Huge new! This is the first rate cut in almost four years, which means a lot of things for potential buyers and sellers who may have been holding back before. For you, it means it’s time to jump into action and start educating your database and sphere. We need to capitalize on this moment, not just to make more transactions but to genuinely help people navigate this complicated situation.
So before I go live on September 26 to talk more about the implications of the Federal Reserve meeting and how to leverage it, as well as the most important tactics for closing out the year, I want to use this blog to share some tips that will help you communicate better right now. Keep in mind, there are a lot of other factors going on right now such as an election cycle, the possibility of a recession, and more, so things could change at any moment.
A few weeks ago, we talked about the economy. Now, let's break down what happens in the housing market when the Fed cuts interest rates:
This is the question on the minds of everyone who is looking to buy or sell. Again, I’ll say that these are only predictions based on the information available, so take it with a grain of salt.
Now, how do you translate this information into actionable advice for your clients and sphere? It’s simple: clear, concise, and empathetic communication is key.
Start by educating your clients about what the Fed's interest rate cuts mean. Use simple language to explain how these cuts can affect their buying or selling decisions. For instance, you might say:
"Lower interest rates can make borrowing cheaper, which might increase the number of buyers in the market. This could mean more competition for homes and potentially higher prices."
If I were you, I’d send out an email followed by a text to everyone in my database to let them know what’s going on. And of course, you need to spread the word at scale on social media.
Federal Reserve interest rates and their implication on the home buyer process is complicated, and providing helpful guidance on it is even more complicated. You need to stay on top of the latest developments and then be able to convert them into content in a flash.
This is just one of the ways that tools like TomAI+ are setting our coaching members apart from the rest of the industry. TomAI+ released a ton of new features earlier this week, such as a Market Info tab which sources the latest, most relevant, and most accurate real estate news from across the entire internet and then allows you to instantly convert it into meaningful, personalized marketing pieces in your voice.
It's crucial to set realistic expectations. If mortgage rates are predicted to stabilize or drop slowly, let your clients know. This helps them make informed decisions without unrealistic hopes.
This is a part of your value proposition. Yes, now is a good time to buy or sell a home, but you need a trusted advisor who is going to tell you the truth.
For buyers, emphasize the potential benefits of entering the market now, such as lower borrowing costs. For sellers, highlight the increased buyer activity and potential for higher home prices.
This is a huge opportunity for home sellers who are looking to downsize. With the rates cut and so many buyers flooding the market, now it’s an incredible time for them to get as much competition (and value) on their property as possible
Be prepared to address concerns about affordability and inventory shortages. Acknowledge these challenges and offer solutions, such as exploring different neighborhoods or considering new builds.
Want a deeper look into the most important real estate strategies of Q4, including how to leverage the fed rate cut?
In a few days, I’m hosting a webinar with some of the stars of this year’s Success Summit to dissect the mind-blowing real estate strategies they shared at the event to help you execute the ideas. On top of that, I’ll be mentioning how to best leverage this interest rate development into your communications.
“Beyond the Summit: Idea to Implementation” is happening September 26 at 9 a.m. PT. It’s completely free and essential viewing whether or not you attended the Success Summit. All you need to do is register, because spaces are limited and will fill up, so act fast!