The $8,000 tax credit passed by Congress last winter to stimulate the true estate market is potentially nearing its end on November 30. While Congress and the National Association of Realtors battle over extending the credit, the looming deadline can mean opportunities for proactive property and mortgage professionals.
The National Association of Realtors reports that, on average, the house buying cycle takes 45-60 days. Because the deadline for the tax credit falls by the end of November, there’s sufficient time for you to seize the minute and make fully sure your contacts are aware with this opportunity.
So, how do a property professional or mortgage broker use this tax credit to improve business?
The single most critical thing to do is make sure people find out about it.
Have a portion of one’s marketing budget over the following month and let everyone in your professional circle find out about the credit and the approaching deadline. Provide contact information then when it prompts them to action, they are able to contact you and get started.
The fastest method to touch base to your sphere of influence is through email marketing. It’s a price efficient way to reach your whole set of potential clients and works especially well for time-sensitive opportunities.
This is an chance for property agents and mortgage professionals to touch base to potential customers.
Real-estate agents: Review your contact list and touch base to potential clients and past clients with all the necessary information on the tax credit, and include some appropriate listings. This ensures that you’ve educated every contact so that those thinking of buying can make an informed purchase.
Mortgage professionals: Get facing property agents with the message now. Provide them with a checklist of what their buyers should have prepared, so once they find the house they want to buy, they’ve most of the paperwork underway and are pre-approved.
There are still potential buyers who are uninformed with this tax credit.
In accordance with Mark Zandi, chief economist for Moody’s Economy.com, the tax credit will draw about 400,000 buyers into industry this year. Though that bodes well for a, a current AP article stated that some buyers aren’t even aware of the credit until they put a present in on a home.
Because the tax break was important industry news, everyone involved in the property industry is well aware of it. For anyone selling their home through property agents, most sellers were informed of it through their listing agent. For the average indivdual not actively involved in the property market however, this newsworthy item was easily missed.
Utilising the “Google Insight” tool to analyze U.S top Massachusetts realtors search volume for the word “first-time homebuyer tax credit” reveals an interesting trend. Search volume shows the lag in the middle months(March 2009-August 2009) of the tax credit offer.
As you can see, searches regarding this topic spiked when it was initially announced in early 2009. However, the search volume for the topic dropped sharply in March before it began to pick up again in July, this means everyone was not actively looking online for extra information during those middle months. This suggests that after them wasn’t making news, people either weren’t contemplating it, or simply didn’t find out about it. Either way the jump at first and increase by the end suggests that media coverage offered two small windows of opportunity to learn concerning the credit before interest fell off.
There’s a straightforward method to take action in the short window available.
When opportunity arises, sometimes the simple act of informing those in your sphere of influence makes all of the difference.
Email marketing is straightforward, cost-effective, and ideal for reaching a sizable band of people in a short amount of time. It’s the quickest way, with minimal amount of effort and lead-time, to make sure that the masses find out about the tax credit and the looming deadline (full disclosure, the author is a Vice President at XL Technologies, which gives email marketing services).
Whilst the deadline approaches, taking a proactive stance may benefit your chance at success now and using email marketing to keep people informed can help build trust and maintain relationships in the long term.
The underside line is to ensure everyone in your sphere of influence knows that that the tax credit can be obtained and set to expire soon.
Real-estate professionals have endured a bruising couple of years. There’s been so much negative news about owning real estate. On the other hand, this press coverage actually moves consumers to think about property ownership in an optimistic light again.
The professional property community should embrace this good news, and ensure that you get the word-out. It’s encouraging for a and can be a good move for the people who pro-actively market this government program.