At any point this year, have you worried about how to articulate the value you bring when representing a homebuyer in a real estate transaction? You know what you do, but how do you explain it so a buyer understands your value? Do you detail the required agency forms, the potential pitfalls, and everything involved to make it to the closing table?
Ultimately, every homebuyer prospect, every contract and every negotiation is unique, but the value you provide should be consistent for all situations and clients. How you conduct and present yourself to each buyer prospect should not vary by situation or transaction.
Follow these best practices consistently — for all prospects, in all situations — and you’ll have nothing to worry about. In fact, you’ll become known as a true professional and receive repeat and referral business as a result of doing the best job possible for your clients. Here are our ten best practices for working with every buyer client.
1. Understand their unique needs
Drill down by using a detailed buyer prequalification questionnaire. You’ll discover exactly what your buyers are looking for, what they qualify for, where they need to move geographically, and what their other financial or lifestyle requirements might be. You may also learn other important criteria by asking the right questions. The more you know, the better prepared you’ll be to find your buyer clients exactly what they’re looking for.
2. Educate your buyer clients about financing
While many homebuyers can benefit from a 30-year, fixed-rate conventional mortgage, other borrowers might need access to other loan programs with more lenient guidelines.
Know the basics about each major home loan program and financing terms and options. Then, connect them with a trusted mortgage professional who can help them find the best mortgage solution for their specific needs.
Make sure your buyers understand the difference between being pre-qualified, pre-approved and loan-committed. In today’s market, having a pre-approval (at the minimum) is a must. What steps must they take to achieve loan commitment?
3. Strategize for the win (in any situation)
Explore all the potential scenarios and outcomes of a given transaction so you can serve buyers accordingly. Here are some key questions you should learn the answers to:
- Are your buyer clients also listing clients?
- Are they relocating or investing? Are they moving from another city or state?
- Are they in a financial situation where they can compete for a home if necessary?
- Should they buy first or sell first?
- Do they have realistic expectations?
- Are they looking in an area that actually has the type of property they want?
- Should they consider new construction?
Knowing the answers to these questions for every buyer client will help inform the strategies you recommend and will go a long way toward helping your buyer clients achieve their homeownership goals.
4. Find your buyer the right home
Inventory is scarce, and will likely stay that way for a while. One of your most important value propositions is your ability to match them with the right property. To do that, you need to use more than just Realtor.com, Homes.com and Zillow. Online and offline resources are at your fingertips as a real estate professional, giving you more ways to find inventory outside of your MLS. You can also be more creative in your MLS searches in ways that net you more inventory to choose from for your buyer clients.
5. Advise your buyer clients based on market knowledge
Find out everything you can about the subject property, the neighborhood, the homeowners association and fees, the market trends in the area, property taxes, the average days on the market, the list-to-sell price ratio, and other pertinent details that could affect your client’s offer. Knowledge is power, and having this data at your fingertips will help you level-set your client’s expectations for the homebuying process.
6. Help buyers write a winning offer
Understand what the seller wants beyond the asking price. Have the best, most detailed lender’s letter or proof of funds so your offer won’t be tabled because it’s too vague or boilerplate. Make your offer the obvious front-runner based on facts, not just conjecture, and help your buyer put their best foot forward in the terms they’re offering.
7. Guide your buyer through escrow
Once you’ve won the offer, help your clients through the contingencies, inspections, appraisal process, and final walk-through. Home inspections have become a secondary point of negotiation. This can be a key value you provide to your buyer clients. Managing the transaction between pending and closing can be the most challenging part of the home purchase process. Be the reason your clients make it to the closing table.
8. Communicate clearly & often
Every time a survey is distributed to recently closed real estate clients, their #1 complaint is always the same. It’s not the commission; it’s communication. Always be one step ahead of your clients. They need to know what’s happening now and what’s happening next. Lack of information creates enormous stress, especially in one of the most significant purchases your clients will likely make in their lifetime. Be the leader in the transaction.
9. Ensure a smooth closing process
Work with all parties to get final removal of any financing and inspection contingencies and help your buyers navigate the pre-closing walk-through. Finally, help them review the closing documents. Answer their questions and make sure everyone is comfortable prior to signing.
10. Follow up after closing
From a closing gift to handling any questions about appliances or their new home, you’re the go-to resource. Don’t disappear after the deal is done. Instead, close the file but not the relationship. Fold them into your CRM database and include them in your sphere of influence. This is how repeat and referral business happens.
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All of these action items are strategies that professional, experienced real estate agents practice already. Make sure you join their ranks by following these best practices each time you work with a buyer. Word-of-mouth and client testimonials are powerful marketing tools that will help you get referrals.
