I was reminded yesterday that it's been two weeks since I've posted here on Active Rain. Wow - that must be a record for me! Anyway, here I am... and I've been working on a Q&A for a Colorado online real estate school to include in their weekly newsletter, so thought I'd give one of the Q's a test drive here...
So, without further adoooooooo....
Question:
"How can I convince a buyer that now is a good time to buy?"
JA Answer:
I don't believe in "convincing" anyone to make a huge decision like whether or not to purchase a home! Our buyers are adults and should be allowed to reach their own conclusions, based on their personal circumstances, beliefs and tolerance for risk. That said, you CAN help them reach the right decision for themselves by being knowledgeable, supportive and non-pushy.
- Knowledgeable: Stay on top of market trends and data. Read those articles and reports that come across your desk or email regarding the local real estate market and economy (both the positive and the doom & gloomer ones). Be prepared with facts & figures in case your buyer asks for them (see below).
- Supportive: Did you ever notice that when someone argues with you, you tend to dig in your heels and hold even more firmly to your opinion? I know I do, you probably do, too. So, if your buyer declares that the timing isn't right for him to buy a house, acknowledge and respect his position. Don't argue with it! Have you heard the saying "Those convinced against their will are of the same opinion still?"
- Non-pushy: Our buyers know that we're paid on commission. Therefore, if you appear to be pushing them to do something they've decided they don't want to do; you'll likely lose their trust, and subsequently their future business. Buyers expect their agent to be looking out for their best interests, so any indication to the contrary (i.e. the agent seems more concerned with a paycheck than with the buyer's needs) may seriously damage the relationship.
The Punch Line: Here's the cool part. IF you are knowledgeable about your local market, supportive of your buyer's opinions and you DON'T PUSH him, one of two things will probably happen.
First, once the buyer realizes you are on his team, he may actually ask you for your opinion on the matter, at which time you are free to give it (this is where having the above-mentioned market knowledge comes in handy). Once he asks for your advice, he'll be much more willing to listen to it than if you'd pushed it on him, uninvited.
Or, second, he may decide not to buy a home right now, but will be back on your doorstep at a future date when he feels better about the market, the economy or his financial circumstances. And there's nothing wrong with a full pipeline!
Happy Friday, my friends!
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Right on! I cringe when I hear an agent ask, "how can I get them to buy a house?"
The short answer is, "you cannot." And if you persist in trying the WRONG way, you will eliminate the future possibility of helping them.
Hi JA. Two weeks without you. It has been tough!
I am glad to read someone who sees EXACTLY eye to eye with me on how to handle customers.
Thanks for spreading the word.
Ken
That's true, great post. It is their decision and ultimately, you can't a buyer do anything, it's their decision.
Morning Jennifer,
Nice to have you back. Been a while.
Reading and knowing your buyer is one of the most important factor in a a successful transaction. I for one treat them as I want to be treated. Thanks for posting.
I think you have to act as your clients agent. To me, that means acting on their behalf as you would if you were in their shoes and with an abundance of knowledge and expertise.
Good Morning Jennifer,
Nobody like a pushy "anybody", but if you are going to push, you owe it to your client to educate. Educate on the history of the market, on the current trends, on the future you see. Education build rapport and you place on the ladder. "Expert".
This hits right in with your section on Knowledge. Information is not knowledge. Let's use the information available at our hands to empower our client for success.
Enjoy the Day! Dave Park - The Maverick Builder
Dave & Randall - Absolutely! I just believe that it's more effective to wait to be asked for our opinion before giving it. That way, our audience will actually listen to it! Have a great weekend!
Hal - I know you do!!!!
Brian - Yep - easy to forget that sometimes, though, isn't it? The thing is - if you actually believe that it's your client's decision, they'll often make the decision you're hoping for!
Ken - Glad to be back!!!!!
