It’s important we establish our clients’ needs and wants so that we know how to best support them in the process of helping them reach the goal of purchasing a new home. If they are motivated and have a high sense of urgency to purchase, you would tailor your approach to best serve their needs in a specific manner. If they are looking to purchase a new home only if they find the perfect property, you would approach this process a little differently. Here is a list of questions to help you understand their needs and guide your client to ensure they have the best possible home buying experience: 

1. DO THEY NEED TO BUY A HOME OR IS THIS A WANT? 

This is important to establish at the beginning of a transactional real estate relationship for a few different reasons:

  1. It’s going to give you an idea of your client’s sense of urgency which will be an indication of how “serious” of a buyer they are 
  2. It could potentially affect the terms of your client’s offer and be something to consider when it comes to negotiation time
  3. It should affect your communication and how you approach the relationship with your client to make it the best experience possible for them (i.e. someone who is looking for a home in an area closer to their work to cut down on their commute vs. someone getting a divorce or someone who needs to downsize based on financial reasons). 

2. HOW QUICKLY DO THEY BELIEVE THEY MUST BE IN A NEW PROPERTY? 

Education and transparency are everything here and it’s a good idea to set the right expectations from the beginning. Perhaps your client is unfamiliar with buying and selling a new home and they’re unaware that sellers also have skin in the game in terms of determining when they’d like to close. Your client may think that a 30-day close is standard, but as of August 2020, the average time to close on a home purchase was 45 days according to  Ellie Mae Origination’s Insight Report. You’ll want to make sure your client is planning accordingly so they don’t find themselves in a sticky situation with their current living situation during the closing process. 

3. HOW PREPARED OR WILLING ARE THEY TO NEGOTIATE ON PRICE WITH A SELLER? 

Is your client firm in what their max budget is? Is what they are pre-approved for the absolute ceiling in terms of what they can spend, or do they have additional sources of income if they find their dream home and the seller is firm on price? This will give you a better idea of the listings you should be showing them as to make sure you’re setting the right expectations and setting them up for success in the end. 

4. WHAT IS THEIR PERCEPTION OF THE CURRENT MARKET CONDITIONS FOR PURCHASING A HOME? 

It’s no big secret that we’re in a “seller’s market”. It’s important to inform your client regarding the current market conditions, and that many homes are closing well above ask so that they’re prepared if it comes to that during the negotiation process. It can also force them to get an idea of what their true max budget is based on their wants in their next home. 

5. ARE THEY WILLING TO ACCEPT THE WORK NECESSARY TO OPERATE WITHIN THOSE CONDITIONS? 

The needs of your clients and making sure they have a positive experience should be your #1 priority as a good human, but also because your reputation in the industry depends on it. However, your time is extremely valuable, and you want to make sure that if you’re willing to put in the work, that they are as well! The worst thing that can happen is if you spend hours upon hours researching, negotiating, and showing them properties just to have them get discouraged if they don’t find their dream home right away, or if they lose out on an offer. 

6. IF YOU VIEW 50 PROPERTIES TOGETHER AND WRITE 15 OFFERS, DO YOU BELIEVE THEY CAN PERSEVERE? 

This goes back to education and transparency. Keep it to the facts. Show them what houses are currently selling for, the stats on inventory, and explain that in this market, it’s not uncommon for a property to receive multiple offers. This will help determine how motivated they are to find their next home. If they don’t believe they’d be able to persevere, as their trusted advisor, walk them through some other options they have to help build their real estate future like refinancing or remodeling, for example. 

7. IF YOU EARN THEIR TRUST, ARE THEY WILLING TO DO WHAT YOU ASK THEM TO DO TO PUT THEM IN THE POSITION TO BE AS SUCCESSFUL AS POSSIBLE? 

This could be the most important question to ask on the list. They have hired you to be their trusted advisor, and it’s important for them to understand that your relationship is not one sided. You need to make sure that you are meeting their wants and needs, but they also need to understand that you are the expert in your industry, and the relationship and/or transaction will not be successful if both sides are not working together.

The first meeting that you have with your client as they begin their journey in finding their next home can and will set the tone of the relationship. It’s a delicate balance of setting proper expectations while getting an idea of their current situation so that you can deliver them the best experience in their new adventure. For more tips on how to make the best of any client relationship or if you’re interested in joining CHR, give us a call or fill out a form here.