How Well Do You Know Yourself?
Over 2,000 years ago, Socrates proclaimed the key to wisdom is to “Know Thyself”. That adage holds true in all facets of life but especially when making a significant life decision like the purchase of a new home. Knowing what kind of buyer you are will leverage the advantages of your style to hopefully get your home at a good, fair price in conjunction with a smooth transaction.
Without further adieu, here are a few types of buyers I encounter in my field:
1. The Window Shopper- These buyers want to see every open house to get a feel for the market. They are typically tough negotiators. When they find their perfect home at a good, fair price, they just can’t muster up the courage to put in an offer.
2. The All-Cash Machismo- These buyers metaphorically puff out their chests and deservingly so. They do not need a bank, which significantly cuts down on closing time and reduces the friction of the sale (less people involved=less friction). They tend to leverage their cash by making greater demands in the model of “do this or else we walk”. At the end of the day, the seller gets cash despite the payment method of the buyer-they don’t care if it comes from the buyer or the bank (financing). Be careful to make your demands too great in a sellers market.
3. The Scrappy Underdog - These buyers know they’re a long shot, but appreciate it greatly when an agent gives them the time of day. They don’t have the highest down payment, maybe don’t even have the highest offer, but will do anything it takes to do the deal. They respond quickly and do everything their expert agent asks of them. Speed in the transaction is a huge plus to working with these buyers and often it secures a victory.
4. The Emotional Buyer - These buyers may not the best candidates on paper (lower down payment, lower offer) but they utilize pathos to the fullest of its rhetorical scale. They are the most rewarding buyer because they do tons of charity work, have the most adorable family and pets, and beautify the neighborhood in their spare time. At the end of the day, the seller wants the most money possible and the smoothest transaction. Some sellers may value the neighborhood more than their bottom line so it’s certainly possible to leverage emotion to get the deal done.
5. The Vulture - These buyers smell a desperate seller from a mile away and leverage all they can do get the best deal possible. They point out everything that’s wrong with a property from its crack in the façade to a boiler issue from 12 years ago. In a low inventory market like the one we’re currently in, many vultures will flock to a stale listing in search of a deal. One of them will get the road kill.