Everyone wants more listings, but if you are working with buyers who are monopolizing your time, you are missing out on opportunities to hunt for those valuable listings. It is time to get those buyers under control.
Make sure you are not spending time with buyers who are just wasting your time. Properly educate your buyers so they are well prepared for what they are going to have to do to compete and shine in the low inventory market. Be sure to balance that education so you are not scaring them away (remember, this could happen very easily). Finally, when working with buyers, be sure to tell them the truth about the market, but be certain to balance it out with the positive aspects as well.
Check out this sample script you can use when working with buyers…
Working with Buyers: Sample Script
“We need to look at the list price like the opening bid at an auction. Mr./Mrs. Buyer — prices in this area are selling 10%–20% over the list with multiple bids. Now, the reason for that is because you have picked an incredible community — a very popular community — one that holds its value well. It’s worth it for us to get in there and get your piece of this community. The good news is interest rates are still incredibly low, so it does make this affordable because the cost of money is so reasonable.”
Remember, tell them what they must do and then balance that with the additional opportunities available to them.
Working with Buyers: Review Your Current Buyer List
Take a look at the following questions to get the most benefit out of your current buyer list…
Who do you need to have a heart to heart with?
Who do you need to move to the back burner because what they’re looking for is so hard to find, or they’re too hard to help?
Who do you need to fire if they are just not willing to listen?
Working With Buyers: Getting Offers Accepted
Are you missing something that could help get those offers accepted? Check out these helpful tips to increase the odds that your offer gets accepted:
Write the offer as high as possible.
Take out any unnecessary contingencies.
Put your best foot forward. If your offer was a top choice just not the first choice, work with the listing agent to accept you as a formal backup. About 40% of the time those first deals are falling out within the first week or so.
Working With Buyers: Listing Agents Can Be Difficult to Work With in a Low Inventory Market
They can be hard to communicate with and maybe even moody because they are dealing with the onslaught of many bids. Do your best to make a friend. Reach out and talk to them to help build your case. If you have a terrific lender, have them call the listing agent before you submit the offer. Have them assure the listing agent that your buyers are great, that you are a good agent to work with, and that the lender is easy to work with and very accessible.
If you want more guidance on how to grow your luxury real estate practice, you can learn more about the Institute’s training options here.
One thing I’ve done and it worked so I’m gettting this done with new buyers looking if the very hot neighborhoods.
My strategy is to get them completely approved, through Underwriting so the only item we need to do is identify a property and get the appraisal completed. Now the reality is, there is still a process needing to be done to fully approve the loan, however, with agents trying to justify why my offer is better than others, it is comforting to sellers that the buyer has been fully vetted. We have had 3 transactions fall apart the last week before closing because of something that showed up in final underwriting that the LO and his/her team missed.