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The Real Estate Market’s Four Types of Home Buyers

Home Buyers in the Real Estate Market

There are basically four types of home buyers in the real estate marketplace.

Relocation Home Buyers

First, there is the “relocation buyer.” This is the number one buyer that we target and aim to serve as agents. This buyer is rock solid. They’re coming in to buy a home and they know they’re only going to be here a limited amount of time, so they want to see as many houses as they can. That buyer is very qualified to buy. But they don’t want to spend the time looking by themselves. They want a professional to go in and pull up homes, and show them as many homes as possible. So that buyer is not generally going to call you if you’re a for sale by owner (FSBO), because they don’t have the time to do that.

Needs Home Buyers

The second type of buyer, the “needs buyer,” is also a good type of buyer. This buyer calls and basically says, “hey, we need a bigger home” or “we need a house with a pool” or something along those lines. And they will usually call a real estate agent. Every now and then they may look in a newspaper, but primarily they’re going to call an agent because they have specific real estate needs, so they’re going to call an agent and say, “we need the four-bedroom or five-bedroom,” or “we want a larger lot,” or “we want a house with the master bedroom on the main floor,” or “a ranch style home without stairs,” or “a certain school district,” etc. (you get the idea). And they usually do not want to try to find that themselves. As real estate agents, can easily go into the MLS (which doesn’t include FSBOs) and pull up the specific criteria that they’re looking for.

Discount Home Buyers

The third type of buyer, the “discount buyer” will typically call you, the FSBO. They usually do not want a professional involved, like a real estate agent that knows the value of the property. Their job is to go out and try to shrewdly get the best deal they can on the house. They already know you won’t be paying a commission, so they tend to make low ball offers. Your hope, as a FSBO, is that they’re not as knowledgeable as you about the real estate market or homes in the area.

Unqualified Home Buyers

Lastly, the fourth type of buyer is the “unqualified buyer.” This buyer doesn’t
really have a chance to buy a house. This buyer may call us first, and then we always have a lender that will get buyers prequalified free of charge, and once the lender tells us that this buyer can’t even buy a home, can hardly lease a house, and we have to let them know (sadly), “Unfortunately, we are not able to help you.” Well, then they go after you, the FSBO, because you have no mechanism to get them prequalified. You end up getting into some type of long-term contract with them and at the very end find out that they were unable to buy the house in the first place. I’ve even seen it where they’ve moved into a house prior to closing and now you’ve got to try to get them out. It just becomes a legal nightmare. So you can see that, of the four types of buyers, the last two are the ones that you’re getting vs. the first two that we’re bringing to you, and this, unfortunately, greatly reduces you chance of selling your home.

1 Comment

  1. May 17, 2016    

    I thought this was interesting to see the types of home buyers. It all sounds about right to me. There are the people that need more, so they have to find a new house, and those that have to move far away. Personally, in the end, I think it’s best to have a professional help out.

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