Types of Buyers To Avoid When Selling Property

October 30, 2011

When selling your property, it’s important that you have a full understanding of the types of people who may be interested in purchasing your real estate. Understanding the unique characteristics of certain buyers will help you to streamline the selling process and ensure that you avoid a long, drawn-out sale that costs you both time and money.

There are four main types of buyer. And within this article, we’ll look closer as these four buyer types and detail the traits that will help you pick them out.

The Bargain Hunting Buyer

These buyers will usually be attracted to homes that are not priced correctly, or have structural problems that prevent them for retaining full market value, so most sellers won’t encounter this kind of buyer. The bargain hunting buyer is usually a property speculator or someone who doesn’t actually need to buy the property.

They will likely put in a low-ball offer very early on in the purchase process and wait for a reaction from the seller. If you immediately rejection an offer from the bargain hunting buyer, they may wait a while before putting in another offer, which is usually nothing more than their original valuation. Try not to get bogged down in this game, as they are simply waiting for you to lower your price.

The No Money down Buyer

Those looking for a fast, trouble-free home-selling process should be very wary of buyers that are 100% reliant upon financing in order to complete the purchase. The current financial problems within North America mean that it is now very difficult for buyers to qualify for loans. And even if the buyer is able to qualify a loan, their lending institution may not agree with the valuation of the property, and therefore they could either force you to lower your price or walk away from the deal.

The Bully

This type of buyer is often encountered by people trying to selling their homes. They will find numerous issues with your property and then try to get you to lower your valuation based on these issues. The best way to avoid getting involved with this type of buyer is to hire a professional home inspector who can create a structured report on the quality of your home. You can then base your valuation on the home inspector’s findings and prevent questions from forceful buyers. Often when presented with a solid valuation that is based on comprehensive expert information, the bully buyer will either give up or meet your valuation.

The No-Viewing Required Buyer

On rare occasions, you may run into potential buyers that put in an offer without having visited the property first. These buyers will likely take their time with the process because they aren’t motivated enough to go and view the property for themselves. If you run into this situation, don’t simply decline the offer. First, ask the buyer to set up a viewing appointment. If they reject your viewing offer and you still wish to sell your property to the buyer, you must proceed with extreme caution and examine all documents closely to ensure that both parties are well aware of their obligations.

Recognize the Signs…

Learn to recognize the signs of a bad buyer beforehand and you will maximize your chances of achieving a high value deal that matches your every expectation. Home selling doesn’t have to be complicated. Avoiding dealing with unsuitable parties can help you reduce the stress of the home selling process.

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