Market Update Mar 30, 2024 - Rate Buydowns, More Listings, & Social Media for Realtors

Mike Mills (Host) | 00:00:08 to 00:00:19

Howdy out there to all my real estate fanboys and girls. So you're still playing this game then you are winning. You survive 2023. And it's 2024. The sun is shining, and home buying season is upon us.

Mike Mills (Host) | 00:00:19 to 00:00:39

And this is the Texas Real estate and finance podcast market update for the week of March the fifth. And I am your aging and ball alding, mostly host Mike Mills, a north Texas mortgage banker with Geneva Financial. So I've got a question for you. These days, are you treating your real estate social media like a hobby or a crucial part of your business strategy? Because imagine being able to turn likes into leads and followers into clients.

Mike Mills (Host) | 00:00:39 to 00:00:56

Intrigued? Well, stick around to the end, because I have the blueprint for your social media transformation. But before we get into all that, I've got a few stories on tap today to help keep you informed along your real estate adventure. First up, Yahoo Finance says that all the buying down of mortgage rates in 2023 was maybe not such a great idea. I'll explain to you the reason next.

Mike Mills (Host) | 00:00:56 to 00:01:20

We're navigating the shifting real estate market with insights from Mike Simonson of Altos Research. You see, with high rates, we're seeing more and more houses on the market, and we're seeing price reductions. We'll dive into the numbers then. Resi Club analytics paints a sobering picture of the Everest climb facing today's homebuyers, needing an 80% increase of income to afford a house since 2020. But with the prices possibly on the decline, is this a trend expected to get worse or better?

Mike Mills (Host) | 00:01:20 to 00:01:39

I'm going to let you know. Following that, we'll dive into the Capital one and discover mega merger worth 35.3 billion with a b, as reported by Fortune magazine. How will this impact your wallet and credit card costs? And finally, the most surprising stat of 2023, housing wire shares that a whopping 55% of purchases using a mortgage were snagged by first time homebuyers. How is this possible?

Mike Mills (Host) | 00:01:39 to 00:01:54

We'll check it out. Okay, well, here's the point of the episode where I beg you for love and approval. If you hear anything on today's episode that you find helpful or even just mildly entertaining, please hit that like button like it owes you money. Share subscribe and drop us a review. Your support helps us reach more ears than a conspiracy theorist on Reddit.

Mike Mills (Host) | 00:01:54 to 00:02:02

And I got a ton of conspiracy theories that I love to dive into every day. But that's for another day and maybe another episode. I don't know. Let me know if you want to hear about it. Anyway, let's get onto the show.

Mike Mills (Host) | 00:02:02 to 00:02:23

All right, everybody's favorite first topic, interest rate rates. So interest rate buydowns were all the rage in 2023. Every realtor and lender on earth was selling them as the cure all to all of. But were they actually worth it? Well, in a recent exploration by Yahoo Finance, financial experts agreed that the cost of buying down mortgage rates in 2023 outweighed the benefits, a situation that's unlikely to change in 2024.

Mike Mills (Host) | 00:02:23 to 00:02:52

So, a few things to keep in mind here. The article discussed how paying upfront fees to secure lower interest rates might not justify the hefty initial cost for at least several years. You see, there was ultimately a minimal impact on long term savings due to the marginal rate decrease, making it an overall ineffective strategy. For instance, toll brothers, a builder, currently offers a first year rate as low as 3.99% in its three to one buydown program on select homes. Well, you see rates are reduced by 3% the first year, 2% the second year, and 1% the third year.

Mike Mills (Host) | 00:02:52 to 00:03:10

So by the fourth year, the rate would increase up to six point by 9%, and then remain fixed through the end of the 30 year term, causing an increase in the payment each year, possibly by year three, not having the best rate on the market and losing the benefit of the buy down altogether. Now, that's a temporary buy down. That's not buying your rate down for the life of the loan. That's just for a set period of time. So here's an example of a permanent buy down.

Mike Mills (Host) | 00:03:10 to 00:03:24

So typically, one point is going to cost you 1% of the loan size, not one point in rate, but that's the cost. 1% is one point. So on a $400,000 loan, purchasing one point translates to $$4,000 owed. At closing. Discount points typically make the rate move about an 8th to a quarter of a point in interest.

