It’s happened to all agents, you are working with a buyer who seems ready to move forward only to learn their finances aren’t as clean as they thought, and they overestimated the amount on their mortgage loan.
Many buyers, and certainly most first-time homebuyers, only have a vague understanding of the entire home-buying process. To many, the process of buying a property is complicated, stressful and overwhelming. Your role as a real estate agent is to guide your client through all stages of the purchase process by educating your buyers, allowing them to make an informed decision.
Let’s take a look at the process from the buyers’ point of view. Your job begins at the first stage, Need Recognition. This is the first point where a lead can contact you seeking information. Educating homebuyers is part of the lead generation process and helps you move clients along the sales journey.
In this article, we explore five tips on how you can educate homebuyers and develop lasting relationships with your clients.
Ensure Financial Standing Is In Shape To Get A Mortgage
Buyers may have identified their need to buy property but may not have a clear understanding of exactly what they can afford or if they can even qualify for a mortgage. In the UAE, your DBR (debt burden ratio) may not exceed 50%. However, 30% is where you ideally want to be. Depending on your clients’ current debts, they may or may not get approved for a mortgage. As well, commission-based professions do not qualify for mortgage loans, and there is an age cap of 65 years for mortgages in the UAE.
Connect With Mortgage And Service Providers
Let’s assume you are working with a client who is in the initial stages of ‘Need Recognition’ or ‘Information Search’ in the sales journey. Since you are a professional, working in the real estate industry, they have every right to reach out for some information or advice. While these clients are not hot leads, they have shown an interest in buying property and can become a hot lead in the future. Maintaining these connections to warm leads is incredibly valuable for your business and database.
Take a look at the two conversations below and notice the difference between educating your lead and letting go of a lead simply because they haven’t gotten their pre-approval.
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In addition to a mortgage provider, prospective clients may also want information on interior designers, plumbers, electricians, etc. Having a strong network will help you easily connect your clients with these service providers, this also shows that you have in-depth knowledge of your area, motivating clients to work with you.
Give Clients A Realistic Overview Of Current Market Conditions
All property markets are fluid, and it is not easy for property seekers to get information on the most current market conditions. It’s always a great idea to ask clients where they are getting their information from and then giving your professional input as needed. You can use Transaction Insights from Profolio™, which gives you access to last sold transaction data from the DLD.
Part of being a good real estate agent entails walking a client through last sold property transaction data. Hence, they have a clear and current understanding of what is happening in the market before making a purchase decision.
Explain The Entire Purchase Process
While agents live in a world of real estate, clients do not. Many buyers are going through this process for the very first time in their lives or for the first time in the UAE and only have a vague outline of how the process works. Make sure your clients understand all the nitty gritty details of the purchase process, including title transfer costs, commission costs, NOC fees, admin fees, service charge fees, timelines, etc. This helps your clients plan and prepare in advance for what would otherwise become unexpected costs.
Share Educational Posts On Your Social Media
So you want to reach first-time home buyers but don’t know where to find them? Social media is a great tool! Start building your social media presence by sharing advice and information to educate your audience. When searching for a real estate agent, clients are sure to do a quick Google search of your name before deciding to work with you. Having a well built social media account come up during this search is very beneficial for your brand and also helps you attract clients.
Here’s a few ideas of educational posts for home buyers to help you get started:
- Infographics showing the full purchase process
- Tips for first-time homebuyers
- How to get your mortgage pre-approval
- Laws and regulations on UAE home buying
- Market reports and transaction data updates
For more tips like these, check out our Content Corner, which has a library of articles focused on the UAE real estate industry. We also run a series of educational workshops at Bayut Academy, where our dedicated training team is committed to helping acquire the skills needed to succeed in the UAE real estate market.