Every successful agent representing buyers has had to deal with the frustration of buyers just “sitting on the fence.” After several years of having to deal with:
– Prices continuing to decline
– Overall real estate market uncertainty
– Unemployment issues
– Economic woes
These issues have caused many buyers to develop a “bad habit” of doing nothing. Even in markets where uncertainty has diminished, many buyers still continue to do nothing. So, what is missing? These buyers are refusing to buy unless there is a clear and present risk of losing something valuable to them if they don’t. Remember, “The risk of loss is far greater than the ecstasy from gain.”
In this situation, agents must create urgency by showing their buyers what they’re risking if they don’t buy now! By identifying a “window of opportunity”, the risk of loss can be magnified. Each window effectively places a short time-line on the how soon the buyer must make a decision before they will suffer the consequences of delaying their purchase.
Here are some great examples:
– Interest Rates Rising – When rates go up, the buyer may only qualify for a smaller home, thus having to settle for “less house” for the rest of their lives. Pointing this risk out can be very powerful. Show your buyers that their window of opportunity has already begun to close. If rates increase even slightly, they will experience a loss immediately. As interest rates go up, their window of opportunity closes and your buyer could qualify for less, or have to pay more. Either outcome is undesirable and will create pressure to make a decision now.
– Recapturing Lost Equity – This theory shows the buyer how they may benefit from a price over-correction. If prices in a healthy market typically increase 5% per year, and they are still below where they should be now, your buyer has an opportunity to possibly recapture equity that the seller lost. The window begins to close once appreciation greater than 5% is realized in any given year, and this is already happening in many areas.