Every time I get the news that I didn’t get a listing I am faced with a number of emotions and questions.

“Was I not good enough?”

“Was it something I said?”

“What could I have done differently to secure the listing?”

“Did they not like me?”

That’s the reality of being a Realtor in a highly competitive industry. There are a lot of really good agents, and even though I am ranking in the top 2% nationally with my company, it doesn’t make it any easier to lose a listing.

When I got home last night, I was talking to my wife about the fact that another seller told me they were going with someone else. Her response blessed me greatly.

She reminded me that God is always in control and that His plans are perfect. Those are things I already know, but to have my wife remind me was a blessing. I work hard to provide for our family, and when I don’t get a listing or make a sale, there is a part of me that feels like I’m not good enough as a husband and provide.

The reality is quite different, however. My performance at work is not where I need to be good enough. Work is what I do, it is not who I am.

This week, even though I got the bad news, I did get good news. I did secure two new listings that will be going on the market soon.

The blessing is that God has the right sellers and buyers for me to work with. The blessing is that my wife loves me for who I am and not what I do. The blessing is that, when I lose a listing it’s usually not going to be a good fit (for any number of reasons) and may have not been successful.

The blessing is that I can trust God has a perfect plan for me and I can move on with confidence and hope that things are going to be perfect.

So today, I pick myself up, realize I am greatly blessed and I move on. That is a blessing.

___
If you are in the real estate industry and would like to hear more from Aaron Zapata, subscribe to his newsletter today.

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Real Estate in 2024 had significant challenges with high interest rates, inflation, elections, low inventory, and real estate commission lawsuits impacting many individuals.

Despite the industry experiencing sales at their lowest levels in over two decades, I have had the privilege of being part of an exceptional team of top producers at REAL Broker over the past year. Their support and drive for excellence have propelled me to achieve one of my busiest years yet.

Most agents and homeowners have not heard about REAL Broker. That is because they operate primarily in the background and support teams and agents behind the scenes. As a company, REAL Broker truly values and rewards excellence among its agents.

As a publicly traded entity, REAL Broker has the unique ability to grant stock rewards to its Elite Agents, which creates a shared commitment to success. The Elite Agent status is only granted to approximately 2% of the 26,000 agents nationwide.

In December, I was notified that I have attained the prestigious Elite Agent status. Praise Jesus!

As a result, I received a substantial stock award and a cool new North Face Jacket! I also received a cool badge in our company app too.

To all those who have entrusted me as their agent or referred my services, I extend my heartfelt gratitude. Your support has been instrumental in my success, alongside the unwavering assistance of the IMPACT Realty Group, my esteemed colleague Todd Anderson, and our dedicated vendors.

Attaining Elite Agent status is a true honor, and I attribute my success to Jesus, whom I praise and give all the glory.

For agents seeking to join a team of top performers or aiming to secure a prosperous future for themselves and their families, I invite you to connect with me.

Thank you to everyone for your support and encouragement!

I’m looking forward to a great 2025 and will be here to support you.

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1. The Fallacy of Conventional Assumptions

For years, it has been widely believed that as interest rates increase, property values decrease. This assumption is based on the notion that higher interest rates reduce buyers’ purchasing power, leading to decreased demand and ultimately lower property prices. However, the reality is proving to be quite different.

2. The Unraveling of Supply and Demand Dynamics

Despite rising interest rates, the demand for properties remains strong. Qualified buyers are still entering the market, competing for the limited supply of available homes. This scarcity of listings is a result of multiple factors, with one prominent reason being homeowners choosing to stay in their current homes due to historically low interest rates obtained during the lockdown period.

3. The Unexpected Effect on Sellers’ Decision-making

The low interest rates prevalent in recent years have encouraged homeowners to refinance their mortgages, resulting in fewer properties hitting the market. Many sellers, despite their desire to upgrade or downsize, are deterred by the significant payment difference caused by the gap between their current low-rate mortgage and higher interest rates. As a result, they opt to stay put, further exacerbating the supply shortage.

4. The Opportunity Amidst Challenges

While the situation may seem challenging for both buyers and sellers, there are opportunities to be found. If buyers can afford the increased payments, purchasing a home now may prove beneficial in the long run. As interest rates decrease in the future, the value of their newly acquired property is likely to appreciate, and refinancing becomes a viable option. It’s crucial, however, for buyers to carefully assess their financial capacity and avoid overstretching or overleveraging.

5. Potential Factors for a Quick Market Correction

A quick correction in property prices is unlikely to occur solely due to interest rate fluctuations. Instead, external factors like a recession, job losses, or large-scale relocations may drive a significant increase in inventory and create a buyers’ market. However, such scenarios typically involve events beyond the scope of the real estate market itself.

