Have you ever heard the phrase "Buyers Are Liars?" I am here to tell you that they are not liars! Buyers need us to discover their needs and wants. Most buyers also need our professional help, our guidance, and look to us to educate them.
Never Assume that Buyers...
1) Understand the local market. Most buyers believe what they hear. What they hear from other Realtors, from the media, and from friends and family. It is our job to educated them on the true local market conditions in their target area. We need to make them understand the AVG days on market, List to sale ratios, absorption rates and area pricing trends. Educate!
2) Understand Agency. Most buyers, especially first time home buyers do not understand agency. It always amazes me how some buyers find properties. They search online, gather listings, and then call the Listing agent to set up a showing. Most buyers are unaware of agency and do not understand the fiduciary duties of a Listing agent. It is your job to educate potential buyers on the importance of agency before they look for homes.
3) Understand How We Get Paid. Most buyers think they have to pay a buyers agent. In my area the seller always pays the buyers agent (unless the property is listed by a For Sale by owner, and no compensation is offered). I meet a lot of buyers for the first time and they always ask me what my fees are? Buyers are confused! Let buyers know that they do not pay you if the property is represented in the multiple listing service. Make this clear in your marketing messages to buyers.
4) Understand Our Real Estate Contracts. Most buyers do not understand our contracts. We sometimes assume that they understand real estate terminology, the purchase offer contracts, and all the addendum's / disclosures of the seller. It is our responsibility to explain the whole contract. This can be explained at the beginning of the buying process or once an offer is written. Take the time to educate your client of the contract process. This will show professionalism and build trust through the whole process.
5) Understand the Purpose of a Home Inspection. Most buyers do not understand that the home inspection is a contingency to the contract if performed. This home inspection is for their protection. Most are unaware of how contingencies work, and that they need to remove their contingency or decide not to purchase the home. Some buyers think the purpose of the home inspection is to give the buyer the ability to negotiate again to get the home for less money. Of course this can happen, but it is usually not the purpose of a home inspection.
6) Understand the Negotiation Process. Most buyers do not know how to negotiate and look to us to help them. Most first time homebuyers are unaware with how the process works. Most do not understand the market as most real estate professionals do. Most do not understand pricing trends in neighborhoods. Most do not understand that offering the wrong amount on a home can hurt them and not help them reach their goals. Most do not understand multiple offers or contingent and recall clauses. The buyer make the final decision, but it is our job to guide them by education and professional advice.
7) Understand Their Legal Rights. Most buyers do not understand the legal aspect to real estate transactions. Instead of advising buyers of their legal rights, I always recommend that they hire a real estate attorney. Where I practice, there are three attorneys involved in the real estate transaction ( the sellers, buyers, and bank attorney) You can educate them to the roles of each, and elementary real estate law, but leave the legal advice to the professionals.
8) Understand the Purpose of the Final Walk Through. Most buyers do not understand why a final walk through is necessary. I have found many issues with a property at the time of a final walk through that did not exist when the offer was made. Or, items were missing from the property that should have stayed in the home, such as a refrigerator. Moreover, items were left at the property that did not belong, such as paint cans, or furniture and debris.
9) Understand the Loan Process. Most Buyers that have never purchased a home do not uunderstand how the loan process works. I would recommend obtaining at least three mortgage professionals that you can recommend to buyers. Make sure that these mortgage professionals operate their business as you would. Their job is going to be to educate and explain the mortgage process to your buyers.
10) Understand Your Website, IDX, and How to Search for Homes. With 87% of buyers starting the process on the Internet, as agents we assume that these buyers understand real estate technology and how to process all this information. Think about it, most real estate agents do not understand this new technology. The shift in real estate to the Internet is a good thing, but also a bad thing if we do not make our websites user friendly and still provide guidance on how to search for homes online. Example:When I meet a new buyer for the first time, often the buyer is holding pages and pages of real estate printouts from the Internet. The reason for this is that buyers do not understand that they can obtain all this information from one source, rather than going to 10 different websites... Once I explain that I want to simplify their search and they no longer have to search on 10 different brokers websites, my clients can not thank me enough. Instead of terms such as "Search the MLS", use the phrase, "Search for Homes", or "Home Search" Most buyers do not know what MLS or IDX stands for.
This is only a short list on what buyers need our help on. We as an industry must understand that even though real estate has transformed into an open exchange of data and information, most buyers today need our help in processing this information. One step for all agents is to design a buyer packet or a simple checklist for the buyer client. Another suggestion would be to have email campaigns or video to explain the buying process to potential prospects on your search. Bottom line, educate your clients and you will be different than your competition!
For more information visit my website at http://www.CNYAgent.com or call 315-882-6610
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Love your post. Hate the phrase "buyers are liars."