Real estate agents have a duty to serve the best interest of their buyer clients. But sometimes buyers want or expect things without understanding the intricacies of it all. It's up to you as their agent to educate them on the process of buying a home so that emotional disappointments don't result in setbacks or, worse, losing them as a client altogether. Here are the top things you should let your buyers know up front to avoid the common pitfalls.
1. Their offer should be based on a market analysis. At some point, you'll have a buyer that asks what they should offer for a house. While expert opinion is invaluable to them, it's best to let the data speak for itself.
Do a comprehensive market analysis that will allow them to make an educated decision. This will include selling prices of recently sold homes in the area, but they'll need to factor in list-price-to-sales-price ratios, the home's history as far as improvements and length of time on the market, and the seller's motivation. Explaining how all these individual factors work together will help them come up with the best offer.
2. Rock-bottom offers can come at a price. Most buyers want to get into the home of their dreams at the lowest price possible. And there's nothing wrong with offering less than what the seller is asking—sometimes. But it's vital your client understands the consequences of doing so.
Most sellers who agree to a low-ball offer will not be willing to settle in other areas, like paying closing costs or taking care of needed repairs after the inspection. So long as the buyer understands that offering low could cost them a little more down the road, they should be prepared for any surprises.
3. You're not an expert at that. If your buyer asks questions that are better geared for an inspector, designer, contractor, or lawyer, don't try to act like an expert. For example, when doing a walk-through, the buyer may notice dark lines on the ceiling and ask if it's water damage. To you, it may look like studs and joists in the attic. But answering their question without knowing for sure can cause issues with your relationship, especially if the inspection does turn up water damage.
Tell your buyer you don't know, but an expert can investigate if they're serious about making an offer.
4. They need to sign an agreement. It's easy to get excited as a new agent and want to show as many homes as possible. But don't be afraid to ask your client to sign a buyer representation agreement early on. You don't want to invest hours with a buyer only to have them go down the road the next week and buy with the help of another agent or broker. After all, working as a real estate consultant or agent is how you make your living.Share
6 January 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.