Buyers You’re Likely to encounter When Selling Your Home
In a perfect world, every potential buyer who passes through your doors would be deadly serious about their offer and put no obstacles down in the selling process. But like almost every aspect of life, you’ll encounter a host of different characters in real estate. Even if it does take a while before you finally meet them face-to-face, it’s good to have an idea early on of what sort of buyer they are. Know your buyer and you’ll how best to deal with them. Here are the five most common you’ll encounter when selling your home.
1. The all-cash showoff
At first, an all-cash buyer can seem like a gift sent from heaven. The financial guarantee of an all-cash buyer certainly makes them a surer thing. Especially when other interested buyers only have a mortgage pre-qualification. But know that this can make them a little arrogant and more demanding with contingencies. They’re also more likely to make a lower offer. If that offer is too low or their demands become too much be willing to walk away. In the end, you’ll still get the same amount of net proceeds in cash regardless of how the buyer pays as long as the bank funds the loan.
2. The scrappy underdog
This is the opposite of the all-cash buyer, the buyer who has little money to put down. Most people with FHA loans fall into this category. This can present a problem for sellers as FHA loans have stricter home qualifications. Along with this, the more help a buyer needs financing the purchase, the more you might be required to give such as contributing to closing costs or potentially face the deal falling apart. Still, don’t allow that to make you overlook these types of buyers. They tend to be far more flexible with a seller’s needs.
3. The emotionally attached charity case
These are the buyers that fall in love with your home and include tear-inducing love letters with their offer. While these types of buyers can be the most heart-warming just know that love won’t pay the bills. The bottom line still matters so unless their offer price and financing also look good, be on your guard against anyone who tries to play to your emotions. You can always negotiate with these types of buyers. Maybe their holding out on some cash and using this as a tactic to get a better deal. Maybe their feelings are genuine, but the financing isn’t there. Focus on the bottom line and don’t get distracted.
4. The casual shopper
Every seller encounters this type. These are the people that regularly attend open houses, take up the agent’s time asking a lot of questions and sometimes make low-ball offers that they know will be rejected. They are buyers, but they’re just not committed buyers yet. They probably want to buy one day, but for now, all they can do is look, dream and take up your time. These people can be big time wasters so the sooner you can identify them the better. Find out if they’re looking at multiple properties and how soon their planning to move. The vaguer their answer, the more careful you should be of placing your faith in them.
5. The Coyote
These types of buyers are part market-enthusiast, part bargain hunter and part serious buyer. They’ll usually have been looking for the right property for some time and are just looking for a good deal before they pounce. They know what similar properties are going for and they’ll want to know about any potential defects in your home. Just be honest with them. If their serious about doing a deal and aren’t trying to underpay you, then they can be a winning card.
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