Reports continue to tell us that buyers are pushing back. However, manufacturer lead times are shrinking; interest rates are up; application volume is down; and the sales pipeline is shrinking. Now these are NOT the signals of a catastrophic recession, but rather a slowdown or a pause, in which buyers are waiting to see what will happen with declining housing pricing and increased affordability, with lower rates, buy-downs, and incentives.
The GOOD NEWS…. the underlying demand for housing remains extremely strong. Some estimate that as many as 4-8 million housing units are needed. Some of this demand will be met by multi-family housing, which is dramatically rising, but the desire for home ownership remains strong with the biggest market EVER – Millennials, with Gen Z soon to follow. And Boomers and Gen X remain a strong cash buyer class.
And now more than ever, manufactured and modular housing offers high value and quality at reduced costs. NOW is our time to grow our business and prosper. Even in a soft demand environment. BUT every lead matters; every close counts.
Here are some tips on how to cultivate leads, qualify them, “meet” them, and close them.
1. Lead generation is critical. If you never ask for the business, you will never get it. Engage in active branding and a positive lead generation campaign.
- Request former buyers to recommend you for housing needs for friends and family. Add a referral fee – $500. Highly successful salespeople reinforce their value by harvesting the friends and family of their previous happiest customers. This is where emails are important, because you can solicit their referrals with email campaigns.
- Ask for testimonials and pictures of happy customers in their homes to use in social media and website. Celebrate your success and delighted home buyers.
- Socially post at least 2 times a week on Facebook, Instagram, and TikTok. Boost if necessary to your service area (select by county and focus on renters).
- Channel interested home buyers to your website to look at models available and stories of satisfied customers; again, ask for their business – submit an inquiry.
- Direct to a specific person at your location – make it personal. “I’m Chris, ask for me.”
2. Upon receiving a lead, JUMP on it. It will not get better with time. In today’s digital world, people expect an immediate response. You can’t wait hours, you have to respond in minutes. The faster you respond, the more likely that interested shopper will become your trusted customer.
3. Establish a qualifying, nurturing, selling PROCESS. Use a CRM, Customer Relationship Management system. Being organized builds confidence and trust with your prospects and customers. And the use of a CRM system allows you to focus on what’s in front of you. You rely on the CRM to remind you of activities required to move your home buyer along their journey of home ownership. There are simple CRM systems available, like MHcrm.com, and some that are very complex.
4. Get the home buyer to meet you virtually or in person, tour the homes, and let them further explain their needs. This is the opportunity for YOU to build trust. But when you finally get face to face, remember the meet-up is their meeting. YOU NEED TO LISTEN. Get to know them and you will build trust. Find them a home meeting their needs and budget, and you will close them, and they will send you friends and family.
5. Continue to narrow their search for a home. Don’t allow your discussions to wander aimlessly from one house to another. NARROW the search. With every house shown, you need to narrow the choices, focusing on what they want, need, and a home they can afford.
6. ASK for the sale. Ultimately, you are not a tour guide; you’re their home consultant. You are leading them to home ownership. There is a natural end. And it is your customer buying a home of their own. Get them there; sooner than later.
7. Explain to your home buyers the process and what to expect. There will be delays. Let them know that up front as you ask for their business.
8. Post-sales attention is critical. Stay in touch throughout the building, delivery, set up, and finishing process. COMMUNICATE with your customer – they will have questions. Be patient, make this an extraordinary experience, and they will send more home buyers to you.
9. Stay in touch. Remember birthdays, move-in dates, and holidays. Also, your CRM system is a great tool. Log it into your future schedule and it will remind you when to send an email, snail mail, or stop by.
10. Share their story with a picture on your social media. Tag them. It’s a celebration of home ownership, and they want to share it with their friends and family. You’ve started a long-lasting relationship. Make it a good one.
So you can lament about the rates, the lack of customers, and the shrinking deal board. OR you can get active and stay aggressive in your market to showcase your product, your business, and YOU. Anticipate a not-too-distant rise of buyers coming back to the market when they realize that it’s the payment they can afford, interest rates may increase, but home ownership remains the goal, sooner rather than later. Creating housing security and wealth accumulation for a family is far better in a home of their own than in a rental. Let them know IT’S POSSIBLE. Use a PROCESS.
