Are you finding it tough to decide whether or not it is the right time to opt for selling new houses? But keep in mind that thriving as a real estate agent is not an easy task because your leads need to do some serious thinking before taking such a big leap. Buying a home is one of the major decisions one takes in their life. It takes months of planning and research to arrive at one. Due to the fast-paced lifestyle, most people are used to the comforts associated with living in the current house. Thus, it is difficult for you as a sale estate agent to know what the right time to make the move is. But if your leads fit into one of these categories they might be ready to buy a new house:
1. Just reached a major milestone in life
Potential homebuyers are usually the ones who got married or engaged recently. Or there might be an impending rise in family members due to a new child arriving. Another possible reason for being interested in buying a new house is when people land a new job or receive a long-due promotion but have to move to another area. It might be that they want to sell their old house fast and buy a newer one. In case your leads have hit any one of these milestones in their lives, they are probably ready to buy a new house. All these long-time commitments are clear indicators that this is the right time to acquire a permanent place to complement one’s lifestyle. Although it may be wiser to rent a place in the beginning or see if you can live abroad, homeownership is always on the cards. This is a perfect time to start researching and getting educated for the big step of their life. This is where you as a real estate agent come into play.
2. Seeking professional help
After the home buyers are ready to rent or buy a house, they must start looking for a good agent to help them in the process. As agents, we have an eye for details and good negotiation skills that can help you achieve what you are looking for. We are also familiar with the paperwork requirements, which can save you trouble in the future. However, for an agent to take you seriously, you need to show that you are a potential lead who is highly likely to bring in a commission check soon.
Besides working with an agent, you might need to bring in other professionals in the process. For instance, you might bring in a builder to check whether the house is built as per the standards and is fit for living. You might also need a general contractor if you are thinking of an extension or doing some changes to the house. You can find them on different online websites. If you have trouble accessing any of these websites, you can simply use residential proxies to overcome such an issue. The moment you start asking for recommendations on the best general contractors, builders, interior designers, and such, it is a good sign that you like the property. It is highly unlikely that you would let such experts waste their precious time on a house that you have no interest in at all.
3. Working with a single agent
Usually, you as a real estate agent don’t require the client to pay upfront to help you with purchasing a property. This gives the client the freedom to engage several agents without worrying about the budget. However, what it tells you is that these leads are not yet serious about making a purchase. They are still at the stage where you are vetting for the best agent to put your trust in. While it is good for the lead to do due diligence on the agents beforehand, having several agents work for them can sometimes be confusing and outright unfair to these agents who are all expecting to land the deal. Rather than engaging several of them at the same time, the lead needs to up their portfolios in advance and make a judgment based on their previous performance. They can also ask around for recommendations and settle for the one that impresses them the most. You may explain this situation to them.
4. This lead is a nifty saver and has a good credit
It is always a good idea to have a solid saving plan that can be a cornerstone of long-term economic stability. You may find the lead to be making a regular contribution to some retirement fund or have emergency funding and saving a little bit of cash for the big buy, in a special account. If your lead is doing this, he is on the way to being ready for homeownership. As far as his existing house goes, they might be thinking about selling their house before using the money to buy a new one. Generally speaking, you will need around 20% of the overall cost of the house as a down payment. You are going to need a mortgage for the purchase in all probability and the lenders will look out for the lead’s credit score. This helps them decide the amount of risk they are taking by extending a loan to the lead. You can get inexpensive copies of his credit report on the internet.
5. Your lead has weighed the pros and cons of homeownership
The biggest advantage of homeownership over rental spaces is that your lead is building equity. This equity is only going to grow over a period and as the home value goes up it will also grow. Although this equity gives your lead certain financial stability together with a bit of peace of mind, it also helps him with possible unexpected big expenses such as college funding. They are also used for funding your retirement in some cases.
6. Your lead performed the research
Buying a home is likely to be the largest purchase of your life; therefore, performing research for the right property is crucial. But understanding the buying process can help them feel more informed and in control. There are free seminars hosted by realtors, lenders, and community institutions to help prospects in the buying process. They can attend one of them if they hear about them.
7. They are looking for the responsibility and pride of owning a house
Renting in many ways is simpler than owning a house. If there is a leakage you can call the landlord to fix the issue. But the homeowner is responsible for all the repair work, big or small. There is a great flip side to this. You can easily make alterations or improvements whenever you choose. If you were eyeing to have a set of shelves from the local home improvement store but were not sure as you lived in a rental space, you can install it in your own house. Owning a house will allow your leads to express themself freely and decorate as they wish.
8. You are preapproved
Knowing your budget is very important for a prospect before starting looking for a house. It gives him a clear picture of the houses you can show to them. But before we get to the viewing stage, you as an agent must be satisfied that this lead has the financial ability to meet that budget. If he is planning to take a mortgage, the only way you will know how much you qualify for is by being pre-approved by a lender. When you get to see the pre-approval letter, it is not only proof that your lead has the funds but also a good indication that they are serious about purchasing a house. Also, you have your work as an agent cut down for you to start showing them houses that are within their price range. As soon as they decide to buy a house, start working on their credit, and ask them to talk to a lender before they bring you in as an agent.
9. You have a reasonable timeline
Have you ever heard that work moves to occupy the time allocated for its completion? Well, if you have a year to look for a new house, you most likely will drag the process and only get serious a few months before the deadline. Likewise, if you only have a few months to find a house, you will expedite the process and complete it within that timeline. Most agents are likely to get tired of showing houses to the leads if their timeline seems to prolong to unreasonable lengths. We work on commissions; if I see that that check is nowhere on the horizon, chances are that I will start chasing more serious people.
If the lead needs an agent to put in more effort to help you find your ideal house, you must set a reasonable timeline. If the lead has a year to buy, he can start looking at houses on his own and only bring in an agent a few months before.
10. You know what you want
Buying a house is a long process that requires the prospect to be sure of what his ideal home will be like. You will know that he will be ready to buy a house if you know what he wants at the top of your mind. If you as an agent are aware of the specific requirements that the lead is looking for when he comes in, you can be confident that he is ready to commit.
Before hiring you, ask them to come up with a list of non-negotiable things in their new house. Think of the neighborhood, amenities, number of bedrooms and baths, the type of flooring, and property type among other features. This helps us to narrow down the properties to get to what they are looking for much easier and faster.
If one of these factors applies to the lead, you may be sure that he is in all probability ready to buy a new house. You can find a wide range of properties on the internet from the area of his choice that will fit his budget and other requirements. You can arrange tours in many cases as well. So, go for it. A good prospect can play his part by showing you that they are ready. They have decided what they are looking for, will set a reasonable timeline, and get pre-approval in advance.
Writer : Rian Harrolton