First Time Buyers: The weight in gold
As many of you have expressed before, first time buyers can be a real pain, they can take up so much time, they have not got an idea of how the house buying process works, and they ask the same questions which you have answered for them previously… yet whether this is good news for you or not, they are potentially the most valuable clients.
I am sure you will agree, there are only so many times people will move house, increase their mortgage value, consolidate their debts, and/or do some form of home improvements. The long-term plan for many is to eventually down size and pay off their mortgage. Not only that, but with more lenders now talking about offering 10-year fixed rate mortgages, we know the re-mortgage market income opportunities may become fewer and fewer in the future. So, how can you help your future clients for the long-term whilst still maximising your income?
How can you retain loyal clients?
Think about how many times have you had a first-time buyer contact you wanting to buy a property, yet they are not in the position to do so?
As the professional you know there are many reasons as to why they might not be ready yet…
- Short on their deposit
- Damaged credit score
- Recently started a new job or have gone self-employed.
Just to name a few.
Now ask yourself, what advice did you give them to help them plan to get the mortgage they need? Did you inform them how much extra they needed to save, how to improve their credit rating, the lenders typical minimum employment requirements?
Did you advise them how they can financially protect their current lifestyle should they stop receiving their income? Afterall, should they stop receiving their income, they will not be able to purchase a property in the near future.
You are the one with the experience and you also know you have a duty of care to your client. Would you agree this is the perfect opportunity to explain to your clients about the importance of having a policy in place to protection their income from the outset? Many first-time buyers have no idea about protection products. However, by you explaining that this benefit is available it will offer choice, demonstrate your expertise, and gain you more respect.
On another note, if they do end up in a position without an income you will have lost the sale. Yet on a positive note, should you offer this benefit and even close the sale they will be your client. They will return to you when they find their first house and even refer you to their friends, family members, and work colleague because of the knowledgeable and helpful service you have offered from the start. The online broker and the local estate agent mortgage broker would not do this, ensure you are different and give yourself that competitive edge.
For those first-time buyer clients that informed you that they were in rented accommodation, how many times did you check they have adequate cover for their contents? There is a likely possibility they may not even have any at all! However, going that ‘extra mile’ that everybody talks about allows you to be different, educate your clients, and eliminate the future use of comparison sites for your clients when they do get on the property ladder and you go to propose that Defaqto 5* rated buildings and contents cover.
With rising house prices and inflation being at its highest for 40 years, the challenges that first-time buyers face with getting on the property ladder unfortunately does not seem to be improving anytime soon. As a result, the “Bank of Mom and Dad” may be desired more now than ever before by your first-time buyer clients to help them raise the deposit they need. This is where there is a significant appetite for later life lending so rather than miss out, why not propose to parents/grandparents about the possibility of taking out equity release to help their children/grandchildren purchase their first home. Offering solutions and sharing your knowledge is key to your clients.
The choice for you and your clients:
As you will see The Right DA Club offers choice and power to its members. We know it is a two-way working relationship and we will always work in partnership with you to support you to offer the very best for your clients whilst maximising your earning potential where you want to. Although some of these income opportunities highlighted are smaller than others, the most important factor to take into consider is you have choice.
You have the choice where you can provide a whole of market insurance panel with non-loaded premiums for your clients, you have the option of quoting from five buildings & contents providers, you have access to a panel of over 90 lenders with 1000’s of products, and you can offer Equity Release and Private Medical Insurance, where we have the best offerings in the financial services network space. These services are all encouraged to be included within your schedule of services, your website, email signature, and highlighted in your introductory call. From the start, you have the choice to ring fence all your clients’ needs under one roof and be that adviser that shows professionalism, skill, and pays attention. This is something that you should not be keeping quiet about, the next first-time buyer enquiry you have- remember you can offer it all!
If you do wish to utilise and make the most of all the services you can provide to your clients, but you are unsure on where to start, please get in touch, we are happy to help! Our skilled team of Development Managers, and Product Managers want to work with you to help you and your business grow.