By Andrew Janos
As the real estate market continues to be fast-paced, the need to prepare your buyers is growing exponentially. Making sure buyers have a grasp on the market conditions and purchase process will allow you to manage expectations through the entire purchase. Here are three tips:
Get pre-approval: Preparing a buyer financially ensures that they do not fall in love with something they can’t have. In order to even put in an offer, the buyer needs a current and accurate pre-approval. Routinely, buyers push to see houses without a pre-approval, but you must resist the urge to show them without it. Your client’s buying power might be lower once a loan originator runs through all of the qualifying questions. In our fast-paced environment, one buyer could lose to another while obtaining approval to buy the house of their dreams if the other party is already prepared. It’s tough to turn down the opportunity to take clients out that call, but its important to screen them and make sure they are ready to purchase. After talking to them a bit, you might find out that they should wait until next year based on their situation. It’s not just about the type of house they are interested in, but also the right fit for their life goals and current situation.
Educate them on the market: We all know that real estate is location, location, location, but the other important ingredient is education. Take the time to explain current market conditions and what your clients can expect. They should be informed about current sales frequency and volume in conjunction with prices of sold homes. If your buyer drags their feet, they may miss out while inventory and mortgage rates are low. If a home is priced competitively, there could potentially be multiple offers made. Making sure your buyers are comfortable with the purchase process will allow for a smoother transaction.
Set the stage for first-time buyers: You are the one repeatedly facilitating sales, and if you are working with a first time buyer, they have no idea what to expect. This could be as simple as explaining the importance of mortgage contingencies and home inspections. It could also be managing expectations for counter offers on a low bid. Either way, the more that your client knows, the less stress you feel and the buyer will have more trust in you.
In the end, make sure you are following our No. 1 rule as REALTORS®: to protect your client’s best interest and allow them to have an exciting purchase. They are, after all, buying a home, which is one of the biggest decisions they will make in their life.
Andrew Janon is a vice president and salesperson with U S Spaces in Philadelphia. Connect with Andrew at andrewjanos.com.