Have you ever heard the phrase “Buyers Are Liars?” Yes? Agents have used this term for as long as I have been Hawaii licensed. In fact, before I bought our first house back in the 70′s, that saying had been kicked around from both sides of the Atlantic Ocean to the Pacific Ocean. As a consumer of real estate , I was labeled that dreaded three letter word. Ouch!!! I never expected me of all people to be tagged as one of those!
Sometimes, buyers are not clear about where they are in the buying cycle. Buyers get nervous especially with large money investments being on the table. Timing is everything. All the buying conditions must be right.
As an agent, I have been left out & disappointed when a buyer just cannot make up their minds. I have to admit that it is an emotional letdown not to get a contract signed and open escrow. Buyers are smarter today with more knowledge. It is critical to understand what your buyer is trying to do when they come over to the Big island and meet with you.
Never assume anything today. Buyers coming to Hawaii & our Big Island have done their homework before the plane lands at Kona International. They have searched the net. They have read blogs, chatted and been online getting as much information as humanly possible. They are ready! Believe me they are not liars! They want deals & want to make the most of the present declining real estate Hawaii market.
Buyers need us, real estate professionals, to discover their needs and wants. Buyers also need our guidance. Patience is a must. It is my opinion that buyers may act that they know everything about purchasing real estate but may be out of practice or not familiar with Hawaii and the process. Therefore, be prepared.
Never Assume that Buyers…
1) Understand the local market. Some buyers believe what they hear. What they hear from other Realtors, from the media, and from friends and family. It is our job to educate them about our Big Island market, trends, location, climate, culture, taxes, etc. Educate!
2) Understand Agency. Some buyers do not understand agency. Some buyers are unaware of agency and do not understand the fiduciary duties of an agent. It is an agent’s job to educate potential buyers on the importance of agency before they begin their search.
3) Understand How We Get Paid. Some buyers think they have to pay a buyers agent. Some ask me what my fees are? Let buyers know that they do not pay you if the property is represented in the multiple listing service.
4) Understand Our Real Estate Contracts. Some buyers do not understand our contracts. Do not assume that they understand real estate terminology. It is an agent’s responsibility to explain the whole contract. Take the time to educate your client.
5) Understand the Purpose of a Home Inspection. Some buyers do not understand that the home inspection is a contingency to the contract if performed. This home inspection is for their protection.
6) Understand the Negotiation Process. Some buyers do not know how to negotiate and look to us to help them. Some do not understand this Big Island market as we real estate professionals do. The buyer make the final decision; it is our job to guide them.
7) Understand Their Legal Rights. Some buyers do not understand the legal aspect to real estate transactions. I recommend that they hire a real estate attorney. Leave the legal advice to the professionals.
8) Understand the Loan Process. Somebuyers have never purchased a 2nd home or vacation investment property. The loan process in Hawaii is different from the mainland. Buyers are from all parts of the world. Suggest a number of good mortgage companies who have worked with what type of property your buyer is purchasing. If property is bank owned or short sale, focus your buyer on companies that know what they are doing.
Real estate has transformed into an open exchange of information and data. Buyers need help in processing information to make their dreams of owning Hawaii real estate a realty.
Agents be aware not to point the finger at our buyers who may not be ready to buy today. Buyers are not liars. Maybe a bit more cautious or waiting longer to decide. The real estate industry over the past few years has had some highs and lows. Stability is returning.
Key is to educate. Prepare a buyer packet or buyer checklist for your client. Do your homework. Do your very best to represent your client and not have them go back to where they came with the words on their lips , “Agents Are Liars”