By Jesse McCarl
Last week we took a look at statistics that convert seller leads. Sellers are looking for specific qualities in an agent; they are concerned with moving their property fast and for a profit. Buyers are a little different.
Buyer leads don’t hesitate because they’re worried about hiring the wrong agent; they hesitate because they don’t know if now is the right time to make such a huge investment. Whether they’re worried about the state of the economy or the state of their own bank account, there is plenty to scare off buyers.
If you really want to convert buyer leads, however, there are plenty of industry stats that will motivate prospects to move forward. With a skeptical buyer, you want to take the focus off yourself and more on him or her. Convince your prospect that now is the time to act with these important stats:
(Nearly) Historic Low Mortgage Rates
Interest rates have hit historic lows in recent years, and have danced around that mark for quite some time. However, they are starting to gradually rise. Even the slightest increase in mortgage rates can have a huge impact on the cumulative amount of interest the buyer ends up paying.
Home Prices Are Climbing
With the burst of the housing bubble in 2007, the entire country became a buyer’s market. Buyers have had the edge for a long time now, but over the last year, the industry has begun to balance itself out. As more and more buyers hit the scene, sellers are able to ask for more and more in their listing price. Reminding your buyer leads of this will help light a fire under them.
Buying Provides Stability
A common argument you come across with buyer leads is that they think they just need a little bit more money before they can buy. What they fail to account for is that all their other expenses will go up during that time. Even if a mortgage is a bit more than they’re paying for rent right now, it will stay consistent for the next 15-30 years. Rent rates go up year-to-year, based on the subjective landlord.
Furthermore, the average person makes about a 2% raise year-over-year; home prices are currently raising approximately 7% each year. So if they’re waiting for a certain breakthrough at their job, it could only hold them back. New jobs don’t translate to new homeowners.
Losses Before Wins
If your lead has been through the home buying process before, s/he may be hesitant about how grueling the whole process can be. Who wants to jump back into a cycle of endless offers and disappointment.
If you’re dealing with someone like this, turn the stats you share from the real estate industry to your own qualifications. Share your average number of declined offers, or “losses,” before closing on a home – the ultimate “win.” If you can assure buyers they won’t face too much disappointment with your services, it could be enough to get them off the fence.
Listings Lined Up
Another aspect of the buying process that will scare off many prospects is the idea of just doing tours ad infinitum. Talk about the average number of listings your clients see before making an offer, how many they see in a weekend, and other averages related the house hunting process.
Presenting statistics on the current housing market – plus a few tidbits about your own success rate – is all it takes to convert buyer leads into bigger commission checks!