income required to purchase a median-priced home of more than 30%.

In every large metro, buyers must make more money: Every central metro area has seen an increase in the income required to purchase a home due to skyrocketing mortgage rates, even in areas where prices have dropped in the past year.

Hotspots for pandemic home purchases have seen the slightest increase in necessary income: 8% more than a year ago. Austin, Texas, homebuyers must make $126,000 to purchase the median-priced home—the slightest rise among the major U.S. metros.

This is true even though Austin real estate prices dropped 7% annually in August following a sharp increase during the pandemic due to a surge in remote workers moving there.

The next-smallest increase was in Boise, ID, another hotbed for pandemic home buying, but demand has now decreased, rising 9% to $127,000.

Following Salt Lake City, Fort Worth, Texas, and Lakeland, Florida, are gains of almost 13% year over year. Home prices have decreased from a year ago in all those metro areas.

In half of the nation's leading cities, buyers must have six figures in income: Buyers in 50 of the 100 metro areas included in this analysis must make at least $100,000 to afford the typical home in the neighborhood.

Buyers must have a minimum income of $50,000 nationwide.

Bay Area purchasers need to make $400,000: The median price of a home in San Francisco and San Jose, California, the most expensive cities in the nation, is up around 25% year over year and requires a buyer's income of over $400,000.

The following five metro areas are in California: Oxnard ($233,000), San Diego ($241,000), Anaheim ($300,000), Oakland ($250,000), and Los Angeles ($237,000).

The lowest income requirement for Rust Belt buyers is still higher than a year ago, though: Detroit's median-priced home now costs $52,000, 19% more than a year ago for prospective buyers.

That is the lowest income in the United States needed to afford a home. Next are Little Rock, Arkansas, and three Ohio metro areas (Akron, Dayton, and Cleveland), each requiring about $60,000 in annual income to own a property.

Methodology: How the numbers were crunched

The figures above are based on a comparison of median monthly mortgage payments in August 2023 and August 2022 by Redfin .

A monthly mortgage payment is deemed affordable when a homeowner pays no more than thirty percent of their salary for housing.

The monthly median mortgage payments are determined by considering the average mortgage interest rate and the median transaction price for that particular month and assuming the buyer placed a 20% down payment.

August 2023 saw an average mortgage rate of 7.07%, compared to August 2022's average of 5.22%. The Consumer Price Index is used in this research to correct the national income statistics for inflation.

The National Association of Realtors Housing Affordability Index has declined by nearly half since 2020.

With the average 30-year fixed mortgage rate around 8%, the highest since 2000, home affordability is at its worst since at least 1989.

Economists say that a combination of falling interest rates, rising income, and stability to lower home prices is needed. Building more homes amid sluggish new inventory is also crucial.

2024 will be a very telling year for the housing market.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

What 8% Mortgage Rates Will Do to the Housing Market

Thu, 19 Oct 2023 13:20:19 GMT

(MoneyforAgents.com) – According to Bankrate's weekly national survey of large lenders, the average rate on 30-year fixed mortgages jumped this week, climbing to 7.99 percent, up from 7.75 percent the previous week.

The average rate on 30-year home loans hit its highest point since August 2000, according to Bankrate research.

That was before the Sept. 11 terror attacks led the Federal Reserve to slash interest rates and well before the Great Recession spurred the Fed to keep rates low.

The current run-up in mortgage rates reflects various factors: a resilient U.S. economy, the Fed's ongoing war on inflation , and, more recently, a sharp rise in 10-year Treasury yields, which serve as an informal benchmark for 30-year mortgage rates.

The 8 percent barrier is just one more unwelcome milestone in the upward trajectory of borrowing costs.

"We've seen a tremendous run-up in rates," says Tom Wind, head of Consumer Lending at U.S. Bank. "It's kind of a shock."

Mortgage rates

The national average for 30-year mortgages was 7.99 percent as of Oct. 18.

Average 30-year mortgage rates in the 10 largest metro areas ranged from 7.60% in Chicagoland to 8.13% in Dallas.

What happened to mortgage rates this week?

The 30-year fixed mortgages in this week's survey had an average of 0.48 discount and origination points .

Over the past 52 weeks, the benchmark 30-year fixed-rate mortgage has averaged 6.88 percent. A year ago, the 30-year fixed-rate mortgage was 6.92 percent.

Four weeks ago, that rate was 7.42 percent.

The 30-year fixed-rate average for this week is 1.72 percentage points higher than the 52-week low of 6.27 percent.

As for other loans:

The 15-year fixed-rate mortgage was 7.19 percent, up from 7.07 a week ago.
The 5/6 adjustable-rate mortgage (ARM) was 7.39 percent, up from 7.33 percent a week ago.
The 30-year fixed-rate jumbo mortgage was 7.72 percent, up from 7.64 percent a week ago.

How mortgage rates affect home affordability

The national median family income for 2023 is $96,300, according to the U.S. Department of Housing and Urban Development.

According to the National Association of Realtors, the median price of an existing home sold in August 2023 was $407,100.

Based on a 20 percent down payment and a mortgage rate of 7.99 percent, the monthly payment of $2,387 amounts to 30 percent of the typical family's monthly income.

The sharp rise in mortgage rates has squeezed affordability and sparked a slowdown in home sales.

First-time buyers are especially challenged by this market. Home prices haven't fallen significantly, and values are unlikely to decline, given the shortage of homes for sale.

"Higher mortgage rates have a dual impact on the housing market: reducing affordability for buyers and strengthening the rate lock-in for sellers," says Odeta Kushi, deputy chief economist at First American.

"The combination of reduced affordability and increased strength of the rate lock-in effect is likely to continue to suppress home sales because you can't buy what's not for sale, even if you can afford it," he added.

Will mortgage rates go down?

Some economists see that mortgage rates remain in the 7 percent range, while others aren't ruling out a move to 8 percent, according to Bankrate's October 2023 mortgage rate forecast .

The Mortgage Bankers Association forecasts the 30-year fixed rate to fall to 7.2 percent by the year's end—a prediction nearly an entire percentage point above its forecast from last month.

"The Fed's hiking cycle is likely nearing an end, but while Fed officials have indicated that additional rate hikes might not be needed, rate cuts may not come as soon or proceed as rapidly as previously expected," Mike Fratantoni, chief economist at the Mortgage Bankers Association, said this week during the group's annual conference.

Economists expect to see mortgage rates decrease by the end of 2023.

Still, the strength of the U.S. economy has thrown a wrinkle into those predictions. So has the jump in 10-year Treasury yields.

Many in the industry expect rates to peak at 8 percent. "I think they'll touch the 8 percent level, and then they'll come back down," says Vishal Garg, CEO of lender Better.com .

Mortgage rates are also chained to inflation, a metric the Fed has been working to control. At its September meeting, the central bank opted to keep rates unchanged .

While the Fed doesn't directly set fixed mortgage rates , it does set the tone of the interest-rate environment, and as the central bank has boosted its policy rate from zero in early 2022 to a range of 5.25 percent to 5.5 percent now, mortgage rates have followed suit.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

What Many Buyers Are Doing to Make a Home Purchase Work

Thu, 12 Oct 2023 18:41:20 GMT

(MoneyforAgents.com) – Due to high interest rates, many prospective homeowners are trying to devise innovative ways to save enough cash for their first house.

Last week, the average mortgage rate reached a 23-year high of 7.49%, and the daily rate has risen.

In addition to decreasing the purchasing power of homeowners, high rates have compelled many of them to explore other options like co-buying a property or living with family to save money.

According to a news release that accompanied the company's most recent consumer sentiment survey, Doug Duncan, Chief Economist at Fannie Mae, "mortgage rates persistently over 7% appear to be deepening the malaise consumers feel about the home purchase market."

"In fact, high mortgage rates surpassed high home prices as the top reason why consumers think it's a bad time to buy a home, a survey first," Duncan stated.

Consumers anticipate higher mortgage rates and costs.