Conclusion

The relationship between rising interest rates and property values is more complex than conventional assumptions suggest. While higher interest rates traditionally implied lower property values, the current market dynamics challenge this notion. Understanding the impact of supply and demand, as well as the decisions made by sellers, is essential for buyers, sellers, and realtors seeking success in today’s real estate market. By staying informed, assessing individual circumstances, and seizing strategic opportunities, all parties can navigate the changing landscape with confidence and achieve their real estate goals.

Check out my latest podcast on the topic HERE.

Learn more about me HERE.

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As realtors, we frequently find ourselves pondering how long various aspects of our work will take. We wonder how long it will take for a video or our social media efforts to take off. We question how long it will take to finish a presentation or to overcome our current challenges before moving on to the next task. It’s natural to be concerned about time, but it’s essential to embrace the mindset of a winner.

Grover’s statement resonates with me because it challenges us to shift our focus. Instead of fixating on the clock, winners concentrate on making progress until the job is completed. Whether you’re working on a project, building your website, or tackling any task, commit to working on it until it’s finished. Don’t give up, don’t ask how long it will take, and don’t be deterred by the potential timeline. Winners persevere.

The key to adopting the winning mentality is to remain unwavering in your determination. If you’re working on a project right now that needs to be done, give it your all. Pour your time, energy, and focus into it until it’s completed. Avoid the temptation to seek shortcuts or give in to doubts about the timeline. Winners understand that progress is made through consistent effort and unwavering dedication.

Are you building something for your website? Embrace the same mindset. Keep working on it, making improvements, and refining it until it reaches the level of completion you desire. Winners understand that the path to success is paved with persistence, not a clock.

So, here’s my encouragement for you today: Do what needs to be done and just keep going. Don’t let worries about time consume your thoughts. Instead, focus on the task at hand and give it your all. Remember, winners don’t concern themselves with the clock; they simply go for it.

By adopting the winning mentality, you can overcome obstacles, achieve your goals, and realize your true potential. So, stop worrying about how long something will take and start focusing on the journey itself. Embrace the power of perseverance, and you’ll be amazed at what you can accomplish.

Keep going, keep pushing, and keep winning!

Check out my recent video on the topic HERE.

Learn more about Aaron HERE.

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The Numbers – Moving from California:

To gain a clear understanding of the financial implications of moving from California, let’s consider a scenario where a homeowner in southern California possesses a house currently valued at $1.3 million. Assuming an equity of $600,000 and a loan amount of $700,000 with an interest rate of approximately 3%, the monthly mortgage payment for principal and interest is estimated to be around $2,340. Additionally, California property taxes, approximately 1.25% of assessed value, would add an extra $1,042 per month. This results in a total monthly holding cost of $3,082.

Comparing Tennessee and Texas:

If the decision is to move to Franklin, Tennessee, and purchase an equivalent home for $1 million, transferring the $600,000 equity from the California home would lead to a new loan amount of $400,000. Assuming an interest rate of 6.825%, the monthly payment would increase to $2,614. However, property taxes in Tennessee are lower, adding approximately $475 to the monthly costs. Combining mortgage and property taxes, the total monthly expense in Tennessee would be around $3,089, resulting in a cost savings of approximately $293 compared to California.

On the other hand, moving to Keller, Texas, with a million-dollar home purchase would result in a similar loan amount of $400,000. However, the higher property tax rate in Texas (2.26%) would significantly impact the monthly expenses. Property taxes alone would amount to approximately $1,883 per month, leading to a total monthly cost of $4,497. This represents an increase of $1,115 compared to California, making Texas a more expensive option.

Making an Informed Decision:

When considering a move from California, it is crucial to carefully evaluate the financial implications. The analysis shows that moving to Tennessee can offer a notable cost savings, particularly when purchasing a million-dollar home with existing equity. However, moving to Texas may result in higher living expenses due to the combination of mortgage payments and property taxes.

Conclusion:

Before making a decision to leave California, it is essential to conduct a thorough financial analysis. Consider factors such as mortgage payments, property taxes, and equity transfer to determine if the move will truly provide the desired cost savings. With a clear understanding of the numbers, you can make an informed decision about your relocation plans.

Check out my latest video to learn more! Learn more about Aaron HERE.

The post Is Moving from California Worth the Cost? appeared first on Aaron Zapata.

Here’s the video from the presentation.
https://www.youtube.com/live/5eQDrl5KJMM?feature=share&t=6701

More information can be found at: https://economicforecast.chapman.edu/

The post Chapman University Economic Forecast Shows Net Loss of 407,000 People For California appeared first on Aaron Zapata.

Understanding the Power of Intentionality:
Being intentional means being focused, strategic, and narrowing in on specific targets. It goes beyond merely hoping for things to work out and embracing a proactive approach that sets the stage for success.

