There are fallacies that some among buyers have - not a lot. Here are examples:
Fallacy No. 1) Real estate agents raise the cost of the house with their commissions.
Fallacy No. 2) Or, they can't use an agent when they are buying a dirt start home.
The seller pays the cost of the commission for the buyer's agent. Sellers who use agents typically get more for their homes. Buyers get convenience and someone who will work hard to negotiate a price for them.
Typically, a Realtor can fetch a better price for a home. The do-it-yourself seller forgets we network constantly. And, we use the big and powerful MLS. Sellers may not need all that marketing power to get their home sold, not these days. That's the rationale of the media. And, the media are wrong, wrong, wrong! Why would you ever fish in a small spot when you can fish in the ocean? Craigslist is no longer trusted. Newspapers have conceded they lost the war for ad dollars. These two services represent a tiny, tiny exposure to the real estate market.
A buyer who finds a home on their own these days, often arrives too late. The home was sold when the sign went into the yard. By the time, they drive up to the curb and call the seller's agent, the house has already been under contract for days.
A buyer absolutely needs representation. Just in terms of having someone take them on tours, they will save all kinds of time. For myself, I have extensive knowledge of home construction from having worked in the industry for more than a decade. That knowledge has value. Other agents are lawyers or bring other strengths to what they do as real estate agents. We're not just filling out forms and buying ads all day.
Representing yourself as a buyer is like stepping into the ring with a professional fighter.
Politely ask them to sign an agreement. If they decline or dodge the question, you make your pitch again. If there is nothing but silence after you ask for their signature, they will get up to leave or hang up.
I am a business person. I have to manage my time. I spend my time with clients first. When I see a home about to go onto the market, Mr. and Mrs. Prospect, you do want me to call you first?
Your delima is you think they want to look at homes.
Ask your buyers what are their greatest challenges, their greatest frustrations regarding buying a home at this time.
You can provide the REAL solutioin to these challenges and frustrations. HOWEVER.., before you can INVEST YOUR RESOURCES in those solutions, it requires membership.
Remember, you WANT the 'jelly beans' to opt out.
I don't sell real estate for a living. I sell my services. The goal is to help a property and a buyer that fit together find each other. I am a broker, not a salesman. There's a world of difference.
But I do require a buyer's agreement and I like that about 50% of buyers refuse to sign. It's good to weed out them out early, because those who won't sign will surely disappear before an offer gets written.
The liars, dishonest people and time-wasters are going to do it any way.
I figure that I'm ahead of the game if I just weed them out before I've wasted any gas.
The successes and failures come with the territory.
I'm not going to start out a relationship by telling my Clients that I don't trust them!
The face of real estate is changing. You have to try to pre-qualify every person before you drop everything, run and show them a property. Gas prices are rising, there are more agents than ever and my time is worth something, so if they are just "tire kickers" they will usually move on.
I like to have my clients give me referrals "saying I was a pleasure to deal with not a pain."
Just my 2 pennies though.
I'd like to hear a brief pitch given to buyers to get them to agree to sign a Buyer Broker Agreement. Because clearly such an agreement would serve to weed out the serious buyers from the tire kickers. But it also could easily scare away serious buyers who don't want to commit to an agent they don't yet know or trust.
So how do you present this agreement without sounding like you're asking for them to take a huge leap of faith in you?
I do have to say I have met with or spoken with potential buyer clients and have removed myself as an option. I realized we were not a good fit, or they viewed my roll as a gatekeeper with MLS and home access. I have also removed myself from potential buyers that repeatedly talk about "buyers rebates", I don't do that (I am one of the most experienced brokers in San Diego - holding an appraisal and general contractors license as well and have worked on more than $1 billion in real estate related transactions)
So in short, I don't ask for buyers to sign a contract because if I feel like it is the type of client that lacks loyalty I don't accept them as a client.
Best of luck,
Kindred Real Estate
I like to show buyers what I can offer them and let them know it is not a big deal to have the paper signed, just part of the process to buy a home.
If you go to a property and they want to write an offer won't they need to sign it anyways? Just speeds up the process while on the road.
Honestly, instead of having to ask myself these questions, I just get it signed. Surprisingly, I have only lost one potential buyer. I found that when you explain why, almost all buyers understand.