Have you ever wondered what type of home buyer are you?
There are those who:
- "I want it NOW" type home buyer
They are typically eager to jump in the car, without much thought as to what homeownership entails. All they know is that they are "wasting" money on RENT.
Typically, this home buyer profile type jumps into decision-making pretty quickly. But just as quickly as they make a decision to buy, sometimes they can make the decision to not proceed just as quickly. - The ANALYSIS PARALYSIS type home buyer
This group of home buyers like information. They typically try to consider ALL CONSEQUENCES to their actions - considering one aspect of home buying to homeownership, to financing. Many times, they may start "imagining" worst case scenarios and how to prevent them. At times, these "worst-case" scenarios may or may not happen at all.
Typically, this home buyer profile takes a very long time to come to a decision - whether to buy or not. But when they do proceed, they have thought through the whole process.
Then there are all types of Home Buyers between the 1st and 2nd group.
One specific Home Buyer group I want to highlight today is:
The Home Buyer that makes an OFFER but doesn't need to look at market SOLD COMPS to see how much the rest of the homes in the neighborhood have been selling. (I dont know what name to give, but this group does exist).
This group is SERIOUS BUYERS. They understand the contract they sign is LEGAL AND BINDING. But how they come up with the INITIAL OFFER can be "hilarious" to say the least.
"Let's just go with xxxx as the Initial Offer".
All 3:16 team REALTY clients undergo more EDUCATION at that point. We want to write winning offers for our clients. After all, they like it enough to want to make the property their home. It is our job to make our clients as informed and as educated in the home buying process.
(1) We pull SOLD COMPS from the past 6 months of sales data in the neighborhood. We find a handful of homes that sold, most similar to the property the Buyer wants to purchase.
"Most Similar" means similar square footage (within 10% range), similar finish-out with similar features and/or upgrades.
(2) Compare these SOLD properties to the subject property (the property the home buyer wants to buy). Place them side-by-side, provide debit and credits for the features and/or upgrades, acknowledge square footage difference & seller concessions.
It is difficult to pinpoint specifically for the EXACT DOLLAR for the Fair Market Value of the house. Hence, with the method above, the home buyer usually have a "price range" of which the house should sell for.
(3) Also, we take a quick evaluation as in the AVAILABLE HOMES in the NEIGHBORHOOD to see what it has listed for.
Negotiations and initial offer can be presented from this point forward.
Certainly not by picking a number from the sky or it "sounds" like a good starting offer.
If you are on First Time Home Buyer in Frisco TX, please read the First Time Home Buyer Resource.
3:16 team REALTY serves home buyers in Frisco TX and surrounding areas. Call Loreena Yeo (214) 783-2210 for a home buyer consultation and take advantage of this great home buying season in 2012.
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Content & Photography Copyright © 2012 by Loreena Yeo (3:16 team REALTY)
Original Post found at: What Type of Frisco TX Home Buyer Are You?
Hi Loreena,
Good post and hopefully lots of buyers see it, read it and give you a call. Best of success to you this year!
Hello Loreena, thank you for sharing this wonderful blog.
Happy Chinese New Year to you and your family.
Great points, it is absolutely to present offers based on recent comparables.
I certainly have a buyer who fits the over analytical .. look at every detail and find a reason not to like a home clients right now. Can you guess the profession .. bingo - TI engineer. Love them but the patience for them to make decisions is a must!
Hi Loreena! A lot of times I find those buyers who come up with crazy offers are willing to pay too much for a home they have just fallen in love with. Many times, after looking at comps, we find that a fair price for the house is much less than they were willing to offer. Of course, sometimes it's just the opposite. It pays to listen to your Realtor!
Loreena, as a Realtor we need to help our buyers and we can use all the tools like comps we have under our belt to work with them. Some get it ...and some don't get it.
The I want it now buyer Loreena needs that qualification step bad.
I love the "I want it now" buyers. :)
Kong Hey Fatt Choy may all your buyers listen to your wisdom and follow your lead. Best to you Mike and the family in this new year of the Dragon.
Great article, Loreena! I hope buyers can take a look in the mirror and see what kind of buyer they are. I've got a lot of "analysis paralysis" buyers who take forever to decide and can't seem to focus. Some are getting better but only because lack of inventory is forcing them to decide.
Sounds like you are very thorough in explaining market value to your buyers. More agents need to take the time to educate their buyers in this way. Great information for buyers!
Another great entry from you Loreena. Great job.. it's nice that you have blogged something like this. We deal with different kinds of people everyday. So the moment we come accross those types you've mentioned.. we can relate right away, pause.. 7 tell ourselves.. oh yeah, that's what Loreena was talking about it. For the record, I enjoy and love those "I want it now buyers. " They're easy to deal with and very much eager to learn when you explain things to them.
Some buyers are still out of the loop on home sales. They are still looking for that 'STEAL' in the market. They are the ones that really need a great agent that is not afraid to tell them about the actual market numbers.
Key words are recent and sold...you can want any price ...and will get what the market commands...smart buyers know the statistics that are valuable to them.