Do you feel it? You know…the Real Estate market making a BIG SHIFT. The pendulum has surely swung the other way. For the last 3-5 years ever since the economic meltdown home values have dropped and many people lost their homes due to a foreclosure or short sale forcing them to rent. The market has hit the bottom and prices are starting to move upwards as the rule of supply vs demand has take affect. Thousands of people in the Northern Virginia/Washington DC area are renting. They are renting apartments, houses, condo’s and townhouses. Many of these people have good jobs and make a decent to great living. These consumers are young people in their 20’s but also consumers who completed a successful short sale or had a home go into foreclosure. The 3-5year statute has passed, their credit repaired and they can buy again! Yes, some of these people are first time home buyers, but they are also people emerging back into the arena of home ownership who have done this whole process before, therefore more familiar with what it takes to get into a home. That is what makes this demographic a great target when looking to expand your Real Estate Marketing and business.
Why Buy Now
That is a great question…why buy now? When buying a home you aren’t buying the sales price of the home…you are buying the mortgage payment. When a mortgage lender qualifies you for a home loan they do tell you what mortgage amount you are qualified for but that also depends on the payment and interest rate. Lower the rate, lower the payment, more house you can buy. Right now interest rates are at an all time LOW and after the Federal Reserve just guaranteed buying $40Billion per month in mortgages it will keep interest rates low for a quite some time. As a Real Estate agent it is your job to “get the word out” to your target market, sphere of influence, AND these Renters to let them know that if they are paying $2500 in monthly rent and they can get a similar property and have a $1850 mortgage payment…smart money says that is the direction to go. Not to mention the tax incentives of home ownership and other long term benefits of buying at the bottom of the market.
How to Target Renters
Targeting these specific people is important. At Stewart Title and Escrow we have the ability to get you “Qualified Renters” lists. These are people with a 640 FICO or higher and no late payments on their credit report in the last 12 months. What we do is help you with a more targeted approach vs the “Spray and Pray” approach where you send out a direct mail piece to a large, generic area and hope that you hit a few people that have an immediate need and they call you. The average consumer is not that educated on how to get a home loan, what it entails and why, and how to buy their first home. They will though go to the Internet and look for that information. If you are sending out a direct mail piece to our targeted list of renters I highly encourage that you use the direct mail piece as a vehicle to drive these renters to your WordPress website that has answers to their questions, and provides the renter with the information they are looking for. Video testimonials from other first time home buyers you have worked with would be a huge validation of your value. This will help you generate Leads. Another good idea is sending out a personal invite to the renters to a “First Time Home Buyer Seminar.” This way you can get face to face and convey your value.
How to Get Started
There are thousands of people in the immediate area that are “Qualified Renters.” Many are already looking online for your Real Estate services. They have questions about the home buying process and IF they should buy now or wait longer? Buy NOW right? This is a huge demographic that is ripe if you are looking to expand your Real Estate business. Buyers can be time consuming yes…but they also have long term benefits if you are willing to do the follow up marketing. These same buyers will be sellers down the road and hopefully you will be “top of mind” at that point.
If you are client of Stewart Title (or want to be) we can provide the lists you need to convey your message and value to these renters that need your services. Need help adding blogs and videos to your website? Need lists of Qualified Renters? Fill out the form below and I will contact you shortly and help you get set up!