“LeRoy, I really enjoyed your class last week and am working a little at the time to implement what I learned. Thank you so much for so much information." - Elizabeth Abernathy, ABR, CRB, CRS, GRI, SRS, Broker/Owner - Parr & Abernathy
If someone had told me during the 1980’s real estate crisis that we would have another terrible real estate market in 2011 but with interest rates around 4-5%, I would have thought they were NUTS. In that market I was buying $1,000,000 blocks of money to make loans at 13%, customers were standing in line to get the money, and sellers were happy to pay the discount points. Home prices were flat in the 80’s, and while we still built new homes, appreciation was a big zero! The group that made the difference in pulling us out of those difficult years was the first-time buyers. They had the same impact in the early 90’s, and today they are the largest buyer group we have.
Here are some facts about first-time buyers, and if you think I’m trying to sell you on the idea of having a first-time buyer target market, I AM.
More than 1 in 3 buyers are first-time buyers.
They can get down payment money because 27% of them received a gift from friends or family to help buy a home.
In most real estate markets across the country, there is no shortage of properties to sell. Sure, there are specialty properties that sell like hot cakes, and there are isolated markets and price ranges that are in a sellers’ market, but most salespeople today are working in a market that is defined as “slow” (typical of a buyers’ market). It’s easy to get into a rut in a slow market by using the same sales techniques over and over and expecting a different result. Einstein said this a little differently and labeled it INSANITY, which it is, and we all do it.
The key to making sales in a slow market is finding those buyers! After all, they’re very likely to buy given these rock bottom interest rates and the abundance of properties available, so this blog is written with the objective of giving you techniques that work with the hope that you will try them out.
Make a Video. Customers love videos, and inexpensive, high-quality cameras available, they are easy to make and don’t have to be professionally done. One video possibility is a full motion video, which is a walkthrough of a listing in which you talk as you walk. Another option is to record yourself talking about a subject like the home-buying process, or you can have a recent customer talk about their experience in buying a home. Of course, these should ALL be posted on your website! Send links to them in your emails and add them to your business page on Facebook.
One note: whatever you do, don’t make a “hard sell” video talking about how great you are or how great a listing is. What customers want is information, not sales. Take a look at this example of a strong video directed at first-time homebuyers made by Sam Miller, who is one of America’s best: http://www.youtube.com/watch?v=WUtvfNZIwx4
Weekly Hot List. Buyers want to know about new listings that are in perfect condition, priced at or below the market, or a SUPER DEAL! So why not compile a dated list of those properties and distribute it weekly via social networks or email and post the list on your www? Don’t hype the properties – just give the facts. Naturally, these don’t have to be your listings, but they are HOT SELLING OPPORTUNITIES!
Buyers List. Have a list of buyers who are looking for the right house, at the right price, in the right location, who are pre-approved for a loan and ready to buy. You can put them and their requirements on your website, send the list via email, or post it on your Facebook business page. Refer to the buyer on the list by a code, i.e. “Buyer ix218, moving here from Richmond, VA, looking for 3 bedrooms” etc. You can get additions to this list from your Open House visitors, and don’t be surprised if you get calls from people wanting to be included on the list or from expired sellers who have a home that fits the description. This is a great expired seller technique. Also, to have even greater impact, present this list on a video!
The most frustrating times in my sales career have been those times when I was working hard and doing things right and absolutely nothing was happening. Unfortunately, there are zillions of salespeople and companies large and small that have this same experience, and seldom is the solution found in “working harder,” but is usually found in working smarter with the “smarter” part is being found is doing something new or different. I hope some of these ideas will find their way into the Smarter side of your work. We are now posting daily MINI blogs so visit us when you can and call us when you need us. LeRoy
This is a picky time to buy a home! There are more houses for sale than buyers to buy, and on top of that there are more sellers – including builders and homeowners – who are desperate to sell what they have. Buyers can afford the time and effort to be PICKY. It is not only picky about price that drives salespeople crazy, but picky about products, condition, appearance, etc, etc., ad nauseam. The urgency to buy is missing in most markets, as prices are stable or falling and there are plenty of homes from which to choose, so PICKY is IN.
It seems that the PICKY group driving some salespeople crazy is the passel of first-time homebuyers who want everything to be perfect (don’t we all?). In most areas they can have it that way because they are such a large group and demand attention from all of us. First-time homebuyers are the largest buyer segment in residential real estate, accounting for approximately 50% of the homes SOLD in the past 12 months, and because of this their motivations are worth noting.
They love new homes.
The attraction to new homes is that they are close to being perfect and no repairs are required. Many of these buyers live in apartments which have all of the amenities and extras you would find in a new home, so in many instances a resale home may be less desirable than Read the rest of this entry »
In most real estate markets across the country, there is no shortage of properties to sell. Sure, there are specialty properties that sell like hot cakes, and there are isolated markets and price ranges that are in a sellers’ market, but most salespeople today are working in a market that is defined as “slow” (typical of a buyers’ market). It’s easy to get into a rut in a slow market by using the same sales techniques over and over and expecting a different result. Einstein said this a little differently and labeled it INSANITY, which it is, and we all do it.