You can share things wIth buyers early on, and win deals, without heartache. It’s a fact that it pays to share important aspects of a deal with buyers early on. Real estate deals can fall through for a variety of reasons, and often they do. However, if real estate agents or brokers just take the time to educate their customers on the process, they can avoid most deal-breaking scenarios. It helps to educate buyers about problems they may encounter during a transaction, and how they are usually resolved. At the same time, it is important to explain your role in the entire deal-making process.
The home purchase process can be emotionally charged and is time-sensitive for various reasons. So you should make every effort to avoid last-minute and sometimes nasty surprises, at all costs. You don’t want your client to show up with a truckload of furniture and belongings on closing day with no place to stay! Or incur unnecessary and non-budgeted charges for temporary accommodation and storage, because they can’t move in for three days.
If You Beat the Sellers up on Price, Don’t Expect Concessions Later
In the real estate business, everybody wants to make a good deal. And the goal of most buyers is to drive an interested seller into a bargain purchase. However, it is a simple fact that if you beat the sellers up on price, don’t expect concessions later. Every successful agent will explain this simple fact to the buyer. And more importantly, about how this will influence the deal in almost every aspect. Right through to closing the deal.
Let your buyer know that driving down the seller to their rock-bottom price, comes with consequences. Firstly, the seller will most likely not agree to further concessions for repairs, the home inspection may throw up later down the line. Secondly, the seller may not be supportive throughout the process. By educating your buyers about this fact, you will hopefully avoid the deal falling through. Be it due to seller remorse or inspection-related negotiations.
Share With Buyers That A Low First Offer Can Backfire.
A slowing market with rising inventory creates false expectations. Sometimes buyers will make low-ball offers to test the sellers’ motivation. In most situations, sellers then come back with a high counteroffer to draw the buyer up to a realistic price. A price that reflects both, market conditions and the condition of their property. And one can expect a mutually beneficial deal, centered around this price point.
However, a low-ball approach can just as easily backfire on the seller. This happens with first-time sellers who’ve cared for and invested in maintaining their homes for many years. Being asked to let go of their much-loved home at a very low price can offend them. On many occasions, sellers have countered the offers with significantly higher prices, even above the going rate. Leaving buyers, no choice but to pay, as they were genuinely interested in the property.
Do The Comparative Market Analysis Before Making Your Offer.
It helps to share important aspects of a deal with buyers early on, especially when you get the question “What price should I offer for this home?”, just throwing up a number is not the best approach. Infact, it can be dangerous to commence negotiations, without actually knowing the going rate for your property, as you could easily underprice the property and lose good money. On the other hand, you could just as easily price yourself out of the market, meaning that the property may take forever to sell. Or even not sell at all, as the buyer could easily pick up a similar property at a much lower price.
A comprehensive market analysis of similar properties for sale in the area should be the first step of the selling process. The results of the analysis help compare multiple properties, based on location, economy, and present housing circumstances. They can include housing-related developments that have not occurred yet. And also factor in home price fluctuations based on developments that may affect future housing trends. A detailed market analysis should yield a factual and realistic price range for your property. The buyer can then choose an offer price, that is based on accurate market statistics. If legally allowed, you can also divulge aspects of seller motivation with the buyer, in addition to factors affecting market changes. In short, provide buyers with the information that helps them to feel comfortable about buying the property, at a price they agree.
Share With Buyers That You Are Not an Expert In All Areas.
All too often, real estate agents and brokers get into trouble by trying “Over help” customers. Instead of focusing on their role as the broker, they involve themselves in areas that they shouldn’t be, leading to the loss of a deal. The truth is that you are a real estate agent. You’re not an inspector, a lawyer, an appraiser, or an engineer. So, do not try to take on their roles and responsibilities believing that you’re providing service to your clients, as it can easily undermine a deal. Wrong and misleading responses based on inaccurate facts and figures are a surefire deal-breaker.
When asked about details or information outside your area of expertise, “I don’t know” is the correct response. Especially when followed with “But I’ll help you to find out”. Such an approach enhances your value to the customer. By being honest about your knowledge and helping to locate the appropriate and competent professionals to answer their questions, you gain their trust and facilitate the deal.
Inform Buyers Clearly, This is How You Make Your Living
Many agents, especially hungry novices, sometimes burn themselves out early in the deal. They make every effort to show great numbers of homes to a potential buyer, and then wait for the buyer to revert. The same buyer, then calls a few days later, only to say he completed the deal with another agent. And purchased a property, he had seen earlier, leading to a lost sale and heartache.
If you are leaving no stone unturned and devoting your valuable time to helping buyers find the home of their dreams – you also want to execute a buyer representation agreement. Successful real estate agents and buyers are experts at explaining this to customers early on in the deal. And they make every effort at getting this agreement in writing, in securing their commission if the deal does conclude successfully. Choose the right setting and explain to buyers early on, they must pay you for your efforts.
Advise Buyers To Hold Off Buying That New Furniture Until After Closing
Many buyers today, are purchasing homes at the top end of what they can afford, driven by slick marketing campaigns and lifestyle aspirations. Meaning, there isn’t any room left in their loan qualification score. It’s no surprise that potentially signed deals are lost just days before closing, with most of the documentation sealed. However, the lender did a last-minute credit check and found several thousand dollars of new furniture had just been purchased on a credit card! Advise your buyers to avoid any significant credit changes or make expensive purchases in the pre-closing phase of the deal. The new furniture they bought won’t be of any use if they lose the very home they intend to use it in!
Share With Buyers – Delays Happen. Don’t End Up Temporarily Homeless.
The process of closing a property deal is complicated and depends on several activities. With so many things involved in a closing, it’s not unusual to come across last-minute delays. Some delays are beyond the buyer’s control and can move the closing date a few days farther out. Most times this is due to loan documents, as the lender wants to verify the appraisals, survey, title, and all other documents before releasing the funds. A delay in any one stage of the process leads to the closing completion later than expected.
Though they cannot always avoid delays, try to educate your customers on all the different stages of closure and the level of documentation and approvals that lead to a successful closing. Make them aware of problems they may encounter during a transaction, and help them to prepare in advance.
How we can help?
We have over 35 years of experience that can help you navigate a real estate deal successfully and with minimum hassle. We can review agreements, and provide comprehensive property management services in Pembroke Pines, South Florida. Our experts will guide you through the entire process, and provide the support needed at every stage of a successful property closure. Look no further than Real Property Management Premier.
Contact us online or call 954-800-4433 and ask our property managers about our services in detail.
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