Mike Mills (Host) | 00:03:24 to 00:03:48

Meaning a mortgage rate of, say, 6.75 would inch down to, at the most, maybe six and a half percent for that one point that you're paying, and this would be for the duration of the loan term. But that would only save you about $65 to $75 a month on a $400,000 purchase price, but at a cost of $4,000. So it would take you almost five years to break even on that upfront cost. And in that time, who knows what would happen with the house, and who knows if rate could get better and you'd refinance anyway. So is it really worth it to buy down the rate?

Mike Mills (Host) | 00:03:48 to 00:04:28

You see the diminishing returns from buying down the rate emphasize the evolving dynamics of home financing. Although lower rates on the surface can seem like a big advantage when you factor in the time that it takes to break even and the funds that you could have used dollar for dollar to pay other closing costs outside of the rate buy down, and then factor in the fact that rates are expected to climb over the next few years, I don't think it makes much sense in most cases to employ this technique now. And given the insights from the article from Yahoo. The significance of being cautious with the mortgage rate buydowns cannot be overstated. For realtors guiding their clients through the maze of home financing, it's vital to emphasize the importance of making informed decisions that align with both the current market conditions and the client's long term financial ah, the allure of rate buy downs.

Mike Mills (Host) | 00:04:28 to 00:04:46

Much like the fad diets, they promise so much but often deliver so little. So my advice is stick to the boring, tried and true financial exercise, folks. It more often than not gets you the results you want. All right, now let's move on to some housing trends. So with mortgage rates this year seeming to be higher for longer, what is this doing to home prices and inventory?

Mike Mills (Host) | 00:04:46 to 00:05:19

And what do you need to know to plan your business accordingly? Well, according to the latest insights by Mike Simonson of Altos Research, the real estate market is experiencing some pretty notable changes as of late, with mortgage rates reaching almost 7.2% in recent weeks. This has led to the first inventory increase of the year and the first uptick in price reductions since November. With 498,000 single family homes now on the market, representing a 16% increase from last year and a slight dip in new contracts, the dynamics of more sellers and fewer buyers is becoming more and more apparent. This situation is creating a new environment that we haven't seen in some time for realtors to start navigating.

Mike Mills (Host) | 00:05:19 to 00:05:43

So the article points out that mortgage rates have soared to 7.2% over the last few weeks. Inventory of unsold homes has increased, now totaling 498,000 single family homes in the US. Now, this number can be slightly deceiving because of homes not ready to move in yet. These are the new builds out there that are being started but aren't actually ready to move in, and may not be for the next six to eight months. But this does represent almost a 1% increase from last week and a 16% increase from last year.

Mike Mills (Host) | 00:05:43 to 00:06:05

And also, price reductions have ticked up for the first time since November, with 30% of the homes seeing a cut from their original list price on market. And with new contracts for single family homes that have decreased to 59,000, that's 2% fewer than last week. And the median price of single family homes that went under contract has also slightly decreased to 375,000. Now, this is the median. So it's the mix of homes sold, not necessarily the value.

Mike Mills (Host) | 00:06:05 to 00:06:32

And overall, these are just indicators that suggest the market adjusting to higher mortgage rates. Okay, so the current market dynamics that were highlighted by Mike Simonson in the analysis might initially appear as a real estate market turning down. But many of these homes are new builds that are not yet complete. And as we move further into the spring buying season, this slight change in the winter months, I wouldn't expect to continue. But to be fair, it could be an emerging trend from the reality of higher rates and an economy that might be starting to take a downward turn also.

Mike Mills (Host) | 00:06:32 to 00:06:50

But only time will tell. So the main takeaway here is that you need to pay attention to what the trends are that are affecting your market. And altos research, by the way, is a great tool. The more information that you have and that you're armed with, the better that you can guide your buyers and sellers. You are the expert, so you have to arm yourself with the information to help your clients navigate this changing market.

Mike Mills (Host) | 00:06:50 to 00:07:00

And these days, trying to predict what's coming next in the market is like trying to understand my kids language. Because apparently if your Riz is good, then your fit sold and wasn't capping, bro. Get it? Yeah, neither do I. All right, let's talk a little bit about affordable housing.

Mike Mills (Host) | 00:07:00 to 00:07:34

So, did you know that buyers need 80% more income to afford a home today as compared to 2020? 80% more. Okay, so considering the historic leap in income required to afford a home from $59,000 in 2020 to over $106,000 today, how should realtors adjust their strategy in this new era of real estate? Well, in their latest report, Resi Club analytics delineates the harsh realities facing today's homebuyers with an 80% increase in the income needed to afford a home since 2020. This significant jump reflects the combined impact of rising mortgage rates and home prices during the pandemic.

