Real Estate Agent and Trainer, Robert Rico, discusses 5 things to consider when guiding your client towards their big purchase in 2018. Do you want to see more video blogs? Subscribe here!
Do you know someone looking to buy a home in 2018? As we already know about real estate in general, the median of home prices tend to increase with each year. Following this trend, we predict that prices will most likely rise, which means it will be a seller’s market. Nonetheless, we have compiled a list of 5 ways to prepare your client before they buy their home in 2018.
- Are their finances in order?
When it comes to purchasing a home, there are many costs associated with the transaction.
Here are just a few:
- Closing Costs – loan fees, appraisal fees, title searches, title insurance, taxes, credit report charges, etc.
- Moving Costs – movers and moving truck, supplies, and house cleaning
- Down Payment – 20% is the standard to avoid PMI (private mortgage insurance)
To be great agent, it is your professional responsibility to keep your buyers completely aware of all the associated costs that lie ahead of them before they become a homeowner. Make sure to check with your client and ensure all of their finances are in order before they even consider to purchase in 2018.
With mortgage interest rates as low as they are today, it is very unlikely that your prospective buyer will be looking to buy a home on a cash deal.
That being said, if they have the means to pay cash for a home, there are situations when buying outright is a great option.
But in the interest of interest rates and the average buyer, it is imperative to keep a careful watch on the fluctuating mortgage rates. Even a difference of 0.5% can make a BIG difference when you consider a 15yr, 30yr or even 40yr loan term.
In order to stay up-to-date with local mortgage rates, you can reference many trusted trusted sources online, in addition to consulting with professional lenders (which brings us to our next point).
Once you and your client feel comfortable with the first two steps that were mentioned above, you will then begin the process of finding them a knowledgeable and trusted lender.
Bear in mind, you don’t want to find any average lender for your client. The idea is to refer them to a true professional advisor! In other words, find a lender who not only can offer a respectable offer, but someone who can also provide valuable insights of the market and other key factors.
Being able to successfully streamline these relationships will help your client feel comfortable in their purchase, and will also reflect your professionalism.
Getting your buyer Pre-Approved is potentially the MOST important part of preparing your client for their near-future purchase.
First things first, know the difference between Pre-Qualified vs Pre-Approved.
- Pre-Qualified – Verbal
- Pre-Approved – Verified Info (employment, taxes, credit check, paycheck stubs etc.)
Going through the proper process well in advance will ensure confidence that your buyer is entirely ready to purchase in 2018. If you and your client have progressed this far, then the future is looking incredibly bright.
Last but DEFINITELY not least – find an experienced real estate agent. This is where you come in!
You are probably wondering why you wouldn’t be the obvious choice when it comes to helping your prospective buyer find their home. And the truth is, you still very well could be.
You may be one of several other Real Estate agents that is being interviewed and at the end of the day, the most important people in a Real Estate transaction are your clients.
It’s your job to place them with an Agent that will best meet their needs. That might be YOU and if not, then referring them to the best possible agent can go a long way in this business. Check out our blog: How Does A Referral System Work in Real Estate?
Remember to stay positive, because your willingness to help may lead you to many other opportunities including referrals and other future purchases.