While the market may be slow in the winter, now is the perfect time to convince first-time buyers to work with you.
Who are these first-time home buyers?
Before we go any further, let’s take a look at who qualifies as a first-time home buyer. You want to target the best leads, right?
According to the U.S. Department of Housing and Urban Development (HUD), a first-time home buyer is:
- Someone who hasn’t owned a principal residence in three years. A spouse can also be a first-time buyer if they’ve not owned a principal residence in three years, even if their partner has been an owner before.
- A single parent who was married before and owned a home together with a spouse during the marriage.
- A displaced homemaker who has only owned a home with a spouse.
First-time home buyers are motivated to purchase.
First-time home buyers are probably the most motivated buyers in the real estate market. But, even though they are motivated to buy, they still need to be convinced to work with you as their buyer’s agent.
While first-time buyers aren’t a one-size-fits all group, they typically fall in a younger age category. The number of homeowners below the age of 35 has increased exponentially over the last several years. Millennials, who were previously more inclined to rent, seem to be warming up to the housing market and are ready to buy.
So who qualifies as a millennial? A millennial is anyone born between 1981 and 1996. These buyers are between 22 and 37 years old. They are establishing themselves in the job market, getting married, and settling down to start families.
When you click on “Order this Mailing List,” you’ll be taken to a page to narrow down your options.
Under the “List Options” tab, choose the selection that says “Include telephone numbers where available.”
Under “Geography,” enter any desired zip codes in the bottom section, then click “Apply entered ZIP Codes.”
With one zip code, I was able to collect 1,436 leads, for a price of $122.06.
You don’t like receiving cold calls? Neither do your leads.
When was the last time you were ecstatic about buying from someone who chased you down for months? Maybe Comcast or AT&T started calling you, then showing up at your door.
I had a Comcast salesperson show up at my door the other day pushing to upgrade my plan. It’s annoying. I viewed them as “an annoying pest” versus “a welcome guest.”
If Comcast had mailed me a sales letter telling me about their additional services, I may have read it and even considered what they were offering.
Finding first-time buyer leads is not enough for your business. You have to convert these leads into clients. The best thing about first-time buyers is that they don’t have the burden of selling a previous property and just need a bit of a push to hire you.
The question is not whether they want to buy, but rather whom they will work with, if anyone at all.
So what you need to do is provide and continue to provide value to them. Your goal is to become an authority in their eyes and build their trust from the start.
83% of buyers trust brands or companies that offer them resources and useful information. And that’s exactly what your book does. You’re providing buyers with a simple guide that answers any questions they may have. You’re relieving the stress of the selling process and building trust along the way.
Now that you’ve secured first-time buyer clients, your final step is to lead them to success at the closing table. Remember, your business will thrive if you maintain lasting relationships with your clients. The happier your clients are at closing, the more referrals you’ll get from them. So you’ve got to nail the negotiation process.
Here are 10 tips to help you become a killer closer and grow your business.
1. Understand basic psychology.
To be a great real estate agent, you need to understand how people think. Having a basic understanding of psychology can help you read your buyer clients and understand and address their concerns.