Does it pay to know the different types of buyers you will likely encounter when selling your home? Leading Realtors think so. It pays, literally, to know what type of person lurks behind the offer so you’ll know how best to deal with them for optimum results. Following are five types of buyers you may encounter:
Type No. 1: The all-cash showoff.
All-cash buyers may seem a little cocky…understandably. With no worries of financing falling through, this buyer means business and can even ask for a shorter escrow period to seal the deal. The downside is you may have to be ready to be flexible. The all-cash buyer may aim for a lower offer or have specific contingencies in mind. The promise of cold, hard cash is more of a bragging point than a financial benefit to you. So be prepared to drop them if their demands get too outrageous.
Type No. 2: The scrappy underdog.
These buyers are the opposite of the all-cash buyer. They have little available cash for a down payment. Buyers with FHA loans can fall into this category which can sometimes be rough on sellers since FHA loans have stricter home qualifying requirements. Additionally, the more work a buyer needs to finance the property, the more work a seller might need to do as well…like contributing to closing costs.
The good news is these buyers usually know they’re a headache and, as a result, should be more flexible to your needs, as long as they don’t require cash, a later move-in date or fewer repairs
Type No. 3: The doe-eyed charity case.
These buyers are so in love with your home they submit an offer accompanied by a sweet emotional letter with photos of their children or pets. They are probably the most rewarding buyer out there, but beware. Warm and fuzzy feelings will not pay the bills. If their plea is not accompanied by a heartfelt offer, they could just be playing your heartstrings with one hand and reserving a fistful of cash in the other.
Type No. 4: The window shopper.
These buyers dream of owning a home someday. They gallivant around town, swooning at every open house, but flake when it comes to sealing the deal. They might even pose as negotiators with low ball offers. The reality is they just aren’t all that serious about buying a home. It’s best not to waste your time dealing with this type of buyer…or non-buyer.
Type No. 5: The coyote.
If you’re property has been aging on the market, you might start seeing this type of buyer sniffing. They want to see if there is a crack in the foundation or something that’s kept it on the market for so long. Don’t get intimidated. Just be honest. Work with your Realtor to see what concessions need to be made and if the price you’re asking is right. Chances are if it hasn’t sold for a while, you might need to come down a bit.