Dear Sales Pros:
Friday’s interest rates for a 30-year fixed loan came in around 3.7%. So assuming inflation is averaging around 3%, there’s only a .71% gap between inflation and what home buyers will pay in interest.
What it means for the buyer:
Perfect storm for prices:
Not only are interest rates low, but prices are historically low, too. So yeah, I’d say the time to buy is now.
More spending power:
Homebuyers can get more home for the same payment or they can spend less money and and then put a new car in the garage (likely at a higher interest rate)! After they close, of course.
What it means to you–the new home sales professional:
Use the info as a way to create urgency and speed up the process:
New home sales pros need to put their own energy and enthusiasm around the benefits. Use your passion and conviction to communicate what a great time it is to buy (create urgency) and instill certainty in the economic climate.
Don’t forget though–this is a closing technique to use only after you’ve found the best home for your prospect. No matter the circumstantial reasons that may compel someone to buy, you need to make sure that you provide the solution for their situation.
Get your current price sheet and calculate what the payment would be based on today’s interest rates versus what they’d be at at 4.5%, 5.5%, and so on. Use this knowledge to help demonstrate the affordability and overall awesomeness of buying now.
And use it as an excuse to call your prospects who are on the fence or have a long timeframe!
This is a great opportunity–for both you and your buyers. Maximize it.
Here’s to earning what you’re worth!
Contributed by Jason Forrest: