G R I Marketing Buyer Services Day 2


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  • As we review the above list there are several common themes: Lack of information on the part of the buyer Agent’s failure to communicate Commitment of the buyer has not been earned
  • Asking a buyer to commit to a formal agreement is difficult unless the buyer sees the benefit of committing to you. It’s your responsibility to help the buyer over this hurdle.
  • Some agents may choose to cross out the part that says agent will seek compensation from the buyer as a last resort
  • G R I Marketing Buyer Services Day 2

    1. 2. GRI Marketing – Buyer services <ul><li>Prospecting for buyers </li></ul><ul><li>Phone opportunity </li></ul><ul><li>Creating buyer expectations </li></ul><ul><li>Buyer representation </li></ul><ul><li>Showing and selling property </li></ul><ul><li>Handling stalls and objections </li></ul><ul><li>Relocation buyers </li></ul><ul><li>Property inspections </li></ul>
    2. 3. Learning objectives <ul><ul><li>Identify potential sources of buyers </li></ul></ul><ul><ul><li>Effectively function as a buyer’s representative by creating realistic expectations with buyers and guiding them through the process </li></ul></ul><ul><ul><li>Successfully conduct an open house and use it as a prospecting tool </li></ul></ul><ul><ul><li>Professionally show property </li></ul></ul><ul><ul><li>Determine the needs of relocation buyers and provide guidance in the process </li></ul></ul><ul><ul><li>Correctly explain the inspection process </li></ul></ul>
    3. 4. Section 1: Prospecting for buyers
    4. 5. Prospecting <ul><li>REALTORS must always look for business opportunities </li></ul><ul><li>Prospects work on their timeframe – not yours </li></ul><ul><li>You should have contacts or prospects at all stages of the buying cycle </li></ul><ul><li>Some prospects may take longer to mature or develop </li></ul>
    5. 6. Prospecting <ul><li>Let people know that you’re in the real estate business </li></ul><ul><li>Let them know that you’re a Texas REALTOR </li></ul><ul><li>You come in contact with a lot of people; more than 75 percent of people use an agent to purchase a home </li></ul><ul><li>You must be able to discern when your prospect’s needs escalate so that you can adjust your services </li></ul><ul><li>Ask for referrals from friends, family, and those with whom you’ve worked </li></ul>
    6. 7. Buyer sources <ul><li>Where can you find prospects? </li></ul><ul><li>Write an introduction for the different types of prospects listed in your book. </li></ul>
    7. 8. E-commerce and prospecting <ul><ul><li>Integrate it with traditional prospecting and marketing </li></ul></ul><ul><ul><li>Consumers use the Internet for research but not as a replacement for an agent </li></ul></ul>
    8. 9. Why consumers use the Internet <ul><ul><li>Anonymity </li></ul></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Empowerment </li></ul></ul><ul><ul><li>Control </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul>
    9. 10. Internet consumers and the buying cycle <ul><ul><li>Consumers on the Internet enter the buying cycle at different points, but they still want their needs met quickly </li></ul></ul><ul><ul><li>Internet consumers can be just as valuable </li></ul></ul><ul><ul><li>Outreach to the consumer strips away his anonymity </li></ul></ul><ul><ul><li>Traditional selling skills work well with and enhance conversion of Internet customers </li></ul></ul><ul><ul><li>Respond quickly and build rapport </li></ul></ul><ul><ul><li>Don’t assume consumers know what they’re doing </li></ul></ul><ul><ul><li>Follow-up </li></ul></ul>
    10. 11. E-mail prospecting <ul><ul><li>E-mails with ads must be identified in the subject line unless a prior relationship exists </li></ul></ul><ul><ul><li>Ask consumers for their e-mail address </li></ul></ul><ul><ul><li>Maintain an opt-out feature </li></ul></ul><ul><ul><li>The burden of proof lies with the sender </li></ul></ul><ul><ul><li>E-mail lists aren’t as effective as your own e-mail prospects </li></ul></ul><ul><ul><li>Create distribution lists for contacts </li></ul></ul><ul><ul><li>Use a signature </li></ul></ul>
    11. 12. Agent and company Web sites <ul><ul><li>Can help generate new business </li></ul></ul><ul><ul><li>Check for inquiries daily and respond promptly </li></ul></ul><ul><ul><li>The consumer who contacted you on day one is normally lost to a competitor by day three </li></ul></ul><ul><ul><li>Provide a means of contact on these sites </li></ul></ul>
    12. 13. Electronic newsletters <ul><ul><li>Are a cost-effective prospecting tool </li></ul></ul><ul><ul><li>Should include an opt-out mechanism </li></ul></ul><ul><ul><li>Informational newsletters would not fall under the CAN-SPAM purview </li></ul></ul>
    13. 14. Lead generating services <ul><ul><li>Monthly fee provides a specific number of leads </li></ul></ul><ul><ul><li>Quality of these leads is no better than any cold call lead </li></ul></ul><ul><ul><li>Prospects may not have consented to be passed out as a lead </li></ul></ul><ul><ul><li>Consider service cost and flexibility </li></ul></ul>
    14. 15. Search engines <ul><ul><li>Search engines analyze Web sites for keywords </li></ul></ul><ul><ul><li>Position toward the top of a search list is prized and may be costly </li></ul></ul><ul><ul><li>Consider costs of a search engine </li></ul></ul>
    15. 16. Networking links <ul><ul><li>Provide an effective partnership tool for related service vendors </li></ul></ul><ul><ul><li>Exchange links with other vendors so prospects from those sites can connect to your Web site easily </li></ul></ul><ul><ul><li>More link exchanges may give you more exposure to a wider array of consumers </li></ul></ul>
    16. 17. Section 2: Phone opportunity
    17. 18. Phone opportunity <ul><ul><li>A valuable source of business </li></ul></ul><ul><ul><li>Preparation and attitude greatly influence conversion </li></ul></ul><ul><ul><li>In general, the caller will stay on the line after receiving her initial requested information if she perceives the agent can continue to provide value </li></ul></ul><ul><ul><li>Remember why you’re there: to help consumers who may become clients </li></ul></ul>
    18. 19. Preparing for phone opportunity <ul><ul><li>Review ads that will be running on the day of your phone opportunity </li></ul></ul><ul><ul><li>Be familiar with advertised properties </li></ul></ul><ul><ul><li>Run MLS searches with criteria similar to advertised property so you have alternatives </li></ul></ul><ul><ul><li>Have a positive attitude focused on establishing rapport </li></ul></ul>
    19. 20. Preparing for phone opportunity <ul><ul><li>Have online access to help with other properties </li></ul></ul><ul><ul><li>Become familiar with all company inventory </li></ul></ul><ul><ul><li>Create a prearranged list of questions; use the checklist </li></ul></ul>
    20. 21. Anatomy of the call <ul><ul><li>Start with a positive attitude – smile! </li></ul></ul><ul><ul><li>Introduce yourself and ask the caller’s name </li></ul></ul><ul><ul><li>Ask the caller how you can help </li></ul></ul><ul><ul><li>Ask some general questions about his search </li></ul></ul><ul><ul><li>Does the caller have other properties in mind that you could look up on MLS </li></ul></ul>
    21. 22. Anatomy of the call <ul><ul><li>Find out if the caller has arranged for mortgage financing; explain that this is the first step </li></ul></ul><ul><ul><li>Try to set an appointment to see properties </li></ul></ul><ul><ul><li>Invite the caller into your office to do a search through the complete MLS data </li></ul></ul><ul><ul><li>Ask the caller for contact info </li></ul></ul>
    22. 23. TAR marketing materials <ul><ul><li>The TAR Web site has “How I Work on Your Behalf,” a marketing piece that you can customize </li></ul></ul><ul><ul><li>Another marketing flier available on the TAR Web site is “Seven Tips for Home Buyers” </li></ul></ul>
    23. 24. Section 3: Creating buyer expectations
    24. 25. Creating buyer expectations <ul><ul><li>Some people who want to buy a home are not viable for various financial reasons </li></ul></ul><ul><ul><li>Some are not viable because of their personal situation </li></ul></ul><ul><ul><li>Others are viable candidates and still do not buy through us </li></ul></ul><ul><ul><li>Our goal is to prepare the buyer, in any case, to work with us </li></ul></ul>
    25. 26. Why buyers don’t use REALTORS ® <ul><ul><li>Not committed to agent </li></ul></ul><ul><ul><li>Unaware of all of the services agents provide </li></ul></ul><ul><ul><li>Do not understand how the agent can help </li></ul></ul><ul><ul><li>Feel they will save money by not using an agent </li></ul></ul><ul><ul><li>Do not understand the multiple listing of property </li></ul></ul><ul><ul><li>Have a negative impression or have received poor service in the past </li></ul></ul>
    26. 27. Why buyers don’t use REALTORS ® <ul><ul><li>Feel buyer’s remorse </li></ul></ul><ul><ul><li>Can’t reach their agent </li></ul></ul><ul><ul><li>Lack of follow-up by the agent </li></ul></ul><ul><ul><li>Doubt agent’s expertise, knowledge and competence </li></ul></ul><ul><ul><li>Cannot find the right property </li></ul></ul><ul><ul><li>Redirected to another agent as a referral </li></ul></ul>
    27. 28. Creating expectations <ul><ul><li>Make buyers knowledgeable about the home buying process and maximize their experience </li></ul></ul><ul><ul><li>When a buyer knows what to expect as they go along, their angst is reduced </li></ul></ul><ul><ul><li>Create expectations by proactively dealing with difficult subjects, such as FSBOs and buying from a builder </li></ul></ul>
    28. 29. Creating expectations <ul><li>We have two choices: </li></ul><ul><ul><li>Let the buyers loose in the marketplace with no guidance </li></ul></ul><ul><ul><li>Proactively address what they should do and how we can help </li></ul></ul><ul><ul><li>Creating expectations starts at the very beginning. </li></ul></ul>
    29. 30. Section 4: Buyer representation
    30. 31. TAR 2501 <ul><li>The form TAR 2501, Information About Brokerage Services, explains to consumers that if they use an agent as a buyer representative in a transaction that the agreement should be in writing and spell out the responsibilities and duties of each party and compensation arrangements. </li></ul>
    31. 32. Code of Ethics: Article 1 <ul><li>Five articles of the Code of Ethics specifically relate to buyer representation. </li></ul><ul><li>Article 1 – REALTORS  protect and promote their clients’ interests while treating all parties honestly. </li></ul>
    32. 33. Code of Ethics: Articles 3 & 7 <ul><li>Article 3 – REALTORS  cooperate with other real estate professionals to advance their clients’ best interests. </li></ul><ul><li>Article 7 – REALTORS  receive compensation from only one party, except where they make full disclosure and receive informed consent from their client. </li></ul>
    33. 34. Code of Ethics: Articles 12 & 16 <ul><li>Article 12 – REALTORS  paint a true picture in their advertising and in other public representations. </li></ul><ul><li>Article 16 – Respect the exclusive representation or exclusive brokerage relationship agreements that other REALTORS  have with their clients. </li></ul>
