How do you manage a first-time buyer's unrealistic expectations?

First buyer or first sessions is the main goal of any product manager, cause if you fail to deliver value proposition on the first session, the second will likely be the same. You can ask your customer a couple of questions on the start, it is usually called quiz. Filling them, you will increase trust and can add motivations for your user to finish the buying process. But be careful, ask only questions, that are about the pain the user is planing so relieve with your product, otherwise you can loose him.

Communicate Clearly: Use simple, straightforward language to explain processes, timelines, and potential obstacles. Set Realistic Expectations: Be honest about what is achievable, avoiding over-promising. Educate the Buyer: Provide information and resources to help them understand the market and the buying process. Offer Solutions: Present alternative solutions or compromises when their expectations cannot be met. Maintain Regular UpdToess to manage their expectations and build, keep them informed throughout the process trust.

In my area, we are still in a seller's market meaning homes are selling quickly, many are selling over list price and the seller is offering very little in concessions. These are facts that can be shown to buyers in the initial buyer consultation. If the buyer understands the market conditions upfront then they are prepared to act quickly when the time comes to make a solid offer on a home.

Educate them on the facts. Any, and almost all buyers have unrealistic goals or expectations. I ask for a clarification of what they want. Ex: 3BR+ 2BA+ 1700SF+ 2 car garage+. Add they want school district A. Ideally S of Main. Their Budget: $400k & under. I run a closed sales report with those specs andthe average price in their target geography for these specs is $475,000. Sio now I can present them with the facts. It's far more difficult to argue with the facts than an agent's opinion. In addition I might present that the same facts (N, S, E or W) of their target come in at $425,000 on average. Still out of the $400k target but there likely are some potential targets that actually meet most, some or all of their hope/want list!

Para manejar las expectativas poco realistas de un comprador primerizo, es fundamental educarlos sobre el mercado inmobiliario. Esto implica explicarles de manera clara y detallada aspectos como los precios actuales, las tendencias del mercado, los costos adicionales involucrados en la compra de una propiedad, así como los tiempos y procesos necesarios. Al brindarles información objetiva y realista, se les ayuda a comprender mejor lo que pueden esperar y a tomar decisiones informadas. Es importante fomentar una comunicación abierta y honesta para establecer una relación de confianza y guiarlos hacia una compra exitosa y satisfactoria.

In my experience every potential buyer comes in wanting a home priced at X and a payment that equates to 70% of X. I like to let the buyer be the one to look at the payment and decide to raise or lower the budget when possible. It is all about illustrations and education.

I've learnt to listen! I once lost an upsell opportunity because I felt my client was unrealistic with her demands. Well, after paying me, she went off and paid someone else to meet those extra demands. The first time buyer's expectation may sound unrealistic, but if you take some time to dissect closely, there may just be a market need that could be met by you or an upsell that could be initiated. Being a first time buyer doesn't mean the client cannot afford to pay extra. If value is clearly articulated, same client may be willing and ready to pay more to meet their full expectation.

Once of the clearest boundaries is given when qualifying a borrower. It's important to explain to the client that as their price point changes, so too, can their property taxes and homeowner's insurance. If they are putting down less than 20% they may also have mortgage insurance that changes with this new home. I ask clients to be in touch with me before they make an offer so that I can run numbers for the new home that they are looking at to determine if any of the changes put them at jeopardy of qualifying. It's a quick exercise for me, and it ensures that they have an up to date pre-approval with current rates that a realtor can rely on when submitting their offer.

In my experience as a lender every buyer comes to me wanting a house that costs X and a payment that equates to 70% of X. It isn't our job to tell someone how much house to buy or what payment they can afford so much as illustrate the numbers and help each individual buyer find the equilibrium they are comfortable with.