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Finding Out If A Buyer Is A Serious One
It is already a complicated process to arrive on the decision to sell your property. You put in a lot of hours working out how things will turn out. The last thing you want is to waste time on buyers that are just fooling around or just not ready to buy your property. There are no problems with decisive buyers when they can decide not to buy your property.
The ones that wastes everybody’s time are those that give every indication that they are going to buy but never even put forward an offer. You could have reserved the house for him in your mind holding off potential buyers but is treated like dirt when asking for a commitment. You are not obligated to be nice to phantom buyers. They are wasting your valuable time and eating into opportunity costs.
The fact of the matter is that buying a property especially in a place like Singapore involves huge costs. And that comes with huge pressure giving them cold feet. It could also be typical buyers remorse. Whatever the case, it might be worthwhile to assess a buyer before giving him more of your personal time.
How willing, able and ready is a buyer?
The first thing to consider is whether you feel your communication with a buyer is distorted through the property agent. As agents are the middlemen who pull the deals together, sometimes they can actually be the biggest barrier preventing deals from happening. As communication is over 90% non-verbal, a friendly request that you want your agent to inform a buyer could turn out to be an overwhelming demand when put forth by the agent. So when you feel that there is a communication distortion with a buyer, you should request for a face-to-face meeting.
Uncovering the motivation behind a buyer can go a long way towards a genuine offer being tabled. For example, a newly divorced individual could be urgently looking for a new home. Or a family who has just sold off an existing home may be urgently looking for a new one. Whereas an upgrader who has yet to even put up his existing property for sale is surely in no rush to find a new home. A lot of people are just going around viewing properties until they are finally ready to buy. And this readiness can be a long time coming.
Speed of communication
When someone really wants your property badly, you can expect communication to be fast, Whereas, someone who is viewing countless properties and comparing between 36 apartments is surely going to take an extended amount of time to respond to you. Some people just need to gather all available information to make a decision even though a lot of information is irrelevant. How do you weigh your chances being 1 out of 36?
Realistic vs idealistic
There is a real world and an ideal world. The sad thing is that a lot of property buyers read too much into great deals and feel that they can pull off an ideal purchase like what has been rumoured. Are the offers you are getting way too high or too low to your asking price. Being willing to pay much more that you are asking could mean strings attached that the buyer expects you to fulfill. Getting too low a price below what you are asking can mean that the buyer does not value the property the way you do. In both cases, you will usually find a lemon at the end of the road.
The first real commitment from a genuine buyer is by paying you the deposit fee. This is a clear sign that the buyer is a serious one. Who in the right frame of mind would voluntarily risk losing money on the deposit just because they cannot decide whether to buy? If a buyer keeps delaying or avoiding paying you the deposit fee, it is a clear indication that they are not serious or seriously considering an alternative property.
Time to closing
There are industry practices on the time period taken to closing. The terms of course can be determined by buyers and sellers. If you seller is asking for an unreasonable extended period of time to closing, it could be a sign of trouble. They could be holding out for a better alternative buy or unable to raise the funds required to close. Ask you buyer the reasons for this request and judge for yourself whether it is legitimate.
Every buyer and seller want to get the best deal out of a transaction. It is therefore common for both parties to make little request or concessions as the deal is being ironed out. But when a buyer makes absurd request like replacing the roof when there is nothing wrong with it or building an extension wing, the buyer is behaving like a joker. These examples are extreme examples. But you can tell when someone is being absurd. These buyers are just wasting everybody’s time knowing that you will never agree to the outrageous concessions.