    34. 35. Statutory requirements <ul><ul><li>With the first conversation, we are required to inform the buyer about agency choices </li></ul></ul><ul><ul><li>As an agent working with the buyer, you can either be a subagent or a buyer’s representative </li></ul></ul><ul><ul><li>If you are a subagent of the seller, you owe these responsibilities to the seller, and if you are a buyer representative, you owe them to the buyer </li></ul></ul>
    35. 36. OLD CAR <ul><ul><li>Obedience </li></ul></ul><ul><ul><li>undivided Loyalty </li></ul></ul><ul><ul><li>full Disclosure </li></ul></ul><ul><ul><li>Confidentiality </li></ul></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><li>Reasonable care and diligence </li></ul></ul>
    36. 37. Comparison of buyer services <ul><ul><li>Today, buyer representation is the preferred agency relationship when working with a buyer, because it clearly defines your loyalty </li></ul></ul><ul><ul><li>Why are sellers and listing agents increasingly refusing to allow other agents to work as subagents? </li></ul></ul>
    37. 38. Exercise: buyer’s agent & subagent <ul><li>What should the buyer’s agent and subagent do in the following situations listed in your book? </li></ul>
    38. 39. Solve problems for the seller Share all info about the buyer Negotiate to get the best for the seller No financing that could hurt the seller No buyer protection if it hurts the seller Comps only, CMA if it supports seller’s price Strengthen the seller’s negotiation position Only give facts, don’t focus on negatives Protect the seller’s interests Give the facts with no advice Show only properties that match range No duty to keep looking Limit properties Find the best buyer for the seller Keeps focus on seller’s property Confidential info shared w/ seller Full attention to seller needs Subagent Buyer’s Agent
    39. 40. Buyer representation agreement <ul><li>The buyer rep agreement clearly spells out: </li></ul><ul><li>The scope of the agent’s responsibilities </li></ul><ul><li>Compensation </li></ul><ul><li>The expectation of loyalty </li></ul>
    40. 41. Signing the buyer’s rep agreement <ul><ul><li>Why are agreements not signed and what can agents do to make buyers more comfortable in signing them? </li></ul></ul>
    41. 42. A good buyer’s agent knows <ul><ul><li>It is OK to not work with a buyer who will not commit </li></ul></ul><ul><ul><li>Buyer agency allows you to do your best for the buyer </li></ul></ul><ul><ul><li>Without a signed agreement there is greater liability </li></ul></ul><ul><ul><li>Full dedication to a buyer’s needs should not be given if that buyer will not make a full commitment </li></ul></ul><ul><ul><li>Disloyal buyer customers can waste time and resources </li></ul></ul>
    42. 43. The buyer counseling session <ul><li>Your goals should be to: </li></ul><ul><li>Build rapport </li></ul><ul><li>Assess other relationships the buyer may have </li></ul><ul><li>Present Information About Brokerage Services </li></ul><ul><li>Discover the buyer’s wants and needs </li></ul><ul><li>Discuss the agreement before discussing anything confidential </li></ul>
    43. 44. The buyer counseling session <ul><li>Discuss price range </li></ul><ul><li>Probe steps buyer has taken to arrange financing </li></ul><ul><li>Discuss buyer representation and the different types of representation </li></ul><ul><li>Ask for a commitment </li></ul>
    44. 45. Agent standards and practices <ul><ul><li>Each agent must set standards for her own practice </li></ul></ul><ul><ul><li>You can always walk away from a buyer who will not commit </li></ul></ul><ul><ul><li>You can amend the agreement to limit your risk </li></ul></ul><ul><ul><li>Limit the scope of the agreement to properties that you have shown the buyer </li></ul></ul>
    45. 46. Agent standards and practices <ul><ul><li>Subsequent showings would warrant that the agreement be modified </li></ul></ul><ul><ul><li>Limit time period of the buyer rep agreement </li></ul></ul><ul><ul><li>Schedule a buyer counseling session to address buyer concerns or discuss additional strategies </li></ul></ul>
    46. 47. 1501 – Buyer/Tenant agreement <ul><li>TAR 1501 is the Residential Buyer/Tenant Representation Agreement. </li></ul><ul><ul><li>This form can be downloaded from the TAR Web site, www.TexasRealtors.com </li></ul></ul><ul><ul><li>Your local board may also have a buyer/tenant agreement suitable for use in your market </li></ul></ul>
    47. 48. 1501 – Buyer/Tenant agreement, 1-3 <ul><li>Paragraph 1 </li></ul><ul><ul><li>details the parties and their contact information </li></ul></ul><ul><li>Paragraph 2 </li></ul><ul><ul><li>appoints the agent as the exclusive agent for the buyer </li></ul></ul><ul><li>Paragraph 3 </li></ul><ul><ul><li>defines certain terms: acquire, closing, market area, and property </li></ul></ul>
    48. 49. 1501 – Buyer/Tenant agreement, 4-5 <ul><li>Paragraph 4 </li></ul><ul><ul><li>defines time limit of the agreement </li></ul></ul><ul><ul><li>time frame is normally based on how long you think it will take to find the buyer and close the transaction </li></ul></ul><ul><li>Paragraph 5 </li></ul><ul><ul><li>spells out the obligations to the buyer related to this agreement and the broker’s commitment to use all of her best efforts to find the right property </li></ul></ul>
