Buy Again AfterNurturing 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...
My Recent Treadmill Purchase– The salesman talked to my wife for 30 minutes presenting the features (not  many benefits) o...
My Recent Treadmill Purchase– I wanted to see them in real life and I found out that they were both in stock  at Sears.– A...
What does this have to do with nurturing      the comeback homebuyer?          What’s         up, bro?
What does this have to do with nurturing      the comeback homebuyer? Think about my buying process. – How did the buying ...
What does this have to do with nurturing      the comeback homebuyer? Compare this to the way that consumers now buy homes.
What does this have to do with nurturing      the comeback homebuyer? For mortgage loan originators to effectively nurture...
ZMOT = Zero Moment of Truth                           http://www.zeromomentoftruth.com/ZMOT was mentioned in “The Digital ...
The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS a...
The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS a...
The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS a...
The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS a...
What does this have to do with nurturing      the comeback homebuyer?          What’s         up, bro?
First thing: You have to fully commit to the fact    that purchase leads take longer to close.                            ...
Second thing: You have to make a lasting impression on – and keep in contact with – your buyer so you don’t              l...
The Current Buyer Life Cycle                                      http://bit.ly/scM47B“The Lifecycle of Today’s Home Buyer...
The Current Buyer Life Cycle                                     http://bit.ly/scM47BIn order to take advantage of those s...
The Current Buyer Life Cycle                                        http://bit.ly/scM47BPhase One - DiscoveryThe Discovery...
The Current Buyer Life Cycle                                        http://bit.ly/scM47BPhase Two – ResearchThe Research p...
The Current Buyer Life Cycle                                       http://bit.ly/scM47BPhase Three - SelectionBuyers becom...
The Current Buyer Life Cycle                                        http://bit.ly/scM47BPhase Four – ClosingThe Closing ph...
The Current Buyer Life Cycle              http://bit.ly/scM47Bs
Nurturing the Comeback Homebuyer
Target the Market– Where?     •   Blogs, Guest Blog, Zillow Mortgage Advice, Trulia Voices, etc.     •   Retargeting (Rema...
Nurturing the Comeback Homebuyer
Example keyword searches that were hitting my           blog post about bk, foreclosures and short salescan i buy a home a...
Keyword Research                               Google AdWords Keyword Tool            https://adwords.google.com/o/Targeti...
Initial Rough Draft of Sitemap• Additional things I would include:    – Instructional videos (think zappos)    – Links to ...
Nurturing the Comeback Homebuyer
Example Lead From Site
Capture the Lead– Buyer is probably in the Discovery Process or Research Process.– You have to modify your “closing statem...
Meet Needs, Gain Confidence          and Leave ImpressionThings That You Have To Provide To The Borrower AtThis Stage Incl...
Hope
Hope
Knowledge
Knowledge– Get Started Booklets   •   Target Date for Purchase   •   Copy of Credit Report   •   Personalized Consultation...
Tools & Resources           to Keep Them Off Google– Information on Your Website– Entry Into Your CRM– Mortgage Calculator...
Tools & Resourcesto Keep Them Off Google
Tools & Resourcesto Keep Them Off Google
Tools & Resourcesto Keep Them Off Google
Tools & Resourcesto Keep Them Off Google
Meet Needs, Gain Confidence          and Leave ImpressionWhat You Need To Know:– Detailed Product Knowledge   • Underwriti...
WCGWLoss 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 clien...
Lead Management SystemA typical outline of a lead management process might follow the following steps:–   Business engages...
Customer Relationship ManagementCustomer relationship management (CRM) is a model for managing a company’sinteractions wit...
Customer Relationship Management
Customer Relationship Management•   Dear [[First Name]],••   As we begin the processing of your loan on [[Property Address...
Cultivate the Lead• To maximize opportunity, you need to work with a preferred partner real  estate agent / brokerage.   –...
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, notthrough the presentation of “the next best...
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Buy Again After: Nurturing the Comeback Homebuyer

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Presentation made at the Mortgage Tech Summit in Orange County, CA on February 28, 2013. www.mortgagetechsummit.com