Susan - I went to a little Realtor party a few weeks ago where the topic of conversation was exactly this - HOW to get your buyers off the fence. The ideas presented were all good, but I think it's HUGE to show that you respect your buyer's fears and hesitations instead of simply arguing with them...
Good to see you back Jennifer. I absolutely agree with you. Along the same lines, I think houses sell themselves. I just show the house and let them make the decision for themselves. High pressure schemes and tactics are not how to show people you care for their needs and interests.
Jennifer, All too often I hear the chant in the office about "pushing the buyer into a sale". That's not how I work. I try to bind with them as well as your above mentioned abilities. I never push. I don't like to be pushed, so therefore I don't believe in doing the pushing. At least not when I'm showing houses. Great post as always. Continued success to you.
I wish someone would remind me that I haven't posted in awhile. LOL :)
Hi Jennifer!
Great answers! we need to make sure we have our clients best interests at heart when ever we work with them.
Have a great weekend!
Rob
I am laid back and just let my clients make up there mind. When the situation is right they will buy,
Great points - Real estate is definitely local. I am surprised how many people read the national news stories and simply don't realize that some market - like mine - have actually had median prices increase, not decrease.
Clients must make up their own minds-- does anyone really want the client coming back in a year and saying "you made me to buy and i was not ready"?
Great post this a hot topic.
I'd show them that prices are at the lowest in two years. Remind them that prices have gone down over 40% in most areas. Stats showing home price trends can be found at this site:
http://www.homepricetrend.com
Here in New York City, the market is changing rapidly and not for the better. Everyday the news changes about new economic data and how the economy is in a world of hurt. We had multipe buyers who were out and looking ready to buy when they found the right apartment.
Now we are at a standstill and for some of them I can't blame them. Getting somebody to buy is just not going to happen but at the same time asking them how much they think the market is going to go down is a question that I think is important to ask.
It is the buyer's job to make the decision whether or not to purchase a house, and it's our job to provide them with all the information they need to make their decision. Pushy should not enter the picture!
Customers are people too. Treat them as you want to be treated.
Thanks for sharing
Rich
Charlotte NC
Jennifer,
Gone are the days of pressure selling---I've seen it over the years in many new home communities. Consumers are too intelligent to fall for this.....we need to be purveyors of information.
Jennifer, well said ! I think it comes down for agents to be consultative to the buyers and let them make the decisions, or we gradually lead them to that decision. If the best decision is hold off and wait, then it is all good. As you said, chances are that buyer will come back to you when he/she is ready. Sometimes they do not as they may contact another agent down the road or a listing agent directly but if the relationship was established in the beginning then for the most part, that buyer will stay with the agent when he/she is ready to move foward in the marketplace.
This has been our selling style since we started. And it definitely works - the paradox is through this smile more houses will be sold by the agent versus the aggressive style. Is the beauty of salesmanship and being an advocate for your client !
Great post and it is awesome to see you back ! Good luck with the weekly newsletter.
The line that always makes me want to reach through the phone and jack the agent on the line right in the kisser... is....
drum roll please....
"Let's make some money"... I despise that!!!
Sean
Good Post, but that where yu consultant hat comes own. We're the experts and don't forget it. We know the market and kow when it's a good time to buy. I tell my clients How do I know it's a great time to buy Because I am buying. That's right as a Realtor I know the market ( at least here) and I am off the fence and in the game. I am closing on one this month and looking at one for next month or the month after.
Wow - what a surprise to wake up to a gold star! Thanks for all the comments - I'm traveling today so I won't be able to respond efficiently, but again, thanks!!
One thing to add to all the thoughts is that while we may be "market experts," we ain't psychic! Therefore, our hesitant buyers might be RIGHT that now is not the right time to buy - if they succumb to our pressure (or even all our fancy market data) and then the market plummets, we're gonna look pretty stupid. So, be careful about pushing, advising, even consulting on this topic because WE TRULY DON'T KNOW all the answers!
