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Decisions Decisions! Why is it so hard for Buyers to make a Decision?

By Sandra Paulow

Real Estate Agent with Aspen Properties, Inc. BR511793000

September 12, 2009 02:29 PM

I love the Real Estate Business, I really do. But I have to say that while I used to love to show property to prospective buyers knowing that sooner or later we would find the one they want and we'd get our offer on the table and the next thing you knew they were happy homeowners today's market is so different. Buyers have no sense of urgency and I find myself feeling more and more like an unpaid tour guide than a Real Estate Agent. In today's market you can show and show, even show the same properties over and over again, and still, the buyers are reluctant to make a choice. I suppose it is because they figure since a property has been on the market for months and months that it is still going to be there next week or next month. What they seem to have forgotten is it only takes one buyer to move more quickly than they do for that property they really want to disappear forever. I can't tell you how many times this summer I have had a buyer who really liked a property finally decide to make an offer, only to find out it went in to escrow yesterday. They are disappointed and angry and there is absolutely nothing that I can do about it other than to start anew.

Buyers, if you are reading this, you need to understand that just because a property has been on the market for a year and a half, it only takes one buyer for it to be gone. That is happening more and more and you have to understand that if you want it, you need to make a move on it. Remember there are hundreds and even thousands of agents out there working your marketplace. How likely do you think it is that at least one of them has a buyer who is also going to like the property you want? Pretty likely I'd say, and even in this market where there seems to be an overabundance of property for sale, there is only one that is going to suit you. Anything else you find is going to be your second choice so remember the old saying, even in these times and these market conditions, if you snooze you very well could lose!

Have a great Weekend everyone.

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Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

I really cannot afford to work with on the fence buyers. How to politely tell them is the hardest.

Sep 12, 2009 02:38 PM

Heather Adkinson

Windermere K-2 Realty LLC www.propertiesinmoseslake.com - Moses Lake, WA

Real Estate Agent - Moses Lake

They all seem to be fence sitters in our area right now.

Sep 12, 2009 02:44 PM

Roseann Annis

Prudential Homesale Services Group - Camp Hill, PA

Sandra,

One would think with the prevalence of the Internet, virtual tours, etc., that buyers would have a more clear idea of what they want, what they don't want, and how to pay for it. I know that the national stats say that it takes anywhere from 6 to 21 months for buyers starting their home searches on the Internet to contact a REALTOR. My point is that your experiences are right on target, for there does not appear to be a sense of urgency among an increasing number of buyers. I am surprised at how changeable some of them tend to be, too. It only takes one buyer to take a home of the market, as you say. Do you feel it's more a case of "the grass is greener on the other side" or difficulty making a commitment or decision. Thanks for an insightful blog!

Sep 12, 2009 02:45 PM

John Petrella

Local Hawaii Real Estate - Hilo, HI

Aloha Sandra,

Buyers are always shoppers. Some shoppers take more time to make up their minds than others. Most are unfocused and most have unrealestic expectations. I suggest the following to help narrow the search BEFORE you leave the office and show that 1st home.

1) FUNDS: Do a thorough means check. In other words show me the money!

2) MOTIVATION: Do a thorough motivational check. WHY does the buyer want to purchase and WHEN does the buyer want to complete the purchase by.

3) POWER CHECK: Identify the decision maker(s) and make sure they are at each showing.

4) INTERNET: Use the Internet to preview properties. To use the words of the old Yellow Pages ad -- let your fingers do the walking!

5) STUDY: Study your market thoroughly. Provide meaningful stats. Replacement cost vs Averge Sold Cost per sq ft. In other words Thoroughly inform the buyer up front and in writing what the market is selling in their price bracket and how long it has taken to sell the property.

6) ADVISE: Provide meaningful advice. Each property is a unique one of a kind jewel. Purchase only the one you want to wear for a long time on a daily basis.

7) FOCUS: Solicit written feed back from the buyers on each showing. What did the Buyer like about the property and what did the buyer not like about the property. Review the feed back after that day's showings AND prior to the next batch of showings.

8) PERFORMANCE: Render all services by written contract. Would you list a property for sale without a contract? Always execute a Buyer's Representation Agreement or Contract. Make them your client! Some of the things you might include in a Buyer's Representation Agreement or Contract are: (a) a fee per showing after the first seven showings, (b) a fee per contract after the first three offers, (c) a non refundable retainer fee that you rebate to the buyer at closing if they close within the period of your Buyer's Representation Agreement or Contract. We are Highly Skilled and Licensed Professionals performing Fiduciary Duty and we are worth our fee!

