Here's this week's roundup of news and resources.
Learn how rates gave homebuyers a November win.
Find out ways to harness time now to ensure success.
Get clever negotiation tips from top real estate pros.
Understand the seven-year housing and economic cycle.
Know how to avoid Fair Housing Act violations.
Read on for our coverage.
Lenders Increase Credit Access
November was a positive month for the housing market, with access to mortgage credit rising by 1.4%.
Based on the Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index, this is the first time the index has grown in nine months. Some consider this an indication that lenders are feeling more confident. Most of the growth has come from an increase in the number of adjustable-rate mortgages (ARMs) being offered. Specifically, lenders have introduced more Jumbo ARMs to capture more of the market. ARMs' starter rates are generally more competitive than conforming loans. 1
Tips For Profitable New Year Goals
2023 will be here soon, so take some time now to reflect on this year's business. Then, you'll be ready to develop related plans and strategic goals that will contribute to your continued success in 2023. Here are five tips and strategies:
1. Analyze your business.
Review 2022's biggest lead sources, how much you spent on marketing, and what went right or wrong. These insights will help you improve your 2023 strategies.
2. Develop a business plan.
Complete a new business plan for 2023 to track how many contacts, listings, and sales may be required to meet your financial goals. This will help you stay motivated to reach them.
3. Create a schedule to meet your goals.
Set time limits for specific activities and stick to them. Be diligent and disciplined to get the most out of each day.
4. Outline a marketing plan.
Focus on key sources that have been successful for you like social media, farming, and old listings. Develop strategies and tactics to harness every source's potential.
5. Write growth plans.
Set professional goals like taking classes and attending conferences, in addition to developing personal growth plans such as spending more time with family, pursuing hobbies, or saving money. 2
Negotiation Tactics from Top Producers
Real estate negotiation is a complex and ever-changing skill. To help you become a better negotiator and get the best results for your clients, here are three shrewd tactics from top real estate pros:
1. Ryan Serhant, broker, CEO, and founder of SERHANT.
Serhant emphasizes you should use the three Ps of negotiation: push, pull, and persist. Push by offering relevant information and being a good listener, persist in pursuing the deal, and pull by taking the deal away to create urgency and get the best deal for clients.
2. Sarah Richardson, founder and CEO of Tru Realty.
Richardson suggests negotiating aspects of the deal over the phone with the cooperating broker before you commit anything to paper. She believes a counteroffer could become too complicated if there is a lot of unnecessary discussion of minor details.
3. Michael Nourmand, president of Nourmand & Associates.
Nourmand recommends that, if a property has multiple offers, you include an escalation clause in your buyer client's counteroffer. This clause states that the buyer will pay a specified amount more than the highest written offer, up to a maximum amount. 3
The Seven-Year Housing Cycle and How to Beat It
Students of financial history have noticed that economic boom and bust cycles have been happening every seven years for decades.
While some have been influenced by unforeseen events, many of these cycles happened because the Federal Reserve, Treasury Department, and consumers followed the same strategies implemented for previous cycles.
From the 1980 record high-interest rates to the 2008 stock market crash, to the 2022 scenario of turbo-charged rate hikes, it's all become predictable. However, savvy agents can find opportunities in a "down" market. For example, if you're unfamiliar with short sales, learn how they work and when they may become an option. Ultimately, the experts say it's important to stay focused on your goals to avoid the historic traps. And remember to take advantage of opportunities that can be found in bear markets like real estate investments.
Whether the economy becomes stronger or weaker, there will be opportunities for real estate agents. For investors and first-time buyers, you might find a motivated seller who will sell their home at a discounted price. If you think a down market is ahead, prepare for it by learning more about short sales, forbearances, and loan modifications. This will enable you to assist homeowners faced with foreclosure by educating them about their alternatives. 4
How To Avoid Fair Housing Lawsuits
The Fair Housing Act was established more than 50 years ago to promote equality in the nation's housing market. The Act makes it illegal to discriminate against a buyer or seller based on race, color, religion, national origin, sex, disability, or familial status.
Complaints and lawsuits that allege discriminatory practices are common, and agents who violate Fair Housing laws may end up with a significant fine, damages, and losing their license.
Violations include discouraging someone from buying or renting a property, advertising a home in a way that discourages people of a protected class from purchase, and steering homebuyers to certain neighborhoods based on their protected class.
Sometimes, agents make honest mistakes in their marketing strategies that violate the Fair Housing Act. For example, agents may assume that it's fine to specifically target prospects that share their own ethnic origins, race or religion – but it's not.
The best ways to avoid violating the Fair Housing Act are to remain objective and inclusive, educate yourself, and stay up to date with federal and state guidelines. 5
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
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Sources: 1mymortgagemindset.com; 2nar.realtor; 3theclose.com; 4reiwealthmag.com; 5rismedia.com
