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Listen "What To Do RIGHT NOW For A Great 2023 • Close-ing Time • Chris Linsell"
Episode Synopsis
Welcome to our monthly feature, Close-ing Time – in partnership with TheClose.com.
Chris Linsell from TheClose.com offers an overview of the real estate market over the last years. Chris discusses where agents should shift their attention now that the market has slowed down. Chris gives tips on how should agents talks to their clients about the equity of their home. Last, Chris emphasizes the importance of transforming the transactional relationship with your clients into a recurring value relationship.
If you’d prefer to watch this interview, click here to view on YouTube!
Chris Linsell can be reached at [email protected].
This episode is brought to you by Real Geeks and FollowUpBoss.
Transcript
D.J. Paris 0:00Where should you be focused in 2023 to keep your business thriving? Stay tuned. This episode of Keeping it real is brought to you by real geeks. How many homes are you going to sell this year? Do you have the right tools? Is your website turning soft leads and interested buyers? Are you spending money on leads that aren't converting? Well real geeks is your solution. Find out why agents across the country choose real geeks as their technology partner. Real geeks was created by an agent for agents. They pride themselves on delivering a sales and marketing solution so that you can easily generate more business. Their agent websites are fast and built for lead conversion with a smooth search experience for your visitors. Real geeks also includes an easy to use agent CRM. So once a lead signs up on your website, you can track their interest and have great follow up conversations. Real geeks is loaded with a ton of marketing tools to nurture your leads and increase brand awareness visit real geeks.com forward slash keeping it real pod and find out why Realtors come to real geeks to generate more business again, visit real geeks.com forward slash keeping it real pod and now on to our show
Welcome to keeping it real the largest podcast made by real estate agents and for real estate agents. My name is DJ Paris I am your guide and host through the show and today is our monthly series called closing time with Chris Lin sell from the closed.com No, this is a partnership between keeping it real in the clothes and let me tell you more about the clothes. Now the clothes.com is the kind of real estate website designed to give agents teams and brokerages actionable strategic insight from industry professionals they cover real estate marketing, lead generation technology and team building strategies from the perspective of working agents and brokers who want to take their business to the next level. Please visit the closed.com That's th e c l o s e just like it sounds.com And subscribe to their newsletters get notified every time they publish an article with us as always is Chris Lynn sell senior staff writer and real estate coach for the close. And Chris is the closest resident expert on real estate topics ranging from marketing lead gen transactional best practices and everything in between. He's also a licensed agent in the state of Michigan. And he's been part of hundreds of transactions from modest rural starter homes to massive waterside compounds. And when he isn't writing, you'll find Chris fly fishing or performing on the stage of his community theaters production. Chris Welcome once again to keeping it real, we're excited to have you
Chris Linsell 2:48here. Thanks for having me back. Always a pleasure looking forward to digging into it today.
D.J. Paris 2:53Always a pleasure to so I wanted to start with with something that I get a zillo report every, every every month as a consumer, just because I'm always interested in what Zillow sends to the public. That is my address. And they tell me you know what they believe my home to be worth. And you know, it's a pretty depressing number. I saw it today, it's actually gone down in the last 30 days, quite substantially. However, I am not in the market of selling. But I was thinking about sellers, because I also have a very low interest rate. So I'm at around a 3% rate. And so if I were to sell right now, which again, I'm not looking to do, I would be, you know, I would feel it, at least at first glance that I'm getting a pretty bad deal because my home is, you know, worth less than what I paid for it. And I'm still net equity positive, but not by a whole lot. And then also I would be giving up that 3% rate to you know, most likely a six plus percent rate in the new home that I were to purchase. So I was just thinking, this has got to be on the minds of a lot of homeowners right now who probably would like to buy, but maybe are seeing those rates and maybe seeing their value of their home, you know, go down in the last couple years as those rates have gone up. So just kind of curious to get your thoughts on the psychology of, of the consumer or the homeowner, and what realtors can do in 2023 to sort of adjust for that.
