Creating Buyer Urgency

These are notes from a session at Keller Williams Family Reunion on February 24, 2009. The subject is buyer urgency in a buyer's market - where the number of properties for sale exceeds the number of buyers ready to buy.

1. There is a story at TaleofTwoMarkets.com that might be worth looking at when talking to buyers about the reality of a buyer's market. The fact is that - at least in today's market - there really are two separate markets. In one of them, 80% of the homes are overpriced. This is a sad state of affairs for sellers, finding themselves competing with distressed sales. But what it means is that there is demand for the 20% that are priced UNDER market.

2. Holding open house is a good way to meet buyers who are looking - though not every looker is a buyer. Inviting neighbors - by mailer or door knocking - is a good way to lead to a potential buyer. But a house that is priced under market will likely sell so fast that there won't be time to hold an open house.

3. In a buyer's market, first-time buyers may benefit from a seminar geared just for them. If you know - or are - a first-time buyer and are interested, give me a call and I'll set something up. 623.640.1219.

4. In a buyer consultation, the agent and the buyer need to explore what a "deal" looks like. It may not be the same to the buyer as to the agent - so get on the same page.

5. You can't blame a buyer for waiting for house prices to drop - but it is NOT FAIR to the buyer not to challenge that way of thinking. The fact is that nobody knows where house prices are going, or what houses will be on the market or what their condition will be. The person who can predict the b ottom is either a psychic or a liar. What we do know is that interest rates are the lowest they've been in 35 years - and a one point adjustment equals thousands of dollars in home price. If a buyer plans on being in the house for several years, buy now.

6. Buyer's remorse is normal - it is abnormal not to have second thoughts about one of the biggest purchases of your life. The trick is to keep your eyes on the prize. What motivates you to buy. How bad will you feel if somebody else buys "your" house?