What Exactly is "FOMO" and how can it be used to close deals faster. Well, FOMO is something that we all have in common and have experienced at one point or another. The "Fear of Missing Out" can be an incredibility powerful emotion, especially when buying a home or making an investment. Nobody likes missing out on something that they feel could benefit them, right? This is very true when it comes to presenting a great deal to a client and how you leverage "FOMO" can make or break this deal.
So, there are three highly defining factors that create FOMO and help close a deal faster. Let me first say though, that utilizing FOMO honestly and knowledgeably will go a lot farther than used unethically. I'll me explain. To start using a FOMO strategy, you must be able to get your client 1) Excited, 2) show potential, and most importantly 3) create urgency. But how can we do this effectively?
Getting people excited about a property comes down to the facts that you present them. Having strong market intelligence will be the key here. Like if you know about that new development down the street that will increase the quality of life for a specific area. Or, how about the fact that this area has better schools, bigger parks, close shopping centers, or less noise. With this market understanding and your ability to match it with what your client’s desires will get them excited and be the first step in the process.
Now showing the potential of a property will put things into perspective of what exactly is being missed out on. For example, knowing that a buying a home and putting and extra $10k into rehabbing the property will generate a 72% ROI on your projected returns within 3 years - well sounds like we on our way to a good deal here. How about a deal with a specific rental rate that allows you to cover your cost and start seeing cash flow revenues from day one? Presenting this information to your client so that they know what the potential of a property is and how they are going to WIN on an amazing deal will create FOMO.
Finally, and by far the most important, is to leverage your prospect’s FOMO by selling with urgency. Letting your client know that a property will be gone within a week if they don’t act right now will turn up that FOMO feeling. This example comes true too often in the real estate market because good deals move fast and are hard to come by at times which your clients’ need to understand. The best way to implement your FOMO strategy is to combine all three of these steps. Make sure your meeting your clients desires, show them how they will WIN in the future, and finally, that if they don’t act right now, that they will be missing out on a great deal.