Chris Linsell 4:23Yeah, it's a great question. Because we are reaching an interesting kind of Crossroads as far as the overall consumer mindset and set of experiences that are driving their behavior. Right. I think it's fair to say there have been I would say three, three recent relatively recent, honestly relatively recent sets of kind of eras for buyers and sellers of real estate in the United States, right we had the pre COVID era when we have Add a relatively short inventory, relative to demand, but they weren't writing stories in the Washington Post about inventory. Then COVID came, and everybody kind of freaked out. And we needed to kind of get our heads around what that meant. In the real estate effects that happened were, you know, a lot of folks decided they were going to move from cities out into more suburban or rural areas, we saw a very high demand for housing turnover, especially for single family homes. And we also had an economy that warranted the need of kind of some kickstart programs, to give us a chance to make sure that we we could continue to function economically as a country, whether or not those were necessary or viable solutions, I'm gonna leave that up to somebody else to debate. But one of the kind of downstream results of that were extraordinarily low interest rates, as you mentioned before, for purchasers of real estate in the COVID, or the very, you know, like the current COVID, or the very post COVID. Time. So then that leads us to where we are now, interest rates, high inventory, still a bit of a challenge, and a lot of places still competitive markets in a lot of places, and real estate professionals looking to be planning their strategies for 2023. And a lot of questions are being asked about how do we reach sellers? We've got sellers who are unlikely to want to sell their home, because where are they going to go? They don't have got a lot of great inventory options. They don't have a lot of great interest rate options. What's the benefit to sell? And I want to put forward a couple of different ideas here. The first is you talked about what's the psychology and the mindset of sellers, I want to start by setting the tone in that we have to remember, the psychology and mindset of sellers is not a single point of light, it is a significant gradation of various perspectives and viewpoints. We have to remember that, yes, a lot of real estate was purchased in the COVID. And immediately post COVID, if you can call it that era at low interest rates. But that does not make up the majority of homeownership right now, by any stretch of the imagination. We have a good chunk of folks who owned their home long before COVID was even a thing have an incredible amount of equity in their home right now. That is likely unrealized, we have a good chunk of folks who didn't refinance, who are sitting on even a post refinance are still sitting on a good chunk of equity. And where we find ourselves as real estate professionals is a place we haven't found ourselves in a long time, which is the number one priority for a lot of real estate professionals when it comes to listings and sellers and their psychology and mindset is one of education, not of immediate opportunity. We are not answering calls from people saying, Hey, I heard it's great time to sell my house, what options do I have? Real estate professionals should consider those calls to be on hold for quite a while, maybe a year, maybe two years, frankly, we are needing to now shift our strategies to education and awareness. Because a lot of owners right now, either don't know their options, or think they know their options when they don't really which is frankly worse. So to answer your, your mindset question, my initial response is most mindsets right now are either unaware or ignorant. And these are places where yes, it makes things challenging. But for real estate professionals who can shift their strategies, that's a huge opportunity to
D.J. Paris 9:16it's such it's such an interesting play this equity question, I think this is something that isn't typically although I'm just thinking of myself, and I might not be representative of the John Q Public, because I'm in the real estate business. So I probably look, I'm probably not the right sort of viewpoint here. But this idea of thinking about equity, I just don't think most homeowners are think about their equity unless they're in the process of selling right? I think it's they look at the appreciation. They look at the the amount they cut to the mortgage bank, the lender every month, they probably know their interest rate or there abouts. So I think those are kind of the Three key metrics is what's my home worth? What am I paying every month? What's my, what's my actual rates? I don't know, and what my home's even worth, I think is oftentimes not really thought about all that much. But I think this idea of equity would be a real.
Chris Linsell from TheClose.com offers an overview of the real estate market over the last years. Chris discusses where agents should shift their attention now that the market has slowed down. Chris gives tips on how should agents talks to their clients about the equity of their home. Last, Chris emphasizes the importance of transforming the transactional relationship with your clients into a recurring value relationship.
If you’d prefer to watch this interview, click here to view on YouTube!
Chris Linsell can be reached at [email protected].
This episode is brought to you by Real Geeks and FollowUpBoss.
Transcript
D.J. Paris 0:00Where should you be focused in 2023 to keep your business thriving? Stay tuned. This episode of Keeping it real is brought to you by real geeks. How many homes are you going to sell this year? Do you have the right tools? Is your website turning soft leads and interested buyers? Are you spending money on leads that aren't converting? Well real geeks is your solution. Find out why agents across the country choose real geeks as their technology partner. Real geeks was created by an agent for agents. They pride themselves on delivering a sales and marketing solution so that you can easily generate more business. Their agent websites are fast and built for lead conversion with a smooth search experience for your visitors. Real geeks also includes an easy to use agent CRM. So once a lead signs up on your website, you can track their interest and have great follow up conversations. Real geeks is loaded with a ton of marketing tools to nurture your leads and increase brand awareness visit real geeks.com forward slash keeping it real pod and find out why Realtors come to real geeks to generate more business again, visit real geeks.com forward slash keeping it real pod and now on to our show
Welcome to keeping it real the largest podcast made by real estate agents and for real estate agents. My name is DJ Paris I am your guide and host through the show and today is our monthly series called closing time with Chris Lin sell from the closed.com No, this is a partnership between keeping it real in the clothes and let me tell you more about the clothes. Now the clothes.com is the kind of real estate website designed to give agents teams and brokerages actionable strategic insight from industry professionals they cover real estate marketing, lead generation technology and team building strategies from the perspective of working agents and brokers who want to take their business to the next level. Please visit the closed.com That's th e c l o s e just like it sounds.com And subscribe to their newsletters get notified every time they publish an article with us as always is Chris Lynn sell senior staff writer and real estate coach for the close. And Chris is the closest resident expert on real estate topics ranging from marketing lead gen transactional best practices and everything in between. He's also a licensed agent in the state of Michigan. And he's been part of hundreds of transactions from modest rural starter homes to massive waterside compounds. And when he isn't writing, you'll find Chris fly fishing or performing on the stage of his community theaters production. Chris Welcome once again to keeping it real, we're excited to have you
Chris Linsell 2:48here. Thanks for having me back. Always a pleasure looking forward to digging into it today.
