I’m looking for innovation in today’s real estate market, and all I keep getting are statistics. I call it the high cost of procrastination.
Maybe it only seems this way, but it is as though everybody is now waiting when it comes to real estate and especially home sales. Therein lies the problem. Everybody is waiting. That means nobody is acting.
Whatever happened to the saying “It takes money to make money”? People used to invest in real estate, but obviously not right now. Many who normally would are waiting to see what happens. People would invest in the stock market, but based on the amount of decline over the past few months, not anymore. Market investors are waiting to see what happens. Others would invest in CD and Money Market accounts, but those no longer pay out enough to make it worthwhile. Potential investors in CD’s are waiting to see what happens.
So while everyone keeps waiting, what happens?
Real estate will always be there. A company might not, a bank or investment company might not, but real estate will always be there. And it provides a chance to deal in the now.
Want to sell your home or a property you own? You think you can’t or won’t because of the market. That is playing the same waiting game everybody else is.
I continue to have mortgage lenders around the country tell me that they are not able to qualify a large percentage of potential buyers because of credit or down payment issues. Many of these lenders tell me they don’t want to advertise their own services because of the marketplace. And some of those same lenders have a disconnected phone number when I try them back a few weeks later to see how they are doing.
Some lenders and realty agents overlook opportunity. In the circumstance described above, it seems to me that the “turned down” potential buyer has credit and/or down payment challenges. That is understandable in today’s economy. Yet, there did not seem to be an issue with them making a monthly mortgage payment if they had better credit and/or enough for a down payment.
To me, that “turn down” could well be turning down business. That same lender and realty agent could have been helping that potential buyer find a house to rent in the range they could afford.
True, I’m making that sound easy. Wait a minute. With thousands of homes listed for month after month in just about every area, it probably is.
That potential buyer should be presented with three simple words. Rent to buy. While that potential buyer is looking to restore or improve their credit rating and/or saving for a down payment, that potential buyer could actually be living in their “new” home. If they are renting to buy, they will surely take better care and do better maintenance when they have a future stake in the home. From the seller’s standpoint, even if they don’t quite get all of their monthly mortgage back, they can move on to a different location. Maybe even downgrade to remain steady with monthly obligations. Perhaps renting elsewhere while maintaining equity in a home costing them little to nothing.
Such a “rent to buy” arrangement could include the lender and realty agent and eventually provide them with commissions. Could be on the rental or for if and when the rental turns into a purchase. This could avert foreclosures and would help the revenue for lenders and realty agents. Significantly, it would not leave potential buyers “waiting” like the rest of the people in the industry.
Showing posts with label lenders. Show all posts
Showing posts with label lenders. Show all posts
Tuesday, March 3, 2009
Thursday, February 12, 2009
If you are thinking refinance, think it now!
About half of my work week consists of contacting mortgage lenders and brokers around the country, including current and potential clients. Some appear to be holding the "wait and see" attitude regarding campaigning for business, including refinances. They could lose out, just as consumers could, by not looking into a refi as soon as possible.
Personally, my wife and I took advantage of the quick dip a year ago and reduced our monthly mortgage payment by more than $200 per month while the getting was good. I already know that this latest dip isn't worth it for me, but that's because I have been working with realty agents and mortgage lenders for 20 years. I'm not like most home owners and potential buyers out there.
Lowering the monthly payment is not the only reason for a refi. Just because the amount due is lowered on a refinance, it doesn't have to mean a reduction. Paying the $200 per month (or whatever you save) toward the principal will make a difference in the long run.
Yet, many mortgage lenders are playing the "wait and see" game and it keeps consumers from finding out the advantages of refinancing now if it makes sense. The smart ones have already done so, some at higher rates in late 2008 than what is out there right now.
