© 2011 Cengage Learning

Working with Buyers Working with Buyers Chapter 6 © 2011 Cengage Learning

RATIONALE FOR CHAPTER Agents must become skilled in preparing to work with buyers. They must show them property that is appropriate for their needs and learn how to write effective purchase agreements.

© 2011 Cengage Learning Focus of Presentation Buyers come from many sources so you must examine the most effective ways to acquire a constant supply of new buyers. Many buyers are reluctant to give their names to an agent. The primary reason is a perceived lack of credibility on the part of the agent.

© 2011 Cengage Learning Focus of Presentation This chapter presents an opportunity to learn how to handle ad and sign calls through role-playing.

© 2011 Cengage Learning CHAPTER SIX OUTLINE 6.1 SOURCES OF BUYERS 6.2 THE FIRST APPOINTMENT 6.3 PREAPPROVED FOR FINANCING 6.4 AGENCY DISCLOSURE 6.5 BUYER/BROKER AGREEMENT 6.6 TIPS ON SHOWING PROPERTY 6.7 BUYING SIGNALS

© 2011 Cengage Learning SOURCES OF BUYERS Importance of having a on-going knowledge of the listing inventory in your primary marketing area. Different sources available for obtaining buyers.

© 2011 Cengage Learning SOURCES OF BUYERS Switch properties and why they are important. State of mind of the average buyer who calls to get information (i.e. fear, reluctance to give a name, etc.).

© 2011 Cengage Learning SOURCES OF BUYERS Differences between sign calls and ad calls how to handle each one Referred buyers vs. ad or sign call buyers

© 2011 Cengage Learning THE FIRST APPOINTMENT Agent safety when meeting buyers for the first time. Buyer needs assessment prior to or at the first meeting. After the initial greeting and cordialities, most of your conversation should be in the form of questions.

© 2011 Cengage Learning THE FIRST APPOINTMENT Proper use of a Client Information Sheet. Think about the benefit to the agent and the buyers of the agent asking the buyers for feedback on each home after they view it.

© 2011 Cengage Learning FINANCING PREAPPROVAL Loan pre-approval process. Pre-qualify buyers when a loan agent is not available.

© 2011 Cengage Learning FINANCING PREAPPROVAL Different loan requirements of an employee vs. a self-employed person. Pre-qualifying a buyer or getting him or her pre-approved negates the possibility of selling the customer a home they cannot qualify for!

© 2011 Cengage Learning FINANCING PREAPPROVAL Determining how much total cash the buyer has available for purchase including money for closing costs. Think about the importance of telling the buyers ahead of time the three things that can happen: Rejection Acceptance Counter offer

© 2011 Cengage Learning FINANCING PREAPPROVAL Dual role of an agent in prequalification: what they can afford what the buyer really wants in a home

© 2011 Cengage Learning AGENCY DISCLOSURE Proper time to present the agency disclosure form. Dual agency. What is prior informed consent of all parties? What are agent’s boundaries in a dual agency situation and how to handle them.

© 2011 Cengage Learning BUYER/BROKER AGREEMENT Timing of presenting the buyer/broker agreement. Method of showing the benefit of the agreement to the buyer. How to work with buyers when they will not sign a buyer/broker agreement, and the negative issues that can arise.

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY Various issues that must be explored when Pre-qualifying buyers, such as: do they have a home to sell first? are they financing their purchase? have they been Pre-approved? what does their dream house look like?

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY All motivated buyers have “hot buttons.” Think about how to elicit these hidden desires through questioning, and what non-verbal signs to look for.

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY Benefits of being fully prepared know the inventory know the neighborhood issues location of places of worship shopping centers Schools recreational facilities, etc.

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY Importance of staying reasonably within the buyers’ price range when showing them property and really listening to the buyers’ desires and only showing them properties that are reasonably close to meeting those desires.

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY Revisit fair housing and ethical issues. Proper way to view a home (they lead, the agent follows). Importance of creating ambiance in each home the agents show to buyers.

© 2011 Cengage Learning TIPS ON SHOWING PROPERTY Importance of watching buyers for signs of fatigue and how to handle it. How to handle the “friend” that buyers sometimes bring along.

© 2011 Cengage Learning BUYING SIGNALS Importance of letting the buyers lead as they view each property while the agent stays behind and watch for the buyers’ reaction to what they see. Do you have any personal anecdotes?

© 2011 Cengage Learning BUYING SIGNALS Importance of asking open-end questions when buying signs are observed and the difference between verbal and non-verbal buying signs.

© 2011 Cengage Learning BUYING SIGNALS How to involve the buyers’ children in the home buying process, if they accompany the parents.

© 2011 Cengage Learning BUYING SIGNALS The text, page 181, contains a section on Rules of Professional Conduct. Have you ever had a problem with another agent violating any of the rules?