What’s the Cost of Waiting? Flyers

"Rates hit 50-year-low!" Flyer and "Your Wait is Over" Flyer: Are your buyers waiting for the "bottom" of the market? If so, they may not recognize the significance of today's market and the opportunity presented by the current mortgage interest rates. Help them see the key role that rates should play in their decision to buy a home, even if they're among those who believe that home prices may decline further.

Sample dialogue: "You can see where rates are now compared to the past 30 years. Would you agree that someone getting a mortgage now has timed things just right? Have you thought about how an increase in rates could affect the amount you can afford to pay for a new home? I have a worksheet that can automatically compare a few scenarios and show you how much money you can save by purchasing in today's market."

Calculator

"Affordability Calculator": Use this worksheet to demonstrate how today's interest rates can save your buyers money compared to the higher payments that a rate increase of just 1% will bring, even if home prices fall - and especially if they rise. Let them know about the savings they'll experience monthly and the potential savings over the life of the loan.

Then, invite your clients to experiment! Let them explore the monthly payments and the savings comparisons using different scenarios. What if they made a larger down payment? What effect would a higher home price have?

Saving the calculator

You can save the worksheet to your computer so it's easily accessible.

1. Create a folder on your desktop or in your Documents called "Affordability Calculator"

2. Open the worksheet and click File / Save As

3. Find the Affordability Calculator folder you created and save the file there

Instructions for use

1. To use this calculator, enter the following information in the red fields:

2. After entering the information. click or use the "Tab" key to go to any other space on the worksheet.

3. Instantly, all the fields will update to show the savings your buyers will experience every month and over the full 30

years, simply by acting now!

4. Experiment! Invite your buyers to explore the monthly payments and the savings comparisons using different scenarios.

What if they made a larger down payment? What effect would a higher home price have?

Putting the Calculator on your webpage

You can put this interactive calculator on your website so people can see for themselves what the cost of waiting would be for them.

You have two ways you can put this on your website.

1. You can put the tool on your site as it appears below by Copy & Pasting the following HTML code into your website's code. If you are unsure how to do this, please contact your web master for assistance.

<iframe src="https://www.weichertone.com/weichertone/common/tools/calculator/affordcalc.aspx" frameborder="0" width="580px" height="540px"><p><a href="https://www.weichertone.com/weichertone/common/tools/calculator/affordcalc.aspx" target="_blank">Click here for the calculator</a></p></iframe>

2. If you would prefer to place a text link to the calculator, you can use the following URL:

https://www.weichertone.com/weichertone/common/tools/calculator/affordcalc.aspx

Tip: Buyers not planning to be in the house for 30 years? Multiply the monthly savings by the number of months they expect to be there, so for 5 years multiply the savings by 60. In Scenario 1 of the example shown here, the savings over 5 years would be $9,186.66 ($153.11 x 60). * This calculator is designed for comparing the savings on mortgages only with terms of 30 years

Additional Affordability

Tools

Help them See the Opportunity

In your conversations with buyers, use a visual that will help them see the real opportunity in today’s market. Draw the following on a blank piece of paper.

STATE: Home prices and rates have changed throughout the years.

1. Take a pen and put a dot on the green line to indicate where you think home prices are right now.

2. Put a dot on the blue line to indicate where you think mortgage rates are right now.

3. In tennis, it’s called the sweet spot. In real estate it’s called an unbelievable time to buy.

NOTE: Allow the buyers to draw the dot on the visual without any influence from you. Ask them how they will know when we’ve hit the bottom of the market. The answer is usually “when it starts going back up.” It’s a guessing game as to when you hit the bottom, but if the buyers see that prices and rates are low then they are in the buying zone right now. This is the time to act.

Communicate and Educate! Mortgage rates are low. Great opportunities for buyers are increasing. This is great news all around, so take the opportunity to communicate and educate. Speak with your past and current clients and prospects.

• Tell homebuyers who are on the fence that their dream home just became more affordable. For example, a buyer taking out a 30-year fixed rate loan now for $250,000 can save as much as $220 a month compared to one month ago.*

• Make a quick phone call or send an e-mail to your contacts to remind them that the current rates present a great opportunity for them to refinance their current mortgage or home equity line of credit.