Mike Mills (Host) | 00:07:34 to 00:08:05

The article highlights the disparities in housing affordability across the US with specific focus on high cost metro areas, and contrasts these challenges with Morningstar's optimistic mortgage rate forecasts for the future. So how did this all happen? Well, mortgage rates went from 3% to 7% post pandemic home prices surged over 40% during the pandemic housing boom and now, over $106,000 is needed annually to afford a typical us home. But the median us household income is only $81,000, up from 65,000 in 2020. So it increased, but not enough.

Mike Mills (Host) | 00:08:05 to 00:08:19

And in places like San Jose, it requires the households to earn $450,000 a year to afford a median home. That's insane. Now, in other markets like Pittsburgh, St. Louis and Detroit, prices do remain affordable for the median income earners. But who wants to live in Pittsburgh and Detroit?

Mike Mills (Host) | 00:08:20 to 00:08:30

No offense to anybody in Pittsburgh and Detroit. Now, Morningstar does predict that rates are expected to decrease to 4.25% by 2028. How they came up with that number, who knows? They're just pulling stuff out of the wind. But that's what they guessed.

Mike Mills (Host) | 00:08:30 to 00:08:51

So the current state of housing affordability is a wake up call for many, revealing the stark realities of the post pandemic real estate market. However, I am cautiously optimistic about the future. Morningstar's prediction for a decrease in mortgage rates offers somewhat of a glimmer of hope, although that might be tied to the fact that their economy might be starting to slide as well. And an economic downturn often leads to lower mortgage rates. And lower mortgage rates often lead to more people looking to buy and sell.

Mike Mills (Host) | 00:08:51 to 00:09:15

So although things seem to be a little out of hand right now, a few small bounces in a bad economic direction could open up the floodgates to cheaper homes and more affordability. Now, no one wants a recession but us in the real estate industry. We sure could use it. Because right now, housing affordability is at all time lows, and there doesn't seem to be any major relief in sight, at least anytime soon. But even if the economy takes a turn for the worse and home prices do start to come down some, it won't last for very long.

Mike Mills (Host) | 00:09:15 to 00:09:36

When the economy turns, the Fed will lower rates again. And when that happens, all assets, stocks, commodities, real estate, heck, even crypto, will start to increase in value again because money will be cheaper. People don't want to hear how right now is the best time to buy a house because we're in the industry. We say it all the time, and it sounds like a broken record. But people also don't want to hear how diet and exercise can cure all your minutes and get you off all your medication.

Mike Mills (Host) | 00:09:36 to 00:09:52

But either way, it still doesn't make it wrong. The truth is the truth, whether you want to hear it or not. Well, I will tell you as a mortgage guy, there might be a rate break on the horizon, but we only had to wipe out half the industry and live on ramen noodles for the last two to three years to get there. But hopefully we'll be on the other side of this soon. All right, let's talk a little bit about money in general.

Mike Mills (Host) | 00:09:52 to 00:10:17

So capital one and discover might be merging, one of just many moves of consolidation to make your choices as a consumer even less so, as they say. What will this mean for your wallet? Well, according to Fortune magazine, we're looking at a monumental all stock transaction worth $35.3 billion, where Capital one is set to acquire discover. This isn't just a big deal, it's a mega deal set to reshape the financial services landscape as we know it. But what's this mean for you and me?

Mike Mills (Host) | 00:10:17 to 00:10:35

Well, here are the facts as we know them. So it's a $35.3 billion deal that's shaking up the entire financial sector. Now, more often than not, this isn't going to happen until later this year or even early 2025. So there's nothing imminent right now, but we are talking about two major players in the credit card game joining forces. And both regulators and shareholders have to give the thumbs up to approve this.

Mike Mills (Host) | 00:10:35 to 00:10:58

So what's in it for us? Well, they tell us that potential shifts in payment processing and maybe even what we pay in fees and get in rewards might improve because of competition. At least that's what they're telling us. But by acquiring Discover, Capital one's going to own one of the biggest payment processing networks in the country, competing against the three larger networks, Visa, Mastercard and American Express. So could this competition lead to better deals for consumers, or should we brace for a bump in fees?

