Today’s market has been especially tough on buyers. Thanks to limited inventory and high demand, properties are selling quickly and at record-high prices. To get an offer accepted, buyers have to move fast.
Once the excitement subsides, some buyers can feel unsure — perhaps evening regretting their quick and costly purchase. But this is something real estate agents can help their clients avoid.
What can you do to help prevent buyer’s remorse?
1. Set expectations early.
Discuss the implications of a highly competitive market. Be upfront and specific about the obstacles buyers are likely to face. Prepare them for the realities of bidding wars and near-nonexistent negotiating leverage (e.g., waiving contingencies).
Explain what constitutes a competitive offer. Asking price is just the starting point. Lowball offers won’t fly, but offering above the asking price can result in an appraisal gap and potentially put buyers over budget.
2. Help buyers stick to their budget.
Set up a realistic budget based on loan preapproval. Consider closing costs, property taxes, upkeep, future priorities and everyday expenses. Emphasize the importance of sticking to the budget when making an offer (no matter how much they love a house). Set offer limits to avoid overspending.
3. Discuss potential renovation and repair costs.
Buyers often target fixer-uppers because the price is right. But renovations can be costly, especially when building materials are in short supply.
4. Offer help finding financial solutions.
Bring buyers up to speed on different types of mortgages. Discuss the short- and long-term implications of each option. More importantly: Refer them to a trusted financial expert for in-depth mortgage advice.
5. Be available to answer questions.
Regular communication with clients can help dial back the emotional frenzy that comes with a home purchase. Listen to their fears and anxieties. Answer their questions. Help them make decisions based on their means, rather than the demands of the market.
For more ways to improve the client experience, reach out.
