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5 Standard Kinds of Home Buyers & How to Deal with Them

By Mike in Home Selling with 0 Comments

When you receive offers on your home, it helps to understand where your buyer is coming from to better negotiate the terms of the sale. Not all buyers are the same, and they may have very different needs and goals. While some buyers may be more open to negotiating on the sales price or contingencies, others will have no wiggle room at all. Whether they’re looking for houses, lofts, penthouses, or condos for sale in downtown San Diego, there are five common types of home buyers you could encounter when selling your home. Here are their main characteristics and the best way to work with each one.

1. The All-Cash Buyer

All-cash buyers often believe they’re at the top of the pack. There are no concerns that financing will fall through before the deal closes, and you know they’re serious buyers. They may even ask for a shorter escrow to close the sale faster. The downside of all-cash buyers is that they often make lower offers or come with very specific contingencies, such as replacing the flooring or repairing the deck, or they’ll walk away from the sale. An all-cash offer may be tempting, but remember you get the proceeds of your sale in cash, no matter how the buyer pays. It isn’t worth it to compromise too much, even though an all-cash offer comes with less risk. A well-qualified buyer who is getting a mortgage is just as good as a cash buyer when all other factors are the same.

2. The Underdog Buyer

These buyers often have little saved up for a down payment and may be using an FHA loan, which means stricter requirements on the home and potentially more work for you as a seller. With an FHA buyer, you may need to contribute to closing costs or make renovations to your home to meet FHA guidelines. These buyers may seem like a hassle, but many are aware they bring extra stress and work to the table. Underdog buyers should be more willing to accommodate your needs—which is a good thing, as long as they don’t need too many repairs or a longer escrow.

3. The Wishy-Washy Buyer

Sometimes a buyer isn’t ready to make a decision, can’t decide on the right home, or isn’t fully committed to buying a home yet. It helps to recognize these buyers because they may not be serious about making an offer and they could be taking up valuable time. This type of buyer can include the window shopper who isn’t serious about buying a home quite yet but wants to see what’s out there by going to open houses and asking questions. You can recognize wishy-washy buyers and window shoppers because they’ll give noncommittal answers to questions about their budgets or when they’re wanting to move in. They may have already looked at many homes and still don’t seem to know what they want—or if they want any home at all yet. Cut your losses on these buyers instead of wasting your time and effort.

4. The Deal-Hunting Buyer

Some buyers are always in search of the best deal. They may be frugal buyers on a budget, love the thrill of getting what they believe is a great deal, or be home flippers trying to maximize profits. These buyers will look for flaws in your property and are likely to offer below your list price. While these buyers often target distressed homes, your home may also be a good candidate for them if it’s been on the market for a while. With deal hunters, you should be honest and disclose any problems with your home. Your real estate agent can help you decide if any concessions should be made and if your price is really reflective of your home’s value or you should come down some.

5. The Impulse Buyer

Impulse buyers fall in love with a home, and they immediately begin to make plans for the home and share them with you. They’ve seen the home, and they already know how they want to decorate and the upgrades they want to add. This may seem like the best-case scenario, but it pays to be cautious. Sometimes impulse buyers get too emotional and stretch themselves too far financially. They may not be able to make a fair offer for your home if it’s outside their budget or they can’t get qualified for a mortgage. If the buyer is well qualified and can afford what your home’s worth, be reasonable about any contingencies requested to make the deal happen.

Knowing common types of home buyers can save you a lot of time and effort when you’re selling your home, and so can hiring an experienced real estate agent. If you’re getting ready to put your home on the market, call on the downtown San Diego real estate experts at 92101 Urban Living to help you sell your home quickly and for the highest price. Give one of our friendly agents a call today at 619-649-0368.