PROBLEMS ON FINANCING. Even though a buyer is
theoretically supposed to arrange his own financing in purchasing
a home, as a matter of practice, the financing normally is arranged
by the selling broker. Often times the seller does not have time
to leave his job to help the buyer arrange his financing. Also,
usually neither the buyer nor the seller really know where to
look. Since the selling broker is placing a great many loans through
many different lending institutions, he knows where the best monies
are and can usually get a quicker and more favorable type of loan.
This loss of time costs money and also the less favorable terms
often cause a loss of the purchaser due to inability to obtain
a loan on more desirable conditions. An owner can in no way have
the expert knowledge and leverage power in the current home loan
market. Due to inability to get financing, the buyer is not only
lost but also much valuable time and often expense with the necessity
of starting all over again.
QUALIFYING EXPERIENCE.The owner, unless a former
real estate licensee, has had neither experience nor training
in qualifying buyers from all aspects, such as financial ability,
emotional stability, needs, wants and desires. This is a highly
technical act and requires experience in certain questions, probing,
communicating, interpreting, and listening to the feedback of
the buyers. Often a qualified broker can turn an otherwise unqualified
buyer into a qualified one by delicately asking questions, re-scheduling
assets and debts, and formulating letters of credit and explanations.
This requires a high degree of expertise in searching out the
three C‚s; namely, character, credit and capacity to pay.
BUYERS HIDDEN OBJECTIONS. Potential buyers are
often reluctant to bring out and discuss objections with an owner
because of fear or reluctance to hurt someone's feelings and the
personal element involved. They often do not or will not put the
owner in a position of defending his home. Thus, an owner can't
help his position because he does not know that the buyers have
unrevealed objections. The real estate representative is in an
impersonal position and the potential buyer is able to discuss
objections with him.
