RE/MAX CROSSROADS TOP PRODUCERS TIPS:
Bruce Keith just posted a very timely blog about Agents’ experience with the present low-inventory in the GTA and an approach to deal with buyers in this situation. There are not enough houses to show your buyers and when you do find a suitable home, you are forced into a multiple offer situation which makes it very difficult to be efficient with your time. What’s the solution? Keith says there are 4 very important steps to follow:
1) “Buyer strategy review session” - The purpose of this meeting is to go over with your prospect “what we’ve learned together and we will decide on a plan for what we should do next”. This is where you can educate your buyer so they can move forward in the home buying process.
2) Speak the truth - In that meeting it’s your job as a Real Estate Professional to tell them the truth. “Mr./Mrs. Buyer, the home you’re looking for is not on the market and we need to review our strategies for finding your dream home, may I explain?” (OKAY)
“We have three options here…
#1. Increase the amount of money you are prepared to spend so we can be more competitive, or
#2. Reduce some of the criteria for the home you want to buy, or
#3. Expand the area you want to move to”.
Help them decide which is the best approach to get the job done now.
3) Be Realistic - If your buyer is not prepared to change their strategy then you need to change yours… it’s not your job to find something that doesn’t exist. Put them on the back burner and stop spending so much time looking for a needle in a haystack.
4) Door Knocking - Here’s one more idea before you go after another buyer… You can always door knock the area they are looking at to see if there are any “pocket listings” that have not listed yet.
Keith emphasizes that you should not fall into the trap of “I’ve spent so much time with these people, I can’t afford to let them go now – maybe something will show up”. Just because they are motivated and are prequalified financially doesn’t mean that what the home they want to buy is readily available. This will slow you down immeasurably and ultimately cause great frustration for yourself.
The solution if they are not prepared to change?… Find a buyer who you can help. Don’t get stuck with a buyer you can’t help. If that happens, you need to go to work and generate some new leads. That’s a much more productive approach in the long run.