Published in: Real Estate

Buy Again After: Nurturing the Comeback Homebuyer

  1. 1. Buy Again AfterNurturing the Comeback Homebuyer #MTS13OC
  2. 2. Introduction
  3. 3. 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.
  4. 4. 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…
  5. 5. 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!”
  6. 6. What does this have to do with nurturing the comeback homebuyer? What’s up, bro?
  7. 7. What does this have to do with nurturing the comeback homebuyer? 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)?
  8. 8. What does this have to do with nurturing the comeback homebuyer? Compare this to the way that consumers now buy homes.
  9. 9. What does this have to do with nurturing the comeback homebuyer? For mortgage loan originators to effectively nurture purchase leads (including comeback homebuyers), they have to understand the following two concepts: 1)ZMOT 2)The Current Buyer Life Cycle
  10. 10. ZMOT = Zero Moment of Truth http://www.zeromomentoftruth.com/ZMOT was mentioned in “The Digital House Hunt: Consumer and Market Trends inReal 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. …
  11. 11. The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS and Google
  12. 12. The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS and Google
  13. 13. The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS and Google
  14. 14. The Digital House Hunt: Consumer and Market Trends in Real EstateA Joint Study from the National Association of REALTORS and Google
  15. 15. What does this have to do with nurturing the comeback homebuyer? What’s up, bro?
  16. 16. 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!
  17. 17. 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”.
  18. 18. The Current Buyer Life Cycle http://bit.ly/scM47B“The Lifecycle of Today’s Home Buyer: What Every Brokerage CEO Must Know toSurvive” 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.
  19. 19. The Current Buyer Life Cycle http://bit.ly/scM47BIn order to take advantage of those strategies, brokers first need to grasp thenew mindset and behavior of today’s buyers.All consumers, regardless of their age or lifestyle, basically engage in the samefour behavioral phases during the process of buying a new home. I’ll refer tothese phases as follows:1. Discovery,2. Research,3. Selection and4. Closing.
  20. 20. The Current Buyer Life Cycle http://bit.ly/scM47BPhase One - DiscoveryThe 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 lovemore space” or “a quieter neighborhood”) or by a pressing event, such as jobrelocation, a new baby or retirement. During this phase, consumers acquaint (orreacquaint) themselves with• the buying process itself,• the tools available to assist with their search and, of course,• the market landscape.
  21. 21. The Current Buyer Life Cycle http://bit.ly/scM47BPhase Two – ResearchThe Research phase begins when the buyer starts to actively seek out more specificinformation 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 usingthe 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
  22. 22. The Current Buyer Life Cycle http://bit.ly/scM47BPhase Three - SelectionBuyers become more discriminating during the Selection phase.At this point, they feel comfortable with their knowledge of the marketplace and havea good idea of what they want and what they can realistically get.The number of home attributes they are considering increases substantially as theyshorten their list of target homes.
  23. 23. The Current Buyer Life Cycle http://bit.ly/scM47BPhase Four – ClosingThe Closing phase is the purview of the professional agent. It’s a sales function asopposed to marketing.The buyer’s search has come to an end and it’s time to seal the deal.
  24. 24. The Current Buyer Life Cycle http://bit.ly/scM47Bs
  25. 25. Nurturing the Comeback Homebuyer
  26. 26. 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.
  27. 27. Nurturing the Comeback Homebuyer
  28. 28. Example keyword searches that were hitting my blog post about bk, foreclosures and short salescan 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 dismissedbk 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 wait time from bankruptcy until new mortgage can becan i get fha loan with multiple bankruptcies obtainedcan 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
  29. 29. Keyword Research Google AdWords Keyword Tool https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEYWORD_IDEASKeyword Competition Global Monthly Searches Dec-10 Nov-10after foreclosure process 0.21 590 480 480buy a home after foreclosure 0.13 1900 1900 2400buy again 0.1 6600 4400 3600buy again after - - - -buy home after foreclosure 0.13 1900 1900 2400buying a house after a foreclosure 0.17 3600 3600 3600buying a house after foreclosure 0.17 3600 3600 3600buying after foreclosure 0.16 3600 3600 3600can i buy a home after foreclosure 0.11 1300 1300 1600can i buy a house after a foreclosure 0.11 1300 1300 1600can i buy a house after a short sale 0.08 880 1000 880can i buy a house after foreclosure 0.11 1300 1300 1600
  30. 30. Initial Rough Draft of Sitemap• Additional things I would include: – Instructional videos (think zappos) – Links to critical tools offered by referral partners
  31. 31. Nurturing the Comeback Homebuyer
  32. 32. Example Lead From Site
  33. 33. 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?” Prepare Present CloseResolve Concerns if Needed Close Again …Get them into your database.
  34. 34. Meet Needs, Gain Confidence and Leave ImpressionThings That You Have To Provide To The Borrower AtThis Stage Include:– Hope– Knowledge– Tools to Keep Them Off Google– Resources
  35. 35. Hope
  36. 36. Hope
  37. 37. Knowledge
  38. 38. Knowledge– Get Started Booklets • Target Date for Purchase • Copy of Credit Report • Personalized Consultation • Agreed Upon Milestones • List of Resources * pdf and hardcopy
  39. 39. Tools & Resources to 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
  40. 40. Tools & Resourcesto Keep Them Off Google
  41. 41. Tools & Resourcesto Keep Them Off Google
  42. 42. Tools & Resourcesto Keep Them Off Google
  43. 43. Tools & Resourcesto Keep Them Off Google
  44. 44. Meet Needs, Gain Confidence and Leave ImpressionWhat You Need To Know:– Detailed Product Knowledge • Underwriting Guidelines • Waiting Periods– Credit Analysis and Repair Strategies– WCGW
  45. 45. WCGWLoss of money and reputation
  46. 46. 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
  47. 47. Lead Management SystemA 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.– Respondents 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
  48. 48. Customer Relationship ManagementCustomer relationship management (CRM) is a model for managing a company’sinteractions 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
  49. 49. Customer Relationship Management
  50. 50. Customer Relationship Management• 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
  51. 51. 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
  52. 52. To Maximize Opportunity, You Need To Work With A Preferred Partner Real Estate Agent / Brokerage.
  53. 53. Capture the AgentCapture the relationship by focusing on creating a backlog, notthrough 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.

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