Freddie Mac reports that U.S. homeowners cashed out over $17 billion (that is BILLION) in home equity through the refinance of prime first-lien mortgages for in the 4th quarter of 2008. That is the lowest amount since the first quarter of 2001. Statistics show that 14% of refinancing homeowners paid in extra money when they refinanced, reducing their mortgage debt. This is the highest cash-in share since the fourth quarter of 2004, when 19 percent of refinancing homeowners put cash into their home equity.
Not only that, but by playing the "wait and see" game, the additional funds being paid each month until or unless you refinance your home are going to add up. In other words, if you wait 6 months to save $300 per month instead of $200, it will in effect cost you an additional $600 by waiting.
In addition, there are no guarantees to home owners that the fees involved with a refinance will not rise between now and six months from now. Using the example in the previous paragraph, if six months from now the lender's fee to refinance increased even $500 from today, your waiting for better rates would actually be an additional $1,100 out of your pocket. (Compare that amount with your current monthly payment!)
This while I talk to homeowners who "figure" the mortgage rates will go down even further this year, and to lenders who want to "wait and see what happens". Seems to me there are a lot of homeowners who should know their mortgage refi options.
Personally, my wife and I took advantage of the quick dip a year ago and reduced our monthly mortgage payment by more than $200 per month while the getting was good. I already know that this latest dip isn't worth it for me, but that's because I have been working with realty agents and mortgage lenders for 20 years. I'm not like most home owners and potential buyers out there.
Lowering the monthly payment is not the only reason for a refi. Just because the amount due is lowered on a refinance, it doesn't have to mean a reduction. Paying the $200 per month (or whatever you save) toward the principal will make a difference in the long run.
Yet, many mortgage lenders are playing the "wait and see" game and it keeps consumers from finding out the advantages of refinancing now if it makes sense. The smart ones have already done so, some at higher rates in late 2008 than what is out there right now.
Freddie Mac reports that U.S. homeowners cashed out over $17 billion (that is BILLION) in home equity through the refinance of prime first-lien mortgages for in the 4th quarter of 2008. That is the lowest amount since the first quarter of 2001. Statistics show that 14% of refinancing homeowners paid in extra money when they refinanced, reducing their mortgage debt. This is the highest cash-in share since the fourth quarter of 2004, when 19 percent of refinancing homeowners put cash into their home equity.
Not only that, but by playing the "wait and see" game, the additional funds being paid each month until or unless you refinance your home are going to add up. In other words, if you wait 6 months to save $300 per month instead of $200, it will in effect cost you an additional $600 by waiting.
In addition, there are no guarantees to home owners that the fees involved with a refinance will not rise between now and six months from now. Using the example in the previous paragraph, if six months from now the lender's fee to refinance increased even $500 from today, your waiting for better rates would actually be an additional $1,100 out of your pocket. (Compare that amount with your current monthly payment!)
This while I talk to homeowners who "figure" the mortgage rates will go down even further this year, and to lenders who want to "wait and see what happens". Seems to me there are a lot of homeowners who should know their mortgage refi options.
Wednesday, January 21, 2009
Lenders fight the battle, too............
It's not just the realty agents, builders, and developers having to fight the battle against the negative publicity and its additional harm to the marketplace. Sometimes, it is also the mortgage lenders, although they get it from all sides.
http://www.wptv.com/content/financialsurvival/survivingthesqueeze/story/Harder-to-qualify-for-refinancing/li2cdjNQjU-mFMsq_S1pQg.cspx?rss=762
That article would have you think that getting a loan is even more of a challenge. Imagine a consumer faced with the situation described after all that consumer went through to find a property he/she actually could get a deal on.
Yet, too many of the lenders I have talked with this week are more concerned with contacting their database of past and potential clients. If the people they are spending their time and money to contact don't believe in the possibilities, it makes the battle that much more challenging.
http://www.wptv.com/content/financialsurvival/survivingthesqueeze/story/Harder-to-qualify-for-refinancing/li2cdjNQjU-mFMsq_S1pQg.cspx?rss=762
That article would have you think that getting a loan is even more of a challenge. Imagine a consumer faced with the situation described after all that consumer went through to find a property he/she actually could get a deal on.
