By Why it’s important to work closely with clients to help guide their home buying decision
There’s been a lot of attention in the media this summer on defaults and foreclosures. RealtyTrac© just released a report that showed foreclosures for the first half of 2007 are up 55 percent from 2006 nationwide. For the full report, click here.
As REALTORS®, we know that a high rate of foreclosures and defaults can negatively impact home values and sales overall. We’re going through this right now. So I pose this question: How can we as REALTORS® help to minimize the risk of foreclosures and defaults for our clients before it’s too late? And, how much of an impact do we really have? Here are some thoughts.
One of the main advantages full-service brokerages offer over discount brokerages is that we guide our clients through the entire process of their home purchase. This can make a difference when it comes to helping them get into a home and finance it with a loan they can realistically afford today and in the future.
In order to do this, we need to really get to know our clients, and this begins with the very first meeting. Ask questions. Find out as much as you can about their budget and lifestyle, as well as what they’re looking for. Get to know their situation so that you understand what they can actually afford before your even start researching properties. Part of our job is to guide our homebuyers to the reality of what they can afford versus what they think they can afford.
Once they’ve found a home, you now have the opportunity to refer your client to a responsible lender who will work with them to find a loan that meets their needs and fits within their budget. This is an important step in the home buying process. As has been shown in the last few months, many buyers are looking for a lot of guidance when it comes to financing and will often take the advice of their agent. Without it, they can find themselves in trouble down the road.
At Intero, we’ve developed mortgage affiliations with some of the industry’s most respected lenders and brokers, including Bank of America and Diversified Capital. Use these companies as a resource. They are leaders in the industry and will work with your clients to find the best loans products for their situation. They will also be realistic with your clients about what they can handle today an in the future.
Once you’ve referred your clients to a lender, it’s still not time to hand them off completely. You should be a trusted advisor for them throughout the process of closing the loan. Though you’re not working with them directly on the financing, you can act as a secondary advisor they will want to turn to, should they have questions about closing costs, loan fees or anything else that arises.
Giving this level of service is what makes the difference between an average REALTOR® and a great REALTOR®. It may be a little more work, but in the long run, it will work to your benefit in terms establishing your reputation as a knowledgeable, client–centric real estate professional that is looking after the best interest of your buyers and sellers. The industry benefits from this kind of cooperation between realtors and lenders, each doing their part to ensure that buyers are viewing houses within their budget and getting into loans they can afford and won’t default on down the road.
