4-1

4. Buyer Service4. 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

65

4-2

Buyers Want HelpBuyers Want Help

1. Finding the right home (50%)2. Negotiating price and terms (13%)

3. Determining sales prices of comparable

homes (10%)

66

4-3

Sellers Want HelpSellers Want Help

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

2. Finding a buyer (22%)

3. Marketing the home to buyers (16%)

66

4-4

Stages in a Real Estate Stages in a Real Estate TransactionTransaction

1. Needs assessment

2. Property selection

3. Viewing properties

4. Negotiating

5. Follow through

68

4-5

Buyer - clientBuyer’s needsBuyer can talk

freelyAdvise buyer on

alternative solutions

Buyer - customerSeller’s needsFull disclosure to

sellerFocus on the

seller’s property

Needs AssessmentNeeds Assessment

68

4-6

Buyer - clientFind best propertyLeave no stone

unturnedGive first look at

new listingsAll properties are

available

Buyer - customerGet best offerShow listed

properties onlyLower level of responsibility Limit properties to buyer’s

affordability range

Property SelectionProperty Selection

70

4-7

Skill Builder TipSkill Builder Tip

Recommend inspections

Get a C.L.U.E. Report

71

4-8

Buyer - clientOkay to give adviceEducate the buyer

Buyer - customerMaterial facts onlyProtect the lesser

(client)

Viewing PropertiesViewing Properties

72

4-9

Skill Builder Tips for SafetySkill 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

72

4-10

Buyer - customerMaterial facts onlyNegotiate for the sellerPrice (CMA to support the

seller)ContractFinancingContinue servicesStrengthen positionShare all info about buyer

Buyer - clientEducate the buyerNegotiate for the buyerProvide price counselingContractFinancingContinue servicesStrengthen positionShare all info about seller

NegotiatingNegotiating

74

4-11

Buyer - clientFollow through on

behalf of the buyer

Buyer - customerFollow through on

behalf of the seller

Follow-ThroughFollow-Through

76

4-12

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

Providing Lists for ServicesProviding Lists for Services

80

4-13

Finding PropertiesFinding 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

81

4-14

FSBOsFSBOs

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

83

4-15

ForeclosuresForeclosures

Forced sale of real estate to repay a debt- auction - sheriff’s sale - short sale - judgment lien - REO

Not for every buyer

85

4-16

New Home ConstructionNew Home Construction

Generally not listed on MLS

Learn about the product and the construction process

Factors

- Registration

- Financing

- Active involvement of buyer

- Contract and closing

- Sales representative

- Pricing and negotiations

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

87

4-17

Risk ManagementRisk 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

89

4-18

Skill Builder TipSkill 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

89

4-19

Lending – Subprime, Predatory, Lending – Subprime, Predatory, Fraudulent, High Risk 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

91

4-20

Skill Builder Tip: Red FlagsSkill 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

92

4-21

Choosing the Right Loan 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

92

4-22

Federal Protected ClassesFederal 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

96

4-23

How Will Your RespondHow 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?

96

4-24

Fair Housing Fair Housing Self-AssessmentSelf-Assessment

Meeting the prospect for the first time

Qualifying the prospect

Choosing properties

Showing properties

Performing follow-up activities

98

4-25

Building BlocksBuilding 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

100