Realty Times: Use the Internet Listing to Lock in the Buyer

March 23, 2000

Use the Internet Listing to Lock in the Buyer
by Blanche Evans

Some Realtors believe in sharing as much information as possible with buyers, while others allow the buyer to ask all the questions. Any topic the buyer doesn't want to know or know to ask, is left alone - a can of worms unopened. But is that the best way to serve your client? It could be the questions you didn't answer will make the difference in whether your buyer is happy with your services. Don't you want them to call you the next time they buy or sell a home?

Some evidence exists already that as representatives, Realtors aren't doing as much as they should to serve buyers. A recent report shows that today's buyers are less likely to form loyal attachments to real estate agents and are unlikely to use the same agent for their next transaction. A majority feels that agent's commissions are unjustified. But the most telling statistic is from the National Association of Exclusive Buyer's Agents - that 50 percent of buyers go to the closing table unrepresented.

Increasingly, consumers are using the Internet to find detailed property information, say both a Realty Times poll and Realtor.com survey. In other words, buyers are performing more initial home research and evaluation themselves. The question is why - aren't they finding out what they need to know from Realtors? It could be that they don't know which questions to ask.

Since the Internet is used by over 40 percent of home buyers, says the National Association of Realtors, maybe that is a good place for Realtors to get on the right track with buyers.

The number one activity for buyers online, according to Realtor.com, is looking for homes, so it stands to reason that the listing can be a good place to provide more information to the buyer than they ever knew to ask.

Let's say the buyer has asked you to email some homes that match their criteria. You find one that seems perfect. Stop and take a good look at the information. Invariably you will find some tidbit that you can improve upon that will save your buyer time, trouble, or money, even if it's your own listing. Learn to play a game with yourself - which information is useful and which isn't? Which information is likely to be accurate and which isn't? Soon, you will see information leaping at you right off the screen.

Here are just a few ideas:

Look at the taxes. Do they seem unusually low for the listing price of the home? It could be that the taxing authority hasn't raised the owner's taxes in years. Your buyer could mistakenly think this is the rate they will pay, but of course, it is, but only for the remainder of the year. Take the time to figure the taxes based on the price your buyer would pay for the home, and the difference could mean hundreds of dollars per month added to the house payment.

Look at the square footage. Who did the measuring? Does it match the tax roll data? Warn your buyer that their offer will be closely related to what people are paying per square foot in comparables. In fact, banks won't loan over a certain amount per square footage for any home in the area. Let your buyer know that the bank appraiser will verify the square footage and the offer might be adjusted accordingly if the home is found to compare more poorly to the comparables on which the offer price was based.

Look for key words like "per owner." Advise your client that you won't allow them to rely on the owner's memory, but that together you will get independent confirmation of the feature in question from the appropriate authority.

Look for features advertised as new. Any new feature should have a warranty or it isn't really new. Tell your client that you and they will find out what is meant by new. They have a right to see any warranties and ask if the warranty is transferable to a new owner. Also, ask to have the names and contact information of workmen who may have installed the improvements.

Information to buyers is on the increase, including such enhancements as hazards and seller disclosures, but that doesn't mean that the buyer is able to interpret the information they are getting correctly. If you can anticipate a frequently unasked question, especially one that could result in additional expenses or delays for your buyer, then answering in advance will make your buyer thank you forever. And forever means repeat business and referrals.

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