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Eradicate The Confused Buyer For Good

By Gary Woltal

Real Estate Agent with Keller Williams Realty 0575737

September 11, 2009 07:03 AM

Confused Buyer It seems almost like stamping out those pesky bug problems in apartments that we have all been there and done that we need to

Eradicate The Confused Buyer For Good.

We see them constantly. Maybe the market has not bottomed out yet. My job is shaky. There will probably be a tax credit program for first time buyers enacted past this one. Interest rates could still go a little lower. I am going to wait to a few more homes to fill out this new construction neighborhood before taking the "plunge."

Now buyers with today's economy granted need to weigh their options carefully. But too many great factors like low interest rates, short sales and foreclosures available, tax credit programs, availability of hungry agents and loan officers to work with them to make a great deal happen, and just sheer steals of deals out there, make waiting much longer for the bottomest of the bottom in a market to occur sheer silliness.

So how can the real estate agent or loan officer help them "get off the fence"?

Maybe

It just seems from the buyers perspective they would just rather say "MAYBE" these days and not get off the fence. Lord knows, even NAR is running ads with all the buyers and their families sitting on the fence. You would think those sharp pickets would start hurting their little rumpuses over time.

Navigate

The trick as a real estate professional is to dispel doubts, fear and confusion with

FACTS.

Point out the good deals, the excellent financing, the once in a lifetime opportunity. Mention creative financing if that is the fit. You are not only trying to sell a home but fit financially a "solution" into their budget and to create a positive feeling lifestyle. Granted if the time horizon to stay in the new abode is less than two years, even with good deals a rental property may be the better answer. It takes educating the consumer with our teacher hat on to get them off those darn pickets.

Navigate all those waves and assist people to get where they want to go. Eradicate the confused buyer.

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Nicki Conway

RE/MAX Alliance Group - Sarasota, FL

Sarasota Fl Real Estate

Gary

So true. Realtors need to be Professional Consultants and bring all the facts to the table before they even put them in their car. There are so many hungry, desperate realtors out there now who are just giving tours and wasting their time.

Sep 12, 2009 02:02 AM

Anonymous

Tammy Vivat - Broker CA DRE #01465018

Agreed, all buyers need to feel confident about their decision to buy, especially in this climate of unprecedented instability. A competent Broker/Agent REALTOR, will educate their clients on current market conditions, inventory, values, trends and market statistics. In providing such tools to our clients, we enable them to make an informed decision, without having to push them. Those of us who stay up on the market, have been made aware by the title industry, that thousands upon thousands more REOs will be hitting the market very soon, continuing through at least 2012.

Bottom line is this; people will purchase when they feel comfortable about their decision. Granted, some will miss great deals by dragging their feet but, chances are, they won't want to miss the boat the next time a great deal comes around!

Sep 12, 2009 02:03 AM

#20

Kurt Mengle

Bridgewater Realty - Gold Canyon, AZ

Gary, I'm also telling the first time homebuyer folks that the timeline for the $8,000 tax credit is moving closer. Now may not be the time to submit an offer on a short sale. They may not close escrow in time to get that credit.

Sep 12, 2009 02:09 AM

Ginger Moore

Wilkinson & Associates Realty - Gastonia, NC

Hi Gary, Great points in your blog! Yes I am trying to weather the storm, as I feel so many other agents are doing as well. Seems like we have tremendous amount of sellers, and just not enough buyers. Have to work on " getting them off the fence". I feel the buyers will get off fence, when things are a bit more stabilized. Hope I can ride out the storm, until this happens.. who knows?

Sep 12, 2009 02:09 AM

Dianne Bartlett

Brightside Realty, LLC - Austin, TX

I'm really struggling with this very issue right now, and I think for me, it's an issue of being rusty with my sales skills and closing techniques. Those good old stand-bys really do work. I have the knowledge and can certainly quote the statistics of why a buyer should buy now but I'm failing to phrase it in a way that helps the buyer make a good decision. For me, it's time to polish off those good old days sales scripts! Thanks for the reminder Gary.

