Buying a home can often said more glamourous than the actual process. With all the emotions of finding the perfect home, within budget, can easily tip over to become a frustrating journey. However, this does not always have to be the case. Abraham Lincoln’s quote best sums up the strategy needed for the home buying process, he stated “Give me 6 hours to cut down a tree, and I will spend the first 4 sharpening my axe”. Strategy and planning will really be the differentiating factor in how the home buying journey will go. Real estate designations, such as the homebuyer education course, will really emphasize the importance of setting out a strategic plan with your home buyers. On average, it can take anywhere between six weeks to six months for buyers to find their home, depending on the market conditions and circumstances. According to NAR, it takes the typical homebuyer 10 weeks to find their home, visiting on average of 10 different properties. Surprisingly, home buyers who did not use the internet to search for homes only took on average 4 weeks to find their home, visiting an average of 4 homes.
The best time to implement a solid home buying process occurs from your first meeting with your buyer clients. It is more typical to have a listing presentation, rather than a buyer’s presentation, however, perfecting this process with buyers can truly serve as a great advantage, for you both.
The real estate designation, Certified Buyer Specialist offers a free buyers presentation with their free trial, which outlines the process of the buyers presentation. The process begins when you are meeting your potential buyers for the first time, to demonstrate your value and the benefits they receive by working with you as their agent. Let’s begin with the first out of the six step process.
Step 1. Introduction
Starting off your presentation by introducing yourself allows for rapport to build. Adding some personal facts about yourself, such as family, sports, hobbies and more, make you more relatable to your potential clients. Keep in mind, when talking about yourself, try to bring up points you and your client have in common. For example, if your potential clients have a dog, and you do as well, it is something you can mention, which forms a better rapport with your clients. This is a simple NLP (Neuro Linguistic Programming) technique, which can help you better relate to your clients, which would increase the likelihood of gaining a client. Sales professionals use this technique all the time, having customers/clients buy (or work with) from you because they ‘are just like you’ or ‘want to be like you’. These two factors are some of the greatest motivating factors to push clients to move forward with a product or service. Now, keep in mind, you don’t want to overdo it and mirror your client into yourself, however, pointing out a few similarities (if they exist) would help build rapport. With regards to your professional outline, focus on your experience, number of clients you have helped, awards received, and any real estate designations earned. Be brief in this section, and use bullet points where possible.
“Mr. & Mrs. Smith, I have helped over a dozen families, just like yours, find a perfect home that suits their lifestyle. I specialize in working with buyers and have learned to perfect the process, so that you can find your home in less time and help you negotiate the right offer.”
Step 2. Introduce Your Team
If you are a realtor working independently, you can still introduce your professional network as your team members. The team members you can introduce, may include:
- Real Estate Lawyer
- Mortgage Broker
- Home inspector
Even if you don’t have a personal assistant , you can leverage what your brokerage has, which all contribute to looking after the best interest of your client. Your professional network does not have to be included in the process (or price from your commission), however, they serve as a trustworthy professionals, should your buyers need their services. When introducing your team, have their pictures included in the presentation, use their first name, and provide a 30-45 second explanation as to why your team members would benefit your client.
“ Mr. & Mrs. Smith, I wanted to also introduce from my team my Real Estate Lawyer, Jeff. I have worked with Jeff for years, and his main role is to ensure that you assets are legally protected and your best interests are covered. Jeff is always there to help us, should you decide to use his services”
Step 3. Wants vs. Needs of a Home
This is an important step to explain to your buyers, the concept of wants and needs in a home. Simply put, a ‘need’ in a home, is a list of features that are an absolute must for their new home. Examples of ‘needs’ can include the number of bedroom, distance to a particular school or employment or a furnished basement. Items that your buyer may ‘want’ in a home, are features that would be nice to have but are not necessarily a deal breaker. Example of ‘wants’ in a home can include 2 garages or having the laundry on the second floor. This concept needs to be explained to your buyers, with the intentions of finding a house that has all their ‘needs’ in a home, and as many ‘wants’ as possible. This list will really help distinguish which option will be the right choice for your client, given their requirements and budget. You can further expand on this idea by also understanding the lifestyle of your buyers. Understanding if they have any family or friends that they often visit, or special hobbies or clubs they belong to, will really capture the lifestyle they desire. Combining their lifestyle, with their home features they desires, within their budget, is really the ultimate goal. To be able to reach this goal, you must have a good understanding of it first.
This would also be a good time to understand if your buyers have invested time to get pre-approved for a mortgage, and if so, how much. If they have not, then explain to your buyers why it would be very beneficial to them to be able to understand how much they can receive to better the home buying experience.
“Mr. & Mrs. Smith, your dream home is not just about the home itself, but also about the lifestyle you will be buying into. My role is to understand your lifestyle and your wants vs. needs in a home, so we can narrow down your choices to buying a home that you will be happy living in for years to come.”
This concludes the first half of the buying presentation, with some takeaways for you to start practicing with, by building your intro and your team. If you want to practice directly from the buyer’s presentation, you can access it for free, by signing up for a free trial (include with any designation you choose) by registering at designationhub.com. If you have your own presentation, time yourself to see if you’re able to capture your value points within 30 seconds. In the second part, we’re going to cover explaining the buying process, commission and signing the client contract. You can find part 2 of this blog on designationhub.com as well, under the blog section.