Use these real estate agent scripts for buyers that need to make stronger offers in low housing inventory markets by making cash offers or by obtaining stronger financing through bridge loans, hard money financing, or borrowing cash from a family member or friend.

These scripts for buyers will help you strengthen your buyers’ offers during this low-inventory market. The key is to secure your buyers better financing options than a conventional home loan. Today, we are going to dive into these conversations that you need to be having with your buyers.

VIDEO: Scripts for Buyers That Need Stronger Financing

Conventional forms of financing are not cutting it today

Usually, conventional forms of financing and loans are acceptable … in most housing markets. Unfortunately for many home buyers, this low-inventory home market we find ourselves in is not hospitable to these forms of financing. With such high competition and multiple offers, real estate agents must find ways to “sweeten” their buyers’ offers.

Up front, in your buyer consultation, you must set proper expectations. Explain to your buyers that in order to have the best chance at having their offer accepted, they need to look for a source of cash.

Scripts for buyers: How it works

Follow this outline/script for buyers to explain how exactly this process of asking for money can work in their favor. And, how it works in the favor of their friend/family member, too.

  1. Do you have access to a lot of cash to borrow for a short period of time? (The whole idea is to be able to buy the home with cash in order to be more competitive.)
  2. Maybe a friend, or a family member … someone you have a good relationship with. This is a win-win proposition — you are not taking advantage of anyone in this scenario!
  3. You aren’t asking for cash for free. Essentially, this is an investment opportunity for your friend/family member. They get their money back (and then some) in a matter of months.
  4. For example: Say you are asking for $500,000 for 60-90 days, to give you enough time to get your offer accepted on a house. Then, you turn around and refinance, and are able to pay them back ultimately $520,000. Your friend/family member just made $20,000 in the matter of a few months.
  5. When you refinance, you will be able to set up your monthly payments and you’ll be able to pay off your friend/family member. If for some reason the house only appraises for $500,000 and you still owe $20,000 to your cash source, you can set up a long-term payment plan with them.

What about hard money loans?

Another great option for buyers right now is a hard money loan (aka a private bridge loan.) It is important for real estate agents to know several hard money lenders for this reason. These are people who will loan money for you, usually on the short term. The interest rate is usually 5-6% above the going rate of a conventional loan. Your buyer can get into the house they want, lock in, refinance, and pay off the hard money loan.

Typically, hard money lenders need to be local. If you don’t have any hard money lenders in your trusted vendor list, reach out to local flippers or local agents that deal with new construction. Having these contacts in your pocket over the next several years will be very important. When using your scripts for buyers, be sure to educate them on this option.

Learn more

  • Take our Buyer Lead Conversion online course. Learn how to leverage your networks to get buyers on your side. We’ll teach you all the scripts for buyers, tips, tools, and techniques you need to address buyers’ unique needs, get them in the door for a proper appointment, make the most of your consultations, and get them on board as your clients.
  • Join the Real Estate Agent Round Table. We are always posting fresh content, including market updates, free templates, and host dynamic discussions with the industry’s top producers.
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