Creative Strategies to Generate New Business Opportunities in a Purchase Market
Last year's record low interest rates helped whip up a frenzy of refinance activity as homeowners scrambled to lock in the savings on their monthly mortgage payment. But as the refi boom has ebbed – there's only so many homes to be refinanced – loan originators now find themselves operating within a competitive and fast-moving purchase market.
While some LOs are already well positioned to succeed via their established network of referring Realtor and builder partners, other originators will find it much more difficult to generate the level of business they've become accustomed to.
For these LOs it is key to get more creative with the way they market their business and go beyond repeated appeals to Realtors or spending money on expensive advertising campaigns.
There are many ways to increase an LO's visibility, build awareness for their services, and generate some additional business. Here are a few of our favorite non-traditional strategies:
Partner with Local Businesses
Businesses are always looking to add to their employee benefits package in order to make themselves more attractive to prospective hires. This is an opportunity for crafty LOs to develop an exclusive offer for the business' employees.
The offer could really be anything such as discounted closing costs, crediting fees at closing, or even working with a Realtor on a co-branded offering to expand the benefits further, helping not only secure more business but also growing a potentially fruitful referral relationship.
Many businesses will not only jump at the opportunity to add to their benefits package at no cost, but will also allow you to send periodic communications to their employees in order to introduce yourself, talk about the services you are providing to the company, and offer educational information.
Help Plan or Sponsor Local Events
Every community has a calendar of events or social gatherings, whether they're for a charitable cause, a holiday, or to celebrate the community's most treasured qualities and pastimes.
All of these events require planning and most will require fundraising or sponsorship, providing opportunities for an LO to get involved with their local community and get themselves and their company some visibility in the process.
If you have a budget for sponsorship, these events can be a great way to get your brand in front of a group of people from your area.
Don't have a budget? Offer the skills you've honed running your own business to aid in planning or to help fundraise and call potential sponsors.
Whatever you can do to get involved, be visible, network with other stakeholders, and get the side benefit of contributing to your community in a positive way.
Cultivate Relationships with Non-Traditional Referral Partners
Developing relationships with potential referral sources that are outside the traditional Realtor/builder box is a great way to expand your network as well as generate new business opportunities.
There are many conversations about real estate and real estate investment happening every day with financial services professionals, accountants, divorce/estate attorneys, etc.
They may not be as direct an industry fit as a Realtor or builder, but these professionals have the ear of their client and with the stock market and home equity values reaching record highs, they're having more conversations than ever about diversification and investment.
There's Still a Great Reason for Borrowers to Refinance
Sure, many people have already refinanced their home to take advantage of last year's historically low interest rates, but there are still some opportunities in this market to work your database.
At the end of last year, tappable home equity had reached an all-time high of $7.3 trillion and surging home prices in this year's hot market have only served to increase that number even more.
For anyone who hasn't already jumped at lowering their rate, or maybe a borrower who just purchased their home two years ago and the math didn't quite make sense, now could be a great time to tap into some of that newfound equity with a cash-out refinance.
And the nice thing about developing a cash-out refinance campaign is that it's free and can be run while the majority of an LO's resources go into generating new business.
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