    49. 50. 1501 – Buyer/Tenant agreement, 6-7 <ul><li>Paragraph 6 </li></ul><ul><ul><li>outlines buyer’s duties to the seller and specifically requires the buyer to use the agent as his exclusive agent </li></ul></ul><ul><li>Paragraph 7 </li></ul><ul><ul><li>deals with representations </li></ul></ul><ul><ul><li>most importantly, the representation agreement ensures he is not currently obligated under any other buyer representation agreement </li></ul></ul>
    50. 51. 1501 – Buyer/Tenant agreement, 8 <ul><li>Paragraph 8 </li></ul><ul><ul><li>addresses whether the buyer will allow the agent to work with her in the event that the buyer wishes to see and purchase a property that is listed with the agent or his company </li></ul></ul><ul><ul><li>spells out the obligations of the broker if acting as an intermediary </li></ul></ul>
    51. 52. 1501 – Buyer/Tenant agreement, 9-10 <ul><li>Paragraph 9 </li></ul><ul><ul><li>gives agent permission to work with other buyers interested in the same property </li></ul></ul><ul><ul><li>while the license law does not prohibit working with two buyers on the same property, it is wise to ask another agent to work with one of the buyers </li></ul></ul><ul><li>Paragraph 10 </li></ul><ul><ul><li>spells out inherent confidentiality duty </li></ul></ul>
    52. 53. 1501 – Buyer/Tenant agreement, 11 <ul><li>Paragraph 11 </li></ul><ul><ul><li>addresses compensation for broker </li></ul></ul><ul><ul><li>directs broker to seek compensation first from seller, landlord or their agents, then the buyer </li></ul></ul><ul><ul><li>If agent removes compensation from buyer as a last result, it may leave the agent vulnerable if the buyer goes directly to FSBO or builder </li></ul></ul>
    53. 54. 1501 – Buyer/Tenant, 12-13 <ul><li>Paragraph 12 </li></ul><ul><ul><li>sends parties to mediation if they cannot resolve disputes through informal negotiation </li></ul></ul><ul><li>Paragraph 13 </li></ul><ul><ul><li>notifies parties that broker can seek the compensation in Paragraph 11 as relief if buyer defaults </li></ul></ul><ul><ul><li>buyer may seek any available remedy if broker defaults </li></ul></ul>
    54. 55. 1501 – Buyer/Tenant, 14-15 <ul><li>Paragraph 14 </li></ul><ul><ul><li>prevailing party in any dispute may seek attorney’s fee from non-prevailing party </li></ul></ul><ul><li>Paragraph 15 </li></ul><ul><ul><li>limits liability of broker in working on behalf of buyer </li></ul></ul><ul><ul><li>broker is not liable for personal injuries or losses to buyer’s property that are not broker’s fault </li></ul></ul>
    55. 56. 1501 – Buyer/Tenant, 16-17 <ul><li>Paragraph 16 </li></ul><ul><ul><li>details any documents part of the agreement </li></ul></ul><ul><ul><li>includes Information about Brokerage Services </li></ul></ul><ul><li>Paragraph 17 </li></ul><ul><ul><li>include only factual details here </li></ul></ul><ul><ul><li>do not practice law </li></ul></ul>
    56. 57. 1501 – Buyer/Tenant agreement, 18 <ul><li>Paragraph 18 </li></ul><ul><ul><li>many of the notices in Paragraph 18 are also included in the promulgated contract form </li></ul></ul>
    57. 58. Intermediary relationship notice <ul><li>TAR 1409 is used to notify parties in the transaction that the broker is acting as an intermediary and is appointing an agent to work with the buyer and an agent to work with the seller. </li></ul><ul><li>Normally, the agent appointed to work with the seller is a listing agent and the agent appointed to work with the buyer is a selling agent. </li></ul>
    58. 59. Procuring cause <ul><li>Procuring cause and buyer representation are very distinct; we will discuss the differences. </li></ul>
    59. 60. Procuring cause definition <ul><li>NAR uses the definition of procuring cause from Black’s Law Dictionary, Fifth Edition: </li></ul><ul><li>The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with “efficient cause.” </li></ul>
    60. 61. Procuring cause <ul><li>A broker will be regarded as the “procuring cause” of a sale, so as to be entitled to commission, if his/her efforts are the foundation on which the negotiations resulting in a sale are begun. </li></ul>
    61. 62. Procuring cause/Code of Ethics <ul><ul><li>Agents under the Code of Ethics should always ask if a buyer is under buyer representation with another agent </li></ul></ul><ul><ul><li>To proceed with a buyer when we know he is under a buyer representation agreement violates the agency of another and is forbidden by the Code </li></ul></ul>
    62. 63. Procuring cause/Code of Ethics <ul><ul><li>The Code does not extend to the actions of buyers: sometimes buyers do not disclose the existence of another buyer representation arrangement with another agent </li></ul></ul>
    63. 64. Procuring cause conflict <ul><ul><li>Circumstances arise when the buyer or the agent lose commitment to the agreement, which opens the door to the possibility of someone else becoming procuring cause </li></ul></ul><ul><ul><li>If the buyer’s agent does not follow through on the commitment to the buyer, the agent is vulnerable to another agent becoming the procuring cause </li></ul></ul>
    64. 65. Loss of compensation hedges <ul><ul><li>Make sure the buyer can easily reach you </li></ul></ul><ul><ul><li>Have a back-up agent in place if you will be unavailable </li></ul></ul><ul><ul><li>Document the property you have shown and the work you have done on behalf of the buyer </li></ul></ul><ul><ul><li>Be able to demonstrate continuity in the series of events that led to the sale </li></ul></ul>
    65. 66. Open houses <ul><ul><li>Can be a source of buyers for agents willing to use it as a prospecting tool </li></ul></ul><ul><ul><li>An opportunity for agents to look for buyers at different stages in the process </li></ul></ul>
