Posts Tagged ‘first-time home buyers’

Do You Have a Niche?

Jun 10, 2008 Marketing

A niche is choosing a specific group of people you specialize in. It’s a group of buyers or sellers you know more about than any other group of buyers or sellers. Having a niche can be a tremendous way of building your name recognition, and your client base. But what niche should you choose?

Many people choose a niche based on a personal experience, affiliation or hobby. There are hundreds of niches to choose from. Think of any need a buyer or seller may have. Then ask yourself if the real estate industry is fulfilling it. If not, you may have just found your niche.

To help you find your niche, we’ve created a list of possible areas you could become an expert in:

1. Senior Housing: This is an oldie but still a goodie. (Ok, so we couldn’t resist the pun!) As more and more people become seniors, senior housing is predicted to continue to grow steadily over the years. You will want to be familiar with maintenance free living, first floor master homes, and of course be knowledgeable on reverse equity loans.

2. First time home buyers:I always liked working with first time home buyers the best. They have excitement in their eyes and are generally very fun to be with. You can find them through local colleges, engagement announcements, marriage announcements, and many other avenues. Consider networking with a wedding planner or at least advertising in one’s office.

3. Horse-Lovers: This can be a huge niche if you are familiar with raising and boarding horses. As more farms turn into sub-divisions, people with horses need someone they can trust to find these unique properties.

4. Luxury Homes: This is probably one of the most popular and sought after niches. You will need experience and professionalism to excel in this niche. If your legs turn into pudding anytime you walk through a $4 million dollar home, this may not be the niche for you. 

5. Foreclosures and Pre-foreclosures: With the uncertain economy this is one we can expect unfortunately to grow. Take a few investor courses, network with banks, and learn the ins and outs of the foreclosure procedures in your area. If this is something you are seriously considering, you may also find the e-book Bank REO’s, Foreclosures, Short sales, and BPO’s: to be of great value.

This is just a small example of the many niches available. Others include commercial real estate, condos, special needs families, professional athletes, medical staff, transferees, veterans, and hundreds more. Think of your last few clients. Could any of them benefited from using an agent with a niche?

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Are Your Buyers Prepared?

May 20, 2008 Working With Buyers

Many times buyers are clueless to the process of buying a home. They might not understand 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 easier as an agent, always prepare your clients BEFORE they find the perfect home. Here are some ways to help them understand the home buying process:

1. Require Mortgage Pre-Approval: Pre-approval is not the same as pre-qualifying. Make sure they understand the difference and have spoken to 3 or 4 reputable lenders of their choosing. Once they have decided on a lender, they should sit down and begin the pre-approval process. Be certain that your clients understand 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. Explain 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. Explain 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 decide if they would take the home with or without these problems repaired. Be sure you also explain the various home inspection types and that it may cost them $500 or more to have these tests completed.

4. Explain the Seller’s Disclosure: It is important that buyers do not think that a seller’s disclosure explains everything or that all seller’s are honest. While the disclosure is a good 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. Explain 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 decide not to buy a home they can be sued depending on the contract. Make sure they understand 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 understand 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 understand the process they are less likely to feel like they are being taken advantage of or not receiving satisfactory service. Happy buyers = more sales for you!

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