How to Insulate Your Business from Housing Market Changes
The market is constantly evolving to satisfy the needs from buyers. Demographics, public policies, and economic developments nurture changes in the housing market.
These factors are not always perceivable and almost impossible to forecast, yet, there are ways loan officers or anyone in the real state game can account for changes in the market.
Fundamentally, businesses spinning around the real state sector depend on building trustworthy relationships with new and old clients, getting leads and brand their name to attract more deals.
In this order of ideas, it becomes quite simple - or less tricky - to come up with a plan to keep a healthy stream of sales.
Segment Clients and Use Different Strategies
New home buyers are different than potential clients searching for a loan to refinance their debt. Hence, the strategies to approach these two types of customers must be unique.
Despite all the information available about the types of loans, the paperwork or general requirements, new home buyers may need substantial help to go through the process of borrowing money. One of the ways to earn their trust could be by giving advice and easing the learning curve to understand the finance behind the mortgage.
Flipping the coin, people in the market for refinancing could be looking for ways to decrease their interest rate, change mortgage type or shorten their loan term. In any case, they are focused on saving money. Then, the message given by loan officers should be related to their specific end.
Focusing on delivering a different message to customer purchasing or refinancing is a great way to face market changes. The reason is that by customizing the message it facilitates addressing different types of clients with specific loan solutions.
Develop a Sustainable Flow of Purchase Referrals
There are many ways to achieve a sustainable flow of referrals. For some loan officers working with a specific community, a stable stream of purchase referrals may come from realtors or agents. They get recommendations as they keep developing relationship with professionals working closely with new home buyers. Likewise, networking with financial planners is a good way to keep the flow of referrals running smoothly.
For other loan officers, obtaining referrals involve engaging with young adults through finance classes. They advertise their business by giving advice on schools on how to manage their debt, savings and take care of their credit score.
Put Efforts on Creative Branding Material
Business cards are outdated - social networks, email cold reach, flyers, and other branding material allow loan officers to present a better-detailed message on how they can help potential customers to identify the best deal.
Finding innovative ways to reach and communicate to buyers makes it easier to leave a good lasting impression.
Creativity is a catalyst to reach new customers - this is ideal if a decrease in the flow of new businesses is perceived.
Stay in Touch With Past Customers
A happy customer is one of the best ways to get new leads. Reaching out after a sale with educational material, follow-up emails or calls are great strategies to keep the name of the business present in their mine.
For this end, getting to know the client in the first place is key to build a profile to reach out after the deal is done.
Loan officers often work with clients for extended periods of time, in which they can find out about the financial necessities they are looking to solve with a credit.
If they either want to refinance to decrease the interest rate or improve mortgage conditions, or gain access to a specific type of loan - all this information can be used to follow-up with them and find out if they are pleased with the solution provided.