    66. 67. Tipping exposure in your favor <ul><ul><li>Sunday afternoon works best </li></ul></ul><ul><ul><li>Ask your sellers to leave </li></ul></ul><ul><ul><li>Send open house invitations to prospective buyers </li></ul></ul><ul><ul><li>Place an open house ad in the newspaper </li></ul></ul><ul><ul><li>Plan for open house signs and directionals </li></ul></ul><ul><ul><li>Take plenty of highlight brochures, seller disclosures and business cards </li></ul></ul>
    67. 68. Tipping exposure in your favor <ul><ul><li>Ask a lender to prepare a financial sheet to give to buyers </li></ul></ul><ul><ul><li>Prepare an open house guest register and ask guests to sign it </li></ul></ul><ul><ul><li>Invite other agents to hold listings open at the same time </li></ul></ul><ul><ul><li>Run an MLS search to learn about comparable properties </li></ul></ul>
    68. 69. Open house conduct <ul><ul><li>Greet guests and ask them to sign your guest register; explain contact consent </li></ul></ul><ul><ul><li>Accompany guests through the house </li></ul></ul><ul><ul><li>Answer any questions or ask qualifying questions </li></ul></ul><ul><ul><li>Ask if they would be interested in more info about the property or about other comparable houses </li></ul></ul><ul><ul><li>If you have a laptop with wireless access, perform an MLS search for an interested party </li></ul></ul>
    69. 70. Open house conduct <ul><ul><li>Be mindful of the form Information About Brokerage Services </li></ul></ul><ul><ul><li>Build rapport and gather contact information </li></ul></ul><ul><ul><li>Give visitors your business cards </li></ul></ul><ul><ul><li>Send thank you notes to all buyers who came through </li></ul></ul><ul><ul><li>Call all attendees within 24 hours </li></ul></ul><ul><ul><li>Follow up, follow up, follow up </li></ul></ul>
    70. 71. Professional designations – ABR <ul><ul><li>Accredited Buyer Representative is a designation awarded by the National Association of REALTORS ® </li></ul></ul><ul><ul><li>Qualifies you for membership in REBAC, the Real Estate Buyer’s Agent Council, Inc. </li></ul></ul><ul><ul><li>Gives notice to your buyers that you are a professional who specializes in serving buyers and meeting their needs </li></ul></ul>
    71. 72. Council of Residential Specialists <ul><li>Provides REALTORS ® with additional knowledge about: </li></ul><ul><ul><li>Business planning </li></ul></ul><ul><ul><li>Listing presentations </li></ul></ul><ul><ul><li>Making transactions smooth </li></ul></ul><ul><ul><li>Working in your clients’ interests </li></ul></ul><ul><ul><li>Building referrals </li></ul></ul><ul><li>Designations serve to enhance your professionalism and build your knowledge base </li></ul>
    72. 73. Section 5: Showing and selling property
    73. 74. Showing etiquette <ul><ul><li>Leave your business card </li></ul></ul><ul><ul><li>Leave the property as you found it </li></ul></ul><ul><ul><li>Turn off all lights and lock all doors </li></ul></ul><ul><ul><li>Always accompany the buyer through the house </li></ul></ul><ul><ul><li>If damage occurs or you set off the alarm, immediately call the listing agent and/or police and leave a note </li></ul></ul>
    74. 75. Showing etiquette <ul><ul><li>If you notice any irregularities, call the listing agent </li></ul></ul><ul><ul><li>If another agent is showing the property, wait or ask permission to show at the same time </li></ul></ul><ul><ul><li>If you cannot keep an appointment, call to cancel </li></ul></ul><ul><ul><li>Do not take the last disclosure or highlight sheet </li></ul></ul>
    75. 76. Showing etiquette <ul><ul><li>Make sure any pets are secure when you leave </li></ul></ul><ul><ul><li>Never meet a stranger at a vacant house </li></ul></ul><ul><ul><li>Capture contact information of anyone you are meeting </li></ul></ul><ul><ul><li>Always let someone know who you are showing property to and where you will meet them </li></ul></ul>
    76. 77. Showing etiquette <ul><ul><li>Prepare in advance and know where you are going </li></ul></ul><ul><ul><li>Your car should have gas, be clean, and in good repair </li></ul></ul><ul><ul><li>Be on time; if you are delayed, call to see if you can show at a later time </li></ul></ul><ul><ul><li>Prequalify your buyers </li></ul></ul>
    77. 78. Showing etiquette <ul><ul><li>Don’t criticize the property </li></ul></ul><ul><ul><li>Take periodic breaks </li></ul></ul><ul><ul><li>Wear sensible yet professional clothing </li></ul></ul><ul><ul><li>Keep a first aid kit and other supplies in your car </li></ul></ul><ul><ul><li>Carry adequate car insurance </li></ul></ul>
    78. 79. Showing etiquette <ul><ul><li>Use a hands free listening device if you use a cell phone while driving </li></ul></ul><ul><ul><li>Make sure that all riders are buckled up </li></ul></ul><ul><ul><li>Respond to any listing agent request for feedback </li></ul></ul><ul><ul><li>If you are the listing agent, request feedback via e-mail with a link to the property info </li></ul></ul>
    79. 80. Preparing for showings <ul><ul><li>The more knowledgeable you are about the property, neighborhood, and market, the more likely the buyer is to choose you </li></ul></ul><ul><ul><li>Always arrive on time for your appointment </li></ul></ul><ul><ul><li>Know the route that you will take </li></ul></ul><ul><ul><li>Come prepared with the proper forms in case the buyer decides to write a contract </li></ul></ul>
