How to Help Your Frustrated Homebuyer

The home-buying process is one that requires patience and understanding of your clients’ needs. Also, a good agent keeps up with how their client is feeling. If a homebuyer is frustrated this can create some difficulty in the process. As an agent, you must properly assess the situation and provide guidance to your homebuyer to ease the frustration.

This blog will explain where this frustration stems from, has it changed and how you can create a better experience for your client.

In today’s technology-driven society, almost anything can be done on a smartphone. Therefore, it has been widely assumed that the process of home shopping is easier today that ever before. However, a recent survey by the National Association of Home Builders finds that more Americans are frustrated in the process.

Homebuyer Expectations

The NAHB polled nearly 17,000 people over two months, and of those polled, 13 percent considered themselves prospective homebuyers at the time. A majority of them were first-time buyers in the millennial demographic.

Seventy-two percent of these prospective buyers said they expected the ongoing home-search process to become “harder or about the same” in the months ahead. Only 19 percent said they thought it would get easier. One of the top frustrations for home buyers is the inability to find an affordable home.

Fifty-two percent of millennial respondents, the largest prospective home-buyer demographic in the survey, cited price as the toughest barrier in buying. Price is key in any home search, which is why thorough communication with your client on this topic can create a smoother home search.

Obstacles for Homebuyers

It is possible that price growth and inventory shortages are taking a toll on homebuyer confidence. When NAHB conducted this same survey last year, fewer prospective buyers (65 percent compared to this year’s 72) said they thought their home searching would get harder in the months ahead and 27 percent expected the search to get easier.

#1. Price Growth

Price growth is one aspect that impacts both the buyer and seller. The buyer wants the best deal whereas the seller wants to make a profit. More than three-quarters of buyers surveyed said that at least half of the listings in their market were outside their price range. 49 percent of respondents stated that they could not find a home at a price they could afford. This is up from 42 percent a year ago.

#2. Inventory Shortage

The inventory storage is an obstacle that homebuyers with specific desires hits the most. In NAHB’s Housing Trends Report, 40 percent of active buyer respondents said they were specifically looking for an existing home rather than new construction. Appropriately negotiating price brackets and understanding homebuyers’ wish lists for their homes is key in creating a process where both parties can understand expectations.

Road Ahead for Buyers

Even with all the obstacles and frustration in the process, these prospective buyers generally planned to continue actively searching. When asked what their next steps would be if they could not find the “right” home in the next few months, 63 percent of respondents said they would simply “continue looking until the right home opens up in a preferred location.”

Forty-four percent said they would expand their search area in response. This means that homebuyers may be frustrated, but they are dedicated to find their dream home even if it means opening search areas or spending longer times searching.

Home shopping has its obstacles, and recent inventory shortages in unison with price growth can amount to frustration. Those are aspects you cannot truly control. You can, however, guide your client into realities and make the home search process much less stressful. By discussing plans with your client and having an understanding of their concerns, you can alleviate some of that frustration. Check out our AgentEDU course dedicated to understanding buyers. If you start a seven-day free trial, you’ll have access to our “Representing Buyers” course.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.

How to Create Accurate Real Estate Job Descriptions

As you plan to bring on new people, evaluate which job responsibilities you should delegate, share and keep in your care. It’s best to start slow, adding one role at a time, while learning what you really need operationally and financially.

In this blog, we will review three of the most common team member titles, job descriptions, and compensation models. This is to help you compare your needs with the current industry standards and hire appropriately.

Team Assistant

Role Responsibilities

This administrative position will help you organize, track, manage and coordinate any area of your business. Your assistant can be licensed or unlicensed, depending on your needs. A licensed assistant can answer questions for clients and even show homes.

An assistant is often suggested as a good first hire because they can free up the time you currently spend on administrative work, allowing you to focus more on profit-building tasks. A team assistant will not directly generate income for your business but may indirectly help you grow by allowing you to serve more clients.Compensation

Compensation

A full-time assistant will require an hourly wage or salary, plus benefits, and will require a larger investment than . Real estate assistants often make between $30,000-$45,000 a year, plus bonuses and benefits, depending on your market. You’ll need to withhold income tax, state taxes, Social Security and Medicare taxes.

These payments can add up to 15 percent or more to the cost of their total salary. You’ll also have to report all of this to the IRS. Additionally, you may need to provide office space, workers’ compensation, errors and omission insurance and health care benefits. You may be required to include them on your auto insurance policy.

Buyer’s Agent

Role Responsibilities

Some agents prefer to focus their own work on listings, and need help representing buyers. Since buyers often require more of your time and attention than sellers, hiring someone to manage the buyer side of your business could make a lot of sense.

Buyer’s agents show houses to clients and convert showings to sales on properties of interest to the buyer. A buyer’s agent will also understand the current marketplace and financial implications of investing in various neighborhoods. They will help buyers narrow their search based on needs and lifestyles and can bring new perspectives to your clients.

And though the buyer’s agent only focuses on buyers, the right hire can bring a more diverse understanding to your business as a whole. He or she can serve as an advisor to you and other agents.

Compensation

A buyer’s agent is typically paid a small salary plus commission. The commission for buyer’s agents is typically up to 50 percent, after expenses are paid. Splits may be adjusted to differentiate between team-generated leads, which may generate a 40/60 split, and agent-generated leads, which could be a 60/40 split. The selling point for this position is that a buyer’s agent is more likely to make more money in a team setting while handling the side of the transaction that they prefer.

In order for a buyer’s agent to be successful on a team, the team must have a high-producing buyer’s agent. Buyer’s agents should show properties and close deals, with the help of the team’s lead generating marketing efforts and administrative assistance. Your compensation models should hold agents accountable for their productivity.

Listing Specialist

Role Responsibilities

A listing specialist can either bring in the listing or step in once the listing agreement has been signed. A listing specialist will represent the seller and oversees all aspects of the seller’s transactions, from initial contact through closing.

The listing specialist may prepare all materials and documents for the listing as well, including marketing materials, listing agreements, disclosure statements, market analyses and online property profiles. The specialist will also conduct the necessary research to advise on the sale price of the property, and work with the sellers to take photos, stage the property and make repairs.

Compensation

Like a buyer’s agent, listing specialists may be paid a small salary, but the role is largely based on commission, up to 40 percent of the net profit. Base salaries for your listing specialist should depend on the experience level of the agent and your local market. Salary compensation should be strategic to inspire productivity.

Like the buyer’s agent, generating their own leads and closing deals is a main priority. They should be held accountable for their productivity and compensated appropriately.

Grow Your Team

Plan to start slow as you hire new team members, and grow your team by one position at a time. Pay your team members competitively and based on their productivity to retain them and support your financial success. To learn more about how to fill out your roster and create accurate and useful job descriptions, start your seven-day free trial of AgentEDU today and watch the full course, Team Members Job Description and Compensation.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth. For a 7-day free trial sign up here.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.