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How to score working with First-Time Home Buyers
 

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.

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    How to score working with First-Time Home Buyers How to score working with First-Time Home Buyers Presentation Transcript

    • Scoring with First Time Home Buyers Unlocking Hidden Value Shashank Shekhar Arcus Lending
    • 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
    • Agenda
    • %age of FTHBs Source - NAR
    • Home Affordability Peaks! Source – www.car.org
    • Age of First Time Home Buyers Source - NAR
    • Status of FTHBs Source - NAR
    • Primary reason for buying the first home Source - NAR
    •  
    • 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
    • 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
    • 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
    • Echo Boomers Effect
      • Born 1981-2000
      • This age group projected to increase by 2 million & 3.4 million*
      • *based on 2 different projections
    • They will reverse the decline in 25-44 age group.
    • 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
      • Huge surge in Starter Homes
    •  
    • Use of internet to search for homes Source - NAR
    • First step taken during the Home Buying process Source - NAR
    •  
    • 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
    • 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
    • Deadlines
    • 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
    •  
    • 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)
    • 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
    • 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
    • Unlock the value
      • Embrace FTHB
      • Market Right
      • Partner Right
      • Close More Homes
    • 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