    80. 81. Knowing the market <ul><ul><li>Your company’s inventory is a “must see” </li></ul></ul><ul><ul><li>You have a responsibility to every seller to do your best </li></ul></ul><ul><ul><li>Many brokers have property tours or caravans for agents to view company listings </li></ul></ul><ul><ul><li>If you can’t make a caravan, you still have the responsibility to see your company's listings </li></ul></ul>
    81. 82. In-house listing file <ul><li>This includes descriptive material about the property: </li></ul><ul><ul><li>multiple photos </li></ul></ul><ul><ul><li>floor plan/layout </li></ul></ul><ul><ul><li>survey </li></ul></ul><ul><ul><li>list of amenities </li></ul></ul><ul><ul><li>highlight sheet </li></ul></ul><ul><ul><li>property disclosure </li></ul></ul><ul><ul><li>specific directions to the property </li></ul></ul>
    82. 83. Knowing the market <ul><ul><li>When you show any property to a buyer, you learn about the market </li></ul></ul><ul><ul><li>Over time, you will learn general characteristics of properties in an area </li></ul></ul><ul><ul><li>Do not overlook the listing agent as a source of information about the property </li></ul></ul><ul><ul><li>Listing agents are the best source for the strong points and condition of their listings </li></ul></ul>
    83. 84. Previewing property <ul><li>You should preview before you show a property, but it is not always possible or practical for many reasons. </li></ul><ul><li>Use the Seven tips for homebuyers marketing piece when you meet with a buyer to show property. </li></ul>
    84. 85. Showings: be prepared <ul><ul><li>Show properties in a logical order </li></ul></ul><ul><ul><li>Take the buyer in the car with you to build rapport and listen to feedback </li></ul></ul><ul><ul><li>Try to pull information on additional properties for the buyer </li></ul></ul>
    85. 86. Showings: get prepared <ul><ul><li>Bring additional information besides what you know the buyer already has for the property </li></ul></ul><ul><ul><li>Place the properties on a tour form with space for the buyer to make comments </li></ul></ul><ul><ul><li>Establish a rating system with your buyer and note key differentiators </li></ul></ul><ul><ul><li>Eliminate properties if possible as you go along </li></ul></ul>
    86. 87. Practice active listening <ul><ul><li>Listen attentively, make notes, and focus </li></ul></ul><ul><ul><li>Keep your mind from wandering </li></ul></ul><ul><ul><li>Focus on what the buyer is saying </li></ul></ul><ul><ul><li>Rephrase what the buyer has told you </li></ul></ul><ul><ul><li>Keep eye contact and nod to affirm </li></ul></ul>
    87. 88. Practice active listening <ul><ul><li>Voice opinions as to other things the buyer might consider </li></ul></ul><ul><ul><li>Ask mental questions to keep you alert </li></ul></ul><ul><ul><li>Do not use sarcasm or jokes about </li></ul></ul><ul><ul><li>Do not judge what the buyer tells you </li></ul></ul><ul><ul><li>Ask clarifying questions on points you don’t understand </li></ul></ul>
    88. 89. Practice active listening <ul><ul><li>Be aware of body language </li></ul></ul><ul><ul><li>Make sure the buyer sees you take notes </li></ul></ul><ul><ul><li>Ask open-ended questions that require explanation by the buyer </li></ul></ul><ul><ul><li>Rephrase buyer statements as questions </li></ul></ul><ul><ul><li>Use tie-downs to reinforce meaning </li></ul></ul><ul><ul><li>Always listen! </li></ul></ul>
    89. 90. Closing techniques: overview <ul><ul><li>Many buyers need some help when it comes to actually making the decision to buy </li></ul></ul><ul><ul><li>Good selling skills build on a series of small “yeses” to reach the final decision </li></ul></ul><ul><ul><li>Therefore, the final agreement is based on many small agreements that make the final decision the next logical step </li></ul></ul>
    90. 91. Types of closing techniques <ul><ul><li>Timing centered </li></ul></ul><ul><ul><li>Alternate choice </li></ul></ul><ul><ul><li>Assumption </li></ul></ul><ul><ul><li>Ben Franklin </li></ul></ul><ul><ul><li>Feature and benefit </li></ul></ul><ul><ul><li>Back-at-you </li></ul></ul><ul><ul><li>Reduction to the ridiculous </li></ul></ul><ul><ul><li>Ask for the order </li></ul></ul>
    91. 92. Section 6: Handling stalls and objections
    92. 93. Handling stalls and objections <ul><li>Potential reasons why a buyer is not willing to write a contract include: </li></ul><ul><ul><li>Not serious about buying </li></ul></ul><ul><ul><li>Hasn’t found the right property </li></ul></ul><ul><ul><li>Afraid that they haven’t seen enough </li></ul></ul><ul><ul><li>Frightened about the whole buying process </li></ul></ul><ul><ul><li>Has had a bad case of buyer’s remorse </li></ul></ul><ul><ul><li>Is wary of you or the process </li></ul></ul>
    93. 94. Handling stalls and objections <ul><ul><li>Has a legitimate reason that precludes commitment </li></ul></ul><ul><ul><li>Has not been forthright about financial qualifications </li></ul></ul><ul><ul><li>Is obligated to present housing situation </li></ul></ul><ul><ul><li>Must sell before they can buy </li></ul></ul><ul><ul><li>Is not qualified </li></ul></ul><ul><ul><li>Too big of a step for the buyer </li></ul></ul>
    94. 95. Stalls, true conditions, objections <ul><li>The reasons buyers offer for not committing are: </li></ul><ul><ul><li>A stall – hides the real reason they are not committing </li></ul></ul><ul><ul><li>A true condition – the real reason that the buyer cannot make a decision </li></ul></ul><ul><ul><li>An objection – the reason that the buyer believes that they cannot make the decision </li></ul></ul>
