How To Build Credibility With Buyers Continues…

In my previous post I discussed the first 2 steps about how to build credibility with Buyers.  I will continue with the remaining steps:

Step 3: The Deal Itself

• Ensure you have the correct street address spelt correctly - one misspelling sends everyone on wild goose chases with their GPS – this is not good.

• Repairs: Have an estimate and list of repairs that makes sense.  Most Buyers will dispute the real repair cost even if you have a contractor estimate.  Why?  It’s because they see the property different from you.  This is ok.  As long as your estimate makes sense logically, you don’t get dinged for that.  Just a different opinion.  It’s when you are off by 30, 40, and 50000 from reality that you have a problem.

• Access to the property.  Ensure access to the property is accurate.  No one likes to get to a house and not be able to get in.  If by appointment, vet who is coming to make sure they are credible before they come.  What if you have never seen the house?  This is ok.  Simply disclose that.  You can do a deal off of pictures if you handle the details properly.

• Comps – use accurate ones – MLS is always preferred method.  Tax records is second but more labor intensive.  No one disputes these and if they do, you have to ask yourself, do you have a credible Buyer?  This assumes your choice in comps make sense.  Do NOT inflate value. 

• Always ask yourself before marketing a property ‘Would I buy this deal at this price?’  If the answer is not yes or you have to think hard about it, then do you really have a deal?  It doesn’t matter if you have the money or not, assume you do and ask yourself the above for every deal.

Step 4: The Fun Stuff

• You have a buyer!  Now what?  Once you accept an offer, whether e-mail, verbal, snail-mail, internet, whatever…you honor it.  It is your word on the line here.

• You will have the experience of accepting a contract and then getting a higher offer later.  It always happens at some point.  Do not get ‘dollars signs in your eyes disease’.  Your word and character are worth more than the extra money. 

• Let you Buyer know the protocol up front for how your process works.  The following works well: a.) Earnest money – 2000 non-refundable earnest minimum.  Why?  Rarely will someone walk away from 2000.  1000 happens all the time.  2000, not so much.  b.) We execute the contract after receiving the earnest money and a signed contract.  This is when you find out if they trust you.  If they do and execute, you have a real Buyer and MUST perform no matter what. c.) Closing Attorney – Ensure your attorneys are credible.  They are a reflection of YOU.  d.) Sellers – Make sure they are on top of their game.  Sometimes you get a weird one.  Don’t let them derail the deal (rare).

• Coordinate the closing.  Either have attorney send you docs to send to your Buyer or put them in direct contact with each other.

• Ensure the HUD(s) are accurate before your Buyer sees them.  Also Ensure the Seller knows what is going on timing-wise with the deal. Close it.  Do it again, and again, and again. Smile. 

Step 5:  Repeat Business

• When you have closed a deal make sure to get a testimonial.  Ask them what else they are buying.  Bring them more deals.  It’s ok if it is not overnight.  Just bring it to them.

• Reputation.  When you treat people right, your reputation grows in the right way.  Guard it, it is a small world out there.  Integrity and honesty will always win out, even if you have a disgruntled Buyer. You will get these from time to time because you stood your ground on solid, moral principles.  These are not the people you want to do business with anyways.  Know, like and trust is a two way street always.

• When you close deals and have a good reputation, repeat business is inevitable. Your integrity is ultimately the only thing you have.  The better it is, the easier it is to build credibility with your Buyers and build your business.  Be authentic and prosper.

Building credibility with Buyers takes some time as well as commitment.  Spend time to reach out and follow up these Buyers ensuring that you say what you mean and mean what you say in the process.  Buyers definitely want to have business with people they know, like, and trust so work hard on it.