As First Home Buyers (FHB) return to the market, now is the ideal time to brush up on the best ways to engage with this unique and valuable client.
As a broker, one of the best parts of the job is meeting a wide variety of people. And while this keeps the job interesting, it also demands an ability to effectively communicate with different borrowers at different stages of life.
To assist in this task, the MFAA has consulted with First Home Buyer specialist Daniel Baxter from First Home Buyer Buddy, to create this ‘First things brokers need to know when engaging with First Home Buyers’ list:
1. Be careful of overwhelming the FHB
Using too much finance and industry talk such as acronyms and governing bodies may make it sound like you know what you’re talking about, but none of that means anything to a first home buyer if it goes over their head. It’s more likely that you are overwhelming them than impressing them. Not to sound condescending, however, your discussions should be on a ‘need to know’ basis with their eyes firmly on the prize each step of the way (so they don’t get confused or too far ahead of themselves). They’ll have a much less stressful experience if you can break it down for them and deliver your expertise in a simple to follow process.
2. Keep their eyes on the prize
Ensure the FHB is always looking at the big picture, which is achieving the goal of buying their first home. This may come as a shock to some brokers, but it is important to remember your service (the home loan) is not what your client wants. If they could buy their first home without having to get a home loan they would. Your service is actually an obstacle for them. If you can make it about the ‘home’ rather than the ‘home loan’ you will keep the FHB focused and excited by the process.
3. They will have a lot of questions for you
This is normal when you’ve never done something before and it’s no different when buying a home for the first time. But the good news is, you can pre-empt many of the questions your first home buyer client will have and address them in your first appointment (and with subsequent nurture emails). One tip, never make clients feel stupid for not knowing something, don’t talk down to them, just because they’re not familiar with the home loan or property buying process doesn’t mean they’re uneducated. A simple comment such as ‘please stop me if you already know this’ indicates you’re not making assumptions about their level of knowledge, you’re just being thorough with the information you’re sharing with them.
4. First Home buyers will often be your biggest fans and referrers
Especially when you do a great job for them. Think about it… chances are your first home buyer client is going through these big life decisions (engagements, weddings, babies, buying a house) at the same time their circle of friends are as well. First home buyers are also likely to be in the age group where they still have strong friendships and socialise more with each other which means, ‘word of mouth referrals’ are put on steroids by this demographic.
5. They are hungry and eager for help and advice so why not give it to them?
We’ve run some of the biggest First Home Buyer events and one thing I can assure you is they are out there looking for help and guidance and the resources to get them started. If you can provide them with a ton of value and at the same time position yourself as the ‘go-to expert’ in your area, you will build rapport ten times faster and they will seek you out. It’s a much different conversation when someone sees you as the ideal person to be able to solve their problem. You don’t need to sell your services at that point, you just need to find your client the right solution.
If you want more resources to help you market your business to first home buyers and other customer segments, visit the MFAA's members-only MyResources website.
