Home prices and Interest rates are at an all time low and, apparently, the real estate industry is at an all time slump. However, isn’t the Real Estate industry a never-ending cycle of good and bad? It’s just takes some preparation and research to make a timely decision on the best investment for the consumer and the best opportunity cost for the agent. The way that the economy goes up and down isn’t something that we can get used to changing effectively anytime soon, but we can train ourselves to work with what we have.
So, we have a secret for you – with all these low prices and low interest rates banks are promoting, find your niche and sell it. Wait a second, didn’t Sue Adler, #1 Keller Williams New Jersey Agent say it’s not about the sale, it’s about the relationship?
Yes, indeed she did. That’s why we are going to share why it’s important to build your relationships with first time home buyers. These are a few key points to consider:
- First Time Home Buyers tend to spend 12 – 18 Months of research before approaching an agent. (See Webinar)
- Purchasing a home is a life changing event, so build a life changing relationship
- Educate and Demonstrate your knowledge through time and counseling
- Risk losing money to increase profit in the future
- Assist these potentials in improving their credit score before pre-approval.
According to MSNBC, rent is rising and now is the time to buy. However, just because we know this doesn’t mean the buyers do. Promote an open house for interested future first time home buyers where they can talk to you and learn more about their local market and what the trends are. Maybe only a few people will show up — or maybe several will — but if nothing else, you have made some effort and will be remembered as the agent that wants to educate and consult. If you could set aside time once a month to educate local interested first time home buyers it will be obvious that it’s about the buyer and not just the sale. They could follow up with you in a year and also increase your prospects if they refer you!
As an agent it’s always a plus and comforting to know that an interested buyer has been pre-approved because:
- You have assurance that you aren’t wasting your time
- The buyers know where they stand within their budget
Is it always necessary though – what if you had the opportunity to be their guiding light to improve their credit through this next year? You, the agent that will eventually be a part of this life changing event could assist them in learning about their credit score and help them take steps to improve it. The mortgage lender you often work with may even want to be a part of this new relationship and offer valuable resources to them. Show these potentials the buy vs. rent mortgage calculator and provide time and patience with their questions.
Now, we all know you aren’t in business to consult, you are in business to sell. So, it’s okay so set a time for your meeting and follow up via email. These potentials shouldn’t take advantage of your consulting and hold you down for hours at a time, and if they do so, you will need to decide if the opportunity cost is worth you taking time from current ready home buyers.
Again, just remind yourself that every month you should take time to promote yourself as the educator. Also be sure to promote the industry as whole by emphasizing that, it’s the time to buy! This could really impact your profit and sales in the near future.
Evaluate your prospect lists and decide how you will move forward in 2012, being proactive for 2013 or reactive for your next closing sale. All of these tactics are successful, but which one can you make better?