Sep 12, 2009 02:39 AM

Sandy Shores FL Realtor®, Melbourne Real Estate

M & M Realty of Brevard Inc. - Melbourne, FL

Brevard County Real Estate, Florida's Space Coast

Gary, I think that there is so much confusing info out there today. And I think that often buyers and sellers just don't know where to turn. We know how what is happening in the market today and when know what has happened in the past. We don't know what the future holds. I think many buyers are frozen in fear.

Sep 12, 2009 02:49 AM

Sandy McAlpine

RE/MAX EXECUTIVE - Cornelius, NC

Search Lake Norman Homes For Sale - Lake Norman NC

sometimes we have to be part-time psychologists, hand holders, teachers, and more. We have to clear up the confusion to the masses!

Sep 12, 2009 02:58 AM

Carolyn Shipp

Source 1 Real Estate - Mineral Wells, TX

Mineral Wells Texas Real Estate

What we are seeing here is people want to buy but they don't have the credit to buy. We were at an open house for one of our mortgage companies earlier this week and the loan officer we were talking to was telling us that she is the top producer in her office....of denial. She said that what she is seeing is people applying with credit scores at 530, 545, etc. Her office went to a meeting at their corporate office in Dallas and the managers were wondering why she wasn't "producing" like she used to. She looked around the room and said "Well, I am a top producer." They all looked at her and she said, "look at my applications..." the head guy looked at her numbers and just kind of smiled and looked at her and said "you are right." Unfortunately, she is a top producer of having to say no. She said that it gets really depressing sometimes, but she knows things will turn around in time as we all do.

I remember back in the late 80's and early 90's when this happened. People couldn't sell their homes because appraisals were coming in below value, etc...just like now. More times than not I can remember telling people to wait to sell. And eventually the market came back around and things were better. This is the hard part. Waiting.

Sep 12, 2009 03:33 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

I have a pack of buyers all with unrealistic expectations. No matter how much you try and tell them they need to fall flat on their faces a few times before they understand what it takes to get a house.

Sep 12, 2009 03:46 AM

Tamara Perlman

Referral Network Inc. - Truckee, CA

Gary--Another great post. We really need to listen to our clients needs to help them determine if now is the right time for them. As you mentioned, if they plan to be in the house for 2 years, then maybe the best thing for them is to rent. Even if it doesn't bring us a paycheck, our duty is to give them enough information to make an informed decision that is best for their interests.

Sep 12, 2009 03:58 AM

Brad Yzermans

First Time Home Buyer & Down Payment Assistance Specialist in So Cal. - Temecula, CA

Temecula-Murrieta-Menifee FHA/VA Mortgage Lender

is it really alwasy a great time to buy? All the people in my town who purchased in the fall and beyond lost about 50% of their home value or more......I lost 60% and it is still dropping. I speak to so many peole buyg now who tell me they have been in the market fo 1-2 years. I ask them if they have been working with and agent...they say yes. I ask them what does your agent say? They say all of them suggested he buy back then because if you are going to be in the home long term it is always a good time to purchase. These people sensed the agent wantsed a commission. Well, for those who did buy back then they feel foolish because it will take 15+ years before their home regains it's lost value. If they had waited they could have a $175K mortgage nw rather then a $375K mortgage they have now. HOw much money will it have saved them to wait? Those are the facts.

Sep 12, 2009 04:19 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Well Gary, the trick is having so many buyers that you don't even worry about the indecisive buyers. I just refer them out to my coworkers (for 30% of course) so that I can work with the REAL buyers now.

Sep 12, 2009 06:37 AM

Betina Foreman

WJK Realty - Austin, TX

Realtor, C.N.E., with WJK REALTY

Its always a good time to buy with the right agent. Real estate has proven to be more stable than stocks, bonds, or T-bills.

;)

Sep 12, 2009 07:54 AM

Margaret Mitchell

Coldwell Banker Yorke Realty - York, ME

Seacoast Maine & NH Real Estate

Jeepers, Gary. How did you know wha tthe buyers in southern Maine were saying? :)

Things are heating up so the positive news are some handy facts.

