The 6 Month House Buyer Cycle

Have you ever noticed that many of the top realsellers, and most agents as well, "write-off" people
estate agents in your area put a home on thewho are not ready to buy right now or in the near
market and have it sold in a few short weeks whilefuture. These sellers want to sell now and aren't
most agents' listings linger on the market for severalinterested in a buyer who doesn't want to buy now.
months and almost all For Sale By Owner homes justSo they keep advertising, keep marketing, and keep
don't sell at all?sitting open houses. This eliminates about 90% of the
All 3 are advertising in the same place, the samebuyer inquiries that they get.
papers, and on the same internet sites like and ButBut when a Realtor understands that about 50% of
top agent properties are selling, and others aren'tthe buyer inquiries will buy some day, and the agent
even getting showings... let alone offers!develops a system to be there when those buyers
These top agents have developed a technique andare ready... they become so much more effective as
skill set that allows them to maintain a steady streaman agent. They're able to grab that buyer sooner,
of qualified buyers for their listings. They get moreestablish a relationship with them, and control their
traffic because of it, and that generates offers forhome buying process. This gives the agent the
their listings.benefit of having a strong supply of buyers for their
Their secret is simple! They're patient and they knowlistings; while eliminating that buyer as a possible
how to work the time-cycle of home buyers.buyer for the For Sale By Owner and the other
Simply put, home buyers don't buy on a whim. It's aagents' listings. When that buyer graduates from
long, drawn out process for them that usually lasts"GATHERING INFORMATION" to "RIGHT NOW"; the
around 6 months... but can take as much as 2 yearsagent is already in place.
for some.In the Edmonton real estate market, where I work
The process is divided into 3 major stages.as a Realtor, the competition for buyers is very
Stage 1. DREAMER Buyers (100% of buyer leads)intense right now. We're in a declining market and as
This is the crowd that makes up most open housesuch very few people are wanting to buy a home
visitors, calls the most on real estate ads, and visitsright now. By using this technique of securing the
the show homes out there more. They usually aren'tbuyers in the GATHERING INFORMATION stage, my
pre-qualified with a lender, and they don't really knowteam and I are able to sell our listings quickly and for
what they're looking for. You'll identify them whenmore money than our competitors. We get the lions
they say "we're just in the early stages". They don'tshare of the buyers, while the other agents get the
know what kind of a home they will buy, and that'sleft over scraps and the For Sale By Owners get the
the question they're trying to answer.crumbs.
Stage 2. GATHERING INFORMATION Buyers (50%Admittedly, the administration and management of
of buyer leads)this sort of a system is huge and takes a great deal
These are the people who know that they're goingof time and organization. Currently, we have more
to buy, and they know what they're going to buy.than 1,000 people in our buyer incubation system.
They've probably been to the bank to get approved,This means that we're sending literally thousands of
but there's something stopping them from makingemails every week, talking to 100's of people every
that buying decision. Usually it's a lack of marketweek, and working excrutiatingly hard to stay on top
knowledge; they aren't sure how to actually buy aof everything. But that's what this business is all
home and they haven't developed the knowledgeabout, and why people hire us!
and skills to identify good value in a particular home.The results show in the performance of our team.
But they definitely don't have a time frame for theirRanked #2 in our office of 100+ agents after only 6
purchase.months of this approach, and spending absolutely no
Stage 3. RIGHT NOW Buyers (10% of buyer leads)time "cold calling" or sitting open houses. We work
These are the gems. They know what they want,with the buyers, the real buyers who are ready to
they're approved to buy it, they can identify valuebuy now... but first contacted us 3-6 months ago.
when they see it, and they have a deadline to buy. IfWhen we put a house on the market for our sellers,
they walk into the right house... they're going to buyone of the first thing we do is send an email or call
it.anyone in that massive database who's looking for a
Most Realtors and almost all For Sale By Ownersimilar home. Remember, this is someone who's
sellers are forced to work with the RIGHT NOWexpressed an interest in this type of home... someone
buyers, the ones who want a home this week or thiswho the other agents and For Sale By Owner sellers
month and aren't already working with anotherare going to spend weeks of time and 1,000's of
Realtor. It's this limited exposure to the buyersdollars trying to get in touch with. We already have
market that puts a damper on the sale of the home...their contact info... and we're going to call or email
fewer buyers!them the day the home is listed.
The problem is that almost all For Sale By OwnerDoesn't that just make sense?