Working with Sellers:
To maximize your efforts when working with sellers, it is crucial to focus on those who are motivated to sell. Additionally, building partnerships with companies that interact with sellers in advance, such as moving companies, presents an excellent opportunity to influence their decisions and gain a competitive edge.

Targeting First-Time Buyers:
In the current market, first-time buyers are actively exploring open houses. To connect with this demographic, getting them preapproved is essential. Establish relationships with lenders, banks, and credit unions to explore potential buyer referrals, amplifying your chances of closing deals.

Maximizing Sphere of Influence:
While mailers and emails play a role, actively asking for referrals from your sphere of influence can yield fruitful results. By fostering meaningful connections and encouraging referrals, you create a network of potential clients who come to you based on trusted recommendations.

Streamlining Marketing Expenses:
Cutting out non-producing advertising is crucial in a contracting market. Review your marketing efforts and eliminate any channels that don’t yield measurable results. This allows you to optimize your budget and focus on strategies that generate meaningful leads and conversions.

Investing Time and Effort:
Real estate professionals often underestimate the importance of consistent effort and initiative. By putting in the hours, coming in early, and staying late, you increase your chances of reaching more people and creating valuable connections. Engage in conversations, join groups, and explore new avenues to expand your network and amplify your impact.

Conclusion:
Mastering intentionality is a game-changer in the world of real estate. The insights gained from Impact Properties’ sales meeting provide a roadmap for success. By embracing intentionality, focusing on motivated sellers, targeting first-time buyers, maximizing your sphere of influence, streamlining marketing expenses, and investing time and effort, you can position yourself for growth and achieve your real estate goals. Remember, success in this dynamic industry requires intentional action. May this blog post inspire and guide you toward a thriving real estate career. God bless you on your journey!

Check out the video HERE.

For more information please go to https://aaronzapata.com/meet-aaron/.

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Right now we are seeing record low sales caused by a number of factors but the biggest factor is the amazingly low, once-in-a-lifetime interest rates snatched up by homeowners and home buyers during the pandemic.

As I talk with homeowners about selling, the number one reason I’m given is that they are not going to give up their low interest rates.

So here we are with very little inventory and no clear indication of when more inventory will come.

Of all my sales this year in Southern California nearly all of them have been from “must sell” situations involving death, disability, divorce, relocation for jobs, or investors selling their CA investments. The family that needs a bigger home that would normally sell and buy are hunkering down because they are now married to their rate, even if the home isn’t great.

I believe this is the new normal for the next few years unless something dramatic happens and we fall into a huge recession. Signs of that happening are on the distant horizon but it’s too early for me to tell.

No New Listings (okay a few, but not a lot)
Here’s a chart from the California Regional MLS showing the number of new listings in Orange County going back to 2008. You can see the number of new listings has been declining (I added the red line) . In May we saw a year-over-year decline of roughly 38%. More importantly the number of new listings in May 2023 is the lowest number of new May listings on the entire timeline.

Pending sales since 2008 have seen wider swings between the highs and lows, but four times since 2018 we’ve seen pending sales drop below 1,500 in any given month.

In the chart below, I have marked four places where the pending sales dipped to record lows. The first circle was December 2018 and I didn’t do any research to look into that one. The second circle is April 2020 in the middle of the nationwide shutdown and is an anomaly. The third circle is December 2022 and is a direct reflection of the rapidly rising interest rates in the 4th Quarter of 2022. Buyers, shocked but the rising rates backed off.

What is happening in May of 2023? In may we see a decline of 40% form the previous year. What is happening? The answer is simple, with fewer listings there are fewer sales. 

With fewer sales I expect to see an overall decline in the Southern California economy. Fewer home sales means less earnings for Realtors and Lenders, fewer trips to Home Depot and Lowe’s, etc. Real Estate sales fuel a significant portion of the economy here in SoCal and we are already seeing the effects. 

Realtors and Lenders need to tighten up their budgets and trim expenses. 

Homeowners looking to move can get a premium right now as buyers fight over the few homes that are available. We recently had two listings that received 20 offers each. 

Homebuyers need to sharpen their pencil, work with lenders and Realtors that have a track record of success and be aggressive if they want to get the home they love because with fewer options, home prices are climbing. 

The market is moving but we simply don’t have the same number of sales as we used to. 

How long will it last?

The best I can figure right now is that we will see this pattern for the next few years until the buyers who are buying today at higher interest rates are ready to sell and move. Because they are buying with higher interest rates, when they go to sell they won’t have the same “rate” sticker shock that the rest of us have.

Data from California Regional Multiple Listing Service as of 6/14/2023.
https://crmls.stats.10kresearch.com/infoserv/s-v1/52G4-Tbn
Used with permission.

The post Southern California Housing Market Analysis – Is The Real Estate Market Going To Crash? appeared first on Aaron Zapata.

