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

Winter Is Always The Best Time To Buy and Sell a Home

Wade Webb on December 2, 2020

Knowing what the biggest objection you face over the next few months allows you the edge to be prepared when it strikes. We all know the #1 objection all agents are going to get from real estate buyers and sellers is “We want to wait until the spring to buy or sell our home.” So having the ability to change how the buyer and seller feels about waiting to buy or sell until the spring is imperative to your winter real estate success!! Don’t try changing their minds and building their defense mechanism up but educate them and change how they think and then they change how they feel about buying over the winter instead of spring. The fact of the matter is, the reasons and myths are endless so it’s our job as REALTORS® to be equipped with facts and a strong reality check to combat these reasons we hear every day. To help you educate the consumers through the winter season I put together some of my top reasons a client would want to choose this time of year to buy, sell and list a home.

Here Are The Top Reasons to Sell Real Estate Over The Winter

#1 – Only The Serious Buyers Are Looking Over The Winter – Yes there are fewer buyers, but those buyers are usually very SERIOUS about making a purchase or many HAVE to make a purchase. Who else would want to look at buying during the winter?

#2 – Fewer Winter Listings Means Less Listing Competition – Most sellers wait until the spring or summer to list, so your home will have far less competition. Spring = Greater supply = Same Demand = Less Money

#3 – January Is The Biggest Corporate Transfer Month – More corporate relocation moves happen during January than any other time of the year. Catch the corporate relocation buyers while you can.

#4 – Better Personal Prompt Customer Service – By putting the home on the market during the winter you experience better, personal and faster customer service from movers, lawyers, banks, insurance providers etc. Listing realtors have more time to better serve their sellers and get all the marketing strategies in place.

#5 – More Bargaining Time to Get More Money – By starting to market your home early, you may be able to secure a higher price with more listing exposure time. This season allows a seller to not be in a rush to sell and allow for more market exposure time and ultimately generate a higher price than in the spring.

#6 – Timing Is Everything. So Sell Now & Buy In The Spring – If your home sells quickly, you will be able to shop for your next home during the winter, a great time to find a bargain! More time to look and not pressure to shop and beat the other buyers. Sell first and then buy in the spring when the inventory and selection begins to rise for you when you are the buyer.

#7 – Standing Out In A Smaller Crowd – Most REALTORS® and offices have less inventory during the winter, enabling your home to stand out even more. Less marketing noise out there for the buyers and they see your home with ease now.

#8 – 20% Of Sales Still Happen During the Winter – Buyers and Sellers are usually quite motivated to get the transaction completed. We still have 20% of the business in the year occurring during the winter. This can mean less price haggling and fewer hassles during the process.

#9 – Buying Without Having Something To Sell First – By selling now you may have an opportunity to be a non-contingent buyer during the spring, when more houses are on the market! Less “subject to the sale” offers from buyers and you are not one of them when you are buying your next home.

#10 – No Yard Work When It’s Freshly Covered In Snow – Great time for a home that needs a yard make over to sell. No need to worry about your yard work. Snow makes it look fresh and white.

BONUS…..

#11 – Buyers Time Everything Too – Buyers begin the search and purchase for spring moves in January, February. Busy move times are March Spring Break, April Easter, May long weekend and July long weekends

#12 – No Pricing Wars With Others Sellers – Less choice for buyers means less sellers to play pricing against each other. Buyers will often make more concession in their buying decision with less choice

#13 – A Holiday Magic Feel To Your Home – Property shows well, almost staged with holiday décor adding to the ambiance. Tis the season for your home to shine!

#14 – Higher Quality No Looky Loo Showings. Little chance of quick showings and not being prepared to show your home. Easier time of year to make appointments and give sellers advance notice. Higher quality showings

#15 – Right Buyer, Right Time Odds – The odds are the same for the right buyer looking at your home regardless of the season. Right buyer, right time, right home

Here Are My Top 10 Reasons to Buy Over The Winter

#1 – Fewer Or No Multiple Offers – Little or no chance of multiple or competing offers for the buyer during this time of year

#2 – Better Personal Prompt Customer Service – Better service from all service providers like the agents, banks, insurers etc. Not as busy now.

#3 – Sellers Are Motivated – Sellers motivated at this time of year if still trying to sell from summer or fall. Sellers willing to negotiate, been on the market for some time now. Give and take.

#4 – Expired Listing Inventory – Buyers can shop the expired listings market, which has the largest selection this time of the year.

#5 – Better Closing Options – Good time of year to make an offer and do the due diligence, buyers can move quickly now or slower in the spring if not in a rush.

#6 – More Alternative Housing Options – Easier for sellers to find alternative housing, not as much pressure finding a rental vs. the really busy spring and summer season.

#7 – Contingencies and Subject to the Sale Of Acceptable – Great time for buyers to make contingent “Subject to the Sale” offers and get them accepted and movement on the price.

#8 – Better Available Moving & Service Providers – Easier time for a buyer to move and find help and services like movers, cleaners, storage.

