The following fictitious scenario involving buyers of real estate is provided for Realtors to consider. How you would handle the following situation.
The Initial Meeting
You are meeting buyer clients from New York City for the first time. He will be commuting to Manhattan and she is a part-time interior decorator. They have two children, 8 and 10 years old that probably will not go to private schools. Parents emphatically state that they want to be in the town’s “best elementary school!” It is January and they would like to close by June, sooner if the house needs work. As a result of talking with friends, they are considering Darien, New Cannaan and Rowayton, Connecticut. They would love to buy a historic home but don’t want to invest in a home with a major amount of deferred maintenance. They want to stay in the $1.8M price range. Condition needs to be considered as the more money that they spend on the house, the less money they will have to spend on aesthetic changes and repairs.
1. What other information regarding their home needs and personal situation would you want to know?
Establishing Parameters and the Buyers Needs
After your meeting you take them to see a few properties and learn that they have been looking “on and off” for a year. Two other important things to consider.
- They informed you, while you were showing them homes, that they are negotiating an offer on a “direct purchase” that they saw in the newspaper. The home is in Darien in the area of the high school and the Holmes School District.
- You neglected to have them sign a buyer agency agreement.
2. What are the first things that you should do considering the two bullet points above?
Writing an Offer and Communicating With the Listing Broker
After a number of viewings on various properties, the buyers have found a home that really “speaks to them” and in many ways would work better for them then the direct purchase. They are ready to make an offer. The location and charm has seduced them and, although the house is not an antique, it needs maintenance and perhaps to be expanded. It is listed at its original price of $1.9M and has been on the market for 90 days. They want to offer $1.6M.
3. What advice would you give them regarding their offering price?
4. Who is responsible for investigating the expansion and refurbishing possibilities at town hall?
5. What are some good questions to ask the listing agent prior to presenting your offer in an effort to understand the seller’s mind set regarding motivation, price and timing?
6. What is the most advantageous way in which to present your client profile? i.e., details of their circumstances incl. family size, motivation, timing, finances, etc. to the listing agent?
7. What can you say to magnanimously establish control with the listing agent and to best position your client’s “less than perfect offer?”
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