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How to score working with First-Time Home Buyers

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This is a presentation for Real Estate Agents talking about why and how they should work with First-Time Home Buyers.

This is a presentation for Real Estate Agents talking about why and how they should work with First-Time Home Buyers.

Published in: Real Estate
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  • 1. Scoring with First Time Home Buyers Unlocking Hidden Value Shashank Shekhar Arcus Lending
  • 2. About Me
    • Specialize in First Time Home Buyers & FHA Financing
    • Also an Author & Speaker
    • MBA in Marketing
    • 9+ Years of Lending Business Experience
    • Featured on TV & Radio shows
    • Creating “Raving Fans” by offering legendary service & value
  • 3. Agenda
  • 4. %age of FTHBs Source - NAR
  • 5. Home Affordability Peaks! Source – www.car.org
  • 6. Age of First Time Home Buyers Source - NAR
  • 7. Status of FTHBs Source - NAR
  • 8. Primary reason for buying the first home Source - NAR
  • 9.  
  • 10. Lifetime of Business
    • Typically stay in the home for 7 years
    • May buy ~5 properties over lifetime
    • Are more loyal clients
    • 50% market share
    Translates into more potential business over lifetime than any other segment
  • 11. Demand Drivers
    • Economic & Market Conditions
      • Unemployment Rate, Interest Rate, Availability of credit, Own vs Rent
    • Longer Term Social Trends
      • Female labor force participation rate, Divorce Rate
    • Immigrant & Minority Shares
  • 12. Demographic Drivers
    • Household growth from Hispanics & Asians will increase (1998-2008 vs 2010-2020)
      • Hispanics 3.8 millions to 4.5 millions
      • Asians 1.5 millions to 2.5 millions
    • Married couple without children fastest growing household type
    • Followed closely by single person households
    • Source – Housing study 2009 by Harvard
  • 13. Echo Boomers Effect
    • Born 1981-2000
    • This age group projected to increase by 2 million & 3.4 million*
    • *based on 2 different projections
  • 14. They will reverse the decline in 25-44 age group.
  • 15. The number of echo boomers 25-44 will eclipse the numbers of baby boomers when they were of the same age by 5.9 million
  • 16.
    • Huge surge in Starter Homes
  • 17.  
  • 18. Use of internet to search for homes Source - NAR
  • 19. First step taken during the Home Buying process Source - NAR
  • 20.  
  • 21. How to reach them
    • FTHB Seminars/Webinars
    • Invest in a top class CRM tool
    • Improve your online presence
      • Social Media
      • Blogging (60% of Gen Y and 50% of Gen X read someone else’s blog past month)
      • Get found on Google
      • Videos (78% of Gen Y and 62% of Gen X watched an online video)
    • Email drip campaign
    • Find a Niche within a Niche
  • 22. How to work with them
    • Finding Pain Areas and addressing them
      • Fear of losing job
    • Importance of Pre-Approval
      • Pre-qual is not enough
    • Doing your due-diligence
      • Condo Checklist
      • Tax Credit FAQs
    • Setting right expectations
      • Explaining Normal sale/Short Sale/REO
      • Turn Times
    • Using critical deadlines to get them off the fence
  • 23. Deadlines
  • 24. The Paradox of NOW! Highest prices BUT LOWEST payment Lowest prices BUT HIGHEST payment Sales Price $425,000 $403,750 $382,500 Loan Amount $410,125 $389,618 $369,112 Interest Rate 5.00% 5.50% 6.00% P&I Payment $2,240 $2251 $2,252
  • 25.  
  • 26. Hot Features of FHA
    • 3.500% down payment
    • 3% seller concessions
    • All funds can be gifted
    • Non-Occupant co-borrower allowed
    • No reserve requirements
    • No declining market policy
    • Min credit score of 620 (going to 640)
  • 27. FHA Lending is Exploding
    • Now represents >30% of loans being written
    • 80% of FHA purchase loans are First Time Buyers
    • 1 out of 2 FTHBs are choosing FHA
    • Tailor Made for:
      • First time buyers
      • Borrowers with little to no money
      • Buyers with less than perfect credit
  • 28. FHA will keep growing
    • A recent survey of buyer attitudes found that
    • More than one-third of buyers don’t plan to make down payments larger than 10%
    • One-fifth of buyers don’t plan to put any money down.
    • Only 22% of buyers said they planned to make down payments that exceeds 20%
    • Source – Zillow.com
  • 29. Unlock the value
    • Embrace FTHB
    • Market Right
    • Partner Right
    • Close More Homes
  • 30. Let’s Connect www.Facebook.com/LendingExpert www.Twitter.com/ShashankTweets Blog www.LendingExpertBlog.com E-mail [email_address] Cell 408.905.6261 Media www.SanJoseRealTime.com www.Facebook.com/FirstTimeHomeBuying101

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