Very true! people don't seem to understand you cant sell someone a house! You have to sell yourself to them and build their trust!
Jennifer, you always offer practical, common sense advice. I was telling a friend about your book and she is very excited about reading it too.
Have a great weekend!
Jennifer... how to convince a buyer? Buy it for them.... lol Seriously, I think the biggest thing that jumped out is when you said, "when the buyer realizes that you are on their team".... I think that is so key. It can be hard to back off, but I have found the consumer to be more responsive when I just pull away and say.."well, this is what I can do...(depending on their cirumstances and depending on what they can accomplish), but if I can be of further assistance, you have my number and e-mail." That is usually for those that still want to test the waters with other lenders.... good post
Great post. Agree, you should not have to go home and try and try to come up with some reason to get them to buy a home. When most think back at there sales, there was just a lightbulb moment that made it happen.
Good information Jennifer. I think that not being pushy is VERY important. I just received an amazing letter back from some clients that I just sold a condo to and that was something that they mentioned. In fact, they mentioned all three things that you just listed above.
Great post! I agree that we can not push them as it will either turn them away or make you appear as if you are only serving your personal agenda and not theirs.
Lisa Norton
I hope many more will read this! I would like to add that if they are not pushed, they may even send others to you BEFORE they are ready to buy! Just stay in touch!
Jennifer, great thoughts that you are a "facilitator" to your buyer.
Jennifer, well said. It all boils down to the "why the buyer wants to buy." Buyers want to buy a home, not to be "sold."
Educate, Educate, Educate...I find more and more every day that a first time home buyer needs to be educated on the positive aspects of owning real estate. They need to be educated on the ENTIRE home buying process from "prequalifying" to the "closing table". Educate them in your conversations and even your ads. Use key words to get their attention. Renters have to pay to live where they are now so they might as well be paying themselves a future investment. I am surprised that a lot of first time home buyers are just shy about the whole process and think they could never own a home at their age or their income. Once they are educated...they'll buy!
It is not the right time to buy for everyone - once they hear the details of the transaction - they may not buy. That is ok - we work with those who are "willing and able".
Exactly, Jennifer. They are adults consulting with us. I've had to tell a few clients that perhaps this is not a good time for them to buy. They appreciate the candor and know that I have their best interests first in my mind.
wow u look great. no need to read Im already convinced
Jennifer, that's good sound advice and common sense that will be great in print on the Colorado on-line real estate school.
I couldn't agree more. Buyers are making one of the biggest decisions of their lives and should NEVER be "made" to do anything!
Everyone is an individual and operates in their own best interests. However most people share some attributes and wiring of their brains. I have found that most have a fear of loss that outweighs the possibility of gain. May not make sense to all, but I have found this to be the case.
Vin
GREAT post. It feels so much better to be sitting at a closing table knowing your clients got the right house for the right reasons.
Great post, Reminds me of a quote:
Right reason is stronger than force.
James A. Garfield
No one pick the bottom....just like no one could pick the top. There will be a lot of money made in real estate for those that buy now.
Jennifer now when people register for a home finder on my website. I just send them a thank you for visting my website note. Being a pushy real estate agent is already telling them what kind of real estate agent you are going to be once you represent them. Congratulations on the featured post. And if you are going to leave two weeks Jennifer at least let me know-LOL. Have a great weekend. Great post.
Very well said Jennifer.
This is a great post. Has lots of great information. Thank you for sharing.
Great post! The buyer has to be "ready to do business". This past week, one of my agents lost a potential deal when a resale (at $389,000), worth $360,000, went to foreclosure and was listed for $329,000. There were 4 contracts at full price and our Buyer was $1000 over asking. Lost the deal. They did not have a current credit approval. Got to be ready!
I agree with the above, and I also think that if you push a buyer into a home that they don't feel is right for them, they will not be happy and will not be singing your praises to their friends either.
