Spark Global Limited Reports:
Every home buyer is different, just as every home buying experience is different. Each of your clients has their own likes and dislikes. As a real estate expert, you should know how to adjust your approach and strategy to meet the wishes of your clients. Sorting customers by what motivates them to buy is one of the best ways to help them find their dream home. Read on for more on the homebuyer category.
First-time buyers tend to be younger and less experienced. They may start with unrealistic expectations and go on a long search before they really understand the market, what they can afford, and that the house within their budget may not be perfect. First-time home buyers often need more guidance than others, so market education is a good place to start. Such as:
Let buyers know what has recently sold in their market area and price range.
Prepare your buyer to have an unsuccessful first offer.
Make sure buyers use common sense, not emotion.
Keep drama to a minimum and act as a buffer between buyers and sellers.
Explain the importance of pre-approving a mortgage from the seller’s point of view.
Buyers who want to upgrade
These buyers typically have increasing numbers of households or incomes, and they expect higher quality and more space. While these buyers may have more realistic expectations than first-time buyers, they can also get bogged down in their search for their “dream” home and become unwilling to compromise. These buyers do not need as much guidance as first-time buyers, but it is still very helpful to provide them with relevant market information. Such as:
Show your clients not only the homes they want to buy, but also houses similar to the ones they want to sell, in order to set expectations based on the market.
Tell your client the pros and cons of closing two deals on the same day (the house they’re selling and the house they’re buying).
Offer the option of renting if it is advantageous.
If your clients want to sell and buy their homes on the same day, be extra diligent in qualifying buyers for their homes.
Check and repeat that the buyer is ready to close on time.
Buyers looking to downsize
These buyers can be further divided into two groups: “empty-nesters”, who are cutting back on spending as their children grow up and move away; Or “family transgender,” who are experiencing financial hardship, divorce or other unfortunate events that cause them to cut back on spending. When classifying such customers, it’s important to know whether the buyer wants a smaller home or a lower cost. To do this, you can:
Ask your client to make a list of the features of their dream home.
Ask your clients to pick three “must have” items on their wish list so you can help them determine what they can do without.
If these buyers want to sell the house they are selling on the same day they buy, be extra careful.
Buyers looking to relocate
Some clients are relocating for work, family needs, or simply because they want to experience a different community, town, or state. These clients often face the difficulty of buying a house in an area they are completely unfamiliar with. As a result, real estate professionals may need to spend more time helping these buyers find the best neighborhood and market prices. To do this, you can:
Tell your client where to find information about a particular community, such as crime rates, school system data, etc. This serves two purposes:
This relieves the real estate licensor of liability, which is good because these issues are outside our expertise.
Show buyers where to find this information and let them know where they can go if they want to view it in the future.
Put the interests of your buyer clients before your own — if it’s best for the buyer to rent until they know the area, make a suggestion.
Vacation home Buyers
Second-home buyers may buy homes purely for enjoyment and relaxation. As always, if a buyer needs financing, it is a good idea to get his or her consent before starting the search. As always, the resources you offer can vary based on the characteristics your clients are looking for in their second dreamers. There are many areas you can research to get a clearer picture of what they want. Such as: