(see last comment for the update) 

How do you get a buyer to move forward?

I am currently working with a nice couple who have signed a buyer broker agreement. They are looking in a price range that, for our area, has very little currently available. What IS available is moving very quickly. I have only been working with them for 3 weeks, and they have seen a total of five properties so far. Two different properties that they wanted to make an offer on sold before they had a chance to do so. 

They do not use a computer or email, so there is a bit of a delay on the outset getting the available listings to them.

The other issue is, it is now March. In our area prices typically will start going up with the onset of Spring. 

They have owned a home in the past but are still afraid of the home buying process. I am spending a lot of time "hand holding" to help alleviate some of their fears, and they are working with a lender that I trust implicitly. 

How would you convey to them the urgency of their situation without being pushy or scaring them off altogether? Have you had clients in this situation, and how did you get them to move forward?

 
Posted by Chuck Ethridge on 03/06/2007 04:37 PM   Comments (18)   buyers, urgency, spring  
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18 Comments on How do you get a buyer to move forward? (UPDATE)

MAR
06
2007
633,127 Points 5 Featured Posts Localism Sponsor Outside Blog
Hand delivery of new listings is an option. With a buyer broker agreement, you could go to your local office supply store and buy a fax machine and give it to them, they and their sphere of influence may be a nice source of income for years to come.
4:55pm • #1
Thanks David. I think those are good ideas, but it won't speed up the process in this particular case. And delivery of leads is only a small part of it. What I was really asking, is how do I instill in them a sense of urgency, so that they can make a quick decision and not wait until they lose out when we find something that they really like and is a decent buy.
7:56pm • #2
319,667 Points 4 Featured Posts Outside Blog
Hi Charles, I have several clients who are looking for the same thing and we may have ten listings in the price range. I tell them all, the market has picked up, if a new listing is posted and you aren't receiving and moving on the automatic email notification, someone else is. The first one to see the property and put in an offer will most likely get the house. I've shown one couple countless houses then they need to 'crunch' the numbers. Of course the house is gone when they call back three days later with a lowball offer. I prioritize the client, if they are serious about buying, they will find a way to keep up with new listings. I would leave new listings in the office for them to pick up. If they hear 'what a shame, that would have been the perfect house' enough times they may finally move for you.
9:05pm • #3
655,247 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
Sometimes I think it takes them missing out on a few homes to get that sense of urgency.  If they are just going to be tire kickers it may be good to move on to someone that is really interested in buying.  You can always keep giving them listings but not spend too much time on them.  If you stay in contact eventually they will take the plunge.  It is not unusual for me to work with someone for a very long time before they actually buy. 
9:45pm • #4

Charles,

If you're already 3 weeks into the process with them and you're making sure to get them new listings as they hit the market they may just not be ready. There's not too much you can do outside of the "norms" to give them a sense of urgency. One of the things I learned early on in the business is that not everyone you work with is going to purchase a home with use of your services. As the hours you're investing in this couple start to add up you have a decision to make; stand with them until a deal is done and closed or cut the line. If you wanted to make the same $/hour you would at McDonalds- you'd just work there, right?

Flip side: my very first client viewed 28 houses, finally picked one and we submitted an offer. The listing agent double-dipped it and my guy felt robbed (which he may well have been). He soured on buying for a couple of months and then responded to a "happy new year" email I sent out...he started looking again and bought the first house he saw. My dilligence has paid off and we keep in touch often and as long as he's in my area, I'm certain I'll be his Realtor.

So what do you take from it? It's real estate! You never know what's going to happen when! You just have to trust your gut.
10:30pm • #5
MAR
07
2007

Marchel - I agree with you (and it's exactly what I told Chuck).  Our market isn't insanely hot, but homes in this price range are going within 2-3 weeks and these buyers can't buy new construction unless they can physically see the exactly floor plan (already built) that they would buy.  Chuck has been calling them just about daily and leaving color photos of new properties on the market for them at the office (they pick up daily right after work).  They've viewed 5 homes and there are some other factors involved.

What Chuck is trying to learn is how to improve his skills in the 'encouragement' part - helping people move forward with their buying process.  That is the main point of his post.

7:54am • #6

I don't know that I have any advice that's new to you or not (doubt it)...but if you've set your clients up with a reputable lender that you trust and are confident that they will be buying once they get over that mysterious hump...maybe they just need a little more hand holding. At this point if they do not see a trend in losing out on 2 homes before they even grabbed a pen to write; show them the pending and recently closed homes in their range so they can visibly see that homes only last 2-3 weeks. If there's a specific worry in their price range of homes (needing TLC or whatever) offer them a home warranty (if not already offered) and explain in-depth the benefits of a home inspection. If they're a first time buyer or a renter and are about to land their first home with a backyard...let them know you've got a nice new grill waiting for them as they should close right around the time when cooking out would be in season (or any type of this gimmick- which is cheaper than a home warranty but still conveys that you're loyal and thankful for their business and is more of a positive heading into a new home. Instead of thinking, "Cool- we've got a warranty for WHEN we have problems" they're thinking, "Awesome, we can have jane and john over for steaks in May!")
10:05am • #7
867,011 Points 18 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master
I would check back in with the buyers and do a little more questioning to see what may be behind them holding back.  One must be tactful, of course.  However, there may be something else going on -- and it might be helpful if you can either help them resolve the issue -- or if it is something else, it will help you because you will know what is going on.  Sometimes buyers don't tell you everything right away.
6:04pm • #8
MAR
08
2007
 Thank you for all of the helpful comments. I do think these clients will do something, I just hate to see them missing out on opportunities that do come up. I have a lot to think about now. Thanks again. 
11:27am • #9
I'd love to know when you get them to move and what the trick was thr got them there.
1:46pm • #10
Jim- I'll keep you posted. 
4:12pm • #11
MAR
09
2007
3 Featured Posts

