The conversation takes only a few minutes, but the reverberations can last your buyer’s lifetime…
As real estate expert Tom Iovenitti discusses in this video, by prequalifying your buyers, or at the least getting a clear picture of what they can afford (not just what they want), you’ll be better able to match them with the right home, and may even be able to get them into a better home than they thought!
I’m here today to talk to you about several things. One being with what goes on in a real estate transaction with some of your buyers. Now I know all of you sit in open houses and wait for that person to walk through, and try to entertain them with your smile. And I’m sure that works very well for most of you.
But what I’m here to ask you is, is do you qualify your buyers when they walk in? And what I’m saying by “qualifying” is, are you truly asking them, first of all, what the payment level they’re looking for in purchase of a home? Those that are buying cash don’t really have an issue with that, but I’d say that the majority of people that are buying today are looking for financing, and what you should do is find out what that comfort level might be, and realize that you might be able to find something better for them to fit that payment level with the down payment that they have. So you almost have to work the transaction backwards.
A lot of us just find out what it is that they’re looking for in price. We start transferring ourselves into MLSs and looking for all kinds of different properties in that price line. And then take them out quickly, throw them in the car, because we have somebody that needs to find something, and start showing them properties without even knowing what it is that their affordability might be. You might even find, by asking the qualifying question, that they can afford a lot more than what you’re looking for. So my suggestion is: before you start taking people out, putting them in cars and travelling them around, find out first of all how much money they have down and second of all, what would they like their payment to be. And then get them preapproved prior to putting them into an offer.
Thank you very much. This is Tom Iovenitti. Thanks for listening. Bye-bye.