Today's Headlines - Realty Times
Posted On Monday, 09 January 2023 00:00 Written by

Welcome to 2023! I am excited to enter this year with the excitement for our industry that many others are lacking but are searching for. It may just be my experience pointing me to the opportunities that are there for the taking, but I can’t help but feel optimistic about what lies ahead, and you should too!

I did a call with Dave Savage of Mortgage Coach last Friday (You can find it on Facebook or the Mortgage Coach YouTube channel) and it was about what four generations of mortgage professionals thought about our business going forward. While I am not so sure that it was four generations since Dave Savage, and Dave Gallegos are less than 10 years younger than I am, but Sosi at 33 is almost young enough to be my grandson, so why not? The point is perspective!

As the industry has changed in many regards, the base business remains pretty much the same. The concepts, many thought to be “old school” by some originators, are still as functional as always, we are just using different delivery systems in many regards. While there aren’t many using paper files or rolodexes any longer, personal communication, connection, and information remain critical in building long term relationships providing service and value to our clients and referral partners.

We also must address shifting sources of opportunities. Realtors® will always be an important component of our business, our industry has been very slow to address other important potential referral partners as equally important to our long-term business. It can’t be about buying leads, calling for coffee appointments, visiting open houses, and then hoping for the phone to ring. It has to be about a diversified set of strategies to cover the entire field of opportunity generation and the creation of value to those we come in contact with.

The “Old School” philosophy that “People work with those they know, like, and trust” is alive and well in 2023. It was then, as it is now; it’s all about relationships!

Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 09 January 2023 00:00 Written by
Posted On Friday, 06 January 2023 19:35
Posted On Friday, 06 January 2023 19:32

Buyers received concessions—such as money for repairs and mortgage-rate buydowns—in a record 42% of home sales in the fourth quarter, up from 31% a year earlier

Home sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter—the highest share of any three-month period in Redfin’s records, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

That’s up from just over 30% in both the previous quarter and the fourth quarter of 2021, and outpaces the prior 40.8% high from the three months ending July 2020, when the housing market nearly ground to a halt due to the onset of the coronavirus pandemic. Redfin’s concessions records date back to July 2020 and are based on data submitted by Redfin buyers’ agents.

Concessions have made a comeback as rising mortgage rates, inflation and economic uncertainty have dampened homebuying demand, giving the buyers who remain in the market increased negotiating power.

That’s a stark shift from the pandemic homebuying frenzy of late 2020 and 2021, when record-low mortgage rates fueled fierce competition, forcing most buyers to bid over the asking price and waive every contingency just to have their offers taken seriously.

“Buyers are asking sellers for things that were unheard of during the past few years,” said Van Welborn, a Redfin real estate agent in Phoenix. “They’re feeling empowered, partly because their offer is often the only one, and partly because they know sellers have built up so much equity during the pandemic that they can afford to dole out sizable concessions.”

Welborn continued: “I recently helped one of my buyers negotiate a $10,000 credit for a new roof and a handful of other repairs. We originally asked for $15,000, but were happy with $10,000 because the homeowner also agreed to sell for less than their asking price.”

Homeowners are increasingly selling for below their desired price as the housing market slows. A record 22% of home sales recorded by Redfin buyers’ agents in the fourth quarter included both a concession and a final sale price below the listing price, while a record 19% included both a concession and a listing-price cut that occurred while the home was on the market. A record 11% included all three.

Phoenix Saw the Biggest Jump in Concessions

In Phoenix, sellers gave concessions to buyers in 62.9% of home sales in the fourth quarter, up from 33.2% a year earlier. That 29.7-percentage-point increase is the largest among the 25 U.S. metropolitan areas for which data was available. Next came Seattle (25.6 ppts), Las Vegas (22.2 ppts), San Diego (20.7 ppts) and Detroit (20.4 ppts).

Phoenix and Las Vegas are among the fastest cooling markets after they soared in popularity during the pandemic as scores of remote workers moved in, searching for relative affordability and warm weather.

“It took a while, but seller expectations are coming back down to earth. Concessions were common before the pandemic, and we may be returning to that norm,” Welborn said. “Sellers realize they’re not going to get $80,000 over the asking price like their neighbor did last year.”

Welborn said he has recently seen sellers offer credits of as much as $25,000 to cover repairs and closing costs, and that they’re also offering to pay for 2-1 mortgage-rate buydowns and warranties on household appliances.

There were four metros in which concessions were less common compared with a year ago. In Austin, TX, sellers gave concessions to buyers in 33.3% of home sales, down from 38.1% a year earlier (-4.8 ppts). Next came Philadelphia (-2.7 ppts), New York (-2.4 ppts) and Chicago (-1.6 ppts).

Concessions Are Most Common in San Diego

In San Diego, sellers gave concessions to buyers in 73% of home sales in the fourth quarter—the highest share among the metros Redfin analyzed (San Diego also had the highest share a year ago). Next came Phoenix (62.9%), Portland, OR (61.6%), Las Vegas (61.3%) and Denver (58.4%).

In New York, sellers gave concessions to buyers in 13.4% of home sales—the lowest share among the metros Redfin analyzed. It was followed by San Jose, CA (14.4%), Boston (17.5%), Philadelphia (22%) and Austin (33.3%).

To view the full report, including charts, methodology and a metro-level breakdown, please visit: https://www.redfin.com/news/home-seller-concessions-january-2023/

Posted On Friday, 06 January 2023 06:39 Written by
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Posted On Thursday, 05 January 2023 19:16
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