After Preapproval: Starting the Home Search

A week ago, we discussed the importance of the preapproval when starting the home search from the buyer's perspective. But once you are preapproved through a customer oriented lender, what is your next step? This is where I would say each buyer has a home search personality type. As a Realtor I have seen multiple styles of property search psychology.

"I found this property on a real estate website. It's the only one I've looked at, it's perfect, and I must see it immediately." This approach to home searching may not be ideal for the buyer's mindset. The buyer hasn't selected any alternative properties, likely hasn't been preapproved, and is basing their decision on the listing agent's marketing, believing it to be their "dream property." They have progressed in their decision-making, making it challenging for the buyer's agent to slow down the process, conduct due diligence, and focus on the pros and cons. Typically, a motivated buyer's agent will agree to show the property on short notice, only for it to turn out differently from the listing agent's marketing. Even if the property matches the marketing and the buyer is financially prepared, they are vulnerable in a competitive market, as they might be outbid and lose their sole choice. In either scenario, the client ends up disappointed. 

The second type of property search personality is the do-it-yourself type. These individuals prefer to select properties themselves and generally dislike those suggested by their buyer agents. This approach is perfectly fine as long as there is effective communication between the client and the agent. It's beneficial for both parties to discuss the client's preferred method for finding properties. Many clients of this type favor using Zillow, but if the agent offers an alternative, it might be worthwhile to consider it. This allows the agent to better gauge the client's interest in a property and conduct preliminary research on the client's behalf, staying ahead in the property search process. However, a drawback of using Zillow is that it attempts to disconnect you from your current broker in order to sell other agents leads, which may result in numerous unsolicited calls. Clients should ensure they forward any "liked" properties to their chosen agent along with any specific follow-up questions they may have.                                                                                                           

The third type of property search personality involves clients who prefer the buyer agent to actively search for properties on their behalf. This approach is highly effective as long as communication remains strong and clients provide constructive feedback on each listing presented. The buyer's agent should avoid overwhelming the client with too many options. Instead, the agent's responsibility is to refine the selection of active listings to those that align closely with the client's property profile. This strategy also reduces the amount of due diligence required by both the buyer agent and the clients, as the agent focuses on properties that best match the client's criteria.

In closing, the important lessons here for the client trying to optimize their property purchasing strategy are:

The agent and client should be transparent about the motivations behind the property search. This ensures everyone understands which properties are appropriate. The client must realize that this process is not a one-time chance, as mentioned in scenario 1. It's a collaborative effort that requires time and work.

          Both Scenario 2 and 3 are suitable for home shopping, but the client's preference will impact the level of communication required and the amount of work involved. In Scenario 2, the client must actively communicate with the agent. In Scenario 3, the agent must actively communicate with the client. To enhance efficiency, and minimize cold calls, using the agent's search tools is likely the best approach.