Why Semi-Exclusive Mortgage Leads Fund Best
Here at InboundProspect, our expertise is in direct mail lead generation. But our interest doesn’t stop when we hand leads off to you. We also want to give you the knowledge and insight you need to convert those leads into funded mortgage loans. And, as always, sales success comes down to knowing what makes your prospects tick. With that in mind, let’s take a look at the factors that go into the rent-vs.-buy decision. What is motivating your prospects to consider buying, and what are they worried about?
One of the main factors in the rent vs. buy decision is affordability. While interest rates are low, and housing prices in most markets are reasonable, many potential homeowners have low savings and high debt. They may be worried about both coming up with a down payment and being able to afford the monthly payment along with all of their other bills.
On the other hand, rental prices are soaring. CNN Money reports that in 20 of the 35 largest markets, rental prices are rising more quickly than home values. While home values are rising at three percent, rental prices are rising at a rate of four percent. In some markets, like San Francisco and Denver, the increase in rental prices tops 10 percent. Moreover, in some of those high-dollar markets, renters pay more than 50 percent of their incomes toward housing costs, while the typical buyer pays an average of 15.3 percent.
After nearly a decade of ups-and-downs to rival the most ambitious thrill park ride, today’s housing market is primarily operating within the realm of sanity. While this has greatly reduced consumer fears that their home’s value will plummet after they buy it, it has also reduced, if not eliminated, the sense of urgency potential homeowners felt when housing prices were rising by unprecedented leaps and bounds. In other words, if consumers are approaching home ownership as an investment, they see it as a long-term rather than a short-term investment.
For families with children, schools almost always top the list of decision-influencing factors. While there will always be families eager to buy into a top-rated school district, there are advantages for renters, too. Some families choose to delay buying a home until they can afford one in their desired school district. Alternatively, in some areas, where renting is more affordable than buying, people can afford to rent in an area where they’d never be able to buy. And some people like the flexibility of being able to easily move and change schools if they’re not happy with their current school. If a prospect has kids in public schools, it’s safe to assume that will be a major factor in their decision.
Convenience vs. Permanence
Renting appeals to a lot of people because it’s convenient. There’s only one bill to pay, and if something breaks, you call the landlord to fix it. You don’t feel pressured to make updates and improvements, because it’s not your house. You don’t have to pay property taxes. If you get a job offer on the other side of the country, you can move without having to worry about selling your home. On the other hand, owning brings a sense of permanence and stability. The house is yours. You don’t have to ask permission before you can make changes to your home. The opposite is also true, of course: You’re responsible for all repairs and improvements. You’re also responsible for property taxes, which can be quite high in some areas.
Whether you’re selling mortgages or the latest high-tech gadgets, the secret to sales success is to get inside your prospect’s head. You need to understand what they’re thinking, what they hope for, and what they’re worried about. We at InboundProspect will provide you with top-notch, pre-qualified, direct mail generated, live and semi-exclusive mortgage leads, but only you can convert those mortgage leads into a sale. Thoroughly understanding the factors that go into the decision-making process will help you do that.