I read recently that the recent drop in interest rates has bumped up the “re-fi population” to 6.7 million borrowers from 5.2 million last month, according to a report put out by Black Knight Financial Services.
How many of those homeowners did you sell a home to in the last 8–10 years? You now have a very good reason to reach out to your successful homebuyers and provide them with this news. For many homeowners, the barrier to refinancing was inadequate equity, a disruption in employment or simply bad timing in the interest rate markets. When rates were lower people were not in a financial position to refinance for many reasons. Still for others, it could simply be a lack of awareness of the financial markets and the current interest rate environment.
Delivering valuable and timely information to your clients is one of the best ways to grow extraordinary customer relationships. In these times of extremely low inventory, the agent with the listing wins every time. Connecting with your homeowners consistently is the best way to stay top of mind when they are considering a move.
However, this information regarding declining rates and rising values could also spark a conversation about listings. Research and anecdotal evidence shows that many homeowners do not have any idea what refinancing options are available to them. They are often unaware of the amount of equity in their home and of their personal buying power. There continues to be so much negative press about the availability of mortgage credit that people who are well qualified to move up don’t believe that they may qualify. You have an opportunity to raise awareness and in the process, generate a couple of listing possibilities!
Timely and value-added communication with customers is key. This simple act of service could help them save money today or on future mortgage payments, which could put them on a path to new housing opportunities. Ongoing conversations with customers bring more value than any recipe card or sports team event calendar ever will.