Make Sure Your Clients Know Both Facts and Benefits
A common mistake made by agents is to identify an important fact without explaining what the direct benefit or direct impact has on buyers and sellers. A good rule of thumb to use when sharing important information with your client is to always add, “What this means to you.” For example, market conditions:
Fact – are rapidly improving, inventory levels are down, and sales are up.
Benefit – What this means to you as a buyer is if you continue to wait you’re not going to get the best price and best selection.
By pointing out the specific benefit, you reinforce the impact it has on your client and create more compelling arguments. Then conversely, if you assume your clients already understand, you lose the impact or strength of that argument.
Seller Argument #16: Credit Conditions Close
Recent changes in government lending guidelines has tightened credit conditions and could have a significant impact on mortgage demand. Fanny Mae and Freddy Mac either own or securitize 95% of all new mortgage origination. Both agencies now require higher Fical scores. In addition, the FHA recently increased annual premium and, many banks have also recently implemented stricter lending standards. To make matters worse the uncertain regulatory environment caused by the government’s lack of consistency in new programs has further tightened credit conditions. The private side of the equation is no better. Banks could be significantly impacted by state attorney’s actions on banks foreclosure policies.
What this means to sellers is that fewer buyers can qualify for their property. As the demand drops, so do prices.
Given the many unresolved issues, the present difficult lending environment may last for years to come. It may be time for sellers to enjoy the emotional benefit of selling today.
Buyer Close #16: Uncertainty is Good
We are in mere unprecedented uncertain times. Economic uncertainty, financial uncertainty, real estate market uncertainty, price uncertainty, and even employment uncertainty have all combined to create an environment of great concern for sellers.
This window of opportunity may not last long. Buyers are strongly encouraged to buy before the market improves because of the deep concern this uncertainty has placed on sellers. Sellers are most likely to negotiate a great price right now. Once conditions improve and sellers again have hope, buyers are much less likely to negotiate a great price.