For a quick property sale it is important to understand the different types of buyers and which of these your home will appeal to.
In the competitive real estate market, agents need to have an advantage when selling property. Getting in the mind of the perfect buyer and figuring out who they are and why they would want to buy a specific home is key.
“When marketing a home, one needs to try and determine the profile of the buyer for the specific property. In order to attract the right buyer the marketing needs to be focused and directed to that targeted audience which will result in a quicker sale, not leaving the property over exposed. We at Engel & Völkers make use of various analytics & tools in order to determine this buyer pool so that our sellers receive optimal exposure for their properties” says Craig Hutchison, CEO Engel & Völkers Southern Africa.
Sellers and agents need to establish and understand the persona of the buyer they are dealing with which will assist in determining the needs of the buyer and how they should be approached. We take a look at some buyer personas and what they entail.
1. Move-Down Buyers
• High net worth professionals who are looking to downsize from their larger homes after they have retired or their children have moved out.
• They are generally selling their luxury homes and buying smaller, pared-down homes that are easier to maintain, they’ll appreciate plenty of amenities and easy access.
• These buyers will enjoy being in a quiet location that offers easy access to parks, trails, coffee shops and restaurants.
2. First-Time Buyers
• Middle-class families who are looking for a foot in the door to home ownership based on affordability.
• These buyers are looking for a comfortable, liveable home and are likely to be drawn to homes with large gardens that provide plenty of room for gardening and space for children to play.
• Generally want at least two bedrooms and two full bathrooms to accommodate expanding families and room for visitors to stay.
3. Move-Up Buyers
• Professionals who want to trade their existing homes for larger, more luxurious houses due to a change in income, new baby or marriage.
• They are looking for a home that allows them to live the lifestyle of their dreams.
• Their must-have features include modern kitchens, luxury bathrooms and a pool and will appreciate modern, high-tech design.
4. Luxury Buyers
• High net worth individuals or international professionals who may have several homes.
• They are happy to spend the money needed to secure a home that offers luxurious amenities such as heated floors, open floor plans, chandeliers and large bathrooms.
• Often look at many homes before committing to a specific location and may have a long list of requirements for their new home.
5. Investor Buyers
• High net worth real estate investors who specialize in buying and selling homes. These buyers often have many homes in the area and want to purchase another home to flip or rent to middle-class families or professionals.
• When it comes to purchasing a home, these buyers are receptive, sharp and attentive, although they are generally also thrifty and savvy.
• For an investor buyer, one of the most important traits a house can have is a good location at a decent price.
6. Retail Buyers
• This is the average home buyer who is in the market to purchase a primary residence.
• They are buyers who have access to finance or enough money saved up to purchase a property for cash.
• An important aspect for this type of buyer will be the home’s price and their level of affordability as well as the proximity to their work and amenities such as schools, medical facilities and shopping centres.
7. Buy-to-let Investors
• A property that can generate revenue while it appreciates in value over the long-term is the main concern for this buyer.
• They are looking for a secure permanent investment that will be relatively low maintenance for instance sectional title units that require little or no renovation and can be rented out immediately to start earning income.
• In some cases they are also looking for larger homes that can be rented to upmarket tenants or students in a commune set-up.
8. Rent to Own
• Is normally a buyer who wants to buy but is not ready to do so yet.
• This buyer typically has credit issues and will need time to fix it up in order to qualify for a loan.
• This is also called a lease option buyer.
9. Fix-and-flip Investors
• Full-time property investors looking for property that is selling substantially below the market norm in a specific area.
• This type of investor will be looking for a property in need of renovation that they can restore and sell in a reasonably short period of time for a return on investment.
• They are looking for the lowest prices because their rehab costs are higher than most other buyers.
10. Relocation Home Buyer
• This buyer is rock solid and qualified to buy.
• They know they only have a limited amount of time to find a property so they want to see as many houses as they can.
• They want a professional to help find them homes, and show them as many as possible.
11. Young Millennial Buyer
• These buyers do not necessarily rely on seasons and school schedules to purchase homes. For this group of buyers, the market is on at all times.
• They are very active buyers, and most importantly millennial want suburbs that feel like a city, they are fully connected, visual and will view listings at any time of the day.
• Most of these buyers prefer seeing homes that appeal to them on their own time.
In summary, it is of vital importance that expertise and time is spent on the pre-marketing of a property, to ensure the best results. Which type of buyer would you be?
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