Mike Mills (Host) | 00:10:58 to 00:11:18

Okay, so let's look through all the sunshine and rainbows in this story and see what this can really mean for consumers. So this merger could be a turning point of how we all use and benefit from our credit cards. On one side, we might see a surge in reward programs that will have us racking up points like it's a sport. But on the flip side, less competition could mean that we're coughing up more of those reward benefits and not getting anything in return. So ultimately, what's the bottom line?

Mike Mills (Host) | 00:11:18 to 00:11:42

Well, this merger isn't just corporate chess, you see. It's a game where all of our wallets are on the line. Two of the largest credit card names in the business are trying to join forces and compete against Visa, Mastercard and American Express for processing and consumers. So now we're basically down to four companies that you can choose to process and manage credit card transactions, like how you have four or five companies that run all your food production. Like how you have four or five companies that run all your media.

Mike Mills (Host) | 00:11:42 to 00:12:04

Like how you have four or five companies that run most, if not all, of the banking sector. Our system here in the US has led to and allowed consolidation and less competition from the little guy. And this is just another example of further consolidation of an industry that already has a pretty good monopoly system in place. So to even mention the idea that this is going to be somehow good for consumers, I laugh. Let me know how that works out, because I ain't buying it.

Mike Mills (Host) | 00:12:04 to 00:12:22

Ultimately, the name of the game here is the more we know, the better we can play. And in the rigged financial game that we all play in being prepared and in the know is half the battle. And just remember, in the grand casino of banking, the house always wins. So capital one always asks, what's in your wallet? Well, my guess is, ultimately less money, just like always.

Mike Mills (Host) | 00:12:22 to 00:12:38

All right, moving on. Now, check this out. In a year of unprecedented challenges, high rates and unaffordable housing, how the hell did first time homebuyers come out on top? Well, housing wire shed some light on this surprising 2023 stat. So in an unprecedented year, first time homebuyers made significant waves in the real estate market.

Mike Mills (Host) | 00:12:38 to 00:13:12

According to Housingwire, a staggering 55% of agency purchases, which is Fanny, Freddie and Jenny, which is like FHA and USDA mortgages, along with conventional loans, these are what they call agencies. Well, in 2023, the majority of these loans were taken out by first time homebuyers, as reported by Intercontinental exchange Ice. This is MBS data, so this marks the highest share in the decade that ice has tracked the metric. Even with rising home prices, increasing down payments and fluctuating interest rates, this trend highlights a turning tide in homeownership accessibility. The shift suggests a growing optimism among first time homebuyers navigating through the complexities of a challenging market.

Mike Mills (Host) | 00:13:12 to 00:13:35

So first time homebuyers made up 55% of agency purchases in 2003. This is a record high, and a significant 47% of these were conventional loans that were used by first time homebuyers. That's a big deal. A lot of first time home buyers gravitate to the FHA product. Now, the market was dominated by purchase lending instead of refinances in 2023, making up 80% of the low number of originations because there weren't a lot of loans done, but they were 82% of those.

Mike Mills (Host) | 00:13:35 to 00:14:05

The market conditions, including record high prices, rising rates and these all presented challenges for buyers and first time homebuyers faced higher debt to incomes, especially for conventional mortgage at 31.2%. All this with mortgage rates closing out February at 7%. So in a market that's been anything but forgiving, the resilience of first time homebuyers is really kind of remarkable. Despite the uphill battle against rising prices and tougher lending standards, their share of the market has really gone up dramatically. This does tell us something kind of powerful about the enduring allure of homeownership and the determination of new buyers to make it their reality.

Mike Mills (Host) | 00:14:05 to 00:14:36

So regardless of what the corporate media is telling you about the younger generation preferring to rent and not being tied down, I think the desire to own your own piece of this planet is still very strong, especially for younger families starting to have kids and wanting to get out of the city. Now, it is true that family formations are starting later in life than they used to, and people are having less kids, and that's another issue for another day. But the human being's desire to own something for themselves is not diminishing. In fact, it's pushing through even during a time of unprecedented unaffordability. So kudos to the kids out there, quote, living the dream, as they say, because the dream is getting harder and harder to live.

Mike Mills (Host) | 00:14:36 to 00:14:53

But they keep finding a way and will be rewarded with equity and wealth later because they started now. You guys remember when avocado toast was blamed for millennials not buying homes? It was a whole social media explosion about some guy that said it over in Europe somewhere. Well, it turns out that all they needed was a little time and a little push and maybe a little less. Avocado toast.

