Tag: Marketing plan

Mortgage Rates and the Market

Anne Hartnett Leave a comment

Mortgage rates are a factor for both buyers and sellers, which means agents need to be aware of what they’re doing on any given week. However, focusing too much on what economists or the news media say can throw you off track.

This blog explains the impact that lower mortgage rates have in fueling housing market optimism.

Solid Ground

One of the factors of there being such optimism for the 2019 year in regard to the market is the fact that mortgage rates are at their lowest levels in 10 months. This comes even as many economists and mortgage lenders were warning of higher interest rates in 2019.

Spring Buying Gets a Push

With the recent downtrend in rates and extra inventory opening up, the spring homebuying market will have an extra push. Freddie Mac Chief Economist Sam Khater stated that “the U.S. economy remains on solid ground, inflation is contained and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down.”

Mortgage Rates Are Stable

Mortgage rates stood at an average APR of 4.41 percent on the standard 30-year fixed-rate loan, just 0.09 above last years’ levels, according to a February report by Freddie Mac.

Consumer Bargaining Power is High

Khater goes on to mention that today’s buyers have a larger selection of homes on the market as well as more consumer bargaining power than they’ve had in the last few years. Couple that with these low mortgage rates and there could be an early rally for the spring housing market.

Economists Eye the Fed

A key component in the market is what actions the Federal Reserve will make. In late 2018 there were signs that the Fed was going to continue raising rates, and some economists estimated at least three rate increases for 2019.

However, economic data gave Fed chair Jerome Powell cause to rethink that idea. Now a recent survey of economists done by the Wall Street Journal shows that most don’t expect a rate hike before June.

Furthermore, most economist agree that there will likely only one more rate hike, probably in late 2019. This will effectively keep borrowing costs much lower than previously anticipated through 2019 and 2020.

Borrowing costs hinge on forward-looking indicators such as Fed meeting minutes and the consensus of economists, so reduced expectations on rate hikes for 2019 may keep mortgages more affordable for the first half of the year. However, there is a good deal of uncertainty baked into every economic forecast, so even expert consensus may not be a reality.

Keeping Focus

Given the uncertainty, it’s key to be a levelheaded. It’s never a good idea to rely 100 percent on what an economist says MAY happen in the future is a good move. Being informed but also taking the information given with a grain of salt will put you more at ease and allow you to properly respond to the housing market.

 The real estate market has many indicators to look at and factors that play a role. Being in the know and taking note of the trends is key in planning the road ahead. For more valuable tips and tactics on mortgage rates check out our AgentEDU course dedicated to Mortgage rates. You can start with a seven-day free trial and gain access to the “Real Estate Mortgage Basics” course.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.

How to Deliver Better Service to Sellers with Children

Anne Hartnett Leave a comment

Being a listing agent requires cooperation and communication, especially when sellers have children. Adding children into the mix can lead to different wants and needs from the seller, which can make your job more difficult.

From wanting a faster sell time to needing help fixing up their current home, sellers with children often demand more from their agents. You as their agent need to be prepared to serve them with a more focused approach.

This post touches on the expectations that sellers with children have for their agents and offers tips on working with them in an efficient way.

Seller-Specific Wants

One of the top things on the must-have list for sellers is that their agents sell their home in a specific timeframe. A report from the National Association of Realtors found that 22 percent of sellers with children wanted to sell their home within a specific timeframe and 26 percent of those sellers said that their need to sell was “very urgent.”

Another top want from sellers with children is for agents to be able to help them get their homes ready for market. 19 Nineteen percent of sellers with children said they wanted their agents to help them find ways to fix up their homes in order to sell them for more.

Agents should plan on having a contact list of renovators, interior designers, contractors, plumbers, electricians and other personnel who can help fix up a home. Moreover, having a strategy for making a listing visible is key, such as social media promotions and quality photographs of the property to catch buyer’s attention.

Nearly 25 percent of sellers with children were selling because their current homes were too small, meaning they were looking to expand and upgrade. Another 18 percent of these sellers with children cited the top reason for listing their homes was a job relocation.

Sellers Without Children

No two sellers are alike. This statement is even more true when you factor children into a sale. Sellers with and without children have different expectations of their agents. Studies found that while nearly 20 percent of sellers with children wanted help of agents to fix up their current houses, only 12 percent of sellers without children felt this way.

Only 13 percent of sellers without children were selling their home because they thought their home was too small, compared to nearly a fourth of those with kids.

Plan Ahead

It seems that having children causes sellers have more specific wants and needs from their agents. Although there are differences when it comes to sellers with and without children, what is not different is the desire to sell the home.

You must come to the first meeting with your seller ready to communicate about what is expected from you as well as how you are able to better serve them. If you’re prepared and willing to fulfill their expectations you’ll find the selling process is much smoother.

For more tips on effectively serving your sellers and ways to make the selling process less of a hassle, head on over to our AgentEDU video learning platform. You can start with a seven-day free trial and gain access to the “Representing Sellers” course.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.