Learning to understand your buyers will help you walk through the real estate transaction a little easier.
Because shelter is a basic need next to food and clothing, people will always look for homes in a seller’s or a buyer’s market. Different types of buyers have different motivations depending on the market.
The sales analogy used for the parties interested in purchasing a home is called a “buyer’s pool.” Some of the buyers have just jumped in, while others have been swimming around the pool for some time.
When you put your home on the market, there is an existing pool of buyers ready to see your home as soon as it comes on the market, those who are already looking. Depending on the type of property, price range, and condition, the pool of buyers is either large or small. By analyzing the most recent sales, you will be able to determine the size of your pool of buyers.
There are different types of buyers swimming in the same pool. It is important to note that not all buyers are looking for a home to live in; they may be looking for an investment.
The different types include:
- End buyers – people who will live in the home.
- Professional buyers – this group comprises real estate brokers, builders, speculators, investors, and developers.
In either group, end or professional buyers, you will find:
- Cash buyers – because cash is king, these buyers expect some flexibility in negotiating a sales price. Many sellers will consider negotiations when there is no mortgage contingency tied to the offer.
- Mortgage buyers – this is a larger group of buyers, given that the majority of people can not buy homes for cash. A pre-approved buyer will have started the process with their lender and received a commitment from them for a mortgage amount with specific terms and conditions that must be met.
You need to gain the buyer’s perspective before putting your home on the market. Seeing your property from the buyer’s eyes may be enlightening for you. In addition, it is helpful to visit other homes like yours to see what they offer and the sales price.
You have lovingly decorated and maintained your home over your ownership. Friends and family have probably given you their advice. However, when you are ready to sell your home, only one opinion matters: the buyers.
Let’s take a look at what end buyers want in a home. Homelight surveyed top agents to find out what their buyers preferred when looking at houses. The list includes:
- Neutral paint,
- Hard surface flooring, preferably hardwood.
- Updated kitchens.
- Updated bathrooms with a tub.
- Deck, patio, or other designated space for outdoor entertainment.
- Lower energy costs.
- Updated roof
- Usable, well-manicured lawn.
- Exterior curb appeal.
If you consider any updates to your home, kitchens and baths are usually a good investment.
Staging expert Barb Schwarz advises sellers, “the way you live in a home and the way you sell a home are two different things.” First, remove any clutter and depersonalize your home to allow the potential buyer to mentally move in while viewing your home. Then, with proper preparation and accurate pricing, you should not be inconvenienced with showings for long.