ometimes you need to kiss a few frogs to find a prince. Well, the same is true for selling a home. Although it usually takes longer to meet potential buyers face to face these daysif you do at allyour dealings and various interactions may ultimately make you feel a certainintimacywith these would-be owners perhaps even more than youd like.
It pays, literally, to know what kind of person lurks behind the offer. Soallow us to introduce you to the kinds of buyersyoull encounter and how best to deal with them for optimumresults!
Type 1:The all-cashshowoff
All-cash buyersmay seem cockyunderstandably. With no worries of financing falling through, this buyer means business and can even askfor ashorterescrow periodto seal the deal.
The downside?You may have to be ready to beflexible, suggestsRobert VinsonofVinson Real Estate GroupinLos Angeles, CA. Translation: An all-cash buyer will probably aim for a lower offer, or may have specificcontingenciesin mind (e.g., youve got tofix that roofnow)or else they walk.
But heres the thing to remember: The promise of cold, hard cash is more of a bragging point for a buyer than a financial benefit to you, the seller. So be prepared to drop a pushy all-cash buyer if their demands become too outrageous.
The seller receives their net proceeds in cash regardless of how the buyer pays, notesJoseph Montemarano,a Realtor with the Partners Trust in Los Angeles. So a well-qualified buyer getting a loan is as good as cash.
Type 2:The scrappyunderdog
These buyers are the opposite of the all-cash buyer: They have little availablecashfor a down payment.
Buyers withFHA loanscan fall into this category, which can sometimes be rough on sellers since FHA loans have stricter home qualifying requirements. Additionally, the more work a buyer needs to finance the property, the more work a seller might need to do as welllike contributing toclosing costs.
The good news? These buyers usually know theyre a headache. As a result, they should be more flexible toyourneeds. You could ask for a later move-out date or for them to require fewer repairs be completed prior to purchase. And if their bank wont cover enough, Vinson says another option is a carry-back loan. This is where a home seller takes out a second mortgage and acts as a bank for the buyer in order to cover the financing gap.
If theyre almost there but they need that extra bit, Id consider something like that, says Vinson. Additionally, you can make money on the interest rate. Just be sure to consult a financial adviser and lawyer first.
Type 3:The doe-eyed charity case
Thesebuyers are so in love with your home, [they] submit an offer accompanied by a sweet emotional letter with photosof their children or pets, Vinson explains.Theyre probably the mostrewardingbuyer out there.Only beware:Warm and fuzzy feelings dont pay the bills, so if their plea is not accompanied by an equally heartfelt (akalarge) offer, they could just beplaying your heartstrings with one hand and reserving afistful of cash in the other.
Work with them, but prioritize your bottom line, Vinson advises. This is still a business transaction, so keep your priorities straight and dont get snowed under by a blizzard of emotionsat your own expense.
Type 4:Thewindow shopper
These buyers dream of owning a homesome day. They gallivantaround town, swooning at every open house,butflake when it comes to sealing the deal.They might even pose ashard negotiators [with] lowball offers, saysRen Smithof Partners Trust inMalibu, CA.
However, the reality is they just arent all that serious about buying a home. If you sense this is whats going on, have your agent determine if theyre looking at multiple properties and find out just how soon theyre looking to move in. The more properties theyre looking at and the more wishy-washy the answer, the more likely you should cut your losses rather than waste your time.
Type 5: Thecoyote
If your property hasgone stale on the market, you might start seeing this type of buyer sniffing around.
They want to see if theres a [literal] crack in the foundation, something thats kept it on the market for too long, Vinson says. But dont get intimidatedjust be honest. Be extra careful todisclose everything, he says. Work with your agent to see what concessions need to be made, and if the price youre asking is rightchances are if it hasnt sold for a while, you might need to come down a bit.
On the other hand, youll need to suss out if this buyer is aproperty flippersniffing for a deal. A quick and easy way to do this is to Google their name with keywords such as real estate transfersyour local paper should have these readily available onlineto see if theyve been buying up property all over town.
When you are ready to buy or sell your next home, please call me, Marie McLaughlin 727-858-7569.
Source:https://www.realtor.com/advice/sell/types-of-home-buyers/
