4. 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

Buyers Want Help 1. Finding the right home (50%) 2. Negotiating price and terms (13%) 3. Determining sales prices of comparable homes (10%) 66

Sellers 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

Stages in a Real Estate Transaction Needs assessment Property selection Viewing properties Negotiating Follow through 68

Needs Assessment Buyer - client Buyer - customer Buyer’s needs Buyer can talk freely Advise buyer on alternative solutions Buyer - customer Seller’s needs Full disclosure to seller Focus on the seller’s property 68

Property Selection Buyer - client Buyer - customer Find best property Leave no stone unturned Give first look at new listings All properties are available Buyer - customer Get best offer Show listed properties only Lower level of responsibility Limit properties to buyer’s affordability range 70

Recommend inspections Get a C.L.U.E. Report Skill Builder Tip Recommend inspections Get a C.L.U.E. Report 71

Viewing Properties Buyer - client Buyer - customer Okay to give advice Educate the buyer Buyer - customer Material facts only Protect the lesser (client) 72

Skill 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

Negotiating Buyer - client Buyer - customer Educate the buyer Negotiate for the buyer Provide price counseling Contract Financing Continue services Strengthen position Share all info about seller Buyer - customer Material facts only Negotiate for the seller Price (CMA to support the seller) Contract Financing Continue services Strengthen position Share all info about buyer 74

Follow-Through Buyer - customer Buyer - client Follow through on behalf of the seller Buyer - client Follow through on behalf of the buyer 76

Providing Lists for Services 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 80

Finding 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

FSBOs 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

Foreclosures Forced sale of real estate to repay a debt auction sheriff’s sale short sale judgment lien REO Not for every buyer 85

New 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

Risk 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

Skill 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

Lending – Subprime, Predatory, 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

Skill 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

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

Federal 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

How 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

Fair Housing Self-Assessment Meeting the prospect for the first time Qualifying the prospect Choosing properties Showing properties Performing follow-up activities 98

Building 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