Landlord or Investment Owner? Your Renters Are RE Leads
Many renters still think they need 20% down to buy a home. Landlords are in a unique position to explain the buying process and convert renters into buyers.
NEW YORK – Agents and brokers can help convert renters into homebuyers. When Zach Scher of Coldwell Banker Smithtown New York had a renter who said he can prepay six months of rent, Scher told him that, if so, he also had $27,000 he could put toward a down payment.
Some renters erroneously believe they need to have a 20% down payment, but Scher explained to his potential renter how consumers could put down as little as 3% and have a larger house that they would own.
Scher said the most important part of the process is changing a buyer’s mindset. With renter leads, Scher first asks them what their financial situation is to help them make the right decision. He also tells renters they can access down payment assistance programs and, if the circumstances are right, roll their closing costs into their mortgage.
He also gives renters a goal to put money aside while they’re renting so they can become a homeowner once their lease ends.
Rob Chrane of DownPaymentResource.com estimates that 84% of the properties in the United States are eligible for down payment assistance.
Source: Inman (11/11/20) Ross, Bernice
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