Welcome to the end of 2016. Yes, we are much closer than you think! Now the calendar shows 65 days left in the year, it really doesn’t hit the point about how few of those days can be used to begin a transaction that will close in 2016! Think about it, how many days its taking for you to go from contract to closing? How many days does it take from pre-approval to closing? When you look at those numbers, it really brings into focus how little time actually remains to meet someone and get them through the process.
Each one of you should know these important transactional numbers. Without really knowing the average time it takes from first contact to closing, and then contract to closing, you really can’t frame your time and your objectives effectively. So take a few minutes and get really clear about your numbers.
- How many days do I average to take my clients from first contact to closing?
- How many days does it take for my team to get from contract to closing?
Once you know these numbers you have something to work on. The contact to closing number is really your gestation period. Some may be faster and others longer, but it is your average or your client, in your market! The next number is your conversion period. How many days does it take me and my team to go from contract to closing? There are many factors, some you control and others you don’t. But it is important for you to know because it will become a very valuable tool and marketing strategy as we roll into November!
First, once you know how long it takes you to go from contract to closing, look at the calendar and locate the very last day you will accept a new file into your system that will close before the end of the year. DO NOT DO THIS WITHOUT TALKING TO YOUR TEAM! You never know what days you will be open for the holidays. This year, Christmas and New Year’s fall on a Sunday. Will you be able to close on December 23rd and December 26th? How about December 30th? If you aren’t 100% certain, go ask!
Now that you know what days are available to you to close transactions, find out if your TEAM has and restrictions on their time? Vacations and time off happen frequently this time of year so you had better find out!
Once you are clear on those items, you can start backing out the days so you know the last possible day you can take in a loan to get it done by the end of the year. You also have to know your capacity! Just because you are open, doesn’t mean you will have the capacity to close all the loans. After all, you can only close so many each day.
Now you have a picture and it’s time to share the message! You need to get out there and let people know exactly how many days they have left to put together a deal and get it closed by the end of the year! This can be a huge marketing tool! This significant competitive advantage can be yours IF you do the work and know the facts. Share your date with all of your referral partners! Call all of your pre-approved borrowers and share than information with them. Have your referral partners contact their clients and let them know the timeline. You may find your competitors will stop taking applications to close this year long before you do!
Every day you can share information and create activity opens the door to possibility. Some people may not be able to put a deal together in time, but they will just become a great start to your 2017! And remember, nobody ever had a bad year with a great first quarter! So do the math. Check your numbers and with your people. Then get out there and share your countdown so people can make an informed choice!