Working with buyers

WORKING WITH
BUYERS

Sahil Shah

RE/MAX Mumbai Gujarat Maharashtra

Genuine Buyer
• They are an out of town buyer due to a work transfer.
• Their home is listed or sold.
• Someone has referred you or past client.

• They have been pre-approved for financing.
• They sign a buyer representation agreement.
• You can establish a sense of urgency for the above or
other reasons.


Where You Will Find Them
• Calls on property ads – newspaper/magazine
• Sign calls
• Former clients, friends, center of influence, etc.

• Open houses
• Door knocking and cold calling
• Clients with homes currently listed
• Website inquiries (buy ad words, through Search Engine
Optimization-SEO)
• Generic promotion ads - bus benches, billboards, etc.


Where to find them
• Referrals
• Flyers, Just Sold/Just Listed inquiries
• Office call duty inquiries

• Office leads
• Relocation referrals (why you should work RE/MAX
conventions)
• Social networking sites like Facebook

• Referrals from veteran Sales Associates


Some facts
• Many brokers do not have time to follow up with buyers
• Many enjoy the effort of buying a home
• Look for open houses

• Look for new listings with a chance of selling fast
• You are not selling real estate – you are selling yourself


Attracting Buyers
• Home matching service - where you have a system to
email new listings, meeting the buyer‟s criteria of price
range, neighborhood etc., as they come on the market.
Offer this service on your website to buyers who provide
contact information.
• Market evaluation of their present home.
• Sign on to your mailing list for market updates.

• Provide them with a buyer information booklet on
various topics
• Offer buyer “due diligence” services.
• Home search plan - actively target homes that meet
their needs by letters to specific neighborhoods “I have
a buyer looking for a home in your area.”

Attracting Buyers..
• Pre-qualifying or assistance arranging financing.
• Buyer seminars – for first time buyers, investment
property buyers, recreational property etc.
• Expertise in the neighborhood they desire -
pricing, schools, listings not yet on the market.
• Have a marketing plan for buyers. What is a buyer‟s
greatest fear? Buying the money pit or paying too
much? Market the fact that you have a program to
make their purchase “lemon proof.” Do the things on the
due diligence list.


Niche Buyers
• First time buyer
• Condominium buyer
• Buyers looking in a specific neighborhood area

• Buyers who sign representation agreements
• New construction home buyer
• Executive homes


It is frustrating and disheartening to spend long hours with
a buyer only to have them:
• Decide not buy.
• Buy a directly from a For Sale by Owner (FSBO).
• Buy from another Sales Associate.
• Buy and not qualify for the mortgage.

There are four ways of dealing with this problem:
• Have the buyer pre-qualified for financing.
• Have the buyer sign a representation agreement.
• Pre-qualify for urgency.
• Obtain a commitment for loyalty.


Traits of buyer
• Buyers who are ready, willing and able to buy
• Buyer Motivation
• Needs – wants – concerns

• Building trust
• Building confidence
• Trust
• Overcoming reluctance
• You are the leader – your confidence is key
• People don‟t care how much you know until they know
how much you care.

Qualified Lead
• When do you want/have to move?
• Why is that an important time?
• How would your plans be affected if you moved sooner?
Later?

• If you found a home today, are you prepared to
purchase it?
• Where are you currently living?
• Do you own your present home or are you renting?
• Will you need to sell your current home before you
purchase?
• Have you been pre-qualified for a loan with a lender?

Qualified Lead..
• How long have you been looking for a new home?
• How many homes have you looked at?
• Why didn‟t you buy one of those?

• Is there anyone else who is going to be purchasing this
home with you?
• Are you working with a Sales Associate? If yes, have you
signed an exclusive buyer representation agreement? Is
the agreement current or has it expired?
• Do you have any other ads circled that you were
planning to call for information? If yes, please give me
the names and addresses, I‟ll research and provide the
information when we meet.

Financial Qualifying
• What price range do you have in mind?
• How did you decide on that amount?
• How much over that amount would you go if the home
was really appealing?

• What monthly payment are you comfortable with?
• Do you know about different down payments and closing
costs?
• Is your down payment a gift from someone?
• Do you have the down payment in your own savings
account?


Needs and Priorities
• What will this move accomplish for you?
• What neighborhoods interest you?
• How far from work do you want to be?

• What items must be present in your new home?
• What feature, or lack thereof, would immediately rule
out a home?
• What type of home are you looking for? What size?

• Are you moving up or scaling down?


