Let’s talk about using financing as an incentive to drive a Buy Now mentality. The team at Denim Marketing worked through the Great Recession. We know that folks buy homes in all types of markets and that sales never go to zero. We can assure you that home prices are not collapsing. Sales may be a bit bumpy, but everything will be okay. After all, we just survived a once in a 100-year pandemic!
The Denim Marketing team is prepared to help home builders and developers ensure their marketing is where it needs to be for success. With interest rates skyrocketing, we are working with home builders to double down on marketing. One of the most important messages to convey to new home shoppers is that now is still an excellent time to buy. However, with interest rates doubling, some buyers are being priced out of the market. Interest rates increasing from 3% to almost 7% makes reassuring buyers a bit tricky, but it is not impossible.
Innovation is critical in this market. Get creative with messaging. Savvy home builders create enticements to attract home shoppers and keep them interested in buying new construction homes. The phrase we hear a lot these days is, “Marry the house and date the rate.” In other words, go ahead and buy the home of your dreams, but plan to refinance when interest rates come back down in a year or so.
Let’s talk about messaging home builders can use related to financing promotions.
Rate Buy Downs
Many lenders are eager and willing to work with home builders and developers to provide homebuyers with below-market interest rates through rate buy-downs. Ask your preferred lender if they will donate half a percent to this incentive. Decreasing the rate by 2 to 3% is a big deal and helps give buyers peace of mind related to today’s higher mortgage rates.
Money Toward Closing Costs
Sweeten the deal and help buyers remove one more worry by offering money toward closing costs. We are working with home builders to provide between $2,000 and $5,000 off closing costs. This puts money back into the buyer’s pocket and helps them to afford a more expensive home or a higher interest rate.
Talk about innovation. Builders are working with mortgage lenders to include refinancing guarantees. Details vary depending on the homebuilding company, but this provides a time frame for buyers to refinance (usually a few years past closing), with the home builder paying a portion of the refinance costs – up to $4,000 in many cases.
Interest Rate Locks
For buyers worried their rate will increase between contract and closing, interest rate locks provide peace of mind. Mortgage companies work hand-in-hand with home builders to eliminate common buyers’ objections.
What else can you do to create a Buy Now attitude among prospective buyers? Use our top 10 reasons to buy a new home in your content marketing.
Here are 10 reasons to Buy a New Home Now!
- Homeownership builds wealth
- Homeowners qualify for tax deductions
- Return on Investment
- Live the American Dream
- Location…Location…Location – homes are available in a variety of locations
- Prices may never be this low again
- Lots of housing choices, including modern, traditional and farmhouse-style single-family homes and townhomes
- Flexible floor plans provide lots of options for aging in place, generational living, adding outdoor living spaces and more
- New homes incorporate innovative technology and the latest products and finishes
- Energy-efficient construction techniques and products translate into savings