TOUGH MARKET STRATEGIES-- Mortgage Coach Series(ZT)

This is a "good news," "bad news" market, rates are attractive yet real estate professionals are seeing a drop in the number of new buyers looking for homes. In one state, existing home sales are down 41.2 percent from the same period last year! In difficult markets, a loan officer has to look at "tough market strategies." Events of the last few months have taken many consumers out of the market for a home and home values have decreased in many areas making it difficult for current homeowners to refinance out of variable rate loans that are due for adjustment. I believe in tough markets, you must take a "three-prong strategy" to jump-start your production.  

The first market strategy is to dig deeper into your past opportunities. Look at past clients, former Realtor and builder relationships, professionals you have met but with whom you have lost contact, and friends and family. Divide these opportunities into two areas:

1.  Highest potential yields: These targets are defined as "natural lead sources." They are easily identified by their willingness to assist you and their vast number of potential contacts. With this group, you want to make personal contact and have a plan in advance of what you want to accomplish, a purpose! Here is an example: You want to make contact with a former real estate agent with whom you use to do business, but have lost contact. A valid purpose could be to ask about his or her current production and how you might assist in increasing that production.

2.  The masses would be your second opportunity. These are people whom you have helped in the past by doing their loan. Divide these into two groups: those for whom you have e-mail addresses and those you do not. Your marketing will be in the form of education and opportunity. This could be a newsletter (electronic or paper depending on e-mail addresses), or a special report regarding the current market conditions. This contact should be monthly. It is important to comply with all state and federal "opt out" requirements.  Consult your attorney with any questions. 

Your second market strategy involves creating exceptional value. In tough times, people are looking for the best value. By value, I do not necessarily mean the best price. A loan officer who assists a Realtor in how to increase leads or improve marketing adds far more value than the best price. The loan officer who has created the "Wow" factor in the service delivered during the loan process has given extra value to the consumer. Here is a powerful statement. People will pay more if they perceive they are getting more. This "more" must be tangible and valued by the borrower such as speedy service, all phone calls returned quickly, educational material or even a thank you card! The top loan officers I coach deliver exceptional value, thus price is seldom a roadblock in the loan process. 

The third strategy in a tough market is simply "focus." It is so easy to get distracted by the negatives created in adverse situations. Champions focus on the positives and double their activities and actions. Instead of bemoaning the fact that there are fewer opportunities, champions make more opportunities by doubling their efforts. Making only two extra sales effort a day with unrelenting focus is forty extra efforts a month and four hundred and eight a year! No one who understands the power of persistence can be defeated. It beats intelligence, personality, and yes, even knowledge. What good is your mortgage knowledge if there are not enough prospects? Turn your three-prong strategy into daily action and you will surpass your own expectations! Dare to be great!