It is not polite to point. How many times did you hear that in your formative years? I heard it enough to stick in my head. But sometimes it is a technique that works.
Our clientele ranges in scope from first time home buyers just barely out of high school to seasoned investors with multi-million dollar portfolios and years of investment management experience. It may surprise you to find that there are individual members of both groups who need hand holding and members of both groups who need directional guidance.
One way we determine who needs which method is by asking common sense questions and questions very specific by using industry terms and prhases as well as examining the history of that particular person's home buying experience. For all first time homebuyers and first time investors we offer quite intense workshops which really get into the details of home or investment ownership including the financing, management, tax and insurance responsibilities.
One of my best clients is a former National Director of Operations for a large home improvement company. He has extensive stock investment experience and has done quite well. He had purchased seven of his own homes but never owned an investment property but he is approaching retirement and has been acquiring investment properties. He still needs hand holding and he's on his fifth investment.
On the other hand we have a client who is in his thirties, has bought three of his own homes and is on his ninth investment property. He no longer needs hand holding but he always, ALWAYS calls us first before he speaks with an agent or seller about a property to make the numeric decision. He's getting good enough to do it on his own.
What I am doing is encouraging you to develop a strategy for groups and individuals because educated and experienced clients are the best ones you can have but you can not treat the rookies like rookies. Now we revisit my first home buying experience.
I had been to the closing with my parents, my dad had bought and sold his own homes and several investment properties. In my mind I felt experienced and I suppose my agent believed I was. At the time I was 23 years old, managing two retail outlets which did about $300,000 in annual revenue and had seven employees. I was confident.
I was green.
I made every mistake a rookie buyer could and the deal was terrible. (It was the worst deal of my career and it cost me a lesson.)
What could someone have told me that I didn't already know? Simple:
As a first time home buyer the only payment you are thinking about is the house payment.
Buying a home has many advantages but a few more management skills are required.
You are going to have taxes and insurance (if not escrowed - what is escrowed?)
You are coming from a one bedroom apartment to a three bedroom, two bath home - you have needs.
Window dressings for 24 naked windows will be somewhat pricey.
Do you have enough furniture?
Do you own lawn care equipment?
What will you do if the toilet overflows and will not stop running?
And the list we use has over 200 items on it designed not to frighten a home buying prospect into continuing to rent or live with parents but to be prepared for the tsunami of change. We make it an event with balloons, party favors, festive snacks, music and more. I have both hosted and attended some really boring first time buyer seminars.
They work. They can stretch out the time between first contact and first contract but I will tell you that virtually every client we have developed through our seminars will fight for their right to always use Novation Mortgage and our network of friends and they come back for their own needs, they refer their friends and family, and they feel good doing it.
Even as agents it behoovs you to attend these events not just to snake some clients (in fact you better ask permission PRIVATELY to pass out your cards - I will embarass you at my events if you do what it seems invariably an agent whom I do not know does, stand up and ask the question in front of the entire group - I say, not at this time, no. Ladies and gentlemen there are agents in attendance here today whom I know and trust. They will be available to speak with you at the end of the event.)
Agents should attend because they also learn about things. My Novation, for example and a shameless plug, has The American Dream Home Ownership Program in response to President Bush's 2000 challenge to place 10,000,000 new families in their own home by 2010. Our program is not score driven, allows high DTI's, provides 100% financing at rates comparable to the rates any good credit borrower can get, requires no reserves, no VOR, and no cash input at all from the borrower.
As a realtor who didn't already know that, how many sales have you missed because you didn't know a lender could do things like that anymore?
Success to you all! Make it festive, exciting and informative and you'll never have a problem booking every available seat.
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