Why investors make good clients
The real estate market continues to attract savvy investors looking for a good return. If you’re seeking a niche customer base to appeal to, investor clients are a lucrative market to tap. Here are a few reasons why attracting investor clients is good for your business.
A 2011 study conducted by the American Housing Survey found that the average buyer stays in a single-family home for 13 years before moving. In contrast, investors buy and sell as the markets dictate, which means more transactions for you. Once your investors grow and build their portfolios, you might be guiding them through multiple properties and transactions at a time.
By removing the emotions and sentiment that often accompanies homebuying, those purchasing properties for investment tend to make quicker decisions. Investor clients can more easily see a property for its merits, rentability or resale value. But this also means that they can be more demanding, requiring efficiency, accuracy and diligence from their real estate agent. Be prepared to give it 110 percent when it comes to investor clients.
Investor clients are typically entering the game because they’ve already established the finances required to purchase. Of course this doesn’t mean that all investors will be —ly it some may simply be eager to enter the market. But generally speaking, investor clients, especially experienced investors, are confident in how they’ll finance the property.
Don’t forget about your homeowners!
While investor clients are valuable, it’s not to say that you should abandon homeowners entirely. Those looking for their primary property can still be valuable sources for honest and powerful testimonials and referrals to build your business. And you never know when a homeowner can turn into an investor down the road. Many real estate agents also feel good about helping a family or first-time homebuyers find their perfect property and this aspect shouldn’t be undervalued either.