    95. 96. Commitment reluctance exercise <ul><li>In your workbook, review each of the reasons for not making an offer. Determine if each is a: </li></ul><ul><ul><li>stall (S) </li></ul></ul><ul><ul><li>true condition (TC) </li></ul></ul><ul><ul><li>objection (O) </li></ul></ul>
    96. 97. How to handle a stall <ul><ul><li>Agree </li></ul></ul><ul><ul><li>Probe </li></ul></ul><ul><ul><li>Listen </li></ul></ul><ul><ul><li>Repeat </li></ul></ul><ul><ul><li>Solve </li></ul></ul>
    97. 98. How to handle an objection <ul><li>Not all objections need to be handled. Concentrate on those that are major and the rest will cease to be issues. </li></ul><ul><ul><li>Agree </li></ul></ul><ul><ul><li>Probe </li></ul></ul><ul><ul><li>Prioritize </li></ul></ul><ul><ul><li>Isolate </li></ul></ul><ul><ul><li>Overcome </li></ul></ul>
    98. 99. Role play for buyer objections <ul><li>Write out a role play script for handling the buyer objections in your workbook. </li></ul><ul><li>Be sure that you go through the five steps: </li></ul><ul><li>agree, probe, prioritize, isolate, and overcome </li></ul>
    99. 100. Section 7: Relocation buyers
    100. 101. Relocation buyers <ul><li>Relocation business can mean any business where a buyer moves from one city to another. </li></ul><ul><li>A relocation is normally thought of as a move necessitated by a job transfer. </li></ul>
    101. 102. Employee relocation council <ul><li>The ERC is a professional membership association of organizations concerned with domestic and international employee transfer. </li></ul><ul><ul><li>ERC cites average relocation costs around $60,000 </li></ul></ul><ul><ul><li>ERC offers the Certified Relocation Professional (CRP) designation </li></ul></ul>
    102. 103. Corporate costs of relocation <ul><ul><li>Loss-on-sale </li></ul></ul><ul><ul><li>Shipping of household items </li></ul></ul><ul><ul><li>Federal tax liability </li></ul></ul><ul><ul><li>Purchasing closing costs </li></ul></ul><ul><ul><li>Mortgage buy down </li></ul></ul><ul><ul><li>Bonus/incentive </li></ul></ul>
    103. 104. Corporate costs of relocation <ul><ul><li>Miscellaneous expense allowance </li></ul></ul><ul><ul><li>Temporary living expenses </li></ul></ul><ul><ul><li>Duplicate housing allowance </li></ul></ul><ul><ul><li>Home finding trips </li></ul></ul><ul><ul><li>Spouse employment assistance </li></ul></ul><ul><ul><li>Travel and lodging </li></ul></ul>
    104. 105. Why companies relocate <ul><li>Q: Why would a company spend so much on a transfer, rather than just use a local employee? </li></ul><ul><li>The answer: </li></ul><ul><li>To increase productivity and maximize profitability by having the right employee in the job at the right time. </li></ul>
    105. 106. Negatives for transferees <ul><ul><li>Lack of control </li></ul></ul><ul><ul><li>Time pressure </li></ul></ul><ul><ul><li>Surprise </li></ul></ul><ul><ul><li>Family upheaval </li></ul></ul><ul><ul><li>Emotional toil </li></ul></ul><ul><li>Corporations offer counseling, home sale, and home finding assistance to help the transferee through the relocation process. </li></ul>
    106. 107. Relocation buyer sources <ul><ul><li>Broker-to-broker referral networks </li></ul></ul><ul><ul><li>Broker-to-broker referral networks through franchises </li></ul></ul><ul><ul><li>Third-party corporations </li></ul></ul><ul><ul><li>Membership in NAR Societies, Institutes and Councils </li></ul></ul>
    107. 108. Relocation buyer sources <ul><ul><li>Corporate marketing </li></ul></ul><ul><ul><li>Your company’s relocation department </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Internet lead generators </li></ul></ul><ul><ul><li>Personal referrals </li></ul></ul>
    108. 109. Relocation referrals <ul><li>Your decision to accept a referral that carries a fee will be influenced by: </li></ul><ul><ul><li>Your workload </li></ul></ul><ul><ul><li>Your ability to generate your own non-referral fee business </li></ul></ul><ul><ul><li>Your aptitude for servicing the relocation buyer </li></ul></ul><ul><ul><li>Your business philosophy </li></ul></ul><ul><ul><li>Value you place on seed business </li></ul></ul><ul><ul><li>The buyer’s housing requirements and demands </li></ul></ul>
    109. 110. Special needs of relocations <ul><ul><li>Information about the city </li></ul></ul><ul><ul><li>School information </li></ul></ul><ul><ul><li>Housing near the job </li></ul></ul><ul><ul><li>Spousal employment </li></ul></ul><ul><ul><li>Churches or places of worship </li></ul></ul><ul><ul><li>Medical doctors and hospitals </li></ul></ul>
    110. 111. Special needs of relocations <ul><ul><li>Amenities, programs, or hobbies that match current lifestyle </li></ul></ul><ul><ul><li>The ability to potentially look at many properties during a short time period of time </li></ul></ul><ul><ul><li>Information about local customs </li></ul></ul><ul><ul><li>Awareness of state or municipality differences </li></ul></ul><ul><ul><li>Additional housing expenses </li></ul></ul><ul><ul><li>Sale of home in the origination city </li></ul></ul>
    111. 112. Relocation buyer phone call <ul><li>First call to the transferee sets the tone for future interaction </li></ul><ul><li>Have a very clear idea of what you need to accomplish during the call so that you gain the information you need to help the buyer </li></ul><ul><li>Tell them about you to earn trust and build confidence that you will be able to help </li></ul>
    112. 113. During your first call <ul><ul><li>Introduce yourself </li></ul></ul><ul><ul><li>State the purpose of your call </li></ul></ul><ul><ul><li>Build rapport </li></ul></ul><ul><ul><li>Ask how the buyer feels about the relocation </li></ul></ul><ul><ul><li>Has the buyer ever been through this? </li></ul></ul><ul><ul><li>What family members will be transferring? </li></ul></ul><ul><ul><li>How old are any children? </li></ul></ul>
