One of the true joys for most REALTORSⓡ is working with house-hunting newbies. They’re usually wide-eyed and excited as they get closer to the American Dream of homeownership. They’ve worked hard, saved their money, decided where they’d like to live and chosen you to guide them.
What they haven’t done, probably, is spend a lot of time researching all of the crucial steps of what it takes to get to a successful closing. That’s a big part of why they’re working with you, even if they don’t express it. The last thing you want to do is rain even one drop on their parade, but you need to find out how savvy they are to the process of buying a home for the first time, and fill in the many blanks that become apparent.
RISMedia asked experienced REALTORSⓡ to share their strategies during the initial meeting with a first-time homebuyer client. Or potential clients, actually, as they will decide if you’re the right partner for their upcoming search.
Let’s begin by stating something sometimes easy to overlook in the excitement of landing a new client: They need to have the funds to buy a house. Some folks love to visit houses for sale without much of an urgency to make an offer. So first finding out their seriousness and ability to purchase can save you from wasting a lot of time.
Moving things forward
The conversation with first-time homebuyers ready and able to make offers and proceed to a hopeful closing moves things forward, and agents can then begin to showcase their expertise.
“Counseling all home buyers before they embark on a purchase journey is very important, especially for first-time buyers,” notes Alexander Chingas, with the Bross Chingas Bross team at Coldwell Banker, in Westport, Connecticut. “We always discuss the importance of being pre-approved for financing, or obtaining appropriate evidence of qualification to support a cash purchase if they will not be borrowing. We have relationships with reputable lenders, and it is important for my teammates and I to know that our clients are in the best of hands when we introduce them to the other professionals that have a role in the transaction.”
Longtime successful broker associate Jeffrey Decatur, with RE/MAX Capital in Latham, New York, has a specific list of what to do when having the first meeting with someone looking to buy.
“There are so many things that come to mind that are key must-tells for agents with first-time homebuyers,” he says. “Do everything the same way every time, client or customer. Have a checklist and eventually you will find a rhythm and it will become second nature.
“Set the stage, manage expectations and educate. Meet with your buyer just like you would for a listing. Most important is to set the stage and manage expectations. Set your boundaries, lay the groundwork for how you will work together. Show your value proposition, show them you know what you’re doing, and that you are the expert. Go over the process, from beginning to end. I explain every step of it…attorney approval, inspections, how structural issues are handled, a basic timeline, who handles what, who is who and what their jobs are.”
Decatur stresses that, like all professions, performing the job duties of a REALTORⓡ becomes easier over time, but that clients will likely be anxious, especially those buying a home for the first time.
“Make them feel comfortable to ask you any question,” he advises. “We do this every day, but they are nervous and don’t want to feel or seem silly. Tell them there are no silly questions. I assure them that we are a team, that I have been through this hundreds of times and that communication and trust are key. You have nothing unless you have honest communications with your agent. Let them know you are their soft place to land.”
A sensitive issue that comes up fairly often is one that Decatur makes a point to defuse early on.
“Shoot holes in the (mis)information from the ‘experts’ they know,” he says. “We have all heard that ‘so and so says this or that.’ I tell them of all the inaccuracies I have come across in my career, on websites, or from someone’s Uncle Expert. I show them mistakes on said websites as we come across them. I actually keep a file of inaccuracies on my computer. It helps to show them that although they may have access to some information, they don’t have access to it all, or all of my experience. I also show them or introduce them to real experts to rely on, like attorneys, inspectors and mortgage people.”
The technology advantage
Providing clients with access to technology is another strategy for Decatur.
“I give them the tools I have access to, like the MLS, and then give them the app,” he says. “Whether it be the front-facing MLS app or your company app, sell the benefit to them. I tell them it is live local and late breaking and the source that all other websites that the public has access to download from. Tell/show them it is the same or similar system that MLS and the public doesn’t have access to. People love to have things that are special. It will help establish your value and differentiate and show your value.”
Chingas adds that there should be no real surprises as clients strive to reach their goal of homeownership. They may not get a house they bid on, but they will understand going in exactly what may be necessary, and cannot complain if things don;t work out that they were misinformed.
“We are big believers in managing expectations about what to anticipate at every juncture,” he states. “Everything from what a buyer can reasonably expect to find within their budget parameters and what wish-list items they need to let go of, to what contingencies they can realistically expect to negotiate into a deal and what they will not be able to insist upon. We like to explain as much as we can in advance so that the buyer feels like they are navigating as few surprises as possible once the transaction is underway.”
5 key takeaways
- Find out how serious a new client is about actually buying a house to save you days or even weeks of time.
- Discuss the importance of being pre-approved for financing, or obtaining appropriate evidence of qualification to support a cash purchase.
- Set the stage and manage expectations. Set your boundaries, and lay the groundwork for how you will work together.
- Make clients feel comfortable to ask you anything, telling them there are no silly questions.
- Show clients or introduce them to real experts to rely on, like attorneys, inspectors and mortgage people.
