Capital Area REALTOR® March/April 2017

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In an environment where interest rates continue to rise, how do you approach clients that may be on the fence? Do rising interest rates change your marketing plan?


coaches, mentors and trains new and experienced real estate agents to transform their business by mastering her proven systems for success. She is a firm believer in managing expectations and her goal is to elevate the perception of real estate agents among the general public through education so every client has an amazing real estate experience. Candy’s unique training methods have shown agents what it takes to be successful! Inman News selected Candy as one of the Top 25 Real Estate Coaches in 2016. Learn more at

To say today’s real estate buyer is savvy is an understatement. They keep a close eye on home prices, housing inventory, and of course, interest rates.

The decision to buy a house is not one that is made on a whim. By the time the buyer comes to a real estate agent they have done a great deal of research, saved some money and checked out their credit score. To say today’s real estate buyer is savvy is an understatement. They keep a close eye on home prices, housing inventory, and of course, interest rates. The volatility of interest rates has been in the news for years, yet are still at historically low levels. Since the Presidential election in November we’ve seen interest rates changing on an almost daily basis. But the increases and decreases have been modest and buyers are well aware of those changes. It doesn’t matter where the interest rates are if you have to move. People buy houses when they have a strong or life-changing need. Home-buying decisions are made when people get married, divorce, have children, or downsize. People do what they have to do. As real estate agents, we can’t make anyone buy a house; we don’t have that kind of power. We can’t push people so hard that they feel uncomfortable with us. What we can do is inform the buyers of the changes in the interest rates and market conditions and how those factors impact their home-buying power. Simply put, we present the information and let them come to their own conclusion. Their motivation will be the key as to whether or not they buy now or in the future.

The state of interest rates may or may not change how you market yourself or your business. As interest rates change, you could do a marketing piece on how rising interest rates can impact how much house your clients can afford. Your marketing plan is about keeping your name in front of prospective clients and providing information that is valuable to the consumer. This reinforces your commitment to educating them and building that relationship so they trust you. When listing a house it’s a good idea to have your favorite lender put together a sheet showing the current interest rate and what the mortgage would be for the various types of financing. That simple visual could help buyers on the fence realize they could afford to buy a house.