For this week and next week, we’ll be looking at some pretty interesting stats from a Realtor’s Association poll gauging what buyer’s and seller’s want out of an agent.
Above is a graph of what The National Association of Realtors found that buyers say they really want in an agent:
The big winner here is buyers saying they want help finding the right home for themselves. That’s often referred to as their “Forever Home”. It may be their forever home, but more often than not, the goal really is finding the best fit for their lives right now. A first time homebuyer might be looking for a starter home. The couple in the family building stage might be looking for more living space, in-home office, hobby space, etc. Older buyers might want an over 55 community that suits them or to downsize. Others might want investment property in the form of a flip or maybe a rental property. In almost every case, you see a combination of wants and needs that makes each buyer unique and their goals and targets a shifting bullseye.
Getting to know the buyers, who they are, what they want and where they plan to be going forward is critical to finding the right place. That requires communication over time. What someone wants at the beginning of a home search evolves as they get more experience in searching. Regular consultative conversations, exposing the buyers to the realities and availabilities of the current market and using tools like the MLS daily digest(a daily list emailed to the buyers each morning of new homes on the market matching the buyer’s criteria: Towns, # Bedrooms, #Baths, Garage?, Living Space, and so much more) or Realtor Property Resource reporting are all important methods of specifically targeting the home the buyer really wants to see.
Sifting through the homes we visit, an agent can be a huge help in spotting potential issues and benefits. I like to pick apart every home I go through with my buyers to make sure they know of any potential problems. I’m not a home inspector, by any means, but after 15 years I have a pretty good eye. When a buyer says to me, “Yeah, I get all that, but I really love this place.” I’m pretty sure we’ve found the right place.
The next step is prepping an offer. How can your offer standout from the multiple offers the seller is probably going to recieve. Some popular ways to give yourself a boost is a little note , called a “Love Letter” submitted with the offer that explains to the seller, who you are and why you love their home. This gives a personal face to you, the buyer, transforming you from a faceless number on a page into a living, breathing person. Another way is using incentives, like: cash offer(The Biggest Incentive, the biggest, but very rare), an escalation clause, waiving home inspections, explaining that the buyer does not have a house to sell first, etc. As an aside, I’m not a fan at all, in any way, of waiving the home inspection, even on new homes. Waiving it is a giant gamble on the biggest purchase of most buyer’s lives and can even be a dangerous gamble. That said, a buyer could say that’s what they want and it’s not illegal to waive it, just ill advised. These are a few examples of possible incentives to make your offer stand out.
Once an offer is accepted, It’s not a lock. A transaction is never complete until the home is closed and on file at the Registry of Deeds. Anything can happen in a Real Estate Transaction, but there are several hard points in the sale process where negotiation is most likely. The first of these is the home inspection, taking place right after the offer. What issues are uncovered? Do they rise to the level of concern that some recompense from the seller is required? How to present that to the seller without souring their impression of the buyer? How much is really the seller’s responsibility or normal wear and tear? These are just a few of the considerations required in deciding how to handle the buyer’s response to the inspection.
The Purchase & Sale Agreement(P&S) is a serious legal contract and should be performed with the Realtor, led by the buyer’s attorney. In many cases, the buyer just uses the lender’s attorney to save a few bucks on attorney fees. Keep in mind though, buyers who do that aren’t represented by that attorney. They still represent the lender’s interests entirely. Negotiations with the seller’s attorney, all the specifics of the transaction are locked into this P&S contract. What fixtures are staying, what repairs from the home inspection need to be made, what the timeline of the transaction will look like, what seller’s or buyer’s concessions are made are just a few of the issues decided and set in stone here.
The appraisal is another potential area of negotiation. Suppose the appraisal doesn’t value the house as highly as the offer did? Someone… the buyer, the seller or both, will have to make up that difference. Negotiation point. Conversations with the appraiser and back and forth between the buyer and seller usually result in a meeting of minds, but not always. Careful navigation is required to make it through that minefield.
Even entering the closing process can be concerning for a buyer. The commitment letter from the lender has funky conditions. The clear to close is late. A funds transfer is late. There’s a problem with the smoke inspection. A title problem has been uncovered in the title search. There’s a lien on the home. These are just a few potential pitfalls that can hit a buyer here.
Navigating a buyer through all of that to successfully close the deal is why buyers hire a Realtor to act as a pathfinder and coach through the transaction process. It’s not just the house hunting. It’s finding an advocate who knows you indepth and represents your interests in the transaction.
Lastly, meet with a bunch of Realtors, hopefully including me. Like taking a car problem to 10 mechanics, you’ll get 10 different viable ways to fix the problem. Each Realtor and their personality will be different, as will their approach. Naturally, I think I’m the best choice. Every Realtor you talk to will feel the same. Every one will have different specialties, personalities and approaches. Find the one that suits you best. Just like in house hunting, the more you see the more you learn about what you want. Throughout the process the buyer is the person leading their own side. The Buyer’s Realtor…the Buyer’s Attorney…The Buyer’s Lender – The Buyer’s Team are guides and advisors to the buyers. You want the partners who compliment you best.
Thanks,
Lew
Lew McConkey,
Brook Realty, Serving Whitman Hanson & Surrounding Towns
(781)252-9789
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