• Invite your clients and prospects to meet with your office's Gold Services Manager to find out how they can take advantage of the historically low rates.

Here are some resources for you to use so you can communicate with your prospects and let them know about the opportunities.

“It’s Time to Take the Plunge” Flyer illustrates how homes just became more affordable for buyers. Print this flyer and send to your leads. Follow up with a phone call to discuss the opportunities in this market.

Myth vs. Reality: WFS Open House Flyer The “Myth vs. Reality” WFS Open House Flyer can help you dispel the myths out there in the market. Print out this flyer and have plenty on hand for your Open Houses so buyers can see that Weichert Financial Services is secure, stable and trusted. Introduce every buyer to your

Gold Services Manager today.

*See the attached flyer for complete details and disclaimers.

Create a Sense of Urgency Help your buyers see that opportunity in this market is fantastic. They need to be able to make a decision to take advantage of the best deals out there. When they see a house they love, they should be prepared to make an offer because homes that are priced right are still selling fast.

SHOW THEM . . .

Go into the MLS and pull properties that have sold in under 30 days in the target communities in which the buyers have expressed interest. As much as possible, match the sold properties to the criteria you discussed with your buyers.

Review with the buyers all the properties that have sold in under 30 days. and say, “Bob, Arlene: I’m sharing this information with you because you need to know that houses priced right in this town are selling. In fact, here are just a few that sold in under 30 days. [Review the MLS sheets with the buyers and point out the amenities, locations, and price point.] If you should find a house that really meets your needs, are you going to be ready to purchase it? That’s the frame of mind you need to be in so you can benefit from well-priced homes as these fortunate buyers did. When we go out to preview homes, bring your checkbook with you.”

Tip: As they look over each one, describe where in the neighborhood the properties are located, further demonstrating your knowledge and expertise as a Neighborhood Specialist.

Help them to BUY!

Buyers often feel they have time to make decisions. They may get locked into the idea that something better is just around the corner. There are a variety of reasons why buyers are hesitant or indecisive. As a sales professional, you can help your buyers through the process by being an objective guide as well as an emotional support who understands the roller coaster of feelings that can overwhelm them. Here’s an example:

Your buyer has just previewed her eighth property and this one seems to be “it.” You’ve read her body language and she seems positive – this house fits most of her needs. You begin the close . . . .

“So . . . do you love it?”

“I understand. I’ve worked with other customers who have felt the same way and we were able to work things through. You love this house. You’ve seen a number of houses so you can compare. Remember that agreement I gave you? . . . Now’s the time to fill in a number you’re comfortable with. I will then meet with the sellers to present that offer in person. That way I can tell them all about you and why they should accept your offer. Let’s go back to the office and get things rolling.”

Sometimes all that’s needed is for the buyers to see and know they’re in good hands. Other times, you may need to offer suggestions to help them see beyond the obstacle. Problem solve with them. Either way, you need to open the door to a discussion that helps the buyers see the best course of action is to make an offer.

Here’s some more dialogue to help get your buyers into the buying mindset:

• “I can see you’re excited about this house. Remember the agreement I gave you at our first meeting? Did you have a chance to review it? That’s fine, we’ll review it again back at the office. Now is the time to think through that form and discuss price. What would you offer on this house?”

• “So we’ve narrowed it down to two you really like . . . do you want to go back and see those two again to help you in your decision? They both look great and they’re in the location you want and we can offer the price you want. Let’s go back and see them today!”

There are consequences to passing up a house. When your buyers find a house they could live in, but hold back because they think something better will come along, it's helpful to point out that they may not find anything better and to let them know what can go wrong if they wait. Consider this dialogue:

• “Some of my clients who waited last year in hopes that the market would drop, are no longer able to get a mortgage due to tighter restrictions on mortgage approvals. They waited themselves out of a mortgage approval. I would hate to see that happen to you.”

