Residential Real EstateBuyer Blahs
We"ve all heard that old bromide, "You can take a horse to water but you can"t make him drink." You can, however, hold his head under water until he is forced to inhale … . That"s what many agents feel like doing with their "buyers." Forcibly hold them down until they buy or die. Good luck. How"s that working for you so far this year?
The issue is not why they won"t buy. The issue is simpler than that. Most of the folks that agents are dragging around lack the three key components needed to be considered a true buyer prospect. They lack one or all of motivation, urgency or money. Kid yourself if you like. However, without all three, the journey from looking to buying will never end. It"s just like expecting the scenery to change when you"re not the lead dog.
It all must start with great needs assessment. Fleshing out lookers from buyers before you ever show a single property not only saves on frustration and wasted time, it frees up agents to seek out and pursue those persons who will move forward and make a buying decision. If you are too busy working dead ends, where do you find the time to invest in productivity? Busy is worthless. Productive is what feeds, clothes and houses you and your family.
No one can blame prospective purchasers for being leery of the market. If the talking heads can"t see the bottom, how can consumers be expected to make well-informed purchase decisions with such contradictory data to fall back upon? There is no question that they rely upon the skill and knowledge of the sales professional to guide them, yet we do have a vested interest in the outcome, and that in and of itself creates a bit of a conflict of interest. They wonder, Is my agent telling me what I need to know to make a great business decision, or is he/she telling me what they want me to hear to move forward?
That"s a reasonable query. It behooves the agent to be prepared to bring that question into the light before it is voiced by the buyer. It might sound something like this:
"Mr. and Mrs. Buyer, you might be wondering if the data I am providing to you is timely and accurate. With all that is seen and heard in the media about real estate, it follows that you might wonder if this is the right time for you to move forward knowing that if you do, it may benefit me and cost you. Clearly, I would benefit from your purchase of a home. However, there are so many purchasers out there today that waited for the market to fall further and while they waited, the mortgage industry"s challenges caused them to lose their ability to qualify for a loan. If they could get a loan, they would buy a home for less than perhaps they could have a year ago. Unfortunately, they can"t buy now because they do not have stellar credit or perhaps the extra down payment needed to get a loan. They literally waited themselves out of the market. See, the truth is that the time to buy and the time to sell is when you want to, not when you have to. If you need to purchase, do so based on the facts I am providing for you. Remember that in the end the appraiser will be there to protect you as well as the bank against a wrong purchase decision. Considering that fact, what is it that is compelling you to consider a move at this time?"
If there is nothing particularly pressing, that is a giant red flag to be fully explored. It matters not how great of an agent you may be. You are not so great as to be able to generate motivation in anyone. What you can do is to assist a real buyer with his/her market knowledge, overcoming trepidation and finding the right property. Isn"t it great to know that we are in a bullet-proof business? There will always be people who have to buy and ones that have to sell.
Purchasing and/or selling a home is still considered a most stressful experience. There must be some strong motivating factors present to help the buyer overcome the maze of challenges inherent in process and move forward. We all know what those seven or so reasons are: marriage/divorce, death, illness, job change, relocation, retirement, financial, up/down size and/or area change. If the prospect lacks even one out of all of these compelling motivators, your best bet is to stay in touch with them and find another real prospect, fast!