Working with Your Client’s Budget

What do you do when your buyers have big dreams for their new home but a smaller budget in reality? Working within a client’s budget is an important skill for real estate professionals, but it isn’t always easy. If your clients stretch too far to afford a house, they could end up with buyer’s remorse or be dissatisfied with their real estate transaction. Here are some things you can do to help your clients work within their budgets:



  • Encourage your buyers to get mortgage pre-approval. This can work to everyone’s advantage in the long run. Your clients will know exactly how much buying power they have and will also get some paperwork and red tape out of the way on the front end. When it’s time to make an offer, the pre-approval can help reassure sellers that financing won’t present problems.


  • Only show properties with asking prices that fall within their budget. Showing homes over your clients’ budgets may only frustrate and discourage them.


  • Have a candid conversation with your clients about what home features they are willing to compromise to stay within their budget. For example, they may not be willing to compromise on the number of bedrooms but might forego walk-in closets. Or, perhaps they might consider an older home if it would mean getting into their preferred school district. Knowing in advance what their “must-haves” are will help you search more efficiently.


  • Before showing them homes, help clients understand what to expect from their housing budget. Send them links to current listings in their price range, so they’ll understand what type of amenities are available in your area for that dollar amount.


  • Consider fixer-upper properties or financially distressed listings. Homes that need a little TLC are often better buys than homes in pristine condition. Find out how open your clients are to remodeling and redecorating, then line up some reliable contractors who can give accurate estimates and time projections about what the work will require.


  • If your clients have their hearts set on a particular location or neighborhood they can’t afford, look for listings on the perimeter. Sometimes homes near desirable neighborhoods are priced lower but still have many of the same benefits and appeal.


If your clients are concerned about stretching their budget to afford the home they want, an HSA home warranty can help reassure them that they won’t have to worry about the potential expenses of covered breakdowns and malfunctions after closing. An HSA home warranty gives your clients a plan for handling unexpected component failures that inevitably happen due to normal wear and tear. In addition to budget protection, HSA gives your clients a resource for reliable, qualified service professionals for covered breakdowns. HSA home warranties can give buyers important peace-of-mind and increased confidence and satisfaction with their transaction. To find out more, contact your HSA Account Manager or visit today.