Sunday, May 19, 2024

first time buyers

    Think of the home purchase process as a journey. I know, sometimes it feels like a never-ending one, but stick with me for a minute.

    On any journey, we all look for signs: city names, arrows, freeway exits, and mile markers. These signs guide us as we travel. You, as the buyer’s agent, need to be your client’s sign during the purchase process.

    Like all effective signs, you should convey clear, simple information and give it enough time for your client to provide a proper response.

    In other words, don’t put the yield sign in the middle of the merge lane. Especially at the last minute. Give your client enough time to safely pull into an adjacent lane before the big semi-truck is on top of him.

    Granted, the home purchase road is one full of potential potholes, but it’s up to you to keep your client from falling into one of them. Here are some considerations when guiding a client through a purchase.

    The First Time Buyer Series is shown above. To learn more, Click Here.

    Does the buyer have what it takes to keep going?

    While many of today’s buyers are savvy about the market (thanks to all the media attention), and assume they have the stomach for the process, it may be a whole different story when your client is knee-deep in it.

    Be honest with her about the things that may go wrong and how you will handle these issues if they come up. Don’t sugarcoat anything about the process. The last thing you want is for her to feel disillusioned after you’ve put time and effort into the deal. If she’s going to bail, then get her to bail upfront.

    Communication is critical

    Our goal as business owners is, overall, to build our businesses through repeat and referral clients. The client that refers you to her friends is one that was satisfied with your work.

    The key to client satisfaction is communication. This is never more important than when working with a nervous first-time homebuyer. Not only do you want a client for life, but you want this particular deal to come to a successful conclusion.

    Remember, you’re a signpost. Guide the client with clear communication every step of the way and she’ll get to her destination.

    This is So Exciting!

    While it’s tempting to think of yourself as keeping this buyer “on a hook,” it’s important to remember that she’s not a fish. She’s a person with hopes and dreams and the biggest of these right now is this house.

    Excitement and enthusiasm are, thankfully, contagious. Get excited. Yes, this may not be your only client, but she may be your most frightened and frustrated. If you’re excited about her new house, she will be too. And excitement is a powerful motivator.

    Keep her future-oriented. Where will she put the sofa? What color has she chosen for the living room?

    Yes, you’re a new agent and learning the ropes as you go. Focus on your client, however, and before you know it, you’ll have more of them!

     


    When you have time…below are some marketing tools to help support your success.

    1. Put Your Real Estate Business a Step Above with Your Own Branded Magazin

    Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct, response-driven articles written by real estate industry experts and engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card!Click Here

    2. The Free 6-Month Done-For-You Strategic Marketing Planner

    The Real Estate Marketing Planner is a powerful 6-Month Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

    3. The Free Online Real Estate Business Plan

    The Real Estate Business Plan allows you to enter your business goals for the year and get a breakdown of how many prospects, listings, closings, and so on are needed to reach your financial goals.   – Click Here

    4. The Become a Listing Legend Free eBook 

    This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

    Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here


     

      It appears that the mortgage rate hikes have resulted in first-time buyers and others on tight budgets getting priced out of the market.

      But there may be a way around this challenge.

      Even though fixer homes aren’t as rock-bottom cheap as in the past, they can still present value to this pool of buyers. 

      And there are various loan programs that support the fixer home purchase. Let’s take a quick look at the two most popular: FHA’s 203(k) loan and Fannie Mae’s HomeStyle® Renovation Mortgage. 

      The FHA 203(k) Rehab Loan

      If you haven’t had an opportunity to work with FHA rehab-loan buyers recently, there are a few changes you may not be familiar with.

      The FHA 203(k) product, for instance, has new names for its two tiers:

      • The 203(k) Full loan is now known as the 203(k) Standard.
      • The 203k Streamline is now known as the 203k Limited.

      Along with the new names came some small changes to each product. For instance, “Repairing or removing an in-ground swimming pool is allowed on both 203k Standard and 203K Limited loan programs with no dollar limitation as to bid amount,” according to the pros at Amerifirst Home Mortgage.