According to the September Fannie Mae Home Purchase Sentiment Index, customers are becoming less and less enthusiastic about becoming homeowners.

It's an all-time low for the study, with only 16% of respondents saying it's an excellent time to buy, down from 18% in August.

Similarly, only 17% of consumers hold out hope that mortgage rates will drop over the next 12 months, but 46% of purchasers anticipate rate increases.

In addition, 42% of respondents anticipate higher housing prices, while 23% anticipate lower prices.

According to Fannie Mae , growing concerns about losing one's job and decreasing household income are correlated with pessimism about the real estate market.

For example, the percentage of customers who worry about losing their employment increased slightly from 22% to 23%. Additionally, the proportion of respondents reporting lesser income rose from 12% to 13%.

"In our view, all of this points to home purchase affordability remaining a problem for the foreseeable future, which we forecast will keep home sales sluggish into next year," Duncan stated.

Despite the bleak general picture, some purchasers make a house purchase work.

According to a recent Realtor.com poll , while affordability concerns may be weighing on buyers, they have encouraged some to explore unconventional paths to becoming first-time homeowners.

More than half of the respondents who indicated they intended to acquire a home within the next year said they would like assistance from their parents in making the purchase.

About a third of respondents said they live with other family members to save money.

At the same time, another 29% stated they had moved in with their parents to help save for a down payment.

According to the report, most potential purchasers are also amenable to unconventional purchasing agreements.

Eighty-three percent of those surveyed indicated they would consider living with someone other than a husband or partner, like a kid or relative, and co-buying their primary residence.

Hoping to be close to family to share childcare and reduce expenses.

In addition to the short-term savings that living with family provides, many are planning to stay close to family even after they've saved up by purchasing a home nearby their relatives. Twenty-eight percent of respondents who are planning to buy a home in the next year are doing so in part to be closer to their family.

Of those who are planning to buy a home to be close to family, many are motivated by financial reasons and sharing the cost and responsibilities of childcare. Helping care for other children in the family was cited as a top reason by that group (50%), followed by needing affordable help caring for their own children (44%). Other top cited reasons for buying near family were because they liked the area, prices/cost of living have become too high where they currently live, or health issues.

While many would-be buyers are looking to buy a home near their family, many respondents already call their family neighbors, with about 4 in 10 surveyed consumers saying their parents, siblings, extended family or grandparents have purchased a home near them.

Co-buying and living with family longer-term.

As housing affordability continues to be a barrier for many would-be buyers, co-living or co-buying with family has gained significant popularity in recent years. Eighty-three percent of those surveyed would consider buying a home to live in together, as a primary residence, with someone other than their spouse/partner, including an extended family member or friend.

Respondents were most open to buying a home with their child (37%), a romantic partner they're not married or engaged to (31%); a sibling, cousin or other family member from the same generation (27%), and their parents or in-laws (23%).

Realtor.com Chief Economist Danielle Hale stated, "Mortgage rates hovering at or near 7% have eroded buyers' purchasing power at a time when the consistently low number of homes for sale has kept housing markets surprisingly competitive."

According to Hale, these "tough market conditions" seem to have altered consumer perceptions of and actions related to homeownership. This involves making a lot of prospective homeowners think about "alternative living situations they may not have considered in the past."

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

When Housing Prices Will Drop: Experts Weigh In

Thu, 05 Oct 2023 16:25:23 GMT

(MoneyForAgents.com) – Home prices are persistently hovering near record highs, with little relief in sight. Here's what you should know about home prices and the market that has created them.

Talking about dropping home prices can cause panic for almost any homeowner. Most individuals consider their property their single most significant investment.

Thus, any threat to it naturally causes them to feel anxious.

There has been relatively little nationwide reduction in housing market activity since the peak of home prices in 2022. The second half of 2022 saw a sharp price decline, but they began a steady recovery in March of this year.

The U.S. New Housing Market Index shows that as of July 2023, the median home price was $422,000, 2% less than the peak of $431,000 in May 2022.

But compared to July 2022's $413,000, year-over-year statistics show a very slight 2% increase in price.

Although there may be occasional fluctuations from month to month, there isn't a discernible decline in house prices.

"In most markets nationwide, I do not anticipate a significant decline in home prices," stated Lisa Sturtevant, chief economist at multiple listing service Bright MLS.

She added, "Demand has been strong despite high mortgage rates, and inventory is still very low."

While several factors contribute to these consistently high prices, Sturtevant explicitly mentions the shortage of available homes, the high percentage of first-time homeowners, and the record equity retained by repeat buyers.

In the end, prices won't decrease only because of competition if there are few residences available and many buyers who can purchase them.

We're breaking down the various price decreases, declines, and decelerations you may hear about, along with what this means for home prices now and in the future, to help you better comprehend the facts.

What Does It Mean When Prices Drop?

There are several possible interpretations for the term "dropping home prices." Describe the possible kind of price drop that it is:

The listing agent and seller will discuss lowering the asking price of a house if it is sitting on the market and not drawing any attention.

Larger-scale listing price reductions indicate that a seller's market that was previously tight is becoming less competitive and may even be shifting in favor of buyers.

According to Redfin data, just 18.4% of houses had listing price reductions in August 2023, a decrease from 20.2% in August 2022 and even less than the peak of 21.7% in October 2022.

Longer median days on the market are frequently correlated with reductions in listing prices. Homes across the country were on the market for an average of 29 days in July 2023, compared to 21 days in July 2022.

Slowdown in the rise in sale prices.

Though they are increasing far more slowly than a year ago, home sale prices are still higher in some cities.

According to Redfin data, a home's median sales price peaked in May 2022 at $434,780, a notable increase of 15.4% from May 2021's $376,634. But prices remained unchanged from May 2022 to August 2023, falling just 3.2% to $420,846.

Monthly drops in the price of homes.

Dropping month-to-month pricing if, for example, the August median home sale price was less than the July median.

However, month-to-month figures are sometimes considered too unpredictable to show shifting trends unless placed within a larger framework due to the housing market's predominantly seasonal character.

If the August 2023 median house sale price was less than the August 2022 median price, there has been a year-over-year decrease in the median price.

Do house prices see a decline?

The price of homes has climbed very slightly nationally year over year. Still, month after month, it is beginning to level out. According to Redfin data, the sale price in August 2023 was $420,846, representing a 3% rise in value over the same period in 2022.

Closed listing prices increased by just 0.22% month over month.

The sale-to-list price is still 99.9% and hasn't altered in a year, despite 18.4% of properties having reduced their costs in August 2023.

This is probably because of the continuous shortage of available housing inventory.

This indicates that instead of attempting to enter the market with somewhat lower offers, as is sometimes the case in a buyer's market, buyers are offering sellers precisely what they're asking for their houses.

"We're seeing houses listed and sold pretty close to their listing price," said Chris Stroud, chief research officer at HouseCanary and co-founder.

He added, "Sellers are unwilling to give up low rates and sell their homes at a discount, so cuts are coming down significantly."

Redfin reports that the median days on the market in August 2023 grew by just 4 days from the previous year to 30 days.

Although there has been a notable increase from the July 2021 low of 15 days, the median days on the market remain lower than any point between August 2018 and August 2020.

The continuous shortage is to blame for this.

There were 2,361,948 homes listed in the U.S. as of August 2018; however, this number has been falling for years.

As of August 2023, there were only 1,514,235 homes listed, a 35% loss over the previous five years and an 18.6% decline year over year.

Over five years, the median sales price of homes increased by 47.5%, from $285,252 in August 2018 to $420,846 in August 2018. However, many believe this growth rate cannot be sustained.

Stroud states, "Prices are still close to all-time highs, and mortgage rates are at multidecade highs."

Given these two issues, he added, "There isn't much potential for home values to rise shortly. However, if the market were to become oversupplied with goods, there is a chance that prices may decline in the future."

Where are the drops in home prices?

Even though it appeared that home prices might drop earlier this year, things had significantly improved by August 2023, when the most recent sales data was available.