#9 – Smoother Mistake Free Completions – Better timing for buyers on completions with lawyers, banks land registry. Not that busy and time to attend to you now.

#10 – Buyer Competition Lower – Less competition for the same property from other buyers on the deals that pop up this time of year.

Bonus…

#11 – Having More Time – Having time to make a decision and not be pressured in to offers or pressured into removing conditions or speeding up your due diligence time.

Now that you’re equipped with ammo to overcome any objection, educate the consumers and debunk the myths and go out there and list and sell some real estate this winter season!!

Strength and courage,
Wade

The Truths About Real Estate Buyers & Buyers Agents

kelowna on March 1, 2017

We have all heard or said the comment “Buyers are liars” and personally that is the furthest thing from the truth if we really took the time to understand them better and how they really want to be served. Let’s look first at the common buyer agent and their issues buyers say about them.

1) They don’t listen

2) They don’t understand our needs & wants

3) They have no process, they wing It and they are reactive

4) They wait vs. create a buying opportunity

5) They get us to buy what they think we should buy

6) They can’t communicate their value proposition

This week we are sharing the 10 easy and effective steps to better serve your buyer in today’s market. Taking the time to follow this step by step process will allow you to convert more buyers than you have in the past…….

10 Step Buyer Process To Get The Commitment Every Time!!!

STEP 1) The Initial Meet & Greet

Option 1 – Meet Buyer At A Listing

Option 2 – Meet Buyer At The Office (TIP – Prepare and coach receptionist to greet buyer as follows: “You must be [Customer’s Name]. We’re really glad you are here. [Agent’s Name] is looking forward to meeting with you.”

The Critical First Two Minutes – Connection & Control. Your goal is to get the buyer to like and trust you and not to rush this process. Here are simple tips on “How To Connect”

– Step 1: “How are you today?” Then listen and engage with their response.

– Step 2: “Thank you” or “welcome” or “compliment”

– Step 3: Introduce yourself

– Ask rapport building (F.O.R.D.) questions

– “How much time do we have together today?”

Once you feel you are connected (nod and see if they nod back) take control of the process. “If it is alright with you, what I’d recommend we do first is sit down and get acquainted. I would like to ask you a few questions that will help me help you find the right home. Will that work for you?”

STEP 2) The Meet – Choose a different location (fresh energy)

– Office (Like Bringing Them Into The Death Star)

– Meet Them Where They Are At

– Easier To Get Them To Meet At Coffee Shop

– Presentation On Tablet

– Offer a gift (drink? Pen?)

STEP 3) The Buyer Interview:

– Tip (Have a file made up with their name on it.)

– “I would like to ask you a few questions that will help me help you find the right home. Is that okay with you? Is it okay if I take some notes?” (Power of the Note Pad)

– Follow the proper question sequence: Did You Know??

a) Rapport questions

b) Foundational (prior learning) questions

c) Diagnostic questions – who, what, when, where, why, how?

d) Solution (closing) questions

STEP 4) Pre Buyer Packet

“I prepared a packet of information for you that has everything you need to buy real estate in [place].” Briefly review packet, point out contracts and finish with agency disclosure. (Confirm they are not under contract with another REALTOR®.)

STEP 5) The Funnel Process

“Our goal is to help you find the right home and, at the same time, make sure you don’t miss anything or pay too much. We have a process called “The Funnel Process” that will help us accomplish those goals. Would you like to see how it works for you? Great.”

“Let’s start with what you have so far. “Do you have a list of homes you have found you are interested in?” Review what they have. “Have you gone inside any of these homes?” “If it’s alright with you, let’s start by putting these homes into what we call the ‘funnel’. (Draw a funnel) To make sure you don’t miss anything, let’s also put into the funnel any home you might consider. Will that be okay? Discuss: o MLS o New Listings o New Construction o For Sale by Owner

“Once we have everything in the funnel, we’ll start a simple process of elimination to remove those properties that don’t work for you. We’ll use the comfortable process of elimination versus the often frustrating process of selection. This way we’ll make sure you don’t miss anything.”

“We’ll go from 1,000’s of properties in the funnel to 100’s and then to dozens as we begin to eliminate those that don’t work.” “Some we will look at on-line, some we will drive by, and some we will decide to make an appointment and go in. You will be in control of the decisions.”

“As we go through the process, our goal will be to find our top three favorites that could work for you (and this can be a rolling top three).” Once you have identified your favorites, I’ll do a simple market analysis showing you sold properties to help you get a feel for value. Our goal is to make sure you don’t pay too much.” “Does this look like a process that will work for you?”

STEP 6) Scale of 1 To 10 Technique

“Just for fun, to give me an idea of where you are in the process, on a scale of 1 to 10 (with a 1 being you are just starting the process and a 10 being you would like to find a home today) where would you rate yourself?”

“What would have to happen for you to be a 10?” Drill down on each item – ask questions and listen (3 Deep)

– “What specifically about…?”

– “Why is that important to you?”

