The past year has been a great time to be in the real estate business. We are finally seeing prices across the country climb past the levels they were at before the collapse in 2008, and we are now witnessing the emergence of millennials evolving into a buying force to be reckoned with.
As more and more people are making their way into the market as first-time homebuyers, savvy agents are doing everything in their power to get out in front of that trend and forming relationships with those buyers while they are still happily renting.
If you are looking for fresh ideas for targeting renters who might become buyers soon, we have put together five strategies to get you started.
1. Target Apartments with Direct Mail
The most popular way to specifically target renters is to obtain mailing lists of apartment complexes in your community and send direct mail to the tenants that occupy those properties. You probably won't be the only agent utilizing this approach, but if you can craft your direct mail in a way that expresses your unique talents, you should be able to secure enough business for a positive return on your investment.
When working on your direct mail copy, make sure that you keep in mind that the goal is to build a relationship with a potential client. The first piece of mail is probably too soon to directly ask for their business. Instead, you could offer to answer any questions they might have or invite them to an upcoming first-time homebuyer seminar.
2. Take Advantage of Social Media
You can also target local renters using the power of your social media platforms. This can be done by asking your followers to recommend you to their apartment-dwelling friends, or you can take it to the next level and target renters using Facebook ads.
Once again, any leads you develop using this method will likely need some nurturing before they are ready to commit to hiring you, so be sure that you have plenty to offer in terms of help, education, and advice before asking for their business.
3. Hold First-Time Homebuyer Seminars
One of the best ways to convert leads from direct mail or social media is to invite them to a first-time homebuyer seminar. The only catch is that you have to have an upcoming seminar to invite them too, so you had better get planning.
Hosting a seminar might sound intimidating, but it is much easier to pull off than you might think. Partnering with a mortgage broker on the event can help lighten the load for you while providing attendees much needed answers to questions about how much they can afford and how much they need to have saved for a down payment.
4. Put Your Email List to Work
One area where you won't have to deal with making an introduction to new leads is by reaching out to the fans you have been talking to through your regular email newsletters.
Your list probably doesn't include many renters at this point, but there is a good chance that everyone on your list knows someone who is renting and would be better off buying. All you have to do is ask them to make the introduction.
5. Put Together a Rent vs. Own Report
No matter how you acquire new leads that are currently renting but might eventually look to buy, you should have plenty of evidence to convince them that buying is a much better option.
Putting together a "Rent vs. Own" report for your community that details all of the advantages of buying as opposed to renting will give you plenty of ammunition for those conversations.
It will also give you something that you can print and pass out at your first-time homebuyer seminars, as well as a great PDF that you can email to your list.
As real estate prices continue to climb, more and more people are going to realize that they are missing out on the advantages of being homeowners. When those renters decide to come into the market, you want to be the agent that they contact. The best way to do that is to already have a relationship with them. And if you follow these five steps, not only will they contact you first, they will tell their friends about you as well!