Buy Again After: Nurturing the Comeback Homebuyer

Buy Again After Nurturing the Comeback Homebuyer

#MTS13OC

Introduction

My Recent Treadmill Purchase

• Was motivated to buy a new treadmill …– Went online to look up treadmill info based on my experience and needs.

• Researched info on trusted brands, durability, engine size, length of deck and price.• I read product descriptions, reports, reviews and consumer comments.

– Weeks later, when it was time to buy I went to the brick and mortar stores.

My Recent Treadmill Purchase– The salesman talked to my wife for 30 minutes presenting the features (not

many benefits) of his preferred treadmill. – I sat and thought to myself, “I can’t wait to get out of here, go home and go

online to verify what he is saying and do my own research.– I spent a bunch of time on www.treadmilldoctor.com

– And narrowed my potential picks down to two choices…

http://www.treadmilldoctor.com/

My Recent Treadmill Purchase– I wanted to see them in real life and I found out that they were both in stock

at Sears.

– An hour later the salesman said, “That was the easiest sale I ever made!”

What does this have to do with nurturing the comeback homebuyer?

What’s up, bro?


Think about my buying process. – How did the buying process start; how did it progress?– Was it an impulse purchase or a planned decision?– Where and how did I do my research?– Did I search exclusively online or offline?– Did I only use a computer? Did I exclusively use mobile devices? – At what point in the buying process did I start to engage with a live sales

professional?– Were his sales strategies effective?

• Did he focus on features or benefits?

– Did he leave an impression with me?– What did I do after talking to a sales professional? I went back online to verify

his assertions and for more research)– How many opportunities were missed to capture my business (both online

and offline)?


Compare this to the way that consumers now buy homes.


For mortgage loan originators to effectively nurture purchase leads (including comeback homebuyers), they have to understand the following two concepts:

1)ZMOT2)The Current Buyer Life Cycle

ZMOT = Zero Moment of Truthhttp://www.zeromomentoftruth.com/

ZMOT was mentioned in “The Digital House Hunt: Consumer and Market Trends in Real Estate, A Joint Study from the National Association of REALTORS and Google”

Zero Moment of Truth … the idea that shopping is no longer about showing up in a store … seeking advice or counsel on what to buy or how much they should pay.

… at the Zero Moment of Truth, today’s shoppers bounce back and forth at their own speed in a multichannel marketplace. They switch devices to suit their needs at any given moment. They search; go off to look at reviews, ratings, styles and prices; and then search again. They see ads on TV and in newspapers and online. They walk into local stores to look at products. They talk to friends, over the back fence and on social media. Then it’s back to ZMOT for more information.

…The story is no different for home shoppers. Real estate professionals know that their customers are uber-connected and informed. …

Consider my treadmill purchase experience.

Think about how this applies to today’s typical

home buying experience.

http://www.zeromomentoftruth.com/

http://www.zeromomentoftruth.com/

The Digital House Hunt: Consumer and Market Trends in Real Estate A Joint Study from the National Association of REALTORS and Google


What’s up, bro?

First thing: You have to fully commit to the fact that purchase leads take longer to close.

3 months … I gots to eat now.

I’m a hunter, not a farmer!

Second thing: You have to make a lasting impression on – and keep in contact with – your buyer so you don’t

lose them to “the Google”.

The Current Buyer Life Cyclehttp://bit.ly/scM47B

“The Lifecycle of Today’s Home Buyer: What Every Brokerage CEO Must Know to Survive” by Alex Zoghlin

… the Internet has transformed the way consumers buy homes.

… Today’s consumers are empowered by the web to be more self-directed. It’s changed every aspect of how buyers behave, the information sources they trust, how they view the roles of agents and brokers, and even how and when they make key decisions in the buying process, such as choosing an agent/brokerage.

… Notably, none of the many agents/brokers they were exposed to during their web surfing managed to make enough of an impression to get the couple’s business. Nothing about their websites or their online marketing was memorable or engaging enough to win over Tim and Sarah.

… However, in order to take advantage of those strategies, brokers first need to grasp the new mindset and behavior of today’s buyers.

This information is applicable to loan

originators too.

You are targeting the same buyer leads as the

RE agents. But you have to reach them first.

http://bit.ly/scM47B


In order to take advantage of those strategies, brokers first need to grasp the new mindset and behavior of today’s buyers.

All consumers, regardless of their age or lifestyle, basically engage in the same four behavioral phases during the process of buying a new home. I’ll refer to these phases as follows:

1. Discovery, 2. Research, 3. Selection and 4. Closing.



Phase One - Discovery

The Discovery phase starts the day a buyer first thinks about purchasing a new home. It can be motivated by the simple desire for a property more to their liking (“We’d love more space” or “a quieter neighborhood”) or by a pressing event, such as job relocation, a new baby or retirement. During this phase, consumers acquaint (or reacquaint) themselves with • the buying process itself, • the tools available to assist with their search and, of course, • the market landscape.

