How do you evaluate
This article is also written for BUYERS! Educate yourself to real estate practices with these step actions, and you will expedite your property purchase!
(1) First, ALL buyers should be prequalified. As a Realtor, or FSBO Seller, it is HIGHLY recommended to get buyers prequalified, prior to showing appointments.
What does “Prequalified” mean? Simply put, it’s written proof to show the buyer can afford to purchase realty property up to a set amount. A lender will write a pre-approval letter for a buyer, stating they are able to get a loan, or has the funds, to purchase.
The bottom line for getting prequalified, is to show a buyer is ready, able, and serious to purchase a property. It also gives a seller confidence, knowing their sale will most likely succeed. If a buyer is not viable, much precious time can be wasted. Realty Agents need to know a buyer’s spending limits. They can screen out prospective buyers from lookers. Also, savvy sellers may not allow showings without proof of funds.
(2) Serious buyers know what they want and are proactive. They scour the MLS listings and pick their favorites. Often these buyers direct their agent to set up a showing. Many fall in love with their future property on the internet right off.
(3) Serious buyers should not bring children, friends or pets to a showing. Children will distract parents. That’s just what kids do. Particularly when it’s important. Trust me on this. I have grown-up children. Been there, tried that, doesn’t work. Realtors and sellers have every right to request that children are not to attend showings.
Friends of the buyer(s) should not attend showings. Well meaning buddies are a big distraction. Namely, because they influence. Their opinions often sway and undermine the buyer’s own decision making and processing.
A heads up! Generally, pets should not be left in the car unattended on a seller’s property. This is a courtesy to property owners that have their own pets… and who may investigate who else is in the car! Therefore, it’s suggested to leave Fido home.
(4) ALL buyers should attend showings. When a buying partner does not attend a showing, this can be a caveat that one may not be on board. Of course there are exceptions, such as for out of state buyers. Serious buyers make the time to consider available properties > TOGETHER.
(5) Listen to a buyer. And encourage them to talk freely. For you will learn where they are at in the buying process. They may be pre-qualified, but still not mentally ready to commit. Perhaps, the buyers are still evaluating all their options. For instance, what type of home style; where to buy; or school districts to live in. A good agent can help educate and influence, but often cannot get the uncommitted to sign.
A ready buyer often takes the lead. Has done their homework and has pointed questions. Their language turns positive and their tone of voice energetic. Particularly when they visit a property that checks their boxes. They tell their agent or the seller right then, “Let’s make this happen!”
(6) When buyers present low offers and a house is on par with sold comps, this can indicate several things. 1) The buyer cannot afford the listed price. Thus the reason pre-qualified exists. 2) The buyer wants a super deal. This is how flippers operate. It means more profit in their pocket. 3) Many buyers (and agents) think FSBO Sellers should slash their price because they are not paying a commission. But the fact is, FSBO Sellers must execute a closing the exact same as a Realtor. A seller’s time is worth no less. Oddly, this stigma still lives on in many minds. So a note to sellers: If you want your listed price, verbalize it upfront to the buyer and/or their agent. It will save everyone time.
7) Serious buyers are motivated. Is there a job relocation involved? If so, an immediate need to purchase a house may be at the forefront. Life changes are typical times for upgrading or downgrading real estate properties. New marriages with combined families often need a larger home. Empty-nesters typically want to down size.
Lifestyles motivate property purchases. As a forever horse owner I’ve seen one such scenario repeat often. People buy one horse. And board it out. They become captivated by the lifestyle. They buy another horse- or two. Thus more money spent on boarding. These horsey home owners start adding it up; their 3 horses boarded, plus their own mortgage. Purchasing acreage starts to make sense. That is the path of serious equestrians. The point here is: lifestyles not only motivate, but dictate how, when, and where a person purchases property.
In my opinion and experience, a serious buyer offers full price, or close to it, when they see value. They know intrinsically what’s in in for them, emotionally, mentally and otherwise. Serious buyers make the sale happen.
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