D.J. Paris 2:53Always a pleasure to so I wanted to start with with something that I get a zillo report every, every every month as a consumer, just because I'm always interested in what Zillow sends to the public. That is my address. And they tell me you know what they believe my home to be worth. And you know, it's a pretty depressing number. I saw it today, it's actually gone down in the last 30 days, quite substantially. However, I am not in the market of selling. But I was thinking about sellers, because I also have a very low interest rate. So I'm at around a 3% rate. And so if I were to sell right now, which again, I'm not looking to do, I would be, you know, I would feel it, at least at first glance that I'm getting a pretty bad deal because my home is, you know, worth less than what I paid for it. And I'm still net equity positive, but not by a whole lot. And then also I would be giving up that 3% rate to you know, most likely a six plus percent rate in the new home that I were to purchase. So I was just thinking, this has got to be on the minds of a lot of homeowners right now who probably would like to buy, but maybe are seeing those rates and maybe seeing their value of their home, you know, go down in the last couple years as those rates have gone up. So just kind of curious to get your thoughts on the psychology of, of the consumer or the homeowner, and what realtors can do in 2023 to sort of adjust for that.
Chris Linsell 4:23Yeah, it's a great question. Because we are reaching an interesting kind of Crossroads as far as the overall consumer mindset and set of experiences that are driving their behavior. Right. I think it's fair to say there have been I would say three, three recent relatively recent, honestly relatively recent sets of kind of eras for buyers and sellers of real estate in the United States, right we had the pre COVID era when we have Add a relatively short inventory, relative to demand, but they weren't writing stories in the Washington Post about inventory. Then COVID came, and everybody kind of freaked out. And we needed to kind of get our heads around what that meant. In the real estate effects that happened were, you know, a lot of folks decided they were going to move from cities out into more suburban or rural areas, we saw a very high demand for housing turnover, especially for single family homes. And we also had an economy that warranted the need of kind of some kickstart programs, to give us a chance to make sure that we we could continue to function economically as a country, whether or not those were necessary or viable solutions, I'm gonna leave that up to somebody else to debate. But one of the kind of downstream results of that were extraordinarily low interest rates, as you mentioned before, for purchasers of real estate in the COVID, or the very, you know, like the current COVID, or the very post COVID. Time. So then that leads us to where we are now, interest rates, high inventory, still a bit of a challenge, and a lot of places still competitive markets in a lot of places, and real estate professionals looking to be planning their strategies for 2023. And a lot of questions are being asked about how do we reach sellers? We've got sellers who are unlikely to want to sell their home, because where are they going to go? They don't have got a lot of great inventory options. They don't have a lot of great interest rate options. What's the benefit to sell? And I want to put forward a couple of different ideas here. The first is you talked about what's the psychology and the mindset of sellers, I want to start by setting the tone in that we have to remember, the psychology and mindset of sellers is not a single point of light, it is a significant gradation of various perspectives and viewpoints. We have to remember that, yes, a lot of real estate was purchased in the COVID. And immediately post COVID, if you can call it that era at low interest rates. But that does not make up the majority of homeownership right now, by any stretch of the imagination. We have a good chunk of folks who owned their home long before COVID was even a thing have an incredible amount of equity in their home right now. That is likely unrealized, we have a good chunk of folks who didn't refinance, who are sitting on even a post refinance are still sitting on a good chunk of equity. And where we find ourselves as real estate professionals is a place we haven't found ourselves in a long time, which is the number one priority for a lot of real estate professionals when it comes to listings and sellers and their psychology and mindset is one of education, not of immediate opportunity. We are not answering calls from people saying, Hey, I heard it's great time to sell my house, what options do I have? Real estate professionals should consider those calls to be on hold for quite a while, maybe a year, maybe two years, frankly, we are needing to now shift our strategies to education and awareness. Because a lot of owners right now, either don't know their options, or think they know their options when they don't really which is frankly worse. So to answer your, your mindset question, my initial response is most mindsets right now are either unaware or ignorant. And these are places where yes, it makes things challenging. But for real estate professionals who can shift their strategies, that's a huge opportunity to
D.J. Paris 9:16it's such it's such an interesting play this equity question, I think this is something that isn't typically although I'm just thinking of myself, and I might not be representative of the John Q Public, because I'm in the real estate business. So I probably look, I'm probably not the right sort of viewpoint here. But this idea of thinking about equity, I just don't think most homeowners are think about their equity unless they're in the process of selling right? I think it's they look at the appreciation. They look at the the amount they cut to the mortgage bank, the lender every month, they probably know their interest rate or there abouts. So I think those are kind of the Three key metrics is what's my home worth? What am I paying every month? What's my, what's my actual rates? I don't know, and what my home's even worth, I think is oftentimes not really thought about all that much. But I think this idea of equity would be a real.
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