Guiding buyers through the home buying process can be an art form. It's imperative to use one's position as an agent to guide clients through potential risks and common issues.
When going into buying a home there are a lot of mistakes that can be made by all parties involved. Professionals want to make sure that buyers are aware in order to best serve and streamline the process. While this list could go on - here are some of the most common mistakes to help buyers avoid.
Agents and loan officers should walk clients through all options. Having best interests at heart when it comes to making such a large purchase is key.
Starting the Process
First and foremost, it’s vital to help clients try to not get too attached to a specific home or neighborhood. Especially before clients figure out how much house they can afford. The reason being, besides the obvious of protecting feelings, is that the market moves so fast these days. This can be frustrating and discouraging if clients aren’t able to be flexible and open-minded. Being a buyers agent is made to be stressful if clients aren't realistic from the beginning.
No need to sour the experience before it begins! It's important for agents to set their expectations as well. A lot goes into being realistic and it starts with expectations. Don’t expect the process to be a one-stop shop. Remind clients about price ranges and guide them through looking. It’s incredibly important to be realistic about a budget. Nobody wants to be house-rich and cash-poor. While it’s more common than not, there’s not much worse than living in a home you can barely afford and reminiscing on an old lifestyle. A good agent can help their clients steer clear of this.
In the Middle
Work with your clients and a lender to ensure they put down the right amount for a down payment. This is imperative because they need to have reserves in savings and be realistic about their finances. As an agent, bidding wars can be a nightmare. Clients not putting enough down can either a) get continuously out bid by other offers or b) have an astronomical mortgage payment. A one time “ouch” payment is a lot easier to recover from than a monthly payment that cleans out client accounts and agents should advise this.
Agents are able to help clients also with a lender and escrow and mortgage team. It's important to work with a dedicated mortgage professional to look into any and all loan types and programs that may be available. Agents are also aware of loan programs for first-time home buyers in some professions, and several other variants out there. As the agent, you want to guide the client find what is best for them. So, what will give them the most bang for their buck? This is so important in large transactions that have lasting repercussions (30 year mortgage payments, anyone?).
Wrapping Things Up
Agents should also help their clients plan for the future! A kind and caring agent who goes the extra mile is more likely to get referrals. Tell clients that emergencies happen, both home related and not and there’s always vacations to take and life to enjoy. Remind clients that the home buying process shouldn’t rob them of their life (at least not for very long).
Agents need to be upfront about closing costs, etc. as well since first time buyers may not know. Preparing for closing costs, renovations, and repair costs should be a conversation when looking at properties. Not preparing for renovations and repair costs is a giant mistake when buying a home. Things break and need fixing, repainting, or replacing appliances -- and that list really doesn’t ever end. It’s important to factor these costs into a budget before closing on a home so that clients feel taken care of.
While every mistake is a learning opportunity and buying a home is almost always a great idea, keep these mistakes top of mind as you guide clients. Buying a home can be incredibly stressful and the more we can lessen that, the better the experience is for everyone involved which is the goal of a great agent.
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