Module 4 Marketing Opportunities in the Buyer Counseling Session 4-1

Think Creatively Fancy That 4-2 THAT

Quick Survey Write down the ONE(1) thing you like MOST about representing buyers. Write down the ONE(1) thing you like LEAST about representing buyers. Like Most? Like Most? Like Least? Like Least? 4-3

Like Most… Excitement & satisfaction 27% of helping buyers find their dream home Satisfaction of serving 24% buyer’s needs Broader Survey Results Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real Estate 4-4

Broader Survey Results Like Most… Getting paid faster15% Friendship & referrals 5% Lower costs than listings 5% Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real Estate 4-5

Broader Survey Results Like least… Buyer disloyalty29% Buyer indecision19% Lack of honesty11% Wasting agent’s time 8% Driving buyers around 6% Unreasonable expectations 6% Can these be controlled? 4-6 Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real Estate How can these issues be minimized?

Counseling Session Goals Eliminate the three Us Unmotivated Unqualified Uncommitted Increase BBA What’s yours? 4-7

Counseling Session Goals Position yourself & re-position your competition Get the job Exclusive agreement Today or tomorrow? 4-8 Differentiate yourself

The Power in Words Speak from the buyer’s perspective: From:To: Sell vs.Help acquire Salesperson vs.Business consultant Deal vs.Transaction CMA analysis vs.Customized mkt. analysis Pre-approval vs.Loan commitment Other “Power” Words 4-9

The Interview Who’s interviewing whom? It’s not about price, bedrooms or baths Buyers don’t care about you until they know you care about them Exceed expectations Defeat the stereotypes 4-10

The Interview Discuss the “hard issues:” Environmental Megan’s Law Due diligence Agency disclosure Contract issues Total and accurate acquisition costs Business consultant 4-11

Hard Yes, these are REAL! 4-12 Issues Example: Restrictive Restrictions

4-13 Hard Issues Example: Protecting the Buyer regarding Megan’s Law & Scorpions

Exclusivity Duration Compensation Top 3 Agent Fears about Buyer Broker Agreements 4-14

Non-Exclusivity It’s an open listing All risk, no reward Wastes buyer’s time Wastes agent’s time Promotes disloyalty & indecision 4-15

Exclusivity Balances risk / reward Reduces wasted time Promotes loyalty Displays decisiveness Caution: Exclusivity demands the agent’s commitment 4-16

Duration Don’t use a property “listing mentality” Analyze buyer motivation & urgency High present need -- short term More distant need -- longer term Don’t “short change” yourself Allow for cancellation Allow for trial period 4-17

Compensation Question:Are your services valuable? Answer:YES!!!! Conclusion: You deserve to be paid. 4-18

Compensation: Paid by… Seller 56% Buyer as % of price 12% Buyer & seller 11% Buyer as flat fee 2% In 25% of the transactions, the Buyer paid some or all of the fee. From NAR’s 2001 Profile of Homebuyers and Buyer Agents 4-19

Modes of Compensation Percentage of acquisition cost Flat fee Hourly fees 4-20

Compensation Considerations Stated clearly in agreement? Accept MLS co-op? What if co-op is lower? What if co-op is higher? 4-21

Compensation Considerations If unwilling FSBO…? If unwilling builder…? Does buyer have the $? If willing FSBO… Single party listing or… Seller compensation with no agency? 4-22

Hourly Fees New homes Menu of services Consulting Expert witness services Research for investors 4-23

Retainer Fees Indicate commitment Assure some compensation Consider: Accounting Apply toward full compensation? Are you committed? Caution: Be consistent as to how and to whom you charge retainer fees. Keep Fair Housing Laws in mind. 4-24

Reports & Time Charts Make services tangible Keep account balances Prepare invoices 4-25

Time Sheets & Report 4-26

You want me to sign WHAT? Breakout Session: What services do you perform that add tangible value to the transaction for the real estate buyer? How do you differentiate yourself from your competition? WHY? 4-27

Let’s Play 20 Questions Curtis Hall’s 20 Questions Generate ideas Focuses on issues See Appendix 4-28

Is it a Go or a No Go? If a Go: Run all the bases and “Bring the Buyer Home.” If a No Go:Thank the prospect and wish them well. 4-29