Why do buyers never say what they are looking for?

Question

I have been working in Real Estate Investment since October and have made a few sales so far! One thing I am facing daily is buyers giving me their buy box and when I have something that fits, they tell me a completely different story. It's not about the rehab, either. How do you get someone to tell you what they are looking for? What do you do to get past the "if it pencils" phrase and they do not explain further? Any help or advice would be great!

Janice Carter · Answer

It sounds like you may be working with a lot of new investors in which case, you have to be willing to educate them or walk away and focus on more decisive buyers.

Joe Loveday · Answer

Because humans are emotional beings. You are asking them about their logical buy box, not what will help them sleep better at night. Find out what they are really looking for, not just what mattress they want to stuff their cash into

Theresa Harris · Answer

My guess is many of them don't really know what they want or what they want doesn't exist in their price range.

Alioune Camara · Answer

Matthew — oh man, I feel you. That’s one of the most frustrating parts of working with investors, especially newer ones.

The thing is, most buyers don’t actually know what they want until they see it. “If it pencils” becomes a catch-all because they’re scared of committing to specifics, or they’re still figuring out their numbers and risk tolerance.

What’s worked for me: ask super specific, scenario-based questions. Stuff like:

• “Would you pay X for a 3-unit with Y rent, even if it needs Z in repairs?”
• “If the numbers are slightly below your target but the location is strong, is that okay?”
• “What’s your absolute deal breaker — cap rate, condition, or neighborhood?”

“Would you pay X for a 3-unit with Y rent, even if it needs Z in repairs?”

“If the numbers are slightly below your target but the location is strong, is that okay?”

“What’s your absolute deal breaker — cap rate, condition, or neighborhood?”

The goal is to get them talking beyond generalities. Also, show them comps and run a few real-life examples. Once they see numbers and options side by side, the vague “if it pencils” usually turns into concrete preferences.

Honestly, it’s a patience game. The more specific you make your questions, the more honest answers you get.

Rick Albert · Answer

This is the nature of the beast. I have a listing where it met all of their criteria but needed certain down payment and monthly payments and I was able to structure the deal and they still didn't bite. Chances are they are on the fence about buying.

What you could do is send them a recap email of what they are looking for. So then when something changes you can ask them and reference the email.

I would also set realistic expectations. One of the hardest parts about our job right now is we have to combat against these "gurus" that are saying there are remarkable deals out there and these wild structures that if we encourage some of these as agents we can be in hot water.

I would also use your past clients or personal investments as case studies on why something does and doesn't work. Most of my investor clients are house hackers so I can lean on my past experience as a 2x house hacker to say "this would do well as a house hack because of a, b, and c and that's what I did for my property."

Joe Watson · Answer

I don't know exactly where you are running into issues. I find that investors are much less picky than home buyers. If it makes market rent now and it is selling at market value (cap rate) then their is no reason to say no. Maybe work on getting them to yes?

Investors I work with don't waste time looking for a deal, they are interested in leveraging a down payment to collect rents on a property and either they want cash flow or they want equity.

Why do buyers never say what they are looking for?

Most Popular Reply