Mastermind #18 September 28. Buyer’s Remorse and Sharing Financial Information
If its Wednesday it must be Mastermind. Thanks to all that showed up. In addition to the regulars I am happy to have some of the new agents attend as well. While they haven’t put time into the business to share their ‘war stories’, its good to know that they are taking advantage of others. So, if you missed todays meeting, you missed a good discussion on buyer’s remorse, getting your clients to open up about their financial situations and clients from out-of-town who are surprised by Toronto prices.
First up, the fabulous world of buyer’s remorse. I think it is safe to say that we have all had a case of it at least once in our lives. It can hit us over the purchase of a pair of pants or a home. Buyer’s remorse knows no bounds. One of the agents brought to the group a story of a young couple who visited an open house over the weekend. They walked in and fell in love with the property. They came back several hours later with their agent and eventually made a substantial offer which was accepted. The next day, a bad case of buyer’s remorse set in and the couple pulled out of the deal. We spent a good amount of time trying to come up with ways we can counter this pervasive malady. One agent suggested getting the couple back to look at the unit again. Sometimes picturing yourself in a home is all you need do stir up the right emotion. Another suggested showing them the comparable properties for sale (and sold), and another thought that educating them on the neighbourhood might do the trick. In the end there is nothing better than to have the buyers sleep on the decision. If there is a way out of a deal, a buyer will find one. That holds true for firm deals. Unless the market is really bad, your job, as an agent, is to negotiate a solution. Sometimes sellers take buyers to court and other times, they mutually release each other so that they can get on with their lives.
Occasionally you come across buyers who will not disclose any financial information about themselves. Fair enough, I suppose, as I am not willing to share my information with someone I just met. As agents however it puts us in a difficult position. The last thing we want to do is spend a lot of time with a client only to find out that they are not approved for the home you just spent days negotiating on. The solution to this dilemma is simple; get the client to a reputable mortgage professional that you trust. let the client know that you are not privy to their financial information but you will get a clear understanding on what their price threshold is from the broker. I would also like to mention that this is a good talking point when speaking to someone who is considering buying with a relative or friend. Sometimes we need a little separation between agent and client.
Finally, we talked a bit about working with clients that have come from other regions. Toronto prices can be a shock to some, so it is important to educate people on general values. It has happened to me before. A client lives in a 2000 sq ft loft in Montreal and pays $1500 per month. They are moving to Toronto and hope to find the same thing in Yorkville. Their expectations do not meet reality. Once again, the conversation goes right to qualifying clients properly. Your job will be infinitely easier if you pre-qualify potential clients first.
That’s all for today. Have a happy and successful week!