This week at my brokerage, Keller Williams, I have been attending a buyer’s mastery class. In the class there were agents that have been in business for twenty years and some just passed the real estate test. What most non insiders probably do not realize is that in our business there is constant education on the rules, the laws, financing, the market and the way we work with our clients. Although many of the fundamentals are constant, new markets dictate new standards that we as agents must implement in order to provide our buyer clients with the best possible solutions and services.
Although I love the Internet and how quickly I can connect with potential clients online, there is no substitution for good basics. Sometimes the basics are just what we need, the old tried and true ways. Nothing online can replace a professional and thorough Buyer’s Consultation.
This brings me to the “Buyers are Liars” statement and why some real estate professionals say this. It’s not nice, I know. I really dislike the saying. The thing is that some agents who are not so busy get so excited when the phone rings that they just say “OK whatever you want” and run around and show properties to anyone at a moment’s notice.
I am guilty, I admit it. When I wasn’t so busy in the past, I was so excited when the phone rang, I would just run out and show property to everyone; including their aunts, cousins and uncles too!
The problem with doing business in this way is that we miss one big fundamental step in the buying process and that is the Buyer Consultation. Missing this essential step can create a lot confusion and frustration for both sides; the agent and the buyer. By the time the “running around is finished” the buyer may be ready to put in an offer but is not qualified by a lender, maybe the building is not a qualified building or maybe the agent didn’t show them anything they liked.
So the agent gets annoyed and says, “They told me they were pre approved, Buyers are Liars! ” Then the buyer is frustrated and says, “Real Estate agents are all the same, they didn’t show me anything I like or they didn’t tell me that this building is not a qualified building”.
This is why a proper Buyer’s Consultation is key and a thorough Buyer’s Consultation will prepare you for this and more.
I think the way the Internet has come in to play, many “would be” buyers would just prefer to look at the properties online, call an agent and go see properties as they like. The problem with this practice and what most buyers do not realize is that although the Internet is a great way to start the property search; the property details and the pictures are only a very small piece of the puzzle. That’s the fun stuff, looking at the properties. The real work comes in before, when the offer is made and during the sales transaction. Plus if you are just calling the seller’s agents to show you property, how do you know that your best interests are taken into consideration? At the point that a seller’s agent is showing you a property, they represent the seller not you. Although you may be approved for financing, the building may not? If you are buying cash, what if half of the building is in foreclosure? Wouldn’t you rather work with an agent that is working on your side, advising you what you need to know prior to to purchasing in this market?
This Miami & Miami Beach real estate market is not like the previous Miami & Miami Beach real estate market and there is ALOT to know.
Today more than ever, buyer’s need proper representation. They need an agent who knows the market, knows the building, knows the area, knows the property’s history and can best advise the buyer of what to expect in this market.
Not only is a proper Buyer Consultation a necessity but now it is becoming the standard to have on file prior to looking at property a Pre Approval letter or proof of funds if buying by cash. Some of my potential buyer clients get a little “ruffled” when I ask about how they are going to pay for a property? They are offended if I ask them to speak with a lender and get a pre approval letter or if buying cash proof of financials prior to taking them out to look at property.
Honestly I don’t care to see what you are worth but I need to know how you are going to pay if you find something you like. This not only shows that you are qualified but just as important, I need to know how you are going to pay: in cash or by financing because this also dictates which buildings you can buy in.
Again, why Jamey oh why must we do the Buyer’s Consult?
Because as much as you want me to take care of you, I need for you to be qualified. We both have to do our parts, have some “skin in the game”. Don’t you want to work with a pro? In order to accomplish this, I have to sit down with you do a buyer’s needs analysis, discuss financing and tell you how this market is working so that you are prepared to buy when you see an opportunity. I also need to make sure that we can work together. As much as I need to interview you, you need to interview me. If you are making a purchase on a property in Miami or Miami Beach, it’s at least going to be in the $100,000 price point if not closer to $300,000 plus. Doesn’t it make sense to interview me, the person who is going to be helping you spend this money?
Whose fault is it that more agents don’t require a Buyer Consult?
It’s our fault, the agents. It’s our fault as an entire group for not setting a standard on how we should work with buyers. If you can call five agents and at a moment’s notice they drop what they are doing, run around and show you a hundred different properties and on the sixth call, you ring me up and I ask you to come in for a Buyer’s Consultation and I ask for proof of financing…… I think you as the buyer are either going to think (A) Who does she think she is no one else asked me to do this? OR (B) Wow, how professional, finally an agent who knows how to properly work with buyers. For me, it’s a gamble because I may loose a few in the process but I know there are more risks in doing business with those who do not want to take the time to meet with me first.
I think in the past it was so easy for buyers to get financing and there were not as many properties always readily available for purchase as there are today. Some of us just skipped past the Buyers Consult, financing issues and went straight to work on showing properties. That was then, this is now. The market has changed and so must we. Buyers need to expect this change too and know in advance that yes, it may be a great time to buy but now more than ever buying with a Professional is essential.
I am sticking to how I work:
1st: Buyers Consultation
2nd: Show Properties
I know that not every potential buyer that contacts me is going to like this but I also know that not every buyer is my client. I am okay with that. I hope those that I do work with will see the value in those upfront services that I provide. Hey I work mostly now on a referral base so I must be doing something right? Right?
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