It’s similar with mortgages. Remember the adjustable rates we’ve had—the 5.1 and the 7.1? They’re actually semi-fixed for the first few years and then adjustable. In order to determine if one should have one of these loans, I usually have a discussion with my clients where we discuss the following: their risk aversion; their long-term goals; and if they’re planning to stay in a home five years or less. Basically, I do a bit of an assessment, and I explain the pros and the cons for each loan, then they tell me which one they’re comfortable with.
Question: A lot of people try to do it themselves. What are some things they might try?
Tyler-Pires: One thing is shopping online with different lenders. That has a lot of pitfalls because the loans will not be explained properly. It’s just difficult to maneuver around and understand those Internet quotes. Online lenders approach you as a one-shot get-all, because you’re probably not coming back. Clients will usually come from that street to mine.
Another thing people try to do first when it comes to real estate is selling their property themselves. A lot of people think they can buy or sell on their own to avoid paying a commission, and occasionally they get lucky and have a good buyer or a good seller, but a majority of the clients that start with a for-sale-by-owner will not close on the sale of their home.
Question: Why would working with a professional like yourself greatly improve the chances of them succeeding?
Tyler-Pires: They would know where to begin when looking for a new home. They would be avoiding the pitfalls, and they would understand the process, and know how to take advantage of the process and the system.
Question: What would you tell somebody to consider in order to be successful purchasing a home?
Tyler-Pires: Generally, I like to spend some time with them up front to really do an assessment of their deep motivations, the reason for their purchase and the reason for their sale, because many times people start looking without really considering the reasons. I may start with a client and they say, “We want to buy a home,” and I say, “Okay, tell me why you would like to buy a home.” Then they say, “Well, we want to have a home for ourselves and our kids, someplace for them to grow up and be happy,” and I’ll say, “Why is this important to you?” As you dig deeper and deeper and deeper, you begin finding the real reason that they haven’t even fully contemplated themselves.
For example, a father had gone through a divorce and he was looking to buy a home, a place for him and his daughters to live when they were with him. As we dug deeper and deeper and deeper, we found out that, at the end of the day, it basically was for fulfillment. It would bring him fulfillment, self-fulfillment, to be able to take care of the needs of his daughters, and to give them the security and peace and stability that would bring them happiness. At the end of the day, when he was successful at bringing them happiness and stability and peace, he would feel that he has done his job as a father. When you start looking at things like that, when you’re looking at the reasons as well as locations and prices, they all factor into what would best satisfy the client.
It’s about helping clients really understand every decision they will make on whether they accept an offer or not. Once they have that perspective, they can make a better decision because now they understand themselves and their reason on a deeper level. They won’t be upset over $1,000 here or $2,000 there, even if the other side is being a little aggressive. They will know intrinsically why they decide what they decide. It’s not for a surface feeling. It’s because this is their goal and the ultimate deep need they’re trying to solve. Then they will clearly see the path that will take care of that need and not be distracted by anything else.
Question: Summing up, what recipe has made you so successful in the mortgage business?
Tyler-Pires: Knowledge is power! Marrying together knowledge, love of people, and the deep desire to help are what has brought me great satisfaction over the years. Looking at each transaction from my client’s point of view, being able to help demystify each step, and watching the exuberance of my clients when we close their home sale or purchase is truly magical.
For more information, visit Danielle Tyler-Pires, Keller Williams Realty
