5 simple ways to motivate your buyers

Have you ever had hesitant buyers who never seem to make up their mind on buying a home? Most times the most convenient thing to do is to let them go. But, what if there is something you can do to change their mind and get them to act? In this article, we will highlight steps you can take to get a homebuyer off the fence.

First, let us look at the common causes for buyer’s reluctance.

  • Hoping that the general market situation will improve; resulting in lower rates and prices.
  • A mindset that the house is overpriced, hence they are hopeful its price will decline.
  • They have a home to sell and are looking out for a financial balance on the buying and selling ends.
  • They are uncertain and nervous to commit to it.

Similarly, the National Association of Home Builders interviewed 700 “hesitant” homebuyers.  According to the report released on Washington Post, 44 percent claimed they haven’t committed to a purchased because they were hoping to get lower mortgage rate. 41 percent said they aren’t sure of qualifying for financing from mortgage lenders, while 38 percent said they were holding out for lower house prices.

If analyzed critically, all the listed reasons for buyer’s procrastination are mainly assumptions that could be overturned with superior argument. So as an agent instead of “letting a client be,” these are some steps you can take to turn them into closed deals.

Explain the benefits of homeownership.

If the client is renting at that time, you can explain the benefits that come with owning a home. There are many benefits you can list, from freedom to make changes to the house as they want to deduct mortgage interest from their taxes.

Interest Rates Fluctuation

As shown in the survey above, most buyers hesitate on buying real estate in the hope of getting a better interest rate. Explain to them that even if the interest rate falls, the difference may be too insignificant on the cost of the real estate. Also, though there is also a possibility that the rates may go higher, so instead of gambling on paying higher interest rates, it’s best to commit and make the purchase at the current rate.

Encourage the buyer to think long-term.

Purchasing a house is one of the best investments, one that is hardly regrettable. The values of properties are likely to increase in the future if the owners make to it. Explain the long-term benefits of buying a home at that time.

The Impact of the Moving Season

During the holidays, most homeowners take their home off the market, so that they won’t have to move their children to a new school. Point out to the buyer that the holidays are coming and most houses may be unavailable at that time. Also, homeowners are unlikely to move during winter. Encourage the buyer to purchase now before it hits.

Dangle a Financial Carrot

During the holidays, most homeowners take their home off the market, so that they won’t have to move their children to a new school. Point out to the buyer that the holidays are coming and most houses may be unavailable at that time. Also, homeowners are unlikely to move during winter. Encourage the buyer to purchase now before it hits.

Conclusion

If the buyer is held back by his finances. Then you can suggest helping. If they have a down payment and an approved loan, you can help cover the closing cost or contribute to buy down the interest rate (mostly 3-6 percent of sales price). Although this may reduce your profit, it will get you the sale and probably a good relationship with the buyer. Moreover, it’s best to get half profit than none.

Conclusively, when faced with a buyer that is holding back on signing a Purchase and Sale agreement, instead of abandoning them, you should speak to them and find out their reason. Then see how you can seek them to make the purchase.

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