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Showing buyers the Selected Properties
By arlene | June 6, 2008
If you show a well-qualified buyer a house that is very similar to what he wants, you will have to do little more than:
- Indicate the degree to which the attributes of the property match his requirements and needs as determined in the qualifying process.
- Identify differences between what the property offers and what the prospective buyer wants. He will discover these anyway and they will become the subject of his objections. Be prepared to show how these differences can be overcome, minimized, or simply accepted if the prospective buyer takes into account how many of his important needs will be satisfied.
- Guide the prospective buyer towards a final decision to buy. Use closing techniques such as those discussed earlier to determine how far the buyer is from making a decision.
It is important to keep in mind the mental model of the sales process. If the buyer’s requirements and the characteristics of the property correlate closely, ask him to sign an offer to purchase.
The practice of showing houses in a haphazard way to unqualified prospects is a wasteful exercise. There may, however, be a number of valid reasons why you decide to show the prospect a house which you do not expect him to purchase.
Consider the following:
To conclude or improve your qualification of the prospective buyer. Sometimes you may not be certain about what the prospect is looking for. By showing him a few houses and obtaining his comments, you can get a better idea of what he has in mind.
To hold the client’s interest while you are looking for the right house for him. I once bought a property from a salesperson who did this very effectively. I explained my needs and desires to her fairly precisely. She responded by saying that she knew exactly what I wanted but neither she nor her competitors had such a property for sale at that moment — but she knew of such a property that might soon come onto the market. She was in fact already discussing its sale with the owner. She then asked me if she could nevertheless show me a property that she knew was not right for me but which would convince her that she understood my needs fully. As she predicted, the property had some of the characteristics for which I was looking, but was not a close match. Her approach, however, convinced me that I need not contact any other estate agents. She knew my requirements exactly, she knew her market intimately and was totally sincere in wanting to help me. Two months passed during which time she regularly contacted me to inform me of the properties which had come on the market, but which she did not even want to offer to me. Eventually she phoned me and said that my property was available. She showed me the property for five minutes, without any comment. We then left for the office to sign an offer to purchase.
When showing a house to a prospective buyer, keep the following guidelines in mind:
- Make arrangements with sellers ahead of time to show the prospective buyer a few carefully selected properties in which he may be interested.
- Listen attentively to the comments made by the prospective buyer.
- Be prepared not only to identify and discuss those attributes of the property and the neighbourhood which satisfy the prospective buyer’s needs, but also those which do not. Indicate how the latter can be overcome or minimized, or why they are acceptable in view of the generally good match between buyer expectations and the characteristics of the property.
- Develop a rapport with your prospective buyer.
- Show the prospective buyer through the house in a relaxed, informal manner.
- Allow the prospective buyer the opportunity of independently reviewing the features of the house, either by himself or with those who have accompanied him.
Obtaining the offer to purchase
If a relatively close fit has been achieved between the attributes of the property and the needs and requirements of the prospective buyer, he will usually give guarded indications of interest and willingness to buy. He will most likely try not to look over-interested. Only infrequently will he admit to outright interest.
You must probe in a way similar to that used when endeavouring to obtain a mandate from the seller. For this purpose various closing techniques (some of which I have already referred to) can be used. As with the seller, you will also have to deal with and overcome the prospective buyer’s objections.
One of the greatest mistakes any salesperson can make when the buyer gives clear signals of his willingness to buy, is not to ask him to make an offer to purchase. The way in which you will approach this question will always depend on the kind of person you are dealing with, the kind of person you are, the rapport established and other factors relevant to the particular situation. What is important, is that you obtain his confirmation.
When the buyer affirms his willingness to purchase, I suggest the following approach:
- Explain the price and sales terms which the seller is offering.
- Explain that, if he makes an offer to purchase under these terms and conditions, the seller is likely to accept the offer to purchase, which, upon signature by the seller, will become a legally binding sales agreement.
- If he is dissatisfied with the price and/or terms of sale, identify the differences between him and the seller and discuss these with him in a way similar to the approach suggested earlier for negotiating the offer to purchase with the seller.
- When the prospective buyer decides finally on the price and sales terms acceptable to him, draw up the offer to purchase. Tell the prospective buyer that his offer will either be accepted or rejected by the seller, or that the latter may make a counteroffer.
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