Sep 12, 2009 11:25 AM

Barb Mihalik

RE/MAX Elite - Suntree, FL

We owe it to our buyers to tell them in plain speak the facts of the market. I must say, though, the $8000 tax credit has proven to be a real blessing for me. Once it's explained and the client understands the value they do seem to get more of sense of urgency to buy.

Sep 12, 2009 11:38 AM

Anonymous

Yes, we need to educate our buyers all the time about we think we know about the market. But, none of us can read the future. Ultimately, if they are insecure about their jobs, etc. there is not much that educating them will do.

Sep 12, 2009 12:53 PM

#34

Beverly of Bev & Bob Meaux

Keller Williams Suburban Realty - West Orange, NJ

Where Buying & Selling Works

Good points. We also have to be alert and honest enough to recognize those buyers that should stay on the fence and let them stay. Facts work well for those who really should be taking advantage of things today. But there are many that deservedly should be worried whether they should buy given their circumstances. That's when I become the best agent I can be. Giving honest advice. It may not get me the sale today, but they will probably remember me tomorrow.

Sep 12, 2009 01:08 PM

Jirius Isaac

Isaac Real Estate &TriStar Mortgage - Kenmore, WA

Real Estate & loans in Kenmore, WA

Sep 12, 2009 03:52 PM

Anonymous

Burt Smith

Hi Gary,

Good Post ...all good points. But I can definitely see a buyer's point about waiting to see if a new home construction site will show signs of "life". In May of 2008, I actually dissuaded my buyer from buying a builder's model that was marked down from $729K to $519K. The model had all the bells & whistles. But the neighborhood looked like a ghost town. I did some research and discovered the FL based parent company was filing bankruptcy and that they were returning deposits as they were quietly abandoning all their unfinished communities in the DC area (DC, MD & Northern, VA). Of the 33 cleared lots in that community, only 4 had a home that was completed, SOLD & occupied and 2 homes were under construction. But we were standing there on a clear & sunny day and not a worker, hammer or saw could be seen or heard. It was sad, the unfortunate existing home owners purchased at the builder's full asking price. The remaining lots were cleared. But we're starting to become overgrown with weeds. Once the builder pulled out completely, I could imagine tumble weeds blowing down the empty & dusty main street. WELL, OK...THAT'S A BIT OVER THE TOP...

My buyer pushed back on my advice to back away from this "deal". As I reaffirmed my warning, I disclosed to him that the builder was paying a $5k buyer agent bonus at settlement. So he realized that I was walking away from a pretty good "payday" and eventually took my advice.

The house eventually sold for a NET of $465 in June 2008. I visited that community last month. The builder did finish those two homes that were under construction and they appear to be occupied. But the remainder of the 33 lots still remains empty and unkept. Unfortunately, this scenario has played out in almost every state in the last two years. Buyer's ARE skittish...they ARE sitting on that picket fence as depicted in that NAR commercial (great commercial by the way...)... and I'm sure those pickets ARE hurting them. But my buyer, like thousands of others, is willing to endure those painful pickets until they see some consistent signs of recovery & stability. It's tough when one week, there's an article proclaiming the "light at the end of the tunnel". But the following week, there's another article denouncing that THAT "LIGHT" is the headlamp of another "out of control" freight train barreling down the housing market tracks. OUCH!! Another pending train wreck of 5 MILLION more foreclosures? That's simply unfathomable!

So what's left for us agents to do but brace for another possible impact and adapt to the market!? As for myself, I'm seeking BPO business, educating myself on how to service REO & Short Sale listings and positioning to get on the "go to" list of a few Asset Managers. This will, hopefully, keep my own home out of the wreckage.

As Real Estate professionals, all we can do is adapt to the market, continue to HONESTLY apply our Real Estate trade and competently represent the best interests of our clients. If we continue to do those things, everything else will fall into place.

Sep 12, 2009 10:49 PM

#37

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

With enough excuses, it's never a good time to do anything! The best strategy is to use the figures to help them make up their minds, or dissuade their fears.

Sep 13, 2009 10:52 AM