Are Your Buyers Prepared?

Many times buyers are clueless to the process of buying a home. They might not know mortgage pre-qualification, making an offer, counter offers, home inspections, or how a home closes and they get the deed and the keys.

To make your life simpler as an agent, always prepare your clients BEFORE they find the perfect home. Here are some ways to help them know the home buying process:

1. Require Mortgage Pre-Approval: Pre-approval is not the same as pre-qualifying. Make sure they know the difference and have spoken to 3 or 4 reputable lenders of their choosing. Once they have chose on a lender, they should sit down and start the pre-approval process. Be certain that your clients know once they choose a lender, they should stay with that lender to make the sale as smooth as process. There is nothing worse than a buyer who decides to change lenders AFTER the contract has been signed!

2. Provide a copy of the sales agreement: Let buyers read through the sales agreement before you are ready to make an offer. Clarify to them what each section means and what options they have for negotiation. This way when you finally have a home selected, you will be able to write the offer quickly and easily.

3. Clarify Home Inspections: Many buyers after having a home inspection want to nickel and dime the seller to death for things that are not major problems with the home. Make it very clear to them that a home inspection is meant to uncover major problems and that the seller may not want to fix minor issues. It is up to them to choose if they would take the home with or without these problems repaired. Be sure you also clarify the various home inspection types and that it may cost them $500 or more to have these tests completed.

4. Clarify the Seller’s Disclosure: It is vital that buyers do not reckon that a seller’s disclosure clarifies everything or that all seller’s are honest. While the disclosure is a excellent place to start, it is not always accurate and formal inspections should be done.

5. Don’t forget home insurance: Many buyers don’t realize home insurance is usually required by the majority of lenders. Again, have them shop around BEFORE the offer is signed.

6. Give them Deadlines: Making a calendar for your buyers with the different deadlines for inspections, mortgage, or other aspects once the contract is executed can be a major confusion saver. Clarify that if they do not meet these deadlines they may lose the home or be stuck with a home that has major problems.

7. Discuss Consequences: Your buyers probably do not realize that if they choose not to buy a home they can be sued depending on the contract. Make sure they know that they are legally bound to buy the home and what options are available if disputes between the seller and buyer arise.

8. Show Comparable Homes: A simple CMA of different homes in different price ranges can help them know why it is hard for them to find exactly what they want in their price range.

By preparing your buyers, you can be confident that your sale will go as smoothly as possible. When the know the process they are less likely to feel like they are being taken advantage of or not receiving satisfactory service. Pleased buyers = more sales for you!