Should you buy down your mortgage? The Real Word

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Byron Lazine and Nicole White are two agents in Connecticut who give us their thoughts on the week’s news every Friday in “The Real Word,” a weekly video column on Inman.

This week, Lazine and White discuss how much homebuyers are paying upfront to buy down their mortgage rate, how to spend $3,000 on your real estate business, and the test run of Biden’s re-election message in the State of the Union address. 

Why does it make sense right now to buy down the mortgage rate?

While interest rates continue to rise, over 6 percent now, paying down a mortgage with a larger down payment is becoming more attractive to buyers, and more seem to be doing it. 

Looking at the option of buying down the mortgage can make sense for a long-term move, White said. However, affordability is best and buying within your budget is better than buying down a mortgage to afford the monthly payment.

What are some effective ways to spend just $3,000 on your business to make a difference? Lazine and White weigh in on some advice given to agents. 

1. Prospecting for new leads

First, if you only have $3,000 to invest in your business, then here’s a wake-up call: That isn’t enough. If that’s all you have, then you should partner with the right team or brokerage that can invest in your business, Lazine said. 

Although targeting people in local neighborhoods is fine and even a great idea, with a limited budget, it’s not going to get you very far. Instead, focus on purchasing a dialer, and pair that with sweat equity to get the most out of your money, White and Lazine advised. 

2. Nurturing relationships with clients

What if you don’t have 200 past clients to nurture? Host buyer seminars, Lazine said, maybe host them in a neutral location where people feel comfortable. 

Using social media is also a great way to nurture relationships without spending cash, White said. Do more than just comment on general posts too; send direct messages when something happens in your client’s life. 

3. Upgrading your tech

“This is the biggest racket I’ve heard in a long time,” Lazine said upon reading that upgrading tech is a smart way to use $3,000 to invest in your business.  

Upgraded tech isn’t going to make a measurable difference in your business, he remarked, and staying in business is the goal. 

Left, Middle, Right

During the State of the Union address, President Biden did a test run for his re-election message, as well as his thoughts on inflation and plans for the future while in office. If you can’t stay up to watch such an important speech, as a real estate agent, it’s important to be informed about what was said and check out the transcript the next day, Lazine said. 

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