Joan makes a great point.  If they're hesitating on pulling the trigger you may need to sit them back down and dig deeper in a needs analysis.  My experience has been there's something they're not telling you.  That might be out of fear, or embarrassment, of simply not knowing the process well.  I think we overlook that for a Buyer, this process only happens a few times in their life.  We deal with helping people buy or sell properties every day. 

I've also set expectations by asking the Buyer to identify the 5 "Must Haves" in the house they would like to buy.  After I drill down further on why each of these 5 "Must Haves" are crucial I also set the expectations by reminding them that the 100% house probably doesn't exist but then I ask if we can find the 90-95% house would they be comfortable moving forward with that?

I think our role in all of this is as much helping the buyer get clear on what they want as it is finding and showing property.

Just my thoughts for what they're worth.  Good Luck.
8:33am • #12
128,614 Points 12 Featured Posts Outside Blog

I actually like Dave's idea - and I have thought of it before...call it a pre-contract gift... maybe cruise the clearance racks at office superstores and wait for the $30-40 sales and try to negotiate for 5-6 at a time...

If they trust you enough to sign a buyer's agreement then you have them sold... you just have to be patient. 

How long ago did they own the house? over 3 years?? Then they are first time homebuyers in the lender's eyes so treat them that way.

 
10:03am • #13
MAR
10
2007
 Lots of good stuff here. I think they are getting the hint after several now that they were interested in have sold before they even decided they wanted to see them. I won't hold my breath yet, but there seems to be a light at the end of the tunnel. 
8:07pm • #14
MAR
27
2007

So, these buyers have made an accepted offer on a home that closes on May 1!!!!

I realized after talking to them a few times that they just did no like what they were seeing, and really could afford to pay more. So I scheduled to show them a few houses about $10,000 - $15,000 higher that what we had been looking at. They fell in love with the first one and made an offer that day. In that particular range, we were able to find larger and newer homes. So here we are. Thank you for all of your suggestions.

5:01pm • #15
138,868 Points
Sometimes you never get through to folks like this. I would print the flyers out when they want them and then as soon as they go pending, give new info. They will see that are too slow and hopefully make a move. One thing I have always been told is, you must have control of your clients.
5:52pm • #16
APR
01
2007
127,052 Points 1 Featured Post

I like to show my buyers the numbers. If I calculate the absorption rate and velocity for the neighborhood. This often helps my clietns develop a more aggressive strategy if that is what is needed.

I agree that some people need to lose a few before they 'speed up', but some people actually have to see a lot more before they are ready to go for it. I actually can't think of an example where any of my clients "lost" a home and didn't find something they didn't like a whole lot more. Maybe when they do "fall in love as Charles says, they will be ready to give it their all.
10:52pm • #17
APR
02
2007
621,749 Points 11 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hey Charles! Situations like this is why I understand what people mean when they say it is good to read body language. Maybe it will help if you know the personality of clients. You should have them do a personality profile test. I took a three day from a certiifed behavior specialist by the name of Angel Tucker -She is pretty good.One thing I learned from her class is that you can tell what kind of buyers you are going to be working with by simply asking one question" Are you going to take a quick look at the property or are you going to take a throughly look at the property. There are four personality traits

 

D - Dominance: People who score high in the intensity of the "D" styles factor are very active in dealing with problems and challenges,while low D scores are people who want to do more research before committing to a decision. High "D"people are described as demanding,forceful,egocentric,strong willed,driving,determined,ambitious,aggressive, and pioneering. Low D scores describe those who are conservative,low keyed,cooperative,calculating,undemanding,cautious,mild,agreeable,modest and peaceful.

I - Influence: People with High I scores influence others through talking and activity and tend to be emotional. They are described as convincing,magnetic,political,enthusiastic,persuasive,warm,demonstrative,trusting,and optimistic. Those with Low I scores influence more by data and facts,and not by feelings. They are described as reflective,factual,calculating,skeptical,logical,suspicious,matter of fact,pessimistic and critical.

S- Steadiness: People with High styles scores want a steady pace,security,and don't like sudden change. Low S intensity scores are those who like change and variety. High S persons are calm, relaxed,patient,possessive,predictable,deliberate,stable,consistent,and tend to be unemotional and poker faced. People with Low S scores are described as restless,demonstrative,impatient,eager, or even impulsive.

C -Conscientiousness: Persons with High C styles adhere to rules,regulations and structure. They like to do quality work and do it right the first time. High C people are careful,cautious,exacting,neat,systematic,diplomatic,accurate,tactful. Those with Low C scores challenge the rules and want independence and are described as self-willed,stubborn,opinionated,unsystematic,arbitrary,and careless with details.

If you want more on Personality profile,e-mail me and I can fax some things to you that can help you with all of your clients. I hope this was helpful. Much luck to you with communicating with all of your clients and closing as well.

 
8:23pm • #18


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Chuck Ethridge

Coeur d'Alene, ID

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