It's Critical To Control The Narrative On Home Affordability
It’s critical to control the narrative on home affordability. Here’s how.
Your clients are getting hit with a lot of noise about home affordability. From the media and talking heads (and even from some real estate agents!), the prevailing message is that homes are overpriced, bidding wars are everywhere, and things are just generally insane right now so buyers shouldn’t even try.
It’s important now, more than ever, to do three things:
- Be the EXPERT in the housing industry.
- Control the narrative about what is happening in housing vs. what people hear/read/see in the news.
- Follow the playbook for long lead engagement.
Here are some facts to help you with #1:
- Median existing home prices are $363,000, down $50,800 from a June 2022 peak of $413,800.
- Monthly cost on a $363,000 home purchase with 5% down and a 6.5% mortgage rate would be $2,881.
- If your client had no other debt, they’d qualify making $80k per year as a household. If they had $600 in credit card, auto, and other monthly debt, they’d qualify making $97k in annual household income.
- The mean family income in KS and MO is nearly $100,000 and the median home price in the KC metro is $298,200. This means the average family can afford to buy the average home in Kansas City.
You could also turn this post into an email message for your mailing list.
Here are the important things to know about “Long Lead Engagement”:
- You need a good CRM that you use religiously to make sure that nobody and no activity falls through the cracks.
- Establish yourself as the trusted advisor instead of the real estate “salesperson.”
- Touch base with everyone in your database at least four times per year.
Reach out to me if I can help you talk your clients through their personal situation to establish their “affordability” threshold.
Let’s Go!
xo- KG