Yet, too many of the lenders I have talked with this week are more concerned with contacting their database of past and potential clients. If the people they are spending their time and money to contact don't believe in the possibilities, it makes the battle that much more challenging.
Wednesday, December 3, 2008
Rent To Buy - and How It Can Create Business !
It is always good to see a positive slant on the real estate market, and the San Antonio Board of Realtors has finally done just that. They have issued a report about the increase in local homes being rented and the positive impact on the market. The report claims that “the number of sales of rented homes jumped 8.6 percent in August and September from the same two-month period last year.”. It goes on to say that the number of sales of rented homes jumped more than 8% in August AND September compared with the same two-month period in 2007.
First of all, this is what a realty board SHOULD have been doing all along over the past year or two. Finding the positive statistics and putting them out there. I have already voiced my opinion about member dues going toward stories being published about the comparative drops in home sales and how much that has contributed to the public’s negative perception about the marketplace.
Second, this proves that what I call “true creative financing” is starting to take hold. This report (at least what I saw of it) does not have details about the number of people who executed a “rent to buy” situation went on to purchase, but I have to believe it is a major factor toward this new trend. An empty home is a tougher sell, especially when there is so much inventory out there. Sellers need to see the value of renting or simply doing what they can to have their home for sale occupied if and when they need to vacate.
By the way, that same report shows that the average rental rate for single family homes in the San Antonio region was up nearly 5% for the month of September when compared with one year ago. Some seller/landlords (to coin what should be an often used title!!) realize that many who are renting houses are doing so because they may have enough for a down payment to purchase a home, but do not have the credit.
Even with mortgage rates dropping to their lowest in 4 years this past week, I am seeing the initial crunch of responses from consumers geared more toward refinance rather than purchase. This is certainly good news for mortgage lenders. And my real estate agent clients are going to be reminded about touching base with some of their lender contacts. A candidate to refinance might be ripe to listen to a pitch about a comparable home available at a bargain price. The agent and lender work with the client to rent or sell their current property to, while finding a bargain on an even better comparable property. This is what will kick start the industry back toward where it should and will be. That scenario results in anywhere from one to three commissionable transactions. Compared with zero if the client has no idea they could do this and benefit.
However, I still hear lenders complaining that they can’t refinance some of their clients because the value of the home has dropped to the point that a refi doesn’t make sense. They feel as though the “short sales” going on are knocking them out of the box on refi’s. Taking into account the scenarios such as I have just described opens up additional possibilities of making them happen. Granted, not every possible refinance will be willing to pursue another property and move, but if one out of twenty such possibilities comes to fruition, that is one more commission than would otherwise have been. This is a time of great opportunity.
This reminded me of a story I saw in the early 90’s when I was in the Los Angeles area during the California real estate boom of that period. I was attending an agent and broker meeting as an affiliate member of the (then) San Fernando Valley Board of Realtors when it was already among the top 5 largest membership bases in the entire country. While the market was hot, this was during the period when home prices were inflating in excess of 20% over the course of a single year.
A broker/owner went up before a group of agents to pitch a property and explained that he has the most motivated seller in the area. To the point that he offered an ADDITIONAL $10,000 commission (above and beyond the contracted percentage) to the buyer’s agent who brings him a qualified and eventual purchaser by the end of that day. I remember that to this day because he is the only agent I have seen or heard do that in my 20 years of advertising and marketing for agents and lenders. And I remember the buzz going around the room for the rest of that meeting as agents were making note of that.
Later that month, I asked him if he had been able to make good on that bonus offer. He told me that he wasn’t, but did manage to sell that property just a couple of weeks later. Then he went on to tell me that a couple of the other agents in attendance that day had brought buyers to a couple of his other (lower priced) listings who had not come his way before.
My point here is that agents and lenders do have a choice this minute. I would rather hear about creativity toward making deals than hear complaints about today’s market. You do have a choice.