– “Tell me more about that.” – Take notes. (Power of the Note Pad!)

STEP 7) Pieces Of Paper Exercise

(Give each person a piece of paper) “If it is alright with you, I would like each of you to make a list of the things you want in a home. After you have made your list, put stars beside the three things you can’t live without.”

STEP 8) What & Why?

Features and benefits.

(What) Features

(Why) Benefits

Remember: People buy their “whys” (benefits) not their “what’s” (features). Explain the concept of the “85% perfect home”

STEP 9) Cash? Loan? House to sell?

“Will you be paying cash for this home or will you be getting a loan?” If getting a loan: “Do you have a loan arranged? Do you have a lender?” “While I’m doing the computer work for your MLS® search, would you like to meet with my [Name of Lender] for a second opinion?” “There is absolutely no obligation to use [Name of Lender]. However, it will give you a second opinion.” Benefits to them of second opinion? Do the preliminary MLS® search while they meet with the lender.

STEP 10) If we find it… What will you do? (story)

So there you have it the 10 simple powerful steps to convert and get a commitment from a buyer in today’s market. I challenge you to try changing up how you are dealing with buyers today and follow this tried and true buyer system and see your experience with buyers go to a whole other level.

Strength and courage,
Wade

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The Secrets to Working with Buyers Exclusively & Getting Paid

kelowna on December 3, 2014

Redefine Your Buyer Agent Mindset for 2015

For more than two decades I have watched real estate agents roll the dice and let the home buyer take advantage of them, their profession and their time.

Why do we continue to gamble and let the buyer play the game better than us?

With the creation of buyer agreements we would think the game would stop but that is not what is happening at all.

My opinion is, I feel the level of training on how to present your value proposition to get a buyer to sign with you has not been taught compared to how we have been educated to work with a seller and sign them to a commitment!

What is Your Buyer Agent Mindset?

Do we just hope buyers will be loyal, roll the dice, stand back and see if we win some and lose some?

Is this the way we want to do business with buyers?

Or do we decide… real estate is my livelihood, this is serious and I am a lean mean appointment machine… this client has “X dollars” of my money and I want it?!

Buyers are not liars, we just don’t ask the right questions my friends. They use and abuse us because we allow them to and don’t have a system that allows us to take control.

Having the right mindset changes everything for a buyer agent.

The next important skill set is having the ability to qualify, measure the buyer’s motivation and determine their timing.

A successful buyer agent is one who can get a buyer to like and trust them quickly and ask powerful, engaging questions and than be quiet and listen!

Find the right scripts, dialogs and questions to establish rapore, qualification, motivation and timing of the buyer.

(I put together a PDF for you to download highlighting the top 10 benefits a buyer receives by using an exclusive agreement… enter your info below to grab it for free.)

The most powerful qualifying question for a buyer is the question “when”?

Once you’ve established your new mindset, and have the skill to build trust and qualify and now we need to answer the buyer question “why you and why exclusive?”

To effectively answer this question you need to first be able to understand and solve their biggest challenges for the home buyer.

Biggest Challenges Home Buyers Face Today

Too much information
98% of listings they inquire on they won’t buy
Can’t find what they are looking for
Can’t find a deal to buy
Best buys selling too fast
Multiple offers and losing out

What You Can Offer to Solve These Buyer Challenges

Provide data, interpret and advise
Auto email listing alerts
Provide them with sleeve, expired listings
Multiple offer and negotiating strategies
Mail and door knock service on behalf of the buyer
All access pass to the MLS data
Virtual tour all inventory in office to save time and create short list

The items mentioned above are just some of the things that help us convert the buyer.

Now let’s look at ways to engage the buyer and simplify the buying process.

Have them come into the office and show them your 4 step Home Hunting Plan.

Step 1 Qualification
Step 2 Tour homes virtually
Step 3 Pick short list
Step 4 Show and sell.

Here are a few of my buyer agent tips to save you and your client time, money and stress.

Don’t work with them all. Pick and choose and don’t be afraid to send them away. No commitment then no go!
Buyer presentation will help to get commitment and the buyer agreement signed just like your listing presentation. Do you have one?
Show no more than 7 homes. The reason phone numbers were 7 digits is because the human mind can only recall 7 digits and the same us true for home views.
Name and rate every home you show. By making up a name for the property the recall of memory increases and by rating they are helping the elimination process.
Let them go in and you follow. They will get that feeling when they know it is the one. Look for the buying signals and follow behind.
Close! Ask them to buy every house. Can you see yourself living here? Do you like this one enough to buy it?
Show them the top 2 homes a second time right away. I increased my chances of an offer every time I did this.
Write the offer at the kitchen table of the home they are buying. Psychology helps them connect and you make less mistakes with inclusions and other contract items.

I trust that you find value in this weeks content and begin to really work with buyers at a higher level and get a commitment and get paid every time!

I put together a PDF for you to download highlighting the top 10 benefits a buyer receives by using an exclusive agreement… enter your info below to grab it for free.

Strength and Courage,

Wade

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