Home Buying Process
If your Realtor knew how you go about buying a home, do you think they would do a better job for you? Would you enjoy the home buying process even more? People go through the same buying process whether they are buying a candy bar, car, or home. In fact regardless of what you are buying, you will go through the same 5 "states."
The Five States of Buying
The five states are what my wife and I have labeled: No-need, Un-need, Need Evaluation, Solution Search, and Perceived Risk. If you don't believe me then follow along. We will start with a real estate example.
Home Buying
No-Need
John Smith is a 28 year old recently married gentlemen. He was married in November and just got back from his honeymoon. Everything is looking grand. John is in no need. As we move through the holidays things continue to go great. He and his new bride live in a 2 BR 2 BA apartment. Along comes April and John has to pay taxes.
Un-Need
John enters un-need. He either does not recognize his need or he doesn't realize there is something out there that can help him. He sure does wish he could lower his tax bill but he and his wife are not ready to expand the family which he knows will add deductions but also quite an 
expense and responsibility. John receives a great postcard from Jeff Fritzson Real Estate of Frisco Texas. The postcard is focused on the benefits of home ownership and how it can help lower your tax burden. Do you think John is curious? He goes to the seminar and wants to know more.
Need Evaluation
John has now started to enter need definition. He and his wife sit down and start making a list of criteria for their new house. While they are prioritizing, John follows Jeff's advice and also sees a recommended lender who pre-qualifies John and his bride. Now they have a budget established, location and some criteria. They are ready to move into solution search.
Solution Search
Jeff starts showing the couple houses that fit their criteria. During this search some of their criteria and priorities change and soon they find the house they want. However, they now are entering perceived risk.
Perceived Risk
They start having talks like can we afford it, do we need to take on this debt, is this really the right
school district, etc... They know they have to make a decision. If they move forward a buy it then after the close they are really back in no need as far as a house goes. If they decide against the purchase then they either go back to solution search or they may think that there is no house out there today and move back to un or no need.
Candy Bar
Same thing holds true for a candy bar but you move through these states much quicker. You just finished lunch and you are in no-need. Time passes and it is now 3:30 and you are in un-need. You know you are sort of hungry but not sure what is available. You then realize there is a vending machine. My priorities become almost immediately defined. My budget is less than $2 and it has to be something in the machine. You start looking, Kit Kat, Hersheys, Grand, Twixt, and then you spot it, the Butterfinger.
You don't immediately put your money is as you start to think of the risks: will it drop out of the machine, should I really be eating this, can I wait until dinner? You make a decision and you move forward. People buy everything moving through these states. You may only last an instant in one or you could languish there for weeks and months.
The real question is this: if your Realtor understood this, could they help you thought this by maximizing your value and minimizing the stress? Let me show you how much it helps. Remember:
Your Success is My Focus
This is part 1 of a two part post. The other one will be focused on applying this as a Realtor. If this is of great interest to you then feel free to look up Focus on Buyers: Selling from Your Prospect's Point of View by Jeff and Rebecca Fritzson
Comments (7)Subscribe to CommentsComment