4. Buyer Service

4. Buyer Service 

Services buyers and sellers want



Client and customer service



Needs assessment



Finding properties



FSBO



Negotiations as a buyer service



Effective follow through



Lending



Fair housing law 4-1

65

Buyers Want Help 1. Finding

the right home (50%)

2. Negotiating price and terms (13%) 3. Determining sales prices of comparable homes (10%)

4-2 66

Sellers Want Help 1.

Selling the house within a specified time frame (25%)

2. Finding a buyer (22%) 3. Marketing the home to buyers (16%)

4-3 66

Stages in a Real Estate Transaction 1. 2. 3. 4. 5.

Needs assessment Property selection Viewing properties Negotiating Follow through 4-4

68

Needs Assessment

Buyer - client Buyer’s needs Buyer can talk freely Advise buyer on alternative solutions

Buyer - customer Seller’s needs Full disclosure to seller Focus on the seller’s property 4-5

68

Property Selection

Buyer - client Find best property Leave no stone unturned Give first look at new listings All properties are available

Buyer - customer Get best offer Show listed properties only Lower level of responsibility Limit properties to buyer’s affordability range 4-6

70

Skill Builder Tip Recommend

inspections Get a C.L.U.E. Report

4-7 71

Viewing Properties

Buyer - client Okay to give advice Educate the buyer

Buyer - customer Material facts only Protect the lesser (client)

4-8 72

Skill Builder Tips for Safety          

Ask prospects to stop by your office Introduce clients to colleagues Let others know where you are going Call the office once an hour Establish a voice distress code Preview the property Carry only non-valuable business items Park at the curb Leave the front door open wide Let the prospect walk ahead of you 4-9

72

Negotiating Buyer - client  Educate the buyer  Negotiate for the buyer  Provide price counseling  Contract  Financing  Continue services  Strengthen position  Share all info about seller

Buyer - customer  Material facts only  Negotiate for the seller  Price (CMA to support the seller)  Contract  Financing  Continue services  Strengthen position  Share all info about buyer 4-10

74

Follow-Through

Buyer - customer Follow through on behalf of the seller

Buyer - client Follow through on behalf of the buyer

4-11 76

Providing Lists for Services 



Provide only a list and allow the client to select the other professional, e.g. home inspector, title company, appraiser, and others Do not overstep boundaries to provide legal advice 4-12

80

Finding Properties  MLS  Fax

broadcast *  Personal solicitation *  Internet  FSBO publications

 FSBO

file  FHA / VA foreclosures  Auctions  New construction  Others

* Remember do not call, fax, and e-mail laws 4-13 81

FSBOs      

Prepare your buyer-client in advance Contact the owner and disclose that you are a buyer’s representative If the buyer is compensating you do not make your compensation an issue with the FSBO Secure all public information about the property and prepare a CMA for your client Do not provide advice or guidance to the owner Keep the negotiation on price as simple and straightforward as possible 4-14

83

Foreclosures  Forced

 Not

sale of real estate to repay a debt

auction sheriff’s sale short sale judgment lien REO

for every buyer

4-15 85

New Home Construction 

Generally not listed on MLS



Learn about the product and the construction process



Factors

 87

-

Registration

-

Financing

-

Active involvement of buyer

-

Contract and closing

-

Sales representative

-

Pricing and negotiations

How can the buyer’s representative help a buyer-client

4-16

Risk Management     

Manage expectations Do not promise what you will or cannot do Keep your presentation realistic and balanced Keep buyer-clients informed Do not “fuzz” the truth

4-17 89

Skill Builder Tip 

Document the transaction with copies of agreements, memos, e-mails, and notes about conversations with clients, customers, other agents, and service providers



Use the same file names and structure for both hard copy and digital files 4-18

89

Lending – Subprime, Predatory, Fraudulent, High Risk 

Subprime – higher costs for higher risks



Predatory - abusive practices that prey on the uninformed, financially-inexperienced, cash-poor



Fraudulent – deliberate criminal activity



High risk – right for specific circumstances 4-19

91

Skill Builder Tip: Red Flags  Request

to calculate a commission on amount different from purchase price  Request to raise the property price in the MLS after contract  Arrangement to route money from the seller to the buyer through a third party  Fabricated income and employment verification or forged signatures 4-20 92

Choosing the Right Loan Why? Payment flexibility, maximize cash flow, minimize impact of rental vacancy, leverage.       

Interest-only Buy Down Mortgage GPM Convertible ARM Fixed period ARM Two Step Option ARM 4-21

92

Federal Protected Classes -

Race Color Religion Sex Handicap Familial status National origin

Everyone is protected by Fair Housing Laws. State, county, and municipal laws may add classes

4-22 96

How Will Your Respond If the buyer asks…   

What is the racial composition of this neighborhood? What kind of people live here? How are the schools in this area? Are they good? Are the schools integrated? Why don’t you just pick out some nice properties in a safe area for us? Would you live here?

4-23 96

Fair Housing Self-Assessment  Meeting

the prospect for the first time

 Qualifying

the prospect

 Choosing

properties

 Showing

properties

 Performing

follow-up activities

4-24 98

Building Blocks 

What could you say to explain the advantage of services provided by a buyer’s representative in: -

Needs Assessment

-

Property Selection

-

Viewing Properties

-

Negotiating

-

Follow-through 4-25

100