• Sign Calls
Sellers and not just buyers
Use plenty of directional signage

• Ad Calls
Personal promotion
Use photographs to create recognition in area

• Relocation Buyers

Focus on them with specific location information
Serve them through referral network


Buyer Interview
• Where: At your office unless his old home is also for sale
and is your listing
• When: Before showing any homes in order to ensure
maximum results


Buyer Presentation Packet
• Offer of purchase and sale agreement
• Home Loan rate/financing information
• Articles on market conditions and statistics

• Your newsletter
• Testimonials
• Area information
• Relocation information Utilities info, moving with kids‟
info, property tax info
• Schools, Utilities, Amenities information
• Buyer representation Agreement

• Want / needs form
• Buyer Guide
• Closing cost information
• Agency brochure
• Your resume, personal brochure
• Company brochure


Buyer Need – Want - Concern
• Have them describe their present home in detail, lot
size, number of rooms, best feature and why, worst
feature and why, style of roof, type, etc. Have them
bring a photo or copy of listing if from out of town. What
do they like about it? What don‟t they like about it?
• Have you seen any homes recently that you really liked?
• What did you especially like about them, what did you
dislike, what was the reason you didn‟t buy it?

• Describe home/community they grew up in. What did
they like/dislike about that home?
• Describe your ideal home.


• Details needs and wants for home. What must you have
and why? What would you like to have and why?
• Review city map and discuss areas that meet their price
range, schools, transportation services, kind of
neighborhoods, lifestyle issues.
• Advise buyer of fact they may not get everything they
want.

• Advise buyer they won‟t need to see 60 - 70 homes and
you will narrow to three-four. If you a found a home
that had everything you were looking for but didn‟t have
what you must have, do you want me to show it to you
or do you want me to take it off the list of possibilities?
– The answers will tell you if it is a „must‟ or „would
like‟ item.


Buyer Representation
Agreement
• Recommend home inspections, advise that this is
necessary to avoid larger problems and that resale
homes can expect minor deficiencies.
• Due diligence, what steps you take to protect them.
• At open houses advise them to tell every Sales Associate
they have an agreement with you, also, not to fall for
sales pitches like “there is an offer coming and you have
to buy now” or “this is an exclusive listing and you have
to buy from me.”

• Advise them not to leave name and phone number when
calling on an ad.
• FSBO‟s, explain you can show these to them and not to
call direct.

• New homes, explain you need to introduce them.
• Advise the buyer they are to only deal through you and
then look them in the eye and get a pledge of loyalty.
• Ask: What services is the buyer looking for from their
buyer representative?
• Ask: What are the buyer‟s expectations of their buyer
representative?


Points while showing home
• Show your own personal listings first.
• As quickly as possible, separate the looker from the
buyer.
• Listen for buying signals.

• Make it as easy as possible to buy from you.
• Always call first before showing the property.
• Always call back and explain why you didn‟t show a
home you were supposed to.
• Don‟t oversell the home prior to the showing.
• Select a good route to the home.


• As you approach the front door say, “Let‟s look at this
home as if it were vacant.”
• Once inside the front door say, “Make yourselves at
home, I‟m here just to answer your questions.”
• Try to save something good for last. But show it to them
first. Drive by or show the listing.
• Be enthusiastic.
• Encourage the customer to take notes while showing
property.
• Never make statements, only ask questions while
showing property.

• Be conscious of personal safety (see Safety
Considerations below).
• If you pre-screen homes, advise sellers on making their
home presentable for your buyer.

Due Diligence Checklist
• Conduct title search/ verify property owners.
• Obtain copies of easements, zoning and building
restrictions, development agreements, etc.
• Examine location of easements to see if they affect
development plans.
• Obtain existing building location certificate and verify lot
size through available building survey or search of the
plan at the municipality.
• Check for easements and encroachments on building
survey and verify encroachments onto property from
adjacent structures or onto adjacent property by existing
structures.


• Obtain existing zoning and examine to confirm if location
of structures complies with zoning by-law.
• Verify zoning and the existing as well as permitted use
of property.
• Check current real property tax and assessments. Check
deadline for appealing tax assessments.
• If available, obtain and examine the seller‟s property
disclosure form through the listing Sales Associate.
• Ask about any existing homeowner‟s warranty and check
square footage for accuracy.
• Verify age of structure and confirm if connected to water
and sewer.

• Verify utilities and estimate their costs.


• Check with local planning authority for future
development plans in area.
• If near a river or stream, check for building permits.
• Check for future street expansion and verify building
permits used for any prior modifications.
• Check for proximity to high voltage power lines and for
sources of potential pollution or potential hazardous
conditions.
• Noise pollution. Check for proximity to
subways, airports, railways and confirm that the
property complies with by-laws.
• Check for commercial development nearby.

• Check comparable values and prepare a Comparative
Market Evaluation


• Recommend re-keying the locks (and, where
applicable, re-coding the security system).
• Check roof condition, landscaping, busy corners
• Verify if any damage history due to
fire, wind, moisture, insects or rodents.
• Identify all the necessary contingencies.


Thank You


Working with buyers

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