Did you know that over five million homes will be sold in 2019 alone?

Though a realtors personal goal would be to sell as many houses as possible, they are sometimes confronted with conflicting interests.

This is because they also act as consultants for their clients. Working in the buyer’s full interest may mean working to push the price lower.

In doing so, their commission becomes lower as they are paid a percentage of the purchase amount.

As a realtor, balancing your interest and that of the client may be challenging. At times realtors withhold information so that the deal is not compromised.

However, to ensure long term industry success, you should always focus on the interest of the real estate buyer. In this article, we shall discuss some of the things realtors should always tell home buyers. The following are some of them.

1. Pushing the Seller Way Below the Asking Price Will Reduce Chances of Getting Concessions Later

Both parties at either end of the transaction want to get a favorable deal. For the buyer, the lower price is better. As their consultant, you should inform them that there are multiple aspects to the purchase.

Let them know that getting the price to rock bottom will reduce their negotiating power later on. Sellers are less likely to agree to handle the repairs or inspection charges.

If the buyers are unaware of this fact, it may cause the deal to break down in the latter stages.

2. I Will Craft You an Offer Based on Comparative Market Analysis

Some moments in a realtor’s routine can help build trust with the client. When a client likes a house and finally asks for the price, is one such moment.

When a client shows interest in a home, do not be quick to name a price.

Instead, tell them you will do a comprehensive market analysis of similar properties in the area that were recently sold.

With such information, you can give your client an accurate price range based on current market data. Also, it will show them you are willing to go the extra mile for them.

This will make them trust and value your opinion more when negotiations begin.

As you do your market analysis, try to identify other factors that may affect the price that you can legally divulge. This could be the seller’s motivation or recent market changes.

3. Very Low First Offers Tend to Backfire on the Real Estate Buyer

Making the first offer is often the first step to what could be a tricky negotiation. Normally, buyers would opt to quote a low price.

When markets seem to be slowing down, buyers can be tempted to make very low offers. This may be because they want the cost as little as possible or to test the sellers resolve. Whichever the case, it may end up backfiring on the buyer.

Before making the initial offer, it is essential to try and gain an idea of who the seller is, to understand their motivations.

This will help you guide the buyer on a suitable initial first offer. For instance, sellers who are putting up the first house they owned on the market will have a higher sentimental attachment to it.

Therefore, presenting a very low initial may break down negotiations early on.

You should advise the buyer to offer something lower but close to the market value. This will provide enough room to negotiate for a fair price within the market value.

4. Delay That Spending Spree Until After You Close the Deal

Many buyers tend to purchase homes on the higher end of the price range they can afford. This ends up leaving little room on their loan qualification score.

This may not be necessarily wrong, but it can present challenges if accompanied by massive credit card spending before closing the deal.

A buyer can be tempted to go for a spending spree on furniture or other household items for their new home.

Advise them to hold off such spending until the deal is done. Lenders perform regular credit checks before releasing funds. They may refuse to finance the loan if they notice an increase in credit card debt.

5. I Do Not Know, but I Can Help You Find Out

As a realtor, your attempts to provide your clients with as much value as possible may do you a disservice. It is important to focus on your key roles and strengths.

Real estate agents play the role of lawyers, appraisers or even engineers to ensure customer satisfaction. However, this may end up compromising the value of your service to your customers.

In such instances, merely saying you do not know something is better than offering to do everything. Being honest will also make you more trustworthy.

However, you should still show your commitment and offer to inquire on your client’s behalf.

6. Be Prepared for Delays

The process of closing a deal is reliant on many inter-dependent activities. Last minute delays may arise thus pushing closing day a few days back.

It is often because lenders want to see the survey, title and other documents first. Inform the buyer of such possibilities so that they can make arrangements accordingly.

7. Use an Affordability Calculator

You should Advice your buyers to use an affordability calculator. It will ensure that they will be able to meet the future expenses that come with owning a home.

8. You Can Spend a Bit More Than You Planned

Usually, buyers are advised to stick to their budget. Depending on the situation, the contrary may also be sound advice in some instances. Spending a few thousand dollars extra for a great deal may be worth it.

9. The Challenges Upfront

As a realtor, you should disclose any issues regarding the house.

It will be better for you to look for other houses than damaging your reputation with an unsatisfied client.

Communication is a significant aspect of the real estate industry. It helps to get deals across the line and also in marketing and converting leads.

Automated responses are also a good way for realtors to engage with leads and save time. You can check out Happy Grasshopper to learn more about database nurturing and automated responses.

Why Honesty Is Crucial for Realtors

Buying a house is one of the most significant investments a person can make. People often take time to find a realtor that can truly focus on their needs.

Ensuring that your real estate buyer is satisfied is one of the best and most effective ways of advertising.

With over four decades of real estate marketing and consulting, Bonnie Roberts Realty can help you make the right decision when buying a home. Get in touch with us today for more information.