It is not uncommon to have Real Estate agents miss the sale of a property due to a client’s credit situation.
What’s even worse is that a lot of these clients aren’t really aware of how their credit is or what negative items may affect a mortgage underwriting decision.
The worse part is not knowing what the outcome would be, especially having put in tremendous hours of your time as an agent.
After all, your brand is everything on the market.
In order to avoid wasting precious time and resource, I’ve put together some suggestions that may ultimately save a sale while helping you add tremendous value to your clients.
1. Be proactive and help your clients obtain their Credit Reports
Clients, in most cases, don’t really know how to assess their credit to know what they will qualify for in terms of a mortgage. Often, it happens so that when they “think” that they will be approved for something but, in reality, they end up being denied due to inconsistencies in their credit reports.
This is a frequent situation with a lot of Real Estate agents. Unfortunately, the only cure to that is to guide your clients and help them obtain their credit reports. Luckily, it does not have to cost them or you anything.
If you head over to Annual Credit Report, the client may obtain a copy of all 3 Credit Reports based on Equifax, TransUnion and Experian for free once a year.
2. Help your clients navigate through their Credit Reports
Often, clients are scared to look at their reports and are afraid of uncovering things that will probably cause them stress. That is why it’s important that once they have their report in hand, that you guide them through it.
It may happen that they are afraid of sharing certain financial information with you, but you need to build that trust with them so that you may add value.
At first glance, it’s important that you make them understand what kind of negative items may be affecting their credit. And, it’s equally as important to let them know that those negative items may hurt their ability to borrow the desired amount that they want in order to close on a potential property.
This stage is crucial to a lot of Real Estate agents don’t know what the client has gone through in the past years in terms of financial hardships or what may possibly affect their mortgage applications.
By taking your time to dig deep with your clients and providing them proactive advice on what steps to take next, you will be helping them and yourself for the long-term.
3. Help your clients figure out their Budget
Figuring out what their budget is may sound like a very basic step but believe me, it’s easy to overlook this. Realtors in the past have skipped this step only to work dozens of hours with a client only to figure out that the client can’t “afford” the property that is being recommended.
Help avoid the frustration by asking them for their budget upfront. If they aren’t sure, it’s important that you help them figure it out. In most cases, clients get excited with the notion of buying a nice looking property that it’s easy to forget the basics, such as what budget they can actually work with.
Take your time to help them prepare their financial documents so that when it comes time for underwriting, the heavy lifting is already done and ready to go.
4. Get to know your Client’s Lifestyle and Desires
As a realtor, your job is not only to sell a property but also to make recommendations that would potentially change the lives of your customers. Buying a home for a customer is one of the biggest financial decisions that they can make. And, if you’re the one behind making the recommendation in the first place, it’s your duty to make sure that whatever you suggest to them, resonates with their lifestyle and their desire.
Research what their preferences are and what they are looking for specifically.
This can be as easy as coming up with a checklist such as:
- High 8’feet ceilings
- Swimming pool
- Large Patio
- Very spacious backyard
- Renovated and Finished basement
- Double Garage
The more questions you ask, the better you can serve them. Once you get the time to know them and their preferences, making recommendations to them on a property that you list or have access to will not only be easier, but it will come from a thoughtful and meaningful place.
Once again, your brand is everything. It’s important that your potential clients see you as a valuable resource and not just another realtor.
Competing in your niche and market is always going to be an uphill battle. You always need to improve your processes and procedures when it comes to providing a superior form of customer service.
Don’t let your potential sales slip away and use the strategies listed in this article to help you get closer to your clients and help them by adding tremendous value. Let them know that you’re looking out for them and that you’re willing to do what’s necessary to help them get into the home of their desire and choice.