What better way of knowing who needs a home purchase loan than identifying those who are listing their home for sale? After all, if they are selling their house, surely they’ll be in the market to buy another one soon. MLS data has been available for quite some time, but up until recently, it wasn’t mass-compiled. Now that it is, by accessing consumers who have recently listed their home for sale, you are able to pre-qualify for their next home purchase before your competition has an opportunity to solicit them.
For 90 days, we tracked the results of “Client A’s” campaigns with this marketing effort. The approach was simple … send an offer that has proven to work with other purchase market demographics to those who listed their homes each week and analyze the results.
We found that more than 85 percent of these respondents were selling with the intention to buy their next home, while only 10 percent planned to rent. Of these respondents, many of them (more than 90 percent) were in a credit-positive profile, where extending a pre-qualification was possible. The remaining five percent were those who were selling their home as a result of a pre-foreclosure/short sale.
So what does this tell us? The vast majority of consumers selling their homes are creditworthy to buy their next one and receptive to offers that will help them get pre-qualified for it. While there are consumers who simply cannot be helped due to extenuating circumstances, the overall mass of people selling their home is a ripened vine ready for harvest. When contemplating how you can fill your pipeline with new purchase business, take serious consideration of those who are actively selling (and thus buying) their home.
For nearly 20 years, K. Justin Restaino has provided the most effective turn-key marketing campaigns with direct mail for the mortgage industry. After a two-year hiatus to originate loans first-hand, he’s even better equipped as director of marketing and business development at Redstone Print and Mail to give his clients the guidance needed for repeatable marketing efforts.
This Sponosred Editorial originally appeared in the July 2019 print edition of National Mortgage Professional Magazine.