Some real estate agents love first time homebuyers and some hate them, but what if you knew that you could make commissions for years from these sweet little clients? Would you like them more then? Hang onto your hats as we talk about tips and ideas for marketing for first time home buyers!
What Is Lifetime Value In Marketing Terms?
Lifetime value is every transaction that will result from acquiring a client and doing business with them.
It could be a sale of the their first home or double dipping the sale of their home and the purchase of their moveup home. It could be the referrals they give you over the years, or referrals you get when they move away.
In the case of a first time homebuyer, lifetime value could look like this…
1. Purchases first home with you (takes a lot of time to educate them and you have to deal with advice from friends and family along the way). Say they buy a $200K starter home. Commission is $6,000 in most markets.
2. Refers their friend who just got married to you who also needs a starter home and you go through the same education, but they had a little bit bigger budget because of their wedding money and got a $250K home. Commission is $7,500.
3. Has a baby and needs more bedrooms. Sale of first home now worth $250K, $7,500 commission. Commission on purchase of move up $400K home, $12,000.
4. Gets a promotion and moves to that great school district for their kids. Commission on sale of $500K home, $15,000 and commission on $800K home, $24,000.
5. Buys a vacation home and you get the referral commission! Referral on a $500K vacation home, $3,750.
6. The kids graduate and move out so they sell their family home. Commission on $1,000,000 home, $30,000. They buy an RV and travel around the country chasing their kids for a while, and then, last but not least…
7. They want a little retirement villa so they can be snowbirds and follow the sun! Commission on $200,000 retirement home, $6K!
Total Lifetime Value… drumroll please…. $104, 250!
Are you freaking kidding me, you could earn that much from one little first time homebuyer? YES!
10 Creative Ways To Stay In Touch With Your First Time Homebuyers
All of this is awesome, but not likely to happen if you think that they will automatically call you every time they need a Realtor for the next 50 years! So here are some ways to keep in touch…
- Send them an anniversary card every year on their closing date
- Send them monthly market stats about their neighborhood and how their house value is rising (or falling)
- Text them a quick “hi” was in your neighborhood today if you are showing a house there
- Send them just listed postcards, especially if there is a home for sale in their area (get those friend referrals)
- Keep up with school news and let them know if you see anything new on the horizon like a redistricting or rising or falling school grades
- Give them “popbys” from time to to time to remind them you love them
- Start mailing them quarterly after 5 years and monthly after six
- Give them a call after they have been in their home for 7 years and ask them if they are thinking of moving (schedule it now!)
- Start a real estate referral program and ask them to recommend them to your friends
- Watch their Facebook page for news of new babies or job promotions
Do these same kinds of things as they get older. Watch for graduations and job transfers. See if they are taking vacations to the same spots each year.
Mind your people and just be interested in their lives!
It is so worth it to keep in touch because keeping a past client is 100 times easier than finding a new client!