• Does your online marketing provide information

helpful during this phase?

• What tools do you provide the buyer (ex. mortgage

calculator)?

• Are you engaging with the buyer at this stage?

• If you capture this lead in phase one, do you keep in

contact with them?



Phase Two – Research

The Research phase begins when the buyer starts to actively seek out more specific information about neighborhoods or property attributes, such as square footage, number of bedrooms/baths, taxes, local schools, transportation, community services, culture, nightlife, crime and so forth. As in the Discovery phase, buyers continue using the web to find information.

Mortgage research includes:• local lenders• loan programs and guidelines• waiting period information• mortgage calculators

– payment calculator– prequal calculator

• down payment assistance

• Does your online marketing provide information

helpful during this phase?

• What tools do you provide the buyer (ex. mortgage

calculator)?

• Are you engaging with the buyer at this stage?

• If you capture this lead in phase two, do you keep in

contact with them?



Phase Three - Selection

Buyers become more discriminating during the Selection phase.

At this point, they feel comfortable with their knowledge of the marketplace and have a good idea of what they want and what they can realistically get.

The number of home attributes they are considering increases substantially as they shorten their list of target homes.

• They’ve probably contacted a REALTOR or another

lender or two at this point.

• If so, you’ve lost them or you’ve lost the opportunity

to capture them and refer them to the REALTOR of

your choosing.



Phase Four – Closing

The Closing phase is the purview of the professional agent. It’s a sales function as opposed to marketing.

The buyer’s search has come to an end and it’s time to seal the deal.

“That was the easiest sale I ever made!”

Many loan officers who are working referrals will drop

contact with their long-term prospects as soon as a

REALTOR calls them with someone in this phase.



s

NAR/Google report:

“… shoppers will perform an average of 11 searches

prior to taking action on a real estate site.”

“…lengthy research window yields many opportunities

to reach home shoppers during this time.”


Nurturing the Comeback Homebuyer

Target the Market– Where?

• Blogs, Guest Blog, Zillow Mortgage Advice, Trulia Voices, etc.• Retargeting (Remarketing) • Craigslist• Your Database (leads, inquiries, incomplete applications, declines)

– query database for credit info (collections, bk, 1003 declarations)

• Referral partner turndowns and short sale clients• Homebuyer shows• Call capture from sign riders and bandit signs• Renters (apartment complexes)

Get them into your database.

Example keyword searches that were hitting my blog post about bk, foreclosures and short sales

can i buy a home after a short sale with a fha loan fha waiting period deed in lieucan i buy a house with 30% down after a foreclosure and bk fha waiting period for bankruptcy foreclosurecan i finance with fannie mae after foreclosure fha waiting period foreclosurescan i get a conventional home loan after a 2 year old dismissed bk fha waiting period if you have a foreclosurecan i get a conventional loan after a short sale fha waiting period on repocan i get a fha after short sale fha waiting period on short salecan i get an fha loan after a deed in lieu of foreclosure fha waiting period to buy after foreclosurecan i get an fha loan after a short sale fha waiting periodscan i get an fha loan with a repossession on my credit wait for fha if included house in bankruptcycan i get an fha loan with short sale on record? wait time for short sale

can i get fha loan with multiple bankruptcieswait time from bankruptcy until new mortgage can be obtained

can i obtain an fha loan after bankruptcy waiting period after a short salecan i qaulify for an fha loan after a short sale waiting period after bankruptcycan i qualify for a fha if chapter 13 bankruptcy waiting period after foreclosedcan i qualify for a mortgage after a short sale? waiting period after foreclosurecan i qualify for a mortgage with a joint car repossession waiting period after foreclosure to purchase againcan i qualify for a mortgage with credit cards maxed out waiting period for bankruptcy after first bankruptcycan i qualify for an fha loan after a short sale? waiting period for buying home after short salecan i qualify for home loan if a repo on my credit waiting period to buy a home after bankruptcy waiting period to buy a home after foreclosure

Keyword ResearchGoogle AdWords Keyword Tool

https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEYWORD_IDEAS

Keyword Competition Global Monthly Searches Dec-10 Nov-10

after foreclosure process 0.21 590 480 480

buy a home after foreclosure 0.13 1900 1900 2400

buy again 0.1 6600 4400 3600

buy again after - - - -

buy home after foreclosure 0.13 1900 1900 2400

buying a house after a foreclosure 0.17 3600 3600 3600

buying a house after foreclosure 0.17 3600 3600 3600

buying after foreclosure 0.16 3600 3600 3600

can i buy a home after foreclosure 0.11 1300 1300 1600

can i buy a house after a foreclosure 0.11 1300 1300 1600

can i buy a house after a short sale 0.08 880 1000 880

can i buy a house after foreclosure 0.11 1300 1300 1600

Initial Rough Draft of Sitemap

• Additional things I would include: – Instructional videos (think zappos)– Links to critical tools offered by referral partners

Example Lead From Site

Capture the Lead– Buyer is probably in the Discovery Process or Research Process.– You have to modify your “closing statement” to match the borrower’s

current needs, gain their confidence and leave the right impression.• Bad: “Would you like to apply for a loan so I can pull your credit

and make you feel bad … and not contact you again?”• Good: “Would you like to work together so I can provide you with

the information and tools that you need to take the steps necessary to buy another home?”