For consumers participating in this blog, you can heed that advice on your own. If you already know that your home isn't worth what it was a couple of years back and thus would have a challenge to refinance, do your homework about bargains in your area of comparable or better houses. You just might be able to get yourself into a home originally valued at $50,000 to $100,000 more than yours was for the same or perhaps less money each month. If you can find a sharp enough realty agent and lender to work with you on this, you could go for a "rent to buy" as a form of seller financing and try and get a steal on a "better" property in your same area. One that will be worth even more when the market bounces back.
First of all, this is what a realty board SHOULD have been doing all along over the past year or two. Finding the positive statistics and putting them out there. I have already voiced my opinion about member dues going toward stories being published about the comparative drops in home sales and how much that has contributed to the public’s negative perception about the marketplace.
Second, this proves that what I call “true creative financing” is starting to take hold. This report (at least what I saw of it) does not have details about the number of people who executed a “rent to buy” situation went on to purchase, but I have to believe it is a major factor toward this new trend. An empty home is a tougher sell, especially when there is so much inventory out there. Sellers need to see the value of renting or simply doing what they can to have their home for sale occupied if and when they need to vacate.
By the way, that same report shows that the average rental rate for single family homes in the San Antonio region was up nearly 5% for the month of September when compared with one year ago. Some seller/landlords (to coin what should be an often used title!!) realize that many who are renting houses are doing so because they may have enough for a down payment to purchase a home, but do not have the credit.
Even with mortgage rates dropping to their lowest in 4 years this past week, I am seeing the initial crunch of responses from consumers geared more toward refinance rather than purchase. This is certainly good news for mortgage lenders. And my real estate agent clients are going to be reminded about touching base with some of their lender contacts. A candidate to refinance might be ripe to listen to a pitch about a comparable home available at a bargain price. The agent and lender work with the client to rent or sell their current property to, while finding a bargain on an even better comparable property. This is what will kick start the industry back toward where it should and will be. That scenario results in anywhere from one to three commissionable transactions. Compared with zero if the client has no idea they could do this and benefit.
However, I still hear lenders complaining that they can’t refinance some of their clients because the value of the home has dropped to the point that a refi doesn’t make sense. They feel as though the “short sales” going on are knocking them out of the box on refi’s. Taking into account the scenarios such as I have just described opens up additional possibilities of making them happen. Granted, not every possible refinance will be willing to pursue another property and move, but if one out of twenty such possibilities comes to fruition, that is one more commission than would otherwise have been. This is a time of great opportunity.
This reminded me of a story I saw in the early 90’s when I was in the Los Angeles area during the California real estate boom of that period. I was attending an agent and broker meeting as an affiliate member of the (then) San Fernando Valley Board of Realtors when it was already among the top 5 largest membership bases in the entire country. While the market was hot, this was during the period when home prices were inflating in excess of 20% over the course of a single year.
A broker/owner went up before a group of agents to pitch a property and explained that he has the most motivated seller in the area. To the point that he offered an ADDITIONAL $10,000 commission (above and beyond the contracted percentage) to the buyer’s agent who brings him a qualified and eventual purchaser by the end of that day. I remember that to this day because he is the only agent I have seen or heard do that in my 20 years of advertising and marketing for agents and lenders. And I remember the buzz going around the room for the rest of that meeting as agents were making note of that.
Later that month, I asked him if he had been able to make good on that bonus offer. He told me that he wasn’t, but did manage to sell that property just a couple of weeks later. Then he went on to tell me that a couple of the other agents in attendance that day had brought buyers to a couple of his other (lower priced) listings who had not come his way before.
My point here is that agents and lenders do have a choice this minute. I would rather hear about creativity toward making deals than hear complaints about today’s market. You do have a choice.
