What Worries Real Estate Buyers – – do you know what your clients are worried about?

Written by Walter Boomsma, instructor. See his blog.

According to a recent study by Redfin, buyer’s worries have changed slightly. Of course, that makes sense because we all know the market changes constantly. Last year (2014) buyers were most worried about inventory. This year “prices” are in the number one spot. Actually, the worry seems to be more about prices rising and affordability becoming an issue.

Some will suggest that reflects an improving market with good news for sellers. Others will suggest that buyers are showing a lack of confidence in the general economy.

According to the survey of 3,500 buyers, the top five worries this year are:

  1. Prices (prices are rising or too high)
  2. Competition from other buyers
  3. Inventory (there aren’t enough houses to choose from)
  4. Selling my current home first
  5. Having enough for a downpayment

You might find it interesting to compare that with the top five worries last year. It will not take too much creativity to support your current opinion of the state of the market and the direction it’s taking. But you’ll have to rationalize some things. For example, the fourth worry of buyers last year was that mortgage rates might rise before they could buy–that didn’t make the list this year. Another concern last year that didn’t make the list for 2015 was “fatigue” — referring to buyers finding the process difficult and tiring.

Most know that all generalities are false. In this case, that’s especially true because “worries” are very personal. So while how those 3500 people felt is mildly interesting, real estate licensees should be much more focused on a much smaller number–the number of clients you are working with.

You want to know a lot about your client. Most of those things are basic and concrete. The questions you ask probably include things like, “What is your price range?” and “How many bedrooms?” and “How much land?”

Those are certainly important conversations. But why not ask “What are you worried about?” Some will say, “Nothing,” partly because they are overwhelmed with excitement and haven’t thought about the concerns. It might be tempting to accept that answer. But aren’t there some things a buyer should be worried about?

One of the saddest listings I ever took involved a couple in the middle of a divorce. The short version of their story was they visited Maine and fell in love with our great state. They spent the last few days of their vacation finding a real estate licensee and then a house. It was a very smooth and speedy transaction–their agent handled “everything” while they went home to pack. The realities started showing up after they were settled in their new home. One spouse was forced to return to their home state to find employment that wasn’t available in the vacation area they’d bought. The other found work, but it involved a long commute with resulting childcare and expense issues. Thus began the breakdown of the family. The home they purchased was not an “easy sell” so by the time they realized their mistake, the market was not in their favor.

A little “worrying” during the process might have made a world of difference in the outcome. Personally, I think the licensee who represented them in the purchase should have noticed there were some things they weren’t worried about and raised some of the issues they weren’t seeing.

Of course, licensees also find themselves representing worriers. Folks in the real estate business like to focus on “making it easy” and “getting to closing.” If that’s the case, remember that it’s easier to smooth the road if you locate the bumps and potholes. No matter how you cut it, a discussion of worries with clients (buyer or seller) just makes sense.

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Mr. Boomsma, Walter, or Professor Boomsma?

Written by Walter Boomsma, instructor. See his blog.

Husson UniversityWhen I sub at school, the kids are required to call me Mr. Boomsma. Most comply, although it’s not at all unusual for the kindergarteners to call me “Mrs. Boomsma.” The idea of a man teaching kindergarten is still a bit alien to most five-year olds.

You won’t have to call me “Professor Boomsma” but thanks to a collaboration between the Arthur Gary School of Real Estate and Husson University’s Center for Family Business, I’ll soon be teaching a Sales Agent Course at Husson that makes it possible for students to receive 3 hours of credit for a Business elective, PL 201 Real Estate Law, Paralegal elective or Open elective through Portfolio Assessment.

The course begins on May 27th, so you’ll need to act fast! You’ll find more information available on the Arthur Gary School of Real Estate website or by calling the school at 856-1712. To inquire about Portfolio Assessment to obtain credit for the course, please contact Marie Hansen, Dean of the College of Business, hansenm@husson.edu.

The course begins on Tuesday evening, May 27th from 6 PM until 9:30 PM, then meets for three weekends–Saturday and Sunday from 8 AM until 5 PM. The final exam takes place on Tuesday, June 17 from 6 PM until 9:30 PM. Students are required to attend at least 90% of the scheduled class hours and achieve a passing course grade of at least 75%  in order to qualify to take the required state exam prior to licensing.

The Sales Agent Course starting on May 27th is the regular/normal/usual course and should be taken by anyone interested in becoming licensed. It is not just for those seeking college credit. This is the usual course with an added option for college credit from Husson.