The Truth About That “We Have A Buyer” Letter
Consider letters from Real Estate Agents that say they have a buyer for your house with a pinch of salt!
How often do you receive a letter or a hand written note in your letterbox from a real estate agent that says that they have a buyer who wants to buy a similar house/apartment or a house/apartment in your street/complex?
Be warned.
The buyer may not exist!
This is standard prospecting tool many agents use and one we are all taught at various Real Estate training workshops and seminars.
It is designed to gain your confidence (in other words, to lower your defenses), and ultimately to list your property for sale all on the premise there is a buyer waiting to buy it.
Now sometimes these letters are 100% genuine. An agent may have sold something in the street or in your unit complex and indeed, has surplus buyers.
But sadly more often than not this is a ‘loss leader’ tactic whereupon as soon as they list your property the “buyer” either miraculously disappears into thin air, or upon inspecting your property it’s revealed that the ‘buyer’ really needs more bedrooms or some other missing criteria.
Sometimes the letter is genuine and the buyer makes an offer, but if the agent hasn’t provided you with a ‘comparative market analysis’ (CMA) so that you can reasonably establish likely market value, you may actually end up under-selling your property.
How to decide whether or not the letter you’ve received in your letterbox is, in fact, genuine…
For a start, if it looks like it’s a photocopy then it probably isn’t genuine. Another way to establish if it’s genuine or not, is to ask the agent for specific information about the supposed buyer. Things like:
- * “What is the buyer’s name?”
- * Ask for some demographic information, for example: “Do they have children?” and “Are they local buyers?”
- * “Which properties were they looking at?” “Are they in a position to purchase now?”
- * “What are their exact criteria in a property they want to buy?” “Who else received the letter?”
- * Ask for a CMA before considering an offer or listing your property.
If you feel it sounds genuine, that’s great; just don’t simply sign a standard ‘60 Day Exclusive Agency Agreement’ with the agent, whatever you do.
Instead ask for a Listing Agreement, which specifically limits the agency period for say, one week.
This will force the agent to get their buyer through your property promptly. This way, if it turns out to be bogus you’re only tied to that agency for a very short period.
The Key:
Just about every property owner will, at some time or another receive a letter in their mailbox advising an agent has a “buyer” for their property.
Sometimes they are genuine. Often times they are not.
Don’t get too excited until you’ve asked specific questions. Even then, don’t sign a Standard Agreement; it may still transpire that there never was a real buyer in the first place!
In a nutshell, be very cautious of ‘We Have A Buyer’ letters.