When you put your home on the market, you are bound to meet at least three of the following five types of buyers. Today, we will look at the pros and cons of each buyer and how to respond to them so that we can sell our homes better.
1. Cash buyer
These are buyers who want to purchase a house with full cash. It's a bit tricky, perhaps because of the medal that says you can buy a house with cash. Well, it is true that there are many advantages because there is no fear of breaking when a deal is made, and closing can be done quickly.
However, please remember this part. Whether a cash buyer or a mortgage buyer, the amount the seller receives at closing is the same. In other words, a cash buyer is a badge for the buyer, but it is of no help to the seller. So don't be too wary if cash buyers are expecting too much from an offer that's too low in price. It is recommended that you boldly say to your agent, "The money I receive later is the same, but what's so special about it?" and negotiate more confidently.
2. Low down payment buyers
They are the opposite of cash buyers. These are people who want to buy a home with a mortgage loan with more demanding conditions, such as an FHA loan, but with a low down payment. When selling a house to these people, FHA, etc. may inspect the house additionally, and in some cases, you may need to subsidize credit due to the financial problems of the buyers.
However, these people are well aware that they cause additional inconvenience to sellers. Therefore, more aggressive negotiations are possible from the seller's point of view.
3. Buyers sending buyer’s letters
If you receive a lot of offers because your home is good value for money, buyers often send offers along with a thoughtful letter with a picture of your family or pet. These are offers that will warm your heart when you read them.
However, then the fuzzy emotions will not help your finance. In other words, selling a house is a business. Don't forget that the final amount you take is the most important, and we recommend that you judge rationally rather than emotionally.
**To the buyers who send letters, not all letters make the seller's heart warm. Occasionally, there are sellers who feel bad after receiving a letter. That said, sending a buyer letter is a double-edged sword. We encourage you to think carefully and act accordingly.
4. Window shopper
These buyers are people who one day want to live in the kind of home you are selling. They go to all the open houses around them, but when they have to take full-scale action to buy a house, they do nothing.
Or sometimes you put in a really low offer and say “just in case…” These are the people who poke with a heart.
In these cases, when the moment for more serious negotiations arrives, there are many cases where they simply withdraw their feet. Because it's not serious.
Therefore, if you see signs of this, ask the realtor you work with for information such as ‘how many buyers have seen houses’, ‘when will you move in and why that time is important’. If the answer is not clear, it may be better to boldly search for other buyers.
5. Deal hunters
When a house has been on the market for a long time, these buyers come along. These are people who look at what's wrong with the house, point out that part, and try to make a deal. Usually, when you receive an offer from such a buyer, you will be offended.
Therefore, even in order to avoid these buyers, the price of the house should be set according to market conditions so that it can be sold quickly. Also, be careful when writing your disclosure.
If you have any additional questions about today's article, please feel free to contact us. See you next time with a more helpful article.
