Mortgage Update - August 12th, 2024
Good morning, team! Whether you like it or not, the way real estate is done is flipping on it’s head this Saturday. But don’t panic! You know Kreg and I have your back 💪💪 We will roll with the punches right alongside you as we all adapt to the new changes on the horizon.
Keep reading, we have a special event this week to help!
We are posting regular content to Instagram (Nick | Kreg) and Facebook (Nick | Kreg) to help you and your buyers stay informed. Be sure to follow us!
Read time: ~4 minutes
How Top Agents are Preparing for Saturday
I've been diving into YouTube interviews and reading up on how top agents are prepping for the shifts ahead. Here's what they're laser-focused on:
🔍 Nailing Their Value Proposition: What’s your unique edge? How do you stand out and offer something buyers can’t resist?
💬 Leveling Up Buyer Consultations: A killer 1:1 meeting that showcases your expertise and value can make all the difference in securing that client—and that commission you deserve.
đź“ť Mastering New Forms: Be the pro who can effortlessly explain the buyer-broker agreement and any other new requirements your state requires.
🎠Sharpening Scripts & Role Play: Don’t just wing it. Get your scripts on point and practice them with a colleague. Your first talk about commissions and the buyer-broker agreement shouldn’t be with a fresh buyer.
🏠Hosting More Open Houses: Buyers don’t need a broker agreement to visit an open house. This is your chance to meet motivated buyers who haven’t committed to another agent yet.
I've also been syncing up with our Realtor partners to ensure we're all on the same page. Here’s what your lender needs to know:
Are you talking compensation upfront before preapproval?
How do you want us to handle questions about your compensation?
Will a seller credit be necessary to cover all or part of your fee?
Should we preapprove buyers for extra closing costs to cover commissions?
Lastly, I found this article super inciteful. Here are 6 Items to Consider Before Practice Changes Take Effect. Critical decisions need to be made to position your business to take the most market share.
Key Takeaway: Sun Tzu wrote “He will win who, prepared himself, waits to take the enemy unprepared.” Do not sleep on these changes from NAR. The industry WILL change. Agents who are prepared WILL take market share. As lenders, we’ve gone through a few similar shifts and the cream rises to the top. Lean in, embrace change, test & learn. You’ll be fine and that commission will continue to roll.
Exclusive Interview with NAR President
If you’re feeling behind on the changes impacting the real estate industry, don’t worry, we gotchu 💪💪
This Wednesday, my friend and coach Tommy Choi is interviewing Kevin Sears, the President of NAR, to ask the tough questions around this NAR settlement.
This is a private, exclusive event that we’ve opened up to our Realtor partners and I’d love to see you there.
The Great Migration to…Columbus, OH 🚶🚶🚶
Columbus tops the charts, again, on another promising data set.
Bank of America researchers continue to see major outflows from northeastern & western metropolitan areas (Boston, New York, Los Angeles, San Francisco). Some surprising areas in the south are seeing significant reduction in population, too (Miami, Orlando).
Where are they going? Columbus, of course 🙌 Quarter after quarter, Columbus continues to chart big gains in population along with Austin and Las Vegas.
Key Takeaway: While there are some headwinds in the broader real estate industry, Ohio is in a promising spot for the foreseeable future.
Noteworthy News Worth Sharing
We had a lot to share this week, so we’ll run through the top news items you need to be aware of.
July CPI numbers hit Wednesday morning. Markets expect an increase in monthly CPI by 0.2%, which is off the heels of a -0.1% decline in June.
US Chapter 11 bankruptcies jump to 2,462. This is the highest number in 13 years. Companies are weaker.
US Consumer spending beginning to slow down. Consumer credit declined by $1.7B. Consumers are weaker.
Credit card delinquency rates jump to 7% in Q2, the highest level since 2011. Auto loan delinquencies are at 3%, the highest level in 14 years. Consumers are struggling.
Leading economists are seeing their data start to flag that a recession is here, specifically the Sahm Rule. This was triggered after the July unemployment rate spiked to 4.3%. The economy is brittle.