You and I are living parrallel lives.
It is hard to say you have had enough. I have had buyers who run me to the ground, and right when I am reday to give upon them they buy something. My most difficult client actually ended up buying a home and referring me 2 clients after we closed. She even told her friends how hard she was to work with and that I did not give up on her.
That being said, there does come a time when you have to slow down. You can not keep showing home after home and the buyer not be motivated enough to at least make an offer.
Best of Luck to You,
Kawain Payne, Realtor
I usually give buyers a chance to adjust their expectations to the market. I judge their earnestness by a number of factors...whether they have a pre-approval, the degree to which the person communicates with me, how much driving I have to do, and the price point.
If after a few months, people keep dreaming and don't make the needed adjustments, I usually refer them to someone else.
One of the hardest things I've found to our job is that we don't get paid for our time. So, at some point, I need to see a path to success in order to keep spending time with a client.
Let's face it, today most buyers and sellers, with the exception of about 1% of first time buyers, have a world of information about buying and selling at their fingertips long before they come in contact with an agent. There is nothing an agent can tell them that they haven't read or heard already. From market reports to detailed descriptions of the transaction process, they have access to as much information as agents do. Thanks to syndication, IDX, and sites such as Trulia, they also have access to the same inventory that agents have, with the exception of a pocket listing or two.
How civilians process and apply that information is the wild card. There are three potential outcomes:
1) the civilian ignores the mountain of free and easy to find information and lives in a fantasy world, in which case only a crazy agent would follow the civilian of the intellectual and financial cliff; the prudent agent deftly analyzes the situation and makes a polite exit before taking flight above the 1,000 foot gorge
2) the civilian digests the information available in a rational manner but pushes their agent to get "impossible" deals (how many agents advertise "I do miracles in one day, the impossible takes two" - I see that tired and uninspiring pitch weekly; it's one of the "kick me" signs that many agents pin to their own backs)
3) the civilian familiarizes themselves with all the information available and works with their agent to assess realistic opportunities and move on one that meets their needs and they abilities
My point is that clients don't need to be educated, they just need to think. If they can't, it's not the agent's fault and it's not the agent's job to make them.
That's all. Bye-bye.
On her end of the line: Silence.....then "I won't settle for higher because I don't want to pay more monthly" (hence champagne taste beer pocket books)
Me: "expand your area, try East County"
Her: "No way."
My conclusion: this is a big waste of time if she doesn't make changes from here on even to check up on status of properties or entertain her latest "idea".
Dilemma: She has given me 4 referrals in the course of 4 years that have closed, do I continue this circus or ask her nicely that I appreciate the referrals, keep em coming, here's gift card to a nice dinner, but research the answers to your questions yourself?
I have been doing rehabs and renovations since 1993. and the 203K loans when they first came out.
Now for FIRST TIME HOME buyers, I do not recommend any rehab or fix up properties.
Fix up homes are for seasoned investors or those ppl who have bought and sold a few homes in the past.
IMHO, Move in ready is KEY for a first time buyers success and happiness.
Now, Champagne comes in many price points.
Show them the Champagne of their price points.
We can show some one a $150K dump that needs $100K work, 6 months of intense work and still only be worth $300K when finished. OR a MOVE IN READY $150K perfect condition home.
For a first time buyers are easily confused and over whelmed. Let's help them by making it easy.
that is part of our jobs, to listen between the words buyers are saying.
Best of Luck
It's your business, you get to decide who your willing to spend time on. This doesnâ€™t mean that your client is a bad person, it simply means she's either not really ready to buy in which case you can spend a little time with her when you've nothing better to do, or (and this is worse) she believes she knows more about real estate than you do in which case my advice is to do yourself a huge favor and tell her that things aren't working out and that you feel she'd be better of finding another agent.
This second approach has two benefits, the first is you'll immediately feel much better, trust me firing a pain in the ass client will make you feel 100 lbs lighter, time wasters weigh you down. The second benefit is that some clients once fired immediately beg forgiveness, acknowledge they've not been listening and suddenly their ready to pay attention and move forward.
Personally I'm not a huge fan of the 203K loans, they carry a lot of rules that most buyers simply are unwilling to comply with. I don't know your market at all, so it may be what they need to do, but perhaps you can find them a home that doesnâ€™t require as much work as one that would ordinarily be a 203k candidate.
My advice is to don,t give up on that client. The hardest clients give the best referrals. Everything is about the client and not about you. That is our job to make clients happy. Don,t think that you are wasting your time. You are not. Let her to see everything and then she will be educated with the housing market, and you will find out what is she really looking for and help her to find the right place that she can call a home.
Kian realty NYC
phone 347 528 5573/
Good luck and best,
Unwavering Commitment to Service, Unsurpassed Results
Sometimes you just get people who have been looking to buy for years because they are not realistic on what they can afford. In that case I think your energy is better spent else where. Your time is valuable!
I think its fine to put the client on a gateway so they get daily updates of houses, but until the preapproval letter is done, don't show properties.
The houses themselves will educate the client when they are fully aware what they can afford.
Has your client been pre-qualified by a reputable lender to verify she or he is qualified to purchase based on the current income, interest rates, loan program, credit and any other compensating factors your lender will tell you and your client how muchyour prospect will qualify for.