Sorry, misnamed the previous comment. Fred
Knowledgable, Supportive, and non-pushy has been working for us. We're always there looking out for the interest of our client. After losing out on a REO property last week, our buyer signed on a new build spec today. This makes 3 buyers in escrow!
Jennifer, our duty is to educate our buyers so they can make a smart real estate decision on their own. I don't want to be responsible for pushing anybody into anything.
Jennifer,
You make some very valid points. We're here to advice, not coerce, our clients, and if they don't trust us, they won't be able to accept our knowledgeable advice.
Jennifer, You have been missed! A clients comfort level is important. You are so right... Being pushy is not going to get business.
Hi Jennifer, I think you need to educate potential buyers, arming them with as much information as possible so that they can make an informed decision. With all the negativity on the national news, sometimes it is challenging to share information with them that sounds different from what they hear on the big news stations, but that's the challenge we face in today's market.
Jennifer,
It's so true that no matter how much knowledgeable you are about the market than a buyer and you keep pushing your opinions on him, he/she most likely will take a pass on you. Supportive of his opinions is a good way to put it.
I agree with you. The Buyers don't want to be pushed.
My dad was a top producer in the Muskegon area for several years when I was a kid. I never wanted to sell real estate, but just in case.... I asked him before he passed away, "How do you sell real estate?" He replied, "You don't sell it. It sells itself." Once I got into selling I was talking Real Estate with one of my brothers thinking he would probably be good at it. He said, "I asked dad before he died...." He got the same answer as I!
I believe the real estate market in West Michigan has bottomed out. Many times lately when I set up a showing on a home, I am told there is an offer or multiple offers already. I believe the nice homes and the homes priced right are selling fairly soon while the not so nice homes give the media and the Poor Me Realtors something to cry about.
Brent Link, CRS, e-PRO, TRC, Realtor
Serving West Michigan and the World
Great advice Jennifer.
I was taught from the beginning that knowing you inventory (what you call knowledge) is one of the most important things we can do. If the the clients believes we know what we are taking about, we are the expert, they are more inclined to want to be on our team so to speak. The best way to establish rapport to to instill confidence in them. You do that by being knowledgeable.
I can't tell you how many times our agents hear from clients, "you are so different from a lot of the agents we have talked to, you actually know about the properties we are asking about without having to go looking in the computer or MLS book."
Amen to not convincing buyers or sellers to do something!
I don't know about you but I hate being sold and I hate being told/convinced to do something.
And even if the sale works, I am for certain that I won't use that person again or even refer them business.
I hate being sold.
What I love is when somebody can provide some insight about something that I didn't know that in turn helps me make an educated decision.
Inform me, don't convince me. :)
Ahhh... be the trusted advisor!!!! G
Thanks for the blgo Jennifer! You always have such good, uplifting, and positive info!
Jennifer, great post. Education is the key to coaching your clients to success and no one likes to be sold anyway..
Glad to read that you weren't actually advocating trying to "convince" anybody of anything. I also believe in educating the client so they can make their own decisions about all real estate matters. I'm here to support and work for them, not to sell them anything. Thanks!
What you say seems so logical, yet I see agents pushing buyers into homes almost every day - mainly because the agents want the commission. It has nothing to do with the buyer, or the market, but the agent's back pocket. I used to work for a broker (for about 2 months) who would berate their agents if they didn't sell a prospect a home. It didn't matter to the broker that the buyer didn't have a job, had no savings, and had a credit score in the 400's - just get out there and find them a house to buy! I had a client that was renting an apartment and moving out of state, and this broker wanted me to sell them a home here before they moved out of state.
Needless to say, I didn't last long with that broker, and am so happy that my new broker would never push anyone into a purchase or a listing. She also is very knowledgeable and supportive to our clients and me.
Troy - that's why I don't like production quotas or required business plans based on so many listings and buyers per month. I worked under something like that early in my career and yes, I did feel pressured to put deals together that weren't in my clients' best interests!