Special offer

WHAT "COMFORT LEVEL"??? Where is it? What is it? Where Can I Find It?

By
Real Estate Agent with Douglas Elliman Real Estate 30HA0800896

What "comfort level"??? Where is it? What is it? Where can I find it?

Finding a "comfort level" for your buyer.....How do you do it?Finding a Comfort Level   Are you satisfied with your approach? Do you have a reputation for informing your buyers, or do you find that many of your buyers walk away from the buying process???

I have found that the most difficult thing to accomplish when working with a buyer, is to give them a level of comfort for the process of making a deal.  Usually, the first thing a buyer will do is decide to "think about it" for a day or so when they have found something they like. During this critical time of thinking it over, they get fearful and question the idea of buying a home. They may even decide not to do it at this time!...giving them too much time without talking to them or communicating with them gives them the psycolgical excuse to say "we have decided not to buy at this time"..even when they really want the house!

 

 

"BUYERS REMORSE"  can and does set in, long before the deal is done. Anyone who has bought a home can relate to that feeling in the pit of the stomach--a feeling that maybe, just maybe you made a mistake! The dread that sets in if the buyer does not have all the facts can be quite disturbing.BUYERS REMORSE IN THE EXTREME

This has happened to me; at the very beginning of my real estate career, I was afraid to be "too pushy" with my buyers. It did not take long for me to realize that unless I pushed for an offer, it would not happen. I did it with the idea in mind that the buyer NEEDED to be guided or they would fade away into the community, ending up in another office looking for the "guidance" they were looking for. 

HAVING LEARNED MY LESSON....I now have handouts to give them; I keep them in the loop and informed of all things real estate...especially the first time buyers. No one leaves my office with the feeling that they are not WELL informed.

 

I take the time to give them as much good, solid and factual information as possible; I prepare a list of comps for the property, and I make sure they know everything about it and others like it:

  • I take the buyer on a drive around the area, then around the comparable neighborhoods. 
  • I give an evaluation of property values and the most recent sales for the whole community, with the home's selling vs. asking prices.
  • The buyer may have more questions regarding schools, groceries, libraries, etc. and I give them a map to show all applicable locations including parks and walking trails, etc.
  • I make sure they have their financial work squared away so that does not keep coming up for them during the finalizing of  the deal.
  • I make sure the inspection is done as soon as possible--again to prevent problems before the contracts get signed.
  • If there are issues that the buyer is not comfortable with, we talk it over with the other agent or the owner, to see what can be done.
  • Small concessions may be agreed to if there are issues.

In my years of getting deals done and getting them closed with a happy buyer and seller on the other side, I have yet to have someone back out after they have found something they like....maybe that is just luck. 

I like to think that it is the hard work that I do in the process to make sure there will be no surprises for anyone in the end. I have many happy customers who tell their friends about me and as a result, I have increased my customer base exponentially.

Comments (20)

Diane Williams
Pell City, AL

Paula the reason for your success is you are a top notch agent that has a well informed client. Educating them on the process is a must or they will walk. Excellent Post.

Oct 02, 2010 01:18 PM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Diane: Thank you for reading this post---I have had it in my "draft" mode for a while now, not feeling that it was quite right for publication. Then today I had another new buyer tell me how happy he is that I helped him so much throught the process and I decided it was the right time!

Oct 02, 2010 01:24 PM
Sara Guest
F.C. Tucker Co. Fishers, Carmel IN Real Estate - Fishers, IN

Paula, great factual info to give your buyers.  All buyers seem so wishy-washy these days, I've had a hard time converting lookers at open houses to acutal buyers.

Oct 02, 2010 02:36 PM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Paula:

This is a very good post and I have suggested.

You have a balanced approach based on great information and the appropriate nudges when necessary.  We differ in one way that i always give buyer the chance to opt out early if I think their position is tenuous. Rather they do so early rather than later.

Oct 02, 2010 02:50 PM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Sara: But if you keep the information flowing and the communications engaged, you willl see a difference..people have money to spend on houses. We just need to make them feel comfortable enought to spend it!

Rugg: Good idea! I have found however, that the buyer walks out the door and finds another agent to buy from--better we determine early on how qualified they are by sugggesting they get pre-qualified by a trusted mortgage broker! That way we can guide them to a lower priced property; one that may make them just as happy or happier than the more expensive one.

