According to the National Association of REALTORS®, nearly 40% of agents report that buyers find the homebuying process to be more difficult than expected. It does make sense, though: Buyers are usually making one of the biggest investments of their lives and can be rightfully overwhelmed in the process. Without proper guidance, they may have misconceptions about what they can afford or the timeline of their purchase.
Proactively communicating the homebuying process and managing buyer expectations is key to streamlining the transaction for both the buyer and the agent.
As the broker, you have a responsibility to equip agents with the tools and insights they need to manage client expectations effectively, ensuring each transaction is smooth and crucial steps are communicated to the buyer. Understanding how to meet expectations helps create a more efficient and positive experience for both agents and their clients.
Steps for Brokers to Help Agents Set Realistic Expectations
You play an important role in shaping agents’ approach to transactions. When it comes to helping your agents manage buyer expectations, here are a few steps that can help:
Provide Clear Communication
The most important factor in managing buyer expectations is consistent and transparent communication. Buyers need to feel confident that their agent is not only knowledgeable but also keeps them informed throughout every step. Agents should regularly update their clients about changes in the real estate market and provide feedback from showings. It’s also important to communicate any issues that could arise during the homebuying process.
As the broker, you set the tone on the importance of communication. Agents should be encouraged to set up regular check-ins with clients and be candid about challenges. Emphasize your brokerage’s best practices, but also, model the kind of communication you want your agents to show to their clients.
Market Education
Limited market knowledge is a major contributor to unrealistic expectations among buyers. Agents should be able to provide clients with insights into market trends, current inventory, interest rates and median home prices to guide their decision-making.
One of the first tools you can provide to your agents is up-to-date knowledge. Brokers can use platforms like the Multiple Listing Service (MLS) and NAR’s new metro market statistics dashboard to help relay market-specific insights to agents.
Brokers should encourage agents to use their local association’s data and market reports regularly to stay ahead of buyer expectations. NAR’s annual reports and resources also provide agents with statistics on price changes and inventory levels, which can help paint a better picture of the market for buyers.
Having this knowledge isn’t enough though. Agents should attend training on how to present data to their buyers in a way that is accessible and easily understood. Let agents troubleshoot their presentations with you so you know how they’re approaching market stats with their clients.
Train Agents on Financial Realities
A common area where buyers have unrealistic expectations is in financing the home purchase. Agents need to make sure that buyers understand the limits of their purchasing power early in the process.
Agents need to ask questions of their clients to gain a fuller picture of their financial situation. Discussions should include loan pre-approvals, fluctuating interest rates, and what it costs to own a home—mortgage insurance, property insurance, taxes, maintenance— the purchase price.
As the broker, you can also encourage agents to partner with mortgage experts who can provide buyers with accurate pre-approvals and walk them through the financial obligations of the homeownership process. These numbers are essential for agents to manage expectations and ensure clients understand what homes are within their budget.
To make the financing conversation easier, brokers can bring in mortgage brokers and lenders to present workshops or speak at meetings. You can also provide a list of verified and reputable mortgage lenders to your agents.
Set Realistic Timeframes
Many buyers are unaware of how long it takes to negotiate and close on a property. Agents should ensure that clients have a realistic understanding of the time commitment required, especially if they’re working in competitive markets where bidding wars could delay the process.
Train your agents to explain the typical timeline for each phase of the transaction upfront. Make sure to work from start to finish—home search, negotiating offers, home inspections and closing. For example, in the Orlando, Fla., area, home buyers should expect an average of 30-60 days to close, depending on the type of financing and the property’s condition.
Prepare Clients for Compromises
Buyers may also have a set list of “must-haves” in mind when they begin their search. It’s important, however, for agents to help clients prioritize their wishes. Not every buyer can afford a home with all the desired amenities, and some sellers may be reluctant to compromise.
Flexibility is a key talking point. You can help your agents learn how to have this conversation, and you can coach them on providing their buyers with options when it’s time to start showing homes. Help them explain to their buyers the importance of flexibility, whether on location, size or features.
Agents can help set expectations by showing clients a variety of properties within their budget and then discussing which features they are willing to compromise on. Sometimes, agents need to help their buyers think outside the box during home showings as well. This enables buyers to have a more realistic view of what they can expect from their search.
Equipping Agents for Success
As the broker, you set the standard for how agents approach and manage buyer expectations. By arming agents with the right knowledge and tools, you can help ensure that the buying process is less stressful and more likely to lead to successful transactions.
By setting the tone early in the process, agents will be better positioned to guide buyers through the real estate market’s challenges, making sure that clients feel confident and guided every step of the way.
