Real Estate Truth or Dare
December 3, 2022
Mark Hutchins & Jereme Kleven
My Home Group
8360 E. Raintree Drive, Suite 120
Scottsdale, AZ 85260
Who remembers playing the game of Truth or Dare as a child? When your turn came up, the nerves set in, you felt your stomach turn upside down and your palms beaded up with sweat. Was someone going to ask you a really difficult question, or ask you to do an impossible task?
Welcome to practicing Real Estate in 2023.
We can almost predict a few of the difficult questions of truth that will come our way; Will we see a recession? Do I sell or renovate? Will you cut your commission? What is a buy down?
Your tasks may begin to feel like dares; Find your client a deal. Negotiate an impossible BINSR. Foresee the future. Ask your seller to agree to a price enhancement.
How do we immerse ourselves into the phenomena of forecasting, predictions or directing an outcome? That is easy, it’s information, hard work and collaboration.
Our ability to project knowledge directly affects how our clients will make informed decisions. This should feel like, and absolutely is a heavy responsibility of a full-time job. As agents providing guidance and consultation, we must have the most accurate tools and data available. Our heads are spinning with so many circumstances to master; more inventory/ less inventory/ competition/ price improvements/ inspections/ repairs/ home warranties /seller concessions, and this is just a regular Monday morning!
What and who you keep in your back pocket to navigate market challenges and express confidence in your expertise and opinions matters. Attitude and work ethic in the current market will make or break the trajectory of your business. Quiz yourself; Has there been any boost in the economy for 2022? Do you know if our labor market is strong? What does our population look like? Are home prices still steady? Does your client qualify for a renovation loan? Why would a seller offer any concessions? Which tool do you use to create a CMA? How do you share neighborhood data? Are you using market reports as a touch point to your sphere?
Did you know these answers?
- The economy has posted its first period of growth for the year in the 3rd quarter, GDP (Gross Domestic Product) +2.6%. (Review stats from local & national economists.)
- Is the labor market strong? Arizona Growth is near 4%. (Subscribe to local updates)
- Population? Arizona is a magnet! 14th most populous state in the US with growth for Q3 at 1.7% (US Census Bureau)
- Home prices steady? Month over month we are up, yet YTD we see decreases. (Read your ARMLS stats & subscribe to the Cromford Report.)
- Renovation Loans? Yes, it’s a thing. (Consult your lending partner and find out allowable repairs.)
- Buy downs/seller concessions? Yes, sellers are coming to the table with more. (Consult your lending partner.)
- CMA’s & Neighborhood reports: (Check your ARMLS products under the menu.)
- Market data, It’s available everywhere! (Check in with a trusted title partner.)
Know where to locate the tools, people and support to stockpile valuable information & fill that back pocket. Look to your brokerage, lean on your partnerships, study data from local and national market experts, know your inventory, current stats and create your playbook. Our perspective of the market will translate to our clients. A negative outlook will breed fear, an informed, positive outlook will breed opportunity.