Not only were prices not declining continuously, but many had begun to rise again.

Redfin claims there haven't been any regular price reductions in cities with the largest predicted outward migration, including San Francisco, New York City, Los Angeles, Washington, D.C., and Louisville, Kentucky.

In August 2023, 26.3% fewer residences were sold in San Francisco than the previous year. Still, prices increased by 6% over that same period.

Even though the number of homes sold in New York City decreased by 18.2%, there was still a slight decline in sales prices—just 0.61%.

Even though the number of residences sold decreased by 4.5%, Los Angeles saw 0.4% growth. Therefore, the city hardly made a dent in the data.

Washington, D.C., is the only location in the top five for outbound migration that has had any actual reduction in home prices; in August 2023, prices fell 3.5% year over year, and sales fell 8.3% year over year.

Even in Louisville, Kentucky, where home sales have decreased by 14.2%, the median sales price has increased by 4.2%.

According to RE/MAX president and CEO Nick Bailey, recent statistics revealed similar results, with almost little change in the most falling markets.

Bailey stated, "According to the RE/MAX National Housing Report for August, out of the 50 markets we pulled, the ones with the biggest year-over-year decrease in median sales price were Salt Lake City, Utah, at -3.7%; Phoenix, Arizona, at -2.6%; and Portland, Oregon, at -1.7%."

What Is Going to Happen Next to Home Prices?

There's no telling what the real estate market will do next because so many variables are at play.

It is challenging to project future prices due to various factors that have produced a market that is distinct from others we have encountered.

"The leading causes of high real estate prices," according to Bailey, "are demand, rising interest rates, and a shortage of inventory."

He added, "90% of individuals are thought to have interest rates under 5%, with half of those rates being less than 3.5%."

"Consequently, those prospective buyers of higher-quality residences remain inactive and do not list their properties for sale. Furthermore, new building isn't happening quickly enough," he said.

One of the few things slowing down increases in home values is that many homeowners have chosen not to sell at this time to avoid taking on a higher mortgage interest rate for the property they would purchase.

Sturtevant states , "Many current homeowners have meager mortgage rates and have not been incentivized to sell."

He added, "However, some people will have to move and sell their homes due to changes in their lives or careers. This fall, when people have to swallow the bitter pill of taking on a higher mortgage rate, listing activity should pick up a little."

Sturtevant continued, "A crucial cutoff point for homeowners is set at 6%. We might witness an upsurge in listing activity as rates reach 6%. But it's conceivable that 6% won't appear until mid-2024."

Redfin CEO explains why the housing market is taking a beating:

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Housing Giant Predicts Fall 'Sweet Spot' in Real-Estate Market

Tue, 03 Oct 2023 13:27:25 GMT

(MoneyforAgents.com) – Rising mortgage rates have driven up the price of homes in the US over the past year, but if you have the funds, Zillow believes now is an excellent time to buy.

According to research released on Thursday by senior economist Jeff Tucker, Zillow's evaluation is predicated on its analysis, indicating that more sellers are compromising their asking prices.

The real estate industry reports that in the week ending September 16, 9.2% of house listings experienced a price reduction, the most significant percentage since November.

It goes beyond pricing alone. Additionally, prospective homeowners have a lot more options.

"This fall is looking more and more like a sweet spot: There are more motivated sellers and more active listings overall than any time since last December, improving buyers' chances to find the right fit," Tucker stated in the report.

"For determined buyers with enough budget room to accommodate the recent jump in mortgage rates," Tucker wrote.

Due to rising costs from a lack of availability and high mortgage rates, US home sales have slowed as properties have become less affordable.

In the latest Freddie Mac data, the average 30-year fixed mortgage rate reached a 23-year high of 7.31%.

Tucker continued, "The high rate of price reductions this fall either indicates that sellers have overreached with excessive list prices, or buyers have pulled back, or some combination of both."

Tucker noted an increase in new listings in August compared to July, which was "unusual," and that this coincides with the price reductions on listings.

"This is because fewer listings have been added since July of last year; therefore, the increase in August may indicate that the worst of the "listings drought" is finally coming to an end," he continued.

The August boom in real estate listings and the decline in buyer demand for homes indicate that more inventory is becoming available to prospective purchasers.

"Even then," he continued, "purchasers have ample reason to be balking right now due to the increase in mortgage repayments."

Zillow reports that the average monthly mortgage payment in August was $1,896 due to rising real estate values, 18% more than a year earlier.

All told, during the last three years, the monthly mortgage payment—principal and interest included—has increased by an astounding 122%.

Zillow reported Tuesday that the value of the US housing market has surged by 50% from the pre-pandemic days in January 2020 to nearly $52 trillion.

What are your thoughts on Zillow's housing market report?

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Revolutionary AI Tools That Are Changing Real Estate Forever

Tue, 12 Sep 2023 20:59:58 GMT

(MoneyforAgents.com) – Do you want to improve the way you market your properties? Then, you ought to consider utilizing A.I. tools to do this. Using artificial intelligence (A.I.) solutions, real estate marketers may enhance client experiences and increase conversions.

In this blog article, we'll look at the possibilities of A.I. tools for real estate marketing and provide implementation guidance.

What are A.I. Tools, and How Can Real Estate Marketers Benefit from Them?

Commercial and noncommercial artificial intelligence (A.I.) tools are computer programs that mimic human intelligence. They can perform activities that often require human intellect.

A.I. techniques may help real estate marketers identify patterns, understand consumer behavior, and produce insights. A.I. solutions in real estate marketing, personalizing communications, creating automated video material, and enhancing the client experience are all possible.

In addition, A.I. solutions can automate operations like lead creation, client segmentation, and data analysis. Real estate marketers can spend less time and money while still providing excellent service to their clients by adopting A.I. tools.

AI-Powered Chatbot for Real Estate: ChatGPT

The AI-powered chatbot ChatGPT, developed by Open A.I., can be extremely useful for real estate marketers and other professionals. It can create leads, respond to client questions, and provide specialized support.

The chatbot can understand client inquiries thanks to natural language processing (NLP) technology, allowing it to respond with important information.

ChatGPT allows users to ask inquiries and receive personalized advice. It can also locate potential leads and automatically send follow-up emails.

A.I. Tools for Real Estate Marketers: Benefits

The real estate marketing process can be streamlined, and lead creation can be increased with the help of A.I. tools. By leveraging A.I. solutions, real estate marketers may spend less time and money providing top-notch customer experiences.

Additionally, customer behavior trends can be found, and A.I. techniques can produce insights. This can help real estate marketers adjust their marketing strategies to meet customer needs better and boost conversions.

A.I. solutions can automate a few phases of the marketing process. For instance, an A.I. tool can automatically send customized emails with relevant content based on consumer information.

This could shorten the time spent doing manual tasks and improve client engagement.

Enhancing Customer Experience with A.I. Tools

The client experience can be improved by using A.I. techniques. For example, AI-driven chatbots can provide customized customer service and address client inquiries.

AI-powered email bots may automatically create tailored emails based on consumer information. This might improve consumer satisfaction and increase engagement.

Another use of A.I. techniques is automated video content generation. For instance, generative A.I. can produce customized videos with top-notch production.

A.I. video generators can create videos from pre-existing photos and videos. Conversion rates rise as a result, and customer experiences become more attractive.

Automating Video Creation with Generative A.I. Videos

Videos made with AI-powered software are referred to as generative A.I. videos. These automatically created films can be tweaked with personalized information.

Generative A.I. films are the best option for real estate marketers who want to create high-quality video content quickly. Generative A.I. videos enable the production of interactive video tours of sites.

They can also be employed to create explanation videos and commercial videos. Use Generative A.I. videos to hold viewers' attention and boost conversions.

Automating Video Creation Using A.I. Video Generator

A.I. video generators are programs that use A.I. to produce videos from photos and videos that already exist. With this, videos may be made quickly and easily.

