2023 is Here! Stan and Key chat about their Optimism about the Real Estate Market
|Posted by Key Yessaad @zenkey on January 14, 2023 at 6:20 AM|
Stan and Key chat about the 2023 Real Estate Market and why they are optimistic on the upside. Few of our Brokers and Licensed Associates are prepared for more listings in 2023; Higher Normal Valuations; and a Pent-Up Demand of Buyers that have been waiting for the Interest Rates to stabilize. Those conditions are in place and it is the job of our Real Estate Professionals to gain Market Share early on. #StanCoaching #KeyWorkshops #10WeekPrograms
☐ Video URL: https://www.youtube.com/watch?v=CTao22dtw5c&list=PLtv7VYzrJwQJBXHr2gne-EXpHnu3hUniF
☐ Here are some Key ideas to keep in mind as you approach the 2023 Market:
☐ The slowdown that took place starting Mid-July of 2022 was about 20% of the Overall Normal Market. It affected primarily properties that were not priced properly but stubbornly remained listed too high. The Days of slapping a random price on a properly and fielding 40 offers are gone.
☐ Good Real Estate Professionals who understand Pricing and how to talk about Price Reduction strategically continued to do well. The Fundamentals of Real Estate in 2023 are back in fashion - and this is good for the health of the overall Market.
☐ 2023 will see a return to a normal Inventory; which about 5.3 to 5.5 Million Listings. To Give you a comparison, in 2021 we shot up to 6.1 Million Sold Listings. The numbers for 2022 are not out yet but my tracking says we did between 4.9 and 5.3 Million Listings.
☐ There is a number I want you to remember: About 5% of Homeowners Sell their homes every year; and they do because Life Happens. Some of Life is Good: Marriage, Promotions, Children, Doing well in Life. And some of Life is Challenging: Divorce; Major Illness; Losing a Job; Death, etc. Life Happens then Real Estate Happens, every single year. The national turnover has been around 5% for the past 50 years.
☐ Home values overall will not decline; they will resume normal growth, which is traditionally 2.5% to 5% Year of Year. in 2020 we saw an 15% increase and then in 2021 close to a national 20% increase. Absolutely not a sustainable Home Value Growth.
☐ Interest Rates have found their playground and it is around the 6% rate. More accurately Mortgage Interest Rates have found a narrow band to bounce in, between 5% and 7%. The Days 3% to 4% are gone.
☐ Rental prices are at an all-time high, and the equation between a 30-Year Fixed Mortgage Rate and Renting, still favors Buying. Leases and Rents have been growing nationally at 18% a year.
☐ Expect a Spring Market with a Pent-Up Demand of Buyers; and therefore January, February and March are the most important Months of Prospecting for Listings.
☐ The Go-Getters, Phone Canvassers, Door Knockers are going to have a great year. If the area of pricing homes is weak for you, speak with your broker and let them help you learn to Price properties properly. Each one of you is capable of Getting 10 Listings in 2023. In fact, some of you can double that. Listings create Careers, and you get them by learning to Ask for Business Consistently.
☐ Here are some thoughts from Stan Bishop, a Broker Coach:
☐ Track ROI and adjust accordingly -- Know your numbers are not enough. With knowledge, make wise financial decisions. Stop spending money where there's no return. Move your marketing dollars to proven successful lead generation campaigns. Cut expenses that do not produce a return.
☐ Seek out new business development opportunities -- Keep an eye out for ways to drive more business to your brokerage. Focus on the local community to stay top of mind for marketing branding purposes. Leverage your branding so that you produce more opportunities for your agents and attract productive agents to your brokerage.
☐ Build deeper vendor relationships -- Find mortgage, title, insurance, inspectors, builders, financial services, legal, and others who want to build mutually beneficial relationships. Remember to ask these partners to become vested in your brokerage by offsetting marketing expenses, referring business, and introducing you to agents to hire.
☐ Train agents on scripts and overcoming objections -- Go back to basics. Make sure agents know what to say and how to say it. Institute training like call night and caravan that allow agents to practice prospecting and receive feedback on how to convert more contacts into leads and transactions.
☐ Retool your value proposition -- Revisit your value proposition pitch to agents and customers. Make sure what you are saying is relevant to their needs and wants. Update your marketing collateral to stay relevant during market shifts.
#10WeekPrograms - Stan Bishop and Key Yessaad offer 2 Variations of the Real Estate Training/Coaching #10WeekPrograms. Each program last about 3 Months and Stan and Key alternate one Week Coaching Brokers and the other Training Agents. The Sessions are Live and held via Videoconferencing in the Offices of the Brokers.
#KeyWorskshops - All-Day Live In-Person Strategy Real Estate Workshops - Key Yessaad offers several In-Person, All-Day, Real Estate Strategy Workshops in locations chosen by Broker/Owners, Regional Owners, or EXIT Corp. Typically we start at 9am and we end at 4pm with an additional hour of Agents interactions, Questions, and Collaboration.
☐ How to reach us: Stan Bishop at (904) 237-2933 or Key Yessaad at (910) 538-6610.
Categories: Real Estate Business, Key Workshops Training, Real Estate Prospecting