September 2009 Article – Jeri Moran
Understanding the THREE markets in the real estate world today
As we enter the last quarter of the year, it is more important than ever to stay focused and help buyers understand the urgency the three markets out there today. With less than 100 days left for first time homebuyers to benefit from the $8,000 tax credit, there is no time to waste educating our clients after the fact. A thorough buyer consultation is critical and handling all possible objections prior to them coming up will make the difference.
There is no surprise that countless numbers of classes have come out on creating buyer urgency, scripts to talk to buyers all addressing the fact that when inventory increases, we are showing more and more homes and buyers are reluctant to make a decision. With the local and national media creating a doomsday perception of the market, buyers are over confident and want “a deal.” However, because there are three markets, many are loosing out on the “best” homes that sell the fastest, because they are the “best” homes.
The following is a dialogue that I encourage you to have with your perspective buyers prior to going out to see homes.
“Mr. and Mrs. Buyer, I am so excited to work with you to find the home you are going to buy. Before we go out and look at homes, I’d like to spend a few minutes and share with you the different segments of our current market. Would that be ok? The average number of homes a buyers looks at in today’s market is eight. We’ve found that if you look at too many homes, you’ll start combining the kitchen in one, the backyard of another and create a home that doesn’t exist. What you’ll find out there is three markets, the foreclosure market, the short sale/distressed market and the residential re-sale market (which is broken in to two sub markets). In the foreclosure market, banks have created what is called a sellers market. What that means is they put properties on the market at a price that is under market value to create multiple offers and garner over list price. (At this time show some examples). The second market is short sales. Are you familiar with what this is? (Explain if they say no). When purchasing one of these homes, we must be prepared to wait 3, 6 and even up to a year before being able to close on the home. Finally, there is the resale market. In this market there are two categories. There are the homes that are selling in under 30 days and getting approximately 96% of their asking price and then there are the homes that have chased the market and sell in over 120 days for sometimes as little as 73% of their original asking price. It is my job, together with you, to determine with type of home we are looking at. If we find the under 30 day home, will you be prepared?”
Keep your clients focused and move them towards what they really want…to BUY a home!
Happy hunting!
Understanding the THREE markets in the real estate world today
As we enter the last quarter of the year, it is more important than ever to stay focused and help buyers understand the urgency the three markets out there today. With less than 100 days left for first time homebuyers to benefit from the $8,000 tax credit, there is no time to waste educating our clients after the fact. A thorough buyer consultation is critical and handling all possible objections prior to them coming up will make the difference.
There is no surprise that countless numbers of classes have come out on creating buyer urgency, scripts to talk to buyers all addressing the fact that when inventory increases, we are showing more and more homes and buyers are reluctant to make a decision. With the local and national media creating a doomsday perception of the market, buyers are over confident and want “a deal.” However, because there are three markets, many are loosing out on the “best” homes that sell the fastest, because they are the “best” homes.
The following is a dialogue that I encourage you to have with your perspective buyers prior to going out to see homes.
“Mr. and Mrs. Buyer, I am so excited to work with you to find the home you are going to buy. Before we go out and look at homes, I’d like to spend a few minutes and share with you the different segments of our current market. Would that be ok? The average number of homes a buyers looks at in today’s market is eight. We’ve found that if you look at too many homes, you’ll start combining the kitchen in one, the backyard of another and create a home that doesn’t exist. What you’ll find out there is three markets, the foreclosure market, the short sale/distressed market and the residential re-sale market (which is broken in to two sub markets). In the foreclosure market, banks have created what is called a sellers market. What that means is they put properties on the market at a price that is under market value to create multiple offers and garner over list price. (At this time show some examples). The second market is short sales. Are you familiar with what this is? (Explain if they say no). When purchasing one of these homes, we must be prepared to wait 3, 6 and even up to a year before being able to close on the home. Finally, there is the resale market. In this market there are two categories. There are the homes that are selling in under 30 days and getting approximately 96% of their asking price and then there are the homes that have chased the market and sell in over 120 days for sometimes as little as 73% of their original asking price. It is my job, together with you, to determine with type of home we are looking at. If we find the under 30 day home, will you be prepared?”
Keep your clients focused and move them towards what they really want…to BUY a home!
Happy hunting!
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