- Most buyers who are ready to buy a home want to take ownership in their buying experience. If a buyer gets qualified and then shows up to look at homes in a new car, he or she is not ready.
Owning a home can mean added commitment, pressure and emotional baggage for many buyers. With such a large financial investment at stake, not all buyers will actually end up closing on a deal.
How does a real estate agent know when a buyer is ready to buy, or when they may have cold feet? Below are three tips for each scenario.
Signs buyers are ready to buy
1. They are able to put some ‘skin in the game’
Here, skin in the game requires that a buyer has the ability to make a vested interest in the transaction.
There are great buyer programs today that make purchasing a home affordable.
Despite down payment or closing cost assistance programs, unexpected expenses still come up. A buyer who is ready to buy a home will be prepared for costs that may arise during negotiations.
These costs can include things such as an earnest money deposit, home inspection or a home appraisal.
2. They have realistic expectations, have done the research and are prepared
Most buyers who are ready to buy a home want to take ownership in their buying experience.
They may have done some research regarding areas of town they want to live in. A buyer who is ready to buy a home is also financially prepared. This means they have met with a lender, pre-qualified for a home loan and know their budget and limitations.
3. They do not have commitment issues
Ready buyers understand the value in having their own agent representation and will be willing to commit to an agent they connect with to represent them throughout their transaction.
Signs buyers just aren’t ready
1. They lack motivation or respect
Does the buyer show up late to showing appointments? Does the buyer float in and out of the homebuying process? They might not be ready to pull the trigger.
Buying a home is an exciting time for most buyers. When a buyer does not regularly engage with their agent or doesn’t show respect for an agent’s time or schedule, they might not be ready to buy.
2. They have commitment issues
Most buyers who are ready to move forward with buying a home will understand the value of working with one agent to represent their interests. A buyer who is not ready to buy a home may struggle with making a commitment to exclusive representation.
3. Their actions show their head is elsewhere
A lender may give buyers a few action steps to complete so they can get pre-qualified. A buyer who is unwilling to follow through with the lender’s requirements may not be ready to take the next step toward a home purchase.
If a buyer gets qualified to buy a home and then shows up to look at homes in a new car, he or she is not ready.
Whether a buyer is a first-timer or seasoned, a home purchase is a financial and emotional commitment.
But never say never. Buyers who aren’t ready today may very well reach that point someday.
Kellie Tinnin is the Career Development Director for ERA Sellers & Buyers Real Estate in Albuquerque, New Mexico. Follow Kellie on Twitter @KellieTinnin.