We have all heard the expression "You Sell the Sizzle not the Steak"
There's a lot of truth in that statement especially in Real Estate. Let me explain.
There is such a deep emotional attachment to real estate for the home buyers and home sellers. We in the industry tend to forget that. As professionals we move past the emotional part and get right to the logic, even to our detriment.
Sometimes our job is, to allow them to be emotional basket cases and to keep them from hurting themselves.
OK so now that we've established that it is emotional. Let's look at marketing, lead generation or dare I say p p p prospecting (my attempt to stutter in writing).
We tend to market based on logic and the consumer is reacting to emotion.
We know a first time home buyer is more than likely NOT actually close on a short sale or a foreclosure. There are many reasons, short sales can take for ever, both short sales and foreclosures can be in less than desirable condition. If they are a really good deal, the cash investors will beat them out. We know this from experience, BUT THEY DON"T KNOW THAT YET.
Here's an interesting statistic, *55% of all home buyers considered buying a foreclosure, that number is even higher with first time buyers. Then once they start looking at them and then look at the process they are ruled out.
*51% of all buyers want help to "find the Right Home".
So if 55% are considering a foreclosure, 51% want help finding the right home, then your marketing message should include it, it doesn't matter that they will eventually buy. Remember lead generation has one purpose and that is to set an appointment. PERIOD!
Remember they are reacting to emotion and what they think they know. So a good script would be "Let's set an appointment, so we can help you find the right home, we'll look at foreclosures, pre-foreclosures, HUD Homes and everything in between, won't that be great?
I cringe when I hear agents trying to explain to a prospect on the phone, that they really don't want a foreclosure, before they set an appointment. They think they do, just set the appointment then help them.
I don't want the loan officers to feel left out, there really isn't anything but logic in a spread sheet. A little tweaking of your language pattern would go a long way. Instead of trying to explain a complicated pricing that makes up the APR, just tell them (we are appointment setting) "Let's set an appointment" so we can help you get the lowest payment possible for your dream home. Won't that be great?
*NAR Profile of Home Buyers and Home Sellers