For consumers participating in this blog, you can heed that advice on your own. If you already know that your home isn't worth what it was a couple of years back and thus would have a challenge to refinance, do your homework about bargains in your area of comparable or better houses. You just might be able to get yourself into a home originally valued at $50,000 to $100,000 more than yours was for the same or perhaps less money each month. If you can find a sharp enough realty agent and lender to work with you on this, you could go for a "rent to buy" as a form of seller financing and try and get a steal on a "better" property in your same area. One that will be worth even more when the market bounces back.
Thursday, November 20, 2008
Aggressive Marketing for 2009
Here it is late November of a challenging year for realty professionals and mortgage lenders. And here I am continuing to contact more than 250 different realty and mortgage offices every week about making themselves known and stand out at such a crucial time.
Just today, I had 3 lenders tell me that they are or will no longer be in the mortgage business come Jan. 1, 2009. But the ones that are planning on staying and being in the business for next year need to rise to the occasion.
Recent research by the likes of McGraw Hill and PWC showed that businesses which increased, or at the very least maintained, their ad spending during the previous recession period enjoyed noticeable sales growth over the following 3 years - when compared with companies that reduced or eliminated advertising during the same period.
To put it into a sports term, don't let the other team back into the game when you have a lead.
This article puts it even better than I can:
http://www.managesmarter.com/msg/content_display/marketing/e3i4f5a5225e24b60e0f289cef3344b80eb?imw=Y
Granted, I complain a lot in this blog about the negative publicity which is mistakenly generated from within the industry. But I will admit that negative pub, such as mortgage rates rising and fewer homes being sold, does generate a significant increase in the number of consumers who will check for themselves.
http://www.comscore.com/press/release.asp?press=2516
Put it together, and I'm here to tell you that this is the time to increase or start advertising as much as possible. If consumers STOP seeing your name and/or your company name in the midst of the negative publicity, two things will likely happen:
1) Consumers will remember the advertisers keeping their name out there during tough times as soon as things pick up. If the rates dropped significantly this afternoon, they are not going to say "I'll wait until after the first of the year to see what happens!". They will say "I'm going to look right now and see which lenders and realty firms can help me!".
2) If you have reduced or eliminated your advertising and marketing presence, consumers could easily think that your office or company is among those which have closed their doors. You would have to spend double your previous budget to merely try to get those impressions back. And if you aren't spending now, I wouldn't count on having double the money and manpower available when the time comes.
Meanwhile, I'm pleased to learn that there are some positive efforts coming from some companies within the industry to reach consumers.
Kudos to Coldwell Banker corporate in New Jersey for compiling a list of "Major college football towns by home affordability". Great idea! This is the sort of list which will attract alumni of the more popular colleges across the country, who will want to see where their school ranks. Especially those whose football teams are having a subpar year. Gives 'em something to brag about. Of course, many are home owners.
If you are wondering, Akron, Ohio (University of Akron), was the most affordable market with an average price of $135,780. At the other end of the field ios Palo Alto, CA (Stanford University), with a $1.7 million average home price. Texas wound up with 3 of the "top" 11 areas on the list, by the way. Ft. Worth came in #6, Houston came in sixth with an average home price of $158,412, and Lubbock TX came in at #11.
Houston is a major example of the benefits of a story like this. All I have been reading and hearing about the Houston real estate market over the past six months is language not suitable to print here. If I were a CB agent or lender in the Houston area, I'd be all over this story. Finally, a positive and a fun slant.
Finally, there is the recent N.Y. Times story about the J.D. Power study of 4,300 mortgage loan applicants and their positive spin about the loan application process. Considering all of the funding and loan issues of late, this is a ray of hope.
Personally, I am already planning ways to make 2009 even more successful for my clients. But if they are not going to plan, and not planning to spend to establish or maintain a market share, the only way I can help them will probably be as a job reference in some other line of work.
Happy Turkey!!
Just today, I had 3 lenders tell me that they are or will no longer be in the mortgage business come Jan. 1, 2009. But the ones that are planning on staying and being in the business for next year need to rise to the occasion.
