Adding Value Through Metrics
We constantly hear in the business, “create value and add doubt”. How does one do this?
Sometimes, it’s best to arm yourself with statistics and metrics on your local market. CoreLogic recently released their monthly Market Pulse Report and there are some interesting metrics that came from the release. One thing to note, is that home purchase activity amongst investors is at an all time high. The number of investors purchasing in 2018, was the highest it has been in nearly two decades. The profile of these investors are not institutional investors, but rather smaller investors just getting into the game.
Per the CoreLogic report, the investment rate in the US housing market reached the highest rate since tracking started in 1999. That rate is 11.3%. Write this percentage down and remember it! These smaller investors are responsible for increasing investor home buying activity. They grew from 48% of the investor purchased homes in 2013 to more than 60% in 2018. These are our clients in our databases that are going out and buying their 1st, 2nd, or 3rd rental.
Many of us at Xperience have a big business built through investors so how do we use this data for our clients? What stories does this create?
Sellers: Know the 11.3% number to establish value and create doubt. If another listing agent did not bring this buyer pool and target buyer up in conversation, they probably aren't targeting them and will miss 11.3% of potential buyers.
Buyers: Have a real conversation about competition with investors. Give them insight as to who they are going to be competing with. Facilitate conversations on how people are diversifying their portfolios with real estate investments.
Lead Generation: There are lots of ways one can leverage these metrics and statistics for their lead generation activities.
Find entry level rentals and create links to your CINC site. Then connect with your title rep to get a list of owners with two or more single family homes in your area.
Market your listings as "great rental possibilities" and always have a monthly rental rate target provided by property manager partners. Use the appropriate marketing language.
Offer "best buy" lists for investors.
Bring these statistics up in conversations with your clients. We, as agents, need to care about their wealth building strategy. By using these metrics, you will begin to distinguish yourself from other listing and buying agents. Establish your value and create doubt.