Developers need to support their buyers with help when it comes to arranging finance.
Developers can help secure finance for their buyers by engaging and communicating with them early in the sales process to ascertain where the buyers are at with the finance.
The key questions a developer should be asking buyers
- Have you started a conversation with a finance broker to arrange finance? This is important to know from the outset as it determines how close to commitment the buyer may be to committing to a purchase
- Do you know what your budget looks like? If the prospective purchaser has a good understanding of their budget, they are better placed to make an informed buying decision when it comes to a property acquisition
- Have you discussed the deposit required for the purchase? Knowing your buyer’s position provides an insight as to what level of buying power they may have
- Are you eligible for a First Home owners Grant? With eligible FHOG buyers there are significant government benefits to assist them to get over the line and acquire their first property.
These types of questions start to trigger off a conversation with potential purchasers, to engage them in their buying decision and also support your efforts to sell the most appropriate property to suit their needs, which ultimately results in a sale sticking through to settlement.
It also demonstrates a deeper level of discussion with the client and shows a genuine desire to assist them from marketing through to settlement.
Why a broker is your best option
The 2nd important aspect is to engage the services of an experienced and qualified mortgage broker. An experienced broker can provide useful tools and relevant information to buyers to help them arrange finance for their purchase.
The MFAA (Mortgage Finance Association of Australia) have a list of qualified and experienced brokers to assist. This also provides a degree of separation for the client as the mortgage and finance broker has access to various lenders which, then provides the buyer with choice of lending options.
Source: The Urban Developer