When looking to sell in a hot real estate market, it’s important to know how to judge potential buyers. Properties often fly off the market easily, but there are also some who are still just shopping around, and these will waste time. The job will always be more challenging, and it might be necessary to go through dozens of potential buyers and receive multiple offers before finding the right client. Pawel Kentaro Grendys, an expert in Latin American real estate, offers insight into how to read customers to know if they’re serious.
Time is money. Before logging hours talking to a lot of customers, make sure they are truly motivated to navigate the challenges of a booming seller’s market. This includes from competing with other buyers to committing to seller-friendly contracts.
There are some good indications that the customers are actually ready to buy. They will hardly ever say, “I want to see what’s out there.” Explains Grendys, “If customers are only interested in browsing, they may not be interested in making a purchase right now. Even if they find a property they like, it will be taken off the market before they can buy it. Explaining to the crew what happened in the booming housing market. And encourage them to do things, like get money, before they start their research.”
If they take your conversation seriously and understand the reality of the rising real estate market, you’re in good company. Motivated buyers know exactly where they want to live and are in tune with market realities. As a result, they spend a lot of time researching properties online, rather than waiting for someone to contact them. They always organize conversations because they have a sense of urgency and don’t want to give up a lot of resources.
The first confirmation shows that the buyer is at least going in the right direction. However, it only depends on the information the buyer provides to the lender. It does not include a review of the buyer’s credit report or an in-depth analysis of the buyer’s ability to pay the mortgage. So it’s not obvious.
On the other hand, the pre-approval letter is the actual commitment in writing from the lender for the loan. Grendys explains, “The buyer does a credit check, fills out a loan application, and gives the lender the paperwork. Pre-approval gives buyers a big advantage, especially in the real estate market.”
If the customer has a deposit in hand, that’s a good sign. Repayments based on the sale of another home can discourage sellers from accepting offers. Really motivated home buyers must pay the bank.
Motivated buyers keep their expectations in check. In a booming real estate market, buyers realize they can’t find a property that meets all their wants within their price range. They are willing to compromise, narrow down their list of must-haves, and increase their price range when necessary.
Just because potential clients don’t meet the above criteria, doesn’t mean they’re not viable. A good salesman can convert a hesitant consumer into a buyer, sometimes with just a little push. However, it’s important to glean as much information out of the individual as possible before starting down that path. If time is available, it might be worth coaching them through the process and preparing them to move forward with making a purchase.