Reaching Out to Repeat Homebuyers
Most people selling their homes do so to buy a new one. Statistics from the National Association of Realtors website indicate that 53 percent of today's homebuyers are repeat buyers. With today's ideal combination of low interest rates and affordable home prices, repeat homebuyers make a very lucrative market niche and you'll want to make the most of this purchase market opportunity.
Offering affordable financing, superior customer service, and market presence will attract any homebuyer, but here are tips to consider in attracting repeat homebuyers, or retaining those already in your portfolio.
Use the Internet. The Internet has become the primary source of information used in the homebuying process. Aside from searching for properties, a big part of the homebuyers' online research will be looking for financing options that meet their needs. Make sure to build up your Internet presence with information and services homebuyers are looking for.
Provide a refresher on the homebuying process and explain the new rules of buying in today's market. With the dramatic changes the market has undergone in recent years, repeat homebuyers want to know more about today's housing landscape as they re-enter the homebuying process.
Monitor your servicing portfolio for opportunities. With today's attractive market rates, homeowners are being "poked" by other lenders. Homeowners in your servicing portfolio can easily talk to someone who is proactively engaging them. Make sure those in your portfolio know that you can help them with financing options should they decide to buy a new home. A statement stuffer is an effective way to get your message across.
Encourage current customers to keep you in the loop. You'll want to know when your existing mortgage borrowers decide to buy a new home. Assure them that you help make the homebuying process as streamlined and affordable as possible when they plan to buy a new home.
Leverage the information you already have. You are in a unique position to analyze a borrower's profile with the information you already have. Use this to offer them promotional arrangements and/or a new competitive financing package that recognizes the long-standing relationship with that customer.
Train your staff to spot and nurture opportunities. An existing borrower who calls to get a quote on a rate or information on the unpaid principal balance may be indicative of a possible refinance or the beginnings of a homebuying process. Make sure your staff is trained on how to keep such customers engaged.
Use monthly statements to build customer relationships. The monthly statement provides a tremendous opportunity to regularly be in front of your customers. Use your monthly statement to flash a value proposition that will reinforce your message to current mortgage customers and drive repeat business.
Establish or strengthen your relationships with business sources. Repeat homebuyers are likely to engage the services of a real estate professional and/or a broker again. Make sure you continue to build mutually beneficial relationships with valuable business sources that can help generate origination opportunities.
Offer a mix of mortgage products that meet borrower needs. Freddie Mac is focused on providing mortgage product solutions to meet the needs of more borrowers, and increasing mortgage origination opportunities for lenders using Freddie Mac mortgage products.
For more information about Freddie Mac product options and services: