As a North Carolina real estate broker, it’s your job to guide people through the homebuying process. In a competitive real estate market, that process can be particularly challenging for your buyer clients. You are there to help them make the right decisions so that they stand a fighting chance. Here are four things you can do to help homebuyers avoid common mistakes and successfully navigate a hot housing market.
1. Educate them about the market
Clients who move from more affordable North Carolina housing markets to higher-priced markets often do not understand the market. They expect to find comparable homes in size and budget, and they’re often disappointed when they don’t. Other clients don’t understand how quickly properties move. They believe they can take their time until they find their dream home.
Spend a significant amount of time early on educating your clients about the realities of a hot sellers’ market. Explain why it is the way it is and what strategies you can use to find them their ideal property.
2. Rein in their desperation
All too often, homebuyers make the mistake of acting out of desperation. In a competitive housing market, buyers need to be prepared to act quickly. However, when their desire to purchase a specific house—or just a house, in general—overrides their logic, they can make very poor decisions. They may overpay, commit to unreasonable closing deadlines, or waive inspections and appraisals.
Rein them in by explaining that other houses will become available. Remind them that they don’t need to blow their budget or forfeit their original buying strategy to find a home.
3. Advise them to move quickly
Properties move quickly in a hot sellers’ market. That’s why hesitation is one of the worst and most common homebuyer mistakes. Buyers who delay making an offer because they want more information, or because they think something better will come along, often miss out.
While buyers shouldn’t make too many concessions or act without thinking, advise your clients to move fast if they find a property that they love. Otherwise, they risk losing it to another bidder.
4. Urge buyers to set a spending limit
Overpaying is another common mistake in a hot real estate market. In an attempt to compete with other buyers, or simply because they have fallen head over heels, buyers may throw out their budget—and their common sense. This can cause them to spend too much money on a property. They may end up purchasing a home they ultimately can’t afford. Some buyers spend so much that they find themselves quickly underwater if the market tanks or even just dips a bit. A bad decision now can lead to a great deal of pain down the road.
Strongly urge your clients to set a maximum amount for what they are willing to spend. Advise them to take into account both their budget and comparables in the area. When they step out of their comfort zone, remind them why they set a limit to begin with.
Remember, this job is not all about collecting a commission at closing. It’s your responsibility as a respectable North Carolina real estate broker is to coach your clients and help them avoid common mistakes in a hot housing market. The decisions they make now may have a long-lasting impact, so take that responsibility seriously. Your clients will thank you for it.