• “Did you know that every 1% increase in mortgage rate results in less house you can afford? In some markets this means one less bathroom or one less bedroom. This is the perfect time to buy . . . plenty of choice, prices are great and mortgage rates are low.”

“Maybe . . . I need to think about it.” Your best approach is to listen carefully. Allow her to air any concerns or issues that may be in the way of making the “buy” decision. As you summarize her feelings and concerns, you acknowledge them.

Build Trust

• What’s most important to you in this move you’re making? (asking this question, DOESN’T presume it’s about bedrooms or bathrooms. Your customer could say anything about their situation that is top of mind and very important to them. For example, a good school system may be more important to the buyers than the type of property.)

• You mentioned that you’re interested in moving to ________________. Can you share with me why that town?

• Why are you moving?*

• Do you currently own a home?

• Will it be necessary to sell your current home to buy the next one?

• Is your current home on the market?

• If the buyers rent – when does your lease expire?

• What’s missing in your current home that you would like to have in your new home?

Tip: All these questions and more can be found in the Getting to Know you and Your Next Home brochure on www.WeichertOne.com, Weichert University.

*Ensure you’ve explained Agency during this discussion in order to ask this question.

When you can answer the questions below, you’re well on your way to building trust, building a great working relationship and deeply understanding your buyers. People start trusting when they feel listened to and understood. When you take the time to ask the buyers about what’s most important to them and STOP and really listen, you are communicating to them that you can be trusted.

Are they Serious?

How do you know if your buyers are serious about buying a home?

The expression, “timing is everything” applies in this situation. Find out WHEN they want to purchase and you can better determine if they will be taking action. Someone who’s interested in a summer home but feels there’s no rush – maybe in three years after they retire -- is not likely to take action near-term. This person can be a long-term lead that you keep in touch with from time to time.

Ask these questions to determine whether you have a “hot” lead, “warm” lead or longer-term lead:

Three Critical Time‐based Questions to Ask Every Buyer: 

1. How soon do you want to buy? 

2. How long have you been looking? 

3. If you found a home today, what would you do? 

 

Set the Stage

Conduct a Buyer Consultation with every buyer. Why? It’s simple. You want to sell them a house and the most efficient and effective way to do that is to prepare them to buy. Go to www.WeichertOne.com and get your copy of the Buyer Consultation. At the Buyer Consultation you have the opportunity to:

Buyer Consultation

Try these tips to help prepare the buyer to buy and to appropriately set the stage:

Hand the buyers the MLS sheets and Weichert Property Highlights sheets. “I’ve searched for a few properties that match your requirements. Let’s take a look at these and prioritize them so we have an even better idea of your preferences.”

Hand the buyers a sample contract and say, “I like to give this to all my buyers because whether this is your first home or fifth, I want you to have a preview of what you will be signing when you find the home you love and want to make an offer. This will give you some extra time to look it over and return with any questions for our next meeting. Does that make sense?”

As you discuss possibilities and buyers say “No” to certain properties, physically take the MLS sheet away and discard it. Helping buyers narrow their choices is guiding them to decision. Discuss the “why’s” behind their decisions to give you more helpful information. By removing their rejections you’re showing them you’re listening.

Give them information about the community, amenities, shops, etc. that will help them become more knowledgeable about the area they’re interested in.

Give them the Weichert Brochure, point out relevant sections and show them where they can keep notes on homes they preview with you so they can compare later.

• Build rapport • Uncover the buyers’ priorities, needs and wants • Set expectations and review the buying process • Demonstrate that NOW is a great time to buy • Introduce them to your Gold Services Manager (so they know

their purchasing power) • Show your value and what you can offer them

Take the LEAD!

Take the Lead! To be successful in sales, you need to ask the questions and take the lead. Often, buyers don’t know what to do next. As long as you lay out the track, they’ll follow it. When you take the lead and guide them, they’ll feel like they’re in the capable hands of an expert.

Start with . . .

“Could this be home? Can you see yourself in this house?”

