Assessing a Buyers Potential

May 28 - One of the biggest challenges for estate agents is being able to assess how much a potential buyer can actually afford to buy. There are different types of buyers and not all of them can afford what they originally say that they can.

A real estate agent needs to be able to recognize three different types of buyers. There are those who will have to go lower than their declared upper limit, those who may end up going higher and those who have pre-decided that they will spend a certain amount and will not budge on that amount regardless of what they can actually afford to spend. Being able to recognize the different types of buyers can take years of experience and it is a very important part of the real estate agent's job.

One important rule to abide by, that may save you much trouble as a real estate agent, is never to ask a buyer what they can afford when they are within earshot of other people - especially those they wish to impress.? A buyer may arrive at a show house without having any idea of the list price. He may be too embarrassed to admit this once he finds out the price and a good real estate agents needs to recognize this and steer him towards houses in the correct price bracket.

Try to gain information about individuals from casual information in an attempt to find out if they are understating their buying power. For those who do not like to discuss their financial situation, it can be well worth your while to find a good deal for them and they will often spend over their originally stated limit. If an agent his homework, he can make a good deal.

5/28/2010 9:33:59 AM