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Loan Officer Sales and Marketing Plan Targets First Time Home Buyers

The housing market has a new niche for Mortgage Professionals and Realtors. The $8,000 tax credit for first time home buyers presents an incentive to work together, using a business marketing plan. This plan will coordinate efforts to assist this new niche in finding and purchasing their first home and generate additional customers.

The housing downturn has created significant demand for home ownership, especially among first-time home buyers (FTHB), according to a survey on Realtor.com. That is great news for the real estate market, but there are some significant challenges that Realtors and Mortgage Professionals will face.

First challenge: Looming Deadline with NO PLAN

November 30th, 2009 is the date the tax credit goes away. That’s 5 months from the day this article was written, which seems like a long time but the reality is that it will be here before we know it. Those who plan on taking advantage of this opportunity need to have a well thought out, fool-proof plan to execute. The sad reality is that people have been/were so busy with refinance business that they didn’t have time to build a plan. Others are starving for direction and want a plan but don’t have the “know-how” to build one. A strategic sales and marketing plan includes tactics that keep your plan within the necessary timeline.

Second challenge: Weak Relationships

FTHBs are tricky and require a strong relationship and good communication between the Realtor and Loan Officer. As a result of the recent low interest rate environment or “mini refi-boom, mortgage companies focused much of their efforts and time on capturing the refinance opportunities, not building relationships with Realtors. The result: many Realtors were left unattended. Relationship marketing tactics are needed to generate a successful partnership to meet this challenge.

Third challenge: Weak Value Propositions

Everyone knows that Loan Officers need to partner with Realtors but the question is, “why would they partner with you?” Good service and low rates are overused clich├ęs and don’t differentiate. Relationships are great, but at the end of the day the relationship needs to lead to “value creation” for both parties for it to be sustainable. A sales marketing plan will outline the strategy needed to create value for the Loan Officer and Realtor.

Fourth challenge: Education Gap

The Obama administration is hoping that a recently enacted tax credit can generate housing demand and help mop up the existing unsold inventory. But according to a survey by Move, Inc.–which operates Realtor.com–nearly half (47%) of home buyers don’t even know the tax credit exists! A marketing communication plan is needed to target the first time home buyer educating them about this tax incentive.

Fifth challenge: Fear in the Marketplace

  • 52% of Americans are concerned that they or someone they know will face foreclosure in the next six to 12 months.
  • 18.9% (one out of five) of homeowners plan to take advantage of the administration’s new program to help prevent foreclosures.
  • 21% of all homeowners with a mortgage contacted a lender to restructure their loan in the last 12 months.
  • Half (10.6%) of those homeowners that contacted their lender experienced success while 5% still await an answer.
  • 27.1% of adults believe that they or someone they know may default on their mortgage because of unemployment or because they owe more on their home than it’s worth.

I won’t even begin to mention the media’s contribution to this fear. The reality is that people are scared and need guidance. The question is , “who will they trust?” They will trust those whom they have a strong relationship with and/or those who have unshakeable credibility. To meet this challenge create a marketing plan that brands you as experienced in your field and a knowledgeable professional that can be trusted.

The good news in all of this is that there is a ton of opportunity out there. Take a look at the statistics of when Americans are planning on buying:

  • 23% of all adults plan to purchase a home in the next five years
  • 5.8% within next 12 months,
  • 12.8% within the next two years

Here is the opportunity -

First-time Home Buyers make up over half (53.5%) of the market, and the government is offering them an $8,000 tax credit to purchase a house. But here’s the kicker: 47.6% of Americans don’t know about the tax credit! That’s almost half the American population! What this means to you is that a lot of people want to buy a home in the next 12 months and most of them are FTHBs who aren’t even aware of a huge incentive ($8,000 tax credit).

Okay, so now you see the opportunity, and the question that should be going through your mind is, “how do I maximize this opportunity given the challenges outlined above?” Great question!

It is for this reason that The Million Dollar Challenge was created. The Million Dollar Mortgage Challenge is a call to action for Loan Officers to partner together with Realtors in helping First Time Home Buyers receive $1,000,000 in tax credits. It provides sales and marketing plan information that will produce the desired results for the Loan Officer, Real Estate Agent, and the home buyer.

Quick Look on Sales and Marketing Plan

Every company’s success may be traced on how solid they built their sales and marketing plan. It will help you outline your marketing efforts and also help dictate the set of people you will target. The marketing plan must be the foundation of every relationship you have on existing customers and potential costumers. To get the essence of the business objectives, it’s always advantageous to have a business plan. But how certain are you that your company owns a powerful sales and marketing plan? Here’s a quick overview of the four essential parts you shouldn’t miss.

Understanding the customers is the most essential part of the plan. A sales and marketing plan must be devised to determine who are the target market or audience of your business. It must be able to relate and recognize the needs of your clients. This will serve as a guiding light on the types of marketing tactics you can utilize to convince them to purchase or avail your products or services. Second thing is to establish an image for your company. Revealing your company’s story to the public will help you gain more brand or product awareness and will build a robust foundation in the market. A sales and marketing plan must incorporate a strategy to let your company deliver the message you are trying to convey to your target audience.

Speaking of which, the third essential part of a sales and marketing plan must be a detailed description of your marketing strategy and tactics. This will rapidly increase your customer loyalty and sales retention. This is the portion where the medium of the communication and channels of distribution are also taken into account. You may declare if you want to use an Internet platform, opt for a TV spot, radio advertisement and other promotional efforts. This is important because this will be your tool to drive and increase your company’s sales and profit.

Last but not the least, the budget. Confirm if your sales and marketing plan is competent to forecast the number of sales or profit your company will be making from your marketing efforts. This will declare the approximated profit expectation as soon as the duration of the campaign is over. This will judge if your campaign is successful in achieving your company’s financial goals or not.

Handling a business if overwhelming but to help you cope with the challenges, a sales and marketing plan will be very useful.

Sales and Marketing Training – Uncover 4 Interesting Secrets to Make Money Through Training

If you have proven track of record in the field of selling, you can make additional money by sharing your expertise through sales and marketing trainings. Here’s what you need to do:

1. The first thing that you need to do is to design training sessions for every aspect of selling. Design programs for prospecting, product knowledge, lead generation, closing a sale, and promoting repeat business. This is better compare to just offering comprehensive training programs as other people might only need specific information.

2. Build your own website. It would work to your advantage if you offer your training programs online so you can easily tap the global market. Build your own website and let it speak volumes about your expertise. Talk about the trainings that you are offering in details and give your prospects information on how they can easily sign up.

3. List building. Aside from waiting for your prospects to visit your website, it would also help if you reach out to them. Start by obtaining their email addresses and their phone numbers. You can hire some people who are expert in list building to get highly targeted list for you. You can then call or email your potential clients to convince them to sign up.

4. Freebies and discounts. Offering your prospects something for free will surely help you capture their attention in no time. Give discounts or freebies to those who sign up early to encourage these people to take action right away. Don’t worry as you don’t need to spend a fortune on your freebies as you can give away short ebooks, ecourses, and audio products that are related to selling.