Being a real estate agent, we have rented properties to individuals who would love to own their own home but are just too scared. It is our job to guide them and give them all of our buyer education information. They may have just rented a place for a year but when their lease is up, you hope that they will call you. Keeping that relationship going throughout the year is crucial. You, as the agent, should send emails, provide them with social media updates, traditional mailings and personal visits. These things will keep you in the back of their mind.
Here is an example of the NAR comparison scenario you can provide to them:
Over a 7-year period, a renter starts out paying $800 per month with annual increases of 5 percent, while the homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After six years, the homeowner’s payment is lower than the renter’s monthly payment. With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after three years.
During their year lease, is when they need to start saving for their down payment and talking with a mortgage broker. Each buyer needs to understand their credit score and history. If there is anything that needs to be corrected or fixed, now is the time to do so. Having your potential clients talk with their mortgage broker will help them find the best possible loan and terms. We have been in an economy where interest rates have been at an all-time low but now they are starting to shift upwards. Now is definitely the time to buy. Once their mortgage broker gives them a pre-approval amount, they will contact you. Then let the search begin.