    113. 114. During your first call <ul><ul><li>Do they have educational requirements? </li></ul></ul><ul><ul><li>Find out where they will stay and how you can reach them </li></ul></ul><ul><ul><li>Do they need to be picked up at the airport? </li></ul></ul><ul><ul><li>What do they want to accomplish on this visit; how much time can they devote? </li></ul></ul><ul><ul><li>Who will be coming along? </li></ul></ul>
    114. 115. During your first call <ul><ul><li>What are they looking for? When do they need to purchase? </li></ul></ul><ul><ul><li>How much do they want to spend? </li></ul></ul><ul><ul><li>Do they need a lender? Do they have financing? </li></ul></ul><ul><ul><li>Are they receiving relocation assistance from their employer? </li></ul></ul>
    115. 116. During your first call <ul><ul><li>Determine if there is any information that they would like you to send before they arrive. </li></ul></ul><ul><ul><li>Do they need to sell their home before they can purchase in the destination city? </li></ul></ul><ul><ul><li>Do they have corporate buyout assistance for their home? </li></ul></ul>
    116. 117. During your first call <ul><ul><li>How soon do they want to relocate? </li></ul></ul><ul><ul><li>Ask if you can visit with the spouse </li></ul></ul><ul><ul><li>Set up the next contact and get buyer’s contact information </li></ul></ul><ul><ul><li>Make sure that the transferee has your contact information </li></ul></ul>
    117. 118. Role play exercise <ul><li>Agent role: Frankie LaPoma, sales associate with Northside REALTORS ® . </li></ul><ul><ul><li>You must call Bobby and start the process of helping him and his family relocate to your city. Have a clear idea about what you want to accomplish on that first call. </li></ul></ul><ul><li>Transferee role: Bobby McGinness </li></ul><ul><ul><li>Add details about your situation as you answer Frankie’s questions and start to work with him </li></ul></ul>
    118. 119. Relocation agent best practices <ul><ul><li>Develop rapport </li></ul></ul><ul><ul><li>Uncover negatives </li></ul></ul><ul><ul><li>Maintain close contact </li></ul></ul><ul><ul><li>Touch base weekly or as needed </li></ul></ul><ul><ul><li>Call before they arrive </li></ul></ul><ul><ul><li>Clear your calendar </li></ul></ul><ul><ul><li>Have mortgage financing arranged </li></ul></ul>
    119. 120. Relocation best practices <ul><ul><li>Attend to details that will reduce stress </li></ul></ul><ul><ul><li>Keep them well informed of progress </li></ul></ul><ul><ul><li>Show you care and are here to help </li></ul></ul><ul><ul><li>Never give advice on employee’s relocation benefits </li></ul></ul><ul><ul><li>Report progress regularly to the referral source </li></ul></ul><ul><ul><li>Thank the referral source and ask for more business </li></ul></ul>
    120. 121. Section 8: Property inspections
    121. 122. Pricing <ul><ul><li>The offer price you present to the seller should include comparable sold, CMA data, and the seller’s disclosure </li></ul></ul><ul><ul><li>Prepare a CMA for the buyer before you write the contract </li></ul></ul><ul><ul><li>Factoring in the condition of the property in the offer price is a negotiation best practice </li></ul></ul>
    122. 123. Property inspections <ul><ul><li>Occur during the option period after the contract has been executed </li></ul></ul><ul><ul><ul><li>or during the inspection period for HUD homes </li></ul></ul></ul><ul><ul><li>It is important to schedule them as soon as possible after the contract is executed in case additional inspections are necessary </li></ul></ul>
    123. 124. Agent’s role in inspection <ul><ul><li>Buyer should be present at inspection </li></ul></ul><ul><ul><li>Agent may or may not choose to stay for the whole inspection, but it is helpful </li></ul></ul><ul><ul><li>Allow the inspector and buyer to communicate directly with each other </li></ul></ul><ul><ul><li>If the buyer is confused by something in the report after the inspector delivers it, encourage the buyer to speak to the inspector for clarification </li></ul></ul>
    124. 125. Negotiating items <ul><ul><li>Instruct your buyer to create a list of priorities limited to major items of concern </li></ul></ul><ul><ul><li>Large items should be bid; this helps both the buyer and the seller understand what is at stake </li></ul></ul><ul><ul><li>Bids are also important if the buyer will ask for a monetary concession in lieu of repairs </li></ul></ul>
    125. 126. Inspection and the option period <ul><ul><li>Make sure that any change to the option period is done in writing on the promulgated amendment before the first option period expires </li></ul></ul><ul><ul><li>Include additional option money. As with the original option fee, no extension can begin until the option fee is in the hands of the seller’s agent </li></ul></ul>
    126. 127. Inspection and repairs <ul><ul><li>Agent and buyer should perform a property inspection and walk-through </li></ul></ul><ul><ul><li>You can use the TAR 1925 Buyer’s Walk-Through and Acceptance form </li></ul></ul><ul><ul><li>Scheduling a walk-through where the buyer signs off reduces risk </li></ul></ul><ul><ul><li>If the property condition is not acceptable, then renegotiation or mediation is needed at closing. </li></ul></ul><ul><ul><ul><li>Ask listing agent to have seller bring to closing any repair invoices and warranties associated with performed work </li></ul></ul></ul>