Oct 02, 2010 02:59 PM
Lisa Ludlow Archer
Live Love Homes-Keller Williams, Charlotte, NC Ballantyne Area - Waxhaw, NC

Paula:

It is a hard balance. I always try to figure out which DISC profile my buyer is and then cater to those needs. Have a great weekend and I suggested too.

Oct 02, 2010 03:00 PM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Lisa: You are so terrific! :) Hope you had some good results from your DISC "discovery"...I always let a good friend of mine who happens to be a mortgage broker, take a look and try to advise my buyers before we proceed too far into the market. I have very few losses because of that one thing!

Oct 02, 2010 03:03 PM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Paula - great post!  I have a couple of buyers who cannot seem to find anything that is perfect enough for them...  Maybe i just need to have another conversation with education with them...

Oct 02, 2010 04:14 PM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Dagny: Educating your buyer means everything to a deal---if you don't do it, you don't sell them anything! I find a comfort level can  not be reached until the buyer is prepared to live in a certain area...if that doesn't come together, nothing else will fit either.

Oct 03, 2010 12:20 AM
Michael Izquierdo
LA Pocket Listings - South Pasadena, CA

Hi Paula,

Nothing like the feeling of your clients giving you a referral. That's when you know you did your job right.

cheers!

Oct 05, 2010 03:28 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Michael: You are so right! It happens a lot for me now--of course it should after so many years in real estate!

Oct 05, 2010 04:48 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

This is another great post! If a buyer is going to think about it there will probably already be an offer by the time they decide! They need to be motivated to act or pass!

Oct 07, 2010 01:57 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Barbara-Jo: That's what I find too--you snooze, you lose! It's very hard to convey that to a buyer---they always think we are not beinig honest I guess!

Oct 07, 2010 02:10 AM
Laurie Mindnich
Centennial, CO

Paula, you should really give buyer agency a shot. It allows you to be completely transparent to buyers. As it stands, your fiduciary is usually to the seller, and this creates a very uncomfortable tight rope walk for you, and anyone else engaging in sub agency (if they truly understand it). There is only so much that you can convey to a buying customer before the line is crossed, and fiduciary to the seller violated.

Oct 07, 2010 04:09 AM
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

I am remembering several instances of buyers taking too long to get to the decision point because they wanted to think it over, and they ended up missing out completely.  On the other hand, finding the "comfort level" is most important when you are making sure they are really ready to buy. I still remember a young man who was comfortable with me (I had known him for several years) and comfortable with my ablity to get him through the process successfully. We found the "right house", but the problem was that he was never "uncomfortable" enough with his living situation (still living at home with his folks at 28) to get comfortable enough with the thought of owning and caring for a house on his own. Motivation goes a long way in finding the buyer's "comfort level" -- and without the right motivation, they might never be comfortable...

Oct 10, 2010 05:26 PM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Paula, what a great post! Buyers do need to be educated, need to trust us, need to know where to go for the information they are looking for. I just heard a horror story about buyers not knowing there was a Superfund site behind their house. Now she is sick, they have been advised to stop paying the mortgage, the house is certainly upside down.... Great reason to make sure your agent knows the area and helps you through the home buying process.

Oct 11, 2010 05:38 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Paula, 

Well said.  I am glad Pat included this in the items for the week.  If we do the right job and keep our customers informed, we will all be better off.  

All the best, Michelle

Oct 11, 2010 10:10 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Laurie: Sorry I didn't realize you had made a comment on this post--I am doing just fine here the way I work with both---haven't had a complaints; in fact lots of compliments, referrals etc.:)

Lisa" I guess it works both ways, this comfort level thing!

Andrea: I have no problem letting buyers know EVERYTHING that they need to know--I would do it for anyone.

Michelle: I am glad she did too! What a nice surprise! When I write a decent post, it seems they slip below the horizon before anyone who cares gets a chance to read them!! Don't know how to overcome that one!!!

Oct 11, 2010 01:01 PM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Paula,   Very well said.  I don't think luch has much to do with it.  Your preparation of your clients is outstanding.  The harder you work...

Oct 12, 2010 02:59 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Bill: Yes, I agree with you; but I still feel lucky! :)

Oct 12, 2010 04:03 AM