      Other notable changes include:

      • The 203(k) Standard now allows for foundation work to take place even when the home isn’t going to be razed.
      • The Limited program now requires that the buyer submit a work plan wherein “… one or more contractors will provide the cost estimate or bids.”

      Other changes were also made, and you can review them at Amerifirst Home Mortgage’s website.

      Fannie Mae

      Fannie Mae’s HomeStyle® Renovation Mortgage is a conventional loan backed by the GSE. The advantage this presents for your struggling clients is that “As a government agency, Fannie Mae exists to help make housing more affordable to mid- to low-income borrowers …” and those with “… poor credit histories and scores,” claims Lauren Bowling at Rocketmortgage.com.

      This product is also ideal for those clients seeking a multi-unit home, such as a duplex, triplex, or quadplex, Bowling adds.

      Naturally, there is a lot more to learn about these loan products, and you’ll find this information online at:


      PLUS: When you have time…below are some marketing tools to help support your success.

      1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

      Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts and engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you. Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card!Click Here

      2. The Free 6-Month Done-For-You Strategic Marketing Plan

      The Real Estate Marketing Planner is a powerful 6-Month Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

      3. The Free Interactive 6-Month Real Estate Business Review

      The Free Interactive 6-Month Real Estate Business Review allows you to enter your business goals for the remainder of the year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.   – Click Here

      4. The Become a Listing Legend Free eBook 

      This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

      Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. Click Here

        As a new buyers agent, you may still be learning the ropes. Now is the time to cultivate good habits and avoid making the mistakes that many other agents make.

        One of the most prevalent among the latter is assuming that your clients know what they need to know during the home buying process.

        In reality, most first-time buyers know little, if anything, about buying a home and are counting on their agents to guide them through the process.

        Do them a solid and share with them the following 3 warnings.

        1. Getting preapproved for a mortgage is non-negotiable

        “For 41% of recent buyers, the first step that they took in the home buying process was to look online at properties for sale,” according to the NAR’s Profile of Homebuyers and Sellers.

        Yes, the prospect of buying a home is exciting, and without knowledge of the process, some folks jump right over the baby steps of shopping for a lender, loan preapproval, and interviewing buyers’ agents. They hop in the car and start looking at homes for sale without even knowing how much home they can afford.

        It’s a recipe for disappointment

        Knowing how much they can spend is paramount, both in avoiding wasting your time and theirs. 

        Then, there’s the fact that sellers and their agents want to see a preapproval letter. 

        Experienced agents know well the couple that fell in love with a house they found open on a Sunday afternoon only to learn later that it was way out of their price range. Nothing you show them after that will stack up.

        2. Help them understand the home loan process

        Check this out: “41% of Americans who’ve never owned a home believe 20% down payments are required,” according to Maggie Davis at lendingtree.com.

        These people are first-time homebuyers who are absolutely clueless about down payments. Yes, 20% down is best for the borrower, but a smaller down payment certainly doesn’t prohibit them from buying a home.


        The First Time Buyer Series is shown above. To see more designs, Click HERE.


        So, although it’s a given that agents should counsel their buyers that they need to see a lender before looking at homes, they also need to warn their clients about the out-of-pocket costs involved in the purchase of one. Then, give them the good news about low-down loans and down payment assistance programs.

        3. About that final credit pull

        Because they aren’t fully tutored on the mortgage process, many newbie homebuyers rightfully assume that once they’re approved for a mortgage, they will remain approved. 

        They can relax.

        Many are so eager to get started shopping for furniture, new appliances, and other items for their new home they run up hefty credit card tabs. Additional credit changes their ratios, and they may find themselves without a home to fill with all those purchases.

        Remind your clients that it’s not a done deal until it closes. Changing jobs, making large purchases on credit, and allowing credit inquiries after loan approval have all proven detrimental to many buyers. The lender’s soft pull just before closing should be explained fully to your buyers.

        Yes, we all wish that mortgage professionals would pass these warnings on to your clients, but they typically don’t. 

        Just consider these warnings as part of what we know will be the amazing customer service you will provide all of your buying clients.


