Must Tell Things to Tell Your Home Buyer from the Start

Real estate transactions fall apart every day for a variety of different reasons. Many times these deal killer situations could have been completely avoided if the real estate agent had simply educated their buyer clients a bit about the process before the first purchase contract was ever written.  Don't be afraid of giving your buyer clients an early education about potential problems that may come up during the progression of the transaction and how they are generally resolved and even your role in the process. Negative surprises in an emotionally charged and time sensitive home purchase process can be avoided in many cases by going through a checklist of instructions with the buyers in advance.

1.    Great Price and Seller Concessions?

Everybody wants to make a good deal on , and working a motivated seller into a great purchase price is the goal of most buyers. Be sure to talk to your buyers about how this will influence the process in almost every aspect through the entire closing process.  Let them know that getting a seller to accept their low ball price will generally insure that they will not agree to further concessions for repairs, etc. As long as you have educated your buyers to this fact, you will hopefully avoid the deal falling through due to seller remorse or inspection correction issues. 

2. A Really Low Ball Offer May Backfire on You

A slow market with high inventory may encourage buyers to make low ball offers to check the sellers motivation level. Sometimes this is not that unusual, and sellers simply come back with a high counter offer to draw the buyer up to a reasonable price.  However, with first time sellers who've cared for and loved their home for many years, a very low offer can offend them and they will outright reject the offer and refuse to negotiate with these buyers.

3. Do a Comparative Market Analysis for Validate Your Offer

When get the question "What price should I offer for this home?". You should advise your client via a comprehensive market analysis (CMA) of similar recently sold properties in that area. This should give a range and your buyer can then choose an offering price based on accurate market statistics. If there are other factors that you can legally divulge to your client about seller motivation or recent market changes, definitely do that and help them to feel comfortable with the price they decide on.

4. I'm Not an Expert, But I'll Help You to Find One

Too many real estate agents get into trouble by trying to be helpful to their clients in areas that they shouldn't be. You're not an inspector, appraiser, engineer or lawyer. Don't try to take on their tasks and responsibilities believing that you're providing service to your clients. "I don't know" is a valid response, especially when followed with "but I'll help you to find out." You actually enhance your value to the client by being honest about your knowledge and helping them to locate the appropriate competent professional to answer their questions.

5. Real Estate Sales is How I Make My Living

This will lead to the assumption that you want to get paid. I see too many agents, particularly newer ones, get burned out early in the game showing a great numbers of homes to a buyer who calls one day to say they called on a sign and purchased a home with another agent.  You want to help them to find the home of their dreams, and to devote the time necessary to turn over every rock to find it, you would like to execute a buyer representation agreement. Explaining and getting this agreement in writing will help to assure you a commission if they do buy a home.

6. Don't Buy Anything Until After Closing

With many of today's buyers purchasing homes at the higher end of what they can afford, there isn't much room left in their loan qualifying ratios. Closings have fallen apart days before closing because the lender did an updated credit check and charges for new furniture or appliances on the purchasers on a credit card.  Always advise your buyers to make no significant credit changes or purchases in this critical pre-closing phase.

7. Sometimes Stuff Just Happens

There are so many different aspects involved in a real estate transaction and closing, so it's not unusual for there to be last minute changes and delays that move a closing a few days farther back. Many times this is due to loan documents, as the lender wants to see the appraisal, survey, title and other documents first. If any of these are delayed, then the closing might be later than expected. Though it can't always be avoided, try to be sure that your client doesn't arrive with their furniture on a moving truck on closing day with no place to live or money to pay the movers for van storage because they can't move in for three days.