Monthly Archives: May 2015
Sometimes in our business, it’s the most obvious things that are overlooked as the biggest opportunities for both Realtors and their clients. So many things in our industry are done only because that is what others do, or because what is believed as the right way, when in reality, so much of what is done in real estate now has become the absolute worst and in many cases the laziest ways of doing things. In this post, I plan to address one of the most ridiculous assumptions and most common mistakes Real Estate agents are making and how it could be hurting their clients.
Let’s deal with some reality for a second… MOST buyers are moving from somewhere verses buying as an investment/rental, and the best qualified and most motivated buyers are those that are selling a home to either move up or move down from their current home. Yet, in our industry, the “contingent” buyer is the LAST buyer that many real estate agents would advise their clients to accept an offer from and frankly the term has become almost tabu. The overwhelming common belief is that a “contingent buyer” is the most risky. Even if the buyer/sellers current home is in escrow, many real estate agents will advise their sellers to take the non-contingent buyer even when they are going to pay CASH upon the closing of their home. This is a scenario that has perplexed me for years. I’ve preached a million times about what a ridiculous practice this is. This practice and belief is so deeply ingrained into real estate agents in our industry that regardless of the common sense and logic behind it, so many continue to push away these great buyers sending them back home discouraged and often causing them to just give up on the whole process.
Let’s analyze this for a minute. EVERY single buyer is “contingent” upon one thing or another. Whether it’s financing, inspections, appraisal, etc. So the thought that any buyer is a lower or higher risk than another because they have a home to sell/close is ridiculous. In reality, the highest risk buyer is the buyer with the lowest MOTIVATION! All things being equal, a buyer who NEEDS to buy verses WANTS to buy is the one who is most likely to do whatever it takes to close. But even better is that the buyer who NEEDS to buy is almost ALWAYS willing to pay more and overlook small issues like inspections/repairs, and they are committed to closing the escrow on time!
My contention and the reason for this post is that I would like to end the unfair pre-judgement of serious contingent buyers who simply have a home to sell or close since in reality, many of these buyers are not only good solid buyers, but the best buyers a seller could ask for in today’s market.
Now as promised in the headline of this post… A simple strategy to get more listings while helping sell your listings and do a great job for your sellers; JUST SIMPLY HANG A SIGN RIDER ON YOUR FOR SALE SIGN (AS WELL AS WRITE IN THE REMARKS IN THE MLS, “CONTINGENT OFFERS WELCOME”. This simple strategy will help prospective move up or move down home sellers to reach out to you and ask you about your offering. It will attract buyers (who have a home to sell) that have been turned down by many other sellers/agents to reach out to YOU to see your listing. Of course, you need to do your homework and make sure the buyers are qualified and they price their existing home within salable market value, but frankly that is the easy part.
REMEMBER… The biggest fear for any seller is their ability to find a place to move to once they sell their home. As Realtors, whenever we can provide a solution to that problem, everything else becomes secondary and so on. By offering your listings to contingent buyers, you help solve the problem and this will get you listings!
I’d even go so far as to become and signify on my marketing that I am a “Contingent Buyer Specialist”!
Now how many of you would be opposed to taking a new listing and selling them your listing, contingent? I doubt anyone.
Think about it!
Oh… And try sharing this strategy on your next listing presentation and you’ll look like a genius! 🙂
Thanks for listening,