Did you know that 78% of all first time buyers rented an apartment (condo or home) prior to buying their first home? This is according to the National Association of Realtors 2009 Survey of Home Buyers and Home Sellers.
Advertising executives are paid millions of dollars to attract first time buyers of their products in hopes of keeping them as loyal customers throughout their lifetime. Think about ads created for children and teens. Companies like Nike, Kellogg's, Apple, Google and MTV have created exclusive ad campaigns to attract and sell products to the 13-27 year age group in order to get them (or their parents) to identify with the brand.
The same theory can be applied to the first-time home buyer/renters' market. Get them do their first mortgage loan with you, get referrals, and if you treat them right and market to them consistently, you will have a book of clients that will purchase or refinance with you when they need another mortgage.
However, most mortgage ads are pretty boring. You will find a picture of the loan officer, a list of the types of loans they provide (which the buying public does not understand in the first place) and maybe a little history about the company. Other than the pictures and phone numbers, there is no compelling reason for anyone to call you because your ad looks exactly like your competitor's ads.
A successful ad is packed with information - and benefits - that the reader of the ad can easily see when they glance at the ad. It begins with the headline!
Here is one sample: When Your Lease Is Up, Do You Know Where You Are Going To Live?
If you dissect this simple headline, you are prompting the reader (the apartment dweller) to think about the future - are they going to renew their lease or should they purchase a home instead? (Sample post cards can be found at
The body of the ad needs to provide information easily interpreted by the reader so they can imagine themselves owning a home, instead of renting.
For example:
Why are you still renting when you can own a home instead?
Your Current Rent Buys a Home Valued At*
$600
$700
$800
$900
$1,000
*Based on 4.5%, (include APR % here) 1-year ARM, 30-year term on approved credit. Rates are based on your credit history and may change daily.
NOTE: Anytime you quote a payment, you must provide an APR disclosure. We suggest that you run a TIL statement so the payment information is accurate.
Generating a response: All great ads contain a "call to action." By offering a free report on the mistakes first-time homebuyers make, people are calling you for information. They have literally raised their hand, identified themselves as renters, and have asked information and your help!
For example: "Call (800 number) for a copy of a FREE REPORT on the mistakes that renters make in purchasing a home. The FREE REPORT will be sent to you the next day.
Your report should tell your clients why they need to be pre-approved for their mortgage ahead of time; where they can easily get money for the down payment; what to do if they have had credit problems; and most important, that you will be the one to refer them to a real estate agent of your choice.
To sum it all up:
1. The headline is designed to attract renters - to get them thinking about where they are going to live when their lease is up for renewal.
2. The body of the ad contains useful information so they can see how their monthly rent payment will translate into the purchase price of a home.
3. The offer of a free report is the response mechanism you are providing for people to call you for more information.
A few words of advice! When you receive calls for the free report, be sure to send it out immediately. I travel the country and yes, I call and ask for a free report to be sent to me. I have gotten free reports from two weeks to 30 days after I have placed the telephone call.
Be sure to follow up 10 days after sending the free report to make sure they received it. Ask for the appointment right then and there. After all, you are assuming that the free report has told them everything they need to know about the mistakes people make and why they should do business with you. Consider this as your personal brochure.
Marketing to renters with effective advertising gives you the chance to market to them first (just like the big guys). They have called you and have identified themselves as renters - way before they called a real estate agent - or even let their family and friends know they might consider purchasing a home.
We will bet you that your ad will be different - and attract more leads than you can say grace over!
Download free Mortgage Talking Points covering the new Reg Z rules at
