How to Convert Renters Into Motivated Home Buyers – With LESS WORK
A new Joint Center for Housing Study from Harvard University calculated 12 million American’s spend more than 50% of their earnings on rent.
This reality is probably why more renters are waking, up fed up that their rent checks are lining their landlord’s pocket and are ready to considering buying.
In the past, Americans in the nation’s most expensive cities have chosen to rent because it appeared to be a feasible solution. In San Francisco, for instance, where the median starter home costs about $895,000, there are more high-income renters than homeowners, according to the U.S. Census Bureau.
As rents rise, however, they’re realizing that perhaps a fixed-rate mortgage payment is far better than the wildly accelerating rental rates of late.
Yet, some people still choose to rent. Why?
Many are cash poor and don’t understand that they don’t have to have a huge chunk of money for a down payment and closing costs. Others assume they can’t afford to purchase, despite having a decent income.
Related: Get to Know These 4 Low Down Payment Mortgage Programs
To successfully pursue this real estate audience requires targeted marketing that dispels myths and speaks to their pain points.
Here are some suggestions on topics you may want to use to attract these tenants.
That up-front cost
“I was a long-term renter because I wanted to wait to buy until I could afford to stay in my current neighborhood,” a new homeowner tells Jennifer Bradley Franklin at BankRate.com.
So, why the long-term tenancy? “I didn’t realize that there were affordable options,” she told Franklin.
One would think that with all the information at our fingertips, real estate consumers would be better informed about down payment assistance, closing cost help, and the overall long-term cost advantage of buying over renting.
It’s the assumption that the costs are higher when you buy than when you rent that keeps many of them out of the housing market. Dispelling this myth is a worthy goal in your marketing efforts.
In addition, educate renters on the down payment assistance programs that are available to them.
Although many are reserved for low-to-moderate-income earners, there are some for those who earn more.
In fact, with more than 2,000 down payment/closing cost assistance programs nationwide, you are bound to find one for your higher-earning, home-buying prospects.
Or, let them know that the FHA-backed mortgage has a down payment that can go as low as 3.5% and there are no income limits for borrowers. You would be shocked to know how few consumers are aware of this.
What demographic of renters you should target?
When creating your rental prospect list, target renters who earn in excess of $70,000 per year. Especially the 1.35 million-plus American households who earn $150,000 per year or more and who “became renters between 2007 and 2017.” (US Census data).
If you’re in a market that doesn’t provide an adequate targeted prospect list when you target $70k and up, then grab an annual salary range that better fits your market.
ProspectsPLUS! has a demographic search tool that makes it easy to build a list of high-income renters based on an annual income range you choose, under the “custom search” option.
NOW, you can convert renters into home buyers with less work
The ideal way to communicate, educate, and build trust over time with renters is to launch a renter postcard marketing campaign.
And, now, your ability to do this just got TEN TIMES EASIER with the New ProspectsPLUS! Renter Scheduled Campaigns.
In one quick sitting, you can schedule your renter postcards to go out over a period of time on a weekly, bi-weekly, monthly, or bi-monthly basis.
And, YOU DON’T PAY until each mailing goes out (change or cancel up until the night prior to mailing)!
To Launch a Renter Scheduled Campaign, Pick a Postcard Series, Then:
- Choose Your Start Date (see image below)
- Pick your mailing interval (weekly, bi-weekly, etc)
- Then attach your renter prospect list (you can schedule as little as one postcard to go out).
To get started on your renter scheduled campaign, from a desktop or laptop computer, click the “Go Now” button, below.
PLUS: When you have time…here are some helpful resources we’ve made available to support your success.
1. Become a Neighborhood Brand
Become branded in a specific neighborhood with a 12X15 marketing piece sent automatically each month to an exclusive carrier route. Watch this video to learn more or Click Here.
2. The Free Real Estate Mailing List Guide
The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here
3. The Free 12 Month Done-For-You Strategic Marketing Plan
The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here
4. The Free One-Page Real Estate Business Plan
Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan. – Click Here
5. Become a Listing Legend Free eBook
Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here
6. The Free Online ROI Calculator
Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here
7. The Free Real Estate Marketing Guide “CRUSH IT”
The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here