Recent research by the likes of McGraw Hill and PWC showed that businesses which increased, or at the very least maintained, their ad spending during the previous recession period enjoyed noticeable sales growth over the following 3 years - when compared with companies that reduced or eliminated advertising during the same period.
To put it into a sports term, don't let the other team back into the game when you have a lead.
This article puts it even better than I can:
http://www.managesmarter.com/msg/content_display/marketing/e3i4f5a5225e24b60e0f289cef3344b80eb?imw=Y
Granted, I complain a lot in this blog about the negative publicity which is mistakenly generated from within the industry. But I will admit that negative pub, such as mortgage rates rising and fewer homes being sold, does generate a significant increase in the number of consumers who will check for themselves.
http://www.comscore.com/press/release.asp?press=2516
Put it together, and I'm here to tell you that this is the time to increase or start advertising as much as possible. If consumers STOP seeing your name and/or your company name in the midst of the negative publicity, two things will likely happen:
1) Consumers will remember the advertisers keeping their name out there during tough times as soon as things pick up. If the rates dropped significantly this afternoon, they are not going to say "I'll wait until after the first of the year to see what happens!". They will say "I'm going to look right now and see which lenders and realty firms can help me!".
2) If you have reduced or eliminated your advertising and marketing presence, consumers could easily think that your office or company is among those which have closed their doors. You would have to spend double your previous budget to merely try to get those impressions back. And if you aren't spending now, I wouldn't count on having double the money and manpower available when the time comes.
Meanwhile, I'm pleased to learn that there are some positive efforts coming from some companies within the industry to reach consumers.
Kudos to Coldwell Banker corporate in New Jersey for compiling a list of "Major college football towns by home affordability". Great idea! This is the sort of list which will attract alumni of the more popular colleges across the country, who will want to see where their school ranks. Especially those whose football teams are having a subpar year. Gives 'em something to brag about. Of course, many are home owners.
If you are wondering, Akron, Ohio (University of Akron), was the most affordable market with an average price of $135,780. At the other end of the field ios Palo Alto, CA (Stanford University), with a $1.7 million average home price. Texas wound up with 3 of the "top" 11 areas on the list, by the way. Ft. Worth came in #6, Houston came in sixth with an average home price of $158,412, and Lubbock TX came in at #11.
Houston is a major example of the benefits of a story like this. All I have been reading and hearing about the Houston real estate market over the past six months is language not suitable to print here. If I were a CB agent or lender in the Houston area, I'd be all over this story. Finally, a positive and a fun slant.
Finally, there is the recent N.Y. Times story about the J.D. Power study of 4,300 mortgage loan applicants and their positive spin about the loan application process. Considering all of the funding and loan issues of late, this is a ray of hope.
Personally, I am already planning ways to make 2009 even more successful for my clients. But if they are not going to plan, and not planning to spend to establish or maintain a market share, the only way I can help them will probably be as a job reference in some other line of work.
Happy Turkey!!
Tuesday, September 16, 2008
Stop the madness
I'll swear it is getting even worse. Realty professionals and mortgage lenders tell me every day how challenging the market is. Yet, the realty associations and boards seem to be leading the way in publishing the negative news.
The more they tell people about the decline in home sales, the more they help consumers to lose interest in buying. If this were "my" association, I'd be at every meeting asking questions.
Again, without trying, here are stories I have come across while checking the industry news within the past 24 hours:
http://www.2theadvocate.com/news/business/28403244.html
http://www.bizjournals.com/sacramento/stories/2008/09/15/daily28.html?ana=from_rss
http://www.fresnobee.com/updates/story/868334.html
http://www.bizjournals.com/columbus/stories/2008/09/15/focus1.html?ana=from_rss
http://news.rgj.com/apps/pbcs.dll/article?AID=/20080914/BIZ/809140326
So how do these stories make me want to contact a realty agent today?
The more they tell people about the decline in home sales, the more they help consumers to lose interest in buying. If this were "my" association, I'd be at every meeting asking questions.
