When I was selling real estate, my greatest pet hate was having to sell the property twice.
What I mean is, if the deal fell over, I had the painful task of having to explain to the owners “why” and re-list the property back on the market a second time around. No one likes that feeling of “starting again”, especially real estate agents.
Speaking with selling agents today, nothing has changed.
A sale that has, what we refer to in the real estate world “fallen over”, is one of the most annoying and challenging things real estate agents have to deal with.
Depending on the exact circumstances, a property that has to be put back on the market because the original buyer pulled the pin, can sometimes develop a certain stigma.
You know when you see a property online come up time and time again in your searches, and you start to wonder why it hasn’t sold?
You instantly think, “maybe something is wrong with it?”.
Either way, you’re dubious about that property because if no one else wants it, it must be bad!
Not necessarily, but this listing has now turned into one that is Stale; and a Stale listing is a selling agent’s worst nightmare!
Stale listings become difficult to sell and often the agent will lose the listing to a competing agent who will end up selling the property instead. The first agent would have done all the hard work with no reward (or commission).
But getting back to the title of this article, Why agents don’t want to sell to first home buyers, let me marry the points I’m making above.
It’s a known fact that First Home Buyers are considered THE WORST offenders for cancelling contracts they have signed.
They’re often nervous about buying because they’ve never done it before, and any little problem that comes up, especially when it comes to the building and pest inspection, can be blown out of proportion resulting in cancellation of the Contract.
Trigger happy solicitors haven’t helped the cause over the years and since everyone from mum and dad, best friend and seasoned property investor (the friend of a friend who knows EVERYTHING about property because he bought his first house a year ago), is sceptical about real estate agents and the properties they sell, it’s no wonder first home buyers get nervous and pull the pin at the slightest hiccup.
No one trusts anyone!
THIS IS WHY AGENTS DON’T WANT TO SELL TO YOU.
YOU’RE A HIGH RISK BUYER.
Sorry, but that’s the truth.
So how do you turn this around and give an agent confidence that you ARE in fact the right Buyer to sell to, because before you chime in and tell me that the selling agent is not the decision maker in all of this, let me remind you that the selling agent is often the biggest INFLUENCER in the deal.
Here’s 3 things you can do to get the agent on-side and make them feel confident that you are the right Buyer for the property.
- Show them you are pre-approved for finance and give them confidence that financing the purchase will not be a problem.
- Tell them you’re not going to cancel the Contract if the building and pest inspection raises minor issues.
- Explain that you have done your homework and researched the market well enough to know this is the right property for you.
To reinforce your good rapport with the agent, you want to make it clear to them that you are not one of those dreaded “time wasting” Buyers.
You’re here to buy and won’t cancel the contract willy nilly.
Sure, if there are major problems with the property that are discovered, you are certainly going to weigh up your options, but you will be OPEN to renegotiation if needed and won’t just disappear into the woodworks, leaving your solicitor to deliver the bad news to the agent. (Agents hate this!)
If you can demonstrate to the agent you are confident in buying the house and will take all the steps necessary to ensure the sale proceeds, you will have them on your side.