Will Tariffs Make It Harder for Your Buyers to Compete?

By Florin Patrascoiu

Florin Patrascoiu, with his impressive 27-year tenure in the real estate sector, has established himself as a broker/owner who is not just successful in his own right, but also deeply committed to elevating the success of other real estate agents. At the helm of a high-achieving RE/MAX firm, Florin's leadership is defined by his passion for mentoring agents, helping them significantly increase their production and run thriving businesses, regardless of market conditions.

Are your clients still waiting for lower prices or better rates? That wait could cost them. President Trump just announced new tariffs: 10% on most imports and 25% on foreign vehicles. At first glance, this may sound like political news, but it’s not. For us as real estate agents, it’s critical market information. These changes affect construction costs, mortgage rates, and buyer behavior. Let’s break it down.

Homebuilding costs are going up. About 10% of building materials in the U.S. are imported, including things like Canadian lumber and Mexican drywall. These are basics for new construction, and with these new tariffs, those materials just got more expensive. Builders are already preparing for $7,500 to $10,000 in extra costs per home—that’s before we even think about labor or shipping issues. If your buyers are waiting for new construction deals, they need to hear this. Prices are going up. The sooner they act, the better.

Rates could stay high. Many buyers are still holding out for 3% mortgage rates, but that may not happen soon because tariffs often lead to inflation. And when inflation rises, the Fed holds off on cutting rates. That means we could stay in the 6% to 7% range longer than anyone wants. Waiting doesn’t help your buyers; in fact, it could hurt them. They risk losing buying power as rates and prices rise together.

This is a leadership moment. Right now, many agents are reacting to the news, but the best agents are leading through it. It only means one thing: This is your time to step up. Clients are looking for answers, and they want guidance. If your team isn’t giving you the tools or support to handle this shift, you’re left figuring it out alone, and that’s not okay. You deserve better, and your clients do, too.

If you want to be part of a team that’s thinking ahead, let’s talk. We’re helping agents lead with clarity and confidence even in an uncertain market. Call or email me to book a quick 1-on-1 strategy call. We’ll talk about your goals, your challenges, and how we can help you grow your business right now and into 2025. I look forward to talking with you!