Working with buyers
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The document provides information on finding and working with buyers as a real estate agent. It discusses identifying genuine buyers, where to find buyers through various marketing channels, qualifying buyers, understanding buyer needs and priorities, gaining buyer loyalty through representation agreements, and tips for showing homes to buyers. The overall focus is on attracting buyers and guiding them through the home buying process.
Working with buyers
- 1. WORKING WITH BUYERS Sahil Shah RE/MAX Mumbai Gujarat Maharashtra
- 2. 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. RE/MAX Mumbai Gujarat Maharashtra
- 3. 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. RE/MAX Mumbai Gujarat Maharashtra
- 4. 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 RE/MAX Mumbai Gujarat Maharashtra
- 5. 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 RE/MAX Mumbai Gujarat Maharashtra
- 6. 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.” RE/MAX Mumbai Gujarat Maharashtra
- 7. 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. RE/MAX Mumbai Gujarat Maharashtra
- 8. 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 RE/MAX Mumbai Gujarat Maharashtra
- 9. 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. RE/MAX Mumbai Gujarat Maharashtra
- 10. 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. RE/MAX Mumbai Gujarat Maharashtra
- 11. 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? RE/MAX Mumbai Gujarat Maharashtra
- 12. 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. RE/MAX Mumbai Gujarat Maharashtra
- 13. 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? RE/MAX Mumbai Gujarat Maharashtra
- 14. 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? RE/MAX Mumbai Gujarat Maharashtra
- 15. • 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 RE/MAX Mumbai Gujarat Maharashtra
- 16. 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 RE/MAX Mumbai Gujarat Maharashtra
- 17. 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 RE/MAX Mumbai Gujarat Maharashtra
- 18. • Want / needs form • Buyer Guide • Closing cost information • Agency brochure • Your resume, personal brochure • Company brochure RE/MAX Mumbai Gujarat Maharashtra
- 19. 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. RE/MAX Mumbai Gujarat Maharashtra
- 20. • 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. RE/MAX Mumbai Gujarat Maharashtra
- 21. 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. RE/MAX Mumbai Gujarat Maharashtra
- 22. • 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? RE/MAX Mumbai Gujarat Maharashtra
- 23. 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. RE/MAX Mumbai Gujarat Maharashtra
- 24. • 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. RE/MAX Mumbai Gujarat Maharashtra
- 25. 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. RE/MAX Mumbai Gujarat Maharashtra
- 26. • 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. RE/MAX Mumbai Gujarat Maharashtra
- 27. • 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 RE/MAX Mumbai Gujarat Maharashtra
- 28. • 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. RE/MAX Mumbai Gujarat Maharashtra
- 29. Thank You RE/MAX Mumbai Gujarat Maharashtra