YCM Crystal Ball Predictions for 2019

2019 Things in Real Estate to look out for!
Mike and Donna Stott’s of Your Coaching Matters Predictions:

1) Your sellers may feel like prices are falling 10%. However, in most parts of the country, we’ll actually see modest price increases of 2 to 4%. The reason: prices have risen so far, so fast that sellers expect their home that was worth $450,000 last year to be worth $510,000 this year. When it proves to be worth $460,000 they’ll feel like they “lost” $50,000. Prepare them by telling the truth during your initial interview and astound them with terrific followup!

2) There may be an exception to Point 1: homes priced at double or more above the median price for your market will see depreciation due to decreased demand. Since interest rates are rising many will stay put with their low mortgage rates and fix up their current home instead of trading up.

3) The number of sales nationwide will actually increase slightly. From 2018’s 5.96 million to something a little over 6 million home sales. This means 2019 will be a great year. Slightly rising prices and number of closings up mean more to agents!

4) Mortgage rates will rise at least 2 times in 2019. Expect 5.5% to 5.75% at years end.

5) Millennial buyers will continue to buy homes. Are you marketing to the 25 to 35-year-olds? Look for neighborhood amenities, eco-consciousness, walkability etc.

6) Complicating this return to a normal market will be the news medias increasing “sky is falling” prediction. Look to the real experts’ insight not the more popular brand of fear-mongering. Offer the best information to your clients, un-thought of options, and incredible service and you’ll be fine!

7) We see real estate teams/companies heading towards one of two models. Model one spends a lot of money (and we mean a lot – 5 or 6 digit monthly ad expenses are not uncommon) to find leads for their teams. Of course, this means they have to invest in pricey CRMS and have systems to handle a large number of leads. And they cannot afford to pay their team members 50% to 80% of the gross commission. They will pay them as if they were employees. Model two will be like a boutique shop with excellent service. A minimum viable audience (database) of 500 to 1000 will keep most agents rocking with 20 to 100 deals each year because they earn it with the best information, un-thought of options and incredible service (notice a theme here?)

8) Transactions will remain complicated regardless of what the techie companies say they can streamline. When there’s a problem that’s when we as agents earn our money by getting it fixed. There’s no way to streamline some of the crazy stuff we see every day. Ever make a home warranty claim? How smooth was that process? I suspect many of the companies promising streamlining are really in it for the money and will not make anything easier.

9) Speaking of the ibuyer companies out there. Don’t worry about them. Many of them are only profitable because the market was appreciating. It will be interesting to see what happens with longer on market times, more negotiations required, and slower appreciation. I predict some will go out of business in 2019.

10) As we talked about last year, we’ve seen homes with a master on the main “even better if they have a second or third bedroom on the main,” Sell quicker and we’ve even heard that some appraisers in CA are giving those homes more value.

11) According to the 2018 NAR Profile of Home buyer and sellers, 81% of the sellers found their agent through some form of relationship with the agent or some sort of relationship marketing with that agent (past client, center of influence, yard sign, open house etc.) The buy side had similar numbers. This means that all the ibuyers, the marketing companies, Zillow etc. are chasing the 20% or so of the deals that aren’t picking agents because of past experience or a friends recommendation. That’s a lot of money chasing 1 out of every 5 deals. In my personal interactions with hundreds of FSBO’s many of them list with their friend that they told me about. Even though I am a great salesperson who provides incredible service and information I am often unable to “break” that bond and trust the FSBO has with their friend. If you don’t have a huge budget and system to handle incoming leads 24/7 (and we mean being able to respond within a minute or two) STOP spending money and effort on the magic pill and bright and shiny objects that marketing companies are offering you. These companies know we, as an industry have money, and that we are always looking for an “easier” way to create the relationships that bring us business. Expect to be bombarded with offers. Be prepared to tell them “that’s not how I operate my business.”

12) Relationships will become increasingly important. Re-read point 11. People like being acknowledged and taken care of. Make your past clients and centers of influence your focus. Schedule time in each morning to lead generate and lead followup. Concentrate on building each relationship to grow your business.

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A Free Special Report From Your Coaching Matters
January 2019
YCM Crystal Ball Predictions for 2019
Mike Stott

mike.stott@mac.com

www.YourCoachingMatters.com

Cell: 678-232-0927

Office: 770-726-1256

International Coach Federation • Certified ACC

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