This makes it simple and quick to create videos. Explainer videos, interactive video tours of properties, and video commercials can all be created using A.I. video generators.

A.I. video makers can create personalized videos with helpful content. For instance, an A.I. video generator can create films from images of a property and create customized messaging for prospective buyers.

Conversion rates rise as a result, and customer experiences become more attractive.

Real Estate Marketers Should Use the Best A.I. Tools

Regarding A.I. marketing tools for real estate, there are several options. The most effective artificial intelligence real estate marketing techniques are:

Zillow 3D Home : Allows realtors to create virtual tours of properties using AI-generated 3D models. This tool allows you to create a 3D model of the property and make it available for the clients to walk through it virtually.

SmartDraw : Creates floor plans and diagrams of building layouts using A.I. Real estate agents and architects can use this intelligent floor plan software to create precise and comprehensive floor plans, elevations, and sections of a property.

RealtyMogul : Provides AI-powered real estate search and investment advice. It analyzes property data using machine learning algorithms and offers real estate agents and investors suggestions.

RealCrowd : A platform that analyzes and finds potential real estate investment possibilities using A.I. It analyzes property data using machine learning algorithms and offers suggestions to real estate agents and investors.

Matterport : A platform for building immersive 3D and virtual reality experiences of properties is called Matterport. Realtors can use it to generate interactive 3D models of homes that can be viewed on virtual tours.

Haus : A platform for real estate investing and search powered by A.I. It analyzes property data using machine learning algorithms and offers suggestions to real estate agents and investors.

Homie : A virtual real estate assistant driven by A.I. This technology helps purchasers by interacting with them, responding to their inquiries, and guiding them through the home-buying process using natural language processing and machine learning.

Roof A.I. : A software that uses artificial intelligence to estimate the cost of roofing projects. It analyzes property data using machine learning techniques to offer roofing job estimates.

RealAtom : A commercial real estate loan platform powered by A.I. It analyzes property data using machine learning algorithms and suggests commercial real estate lending options.

Some Advice for Including A.I. Tools in Your Real Estate Marketing Plans

When employing AI-based solutions for real estate marketing, remember a few things. Make sure your strategy for utilizing A.I. tools is well-defined first.

This will help you decide which A.I. tools suit your needs and how to use them effectively. Second, plan how A.I. tools will be included in your marketing strategies.

Utilizing A.I. tools as effectively as feasible will be made possible by this.

Finally, be sure to evaluate the performance of your A.I. tools. By doing so, you'll be able to identify areas for future development and ensure your A.I. tools generate the best results.

Make It Personal

Personalization is yet another fantastic application of A.I. in the real estate industry. Imagine being able to scaleably build meaningful relationships with each of your prospects and clients using only one straightforward video clip.

In the cutthroat real estate market, using AI-generated tailored videos is a terrific way for realtors to stand out. Realtors may quickly produce personalized films at scale for all their real estate prospects and clients.

Embracing AI

AI tools have the potential to change real estate marketing. By leveraging the potential of A.I. solutions, real estate marketers may save time and money while offering top-notch customer experiences.

As a bonus, check out this video on 10 A.I. Hacks Realtors NEED To Use in 2023:

How Economic Shifts Influence Real Estate Agent Earnings

Fri, 11 Aug 2023 16:21:35 GMT

(MoneyForAgents.com) – On June 22, 2023, Federal Reserve Chairman Jerome Powell revealed that another interest rate hike is likely to occur, continuing the trend that began in March 2022.

What started as a mere 0.25% surged between 5% and 5.25%. This monetary policy has sent ripples across investment terrains and inflation rates, not only within the confines of the US but also globally.

One sector susceptible to these fluctuations is real estate. The commission-based earnings of real estate agents are directly intertwined with these economic variables.

The Real Estate Market in the Face of Economic Tremors

Economic structures aren't isolated entities but a woven matrix of interdependent variables. And among professionals most susceptible to these shifts, real estate agents sit atop, primarily due to their income structure tethered to the economy's heartbeat.

Consumer Confidence Fueling Property Ventures

Taking a property plunge isn't merely a financial decision but an assertion of an individual's confidence in their fiscal future. The binding commitment of a mortgage requires unwavering belief in future economic stability.

This intrinsic link between consumer morale and property sales makes the US Consumer Confidence Index a significant barometer for real estate agents. High scores typically hint at robust property deals, but a drop is a cautionary signal for realtors.

The Double-Edged Sword of Commission

Earning through commission is a game of risks and rewards. Its allure lies in direct remuneration for effort, meaning more sales translate to higher earnings. However, this paradigm can flip when sales plummet.

The volatile nature of commission-based professions makes it crucial for real estate agents to strategize their financial safety nets accordingly.

The Surge of New Competitors

Economic downturns invariably trigger job losses. Consequently, many pivoted to the real estate domain, seeking lucrative commissions.

Such influx heightens competition, thinning the potential profit margin for seasoned real estate agents. The consequence? A diluted income stream due to heightened market competition.

The unpredictable dance of the economy invariably plays a pivotal role in shaping a real estate agent's financial narrative. Being forearmed with this knowledge can be the best foresight for professionals in this field.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

The Real Estate Agent's Guide to Financial Success

Fri, 11 Aug 2023 15:26:23 GMT

(MoneyForAgents.com) – The real estate profession is unique and vastly different from most job markets. Here, your earnings are entirely commission-based, with no fixed paycheck in sight.

Thus, the income stream can sometimes feel like a roller coaster, depending on various factors, many of which you have no control over.

As a result, real estate agents must arm themselves with effective financial strategies to navigate the industry's ebbs and flows.

Creating a Dedicated Business Account

Establishing a clear boundary between personal and business expenses is crucial. Merging these funds can lead to confusion, potentially jeopardizing your understanding of your real estate venture's financial health.

Head to your preferred bank and initiate a business account exclusively for real estate transactions. Such segregation offers clarity and brings professionalism to your financial management.

The Importance of Monitoring Your Expenses

Keeping an eye on every penny spent can pay dividends in your real estate journey. Here's why diligently tracking expenses is non-negotiable:

Goal Assessment: You gauge your performance by noting your expenses against your set benchmarks. Are your earnings overshadowing your expenditures, or is there a deficit? By getting a clear picture, you can recalibrate your methods promptly.

Generating Financial Statements: A comprehensive financial transaction log helps create a structured financial statement. This periodic review offers insights into your business's fiscal well-being and areas for improvement.

Taxation Made Easy: A well-documented expense record can be a lifesaver during tax season. Understanding your financial standing allows you to efficiently calculate your tax obligations without any last-minute rushes or hitches.

Prioritize Savings for Rainy Days

An extraordinary month of high sales might tempt you to indulge, but prudence lies in saving. With the unpredictable nature of the real estate market, preparing for less profitable months is essential.

Set aside a percentage of your earnings. This safety net not only covers potential tax costs but also helps sustain during downturns in the market. A sound savings plan ensures that while you rejoice in the good times, you're equally prepared for challenges.

In conclusion, financial acumen is as crucial as sales prowess in the real estate world. Adopting systematic financial practices ensures long-term success, stability, and peace of mind in a fluctuating market.

After all, being prepared is half the battle.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

4 Key Strategies to Salvage a Home Sale When Financing Falls Apart

Fri, 11 Aug 2023 15:06:40 GMT

(MoneyForAgents.com) – The recent credit strains have impacted not only potential homebuyers but sellers as well. The ripple effects are felt two-fold for sellers: their sale and subsequent purchase could be jeopardized.

This credit card strain can amplify stress and uncertainties.

But here's the silver lining: Even if your real estate transaction faces hurdles like financing glitches, low appraisals, or inspection setbacks, there are actionable strategies to revive the deal.

Before giving up hope, consider these approaches:

1. Mortgage Qualification Mishaps

A potential buyer failing to secure a mortgage due to their credit history can momentarily disrupt the selling process. However, this isn't a reflection of the property's value.

Tip: When re-listing, it's essential to present the property as a 'fresh listing.' Properties recently on the market are often more appealing to buyers as they come across as current and less problematic.

