"WE'RE NOT IN ANY HURRY!" AGENTS CAN'T SPEND A HYPOTHETICAL COMMISSION CHECK!
Although, as a Buyers' Agent, I love meeting new clients and getting to know them while helping them to find a new home, I've come to realize over time that while this is my job, I still have a life and a family outside of real estate. Most jobs end daily at 5:00 and always turn a paycheck at the end of the week. This job, you can work for months with one client and never even see a paycheck at all!
Please read below for a little enlightenment!
THE ONLY SALE THAT COUNTS IS THE ONE THAT CLOSED!
THE ONLY COMMISSION CHECK THAT CAN BE DEPOSITED IS FOR THE SALE THAT CLOSED!
WHAT IS OUR BUSINESS? Our business is real estate brokerage. Our business is not conducting house tours. One of the most important lessons new agents and some seasoned agents learn is to identify serious non-contingent home buyers.
IDENTIFY THE BUYER'S NEEDS and GOALS? A very important task for an agent early on when speaking with a new prospective buyer client is separating the serious buyers from folks who are more interested in negotiating than buying. We often meet prospective buyers who are in a month-to-month lease and faced with the option of renewing their lease or buying a home. Our task is to identify those folks who are excited about home ownership from folks who "will buy if the price is right". These consumers will often try to control the market rather than understanding the dynamics of what determines a "good price". When hearing these words, an agent must understand that they may be dealing with a consumer is likes the idea of home ownership, but is more interested in negotiatingthan finding a home. These consumers have no cognizance of what it costs an agent in time and expenses to prepare for and conduct house tours.
OUR TIME IS VALUABLE TOO. Is it possible that they are not ready to buy? How much time should an agent devote to folks who want to look, but are not anxious to buy?? Time spend with less than serious home buyers is simply sending serious home buyers to other agents.
DOES THE BUYER NEED A HOME? If so, they are most likely going to make reasonable offers. Further, if they do make a very low offer and lose a property to a better offer, they usually learn that the market isn't going to treat them in any special manner. Their next offer should be in the ball field and should result in reasonable price, terms and conditions for both buyer and seller.
You've done everything right to get the buyers to a point of buying a home.
- Qualify the buyer and establish credit worthiness,
- Identify the areas of choice,
- Select the best property listings in the price range,
- Preview the homes and select the best on the market to show the buyer.
- Adjust the criteria based on the tour.
- Go back to #2 and repeat #3 and #4.
WHEN QUERRIED ABOUT MAKING AN OFFER, YOU HEAR THAT DREADED: "WE'RE NOT IN ANY HURRY"? Well, what are they waiting for? Fact is, when non-contingent buyers continue to repeat the "we're not in any hurry", the likelihood of them buying at all is, in my experience, remote. An experienced Buyer's Agent will:
TIME TO SELECT A HOME TO BUY. By this time, the buyers have seen the best of the best in their price range and areas of choice. It's time for the buyers to make a decision and start the contract process. They have expressed interest in one or two listings that meet all of their criteria.
LEARN "WHEN TO HOLD THEM AND WHEN TO FOLD THEM". When asked about their plans for buying, the answer will, at that time, determine whether you put those buyers on the back burner or continue to show them MORE OF THE SAME. If their response is "We're not in any hurry.", it may very well be time for the agent to move on to other things or other prospects.
THESE ARE, IMO, NOT SERIOUS BUYERS. Agents handle this situation in many ways depending on their personal client load. While our agents handle only 2-4 buyers at a time, we do not have time to spend with folks who are not serious buyers. The success of the Buyers Agents in my network depend on identifying serious buyers, identifying the best homes that meet the buyers criteria and going to contract. Agents who are committing a Saturday, Sunday or any day to buyers who have already seen the best on the market may not be using their time wisely.
MAKE A PLAN WITH YOUR BUYER AND STICK TO IT. It's a good idea speak seriously with new buyer clients about what to expect in the home buying process; identify good homes, preview the best, get pre-approved, make offers, negotiate and go to contract. If buyers understand early on that the goal is to buy a home and not to just tour listings, the agent should not hear the dreaded "We're not in any hurry".
Agents who are doggedly showing more and more homes to buyers who are not making a decision may be losing better opportunities and could be available for a new buyer referral from Lenn. When I contact an agent in my network about a good buyer referral and they are already booked with buyers to whom they've been showing homes for 2 months, I have to question the agents perspective. Either the agent is not working with motivated buyers or the agent has become too "comfortable" with a buyer.
HOME BUYERS HAVE THE BEST OPPORTUNITIES FOR GOOD PRICES AND FINANCING AVAILABLE FOR MANY YEARS. If they are not buying NOW, it may very well for an agent to simply say:
NEXT!
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