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Are your buyers drinking the media Kool Aid?

Of course they are and it is our job to give them the correct information about our local markets whether they want to believe it or not!  THE NUMBERS DON'T LIE---WE DON'T MAKE THIS STUFF UP!

I just got off the phone with a colleague who, like me, is frustrated with having to school buyers about pricing. Imagine a buyer wanting to purchase a seller owned property for $100k off the list price?  Okay, sad to say, you can imagine it!  Despite the market, buyers are going to follow the mass media's instructions about throwing low offers, asking for the fridge, the food in the fridge and next week's groceries.

Unfortunately, the mass media has created blanket statements about the real estate market, sending mixed messages about the uncertainty of lenders, foreclosures, home values and the list goes on.  So  what do you do when you're faced with an unrealistic buyer?  This is what we do:

1---KNOW YOUR MARKET BACKWARDS, FORWARD & UPSIDE DOWN (NO PUN INTENDED) Customers are relying on your personal experience and knowledge now more than ever.

2---Prepare your customers with market information.  Give them valid market information about active, pending and sold listings. Give them real numbers and figures they can see and understand in simple format. This is even more important if they are from out of state.  Most buyers coming into Florida think every house is a foreclosure.  Use resources from trusted websites and print media to assist.  Sometimes the information is market specific, other times it isn't.  If you know your market, you'll know what doesn't apply.

3---Educate your buyers in person, face-to-face and verbally convey the information so they understand the difference in values between listings, both active and sold. Allow them to ask specific questions. If you don't know the answer, be truthful and tell them you'll find out. Be sure they have this information before house hunting.

4---Explain the status of your market.....have your prices stabilized in certain neighborhoods, zip codes?  Make sure they understand that each neighborhood is not the same. For instance, in our area, places at the beach have sustained the market much better than those homes located 20 miles west of the coast.

5---Be honest.  Don't fudge reports or speak without confidence and truth about the market.  If you slip, you'll lose your creditability with the customer and loss of confidence could lose you the deal.

6---Be patient.  There is no urgency in the buyer's eyes and they want to exhaust every listing before making a decision.  Encourage them to trust you as to which houses are the best value and price. 

7---Create a business referral network of professionals you can lean on to assist you and your customers.  Make your referral network available to customers to rely upon if they need them.  Nothing better than having another professional at your fingertips to assist.  You can't be an expert at everything, but you can align yourself and stand out in the crowd with a team behind you.   Ask your mortgage or title folks for their input with customers who may have specific questions regarding lending restrictions, property title, etc.

8---Stay positive about the market, the transaction and real estate overall, but make no promises. We don't have a crystal ball and can only interpret what we know, not the future.

9---Use your own intuition about the buyer.  Pre-qualify them with your own guidelines as to whether they are worth your time to educate them.

10---If all else fails, fire them!  You don't have to work with someone who is unrealistic and unprepared.  Some people just refuse to believe the truth.  Your time is too valuable in this market.  Fire them and move on, you'll be happy you did.

If we've made it this far in this market, we can get to the other side!  Stay focused and keep your buyers out of the Kool Aid! 

Yes.  If you're in the market, buy now.  Why wait until prices and interest rates begin to rise. 

In third quarter of 2007, the National Association of Realtors reported that  Florida's housing sector in many markets continued to report high inventory levels of homes for sale, median prices edging down and sales activity levels that reflect the impact of mortgage disruptions and tighter lending standards.

Statewide, sales of single-family existing homes totaled 31,910 during the three-month period, a decrease of 29 percent compared to 44,776 homes sold during the same time a year earlier, according to the Florida Association of Realtors® (FAR).  Further, existing-home median sales prices have slid from $246,000 to $232,100 over the past year. 

Buy why the market is down.  Its a risk to assume that it will continue on the downward slide.  Take advantage of maxmizing your biggest investment!

For the latest real estate news, visit our home page at www.buyorsellwithjenandbob.com.