Type A: A tendency towards tenseness, impatience, and aggressiveness.
Type B: A tendency towards a relaxed manner, patience, and friendliness.
Both of these personality types have their merits, and both tendencies exist in all of us to some degree. But when it comes to home buyers, Type As are the ones you want to be working with.
I heard a real estate superstar say one time that her turning point was when she decided to seek one type of customer over another. "We had spent an inordinate amount of time on people who drained a huge amount of energy," she says. "We made a conscious decision to cut out those kinds of clients. We stuck to our guns, and within a very short time, our business just took off."
So who makes better buyers, Type As or Type Bs? Well, Type A buyers are the ones who are urgently seeking a home. They have a deadline and a willingness to make concessions to get what they want. They're probably moving to the area, trying to get out of an apartment, or are otherwise motivated.
Type B buyers, on the other hand, are lazily looking around, probably already in a home, or just looking for a new place. Maybe they want a smaller home now that the kids are gone, or something with an additional room or two. But they're not in a hurry; they're willing to pass on deals that don't match their specifications exactly.
When you realize a buyer is Type B, you must do everything to bring out their Type A personality. Remember, everyone has some A and some B - it's your job to guide their mood towards a home. Here are some tips:
- Encourage all of your clients to get pre-approved (not pre-qualified). Not only does this show their willingness to move forward with the process, it gives you more power to negotiate by knowing exactly what they can afford. If your clients refuse to get pre-approved, this could be a big red flag, a clear sign of a Type B personality that's just out to waste your time.
- Know what kind of home they would fall in love with. Have them describe the perfect house. Take notes!
- Look for any deadlines they might not be sharing. Are there changes coming in their family that will precipitate the move? Would it be better to move before those changes come?
- Share any law or zoning changes that will alter the market. If interest rates seem to be on the rise, remind them of the thousands they'll save by buying sooner rather than later.
- When you find a home they would love, tell them you found their home rather than a property they should see. Create the urgency, be contagious, and let them catch it. Do not give up on Type B buyers, but put most of your time and effort into targeting the Type As.
In closing, remember: If you hear them say, "Oh, we're just looking," it's up to you to get them excitedly and aggressively seeking a new home. Let them know that waiting for further price reductions won't do much good if interest rates increase in the meantime. With today's stricter credit guidelines, waiting could mean not qualifying to buy the home at all!
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