2. Appraisal Shortfalls

When a home's appraised value is lower than the proposed sale price, it poses a dilemma.

Tip: Sellers have a couple of routes to consider. They can adjust the sale price to match the appraisal or hope the buyer can cover the difference.

Sellers often lean towards a price reduction in competitive housing markets with minimal inventory.

3. Unexpected Home Inspection Findings

Discoveries like hidden mold during a home inspection can significantly hamper the sale.

Tip: Sellers essentially have two choices here:

Address the issue and make necessary repairs, or
Disclose the issue to prospective buyers. Reducing the asking price can be effective for homes with extensive repair needs, especially to attract those looking for renovation projects.

4. Property Liens Surfacing in Title Searches

The sale can't proceed with existing liens or title discrepancies.

Tip: The complication should resolve if your title insurance covers the identified lien.

If not, you must address the lien before finalizing the sale.

When A Home Sale Stumbles, What's Next?

While a derailed home sale can feel disheartening, remember that there are avenues to recovery.

Before re-listing:

Opt for a pre-listing home inspection to preempt any unforeseen issues.
Ensure title insurance is in place to counter potential hiccups.
Encourage buyers to provide mortgage pre-approval letters to confirm their robust financing.
Revisit and rejuvenate your marketing strategy. This could mean refreshing listing photos or emphasizing recent property upgrades.

Your home, your sanctuary, deserves to be showcased at its finest. Although challenges might emerge, they don't spell the end of your selling journey.

Remember that even small details, like using a pleasant home fragrance or taking care of pets during property showings, can make a huge impact.

Don't worry. You've got this!

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

How Tech Is Shaping Today's Real Estate Deals

Fri, 11 Aug 2023 13:57:46 GMT

(MoneyForAgents.com) – In today's world, it is common for individuals to possess a handheld device known as a smartphone, which essentially functions as a mini-computer.

This technological marvel has influenced almost every facet of our daily lives. It has catalyzed significant shifts in numerous industries, including real estate.

Let's delve into how technology is reshaping the landscape of property transactions.

Virtual Property Tours

Seeing is believing, especially when contemplating investing in a new home. Potential buyers find it challenging to physically visit a property in many situations because of distance or other constraints.

A few years back, this could have been a deal-breaker. However, with technological advancements, virtual tours have become a game-changer in real estate.

So, what's a virtual tour? At its core, it offers a digital walkthrough of a property. Platforms like QuickenLoans, for example, provide such immersive experiences.

This innovation allows potential buyers to get an intimate look at a property without being there, ensuring they have all the details before making a financial commitment.

Real Estate Mobile Apps

Casually browsing through property listings on lazy Sunday afternoons is a pastime for many. With the proliferation of mobile apps dedicated to real estate, this activity has become more convenient and enjoyable.

Users can set up an account, filter according to their preferences, and easily navigate the freshest listings.

Moreover, these apps often come with features that save search data. This means users don't have to redefine their preferences every time they log in, streamlining the property-hunting process.

Electronic Signatures

Any real estate transaction involves a cascade of paperwork that requires signatures. These documents are not just formalities but pivotal in navigating the legal intricacies of property transfer.

E-signature functionalities have transformed this once tedious step. Buyers can swiftly and securely sign electronically instead of manually signing multiple hardcopy documents.

This speeds up the process and ensures that all paperwork can be easily stored and retrieved online, eliminating the risk of misplacing critical documents.

Collective Investment Platforms

The digital age has ushered in innovative investment strategies. Websites dedicated to collective property investment are gaining traction. These platforms allow individual investors to pool their funds and jointly invest in real estate.

While one might not have ample funds to purchase an entire property alone, combining resources with other investors can make the acquisition feasible. This collaborative approach could also yield substantial returns.

In conclusion, the technological revolution has left no stone unturned in the real estate sector. Technology continuously introduces more efficient and innovative ways to conduct property transactions, from virtual tours to collective investments.

As we move forward, it's crucial to stay updated with these digital trends, as they will undoubtedly shape the future of real estate.

We work with the nation's leading agents and brokers who prefer our local reliable service and are here to provide you with the cash flow management tools you need for success.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

How to Cultivate Lasting Client Bonds in the Real Estate Sector

Tue, 08 Aug 2023 23:53:11 GMT

(MoneyForAgents.com) – In the dynamic world of real estate, the foundation of every successful agent or broker lies in the strength of their client relationships.

Given the significance of property transactions in an individual's life, the need for a reliable and trustworthy real estate professional becomes paramount.

However, cultivating these genuine bonds often meets hurdles such as evolving technology, changing industry norms, and communication gaps.

For those keen on establishing lasting relationships and ensuring repeat business, here are the proven strategies to consider:

Prioritize Clear and Consistent Communication

Amid the intricacies of property transactions, crystal-clear communication stands out as the anchor. It's vital to tune in actively to your clients, grasping their desires, apprehensions, and expectations.

Always inform them about transaction developments using emails, phone calls, or social media. Timely and informed responses reinforce trust and minimize misunderstandings.

Embrace Personalization and Empathy

Realize that every client has a unique narrative. Tailor your interactions, remembering details about their lives and preferences. Celebrate milestones like birthdays or anniversaries with them.

During tense moments, your empathetic approach and reassurance can be the balm that alleviates their concerns, pushing referrals and repeat business your way.

Deliver More Than Expected

With a saturated market, differentiation is paramount. Extend services beyond the standard transaction parameters. Share insights about local amenities and schools or link sellers to reputable home improvement professionals.

Tokens of appreciation, like personalized thank-you cards or housewarming gifts, solidify your position in their memory.

Uphold Integrity and Be Transparent

Trust in real estate is non-negotiable. Maintaining absolute honesty regarding market dynamics, property appraisals, and potential transactional challenges is imperative.

Avoid the pitfall of overpromising or sharing skewed information solely for deal closure. Such missteps can irreversibly damage trust.

Continue the Relationship Beyond the Sale

The culmination of a property deal should only mark the start of your association. Periodic check-ins, asking about their property experience, and offering relevant market updates keep you on their minds.

A consistently updated blog or newsletter also offers an excellent touchpoint, reminding them of your expertise and presence.

Conclusion

Real estate success is not a mere function of deal numbers. Instead, it's about crafting relationships that last and provide mutual value.

By embracing the above-mentioned strategies, you can put a strong foot forward in the real estate landscape.

Money For Agents lets you stop guessing when you get paid and take control of your cash flow. Create an account now and get your commission advance within 2 days or less (often the same day)!

Best Marketing Strategies For Real Estate Agents

Fri, 01 Oct 2021 21:39:44 GMT

Over the past few decades, the real estate industry has had many ups and downs. During the housing crisis in 2012, the National Association of Realtors had approximately 999,000 members. As of July 2021, their membership is approximately 1,534,008 members strong. Needless to say, competition is heating up for real estate agents. What are the best marketing strategies for real estate agents that will help them stand out from the crowd? Let’s explore that question.

Marketing skills, both online and offline, are going to be key in making yourself stand out from the rest of the realtors in your area. Many buyers today are doing more and more of their own research and legwork online before even reaching out to a realtor. That being said, if you are not actively engaging online and networking with potential buyers online, you are missing out on some potential sales.

We’ve put together a few of the best marketing strategies real estate agents can utilize to help set them apart from other agents in their market.

Get Social

Make sure that you set up social media accounts on all of the big platforms. Facebook, Pinterest, and Instagram are popular but don’t overlook TikTok and NextDoor either. TikTok is great if you have a fun and engaging personality to give quick virtual tours of the homes you are listing. NextDoor is a neighborhood app. It’s a great place to pick up potential clients, you can share your knowledge of the area as well.

Add Social Sharing To Listings

Make sure that you add social sharing buttons to all of your listings online. Potential buyers may want to share their top pics with friends and family, making it easier for them to do so.