9) Listen Actively: Always ask how they feel about each feature of the home.

10) Preview: Preview all homes before you show them to your buyer. Or you will be so busy discovering the features of the home your self and not hearing the feed back your client is trying to give you.

11) Courtesy: Always provide written feed back to the listing Agent of each home you visited. The real pros will welcome your feed back so they can provide it to thier clients.

Stop by, visit and talk story at our office on the Big Island of Hawaii!

John Petrella, REALTOR®
ABR®, GRI, Broker/Owner

Direct: 808.640.3953
Local@LocalHawaiiRealEstate.com

Local Hawaii Real Estate
Honesty • Integrity • Commitment

159 Keawe St., Suite 1
Hilo, HI 96720

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Sep 12, 2009 03:38 PM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

In Atlanta the buyers have too much to look at, and they take forever.

Sep 13, 2009 01:51 AM

Sandra Paulow

Aspen Properties, Inc. - Pinetop Lakeside, AZ

REALTOR, Associate Broker, GRI, SFR

Loreena, I wish I had a choice, all of our buyers are fence sitters and determined to see everything in our area before making a decision. If your market is different, congratulations.

Heather, You are so right. They just want to look and look again before they make a decision.

Roseann, Surprisingly, there are still people out there who don't own a computer and don't have access to one. Most of our buyers are qualified buyers and want to buy, they just aren't really in a hurry to do so since they are second home buyers looking to escape the heat in the deserts. The ones in the market now are looking for next summer so there really isn't any urgency. They weren't around over the summer months when it was hot and there was some urgency, now they are looking for the end of the summer "deals".

John, I would love to use a Buyer Broker with our buyers but they would have to be of a duration of one to two years because that is how long it takes many of the buyers in our market to make a decision. Just a different market for sure, but thanks for all the good advice.

Jim, Well, we've talked about this before, I think some of our buyers are in your area too.

Sep 13, 2009 02:06 AM

Klaus Nicholson

ROSE ANNE ERICKSON REALTY, LLC. Columbus Ga, Ft Benning, - Columbus, GA

Realtor, Columbus Ga Homes, Fort Benning Homes

Hello Sandra, I have to agree with Jim, there is a lot of inventory and it is taking a bit longer to write an offer. I tend to show more homes than necessary, but in Columbus a serious home search is a matter of a few days. The time I spend showing homes is loaded with questions. I continually ask them to rate homes that we have seen. A few homes later I can tell them the next home we are viewing is a 1 or 10 on their rating scale. Usually after seeing a few of the lower rated homes, they trust my ratings of homes and we narrow the search. When I get a good rating, I simply ask if they would like to buy the property.

Before viewing homes I usually ask: When do you want to move? How long is your lease? Do you need to sell your existing home?

The main thing is that I think back on one of my home purchases. My wife was the realtor and she showed listings to me for 2 months. I finally told her to buy a house she liked.

Good Luck in Az.

Realtor, Columbus Ga, Fort Benning, Phenix City Al.

Columbus Ga Homes

Sep 13, 2009 08:13 AM

Sandra Paulow

Aspen Properties, Inc. - Pinetop Lakeside, AZ

REALTOR, Associate Broker, GRI, SFR

Klaus, Our market is so different from most that almost all the rules of real estate fly out the window with every new buyer. It takes two or three trips out for them to even focus on what it is they want. They "love" everything they see most of the time so if it hard to pin them down as to what they are really looking for. Everyone now wants a deal and that is to be expected with all the media blitz about dropping prices and masses of inventory.

There is no question that there are a lot of homes in the marketplace. But here, there really are a limited number that are what buyers are looking for. There are a lot of older, run down properties that have gone to foreclosure or are being offered at Short Sale prices, but there aren't that many really nice homes at good prices.

Sellers in our market aren't any more motivated than the buyers so pricing isn't agressive as it is in other places. Buyers come here thinking they are going to find the perfect little cabin in the woods for a great price. In many cases that just isn't the case. The sellers refuse to give up anything to sell. They don't have too and if it takes a long time for it to sell, than so be it. They will give it another month and if it doesn't sell, they'll close it up for the winter and wait for next summer. It happens every fall here and we know it and are prepared for it.

It is during the winter months that those less than perfect homes will go to the locals and the First Time Buyers who just want a house. If it is livable they will buy it. It is just a very different market than most. Resort markets always are. Probably 80% of the homes in this area are vacant during the winter and are only used as summer homes. The fact is that the buyers want a buy and the sellers don't want to give up anything to sell to them.

Sep 13, 2009 09:02 AM