8 Questions Real Estate Brokers Should Ask Their Clients
Eight Questions Real Estate Brokers Should Ask Their Clients
7/28/2016
While clients tend to ask questions, there are also
significant queries brokers must ask to ensure they provide the best service
possible
Real estate brokers, especially new ones, are often eager to take on
every prospect that comes along. Although the enthusiasm is commendable, it is
important not to get ahead of one’s self, and assume that getting a potential
client’s business equates to an actual transaction.
Just as it is important for buyers or sellers to ask as many relevant
questions as they can before proceeding with any real estate transaction, it is
equally important for brokers to make inquiries, if only to ensure that
business can be done right, if it’s to be done at all.
Successful brokers do not waste time, both their own and their clients’,
and knowing where both parties stand as they embark on a business relationship
helps keep it that way.
Photo via Shutterstock
1. “Are you working
with another broker?”
It is not unheard of for clients to call other brokers when they are
already working with one. This can happen when clients get impatient, sometimes
even if they have only been waiting a few hours for feedback.
Granted, most clients are not real estate experts, and it is likely that
they do not have the best appreciation of client–broker agreements. Still, it
is best not to take on a client who has committed to work with someone else. At
best, you will be stepping on the toes of an industry colleague. Or worse, you
may be enabling a client to violate a contractual agreement that in some way
may also make you liable.
2. “Why is now the
ideal time to buy (or sell) for you?”
Asking this question gives you some insight into a client’s situation,
particularly their motivations for buying or selling. Some seek the services of
a broker long before they can actually buy and sell, while others only contact
one at the last minute. Asking about timing lets a broker know how long they
can expect to work before closing a sale. Furthermore, knowing your client’s
motivations tends to make deals easier. A client who has recently gotten
married or is beginning to expand his or her family will be far more motivated
to close on a home than a buyer who is looking for an investment opportunity or
a mere change of scene.
3. “What are your
needs vs. your desires when buying and selling property?”
Brokers should have clients establish a list of “musts” and “wants” in
relation to their buying and selling of property, and help them understand that
it is likely that some compromises may have to be made.
This particularly applies to what buyers want or need, and which of
these aspects they are willing to forgo in the event that the price is too high
to meet all their preferences. In terms of sellers, asking this question is
helpful in order to gauge how open they are to negotiation, and if they are
willing to change the asking price in an effort to sell sooner.
4. “What are your
expectations?”
Most, if not all, clients need to be given information about real estate
in order to reconcile their views with the facts, and this is the main reason
why they hire a broker in the first place. Asking about expectations with
regard to everything (e.g. budget, state of the market, inventory in their
preferred area, processing times) helps determine what aspects to inform
clients about most.
Knowing clients’ expectations and establishing realistic benchmarks also
saves brokers the trouble of showing properties that are out of the buyer’s
price range, and gives them an idea of what properties and locations to focus
on.
Photo via Shutterstock
5. “Are you
financially qualified?”
While a seemingly crass inquiry, asking about a client’s financial
capacity is much more than just about a broker’s bottom line. As previously mentioned,
time is of the essence when it comes to successful real estate transactions,
and asking this question is one of the better ways to separate the window
shoppers from the serious buyers and sellers.
If you are working with a buyer who has not been pre-approved for a
loan, knowing their financial capacity puts a broker in a better position to
direct them to a trusted lender, which will help close the transaction quicker
when the time comes.
6. “In terms of
monthly mortgage payments, how much are you comfortable paying?”
As with the previous question, asking about how much a client is
comfortable paying in monthly mortgage payments is not about the broker’s
bottom line. Qualifying for a Php10 million loan does not equate to a
willingness to buy a Php10 million home. Many buyers will not understand how
much their monthly payments would be with that amount, only that the lender
deemed them qualified for it.
This is why it is important to ask buyers how much they can comfortably
afford each month, as it helps find options that are tailored to their size,
location, and design preferences, as well as what fits their finances now and
in the foreseeable future.
7. “Do you have an
understanding of the costs that come with buying property?”
Most buyers are aware that they need to come up with a down-payment.
Unfortunately, their knowledge of what they will need to pay for often ends
there, and most tend to be taken by surprise upon discovering the additional
costs associated with buying property, such as home loan interest, registration
fees, association dues, title transfer fees, and value added tax.
While there is little that can be done regarding fees and taxes, you can
help buyers to save money by guiding them towards a suitable home loan. Asking
about a client’s knowledge of additional costs is paramount; what a broker
explains to them is then taken into consideration when the client is looking
for a loan and ultimately, a property.
8. “Are you working
with or being advised by other financial professionals?”
Clients who have financial advisors can often be talked into investing
their money in stocks and bonds rather than property, and sometimes at the last
minute, to the chagrin of sellers and brokers. While clients would not really
hire a broker without the intent of acquiring property, there are plenty of
different factors that come into play in the home-buying process, so always be
ready by collecting as much information as possible.
Main image via Shutterstock
Source: http://expertbroker168.blogspot.com
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