2010 - Creating a New Niche in the Hemet - San Jacinto Valley, CA Real Estate Marketplace

2010 - Creating a New Niche in the Hemet - San Jacinto Valley, CA Real Estate Marketplace

I just love it when the local Hemet - San Jacinto real estate market slows down for the winter and over the holidays.  Not only does it give me more quality time with my loved ones, but I get to spend the time looking hard at my business to see what I have done - good and bad - and what I want to change and add to the business model for the new year - 2010.

I find it exciting . . . especially when I come up with a new idea that I think is going to pay off and maybe even payoff big time. 

I am working out the details to target the ‘repeat buyer'.  We should all know by now that with the extension of the $8,000 tax credit for the first time homebuyer that Uncle Sam is offering the repeat homebuyer with their own tax credit of $6,500.  Of course there are limitations, but we have already covered those.  The purpose of this article is to look at attracting these buyers and helping them find the opportunity in the Hemet - San Jacinto, CA real estate marketplace.

TARGET MARKET - First things first is I need to sit down with my Title rep and see if I can put together a list of every homeowner in the valley that purchased their home pre 2003 and has NOT refinanced.  Once I know how many we have, I will be able to detail a more direct marketing approach.  I really doubt if we will hit 1,000.  I will want to eliminate any of the numerous age restricted (55+) communities we have in the valley and focus on mainstream single-family residences (SFR).  I will also want to eliminate any investor owned homes - maybe segregate them into a 2^nd list that I'll work on later - but for now - owner occupied SFR in family oriented neighborhoods purchase 6 - 7+ years ago with original purchase home loans only.

< < < U P D A T E > > >  - I figured out the Title problem and blog about it here: 

Repeat Buyer Search Criteria for 2010 Planning

START RUNNING THE NUMBERS - The trick is going to be to run the numbers on the homes in question.  I want to figure out what the highest realistic sales price that they could hope to attain in the current market.  I'll have to deduct their current mortgage and the closing costs and commissions associated with the sale of their home and determine what the approximate ‘net proceeds' will be in their pocket.

FINANCING - At this point, I'll engage my loan officer to run some of her own numbers to determine approximately what the Hemet - San Jacinto homeowner is currently paying as a monthly payment and then based on those numbers come up with 2 or 3 scenarios (depending on 2 or 3 common credit scenarios; like under 680 FICO, 680 to 720 FICO and over 720 FICO Scores) that will provide a loan amount that the homeowner SHOULD be able to qualify for. (Interest was much higher then, and if they have not refinanced - they may now be paying 7% or more!)

BRING IT TOGETHER - I'll bet you see where I am going with this.  Now, I'll be armed with a list of local homeowners that should be able to take their net proceeds from their home, keep the payments comparable (we should also have options taking the payment up 10%, 25% & 50% - just to keep things in perspective, in case they have real low payments and can afford more) and be able to move into a newer and nicer home in the local Hemet - San Jacinto real estate market.  Some may want to downsize, and that would be great too.  Heck, I'll bet we'll even identify homeowners who are happy with the size of their home but just want to live in a nicer part of town...or even leave town completely.  IT really doesn't matter.  What matters is we educate the current homeowners that NOW is a GREAT TIME TO BUY REAL ESTATE IN THE HEMET SAN JACINTO VALLEY!

TESTIMONIALS - Once I identify and complete one or two sales in this new niche, I'll be able to generate some great testimonials and market the heck out of that so I can share the message with all who qualify.

OBSTACLES - From where I sit right now, at the very early stage of putting the thoughts in print will be crunching all of the numbers.  I'm sure there will be some heavy Excel Spread sheet configurations in my future trying to make heads and tails out of this.

What I do know is that it will be a fun presentation approaching families in the Hemet - San Jacinto Valley who believe it is their best course of action to just ride the storm out and to be able to show them the advantages of moving up in a down market.

Anyone with any thoughts out there that would like to collaborate on this - you work your market and I'll work mine...let me know it just may work!