Mike Mills (Host) | 00:14:53 to 00:15:06

Even that's crazy expensive these days. All right, let's dive into today's meat and potatoes. Okay, so all you agents out there that are still hesitant to get on this train, do you think you're too late to make a splash on social media? Well, think again. It's never too late to start.

Mike Mills (Host) | 00:15:06 to 00:15:31

And today I'm going to show you strategies that can turn your profile into a lead generating powerhouse if you just try. So last month, housing wire featured an article by Emile Le Plantier. I totally butchered that, but that's her name. So in the article, realtors are given a roadmap to mastering social media marketing in 2024. The article emphasizes the importance of building a personal brand and generating leads through social media with strategic planning and the use of both free and paid tools.

Mike Mills (Host) | 00:15:31 to 00:15:54

Some of our key strategies include creating scroll stopping hooks, focusing on storytelling, and the power of daily content creation to build trust and engage potential clients. All right, so here's some stats for you right now, 63% of Realtors use social media to promote just their listings. Now that's only for their listings. And only 26% of Realtors use YouTube at all. But 59% of realtors agree that social media is very or somewhat valuable.

Mike Mills (Host) | 00:15:54 to 00:16:21

However, 96% of homebuyers search for their dream home online and knowing that only 30% of realtors use social media management tools on a daily basis. However, 80% of real estate agents plan to grow their business using social media this year. They plan to, all the while reporting that 38% of their business, over a third, not quite a half, but over a third of their new clients came specifically from social media. Okay, so what are the eleven steps? Well, first we start with strategic planning.

Mike Mills (Host) | 00:16:21 to 00:16:44

Okay, so I cannot say enough about planning. If you wake up in the morning and you don't have a plan for your day, then your day and everything else will plan it for you. I really want to emphasize the one step at a time approach. Don't sit down one day and plan out a month of social media posts with each platform and video type, especially if you haven't done it before. All you need to do is start with a plan to do one video, only one, or one post.

Mike Mills (Host) | 00:16:44 to 00:16:57

So just ask yourself, what am I going to post, where am I going to post it and when am I going to post it? That's it. Think about it on Sunday for 30 minutes, put it on your calendar for Monday, and then just do it. Then Monday afternoon, sit down and plan the same thing for Tuesday. That's how you start.

Mike Mills (Host) | 00:16:57 to 00:17:16

Simple and easy. So step number two is the importance of your personal brand. So the article stresses the importance of building a personal brand on social media, noting that 58% of people are willing to pay for services for someone with a strong personal brand. So what does this mean? Well, it means you need to know who you are and more importantly, who your clients are and where they can find you.

Mike Mills (Host) | 00:17:16 to 00:17:34

If you haven't thought about this, it might even be step one. Although I would argue you don't need to know this to make your first post, just post and figure it out. But at some point, you need to figure out what value you are selling and who you are selling it to. That is your brand. So step number three, prioritizing reputation over reach.

Mike Mills (Host) | 00:17:34 to 00:18:05

The article suggests that focusing on building meaningful connections with your target audience rather than chasing viral fame, ensuring that your content is relevant and engaging to those in your farm area. Basically, it's saying that you don't need to focus on how many views, likes or comments you're getting. Focus on using your content to reach people that you already know and that already trust you by trying to interact with them in meaningful ways as much as possible. That is how you use social media to get leads, not from strangers, but from people who are already in your sphere that know and trust you. Number four, scroll stopping hooks.

Mike Mills (Host) | 00:18:05 to 00:18:36

So this highlights the significance of crafting compelling hooks that make potential clients stop and engage, indicating the power of curiosity and providing valuable answers to questions that they may have. So if you're in video mode, the first 3 seconds of your video are the most important part. If you want people to listen to what you have to say, you have to make them stop scrolling and introducing yourself and your brokerage or your company is not the way to do that. Ask a question, tell a joke, say a shocking statement, whatever you can do to get them to stop and listen, then and only then will you have permission to share your knowledge with your audience. So stop the scroll.

Mike Mills (Host) | 00:18:37 to 00:19:01

Number five, the power of storytelling. Though this underlies storytelling as a crucial strategy, with stories being remembered up to 22 times more than facts alone, thus enhancing the know like and trust factors significantly. Look, everyone loves a crime drama, the buildup, the characters and the story. So use this in your videos. Obviously you can't tell a novel to them in a 1 minute video, but people love to hear what happened to you today, or what happened to your client and how to avoid it.