Scout Competition

Keep an eye on your competitors. Check out their websites. See what they are doing on social media. Take notes! Find out what they are doing wrong and improve upon it. See what they are doing right and replicate it in a way that matches your personality and work ethic.

Make Yourself Easily Available

Make sure to put all of your contact information wherever your name is. On your website, on your social media channels, in print, everywhere.

Business Cards - Be Unique!

Create an incredible business card that can be passed out easily and everywhere. Make the card unique . Ensure it stands out from the rest of the realtors in your area.

Incorporate Local Images

You want to be the best realtor in the area. This means you have to KNOW the area in which you are selling homes. Try to incorporate as many high-quality photos of the areas around town. Add them to your social media posts. Show off the beauty of the area. You’re not just selling homes, you are selling the area as well.

Capture Leads With Irresistible Content

Create a spectacular content offer in order to collect as many leads as possible. Produce an ebook that will have home buyers freely giving you their email address and zip code. Think along the lines of Things New Homeowners Should Consider Before Purchasing or What Features Should I Look At When Deciding On A New Home.

Professional Photographers Are Important

With the majority of home buyers looking online before ever reaching out to a realtor, great photography is an important part of real estate marketing. Gorgeous photos will gain more views and more showings. Hire a professional that has experience in homes and architecture. Many professional photographers, experienced in this area, can make even a small home look open and inviting. This is one area where saving money shouldn’t even be considered.

Virtual Tours

Creating a virtual tour of the property helps buyers get a more comprehensive and accurate preview of the property they are considering. This could be the determining factor of them seeing the home in person or not. You could make one yourself, but again, like professional photographers, this is something that might require a professional to get the job done right.

Support The Community

Consider sponsoring a local sports team, school event, or local event. Becoming a sponsor typically means that your business and name will be put on much of the advertising, pamphlets, and uniforms.

Animated Video Commercial

Animated videos are a popular trend in advertising today. Outsource the project on a freelance site. Request they make a cute, short, high-quality cartoon video that will establish your brand and name. Be sure to add in your own personality and have it targeted to your area. You can use this video on your website and social media ads.

Get Pinning - On Pinterest

Start creating boards for each of your properties. It is a great way to share visuals and specific information on each of your listings. Be sure to use targeted local keywords to attract the clients looking for a home in your area.

Mobile Friendly Website

The majority of consumers are using their phones for their online activity. Because of this, it is imperative that your website is mobile friendly. Another idea would be to get an app made where your clients can view your most recent listings.

Client Newsletter

Do you know what you can do with those leads you captured when giving away that eBook you made earlier? Those are potential clients. Because they were interested in information about buying homes, you know they are interested in your services! Now, start creating a newsletter that will keep building your relationship with them. Let them know about new listings, open houses, and local market trends.

Google My Business Page

Do not overlook this part of the article. If you are not aware of Google My Business (GMB), start learning about it now. As we mentioned before, more and more consumers are on their phones searching for things. Many of the searches are “____ near me” If someone near you is looking for a realtor, they will probably search for “Realtor near me” The first thing they will see, more than likely, is a map and then listings of realtors near them. These are Google My Business listings. Did I mention they are free?

Create your GMB page and update it regularly. Google loves when their GMB listings are updated and gives them more authority in the listing order. Again, do not overlook this free marketing tip!

Niche Down

Many markets are overrun with realtors. Consider becoming a niche realtor. Specialize in becoming the go-to realtor for dog owners, or large families, or single professionals. Make a name for yourself in this niche. You’ll become memorable! Something that helps in saturated areas.

Give A Webinar

If you are comfortable in front of a camera, consider giving a webinar on a topic your clients could benefit from. Allow time at the end for questions and answers. When finished, you can reuse this content on YouTube or add it to your website.

Social Ads

Don’t be afraid of spending a little bit of money on social media ads. Organic reach is dwindling for many all across social media channels, including Facebook. Paid ads are very effective and a great way to get your content in front of a lot of potential clients.

Traditional Mailers

Although lots of people are online searching, it doesn’t hurt to send out tried and true marketing material like mailers. Target your audience in a specific zip code to create qualified leads.

Get Writing

Target your audience by becoming a columnist in a local magazine or newspaper. It is a great way for you to get your name out in the community while growing your “authority” as being one of the best realtors in the area.

Branding

Put your name on everything! Pens, koozies, totes, notepads, even coffee cups! Give these freebies out to potential customers, at festivals, community events, and at seminars.

Community Partners

One way to get your name out in the community is to partner with other businesses. Buy advertisement space on the local diner placemat. Donate coffee mugs with your business name to the local coffee shop. Create a welcome basket for your new home buyers using discount coupons to local businesses. Get creative with your partnerships!

Website, Navigation, and Content

Create a great site that is easy to navigate. Show the listings that you currently have, great pictures, and informative content. Take your readers on a tour of the area you cover. Let them get to know the different towns, attractions, and shopping areas. Don’t forget to share with them your favorite eats.

Zillow

We all know Zillow and so do your buyers! Make sure that you are on Zillow and you have an agent page. Zillow doesn’t just allow people to view homes, they also allow them to view realtors in the areas they are looking. Don’t miss out on this opportunity to get your name and business seen.

Ensure Word Of Mouth Referrals

Giving your clients a welcome home package after buying a new home is a great way to keep your name in the front of their minds. Check up on them over the years by sending Holiday cards, birthday cards, etc. Create an incentive for past clients to recommend you. Many of your referrals will come from word of mouth.

Real Estate Agent Marketing Strategies

There are so many marketing strategies that agents can utilize, take advantage of the things that you can do now. Hire professionals to do what you cannot. And always think outside of the box when it comes to marketing yourself and your business. Everyone needs a house. Figure out how you can stand out from the rest of the agents in your area and get started.

Can Realtors Negotiate Commission? What You Need To Know

Fri, 01 Oct 2021 20:52:12 GMT

Home sellers are often concerned with how much the commission is going to be for listing their home with a real estate agent. In fact, many even wonder can realtors negotiate commission? Technically, commissions can be negotiated but it requires knowledge of several factors. Included below are a few tips and things to consider when negotiating the realtor commission prior to listing your home on the market.

Keep in mind that negotiating the real estate agent commission can be tough. However, if you know what you are up against, it may help you save some money when it comes time to close on your home sale. Continue reading to learn more about the negotiation process and if it is right for you.

Should You Consider Entering A Commission Negotiation?

When it comes to selling your home, you want to make as much from the sale as possible. Negotiating the commission percentage down could help you furnish a room in your new home! Keep in mind that realtor fees are one of the biggest costs when it comes to selling your home. Even a small reduction in the commission can save you thousands of dollars.

The average commission for a real estate agent is between 5% and 6% on the sale of your home. Using 5% as an example, if your home sold for $350,000 the commission would be $17,500. If you were able to reduce your commission by 1%, you would save $3,500! That’s a pretty good savings!

Initiate Commission Negotiations

More than likely a potential agent will not begin negotiations on their commission. But that doesn’t mean they aren’t open to them! If you are in a market with not enough listings, agents want you to sign with them as a seller. They would rather take less commission than no commission at all by you choosing another agent. A recent Zillow study found that around 57% of the sellers who tried to negotiate commission fees were successful in reducing the commission they paid at closing.

Shop Around For Real Estate Agents

Finding a real estate agent is like any other major purchase you make. You do your research to find the best out there. Don’t feel rushed. If an agent pressures you to sign immediately and you are not 100% sure, move on. Never feel pressured. We recommend talking to at least three different agents, interviewing them, and discussing what they can offer you and their willingness to negotiate commission.

Challenges To The Negotiation Process

Realtor fees, in practice, are always negotiable. But, understand that not all agents will be able to lower their commission. Brokerages with many agents often require commissions to be shared with them. New agents in the brokerage will have less wiggle room when it comes to negotiations. Keep in mind, these agents have their own bottom line when it comes to closing. They need to make money on the work that they do when it comes time to close.

