Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
i became an agent a year and a half ago. i didnt have alot of time at first to work on it as my full time jobs were extremely demanding.. i've now been released from all full time employment and have my real estate career to work with, which i'm excited to do..
my problems comes as i'm working for a friend.. he has no credit, so everything is riding on his gf's credit. pretty much in our city if you are looking under 100k, the property is going to need some work.. some part of the property is going to need repair. garage, bathroom tile, kitchen counters.. something.. so we've seen a handful of homes in the area, pretty much exhausted eveything that hits the market..
yesterday , duplex, rickety garage, small yard, outdated top to bottom.. $65k
today, duplex, better garage *not cinderblock unfortunatley*, way bigger yard, alot of updates and color coded tiling and cosmetics.. basement was a little moist b ut it has been outrageously hot here recently.. $80k.. 6DOM, as we finished our showing another agent was waiting to get in.. this thing is gunna go in no time..
every house its the same story "i like it, but we want to keep looking", word for word verbage.. they want the duplex for rental income and savings. if they wait 4 or 5months she's approved for more as some debt obligations will come off her credit report.. if they wait they'll have a higher mortgage price, but roughly the same income from the rentals, they wont be ahead as much as they think they'd be..
when i bought my own home there were things wrong with it, i knew that, i knew aswell id change them.. i had to settle.. how do i handle this?? i just feel like now its starting to be time wasted
Yep, this is a tough situation. This is obviously not a well qualified buyer and unfortunately you work just as hard (sometimes harder) for a client like this than a well qualified client. You have to ask yourself if it is worth it.
If you have no other clients, then perhaps you can fill your time with this client and make a few bucks. But you need to have a heart to heart talk and let them know they have seen the best and if they are serious they have to make a decision. If they want to wait, tell them to call you when they are ready.
Have them go ahead and get pre-approved for a mortgage. When they are told they have no chance of getting one (especially as a rental unit), the searching will come to an end.
Tell them that they need to save like crazy for the next 12-24 months, dinner out once a month and not three times a week (and perhaps get pay raises or second jobs) to improve their buying power. Position him with a good local lender who can show him (legitimately and not like the infomercials) how he can build and grow his credit score to an acceptable level. You will check in with them occasionally, send them market updates and statistics, and always be their agent. When they are ready, willing and able buyers, you will be there for them. If they follow this strategy, they will love you forever, write paragraphs of testimonials and most importantly refer people to you because you truly helped them and weren't in it for a quick buck. Then go out and replace them with ready, willing and able buyers or a salable listing and use your time productively. Remember, if you are in it for the long term, do the right things every day, you will succeed. If you start thinking about next week's bills and how you are going to meet expenses you will join the 80% that fail in their first two years. Keep reading this forum and others and network, network, network.
i sent my buddy a text earlier and asked their thoughts on the house.. he said they'd like to keep looking.. i told him to have the gf contact a lender for the pre-app and lets see where they come up at, the range they are in is a fix it up range.. im hoping this will help them understand what i've already re-itterated before.. i do have other leads i can work, but always need to generate more..
A text? So impersonal. You should actually talk on the phone to solve a touchy issue like this. You can't relay tone of voice, or emotion through a text.
If they are waiting to be able to get approved for a bigger loan, stop driving them around. Give them a printout of everything in their price range and let them drive around and look at neighborhoods and outsides of buildings.
Right now, they are studying the market to see what prices should be. They've already told you they aren't buying for 4-5 months.
They might not be buying anyway, since it is just the girlfriend who is using her credit and getting the duplex into her name. There's a good chance that the boyfriend is the one who wants the duplex, not his girlfriend, and she doesn't want to buy real estate for a guy with no commitments to her. (at least if she has any sense at all)
i sent my buddy a text earlier and asked their thoughts on the house.. he said they'd like to keep looking.. i told him to have the gf contact a lender for the pre-app and lets see where they come up at, the range they are in is a fix it up range.. im hoping this will help them understand what i've already re-itterated before.. i do have other leads i can work, but always need to generate more..
I wouldn't have done it through a text, but this is a savvy response. Put the ball in their court. You are not their financial counselor nor do you have a responsibility to create a capability which does not now, nor is likely to exist, in the near future.
If you have to, explain that this is business. You are friends with them, and that is fine, but this is a BUSINESS relationship. You have done what you can; move along.
I posted elsewhere about agents not being able to manage their clients. This is the classic place where you need to (nicely/subtly--at first) manage the relationship. Real Estate is odd in that you don't set the price, and don't get paid, until AFTER the deal is done. If they had to pay, say, 1% up front to engage your services, would they? Ask yourself that question any time you start to work with a new client. Are they really a paying client, or is it likely, given the circumstance, that you will never get paid from this relationship?
A text? So impersonal. You should actually talk on the phone to solve a touchy issue like this. You can't relay tone of voice, or emotion through a text.
That's what emoticons are for.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
