Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
In a market filled with buyer agency changes, compensation questions and fluctuating interest rates, is it any wonder that prospective buyers are stressed out by all the confusion? This article shares a simple, five-step process for reducing buyer stress that will not only lead to more sales now but more referrals in the future as well.
TAKE THE INMAN INTEL INDEX SURVEY FOR AUGUST
1. Bring clarity and confidence
When you bring a buyer clarity about the process and confidence that you will get them to the closing table, they move from a place of nervousness to excitement. The pathway to clarity and confidence is achieved through three aspects you can provide using the acronym ACE.
A – Assistance
A buyer’s understanding that you will be with them every step of the way, offering assistance and guidance throughout the process, breeds confidence. You can help them better understand how this assistance will look by sharing details about the resources you have available.
You should discuss your relationships with lenders, title companies, inspection companies, etc. Let them know how you will not only help them find the best service providers but guide them in choosing the highest quality programs and services available through these providers.
C – Communication
The most common complaint about real estate agents is their poor communication skills. This is an opportunity to turn what is normally a negative into a positive.
Give them consistent updates about the process from your first meeting until after closing. Be consistent, concise and thorough in your communication. By telling them upfront what they can expect from you and communicating throughout the process, lifelong client relationships can be built.
E – Experience
Buyers need to know the agent they are working with has experience in helping other buyers. Stats tell but stories sell, so one effective way to build a buyer’s confidence is to share the stories of how you’ve helped others. This is an example of subtly showing your experience through sharing a story:
Just like the two of you, I was working with a couple a few months ago who weren’t sure about the price of the home they could afford. The process we utilized for them — and that I will be suggesting for the two of you — involved me introducing them to a lender that many of my clients have used successfully in the past.
The lender requested all the needed financials from them, and after evaluating their situation, he provided them with the loan options they qualified for. At that point, I worked with them to evaluate the options. We looked at monthly payment options, closing costs and down payment options.
After evaluating their options, they chose the loan program that made the most sense for them. This gave them the confidence, just as it will you, that when they found their perfect home, they were able to write an offer with confidence that they would be approved for the loan and have no surprises throughout the loan process.
When you share stories of your experience, you bring much-needed clarity and confidence to the process (and your value).
2. Remove fears about signing a buyer agreement
Many buyers in this new post-NAR settlement environment are hesitant to sign a long-term buyer’s broker agreement right after meeting an agent. So how do we remove or mitigate these fears?
For this example, let’s imagine a couple coming into town over a weekend to see properties in an area for the first time. Before this trip, they’ve never met the agent who will be showing them properties. This is an example of how that conversation could go to remove these fears:
In case you haven’t heard, in order to see any homes listed in the MLS, a buyer must now sign a buyer agreement prior to seeing the home. I know this is our first meeting, and I would not want to sign a long-term agreement with someone I just met, so I imagine you feel the same way.
So, here’s my suggestion that I think helps both of us decide if we want to commit to working with each other long-term. This buyer’s broker agreement is limited, and it states I will represent you as your buyer’s agent on any homes we might see this weekend.
This way, our agreement to each other only applies to any homes I show you this weekend. If we don’t find the perfect home this weekend, then we can both decide if we want to commit to each other through a more formal, longer-term agreement. How does that sound?
By eliminating their fears, you’ve positioned yourself to build trust and the foundation for a lifelong client.
3. Answer questions before they ask them
Uncertainty leads to stress, and stress often comes from not having a complete grasp of a process or answers to questions you might have. One way to reduce the number of questions your prospective buyers might have is to prepare a frequently asked questions page that you can give them early in the process.
You may be wondering, “But how do I know what the most frequently asked questions prospective buyers have?” This is where ChatGPT can really help. If you’re wanting to prepare this for your prospective buyers, this is a prompt you can use:
Act as an expert real estate copywriter and provide me with a frequently asked questions page with the questions and answers to the 20 most common questions prospective real estate buyers have about buying a home.
This simple step will streamline the process and answer many of the questions your prospective buyers have.
4. Show them, don’t just tell them
Most buyers won’t remember everything you discuss with them. This is where having a buyer brochure or premade buyer folder available can provide the buyer prospects with confidence in your ability to move them from wanting to buy a home to owning a home.
This brochure or folder should have specific items included, such as:
- A letter from you thanking them for the opportunity to earn their business
- An outline of your plan of action to find their ideal home, including the use of the MLS, utilizing your network of other agents to identify “coming soon” listings for them before other buyers, and your plan of action to uncover off-market opportunities for them
- Testimonials from other buyers you’ve worked with in the past
If you’re unsure about what these should look like, do a simple Google search for “real estate buyer brochure examples.” Utilize the examples or templates you find to build a buyer brochure that you will be proud to share with prospective buyers.
5. Tell them their next steps
Confidence comes from knowing what to expect next. Here are a few examples of how you can communicate their next steps and consistently build their confidence in you and the process:
- Now that we’ve completed our initial meeting, the next step is for me to introduce you to a lender who can help you get pre-approved for a loan.
- Now that you’ve been preapproved for your loan, and we know the price range of the home you’ll be looking for, let’s discuss neighborhoods that might fit your desires and price range.
- Now that we’ve identified your target neighborhoods, the next step is for me to send you an email with the homes currently for sale in these neighborhoods so we can choose the homes you’d like to see.
- Now that we’ve found a home you love, the next step is for me to prepare an offer for you to make on the home.
- Now that we are under contract, the next steps are for the lender to order an appraisal and for me to order a home inspection.
Focus on the buyer’s pressure points. Be attentive to their fears, and do everything in your power to give them confidence in you and their ability to buy a home. When you do this, transactions will run smoother and opportunities to help buyers will come more frequently.