I really loaded up my work having this and Dealing With Agents in the same section but they go hand in hand.
The Unicorn House
That magical one of a kind home that they want but you know it doesn’t exist. How do you explain this to them when they claim their friend’s mother’s cousin’s locker mate from high school says they saw that unicorn house?
Go search all past homes for the last 18 months looking for that home. If you can’t find it there, especially in a rising market, it’s not going to show up now. This is one of the places where raw data can influence.
Low-ball Offers
There are two versions of this buyer. One is where they just want a perceived deal. These are really annoying buyers. They want $10,000 off no matter the situation. In one case I had a client who said he was ready to write an offer but he wanted $5,000 off. I said, “That should work, they just dropped it $5,000.“
He said, “I want $5,000 more off.” I don’t think he ever bought.
The other is where they just think everything is worth less than what it is. Just bear with them, if they are serious, they will eventually come around. Just keep telling them what you think it will go for and after they lose, you will likely be proven correct. Eventually, they will be fed up with losing and you will be the obvious expert. It’s annoying but part of it.
First Crush
This is a problem that arises when they fall in love with a house either before they are qualified or it just happens. They loved it, it was perfect and every following home gets compared to it. I don’t have a good script or tactic to help you with this, I just want to warn you. One small tactic is not to show them homes until they are approved by a lender. This way they don’t miss out.
Luxury Tasted Becomes A Necessity
Have you noticed that loaner cars at the dealership are brand new, very nice cars? They do this because they want you to fall in love with the luxury of it and be disappointed in getting into your old car. Many of the free trials are with all of the bells and whistles so the downgrade is painful.
This is why you don’t want to show someone homes until they are pre-approved. Nothing is worse than showing homes and then telling the buyer they have to look at home for $50,000 less. They just lost a lot and it is difficult.
Figuring Out A Price In A Multiple Offer Situation
When we figure out the price, it’s based on what happened in the past on a different home where we don’t know all of the details. We can only narrow in on a price. I tell my clients that I will get close to a price but they are the experts in exactly what they want and what the home is worth. They should write an offer that whether they win or lose, they won’t regret their offer. Which one will make them sleep better tonight.
Repair Addendums
Setting expectations during the buyer’s consultation are best. Negotiations should be reserved for things that weren’t obvious during the showing. Bringing up obvious things will piss off of the seller, like the carpet, because they thought that was part of the original negotiations.
I have found that if you ask for 3-5 important items on an addendum, generally you will get most of them depending on price or difficulty.
If you ask for 12 items, the seller often takes it personally and you get 1-3. I almost saw a $1,000,000 deal blow up over $250. It was insane that someone stood on a principle like that. Everyone has their line in the sand and real estate is much more emotion-based than people expect.
Changing Goals
You’ll get the client that is looking for one level homes with a yard and then ask to see a condo in a high rise. You’re not a tour guide to see pretty homes. Ask, “Did your home criteria change?” You should understand your clients so well that you could easily recite their needs to another agent. The better you know them the fewer homes you have to show them. Dial them in and find them the house.
Exercise: Go back to previous conversations with clients and assess what you could have done differently to make the transaction or process smoother.
Do the work, get the results.
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