Have you ever noticed that many of the top real estate agents in your area put a home on the market and have it sold in a few short weeks while most agents’ listings linger on the market for several months and almost all For Sale By Owner homes just don’t sell at all? If you’re looking for more tips, ugly houses has it for you.
All 3 are advertising in the same place, the same papers, and on the same internet sites like Craigslist.com and Kijiji.com. But top agent properties are selling, and others aren’t even getting showings… let alone offers!
These top agents have developed a technique and skill set that allows them to maintain a steady stream of qualified buyers for their listings. They get more traffic because of it, and that generates offers for their listings.
Their secret is simple! They’re patient and they know how to work the time-cycle of home buyers.
Simply put, home buyers don’t buy on a whim. It’s a long, drawn out process for them that usually lasts around 6 months… but can take as much as 2 years for some.
The process is divided into 3 major stages.
Stage 1. DREAMER Buyers (100% of buyer leads)
This is the crowd that makes up most open house visitors, calls the most on real estate ads, and visits the show homes out there more. They usually aren’t pre-qualified with a lender, and they don’t really know what they’re looking for. You’ll identify them when they say “we’re just in the early stages”. They don’t know what kind of a home they will buy, and that’s the question they’re trying to answer.
Stage 2. GATHERING INFORMATION Buyers (50% of buyer leads)
These are the people who know that they’re going to buy, and they know what they’re going to buy. They’ve probably been to the bank to get approved, but there’s something stopping them from making that buying decision. Usually it’s a lack of market knowledge; they aren’t sure how to actually buy a home and they haven’t developed the knowledge and skills to identify good value in a particular home. But they definitely don’t have a time frame for their purchase.
Stage 3. RIGHT NOW Buyers (10% of buyer leads)
These are the gems. They know what they want, they’re approved to buy it, they can identify value when they see it, and they have a deadline to buy. If they walk into the right house… they’re going to buy it.
Most Realtors and almost all For Sale By Owner sellers are forced to work with the RIGHT NOW buyers, the ones who want a home this week or this month and aren’t already working with another Realtor. It’s this limited exposure to the buyers market that puts a damper on the sale of the home… fewer buyers!
The problem is that almost all For Sale By Owner sellers, and most agents as well, “write-off” people who are not ready to buy right now or in the near future. These sellers want to sell now and aren’t interested in a buyer who doesn’t want to buy now. So they keep advertising, keep marketing, and keep sitting open houses. This eliminates about 90% of the buyer inquiries that they get.
But when a Realtor understands that about 50% of the buyer inquiries will buy some day, and the agent develops a system to be there when those buyers are ready… they become so much more effective as an agent. They’re able to grab that buyer sooner, establish a relationship with them, and control their home buying process. This gives the agent the benefit of having a strong supply of buyers for their listings; while eliminating that buyer as a possible buyer for the For Sale By Owner and the other agents’ listings. When that buyer graduates from “GATHERING INFORMATION” to “RIGHT NOW”; the agent is already in place.