Technology TransactionsWhat Do Buyers Want?
Like Freud"s famous question regarding women, REALTORS® often ask
themselves the same thing - what do buyers want? The answer to that question
may tantalize you, especially if you are losing customers to other agents, the
Internet, for sale by owners, or anyone else who seems to have the answer.
The questions don"t end, especially if you want to know why they don"t
choose your services. How can you improve service so they will choose you?
If you are trying to market to buyers, especially first-time buyers, a good
place to find the answers is to examine a few trends that are most
affecting the real estate industry today. That will help you better understand
the buyer"s mindset, and enable you to provide the right set of services to
meet their needs.
Here are a few cultural and economic trends that affect buyers and what
they want:
The Skepticism of Generation X
Just as the Baby Boomer generation has its characteristics, so does the
Generation X first-time and move-up home buyers. The Gen X"ers are children of
wealth, privilege and instant gratification. Very few have been to war. But
they are also the products of the highest divorce rate in history, and the
first generation to attend school with metal detectors on the doors. For a
number of reasons, the Gen X"er says, "Prove it. "
"Question everything," is their cultural motto, and if they don"t like the
answers, they do business elsewhere.
Like all generations, they are egocentric within their own culture. If you
can"t speak their language, or do business in the medium that they are
comfortable with - namely the Internet - they will dismiss you as a dinosaur.
The solution: Forget "vanity" advertising campaigns. They don"t care about you, they care about what you can do for them. Don"t respond to direct questions
with generalities. When a buyer asks you what you can do for them, be specific with a step-by-step outline of your services.
Buyer"s Advocacy
This is the generation that is driving open information consumerism and
buyer"s agency. If you try to show this buyer a home that doesn"t fit his/her
profile simply because it is your newest listing, you will lose. This customer
wants an advocate. They aren"t fooled by the old saw that the seller pays the
agent. They are smart enough to know that the buyer pays the agent out of the
transaction proceeds, so they want their money"s worth. If buyers really
believed they were represented for free, the Internet home search sites would
be empty, and all buyers would be represented by agents.
The solution : Don"t play the shell game with this generation. Don"t have an underlying agenda. Don"t serve two masters - you are either representing the buyer or you aren"t. You must show clearly what value you can bring them in the
transaction.
The Information Age
First -time buyers were weaned on the
Internet, and most are computer literate. With the deluge of information that
can be found on the Internet, buyers are obtaining information for themselves
about the home buying process, leaving agents out in the cold. On the flip
side, they are also being given a lot of misinformation. The result is
confusion and a buyer who is reluctant to act.
The solution : Be as familiar with the Internet as they are. Head disaster
off at the pass by consolidating the best sites for your buyer and sending them
the URLs via e-mail before they get bogged down on the "Net. Your
helpful but hands-off approach will be appreciated. Let them shop for a loan,
look at homes or learn about the process on their own time in their own way. Be
there as the safety net. Deliver information and services as directly as
possible. Know what they know.
Ask a lot of questions which will help your buyer sort out what they want
and don"t want. Don"t add to the confusion by showing them loans, homes or
information they don"t need. Remember, this buyer is very wary of a competing
agenda.
The confused buyer will also not only test your patience, but will also require you
to be up-to-the-minute in your Internet/technology skills. Be prepared to
communicate primarily via e-mail, and be able to send photos and listings via
e-mail. Tell it like it is. Be direct. Don"t waste their time.
The Seller"s Market
Despite seasonal adjustments and predictions by
the National Association of REALTORS®(NAR)
and the National Association of Home
Builders(NAHB) that home sales will not be as high this year as last years
record sales, communities from Houston to Washington, D.C. are still reporting
hot markets.
The result is the do-it-yourself Internet buyer is going to use any means
possible to find a home, including having multiple agents work for them,
calling on FSBOs, looking at new homes or having a home built.
If your community is in a hot market, perhaps what your buyers need is an
education about the economics of the marketplace, and what they can do to
position themselves to buy the home of their dreams.
The solution : Explain the advantages of working with one agent, that you
can network with other agents for them, negotiate better prices on new homes,
and help them get into the home they want faster. You can help them become
buyer ready - show those sellers and builders that they are serious.
Tell them that the best indicators of buyer readiness are:
The buyers are working with an agent. This immediately adds credibility to
the buyer, because few agents will spend time with an unqualified buyer. A
buyer working with an agent generally will have a clearer idea of the type of
home they want, and will be pre-qualified by a lender.
The buyers are pre-qualified by lenders. This is the surest sign that the
buyer is serious. They know the price range, and probably the type of home and
the neighborhood they want.
Fear
Along with the excitement of owning a home for the first time comes many
fears. Buyers fear such things as choosing the wrong home, getting into the
wrong school district, not being able to resell if they have to, overpaying for
a home, discovering the need for expensive repairs, and not being able to make
their payments. Like the confused buyer, the scared buyer is often reluctant to act.
Buyers think the largest purchase of their lives is their home. It isn"t.
The loan is.
The solution : Putting the home loan in perspective will go a long way
toward building your credibility with the buyer. Helping your buyer get
pre-qualified is not just a convenience for you so you start showing them
homes. It can also be an opportunity for you to build your buyer"s confidence.
Ask your buyer what their concerns are. Be ready with school reports, crime
statistics, neighborhood profiles or whatever it takes to ease their fears.
Offer the option of a home warranty if the seller hasn"t provided one.
With the first time buyer, hand-holding is part of the job of the Realtor,
even if the customer thinks they don"t need it. A clever agent will find a way
to hold the buyer"s hand where the buyer never feels a thing.