When you get a positive response, it’s time to suggest writing up the offer and to let your buyers know the next steps. Think about this . . . when you’re with a professional, you expect that person to guide you and take you through the process. You would never dream of a physician responding to a question about whether or not you need surgery with “I don’t know . . . what do YOU think?” You’re the expert. You’re the professional. Lead your buyers through the process and they will feel more comfortable.

If they’re hesitant about what price to offer:

“That’s no problem. Let me do some research for you and prepare a Price Trend Analysis on this property. That will give you the information you need to make an appropriate decision on price. Will this be helpful to you?”

If they want to look at more houses:

“Why wait for more competition? If you can get a great home with a low monthly payment why not take advantage of this opportunity? Remember, when interest rates go up, that will increase your monthly payment amount. In turn, that reduces what you are comfortable spending so you may be forced to look in a lower price range, right?

If this house has what you’re looking for and the numbers work, maybe we should put an offer in to the sellers and see what they say.”

You are a guide. In your capable hands your customers feel more confident.

Try the “What if” technique

Get your buyers into a buying mindset by using the “What if” technique. If you find your buyers wanting to see more and more houses, you need to re-group. Choose one of the houses you know the buyer liked very much and try this dialogue:

“Before we go look at more houses . . . I want to make sure I have everything. Let’s just say this house you liked but weren’t absolutely in love with . . . this house here. IF this were THE one, what would you be willing to pay?”

This technique of “What if” helps get the buyer envisioning the purchase. It serves to bring the buyer into a mindset of buying. While this property may not be the one the buyer purchases, envisioning the deal and the price gets them closer to the buying decision itself. Here’s another example:

“What if we resolved the one issue you have with the house . . . Would you put an offer in if that magically disappeared?”

By discussing the “what if” of a situation, you open the discussion for options and problem solving. Sometimes what the buyers see as insurmountable is something you’ve handled in the past with no problems.

Help them Compare. Help them Decide.

Tip: If you don’t eliminate houses, your buyers will begin to get overwhelmed and confused. There will be too much to choose from and then no decision will occur. It’s a good idea to take away the brochures of houses your buyers have eliminated. Don’t clutter up their folder with houses they have already decided they won’t buy.

Help them Decide: Less successful sales associates offer three options to their customers: a yes, no or maybe. The goal is to get a decision. “Maybe” or “I’d like to think it over” is not a decision. It allows the buyer to put off the decision and results in wasting time. A “No” is actually preferable to a “Maybe” or “Let me think it over.”

When you’ve shown the buyer a sufficient number of properties that meet their criteria without having a “buy” decision, ask them a direct question. For example, “Based on your reaction and our discussions, it looks like you can narrow this down to a couple properties. Which one do you want to put in an offer for?” If they don’t make an offer, then steps need to be re-traced. Was something missed in uncovering needs and wants? Do they need to meet again with the Gold Services Manager to look at other financing options? Have the buyers changed their minds and decided to stay put? You must eliminate the “Maybe’s” and help your buyer come to a decision – yes or no – so that you don’t waste your time.

Try this dialogue:

“If you had to prioritize the homes we have seen to a 1, 2 and 3 position, where would this home be positioned?

Help your buyers narrow their focus, eliminate the “maybe’s” and get to making decisions. Try this dialogue:

“On a scale of 1 to 10 with 10 being ‘can we move in tomorrow,’ how would you rate this house . . . . That’s interesting. Tell me more about how you arrived at that rating.”

Here’s one more thought . . . every “no” you receive gets you one step closer to a “yes.” After all, sales is a numbers game. You have to ask for the business – a lot. The more you do, the more successful you will become.

Help them Compare: People shop by comparison. They need to see a few so they can feel comfortable that they’ve compared others to the one they’re going to buy and feel like it stands out as “the one.” It’s up to you to help your buyers prioritize to make the decision. So when you’re showing your buyers houses that meet their needs, evaluate the house to set the benchmark. Help your get buyers off the fence by asking:

“So . . . would you put this house in the final three? That is, if we were to narrow down everything you’ve seen today, does this house belong in the top three slots?”

Get them a GREAT Deal!

