You’ve undoubtedly dealt with unrealistic home buyers as a real estate agent. Maybe they want to get the best possible mortgage rate only to end up losing their dream home because they waited too long to lock in a rate. Maybe they figure a lowball offer is the way to go, even if it means having their offer rejected. Whatever the reason, having scripts in place to handle unrealistic home buyers is a must. Let’s look at how to handle 3 common buyer issues.
The majority of buyers will require financing and, once they learn that, you can explain how getting pre-qualified will get them into a home quicker because there will be no guessing how much they can afford. Buyers need to understand that there is a big difference between what they think they can spend on a house and what the bank feels they can spend.
Buyer: I know how much I want to spend on a house, I don’t need to get pre-qualified.
Agent: Will you be paying cash for the house or will you require financing?
Buyer: I will need financing.
Agent: Let’s set up a time with my lender to see if the amount you want to spend on a home closely matches the lender’s amount, then we’ll get out there and look at some homes. Knowing that your numbers align with a lender’s will help you avoid problems when trying to purchase a home.
When a buyer wants to submit an entirely unrealistic lowball offer, help them see it from the seller’s perspective. Once the buyer takes into consideration the way the seller would feel receiving such a poor offer, they may feel confident offering more.
Buyer: I want to submit an $800,000 offer on the $1.3 million home on Highwood Blvd. Let’s see if the seller takes the offer.
Agent: I can understand wanting to get a good deal on this home but consider how the seller would feel receiving your offer. How would you react if you were the seller?
Buyer: I wouldn’t accept it unless it was close to the list price.
Agent: That’s how most sellers feel. If they don’t reject the offer, they might counter with the full asking price. Since you really want the house, how about coming up with a price that they might consider accepting vs. one they would most likely counter or reject?
Buyer: I see what you mean. I wouldn’t want them to completely reject my offer. I’ll offer more.
Agent: Ok, let’s create an offer that we think they’ll take. You’ll feel good about getting a fair price and there will be less of a chance of your offer getting rejected.
Your buyer is interested in a home but afraid to buy at the current interest rate because there’s a chance it could drop.
Buyer: I want to buy this home but want to get the best possible rate. I think I’ll hold off making an offer.
Agent: I understand. Most buyers want the lowest possible rate. Let’s look at the history of interest rates and how that applies to this home. As you can see the rates vary and have been low for quite some time. Do you want to wait for the possibility of a better interest and possibly lose the opportunity to buy this house?
Buyer: I really want this house.
Agent: Consider this: you’ll be buying at a low rate and can refinance in the future if the rates drop. That way, you get the house you’ve been wanting and the opportunity to get an even lower mortgage rate in the future. How does that sound?
Buyer: Let’s do it!
As a real estate agent, you’ll run across unrealistic home buyers and need scripts in place to handle them. Whether they hesitate to get prequalified, want to submit a lowball offer, or are afraid of missing out on a future mortgage rate, you’ll be able to handle their uncertainty with scripts similar to those provided in this article. Take time to reword the scripts and make them your own, and soon you’ll be turning those unrealistic buyers into realistic buyers who are proud to have you in their corner.
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