Time is currency. Before you spend too many hours driving buyers from one house to the next, be sure they're actually eager to face the hurdles of a hot sellers' market—from competing with other buyers to committing to contracts that benefit the seller. Here are some signs that your customers are actually eager to buy.
#1: They Never Say, "I'd Like To See What's Out There"
Clients who are only interested in exploring properties are probably not serious about buying right now. Even if they discover a property they like, it will be off the market before they can make a purchase. Explain the reality of a thriving real estate market to "browsers." Encourage them to take preliminary steps, such as arranging finance, before beginning their search.
#2: They Are Serious About Their Quest And Are Aware Of The Reality Of A Hot Real Estate Market
Motivated home buyers know exactly where they want to live and are aware of market realities. As a result, rather than waiting for you to send them a list of homes, they spend a significant amount of time researching properties online. They plan regular showings with you because they are in a hurry and don't want to miss out on a good property.
#3: They Have Been Pre-approved
Pre-approval demonstrates that the buyer is at least making progress. However, it is purely based on information provided by the buyer to the lender. It does not involve a credit report analysis or an in-depth examination of the buyer's ability to finance a property. As a result, it's far from certain.
A pre-approval letter, on the other hand, is a written conditional promise from the lender for a specific loan amount. The buyer has passed a credit check, filled out a mortgage loan pre-approval application, and supplied documentation to the lender. Pre-approval gives buyers a significant edge, particularly in a hot real estate market.
#4: They Have A Down Payment
Down payments that are conditional on the sale of another property may deter sellers from accepting an offer. Buyers who are truly driven will already have a down payment in the bank.
#5: They Manage Their Expectations
In a hot real estate market, buyers recognize that they may not be able to find a property that meets all of their requirements within their budget. They are willing to compromise, reduce their must-have list, and raise their price range if needed.
Should you refuse to work with clients who do not satisfy the following criteria? No, not always. If you have the time, it may be worthwhile to guide them through the process and prepare them to buy a property.