Although this may be a challenge, you won’t know where you stand with the ability to negotiate the commission unless you ask. The worst they can say is no. Do keep in mind that the negotiated commission has to be beneficial to them as well. Research, marketing, and negotiating the sale takes time and money on their part as well. Read on to learn a little bit more about how real estate commissions work so that you have a better understanding of the entire process. Information that will be handy to know when negotiating.

How Do Real Estate Commissions Work?

In a typical real estate transaction, there will be two realtors involved, the buyer’s and seller’s agents. These two realtors split the real estate commission in half. The commissions are typically paid from the seller’s proceeds at closing.

Negotiated Fees Are Typically Taken From The Listing Agent, Not Buyer Agent

The listing agent is knowingly taking a cut on their commission and accepts the negotiated price. However, if a buyer’s agent sees that they will have to take a cut if their client loves your house, they aren’t really incentivized to show it.

A smart listing agent would always offer a full buyer’s agent commission in order to get your listing in front of as many potential buyers as possible. It increases the chances of selling faster and receiving the best possible price.

How Much Do Realtors Make On A Sale?

Although the seller might see a commission fee of 6%, this is not what real estate agents typically make. Let’s take a $400,000 home sale with 6% commission as an example. Each realtor will receive $12,000. However, keep in mind that each realtor needs to split their commission with their broker. Newer agents typically have to give their brokerage 50% of their commission, so that leaves the realtor with $6,000 from the sale of a $400,000 home.

Agent Expenses

Agents have a lot of overhead when it comes to listing houses for sale. They not only have to pay taxes and overhead for their business, they typically pay out of pocket for advertising costs, marketing, 3D home tours, as well as professional photography and staging. The actual amount of money agents will make from the above example will be closer to $3,000.

Factors For Leveraging Negotiations

There are many factors that can play a role in your ability to successfully negotiate commission rates on the sale of your home.

Home Price

If you happen to be selling a luxury home, it is easier to negotiate the lower commission rate. The reasoning behind this is that a smaller percentage of a million-dollar home is typically higher than the full commission on a $250,000 home. The same process, time, and effort are used to sell both.

Buyer Demand

A hot market means a better chance to lower negotiations. If the buyer's market in your area is moving fast and homes are selling within one or two days, agents are more open to negotiating a lower price because they will not need to put much effort into the selling process.

Highly Desirable Home

If you own a highly desirable home in an area that people want to move to, you may have better luck negotiating the real estate agent fees. The agent may be more willing because it will be an easy sale. However, if your home is not very desirable or in a bad area of town it will be considered a higher risk property and you will find it difficult to negotiate the commission percentage.

Season Matters

If you are putting your home on the market during the off-season or there is very low inventory in the area, you have a better chance of negotiating the commission fees than at other times. This is because they are looking to secure new listings and increase their new business.

Agent Experience

The experienced agent knows their worth and they are typically in high demand. This tends to make them less likely to negotiate their commission fees. Although, the more experienced agents do have the flexibility to negotiate.

Newer agents, however, typically do not have the flexibility to negotiate their commission fees due to their broker. However, newer agents, if allowed to, are eager to negotiate their fees in order to increase their sales and reputation.

How To Negotiate A Realtor Commission

When beginning the negotiation process, always be respectful and considerate of the realtor. Keep in mind that this realtor may be helping you sell one of your largest investments, you don’t want to get started on the wrong foot.

What Leverage Do You Have?

In the previous section, we spoke about the different factors that can help you leverage negotiations. Pay special attention to the demand in your area, your price point, and how much your agent stands to earn based on the possible price of your home.

Average Commission Rate For Your Area

Although the national average commission rate is between 5% and 6%, find out the exact average for your particular area. This will give you a baseline for negotiating.

Shop Around

There are many real estate agents, brokerages, and others to choose from. Each one is different. Do your research on them. You’ll find some will not even consider negotiating while others are completely open to negotiating and being creative with their fees. There are even others that have built-in savings where no negotiation is required. However, with these there may be tradeoffs on the service and quality they deliver.

It is important to talk to at least three different agents to get a feel for them. Understand where they are on their price point, customer service, and their ability to meet your specific needs.

Offer To Invest To Help Your Sale

When negotiating, offer to do some pre-listing repairs and improvements that will help sell the home faster. This will help the realtor save time and advertising by helping to make the home sell faster. By doing this, they may be more willing to lower their commission fee.

Create Value For The House

Realtors spend a lot of time and effort to sell a home. They also cover a lot of upfront costs when it comes to marketing and professional photography. Consider what you can do to help alleviate their burden and reduce their costs. Depending on the market, 3D home tours and open houses could be a waste of money. If you or someone you know is a photographer, offer to take that part off of their hands. Doing this may also help your negotiation process.

Offer Full Buyer’s Agent Fee

Your selling agent will not want you to reduce the buyer’s agent fee. This will make buyer agents skip over your home when looking for homes for their clients. By doing this you will miss out on a lot of potential buyers thus taking longer to sell your home. This makes the selling agent work longer and put in more hours. The quicker the sale, the best for everyone involved.

Work With Newer Agent

Although a newer agent does not have the experience, reputation, and professional network a top-producer typically has, a newer agent is hungry. They are more willing to take a lower commission in order to boost their sales numbers, reputation, positive reviews, and referrals.

Many new agents are eager to prove themselves to not only you but to their brokerage, coworkers, and themselves. If you’re willing to work with a new agent, consider doing it to save money and help boost someone’s career.

Sell And Buy With Same Agent

If you are selling your home to either downsize into a smaller home or expand into a larger one, consider using the same agent for buying and selling. This way, the agent will end up getting two paychecks from you as you will now be a returning customer. If you offer to use them for both, they may be more amenable to lowering their seller’s commission.

Consider Dual Agency

If you allow your listing agent to represent both you and the buyer, they will end up collecting both the seller and buyer fees. This might also make them willing to lower the overall commission on the sale of your home.

A dual agency typically happens when either you find your own buyer or a home buyer without an agent contacts the listing company about the home. Keep in mind that dual agency does create risks and a conflict of interest for both parties. Dual agency is illegal in eight states in the U.S., so make sure you do your research.

Be Prepared To Walk Away

The ultimate goal in negotiations is to reach an agreement that is mutually beneficial to both parties involved. However, knowing your limits is important. If the agent cannot meet your needs in the negotiation, it’s time to walk away. Never bluff or you may be called on it. If the other party calls your bluff they will know they can push you harder. Leave if it is not beneficial to you.

Other Ways To Save On Realtor Commissions

You may be in a situation where you just aren’t able to negotiate a lower rate of commission with any of the agents you’ve talked to. This could be the result of the market or many other things. However, there are a few alternatives to consider.

Agent-Matching Services

There are websites out there that match you to an agent with already negotiated lower rates. The best agent-matching services are completely free to use and they only work with full-service, top-rate, real estate agents. Keep in mind not all of the agent-matching services negotiate commissions on your behalf.

Some of the services have agents who have agreed to offer their commission fees for only a fraction of the typical fees. For example, in one market, agents are charging a flat $3,000 listing fee for homes priced under $350,000 and 1% for homes over $350,000.

Agent-matching services can do this by giving the agents a steady flow of new business at zero cost to the agents. This allows the agents to charge less on their commission and still maintain a good net profit.

Discount Real Estate Broker

A discount real estate broker offers an in-house team of agents giving sellers many of the same services regular agents do - but at significantly less cost. Because these agents are handling a higher volume of clients at discounted rates, there will be additional risks and quality of service tradeoffs. Each discount brokerage is different and each may have different risks associated with them. Some may be more effective than others so do your research before committing with them.

For Sale By Owner (FSBO)

Listing your home for sale yourself, also known as FSBO, means that you handle the entire sale process yourself. The upside to this is that you save big when it comes to seller’s agent commissions. The downside, however, is that you are handling everything yourself.