Mike Mills (Host) | 00:19:01 to 00:19:23

Or the funny story that you heard that you just wanted to share with everybody? This is all the same thing. And that can be done in a 1 minute video. Number six, daily content creation so the article advocates for the creation of content on a daily basis to build familiarity and trust, offering a variety of content to showcase expertise, personality, and real world successes. Remember when you were a kid growing up and you knew that full house came on every day at 07:00 p.m.

Mike Mills (Host) | 00:19:23 to 00:19:40

On Friday and the family was there and ready to watch because if you weren't, then you missed it. Social platforms want this as well. If you make a video every once in a blue moon, your reach will be much less than if you make one every Monday at 10:00 a.m. Be on your schedule so your audience knows when to look for you. You could do it every day at 05:00 p.m.

Mike Mills (Host) | 00:19:41 to 00:19:59

Whatever your frequency or schedule, stick to it and make it a regular thing. This is going to get you the best reach possible. Number seven, optimizing profiles for conversion the article suggests optimizing social media profiles with clear contact information and engaging content to encourage potential leads. To connect this is 101 stuff. If you don't have a link tree or similar service, then get it.

Mike Mills (Host) | 00:19:59 to 00:20:17

There's a free version and a basic one that's like $5 a month. That's less than a Starbucks. If people can't find your email, phone or social media profiles to find out who you are, they will not call you, especially Gen Z and millennials. Their mama may have referred you, but if they can't find you on Insta, they ain't calling you first, they may call you second. Number eight, creating a content calendar.

Mike Mills (Host) | 00:20:17 to 00:20:48

So it's saying to plan a content calendar to ensure a balanced mix of posts that build like know and trust factors with your audience. Now, once you're posting and posting with a purpose, this is where true planning comes into play. Put your calendar together and make it a priority, and that will take away the excuses as to why you aren't doing it. You do have the time, you just aren't prioritizing it for this, you're giving it to something else. Number nine, leveraging free and paid tools so it highlights use of tools like Capcut, buffer and coffee and contracts to streamline content creation and improve efficiency.

Mike Mills (Host) | 00:20:48 to 00:21:13

Tools make any job easier, but learning how to use the tools is most important, especially if you're paying for something. So again, I recommend you take the one step at a time approach here as well. Learn how to post a video on Instagram using the camera roll and whatever other tools that the platform offers. Then once you master that and want to start editing, go get the free cap cut version and use it for a while. Then when you get better at that, you can get the paid version that open up all the extra little content pieces that you didn't have with the free version.

Mike Mills (Host) | 00:21:13 to 00:21:39

Then, when you're ready to get some brain storming and need some more content ideas, go pay for a service like coffee and contracts, which hands you basically content to post on a daily basis. Or learn how to use Chat GPT to generate content ideas. I can show you how to do that, by the way, but one step at a time. Number ten, the content of your video matters, so it stresses the significance of video content and building trust and engagement as it allows for eye contact and personal connection. This goes back again to who you are and who you want your audience to be.

Mike Mills (Host) | 00:21:39 to 00:21:50

This is going to help you tailor your content. But first, just post stuff. And when you get to the scheduling content part and using tools. That's where all this comes into play. You want to advertise to first time homebuyers, do first time homebuyer content.

Mike Mills (Host) | 00:21:50 to 00:22:03

If you want to advertise to veterans, do veteran content. It's pretty simple. The last one make sure you have variety. So the article encourages posting a variety of content types to appeal to different audiences preferences and increase your reach and engagement. It's basically saying just mix it up and try it out.

Mike Mills (Host) | 00:22:03 to 00:22:12

Don't get stuck on one thing unless it works. So what platforms you got here? Facebook. It's the number one for realtors. It's the dominant platform for reaching transaction ready buyers and sellers.

Mike Mills (Host) | 00:22:12 to 00:22:26

70% of us adults use Facebook, with a significant portion over the age of 35. Those are the buyers. Instagram it's a younger demographic. It's great for building a personal brand and educating buyers and sellers. It's a similar user demographic to Facebook in the 35 to 44 range.

Mike Mills (Host) | 00:22:26 to 00:22:46

LinkedIn this is best for connecting with high income professional and relocation leads. There's a lot less competition for realtors on LinkedIn, by the way, making it a little easier to stand out. YouTube it's the number two search engine on the planet behind Google, and it's also owned by Google. If you're not on YouTube, you might as well not be on the Internet. It is ideal for reaching first time homebuyers with neighborhood guides and market predictions.