Again, without trying, here are stories I have come across while checking the industry news within the past 24 hours:
http://www.2theadvocate.com/news/business/28403244.html
http://www.bizjournals.com/sacramento/stories/2008/09/15/daily28.html?ana=from_rss
http://www.fresnobee.com/updates/story/868334.html
http://www.bizjournals.com/columbus/stories/2008/09/15/focus1.html?ana=from_rss
http://news.rgj.com/apps/pbcs.dll/article?AID=/20080914/BIZ/809140326
So how do these stories make me want to contact a realty agent today?
Tuesday, July 15, 2008
Keep Marketing During Challenging Times !!
I continue to contact at least 300 potential clients every week, regardless of market conditions. Realty agents on mortgage brokers should continue to market their individual ideas and capabilities to as many potential clients as possible, and not fall victim to the statistics game.
Keep in mind the old joke that "38% of statistics are meaningless". It's how you use them. Coke & Pepsi both have plenty of geographic and demographic places to tout themselves as "#1". CNN and Fox News both claim to be the most watched, and in certain age groups, they each are. It is not what you advertise and market - it is HOW you advertise and market.
Last week a read the statistics for May 2008 about the drop in home sales in the Dallas area since one year ago. I went past them, actually, and saw that 5,088 homes sold just in the Dallas Metroplex within the month of May. To my way of thinking, that was cause to call 100 mortgage lenders in the Dallas area to let them know that "more than 5,000 homes in the area have sold within the past 60 days, and that is over 5,000 mortgages". Yet, many of the lenders I spoke with continue to tell me to "call when the market picks up because I don't have any money now". Obviously, they stopped reading after the "home sales are down...." part of the story.
You need to use information to your advantage, along with some creativity. This week started with IndyMac Bank in the headlines, and not good ones. Another large bank in serious trouble.
For as much as outside advertising and marketing helps, you can use news such as the above to your advantage in your weekly or monthly contacts. Realty agents should be calling their investor type clients to remind them that with more banks now in trouble (you) could help them find the best deal on a bank owned property. Mortgage lenders should be calling past and potential clients to let them know they have more funding options than the bigger banks that are being shut down, even with so many great deals out there right now.
Desperate times call for creative measures. (That's my personal saying!) Let's use builders and developers as an example. Many builders continue to force their internal mortgage company on buyers. Some of those same ones have not been Realtor friendly. That was then. Now that buyers aren't lining the streets to enter a model home, the time is right to make contact.
Centex is now offering "special bonuses" for realty agents. And what does a builder's own mortgage company do if a potential buyer doesn't qualify? They could lose a much sought after sale. What if you could bring them and/or qualify a buyer they can't?
It also amazes me that I am not seeing advertising or marketing from realty offices and lenders to encourage downsizing. Gas prices are now the biggest concern for most of us. Some people live in fear of making their mortgage for the coming month.
Instead of sitting there waiting for rates to drop so you can think about advertising for refinance clients, your time could be used to seek and find more viable options for current and open potential clients. Don't forget that for your sales and refinance clients, you have their information about where they work and what their payments are.
Let's say you handled the purchase for John & Mary 3 years ago on a 2 bedroom $300,000 house 20 miles from where John works. John & Mary aren't likely to refinance at today's rates, as it wouldn't make sense. So instead of saying "next!" do a little research.
What if you found a $225,000 house with 2 bedrooms and similar amenities that was 5 miles from John's work? (And don't think it would not be as good of a property - given the home buyer's market in many areas!) John would save 30 miles per day (over 1 gallon of gas each day - and around $100 per month at today's outrageous gas prices). And the lower mortgage on the "new" house would save them at least $200 per month additional. Presto! There is a way to save John & Mary at least $300 per month and take advantage of the buyer's market. Even if John & Mary tell you "no thanks", you will have impressed them with your creativity and knowledge of the market. They won't forget that when they are ready to say "YES!" in the future.
