First Time Homebuyer Seminars
The largest chunk of millennials is now hitting 30 and they are ready to buy their first house. Even though affordability is an issue and interest rates are creeping up, there is still a large group of millennials with good jobs who are looking to buy.
I listened to a podcast last week that said when Baby Boomers were saving for a down payment for their first house, they typically had to save for 5 years. Today, on average it takes 22 years for someone to save a 20% down payment on a house.
That seems ludicrous and it goes to the heart of affordability, but I also have to say that the first homes people buy today are much different than when I bought my first home. Today they want everything Pinterest ready, including updated kitchens and baths, stainless steel appliances, granite countertops, etc.
Regardless of the affordability issue, Millennials are still buying and a great way to get their attention is to host first-time homebuyer seminars. This strategy puts you in front of several potential buyers at once, but more importantly, it gives you a reason to prospect for seller listings in starter markets. Remember, everything we do these days should be focused on getting more listings. The hook when you are prospecting for listings is that you can introduce sellers to a lot of potential buyers.
Attracting first-time homebuyers is a great way to increase your business. From a relationship perspective, if you manage the relationship well, the lifetime of that client can give you 5, 6 or 7 transactions (and that doesn’t include the referral business you can get from them). But it all depends on how well you take care of them, and how well you stay in touch. If you sell a house, you cash a commission check. If you build a relationship, you make a fortune.
Several years ago, in one of my courses I had an agent who generated over 70 transactions in 6 weeks. One of the ways he did it was hosting first-time homebuyer seminars. He was relatively new to the business, but he wasn’t afraid to prospect strangers. The great thing about prospecting first-time homebuyers is that they likely don’t already have a previous relationship with another agent.
Most agents won’t host a first-time homebuyer seminar because they are either intimidated to speak in front of an audience or they find these buyers frustrating because it is more difficult to get them qualified for financing. For those of you who are up for the challenge, how do you host a homebuyer seminar? I have some suggestions.
DON’T EXPECT PERFECTION:
When you do your first workshop, it won’t be perfect. Expect some bumps. The more of them you do, the better you will get at structuring and organizing them. Don’t be too hard on yourself the first time out.
CHOOSE THE RIGHT PARTNERS:
You need a few other people to help with marketing and delivering content. In the past I have connected with mortgage, title, and home inspectors, but I ended up doing most of the work and they were able to benefit from it. Learn from my mistakes, you need everyone to share in the workload and the investment.
* Choose partners willing to market to their database.
* They must be willing to invest $ for marketing, meeting rooms, catering, AV, etc.
* They must prepare a great PowerPoint presentation.
* Pick reputable partners. Your reputation is tied to theirs.
ORGANIZE THE AGENDA (1.5 HOURS)
* 5 min – Start on time. Welcome everyone and talk about the benefits of homeownership.
* 5 min – Outline the agenda, so they understand who the speakers are and what they will learn.
* 15 min – Introduce the mortgage professional. They talk about why it is important to get pre-qualified and how it strengthens their negotiation position when there are multiple offers.
* 15 min – Introduce the home inspector. They talk about what’s involved in a home inspection and 5 critical things to look for when buying a house.
* 15 min – Introduce the lawyer. They talk about the components of closing a sale and what’s involved.
* 15 min – You do the last 15-minute segment. Provide answers to the most frequently asked questions about the homebuying process.
* 20 min – Do NOT allow presenters to answer questions during their presentations. All questions will be answered at the end to ensure you stay on schedule. Let attendees know that the mortgage professional will meet with them individually to get them pre-qualified. Once they are qualified, the mortgage professional will give them back to you to start house hunting.
MARKETING IS CRITICALLY IMPORTANT
All of your work with be for nothing if you don’t have a critical mass of attendees.
* Send postcards into apartment buildings advertising your free seminar. Why pay rent when you can own?
* Cold call into apartment buildings to get people registered (check numbers against the DNCL).
* Create a flashy ad and pay to promote it on Facebook and Instagram. Target people between 25-35.
* Email everyone in your CRM system to invite them and ask them to pass the invite on to their friends. Your partners must do the same.
* Create a landing page or Facebook event page where people can RSVP so you can collect their contact details.
* When someone registers, send them a confirmation email with the seminar details. Send a reminder email the morning of your seminar.
MEET WITH PARTNERS ONE WEEK BEFORE
Review everyone’s PowerPoint presentations. Ensure there is consistency between the messages, but no-one is repeating content covered by someone else. Combine all presentations into one so the seminar flows well and there are no technical issues. Create handouts for the audience and include presenters’ contact details.
ZOOM OR IN-PERSON?
It is more cost effective to deliver these seminars via Zoom; however, building relationships is more easily done in person, so, if possible, book a meeting room in a hotel. Preview the meeting space before you book it! Arrive at least an hour early to ensure the room is set up properly, the temperature is not too hot/cold, handouts are on the chairs, the AV works properly, and put background music on as people arrive. Greet guests at the door and make them feel welcome. Ask them to sign in to ensure you have their correct contact details.
USE THE SEMINAR TO PROSPECT FOR LISTINGS
Use the seminar as a reason to prospect in starter home neighborhoods. Let homeowners know you are putting on a homebuyer seminar and you expect to have a lot of potential buyers for their neighborhood, have they thought about selling? This would be a great time because you can introduce their listing at your seminar, and they will immediately have prospective buyers. Ask them if they know anyone who is thinking about buying their first property because you would like to invite them to the seminar.
I personally have had tremendous success putting on these seminars. After I sold people their first house I kept in touch and as their life changed, I was able to help them move up.
Chris Leader
President
Leader’s Edge Training