I hope you enjoyed yesterday's podcast, in which I spoke with Ivy Zelman.
Ivy's experience and observations are extremely priceless, so if you missed it, I strongly advise you to go back and watch it again. Listen to it a number of times until her expertise sinks in so you can pass it on to your clients.
One of the points she made was so important that I'm "piggybacking" on it with today's blog.
In the past, I've stressed the need of being your market's "information broker." It may be argued that now is one of the most critical periods in our industry's history to embrace that position.
Consumers are filled with apprehension and confusion... at a time when the market is ripe with opportunity!
And now I'd want to talk about one of those opportunities in particular.
Are You Communicating The Importance Of The Situation To Potential Clients?
Ivy and I discussed a variety of market figures and trends, but what struck me the most was how critical it is for you to be reaching out to possible "move up" buyers right now.
You can listen to the podcast for all the details, but here's a quick rundown of what's going on...
Mortgage rates are at historic lows, causing a surge in both to refinance and buy transactions.
Housing inventory in the United States is at an all-time low.
Home prices will continue to climb due to the high demand for housing.
Mortgage rates will rise once more when the economy begins to recover from COVID in areas other than housing. A three percent increase in a homeowner's monthly payment is equivalent to a quarter-point increase in mortgage rates.
Are you still with me? So, you've made it this far?
So you've got all these people refinancing and buying homes at historically low mortgage rates, which means... what?
As Ivy pointed out, they will be much less likely to want to move in the future if they have such appealing fixed rates locked in. She predicts an "immobile market" on the horizon.
That means now is the best time for move-up purchasers to sell and get into that bigger, nicer home... while rates are still cheap.
As Ivy put it... There's no reason for them to wait for whatever it is they're waiting for.
What Are Your Plans For This Information?
Ivy is aware of this. And I am well aware of this. If you didn't already know, you do now.
The issue is that many consumers are still unaware that their finest opportunity to advance is right now. Alternatively, they may be paralyzed by media reports fanning concerns of a new home bust.
So here's my question: What are you going to do about it?
I'm holding my breath...
Do you want my opinion? You should be talking to everyone in your database and sphere who could potentially be a "move up" buyer.
This isn't even a pitch. All you have to do now is convince them to sit down with you for a few minutes so you can show them what's going on and introduce them to what may be a once-in-a-lifetime chance.
And if you're the hero who gets them into their dream home at an incredible mortgage rate, they'll tell everyone they know about you.
So, what do you have to lose?
Embrace Your Educator Within
Ivy stated something more that I wanted to bring up as a sidebar.
Imagine walking into her home to put it on the market. Do you think you'd be careful what you say and how you educate that customer? Without a doubt.
Obviously, not every customer has Ivy's knowledge to catch you if you're not completely accurate... BUT YOU SHOULD ACT IN THE SAME MANNER THAT THEY DO.
You'll need to know everything there is to know about this so you can talk confidently and add value where other agents can't.
Especially at this time.
If you haven't already, listen to the podcast where Ivy explains why the chances of another foreclosure catastrophe are "about 0 percent."
Her ideas on the impact of "work from home" on consumer preferences and migratory trends.
What will happen to the 3.4 million persons who are currently on forbearance?
The amount of months' supply isn't the best approach to measure inventory.
And there's so much more!
Take Out Your Phone. Mailers Should Be Sent. Whatever It Is That You Must Do It.
To tie this up, let's return to the primary topic.
If you've ever grumbled in 2020 about a lack of goods, people being scared to move, or everyone waiting until 2021...
Do not waste any more time!
Become the "information broker" that your customers require!
Make contact. Pick up the phone and call. Send a direct mail piece. Make a social media post about it. Whatever you need to do to communicate the urgency here, email, text, or send DMs.
Show them what's going on and how this window can't and won't stay open indefinitely.
It's an ideal time to sell a listing and assist folks in purchasing a larger house, all while fulfilling their ambitions.
So go for it!