As we always say, working with buyers is physical labor, where being a listing agent is mental labor. That being said, there’s a difference between a serious hustle to make the sale as a buyer’s agent and “hard labor” on unqualified and disinterested prospects!
Buyer’s never have the same level of motivation that sellers do, but the big question when you’re working with them is “are they qualified”. In this article, we’re going to give you a rundown on 7 secrets to help you qualify, manage, and convert them better than ever before.
First, ask yourself these questions:
- WHY should you love buyers right now?
- What is your mindset about buyers?
- Where do these thoughts come from?
- Do you have proven buyer scripts, presentations, objection handlers just like
- Do you use Buyer Agency Agreements?
- Do you charge a Buyer Processing Fees?
SEVEN BUYER SECRETS FOR THIS MARKET
1. Learn Everything About Financing
Know all of the rural, FHA, VA loan, down payment assistance, and seller- paid closing cost programs. Buyers can get financed in this market provided you are having them work with a lender who has the programs and skills to get the loan done.
If a buyer is short of down payment, learn how to get the seller to give the buyer a second mortgage.
Buyers say that they are waiting for the prices to fall. Ask why. The answer is, because they are payment sensitive. Show them how to accomplish the payment with different types of loans as opposed to taking a chance that prices will continue to fall.
2. Prequalify 100% of the Time – for Motivation
You must understand the buyer’s motivation and work with people who have reasonable expectations. If they say, “I want a deal.” Ask them to define what that means to them.
- Dig deeper. To understand their motivation, they have to be 100% prequalified. You qualify for motivation and the lenders qualify for financing.
- Don’t work with buyers unless they signed a BA agreement.
- Don’t work with them if they have a home for sale unless you have it listed and it’s priced to sell.
- For buyers looking for NEW homes, put them in contract first. That will help with their motivation.
- Relo buyers, first timers, back in the market buyers, and forced downsizers (and sometimes as bargain hunter investors) are the best buyers for this market.
3. All buyers must be 100% Pre-approved to Work With You
What are the elements of a Pre-Approval? What’s the difference between Pre- approved and Prequalified?
APPROVAL = credit checked, ratios checked, employment checked, down payment checked, and non-contingent on anything.
QUALIFIED = You have to make certain the lender has done the whole process and not taken any shortcuts.
- Lenders must have completed a three-merge credit check.
- Asset verifications.
4. You Must Have at Least Three AAA Active Buyers at All Times
- An active buyer is someone who acts immediately when you call them about a property.
- An active buyer has signed the buyer agency contract, the state agency agreement, and a net sheet that discloses your processing fee.
- An active buyer must be working on or close to have completed their mortgage.
- If the buyers have a house to sell they have to have it listed with you or be preapproved to buy without the sale.
5. You MUST Learn the our Buyer Presentation
In this market, buyers are just as valuable, if not more valuable as listings.
- Learn our Buyer Scripts.
- Learn our Floor Model Script.
Of course you need to learn new scripts. New Market = New Scripts.
6. Have buyer lead-generation scripts in place.
You must be using an 800# system on all listings right now. Some examples:
- The Internet
- Buyer Seminars
- Advertise payments on everything, etc.
- Craig’s list ads (Run ads for in demand type homes, popular neighborhoods etc.)
- Old files, owners who did a short sale three or four years ago CAN buy now.
- Referrals from loan officers
- Strategic open houses
- High cost rental areas
7. Check the Negative Mindset About Buyers at the Door
50% of your transactions should be buyers right now, so stop fighting the buyer’s market with statements like, “I don’t work buyers anymore” or “buyers are liars.” This is inaccurate thinking. Replace these thoughts with: I LOVE BUYERS!