        PLUS: When you have time…below are some marketing tools to help support your success.

        1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

        Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

        Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card!Click Here


        2. The Free 12-Month Done-For-You Strategic Marketing Plan

        The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

        3. The BusinessBase, SOI building system

        The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks all of these boxes but is also a business-building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

        4. The Free Interactive Real Estate Business Plan

        The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

        5. The Become a Listing Legend Free eBook 

        This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

        Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

        6. The Take a Listing Today Podcast

        Watch the ProspectsPLUS!, Take a Listing Today Podcast for actionable content to help you get more listings. – Click Here


          Have you ever had something bad happen to you only to find out later on that the event was actually a blessing in disguise?

          Jackie, for instance, was fired from her job. Sure, she panicked during the first few days of unemployment, but a month or so later, she was doing something else for a living. Something she dreamt about but never had the courage to pursue.

          Had she not been fired from her previous job, she may have never gone after her dream.

          The transitional real estate market is a lot like that. What appears to be a time of challenge or, at the least, discomfort may turn out to be an amazing time for real estate agents.

          Coming back down to earth may mean “crashing” for some clients

          Home price gains are shrinking, and sellers are starting to come back down to earth. However, coming back down to earth doesn’t happen overnight, as you seasoned listing agents know.

          After years of media reports of rapidly escalating home prices, multiple offer situations, and uber-quick sales, those sellers who choose to wait until the tail end of the sellers’ market to jump in are hard to convert.

          They’re not going to get that their home is no longer the belle of the local real estate market, that their hoped-for price is now a fantasy, and that it may take longer than 24 hours to get it under contract.

          And, those sellers who put big bucks into the house to ready it for the market are going to be more than a bit upset

          Especially when buyers start nit-picking them over price, terms, and more.


          The Call To Action Series is shown above. To see more, click HERE.


          Then, there are the buyers

          If you’ve been a listing agent for more than a minute, you can recall the last buyers’ market. Newbies, on the other hand, are in for a rude awakening.

          No longer can you chuckle over seemingly stupid requests in an offer because you have three others that are cleaner-than-clean. You will actually be expected to negotiate on your client’s behalf.

          “Good grief, how do I do that?” you may ask yourself as a new listing agent.

          Very carefully.

          While price is the typical hot button in a contract, “the devil is in the details”.

          Details are important

          “Details” when it comes to a real estate purchase agreement are the terms. If this turns into a full-blown buyers’ market, contract terms are where listing agents can work their magic during negotiations.

          And, if you have examples of how you’ve done this in the past, use them for all they are worth. From your clients’ testimonials to full-blown case studies, let potential listing clients know how you’ve met with success in the buyers’ market.

          Now is the time for all good listing agents to figure out how they are going to deal with the oncoming buyers’ market. Don’t put off your planning. Face it and go for it.

          We’ll be with you all the way, so keep checking back.


          PLUS: When you have time…below are some marketing tools to help support your success.

          1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

          Homes & Life Magazine is a customizable magazine with rich, full-color content and a sharp, professional aesthetic. It includes compelling, direct response-driven articles written by real estate industry experts combined with engaging lifestyle content. Send out Homes & Life Magazine in Just Minutes – No Minimums Required. Or we’ll ship it to you.

          Homes & Life Magazine is the ultimate “Coffee Table Lingerer”! …and it costs less than sending a greeting card!Click Here


          2. The Free 12-Month Done-For-You Strategic Marketing Plan

          The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

          3. The BusinessBase, SOI building system

          The most effective thing you can do to build a real estate business is to become more visible, more likable, and remembered more often. The BusinessBASE™ not only checks all of these boxes but is also a business-building machine. In two easy steps, you can begin to build a robust sphere of influence that will provide you a lifetime of repeat business and referrals. – Click Here

          4. The Free Interactive Real Estate Business Plan

          The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

          5. The Become a Listing Legend Free eBook 

          This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

          Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

          6. The Take a Listing Today Podcast

          Watch the ProspectsPLUS!, Take a Listing Today Podcast for actionable content to help you get more listings. – Click Here