Home Buyers Archives - Wade Webb Real Estate Coaching

How To Qualify & Prepare A Buyer In 2021

Wade Webb on June 9, 2021

A mentor of mine always said that it was better to know to lose a buyer on Tuesday instead of them not buying and dragging you around and not buying on Saturday. In the buyer charged market the ability to qualify, educate and empower a buyer is a critical skill for the buyer agent and their buyers success. This week we want to look at the new and improved buyer qualifying process that will help you win and your buyer win in this crazy buyer market. Let’s assume we have converted our buyer to a meeting on zoom and here are the steps we can take next with our session.

Step 1 – The FORD technique– ask them about their Family, Occupation, Recreation and Dreams in order for you to build their trust, likability, connection and for you both to discover commonalities.

Step 2 – The Safe Island ( always let them know up front what will be talking about and what will happen before it happens to really make them relax.

Step 3 – Educate them on the market by showing them stats, graphs and of sales activity for buyers already purchased in their property search criteria so they are prepared and see others paying well over the asking prices and not just them.

Step 4 – Review the appropriate agency forms like DORTS, PRIVACY, FINTRAC, and provide them with a blank contract of purchase and sale to review on their own time in advance of making an offer.

Step 5 – Ask them pre planned open ended questions – Who, what, where, when, why, how (cash or credit) ? Then….Who? If they say credit.

Step 6 – Having our financial house in order to compete. Meaning we have a lender that is providing us with a physical approval letter. Willing to take a reference phone call on our behalf from seller or seller’s agent during presentation of offers. Give us the ability to make a cash offer. I then ask their permission to call my financial person and set appointment with them to ensure this all happens for them.

Step 7 – Conditional or Subject Free Offer conversation with the buyers and risk and reward for each situation.

Step 8 – Deposits discussion whether the deposit goes with the offer right up front and send a photo of the deposit to give you some leverage with your offers.

Step 9 – The appraisal dilemma and if the appraisal comes up lower than the purchase price and what would we do then.

Step 10 – Bully showing strategies on properties with tenants or sellers making it difficult to get in to viewing the property.

Step 11 – Bully or Pre-Emptive offer strategy and try to avoid the multiple offer situation and we keep re submitting offers until we get response from the seller and their agent or our budget runs out.

Step 12 – The Multiple Strategies you will be using to compete in the multiple offer situation and what are you willing to do to compete against the other bids.

Step 13 – Paying for the property inspection to be done during viewing appointment to avoid the contingency of a home inspection condition in the offer.

Step 14 – The Escalation, Preferential offer clause ( contractually not enforceable ) Starting purchase price included and add following term….“The purchase price is $10,000 above the price offered in the nearest competing bona fide offer acceptable to the seller. Upon acceptance of this offer, the seller will provide a copy of page 1 of the competing offer with the names struck out or removed for privacy purposes.” Contact listing agent and advise them of the term and ask them just to stroke out the above term and counter at the appropriate purchase price and give you and your buyer 5 minutes to respond to their counter offer price. We accept or decline and the seller returns quickly to the next highest offer.

Step 15 – You create and find versus sit and wait for a listing plan in place to find off market properties for the buyers.

Step 16 – Closing questions – Maybe this isn’t the right market for us? Maybe now is not the right time for you? How do we play the game? What would you be willing to do to buy in this market and compete?

Step 17 – You the agent sign off on your bully offer, multiple offer, finding off market property plan and escalation clause strategy and then ask them to sign off in return a buyers agreement.

So there you have it a step by step informative, strategic process to identify your quality of buyer and know what your chances of competing in this market will be for them and you. Then you make a decision whether to move forward or to wait until the market winds change. Feel free to share any steps or strategies that you may want to add to the process with myself and the rest of our readers!

Strength and courage,
Wade

Outside The Box Ideas For Getting Real Estate Buyers Offers Accepted

Wade Webb on May 26, 2021

Almost everyone is experiencing hyper real estate buyer, low inventory market conditions and are struggling to get their offers accepted for their buyers. Am I right?. You continue to write offers and don’t get them accepted or even counter offered and your buyers are getting so frustrated and you the agent is getting so frustrated too. So this week we want to share with you a few different strategies that you may or may not of thought of to help get your offer accepted over the competing agents offering against you and help you compete a little better in the market place. So here we go…..

