Why having a buyer’s agent is a good idea, and why it’s also a good idea to listen to your buyer’s agent
Whenever I start working with a new buyer, when we talk about the fun stuff like where they want to live, whether they want a fixer-upper or a place with amenities, and before we start sending each other listings and I start setting up appointments and we start texting a million times a day, I like to have real talk about finances. I know that finances are a weird thing to divulge to someone you may not know very well, but open and upfront conversations can help make the process much smoother.
The Agent/Client relationship requires faith and trust
A few months ago a very eager buyer approached me to work together so she could purchase a co-op. I was thrilled because I really enjoy working with buyers. However, she didn’t want to give me any information whatsoever about her finances, telling me she would show me proof of her ability to afford the apartment once she was ready to make an offer. But in the meantime, I should do all kinds of running around to help her find her dream home.
My board packages are on point.
Now, let’s remember some important facts here: Every co-op has slightly different rules. For example, some have strict debt to income requirements, others do not allow gifting of down-payment money, others have different post-closing liquidity requirements. Anyway, I tried to impart all this to this buyer, but she kept telling me she was an extremely private person. I told her I totally respected that about her. I also told her I wasn’t comfortable working together because I felt like I was flying blind, and it seemed unfair. I felt she was asking me to trust her. But her actions told me she didn’t trust me.
My best clients, my most successful clients--the ones that get the apartment they really want--are successful because they listen to my advice. We set up expectations and norms of behavior from the get go. My best clients both communicate what they need from me and also do what I ask of them, knowing that I am only asking because I know what I’m talking about. I want them to be successful, get a good deal, and have fun during an otherwise stressful process.
“I love it when my clients and I are a well-oiled machine of efficiency. You know why? Because everyone loves to work with well-oiled machines.”
Have your ducks in a row
Here’s what I ask of my buyers:
I want them to tell me how they imagine us working together
I tell them they need to find a good attorney who specializes in Real Estate--meaning: someone’s brother in law who also happens to be a lawyer is usually a death wish to a smooth sale.
They give me redacted copies of the following documents (via a secure method such as dropbox):
Pre-approval letter if financing
Last two years of tax returns
Proof of funds
Copy of a credit report run within the past thirty days with all pages
When I see these documents, I can look at them the way that a co-op board would look at them.
Why am I a good person to do this? Well, because it’s my job. I have literally looked at a zillion board packages in my day. So based on this information I can glean whether the buyer would be a good candidate or not. Also, when I go to make appointments at other agents’ listings, I can speak articulately about my buyer, which ultimately makes co-broking much easier.
Then, when we find a place they love and want to place an offer, we can make the offer quickly because we have everything organized.
I love it when my clients and I are a well-oiled machine of efficiency. You know why? Because everyone loves to work with well-oiled machines. Not to mention, when the offer is accepted and the contract is signed, we already have a bunch of the necessary paperwork for the board package.