PreparePresent

CloseResolve Concerns if Needed

Close Again…

Get them into your database.

Meet Needs, Gain Confidence and Leave Impression

Things That You Have To Provide To The Borrower At This Stage Include:– Hope– Knowledge– Tools to Keep Them Off Google– Resources

Knowledge

Knowledge

– Get Started Booklets• Target Date for Purchase• Copy of Credit Report• Personalized Consultation• Agreed Upon Milestones• List of Resources

* pdf and hardcopy

Tools & Resourcesto Keep Them Off Google

– Information on Your Website– Entry Into Your CRM– Mortgage Calculators– Preferred Partner Credit Repair Company– Preferred Partner Real Estate Broker• Quality Source of Home Buying Process Info• Home Search Tools (IDX)• MLS Client Portal

Tools & Resourcesto Keep Them Off Google

Meet Needs, Gain Confidence and Leave Impression

What You Need To Know:– Detailed Product Knowledge• Underwriting Guidelines• Waiting Periods

– Credit Analysis and Repair Strategies– WCGW

WCGW

Loss of money and reputation

Cultivate the Lead– You need automation for your follow up campaigns. Don’t

rely on yourself to follow up with your clients because you won’t.• LMS = Lead Management System• CRM = Customer Relationship Management• MLS Client Portal

Lead Management System

A typical outline of a lead management process might follow the following steps:

– Business engages in a range of advertising media (Lead generation).– Recipients of advertising respond, creating a Customer inquiry, or lead.– Respondent's information is captured (Inquiry Capture).– Captured information is then filtered to determine validity (Inquiry filtering)– The filtered leads are then graded and prioritized for potential (Lead grading)– Leads are then distributed to marketing and/or sales personnel (Lead

distribution).– Leads are contacted for prospecting (Sales contact).– Contacted and uncontacted leads are entered into personal and automated

follow-up processes (Lead nurturing).– End result is a new business sale (Sales result).

My Favorite: Leads360

Customer Relationship Management

Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support.

My Favorites: Top of Mind and ApprovalCoach


• Dear [[First Name]],• • As we begin the processing of your loan on [[Property Address 1]], I wanted to take just 60 seconds to remind you of the ten commandments of mortgage lending.• • The Ten Commandments• • 1. Thou shalt not change jobs, become self-employed or quit your job.• • 2. Thou shalt not buy a car, truck or van (or you may be living in it) !• • 3. Thou shalt not use charge cards excessively or let your accounts fall behind.• • 4. Thou shalt not spend money you have set aside for closing.• • 5. Thou shalt not omit debts or liabilities from your loan application.• • 6. Thou shalt not buy furniture.• • 7. Thou shalt not originate any inquiries into your credit.• • 8. Thou shalt not make large deposits without first checking with your Loan Officer.• • 9. Thou shalt not change bank accounts.• • 10. Thou shalt not co-sign a loan for anyone.• • • Warmest Regards,• • [[L O]]• Mortgage Professional• Academy Mortgage• Phone: [[L O Phone Phone]]• NMLS #: [[NMLS Number]]• AZ Lic [[StateIDforLO]]• Corp NMLS #3113• MB #0904081

Cultivate the Lead• To maximize opportunity, you need to work with a preferred partner real estate

agent / brokerage.– Pick the right one!

• They have good volume. • They can reciprocate referrals.• They have good systems and knowledge of lead cultivation.• They have a desire to work with re-entry buyers.• They have a working knowledge of the barriers to re-entry.• They understand realistic timeframes.

– They can provide information, tools and resources that you don’t have.• Agency• Call Capture• Home Search Options

– IDX and Mobile Geographic Search Aps – MLS Client Portal

To Maximize Opportunity, You Need To Work With A Preferred Partner Real Estate Agent / Brokerage.

Capture the AgentCapture the relationship by focusing on creating a backlog, not through the presentation of “the next best thing”.

• Backlog refers to unfinished work or to customer orders that have been received but are either incomplete or in the process of completion.

• Backlog analysis lets you to investigate the potential revenue by reporting all the work that have been received but not yet fulfilled. If you assume that you can fulfill all the remaining work in your backlog, you can predict how much revenue you will generate over the remaining period.

• Contract and backlog value is a strong base for forecasting revenue.

Buy Again After: Nurturing the Comeback Homebuyer

Real Estate

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