Mortgage rates are still well above 7%, though they have come down a tick since reaching a new high for the year (7.49%). Many would-be buyers are temporarily priced out of the market, thanks to the impact of those rates on the monthly mortgage payment.
Some buyers, though, are still able to afford the home they want, but they’ve backed away from the market after losing out on homes that received 20+ bids before rates climbed over 7%.
The more affordability improves, the more competition buyers are likely to face. But for buyers not currently priced out of the market, the reverse is true, too.
Thing is, a lot of buyers out there are not aware that competition has gone down. That’s where you come in.
Last week, on the Knowledge Brokers Podcast, Tom Toole shared a text script he’s been using lately to take advantage of this opportunity for buyers and get conversations started.
We’ve tested this with our team. We got a response literally right away… And this is a script. It doesn’t have to be a text. We template this stuff so everyone can use it.
Script #1
The first script is the one Tom and his team have used—with near-instant results.
“Hey, there, [Name]. Before you make up your mind about your housing plans this year, the good news is that our team is seeing opportunities in the marketplace. The current rate climate has caused the highest number of homes to become available all year—and less competition amongst homebuyers. Would you be open-minded to setting up a quick call to strategize around your real estate goals?”
It’s simple and effective. Tom and his team are getting responses all day with this script.
Script #2
The script is similar to the previous one in that you’re presenting the opportunity to the buyer (based on fact) and asking if they’d be interested in having a conversation with you about it.
In this second one, Tom leads off with a brief opening—reminding the buyer that he’s following up like he said he would. He’s keeping his promise to stay in touch and to deliver value when he has an opportunity to do so. From there, he leads right into the fact and the question, making good use of the Phil Jones OFQ formula.
“Hey, [Name], this is Tom Toole, following up with you like I said I would. I know we talked before and you were kind of holding off. Before you make up your mind about your plans this year, we’re seeing some opportunities in the marketplace. That’s the good news. The current rate climate has caused more homes to become available, and less competition. Does that sound like something you want to maybe learn more about?”
This script naturally leads to conversations with any who respond wanting to know more. And those who can afford to buy right now are more likely to do so.
Both the above scripts have three things going for them:
It’s very easy scripting, but it’s specific and value-based. And that’s what knowledge brokers are gonna be doing between now and the next 11-12-13 weeks up until the holiday season comes up.
You can also turn this into a small group event, giving up to 10 buyers at a time a chance to ask questions and exchange ideas:
I would also think about inviting the entire database to a 10-person Zoom. Why not talk to 10 homebuyers/home shoppers at the same time—a 10-person Zoom around the topic, ‘Why 7.5% mortgage rates have increased your chances of buying a home’… Use a couple of the slides to show them that days on market are increasing, that offers in your market are declining, and that if [rates] go back, like Mortgage Banker Association says, to 6.2%, what’s going to happen. All that competition is gonna come back in.
Use whatever fact-based visuals you have at your fingertips to show buyers with the means to move forward with a home purchase why it may be to their advantage to do so. No one knows just how short this window of opportunity may prove to be.
