1. Missing out on the perfect place.
Hundreds of new homes hit the market every day, and buyers who are not using all of the house hunting tools available, could let their dream home slip by unnoticed —or worse, someone else might snatch it up before they even know that it’s for sale. One of the toughest lessons for a first-time (and, yes, even a second-time) buyer is that in this market, passive house hunting simply will not cut it. No matter what agents do—and no matter how many e-mails they send showcasing a just listed property that agents would love to show their clients—if the buyer doesn’t make house hunting a top priority, it’s going to be a painful process.
What Agents Can Do: As soon as you secure your newest buyer clients, set up a time to discuss your house hunting strategy. Ask them what their preferred method of contact is when there is a home that just can’t wait to be seen. Setting up such a strategy will let buyers stress less and think more about window treatments than missing their window of opportunity.
2. Choosing the wrong lender.
Few things are more frustrating (for buyers and agents alike!) than finding the perfect property only to find out that the loan isn’t coming through.
What Agents Can Do: It’s best for clients to use the preferred lenders because they’ll get great rates, the VIP treatment, and if there’s a problem they’ll find out on the front end. Remind clients that preferred lenders earn their preferred status only after they’ve consistently delivered loan closings. Provide them with a list of preferred lenders, and provide clients with educational materials to help them get their loan situation in order before they hit on their must-have property.
3. Fixating on price per square foot.
Buyers who search by price per square foot may be prime for some major disappointment.
What Agents Can Do: Be sure to reiterate to clients that if they are using this as part of their search criteria, they might want to think again. Measurements, as agents know, are not guaranteed to be accurate, and improper measurements can place appropriately priced homes outside of a client’s search parameters.
4. Desperation.
When prices are on the rise, buyers get antsy and sellers get greedy. Too often buyers have been outbid on numerous properties and get discouraged. As a result, they are placing ridiculously high offers on properties that just aren’t worth it, just to get into a home this minute.
What Agents Can Do: Tell buyers to avoid the temptation and work with them to build up a backup plan. Suggest neighborhood or areas that may actually have the right home at the right price that the buyer potentially crossed-off the list due to superficial reasons. You don’t have to commit to changing your home search, and you’re not tied into anything. If all else fails, recommend short-term or corporate rentals options, so they’ll have a soft place to land while they wait for their dream home to appear on the market.
5. Foregoing inspections.
In a perfect world, sellers would disclose every single issue to the prospective buyers. Since that’s not the case, inspections are a great idea; yet one that clients skip too often.
What Agents Can Do: Inspections identify red flags and can address the general state of a property. Plus, they can provide leverage when it comes time to negotiate. Discuss these issues in details with your clients, and remind them of how much neglecting inspections may cost them in the long run.
6. Buying a “project.
The unwritten rule of renovating states that it will take more time and money than expected. So it’s important for buyers to know their threshold for renovations before buying a fixer-upper.
What Agents Can Do: Be prepared to share referrals to general contractors and specialty tradesmen. It doesn’t hurt to schedule a showing with one of these pros in tow either. It’s better for clients to know what they’re getting into before they find themselves in over their head. Plus, a happy new homeowner is the source of a great recommendation and referral clients for years to come.
P.S. Spring has sprung and it has been the busiest Spring in years! Now is the time for sellers to be getting their homes ready for the Spring market & for buyers to start looking for their new homes. This will be another great real estate year! Don’t miss out on lower home prices & good interest rates. Contact me for details today!