Follow these steps to ensure your buyers are well positioned in this market to get the best deal ever.

1. Learn everything about them and what they’re looking for – learn about their priorities, needs and wants.

2. Search the available inventory from your office, the MLS and networking with other brokers.

3. Work with the buyers to choose the ones to preview.

4. Ask the buyers to select the top 3 or 4 houses they can see themselves living in.

5. Guide them to be prepared to put in an offer on each of the properties and explain how you will work on their behalf: “You can put in an offer on your first choice at the offer price you’re most comfortable with. I will present that offer in person and let the seller know that you are ready to buy and that you’re prepared to put in an offer on your second choice should the seller not be willing to accept the offer. Can you see how this would give you the maximum leverage?”

Tip: Use the Price Trend Analysis to help your buyer come up with an appropriate offer price.

When your buyers say, “I want to take advantage of this market and get a great deal.”

Tell them, “That’s great. I know just the way to make that happen for you.”

Keep it POSITIVE!

You know how important it is to stay positive. Well, here’s a simple tip -- Pay attention to what you say. Often what we say translates to what we do. Instead of telling your colleague, “I’m off to show some houses this afternoon.” Say:

“I’m off to sell a house today!”

It may seem like a little thing. In fact, it’s very big. Your attitude, your mindset translates to the difference between showing houses and selling them. What you say, how you act, things you do become reality for those around you. You don’t get paid for showing houses. You get paid for selling them. Make sure your words align with your actions and beliefs. When you believe you are guiding your buyers to purchase a house they will love, then it will happen.

Remember, you’re a Dream Builder. You help make your customers’ dreams come true. Their dreams for a better quality of life, excellent schools for their children, warm and welcoming community in which to live are fulfilled every day because of your dedication, hard work and caring.

You are the Dream Builder. Your dedication helps customers realize possibilities they could otherwise only imagine.

Know Your Product!

Knowing your product is essential in helping buyers make a purchase. How well do you know your inventory? If you can say with confidence, “Yes!” to every question below, then you can consider yourself a true expert on your product. If you can’t say, “Yes!,” make a commitment to yourself today that you will become the expert on inventory so that you can be in the best position to sell homes. Expanding this thinking, you need to know properties AND the community. You can’t sell what you don’t know. In this case, knowledge is power.

Do you . . .

Attend caravan or house tour every week to see what’s new on the market?

Preview properties in advance of taking a buyer to see them?

Have a system to record notes and highlights from properties you’ve previewed so you can remember them going forward?

Weed out the properties that don’t meet your buyers’ needs?

Explain to your buyers how you arrived at selecting the properties for them?

Prioritize the homes, grouping the best three up front and explaining to your buyers how you’ve selected the ones that most closely match their criteria and price point and chose those to go visit first?

Know your market area very well, including where all the community features, parks, amenities, schools, houses of worship, shopping, etc. are located?

Give a “tour” of the town(s) as you’re traveling from one property to the other, pointing out the key features and amenities of the community?

Some sales associates behave as though there were an award for showing the greatest number of homes to a buyer. It’s actually the opposite. The fewer homes you show, the more selective you are in ensuring that you align what you show with what the buyer wants and needs. Showing a property that doesn’t line up with what the buyer wants can actually cause the buyer to distrust you, question your judgment and leave the impression that you haven’t listened to their needs or concerns.

The sales associate who can win a buyer over and have a buyer make a purchase on their first visit out is a sales professional who understands what the customer wants and has a thorough understanding of the properties in the market area of interest.

Try this dialogue:

“Based on what you shared with me, I’ve selected six properties that match your specific criteria and needs. I’m going to show you the best three first. These are the homes in terrific condition with the amenities you’re looking for. Plus, I’ve spoken to the Listing Agents and have ensured that the sellers can indeed close within the timeframe you gave me.”

“Remember, the houses we’re going to see are not mine so if you don’t like the house, I won’t be offended. Don’t tell the seller but DO tell me what you like and don’t like. This way, I can save you time by showing you only those properties that meet your needs.”

You are a guide. In your capable hands your customers feel more confident.