Humor – I love and believe so much in this statement “If you can make them laugh then you can make them buy.” So why not use some humor in your offer strategy to engage, capture the listing agent and their sellers to want to choose you and your clients to own their home. Make a comment about your offer being the first offer and your second offer being you buying them all hot wings and beer on you at Wings after they accept your bid as the winning bid and say “just kidding.” Show your personality during the process and stand our and pull them in by using something funny. Even try posting something funny in the subject line like “Wade’s favorite, special, double deluxe offer on 1234 Maple Street.” And make sure that it is at least a good offer and stand out from the rest with a funny email subject line. Remember visibility can trump ability every time!
Don’t Just Offer The Higher Price – Don’t just offer the highest price and only rely on your price to win the bid but add something else. Add things like covering their legal costs, their moving costs up to $1,500. Communicate some creative incentives for the sellers in your bids to help you stand out from the rest of the bids in the cue. Dare to be different!!
Detailed Summary Page or Video Included – Think about how many offers and how many pages of information that the sellers and listings agents have to review? Take the time to write out a simple, detailed point by point summary of your offer details saving them both time and energy to help you stand out form the rest of the bids as well. Most agents don’t have a separate written summary or summary video accompany their offer to save the seller and listing agent time and stress. You hope they really appreciate the fact you did this and give you a chance to be that winning bid today. Service above and beyond the rest of the bidders indeed!
Buyer Pay My Selling Commissions – Why does every offer has to be the seller paying both agents the commissions? What about being creative and present a bid that is not payable of the buyer agent fees as I am collecting my fee from my seller to allow you to net more to you the seller. We have drawn up the buyer agreement separate from our offer to pay me the buyer agent and hope this will put us in a better position for our offer to be accepted today. A simple and creative way for our bid to stand out from the other normal bids that agents present.
Don’t Underestimate Relationships – Nothing more powerful than having the right relationships in your market place. Don’t be that agent! You know who they are in your area. Be known as the agent that everyone wants to do a deal with rather than the agent in the area that every agent can’t stand doing business with you because of your ego, reputation and how you treat fellow agents like crap. Many sellers will look at their agent for direction for what agent and what bid and buyer do they like, trust and think will be best to do the sale with? Don’t forget that what goes around always comes around and we take care of our own in this industry. Relationships and reputation always trump all and agents never forget!

There you have just a few creative, outside the box strategies for presenting offers in this current market. Feel free to email me or comment and share some of the best little nuggets you have found give you an edge in the marketplace and helped you win for your buyer the accepted offer. Would love to hear from you!

Strength and courage,
Wade

Home Buyer & Sellers Trends 2017

kelowna on March 22, 2017

I am so grateful and amazed by the incredible resource N.A.R. is for our real estate profession and providing incredible data for more than 35 years that helps REALTORS© track, measure and predict our business better every year. Again we take time to look at the trends and profiles of today’s real estate consumer and reflect on how we can better serve, attract and engage our customers in 2017.

So let’s have a look at what the data is saying!!

Home Buyers

35% First time buyers in N. America
44 Years of age
Average income annually $88,500
66% Married couples
11% Bought multi-generational homes with parents
31% Desired to own their own home

Home Purchased

14% Bought new 86% Bought used homes
83% Detached single family purchased
20% Senior related housing purchased
12 Mile average between last home and new home purchased
Average price $227,700 and paid 98% of asking price
1,900 Square foot, 3 bed, 2 bath built in 1991
Expect to stay 12 years in their home

Home Purchase Process

44% Began looking online, 17% Began calling an agent
Looked 10 weeks and 10 homes
85% Property photos most important to them
60% Had a satisfactory experience

Home Purchase Agent

88% Used an agent to buy
42% Agent referred by friend
88% Would use their agent again

Financing Purchase

88% Financed their purchase
90% typical loan to value ratio
61% Down payment from savings
46% saved down payment in 6 months or less
82% Purchased because it is a good investment

Home Sellers

54 Years of age
Median household income $100,700 annually
18% Home to small, 15% closer to family, 14% work reasons
Lived in home 10 years on average
99% sold with an agent
Sold 98% of their asking price
4 weeks on the market
36% offered incentives to buyers
Sold for $43,100 more than they paid on average
61% were happy with sales process

How Sellers & Agents

64% found their agent through a referral
62% only contacted one agent when selling
92% listed on MLS
77% paid the agent’s fees
Typical seller recommend their agent twice since selling
88% would use agent again, 77% probably, 15% would not

Private By Owner

85 sold by owner
59 years of age
Average FSBO sale price $185,000
Average agents assisted sale price $245,000!!
66% sold in less than 2 weeks
71% sold to someone they knew

So there we have it the road map of who we are looking for and what they are doing. Take the time to develop a strategic strategy with your business and stop aiming for nothing and hitting it with amazing accuracy. Instead be strategic and intentional with your marketing approach this year using this incredible resource and watch your business go to another level.

Strength and courage,
Wade

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