"Better Deal" Buyers can be nightmares to work with if you aren't prepared for them.
This type of buyer uses multiple agents and lenders and shop for homes behind your back. They make shameless demands on sellers, lenders and agents to cut their takes. They shop beyond their means. They keep vital information from you like how much they can really afford to spend, what condition their credit is in, how soon they really need or want to move, and other data that you need to make a deal work. They expect you to work twice as hard for half the commission on starter or move-up entry-level-priced homes. And they are willing to lose great deals because of their self-inflated perception that if they aren't in complete control of everyone else (beating the seller down, for example,) then they are somehow getting cheated.
And they are everywhere.
But not all their bad behavior is the result of self-centeredness and and an overblown sense of entitlement. Some of its due to simple insecurity about themselves and the market. Some of it is due to generational influences that you can learn to overcome with a little effort. But some of their bad behavior is your fault, or, at least the Better Deal Buyer thinks so.
Elementary sales is all about indentifying your buyer's needs, so here are a few strategies you can use to turn your Better Deal Buyer into a homeowner instead of a waste of your time.
First-time Better Deal Buyers
Is your badly behaved buyer a first-timer? If so, they are probably underfunded and a little scared about making such a big commitment. They've seen some pretty smart people get burned in the stock market and with other investments, and don't want the same thing to happen to them.
These are the buyers you'll find at open houses and wandering the new home lots. And they don't want you to know how inexperienced they are, so they do as much on their own as they can including searching the Internet anonymously.
This is where having a stash of materials to give them is going to be a big help, because these buyers are most likely to respond to third-party validation. If a journalist tells them they need to get prequalified before going to look at homes, for some strange reason, that carries more weight than if you tell them.
The problem is, most third-party information sources out there are Realtor-unfriendly. There are plenty of places on the Internet and in the bookstore for homebuyers, but most give the same tired advice - that your agent is screwing you around somehow. By the time the buyer gets to you, they think they are talking to a flim-flam artist.
So if you're having trouble getting straight answers to simple questions like "How soon are you planning to buy?," then visit the Realty Times' library of stories for consumers and browse Buyers. You'll find some stories that will be useful for your buyer, especially stories on the importance of cleaning up credit and getting prequalified for a loan. Just print 'em out and have 'em ready to hand out.
Sometimes hearing the same advice from several sources does the trick.
Double-agent Better Deal Buyers
These buyers have an agent or more hiding in the wings - an aunt or cousin they feel they have to do business with but may not really trust. Or they have someone they do trust, but for some strange reason, they don't want to bother this person to do his/her job. So they tap you to show them homes.
"I'm sorry to have to ask if you're working with another agent, but sometimes people fib to us so they can go ahead and see a property without calling their agent. What they don't know is that an innocent action like that can have awful consequences for their agent."
Then smile and don't say another word.
Sometimes buyers will challenge you and tell you up front that they aren't loyal to agents. "May the best agent win," they smirk.
Just smile and say, "Yes, that might work for you, but loyalty works both ways. Agents in this neighborhood network to sell homes, and many homes get sold without a sign ever going into the yard. Now put yourself in your agent's shoes a minute. If you just found out a great house is about to come on the market, and you have more than one buyer for it, which buyer are you going to call? The one you know is loyal, or the one who says, "may the best agent win?"
Stop right there. Don't say another word.
The Commission-cutting Better Deal Buyer
"Will you cut your commission?"
If you are suprised to hear this request coming from a buyer, don't be. Brokers are reporting that more and more, buyers are suggesting that the selling agents kick in commission as a way to reduce the purchase price of the home. They are also getting well-trained by a myriad of affinity companies to expect a "rebate" for buying. They also use their agent's commission as a last resort should something threaten their closing, like the fact that they bought a new car or furniture the week before closing and now their lender won't lend as much on the home.
There are many ways to respond to a request for a commissionectomy.
You can pull out your dollar bills and show the buyer where the slices of commissions go and how painful it is for you to be the one to get cut.
Or you can just cut to the chase.
"I assume with a request like that you are willing to offer me something as an incentive. So what do you think I'll like better than my commission? I'm all ears."
Don't say another word.
There are other sub-categories of Better Deal Buyers, but these tips should help you get on better footing with most of them. It's really all about control. The more insecure, distrustful or egocentric the buyer feels, the more control they want. For you, regaining control means getting the deal to closing.
Why keep your responses short and sweet? It puts the conversational ball back in their court. When you are listening, you're learning, so stop talking, and the other person has no choice but to respond. The Better Deal Buyer will invariably start giving you exactly the information need like why they are fearful, distrustful or why you deserve a lower commission. Then you can respond because you are now getting specific information you needed from the beginning - the truth about how the Better Deal Buyer really feels.
Look for Adventures With Better Deal Buyers will appear in the next edition of Agent News.
Published: January 26, 2004
Use of this article without permission is a violation of federal copyright laws.
Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.
Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans.
Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR
"The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors
Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
