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Is the "Right" Price also possibly the "Wrong" Decision for your Buyer?

By
Real Estate Agent with East West Realty 0226005035

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All of the signs in our market area indicate a better year in 2011 for real estate home sales. I realize that many buyer brokers are looking for the "best deal" for their clients because their buyers initially tell them, "I want the best price for a house, I don't want to pay too much in today's economy". Fair enough. I understand that there are short sale opportunities out there and many potential buyers see them as the best deal on the surface. But is it really the best home for their family? What is the right decision? Is it the right price but the wrong decision for your family? The lowest price home may not be the right home.

Too many times, we qualify buyers by asking them just the price range, the number of bedrooms & baths, square footage, etc. I've witnessed many instances where buyers, who recently bought a resale, came into our Information Centers and say, "I had no idea that your community offered so much...our real estate agent didn't bring us here...we would've loved to have had a clubhouse and pool for our kids to grow up around"...or "the quality in your homes is much better than the resale we just bought four months ago". What's the big picture?

How often do you know what they're really feeling? Do we listen well enough to discover what matters most to the buyer? Many times, buyers say one thing, but aren't ready to open up and share their true feelings and motivations. It's wise to include a new home community in your initial tour. You can rely on the site agent to help qualify their needs and wants. At our new home communities in the Hampton Roads area, we try to figure out the right match (home plan/homesite) for potential buyers first. If you're showing homes for sale in our price range, at least expose your buyer to all options before they lock in on what may not be the right home for them.

Sometimes buyers come into our offices totally focused on getting the right price (a deal), but ignoring what's best for their family. As a new homes agent, we need to get the buyer focused on what they want to accomplish...what's right for their family?

  • Agents must listen to what is most important to the buyer. Know the right involvement questions.
  • A good new homes community representative can actually help bring out a buyer's true motivation. It's important not to try and "take over" a situation where the buyer agent is there. Always make the buyer agent feel important, include them, and never come across as too pushy.
  • Site agents need to respect the relationship between the buyer broker and client.
  • Buyer broker agents should not be afraid to allow new home listing agents to demonstrate some of the community's amenities, advantages, and unique selling propositions.
  • Price adjustments have been made in our new home communities. Many buyers and agents are discovering that new home construction pricing is at a very competitive level. Today's new homes include more quality features and energy efficient products than many resale homes.
  • Right Home + Right Neighborhhod + Fair Price = Happy Homeowner

 One of the things that never changes in the real estate industry is the importance of building relationships with Realtors and builders in your area. New homes agents and resale agents should work together to help a customer see all of their options in the marketplace. It's okay if the buyer doesn't like the product you're selling... sometimes, it's not meant for them, it's not the place for them. They won't know it until they see the features and benefits firsthand. Let's work together to help our buyers find the Right Home for their family at a fair price.

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For more information about new homes in the Hampton Roads area of Viriginia, visit www.eastwestcommunities.com, waterfront communities check out www.gatlingpointe.com, www.the-riverfront.com, and www.founderspointe.com.

Posted by
Mark Edwards (757) 288-7584

Comments (6)

Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

Good post, Mark. I like the equation getting to a Happy Homeowner .

Right Home + Right Neighborhood + Fair Price = Happy Homeowner

cheers

Nor Yeretsian

Feb 19, 2011 02:44 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

This is so true we as Realtors need to take the time to really listen to our buyer's wants and needs when assisting them on the purchase of their new home.

Feb 19, 2011 02:53 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Timing is the key to real estate sales. And not trying to arm twist wearing a loud plaid jacket but finding the right property to match the real estate buyer's needs. Those are the under contracts that fit, work, get you quickly to the real estate long conference table closing.

Feb 19, 2011 03:23 AM
Mark Edwards
East West Realty - Suffolk, VA
East West Realty

Thanks Andrew, Pat, and Nor. Appreciate the comments!

Mark

Feb 19, 2011 03:27 AM
Wesley Brown
East West Realty (Liberty Ridge) - Williamsburg, VA

Great post Mark. Abeit a cliche', but it is so easy for some to miss the forest for the trees in these opportunity-filled economic times. I'm sure most real estate professionals have discussed strategies for overcoming objections (amongst our colleagues), and the proven common denominator of any successful method is to listen, and respond to questions with honesty and confidence! Also let me say that as a new home agent I absolutely look forward to working with buyer broker agents to demonstrate our community!

Feb 19, 2011 07:37 AM
Cindy Lindgren
Cindy Lindgren, The Landlady - Ukiah, CA
Mendocino County Real Estate

Hi Mark,

Great advice. I've been selling land in Mendocino County for years and put together a list of questions for buyers to consider as we begin our search. It saves a lot of the client's time and my time and better manages missteps and escrows that fall apart down the road.

Mar 29, 2011 02:02 PM