Be A Better Agent

HOW TO SET PROPER EXPECTATIONS WITH BUYERS

Posted on 06/29/2022 by Jamie Nevers

The best way to get your buyers under contract in this market is to set powerful expectations with them from the very beginning.

The following are 5 proven tips/strategies for making sure your clients are prepared in order to help create an extraordinary experience for them as you help them to achieve their real estate goals:

1. EDUCATE ABOUT CURRENT MARKET

  • Game Play/Practice with Clients – “Let’s pretend you are ready to buy a house.”
    • Walk them through the process of buying a home in the specific part of town they are interested in PRIOR to them being ready to fully go.
      • Helps them to experience what the market will feel like before they are all in.
    • Call every listing agent of the homes they are interested in and tell them exactly what that listing agent says.
    • Guide them through the reality before they need to have their suit of armor on and go through the full process.
    • Buyers will get burned and the more you can do to help them be prepared for that is worth the time.

2. THE PRICE

  • There is an emotional attachment that clients get to the price of the home.
    • Market determines the price.
    • List Price = “Beginning Options”/“Fake Price”
    • Agents do not know how to set a price right now so the price means nothing.
    • Show how far over the list price homes are selling and give very specific examples of comps (list price vs sold price) before even seeing it.

3. EDUCATE ON STRONGEST, MOST AGGRESSIVE OFFER OPTIONS

  • Can you keep it down to an average of 2 offers per buyer before under contract?
  • Show them the most aggressive offer up front so they know and understand the furthest they are willing to and can go.
  • When the time comes you can ask “how bad do you want this house?” and “how aggressive do you want to get?”

4. EDUCATE ABOUT OPTIONS

  • Talk to Everyone in your Database – Make the calls since they may want to go on the market but they are fearful of the unknown of what could happen.
  • Appraisal Gap Coverage – The toughest conversation to have since they think they understand it and then have trouble with it.
  • Off Market Property – There could be a property in the neighborhood they are interested in and where the seller doesn’t want to go through going on the market. Understand that for some sellers it’s not all about money. They might not want to be exposed, they might want the ease of transaction.

5. UNDERSTAND THE MONEY

  • What is liquid and readily available?
  • How long do they plan to be in this home? Why are you buying the house?
    • Then strategize on a plan. Be in the know if they want to buy and hold (either living in it or renting it)
  • HELOC – Could possible buy before they sold their property (for the example given the client used Vector Bank)
  • Be Creative. Are there other people in your database to be a cash offer provider for someone else? Create opportunities to do things together. Perhaps tenancy in common is an option they haven’t yet considered?.

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