It's simple logic.
log·ic [loj-ik] –noun | 1. | the science that investigates the principles governing correct or reliable inference. |
| 2. | a particular method of reasoning or argumentation: We were unable to follow his logic. |
| 3. | the system or principles of reasoning applicable to any branch of knowledge or study. |
| 4. | reason or sound judgment, as in utterances or actions: There wasn't much logic in her move. |
| 5. | convincing forcefulness; inexorable truth or persuasiveness: the irresistible logic of the facts. |
logic. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved August 02, 2007, from Dictionary.com website: http://dictionary.reference.com/browse/logic
A man was walking down the street when a friend approached him and asked "Hey, where you going?". The man replied "I am going down to the college to take a course in logic." The friend asked "Logic? What's logic?" to which the man replied "Well, do you own a weedeater?" The friend responded with "Yea, I own a weedeater." The man stated "Then that means you have a yard right?" to which the friend responded "Yes, I have a yard." The man said, "Well that means you have a house right?" The friend replied "Yes, I have a house." The man said, "Well that means you have a wife right?" The friend said "Yes, I have a wife." The man retorted "Then that means you are a heterosexual right?" to which the friend responded "Yes, I am a heterosexual." "Well", the man replied, "That is logic!". The friend was so amazed by this reasoning that he stated "WOW! That is really cool! I think I will go sign up for that logic course too!
So the friend headed down to the college to get signed up for the course when another of his friends approached him and asked where he was headed. The friend responded that he was going to the college to sign up for the course in logic. His friend asked "Logic? What's logic?" to which the friend asked, "Well, do you own a weedeater?" and his friend responded with "No, I don't own a weedeater." The friend exclaimed "Well, then you must be one of them homosexuals!"
It's funny how sometimes our clients think that they have chosen the best course of action for their real estate needs and have placed blinders on that are fogging their vision of the proper and logical steps that they might need to take to best accomplish their goals in real estate.
A buyer that insists that they do not wish to speak to any lenders until they have found the home of their dreams basing their pricing on nothing more than the cost of the mortgage and not taking into consideration other factors that will affect the amount of monthly costs for owning the home such as taxes, insurance (homeowner's and/or private mortgage), the amount of interest, closing costs etc, etc.
Educating a buyer that is thinking in this manner can sometimes be challenging and even daunting and we MUST as REALTORS® take the time and effort to ensure that the buyer can be not only approved for the funds but to also ensure that they understand all the ramifications and costs involved with purchasing the home but to also keep the home after the sale and maintain it as well.
Allowing a buyer to preview homes that might eventually be well out of their price range can have some very damaging effects to both the buyer and the REALTOR. For instance, showing a buyer a home in the $500,000 price range to only find out later that the buyer's income and debt ratios will not support anything more than say $250,000 will waste everyone's time (including the sellers and the listing agents) and the buyer will find that, in most cases, the difference in the style, quality, location of these two different price ranges will never satisfy that buyer and they will be disappointed with any homes you show them in the price range that their ratios will support.
Unless the buyer is a cash buyer they will need to get approved at some point anyhow. So the logical thing to do is to take the proper steps in the order that they should be taken to ensure that the least amount of time, effort and stress are properly utilized.
It's simple logic...make sure they don't leave out everything in between the decision to buy a home and finding the right home. The right home is the one that the client can logically support without becoming a slave to the home. If after making all the necessary payments to ensure that they keep the home in good standing they cannot afford to fix the transmission that went out, repair the a/c that broke or take the children to the dentist then they can't afford the home.
Make sure and ask if they own a weedeater and ensure that they don't think it means they are a homosexual if they don't!
THE ELEVATOR IS BROKEN MAKE SURE THEY TAKE THE STEPS!