I have been on more first dates than most people. While I am the last person who you will ever hear boasting about anything, breaking the ice is a skill I excel at. Because of this honed prowess, 99% if not 100% of those first dates kindle into successful relationships. Anyone can say outlandish things to get attention while others just mumble and avoid eye contact. I met my little sister’s new boyfriend a couple of weeks ago for the first time and I still couldn’t tell you what he was saying to me. The boy would take a bite of food every time I asked him something and then he would cover his mouth while he answered in a low volume. Nice kid, but a little soft and clearly nervous. Boy will he need to perk up if he is going to be able to handle my sister. She tells me things are going well, so that’s all I care about. Just as the priority for my first dates is to ensure they go well and move on to the next phase. My wife knows all about these first dates as I often give her a generalized report of how they go, if we will continue to see each other and if there is expected future success. Of course, what I am talking about here is the ever important initial meeting with new real estate clients.
The Mechanical
Time after time I am told by these new clients that no other Realtor has taken the time to sit with them and go over the purchase contract in the way that I do. But we don’t just talk about the purchase contract. This is an opportunity to build rapport and find common values. People want to work with people whom they know and trust. This is why, in according to NAR.com in 2023, 43% of buyers hired an agent who was recommended to them by a friend, neighbor, or relative, and 13% used an agent that they had worked with in the past to buy or sell a home. Next to teaching the client the contract and what to expect in next steps is to find out what they are really looking for. I can’t tell you how many times someone told me what they were looking for in a home then ended up buying something completely different. We so often look to each other for answers when we really need to be walking through the process to discover the answers.
Now, there are plenty of opportunities to discuss scenarios for better understanding while going section by section through the purchase contract. Contingencies make up a bulk of these scenarios, inspections & due diligence another bulk. When setting aside time to go over these things, it really does paint a picture in the client’s mind of how things work from a legal and procedural perspective. The mechanical, if you will. By the time this meeting is taking place, my client has already been pre-approved, if they are a buyer and need or want to finance part of the purchase. I direct my buyer clients to get that pre-approval done first for a few reasons:
1. There may be some credit cleanup that needs to be done such as paying off credit cards or maybe selling a vehicle.
2. The buyer may need or want to save up a little more money to obtain a specific loan program that suits them best.
3. A certain loan program giving a buyer, essentially, free money will be released a few months down the road.
4. So we all know what the budget for the purchase will be, thus giving an accurate price point to search for.
Carriage Without a Horse
Knowing your budget first is critical and necessary and prevents putting the carriage before the horse, or forgetting the horse altogether! Any Realtor who takes people out to look at homes without making sure they are pre-approved or have proof of funds is not showing care for that buying party. The agent is showing more attention to the possibility that they are closer, in their own minds, to earning a paycheck. That sounds mean, but think about it. What is best for the customer? Anyone who has kids will agree that doing what is right for the kid is not always what the kid wants. But good parents know better than to cave on short term pleasures. Realtor’s, in this analogy, are the parents and we need to guide and protect our clients. Good agents know this. Don’t set people up for failure and disappointment! This hurts the Realtors’ business and the industry as a whole. If that means these customers won’t want to work with an agent, then ask why? You may dig up that these people are not actually buyers or that maybe they are scared or nervous. Walk through that with them and see if there is anything that you can do to help.
Working with a lender before getting out to look at homes will strengthen a buyer’s position greatly because that buyer will know what their down payment will be, about what their closing costs will be, and pretty close to what their monthly payment will be after closing escrow, given the target purchase price bracket. When buyer’s are out looking at homes and find one to put on offer on, the lender can provide a customized pre-approval letter for that specific property and endorse the buyer to the seller’s agent if they call to check on the quality of that borrower. The readiness and organizational qualities of this position give a huge advantage to this buyer versus the other person who is willy-nilly looking at homes and then has to get pre-approved real quick when they “find something worth buying”. As you can tell, there is a lot of work to get pre-approved if you need it. But it is very much worth the effort for the serious buyer as once you are pre-approved, most of the financial work is complete. This gives peace of mind (largely underrated in society today as displayed by spikes in laziness). Know that there is a difference between pre-qualification, or pre-qual, and a pre-approval. Buyers want a pre-approval and a good Realtor can direct them to a reliable lender. Once a buyer has that pre-approval letter, that’s when the creative part starts to spark up.
The Creative
Once the work has been done to obtain a pro-approval letter, and then to understand the process once in contract, the creativity starts to flow. Imagination begins to blossom once a buyer can truly see that this is attainable for them. “Wow! I can afford to live there!?” The world lights up as an empowered buyer experiences renewed purpose. This momentum carries through to each outing to look at homes. Sometimes it is as easy as finding the right fit on the first outing and even the first showing! I had a client recently who fell in love with the second home we looked at. There were others that showed nicely, were bigger and maybe better located, but the second one we looked at was on this client’s mind for a couple of days leading up to our showing appointment. Because this buyer was prepared ahead of time, she had the ability to focus on what was important to her without anything impeding those values. And as a result, she got a deal! During our first date, we were able to discuss strategies for offers and we even set up a home search from the MLS, right there in my office. These meetings typically only take 1 hour to 90 minutes, but this one went 3 hours! I couldn’t believe it. There was just a lot to talk about, and we did spend a little time looking at listings and making sure the search was set up properly. I don’t usually do that part at the meeting, but it felt right at the time. Anyone who knows me knows that I can be long winded, but they also know my heart is in the right place in wanting to serve them the best I know how.
We are now in escrow and will be closing in about a month with plenty of time to spare for this client to prepare her new home and move in slowly from her existing residence. This is another important part that Realtors sometimes overlook. While we are pushing paper and making calls, our clients have real-life logistical challenges getting moved from one place to another. We cannot overlook this. All the great work we do for our clients can be severely tarnished by not wrapping it up with a bow at the end. Looking for potential loose ends and addressing specifics can make all the difference in making sure that first date and relationship building continues on and on. I tell my clients right up front that my goal is to do such a great job that they:
1. Leave me a great review online.
2. Tell people about my work and refer me when the subject of real estate comes up.
3. Sell with me when the time comes.
My wife is a hairdresser and I hear all the time about how grateful women are when they come to her and say that they have finally found a great hairdresser and that they can stop jumping around from one hairdresser to another. Stop jumping from one Realtor to another.
Hire Talent. Hire Josh Amolsch
Hire Talent. Hire Josh Amolsch
Josh Amolsch | Naples Luxury Real Estate | REALTOR®
People Over Profit | The Ministry of Naples Real Estate
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