Founded in 1971 as a single store in Pike Place Market, Seattle, Starbucks began its humble journey. It took them 11 years to hire Howard Schultz, who joined as the director of retail operations and marketing. Schultz saw an opportunity to expand beyond their single store and started providing Starbucks coffee to fine restaurants and espresso bars. This foray into the wholesale side of the market marked a turning point for the company.

Schultz’s pivotal moment came when he traveled to Italy and experienced the coffee house culture firsthand. He convinced the founders of Starbucks to test the coffee house concept, leading to the birth of a separate company in 1985. Within two years, this company acquired the original Starbucks store, changed its name to Starbucks, and embarked on a journey of growth.

The initial expansion was gradual, with 17 store locations established over the span of 16 years. However, the real transformation began in 1987 when Starbucks started its hyper growth phase. Over the next 11 years, the company opened a staggering 1,886 stores. The plan, processes, and structures they had meticulously developed allowed them to achieve rapid expansion.

Today, Starbucks is a globally recognized brand with thousands of stores worldwide. However, this level of success did not happen overnight. It took the company 27 years to reach 1,886 stores, while in just one year, they opened 1,843 stores. This remarkable growth highlights the power of building a strong foundation, refining processes, and consistently delivering value to customers.

As entrepreneurs, it’s essential to resist the pressure to achieve immediate hyper growth. Each business has its unique journey and timeline. Rushing growth without a solid plan and a focus on sustainable success can jeopardize the long-term viability of the company. Starbucks’ story reminds us that taking the time to develop a strong foundation and patiently build a brand pays off in the end.

While some businesses experience rapid growth, many others take the slow road to success. The key is to stay focused on the road ahead, making decisions that align with long-term goals. Choosing short-term gains over long-term profits can hinder a business’s growth potential. Strategic planning, thoughtful decision-making, and a commitment to long-term success will ultimately benefit your company.

If you find yourself on the slow road to growth, take heart and stay encouraged. Most successful businesses follow a similar path. Surround yourself with a capable team, work together to propel the business forward, and seek guidance and mentorship when needed. Remember, success is not solely measured by speed but by the positive impact your business creates.

As you navigate your own journey, remember that everyone’s path is different. Embrace the pace that works for you and your business, adding resources and expertise as needed. If you’re seeking guidance or mentorship, I’m here to support you. Feel free to reach out, subscribe to my newsletter, and share this video with others who might find it inspiring.

Stay committed, keep rowing, and believe in the immense potential of your business. Your time for growth and success will come. Don’t give up and continue on the path to achieving your dreams.

Learn more about Aaron HERE.

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The first postcard, featuring a picture of the property’s exterior and the sale price, included a QR code to watch a video about the sale. However, this approach did not yield the desired engagement. People were primarily interested in knowing the sale price, and the additional step of scanning the QR code proved to be a deterrent. Unfortunately, this postcard failed to generate any meaningful conversations despite the significant investment in its distribution.

Recognizing the need for change, I decided to take a different approach with the second postcard. This time, I chose an attractive interior photo of a similar property in the same price range. Instead of a QR code, I wrote a captivating story about the process behind the sale. I focused on a scenario where the initial deal fell apart due to repair demands but eventually led to a higher net profit for the sellers. This compelling story connected with recipients on an emotional level and provided them with unique insights they couldn’t find on popular real estate websites.

The impact of this revised approach was remarkable. While in a grocery store, a past client, friend, and vendor approached me, excited about receiving the postcard. He specifically mentioned the story of the sellers who ended up with an additional $15,000. This interaction demonstrated the power of storytelling in real estate marketing. By connecting emotionally through stories, we create memorable experiences that stimulate conversations and foster stronger relationships.

What made this second postcard even more effective was the multi-channel distribution strategy. In addition to sending out the postcard, I repurposed the same image and story for email marketing, a blog post, social media shares, and even a snippet in a YouTube video. By leveraging multiple platforms, I maximized the reach and impact of the story, ensuring that the effort put into crafting the marketing piece did not go to waste.

This experience taught me valuable lessons. Firstly, storytelling is a crucial component of successful real estate marketing. Emotionally compelling narratives help clients engage with your brand and create lasting connections. Secondly, it’s essential to constantly test and refresh your marketing strategies. What works today may not work tomorrow, so be open to change and adaptation. Lastly, consider diversifying your marketing channels to maximize exposure and engagement.

In conclusion, remember that effective real estate marketing goes beyond simple property information. Embrace the power of storytelling, test different approaches, and ensure your message reaches your target audience through various platforms. By doing so, you’ll captivate clients, foster meaningful conversations, and forge stronger connections. If you found this content helpful, please subscribe, like, and share this video. Stay tuned for more valuable insights, and have an awesome day!

Learn more about Aaron HERE

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