Why on earth would you want to know more about who is looking at homes? Simply put, to help you sell it! The more you know about the types of buyers in the market, the better prepared you and your agent will be to prepare it for sale.In real estate there are some commonly used classifications that cover the bulk of homebuyers.
They are the First-Time Homebuyers, the Trade-Up Buyers, the Trade-Down Buyers, and the Empty Nesters.
Coming from a rental situation, their requirements are privacy and storage space, although the true motivation is pride of ownership and getting away from paying rent.
Because this is a new experience for them, they’re more nervous about buying than someone who’s done it before. A special effort has to be made to assure them that they are considering a sound investment, which they will have no trouble selling in later years.
Usually when you work with a first-time home buyer, financing is the biggest obstacle to getting the house sold. The key to this transaction is a great mortgage lender. Many people in this group who actually could buy your property don’t believe that they have enough money or good enough credit to own a home.
With today’s economy and the influx of Internet entrepreneurs, many of these families are getting to this stage in their early thirties. Bearing in mind the shrinking family size, the trade-up buyer is motivated by prestige; therefore curb appeal and nice neighborhoods are high on their priority list.
Price is not as important to this segment as the size of monthly payments, a motive that provides the opportunity for creative financing.
With the prevalence of divorce, there has been an increase in single parent households. Trade-down buyers often have the emotionally difficult task of facing a cut in their standard of living. These buyers want to have the shock minimised by being offered similar lifestyle statements provided to the trade-up buyers.
They also prefer a more casual living space. They would opt for a great room over a formal living room and they prefer a combined kitchen and eating areas.
By emphasising different features of your home, you can appeal to the special needs or desires of each market segment.
The unique skill of the agent is to match a homebuyer with a home seller, so that they both get what they need and desire out of a home. Chances are, as a seller, you are also in one of these categories. What are you going to do after you sell? Move into a larger home, or move into a smaller one?