Based on that conclusion do you have any properties that fit her criteria and what she qualifies for?
If not does she have someone that will purchase the home with her that will help her quinch her Champayne taste?
If not it's time to move on.
HOMESMART REALTY WEST
Ricky Smiles Jr.
This is an agent problem, not a buyer problem.
The agent, Valli, revealed this buyer has been kicking tires for 4 years. Most of us would say, "Kick 'em to the curb." That of course is a response when transactions are the focus.
Valli later reveals four referrals received.
Valli is doing something right!
The 'agent problem' that needed to be solved is understanding the goal of the relationship. In this case chauffering a tire kicker about is the cost of the referrals. I would have lost out on this opportunity. Valli did not. I can take a client to dinner or show them a few homes they will not buy. The truth is, my costs are the same.
Now, do you think Valli is still driving the tire kicker about? That would be a total of five years! Prices have gone up. Distressed inventory has gone down. Likely purchase - non-existant.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Move to the Front of the Line (http://FirstLookHomes.us)
Once you've shown them what they can afford, also show them what they can't afford. If they are looking for houses but a condo or town house would fit show them that too. Then sit down and explain here are your options for your budget... Fixer, Condo, or Pay More... which of these three options will you consider?
You may need to give them a fresh set of eyes. Try this, give them an analogy of going to the auto dealer. Have you ever purchased a car? What was that like for you? Buying a home is like that. You either have cash or need a loan and your budget will qualify you for a compact car, used car, or Lexus.
Have an amazing day!
My other advice to you is to forget the 203K "TLC" houses and concentrate on showing her completed renovation listings. These are ideal for buyers who want it already fixed up and mostly new inside without paying a new home price. If she can't afford a fixed up flip, buying a fixer with a 203k is not going to save serious money. Look carefully at Scott Hulen's post. he correctly wrote the flippers make their money by buying below market (usually for cash at the courthouse steps) Your buyer can not do that. She does not have cash. The flippers then usually sell at market value for a renovated home, not at a premium to market value.
Once you have their price point, only show them homes they can afford.
I wish you well -
Kevin McLaughlin, Broker Owner
Berkshire West Realty
Good luck, don't waste too much time if your buyer is unrealistic about their purchase.
Another piece of advice I offer is that perhaps you have a general contractor that would be willing to go an appointment or two with you. Maybe the GC would be better explaining the potential (and costs) of a renovation.
We are primarily listing agents, here is what we can say from our side of the transaction:
1. A pre-approval letter is the key. The lender says "this is what you can afford", you say "I talked to your lender and here is what is for sale in your price range. I think these are the nicest for the money, drive by them and let me know which properties you want to see".
2. Show her the sold comps for the area. If there is a 1.5% difference between list price and sold price on average, let her know that she can most likely offer 1.5% below the list price and get the offer accepted.
If they choose to deny reality, talk to her lender and and have the lender handle the price point. If it persists beyond that, it is most likely a waste of time. Earlier in our careers, we both represented buyers. Very few ever ignored the reality of the price point. If she is one of those, suggest she hire another agent.
Best of luck,
Mark & Kari Shea
Shea Real Estate
Home Sales Specialists; New and Resale Homes
Property Valuation Specialists
Land Sales, Acquisitions & Consulting
Serving Greater San Diego
if they do nto agree to work in this premise, then tell them adios.
This is a great market to buy, but a really tough market for the lower price ranges. A lot of new buyers have this syndrome, and many ultimately don't buy because they want nice and new. I've had clients lose their beautiful homes to foreclosure that were shocked at what they could actually afford to buy in this lending climate, and so are still renting.
The only thing you can do is educate them on location and potential. They have to know they'll have to give something up for a fully remodeled home - location, size, something. Ask them what that will be.
As far as showing, explain that seeing homes is the step before submitting offers. So each time they want to see something way out of their range, let them know you wouldn't be able to submit an offer, so let's skip that one. Also, in the lower price range, any home that looks good to them, will look good to many other buyers and investors, so low ball offers are a waste of time, especially yours (refer them to an agent who likes paperwork).
But, also show them some before and afters of flips you see on the MLS. They can do that too with a rehab loan if they want to go through that process. Or, show them some nice condos if they're looking at detached homes, with lower HOA fees that won't scare them off.
It could be a waste of time in the end, and there has to be a reasonable end.
Usually they have to miss out on a place or two, or at least gain complete trust before they start getting it. I have been fortunate in that both me and my associates have had great clients, but I have needed to have a couple of conversations letting buyer clients go because they were unrealistic. I would say that firing the client would be a last resort and depends on how long you've been working with them. If they aren't ever going to be realistic then you probably are wasting your time.
I've also had a couple of clients come through whose philosophy was to keep flinging super low ball offers with the idea that eventually one would stick. We let them go elsewhere.
I don't think this would work in real life, unless you had a TV Camera and offered them $20,000 to help with the renovation!
I know of no tool we have other than WORDS:
I am heartened to know that I am not the only one who has a problem with this.
Even after we have qualified them, and tried to communicate with them, we probably are going to have this problem.
Good luck and may God bless