Hooray! I have buyers, now what do I do?
2. Confirm the appointment either through email, text or phone.
Before you ever allow a buyer in your car to see properties, you must first determine the urgency of her desire to buy and if, in fact, she has any money to do so. Urgency alone does not make a buyer. One of the most difficult things to tell someone who really wants to own her home is that there just is not any way she can currently qualify to make her dream a reality.
Of course, that presupposes that you have investigated all the possibilities available, to include family assistance with loan qualification or the down payment, co-signors or co-mortgagors. Nothing compares to the sense of accomplishment felt when you can help a struggling buyer realize her dream through creative efforts and financing. On the other hand, if the impossibility of buying a home is approached with honesty and with empathy, the buyer will return to you when her financial situation improves.
During the initial interview, be certain to determine if the buyers sitting across from you are the final decision makers. The ultimate decision of which home to select may rest with another family member or third party, especially if that entity will be responsible for a portion or all of the down payment or qualification. Establish the parameters that the buyer desires in his home. These include the location or neighborhood, the desired price range and monthly mortgage payment, age of home, style of home (single or multi-level), importance of proximity to schools, entertainment, shopping malls, transportation and any special needs if the buyer is handicapped.
Selecting the right people to work with will make you money every time. Some salespeople work with whomever comes to town. A few minutes of questions at the initial interview lets the buyer know that you are a professional salesperson who only works with qualified people. S/he will want to become your buyer. S/he will want the best.
3. What to Take to the Interview
– Copy of Definitions of Agency – Have the clients sign at the time of the meeting.
– Business Cards
– Buyer Book – Adjust the book for the type of client, first-time home buyer, investor, relocation
Prior to the buyer revealing any confidential information, you must verify what your relationship will be with that buyer. Explain verbally to the buyer the services you can provide as a buyer agent or as a transaction broker.
Discuss the fees relative to each and the methods for payment for your fees or commission. Once the buyer determines the degree of representation he wishes to have, acknowledges the agreement with a written employment contract. Do not be afraid to charge people for your services. You are worth it. Agency is not the issue.
What is important is that you understand the basic functions associated with working with the buyer. Regardless of your status, the buyer is expecting you to provide service before the contract, during the contract and after it is signed. Know the basic duties and follow a checklist.
Once you have decided that these people are worth your effort, you need to sign a contract with them that details your services and how you will be paid. Remember these factors that apply to all buyers:
– The buyer wants to buy a home.
– That is why he is talking to you.
– You do this for a living.
– This is not a hobby.
– Someone has to pay you for your services.
– Indicate some of the services that you provide.
– Professionals talk about their fees just as you do.
– No one wants to pay you if they can help it.
– The buyer will help you get paid if you ask him.
– The buyer will insist that you get paid once you explain the facts.
– Your commission is part of the transaction.
Written agreements cement your relationship, impose loyalty from the buyer and define the parameters under which you will work.
The duration of the agreement can be a key element in obtaining the buyer’s consent. If the buyer is not well known to you, he will be more reluctant to sign a long term agreement. Do not be hesitant to ask for a few days or a week instead of a long term listing. Maybe he will not be the right person with whom you will want to spend valuable time. Protect yourself for the property that you do show him, but leave the listing short and the buyer will be more agreeable to sign. He does not know you either. After a few days with you, he will be happy to extend.
The Buyer Agent is “All Powerful Expert Theory.” In the eyes of the public, the Buyer Agent is all things to all people. S/he is an expert on all matters and, in fact, obviates the use of other inspectors. When you are a buyer’s agent, or assisting a buyer in any form, you must emphatically and repeatedly stress that you are not an expert beyond the scope of your professional real estate duties. Do so nicely with cards, e-mails and brief cover letters. Remember, the buyer is usually the one who will bring the suit, and you are the number one person auditioning for the position of defendant.
4 – Set time to meet again or follow-up by phone, text or email. Set specific time frame.
5 – Follow up with Thank you email or letter. (Sample under Buyer Letters)
6 – Send any websites to client that may have interest to them, i.e. Lead-based Paint Booklet, radon info, schools or other sites. (See Links)
7 – Email potential properties to potential client within 24 hours.
You can easily set them up on a search program using your website or with Matrix. This saves you hours of time searching each day for new properties.If there are more than 15 properties in the search, separate at price point, area, style, etc. and send several emails. Receiving more than 15 at once is very overwhelming for the client
8 – Email Managing Broker and a Congratulations Letter will be sent out to buyer. (Letter found under Buyers Letters)
9 – Call lender and introduce yourself. Discuss price point, seller concessions, type of loan, etc.
A – Start the showing process.