Tariff Tsunami, Open House Hacks & DPA Demystified
Tips for Realtors week of 3/11/25
Note: We will be back to our regular scheduled program. Storms last week, my better half had the flu this week, and clients needed help! Something had to shift around, but we are back in action on Tuesdays next week!
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Top Story: Tariff Tsunami: Will Housing Get Rocked?
Realtors, let's be real – new tariffs are looming, and they could shake up our market. These tariffs on imported materials could add $22,000 to new home costs (NBCDFW.com)!
This impacts everything from lumber to aluminum, squeezing buyers. The Wall Street Journal notes that these tariffs affect construction prices and the market (WSJ.com). If new homes become too expensive, it puts pressure on the whole market, potentially increasing inventory.
If builders can't build affordably, job losses could follow within the sector. The National Association of Home Builders (NAHB.org) notes that tariffs exacerbate supply chain issues.
What Can We Do?
Stay Sharp: Track tariff impacts - several news outlets are following this story closely.
Talk to Clients: It’s not about fear - it’s about education and being real.
Be Ready to Help: You may enter an era of your career where you need to learn how to sell homes quickly for struggling families (due to job loss) or be asked for recommendations for assistance you haven’t had to talk about before. TANF and several other programs are out there to help your clients who need assistance.
You are an advisor to people’s lives, not just a realtor. Knowing how to help folks sell quickly and understanding assistance programs is key.
These tariffs could hurt the progress we have made in the housing market. By staying informed, you will be THE resource for your clients (past and current).
References:
CNBC: https://www.cnbc.com/2025/03/04/how-tariffs-will-hit-the-us-housing-market.html
Wall Street Journal: https://www.wsj.com/economy/housing/trump-tariffs-home-construction-prices-housing-market-6549e974
Top Growth Tip: Open House Prep on a Dime: Under $100 Transformation
Not every client has a staging budget or wants to put in the work to get their home show-ready. Here's how to prep a home for an open house and make it shine without breaking the bank.
Yes, this could mean a little extra elbow grease, but that commission and review will be worth it!
1. Declutter Like a Boss (Cost: Free):
The Golden Rule: Less is more! Pack away personal items, extra furniture, and anything that makes the space feel cramped.
Clear Surfaces: Countertops, tables, and shelves should be almost empty.
Closets: Half-empty is the goal. Potential buyers will peek!
2. Deep Clean for Pennies:
DIY Cleaning Supplies: Bar Keepers Friend and other cleaning supplies are your best friends.
Focus Areas: Kitchen and bathrooms must sparkle. Windows should be streak-free. So many youtube and internet best practices - look them up!
Odor Elimination: Air out the house! Baking soda absorbs odors in carpets and fridges.
3. Budget-Friendly Curb Appeal:
Mow the Lawn (If Applicable): A well-manicured lawn makes a huge difference.
Sweep Walkways: Remove debris and leaves.
Front Door Refresh: A clean doormat and a quick wipe-down make it inviting.
4. Staging Secrets on a Shoestring:
Rearrange Furniture (Free): Maximize space and flow.
Borrow or Repurpose: Raid your own home or ask friends for neutral décor items.
$10-$20 - Fresh Flowers or Plants: Add life to key areas like the kitchen or living room. Trader Joe’s ALL DAY!
$10 - New Light Bulbs/Small Accent Tap Lights: Brighten dark corners and create a warm glow.
$20 - Scent Strategy: A subtle vanilla or linen scent is universally appealing. Avoid anything overpowering.
$25- new hand towels: Temporarily swap out bathrooms with a new look will bring the area to life.
5. The Finishing Touches (Almost Free):
Open Windows: Weather permitting, let in fresh air and natural light.
Soft Music: Playing calming instrumental music at a low volume through a small speaker downstairs can make a world of difference.
Cleanliness Check: Do a final sweep before guests arrive.
Something Tangible: Give them someone more than a card or cookie; give them a reason to remember their time with you!
Why This Works:
Buyers aren't necessarily looking for perfection. They want to see potential. A clean, uncluttered, and inviting space allows them to imagine themselves living there.
Top Lending Tip: Down Payment Assistance Programs Every Realtor Should Know
Spring is here, bringing new homebuyers to the market! A major hurdle? The down payment. Understanding down payment assistance (DPA) programs is crucial! Realtors, here's your guide.
Why DPA Matters
DPA programs make homeownership possible, and not just for first-time buyers, veterans, and moderate-income individuals. Guiding clients to these programs opens doors!
Key Types of DPA Programs
Grants: "Free money" that doesn't need repayment.
FUN FACT: There are programs where if you ever volunteered in the community, you qualify for the grant. Even if you are NOT a first-time homebuyer! Email me for more!
Second Mortgages: Loans with small payments to cover the down payment.
Deferred Payment Loans: Repayment is deferred until sale or refinance.
Forgivable Loans: Forgiven after a set timeframe.
DPA Sources: Lender, State, and Local!
Remember, DPA isn't just state-run! Check for programs through:
Your Lenders: Many offer proprietary DPA with competitive terms and low credit requirements!
Texas State Affordable Housing Corporation (TSAHC): Grants and mortgage tax credits.
Homes for Texas Heroes Program: Teachers, police, firefighters, and veterans.
Local Programs: Cities and counties often have DPA.
Negotiating with DPA in Mind: Your Expert Edge
Know Your Clients’ Requirements: Income limits, credit scores, and property and loan limit eligibility.
Craft a Competitive Offer:
Offer Price: Ask your lender for an AVM to confirm the value before making an offer.
Seller Concessions over Price Reductions! Analyze days on the market and negotiate strategically for seller concessions. Even though your client may be getting a down payment assistance, concessions can help with closing costs/fees.
Communicate with the Lender: Be sure they know the best ways to communicate with you. Your lender works for the client but needs you in their corner to keep things running smooth!
Be a Problem Solver: Stuck on something? Don’t be afraid to phone a friend to pick their brain. That is how all the greats get the job done!
Protecting Your Client's Best Interest
Transparency! If your client can’t tell you about their loan, be sure the lender knows so they can clear up any questions about how their loan works.
Avoid Overextending: No one wants to be associated with a transaction that is on the path to default the first year. Be real; be their advisor. It may hurt today, but you will build a fan for life. Even those who never end up buying have realtors they refer!
Seek Expert Advice: Interview your lender and learn everything they know so you can best guide your client when they are shopping!
By mastering DPA programs, you empower clients and build trust! Make this spring your best yet!
Quick Rate Reference guide for 2/25/2025: ⬇️
Due to the hot mess of storms last week, I wasn’t able to record rates - but we all know they dropped, and now they are hovering - and everyone in lending is prepping for one to two more dips coming up! 😊
IMPORTANT:
Rates on the internet are your IDEAL, MOST PERFECT client. How many of those do you really have?
If you need help understanding this layout, let me know!
This week's winner? Non-traditional lending. These rates are adjusting more in clients' favor. So, those people you know with complex or hard-to-qualify borrowers—let’s get them talking to a broker (like me at MyLendingPro.com!) and get them qualified!
Thank you for reading. If you haven’t connected with me yet, schedule a time on the calendar, and let’s talk!
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