Mike Mills (Host) | 00:22:46 to 00:22:57

You can do property tours and educational content out the wazoo. TikTok its rapidly growing user base in the 35 to 45 age range. Everybody's on TikTok. We all spend our time on there. Whether you'd want to admit it or not.

Mike Mills (Host) | 00:22:58 to 00:23:13

It's more of a focus on entertaining and behind the scenes stuff and humorous content. So get a little wacky. Have some fun with TikTok, but get on there. And finally, X, formerly known as Twitter. Though this is useful for curating content and networking with influencers, it's a little less effective for direct marketing due to its limited local targeting.

Mike Mills (Host) | 00:23:13 to 00:23:29

I use X for news and to find out what's going on in the market. I really don't do a lot as far as marketing there is concerned, and I don't think it's very useful for that. If finally, here are a couple tools. Capcut if you don't have capcut or don't know what it is, go check it out. It's a video editing tool with professional features and a user friendly interface on your phone and on the web.

Mike Mills (Host) | 00:23:29 to 00:23:44

There's a free basic version that's available and so it's accessible to anybody that wants to access it. And you can use it to create content for pretty much any platform. There's a platform called buffer. So buffer is a social media scheduling tool that automates posting across various platforms. So you can put one video onto buffer and it will post it across your platform.

Mike Mills (Host) | 00:23:45 to 00:24:01

It has an AI assistant and a landing page builder. So if you want to build a website, you can build one there too. And there is a free version, making it a very cost effective option for realtors to learn how to use before you get into the paid version. Finally, coffee and contracts. So what coffee and contracts does and other similar platforms, it basically creates content for you.

Mike Mills (Host) | 00:24:01 to 00:24:24

Designed specifically for realtors. They have templates, they have scripts for social media posts, reels, stories and more. It is a subscription based service that's aimed at amplifying social media marketing specifically for real estate professionals. So there is a cost in there, but I would say definitely use that if you've gotten to a point where you're posting and you just need more stuff to post. Look guys, the real estate market is and has been witnessing a significant shift towards digital first interactions.

Mike Mills (Host) | 00:24:24 to 00:24:57

Not just digital interactions, digital first. And this is making the insights from this Housingwire article more relevant than ever. In my experience, the power of social media in real estate isn't just in lead generation, it's in creating lasting relationships with clients and staying in front of as many people as you can, as often as you can. The main point I want you to take away from this is if you aren't doing something on social media, you need to start like yesterday. And if you are doing something on social media, then it's time to systemize and plan it out so you can utilize the best of your ability and not just passively post without a goal in mind.

Mike Mills (Host) | 00:24:57 to 00:25:12

This is how you make the most of the time that you spend on it and make it pay off for you and your business. And remember, take it one step at a time. Plan, post, plan again, post some more, and so on and so on and so on. Who knows, maybe your kids might even think you're cool. Probably not.

Mike Mills (Host) | 00:25:12 to 00:25:21

But I can dream. Can I? Well, that's all for today, my friends. Thank you for sticking around on this real estate roller coaster that we're all holding on for dear life. The good news is that you are not alone.

Mike Mills (Host) | 00:25:21 to 00:25:36

There are people struggling out there and there are people thriving out there, but we are all just doing the work. And as long as you can keep doing the work, good things will come. You have to believe that. Otherwise, what are we all doing here? So do me a favor and join me on Thursday this week as I welcome Chris Handy to the podcast.

Mike Mills (Host) | 00:25:36 to 00:26:03

So Chris is going to be shedding light on the mysteries of reverse mortgages. Now, why do you need to know about these reverse mortgages? Well, as I've learned myself very recently, reverse mortgages can be the key to unlock all kinds of ways of buying homes, not just for the boomers that will be affected by this, but for their kids as well. And with the massive equity in the market right now and an aging population that will all qualify for these loans very soon, this could be the key to your business for the next decade. So tune in and mine a little gold with me.

Mike Mills (Host) | 00:26:03 to 00:26:21

And please remember, if today's episode was helpful at all and you didn't fall asleep too quickly, please share this with a friend. We love helping as many people as we possibly can and growing our little Texas real estate community. So share the love. So thanks again for sticking around. Until next time, be great humans and keep grinding, because life is what you make it.

Mike Mills (Host) | 00:26:21 to 00:26:22

So make it great. See you next week.