Real Estate Buying Cycle
First things first! Before you do anything else, you need to determine where the buyer is in his buying cycle. What criteria of house is he looking for? Budget rank, feature and amenities, neighborhood, hospital, and school district. After he find a dream house. What next! What you should know as real estate agent! This article will brief you how to do it from buyer´s house searching to closing the contract and getting the commission fee.
How agents approach and follow up with real estate customers?
“Research indicates that home shoppers begin the process phase one of buying a house about 4 to 6 weeks before the beginning of phase two, or 6 to 8 weeks before the beginning of phase three.”
The real estate buying cycle consists of three phases:
- Phase One: Information Gathering
- Phase Two: The Search
- Phase Three: Escrow (Contract to Closing)
Research indicates that home shoppers begin the process phase one of buying a house about 4 to 6 weeks before the beginning of phase two, or 6 to 8 weeks before the beginning of phase three.
Phase One: Information Gathering
The buyer is thinking about budget, features and amenities, neighborhoods, and school districts. The customer is solidifying in his own mind, what he wants to buy. He chooses his search criteria and his budget. Most importantly, Phase One of the buying cycle is the only part of the process that customers want to do on their own.
Phase Two: The Search
It is at this point that real estate shoppers understand that they need a real estate agent to help them in the process of finding their dream homes. The customer wants to look at real live houses. He now knows what he wants and is out to find it.
So how do you become that agent? By being there! You need to be there at the precise moment the prospective buyer decides it is time to find an agent. That moment he calls duty desk and asks to see a house or picks up a home magazine and calls the listing agent or is out driving around looking at neighborhoods and decides to call the number on a sign.
Phase Three: Escrow
Beginning with the acceptance of the contract and moving forward to closing, there is the third and final phase of the buying cycle.
The selection of the escrow holder is normally done by agreement between the principles. Real estate agent may recommend as escrow holder so you have to understand the process and having it with you all the time.
The duties of an escrow holder include:
- Following the instructions given by the principals and the parties to the transaction in a timely manners;
- Handing the funds and/or documents in accordance with the instruction;
- Paying all bills as authorized;
- Responding to authorized requests from the principals;
- Closing the escrow only when all terms funds in accordance with instructions and provide an accounting for same: the closing or settlement statement.
76% of all buyers will work with the first agent they talk to. If you are first, the odds doing the deal are 3:1 in your favour.
mrleenote 