5 WAYS TO TRANSFORM

5 Ways to Transform Renters into Owners

Perhaps the largest demographic of untapped business lies in the rental market. From major cities and suburbs to rural communities—renters across generations are opting to rent rather than own. The question is: why? For starters, many Americans are undereducated about the inventory and financing options available that might suit their budget and lifestyle. Secondly, many would-be homeowners have difficulty visualizing the potential investment of purchasing property, and how homeownership can build wealth and security in the long-term.

As an agent, you’re always on the lookout for potential clientele. Now, to guide renters toward the real estate market, keep a few of these strategies in mind as you meet and greet this untapped demographic.

1Show renters that purchasing a home isn’t impossible Possibly the biggest hurdle for renters is believing homeownership is possible. Beyond saving for a down payment and boosting credit scores, there are dozen more factors to consider: affording utilities, homeowner’s insurance, renovations, property taxes, and more. Besides that, assembling pay stubs, finding an agent, arranging house tours, negotiating a price, and timing the transition are all major considerations to surmount. One way to combat this thinking is to make the process transparent and demystified. Find examples of past clients who made the leap successfully, or profile the average buyer in your marketplace and see how that renter compares. Provide evidence that it’s been done before and can be done again, then build a game plan from there. create a road-map to ownership It’s no secret that buying a home can feel overwhelming. Compared to signing a yearlong lease on an apartment, taking on the house-hunting process is a daunting affair. That’s where your expertise as an agent comes into play. Consider making a checklist, or step-by-step road-map, that guides clients through the process from start to finish. This way, you’ll manage expectations and create a path to ownership that’s specific, instead of abstract. They won’t have to wonder what goes into buying a home when they can look at an interactive site or read a document and see the steps outlined before them, with you there to

2Help would-be homebuyers guide the way.

3Collaborate with mortgage professionals to find the right financing opportunities Many renters aren’t aware of the variety of mortgage financing options out there that cater to first-timers, offer low down payments, or down payment assistance. Most buyers believe that the standard 20% down is a hard and fast rule, when in reality, there’s far more flexibility out there to cater to renters where they are. There are even loan options catering to freelance workers, renovation options, and other unconventional routes to ownership. Work with a mortgage pro and find the route that suits your renter best.

4Compare and contrast rental rates with monthly mortgage payments One way to convince renters to make the shift is to demonstrate the savings potential of paying into a monthly mortgage, rather than throwing away rent on a property they don’t own. To do this, draw up the average rental rates in your area, then find some potential listings that would demand a similar amount in monthly mortgage payments. Sometimes placing these numbers and images sideby-side can prove to renters that what they manage to pay monthly in rent, they can pay monthly in a mortgage—while building a lasting asset.

5Paint the big picture For most, renting isn’t the most sustainable financial option when it comes to housing. Rents rise, families grow, and retirement looms. Building a financial future and homeownership go hand-in-hand. When planned appropriately, buying a home can create a path toward retirement and position homeowners in a better place for further investment in the future. A rental has little security or investment returns to offer, while owning a home makes a renter king or queen of the castle.

Prospecting renters as potential homebuyers may seem like a time-intensive way to cultivate new clients, but logic is on your side. Keep these tips in mind as you broach the conversation with renters in your hometown. All it takes is clear-cut value proposition and a listening ear.

JANELLE PIERZINA

Top Agent Janelle Pierzina spearheads her work under the banner of Edina Realty serving buyers and sellers in Minneapolis and its south-metro region.

Janelle Pierzina began her career in real estate thirteen years ago when she made a splash in New York’s luxury rental market. “I’ve always been a people person,” she says. “I love working with different personalities and staying on-the-go, so real estate has been a natural match.” Ultimately, Janelle’s professional path wound back to Minneapolis, where she has since built a reputation for client-centric service with a personal touch. Today, Janelle spearheads her work under the banner of Edina Realty and in conjunction with her tightknit, two-person team. Serving buyers and sellers in Minneapolis and its south-metro region, a majority of her business is driven by repeat and referral clientele who trust her track record of success. What’s more, Janelle has long been a public-facing persona. Prior to her real estate debut, Janelle launched a parallel career as a reality TV

star back in 2005, with regular appearances on Big Brother and The Amazing Race. “It definitely set me apart,” she says. “People feel like they know me and already have a connection with me because they’ve been watching me for decades.” Along with her

agent expertise and television stardom has come a strong social media presence, where buyers and sellers benefit from wide-ranging exposure among Janelle’s more than 200,000 followers. To stay connected with clients past and present on a local level,

“My clients know I have their best interests at heart, and I always take care of them,” Janelle says. “At the end of the day, I have a love for getting the deal together and helping people. That’s what keeps me going.”

Janelle typically hosts seasonal client appreciation events that bring new and familiar faces together.

When listing properties, Janelle emphasizes the importance of an immersive marketing campaign that leaves prospective buyers with a memorable first impression. “When you hire someone to sell your property, it’s all about the marketing,” she says. All properties are equipped with high-end professional photography and videography, including custom twilight and architectural shots that showcase homes in their finest lights. From there, each listing enjoys peak visibility across the leading online listing platforms and on Janelle’s highly-trafficked social media outlets. This year, Janelle is poised to surpass thirty properties sold, even amidst a busy shooting schedule.

Beyond the office, Janelle gives back to her community through her support of Give Kids the World, an organization that grants wishes to children who are facing life-threatening illnesses. In her remaining free hours, she most enjoys time spent with

loved ones, and escaping to the family lake house whenever she can.

As for the future of her business, Janelle intends to keep momentum going strong. Now, with more than a decade of experience

and insight to her name and a promising road ahead, Janelle Pierzina considers what she enjoys most about her chosen field. “My clients know I have their best interests at heart, and I always take care of them,” she says. “At the end of the day, I have a love for getting the deal together and helping people. That’s what keeps me going.”

To learn more about Janelle Pierzina email JanellePierzina@edinatrealty.com, or visit www.edinarealty.com/janelle-pierzina-realtor