It is your creativity that can win you more business. One of my most creative clients within the past couple of years include a mortgage lender advertising a loan program benefitting public service professionals. That is hitting a niche market, both for now and the future. Another set up a separate loan office down the street from a new development, advertised himself as the lender specialist for that plot, and got the most loans of any mortgage broker when the development finally sold out.
It is a big country out there. The more creative ideas you share with me, the more business we can all generate.
Keep in mind the old joke that "38% of statistics are meaningless". It's how you use them. Coke & Pepsi both have plenty of geographic and demographic places to tout themselves as "#1". CNN and Fox News both claim to be the most watched, and in certain age groups, they each are. It is not what you advertise and market - it is HOW you advertise and market.
Last week a read the statistics for May 2008 about the drop in home sales in the Dallas area since one year ago. I went past them, actually, and saw that 5,088 homes sold just in the Dallas Metroplex within the month of May. To my way of thinking, that was cause to call 100 mortgage lenders in the Dallas area to let them know that "more than 5,000 homes in the area have sold within the past 60 days, and that is over 5,000 mortgages". Yet, many of the lenders I spoke with continue to tell me to "call when the market picks up because I don't have any money now". Obviously, they stopped reading after the "home sales are down...." part of the story.
You need to use information to your advantage, along with some creativity. This week started with IndyMac Bank in the headlines, and not good ones. Another large bank in serious trouble.
For as much as outside advertising and marketing helps, you can use news such as the above to your advantage in your weekly or monthly contacts. Realty agents should be calling their investor type clients to remind them that with more banks now in trouble (you) could help them find the best deal on a bank owned property. Mortgage lenders should be calling past and potential clients to let them know they have more funding options than the bigger banks that are being shut down, even with so many great deals out there right now.
Desperate times call for creative measures. (That's my personal saying!) Let's use builders and developers as an example. Many builders continue to force their internal mortgage company on buyers. Some of those same ones have not been Realtor friendly. That was then. Now that buyers aren't lining the streets to enter a model home, the time is right to make contact.
Centex is now offering "special bonuses" for realty agents. And what does a builder's own mortgage company do if a potential buyer doesn't qualify? They could lose a much sought after sale. What if you could bring them and/or qualify a buyer they can't?
It also amazes me that I am not seeing advertising or marketing from realty offices and lenders to encourage downsizing. Gas prices are now the biggest concern for most of us. Some people live in fear of making their mortgage for the coming month.
Instead of sitting there waiting for rates to drop so you can think about advertising for refinance clients, your time could be used to seek and find more viable options for current and open potential clients. Don't forget that for your sales and refinance clients, you have their information about where they work and what their payments are.
Let's say you handled the purchase for John & Mary 3 years ago on a 2 bedroom $300,000 house 20 miles from where John works. John & Mary aren't likely to refinance at today's rates, as it wouldn't make sense. So instead of saying "next!" do a little research.
What if you found a $225,000 house with 2 bedrooms and similar amenities that was 5 miles from John's work? (And don't think it would not be as good of a property - given the home buyer's market in many areas!) John would save 30 miles per day (over 1 gallon of gas each day - and around $100 per month at today's outrageous gas prices). And the lower mortgage on the "new" house would save them at least $200 per month additional. Presto! There is a way to save John & Mary at least $300 per month and take advantage of the buyer's market. Even if John & Mary tell you "no thanks", you will have impressed them with your creativity and knowledge of the market. They won't forget that when they are ready to say "YES!" in the future.
It is your creativity that can win you more business. One of my most creative clients within the past couple of years include a mortgage lender advertising a loan program benefitting public service professionals. That is hitting a niche market, both for now and the future. Another set up a separate loan office down the street from a new development, advertised himself as the lender specialist for that plot, and got the most loans of any mortgage broker when the development finally sold out.
It is a big country out there. The more creative ideas you share with me, the more business we can all generate.
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