The complexities that are involved in the sale of a home are immense. If you happen to have real estate experience, go for it! If not, keep in mind there is a lot of time you’ll have to dedicate to the marketing of the home as well as learning everything that you need to know in order to sell your home.

Consider a Flat-Fee MLS Company

A flat-fee MLS company is a great choice for FSBO sellers. These companies will list your home on the local MLS. The local MLS is where buying agents go to find homes for their clients. This will get your home in front of potential buyers quickly and easily for a flat, upfront fee to the company. However, getting your home listed on the MLS is the only thing you will be able to get from them.

Sell To A Cash For Houses Company

If you are in a hurry to sell your home or do not have the money or the desire to get the home in shape for selling, consider selling it to a cash for houses company or home flippers. They will purchase your home with cash in a short amount of time. The downfall to this is that these flippers and companies are looking to make a profit so expect to lose an average of 45% of the home’s market value on this sale.

Sell To iBuyer

There are iBuyer companies that utilize technology to make offers on homes sight unseen. The offers tend to be fast and all cash offers. They typically have very strict criteria for the kinds of homes they purchase. If your home qualifies, you could have an offer within a day and closing within 7 to 90 days.

iBuyers do charge a rather large service fee that can range anywhere between 5-15% for the convenience of the quick purchase. You will typically only get the fair market value of the home by selling this way.

Negotiating Commission With A Realtor

This guide has given you the tips, tricks and alternatives to negotiating the commission with your realtor. It is always a good idea to approach negotiations with a respectful attitude and understanding that the realtor will have a bottom line that cannot be crossed. Figure out what your bottom line is before approaching the subject as well. Never be afraid to ask, the worst they can say is no. Armed with this information, we hope that you will become part of the 57% of successful home sellers who were able to negotiate the seller’s agent fees.

What Is A Common Realtor Commission?

Fri, 01 Oct 2021 20:18:40 GMT

You can buy a home or sell your home yourself, but there are major advantages to utilizing a professional real estate agent. When you sign with an agent you are getting their experience in the market and their marketing capabilities. There is, of course, a cost for their experience and expertise. Who foots the bill? What is a common realtor commission? Can the commission be negotiated? All are important questions and in this article we will try to answer them for you .

How Realtors Are Paid?

Real estate agents are paid on the day of closing. Typically the commissions are shared between the listing agent and the buyer’s agent. If the agent is both the listing agent and the buying agent, that agent is considered a dual agency.

What Is The Average Commission A Real Estate Agent Gets Paid?

In the United States, the average real estate commission is between 5% and 6% of the sale price of a home. For example, if a home sells for $350,000, the commission on that home will be between $17,500 to $21,000. Keep in mind that this is an average real estate commission. The percentage can fluctuate depending on the state and the market you are buying or selling in. The fewer listings on the market in the area may result in less of a commission percentage because the agents would rather have the listing than compete with others in a tight market.

Although, you can choose to pay a realtor for only services provided if your budget is restricted. However, you’ll be paying by the hour and will not be able to take advantage of all the things they have to offer their clients. It is important to note that each state has specific laws on the minimum a broker can offer to their clients so be sure to check with your local government for specific details if you plan on paying a realtor “a la carte” for their services.

Who Pays For The Real Estate Agent Commissions?

Normally, it is the seller who pays the entire 5%-6% real estate agent commission. Thus, resulting in a 2.5%-3% for each agent in the buying process. The commission itself comes out of the home sale proceeds. However, each deal may be different. Some buyers offer to pay for part of or all of the commission to make their deal look more enticing. Typically, if this is done, the offer price is adjusted as well, so the buyer still ends up sharing in the cost. If the seller does pay the entire commission, the buyers aren’t free and clear of paying anything extra at closing. Closing costs in a home purchase are usually taken on by the buyer.

Can Real Estate Commissions Be Negotiated?

Luckily, real estate commissions can be negotiated. Being a real estate agent is a competitive career. If knocking a little off their commission percentage will get you to sign with them as a seller, many will make that decision. A lower percentage is better than no percentage at all.

You may even find an agent willing to charge you a flat fee for their services if it is allowed in your area. Be it a flat fee or a lower percentage, be sure you are getting what you need from their services before signing with them. If you need marketing assistance be sure that percentage reduction does not reduce the amount of marketing you receive.

According to the National Association of REALTORS® , homes listed with a licensed full-time real estate agent sell for nearly 26% more than FSBO (For Sale By Owner) listings—even after factoring in the agent’s commission. Keep this in mind as you do your research and be sure to ask questions so that you get what you need.

Understanding Average Real Estate Commissions

You should now understand what the average real estate agent commission is, where it comes from, when it is paid and who pays for it. When putting your home on the market consider your needs when it comes to a broker. If you have resources to help you market your home and your local law allows, see if you can find an agent that will only list the home on the MLS. If you are unsure about marketing, paying the commission is probably the best bet. Keep in mind that commissions can be negotiated.

Make the most of the season by following these simple guidelines

jesse@ushinetechnologies.com (Jesse Clark) — Fri, 01 Oct 2021 18:57:46 GMT

The new season is a great reason to make and keep resolutions. Whether it’s eating right or cleaning out the garage, here are some tips for making and keeping resolutions.

Make a list

Lists are great ways to stay on track. Write down some big things you want to accomplish and some smaller things, too.

Check the list regularly

Don’t forget to check in and see how you’re doing. Just because you don’t achieve the big goals right away doesn’t mean you’re not making progress.

Reward yourself

When you succeed in achieving a goal, be it a big one or a small one, make sure to pat yourself on the back.

Think positively

Positive thinking is a major factor in success. So instead of mulling over things that didn’t go quite right, remind yourself of things that did.

Keep in touch with site visitors and boost loyalty

jesse@ushinetechnologies.com (Jesse Clark) — Fri, 01 Oct 2021 18:57:46 GMT

There are so many good reasons to communicate with site visitors. Tell them about sales and new products or update them with tips and information.

Here are some reasons to make blogging part of your regular routine.

Blogging is an easy way to engage with site visitors

Writing a blog post is easy once you get the hang of it. Posts don’t need to be long or complicated. Just write about what you know, and do your best to write well.

Show customers your personality

When you write a blog post, you can really let your personality shine through. This can be a great tool for showing your distinct personality.

Blogging is a terrific form of communication

Blogs are a great communication tool. They tend to be longer than social media posts, which gives you plenty of space for sharing insights, handy tips and more.

It’s a great way to support and boost SEO

Search engines like sites that regularly post fresh content, and a blog is a great way of doing this. With relevant metadata for every post so search engines can find your content.

Drive traffic to your site

Every time you add a new post, people who have subscribed to it will have a reason to come back to your site. If the post is a good read, they’ll share it with others, bringing even more traffic!

Blogging is free

Maintaining a blog on your site is absolutely free. You can hire bloggers if you like or assign regularly blogging tasks to everyone in your company.

A natural way to build your brand

A blog is a wonderful way to build your brand’s distinct voice. Write about issues that are related to your industry and your customers.

Tips for writing great posts that increase your site traffic

jesse@ushinetechnologies.com (Jesse Clark) — Fri, 01 Oct 2021 18:57:45 GMT

Write about something you know. If you don’t know much about a specific topic that will interest your readers, invite an expert to write about it.

Speak to your audience

You know your audience better than anyone else, so keep them in mind as you write your blog posts. Write about things they care about. If you have a company Facebook page, look here to find topics to write about

Take a few moments to plan your post

Once you have a great idea for a post, write the first draft. Some people like to start with the title and then work on the paragraphs. Other people like to start with subtitles and go from there. Choose the method that works for you.

Don’t forget to add images

Be sure to include a few high-quality images in your blog. Images break up the text and make it more readable. They can also convey emotions or ideas that are hard to put into words.

Edit carefully before posting

Once you’re happy with the text, put it aside for a day or two, and then re-read it. You’ll probably find a few things you want to add, and a couple more that you want to remove. Have a friend or colleague look it over to make sure there are no mistakes. When your post is error-free, set it up in your blog and publish.