How do you get people who are considering purchasing a home to enter the market? Getting potential buyers off the fence has become more difficult recently due to rising interest rates and high prices. If buyers are the lifeblood of your business, what can you do? If you’re concerned about the future of your business, don’t worry. Today I’m sharing the first part of a new series on how you can get buyers off the fence and secure more clients. This part is all about talking to renters.
When you talk to a renter, your main goal should be to communicate the truth: It is never a good market to rent. When I talk to someone I know has the ability to buy but is choosing to rent, I try to get them prequalified with a lender. Often, people are surprised at what their monthly payment would be, even in a tougher market like ours.
“The math doesn’t lie—it pays to buy instead of rent.”
Getting a renter pre-approved may be enough in some instances, but for others, you’ll have to do a little math—fortunately, the numbers are on your side. In our area, the average renter could easily spend $2,000 per month. That means they’re giving $24,000 per year to their landlord to help them pay down their mortgage. In five years, they’ll have paid $120,000, and in 10, it will be $240,000. When you put those numbers next to the cost of a down payment, they seem ridiculous.
On the other hand, what if your buyer purchases a $550,000 home? Their monthly payment will be locked in, they’ll pay off their own mortgage instead of their landlord’s, and their property will almost certainly appreciate. Every year they own a home, the financial benefits increase. If your renter clients understand the numbers, they’ll be much more likely to let you help them find a home.
If you have questions about this topic, please call or email me. I am always willing to help!
