In this chapter: >Get personal—meet with the buyer >Steps in the interview and counseling session 4. The Interview and Counseling Session 55

GET PERSONAL—MEET W/THE BUYER Build rapport Fulfill your agency disclosure requirements Determine previous home search efforts Review presentation packet Make the case for buyer representation 55

GET PERSONAL—MEET W/THE BUYER Identify point of differentiation Win buyer’s confidence—make a pledge of performance Identify priorities and motivations Pre-qualify the buyer Determine whether or not to represent buyer 55

BRIGHT IDEA: Require ALL Prospects to Meet with You May be tempting to meet prospect at property, but doing so can expose you to great harm GET PERSONAL—MEET W/THE BUYER 56

Don’t be alone in office when meeting Instruct prospect to fill out ID form and sign in Introduce prospect to associates GET PERSONAL—MEET W/THE BUYER 57

BUILD RAPPORT 57 All sessions begin with building rapport. Through conversation, agent and buyer can make a connection. Through connection, agent can begin to earn buyer’s trust.

Make disclosure consistent with state laws but no later than substantive discussions about buyer’s real estate needs and financial capabilities Fulfill Your Agency Disclosure Requirements 58

Prospects and Confidential Information 58 In states where agency is not created until written agreement is signed: “Because we don’t know yet if I will be representing you in your real estate transaction, please don’t give me any information you would not want another party to know.”

Prospects and Confidential Information 58 In states where agency is created at first contact: “By virtue of this conversation, I am your agent. This means that what is said in this room stays here. You can feel free to talk about your real estate wants and needs with me.”

“Have you looked at any houses yet with an agent?” Determining Whether or Not Prospect Is Already Represented 59

Determine Previous Home Search Efforts 60 How have you been conducting your search? Did you see any properties you liked? What kept you from buying? Do you have home to sell or lease commitment to complete before buying? How long is lease? How soon do you need to move?

Client information sheet New-home checklist Information on the process of the real estate transaction Resume, bio, and photo Review Your Presentation Packet Lending and title insurance Checklist of information required at loan application Disclosure City/neighborhood facts 60

Environmental disclosures Information on inspections and warranty programs Home inspection FAQs Home warranty FAQs Review Your Presentation Packet Sample brochures List of sources for homeowner protection plans Local insurance agents Checklist for moving State real estate forms 61

Although prospects may not know the difference between client and customer, they do understand service and levels of service. See Workshop #11. Make the Case for Buyer Representation 61

Reasonable Care and Diligence 64 Can be defined as protecting the client from foreseeable risks or harm. Review Figure 4.1.

BRIGHT IDEA: Keep a Record of All Reasonable Facts or Sources of Facts Provided to the Buyer Reasonable Care and Diligence 66

Reasonable Care and Diligence BALANCING ACT: Don’t Practice Law Without a License Don’t cross the line and provide legal advice, which is a serious error and violation of the NAR Code of Ethics 66

SUGGESTED SCRIPTS: Overcoming Objections to Buyer Representation Make the Case for Buyer Representation “Why do I need a buyer’s rep?” “Why can’t I make a purchase on my own?” “I can work with the developer.” “Every agent has access to MLS, what is advantage of working with you?” 67

Identify Your Point of Differentiation How are you different from your competition? Years’ experience? Education and training? Ability to make process smooth and hassle free? Exceptional client service? Understanding of market? Network of reputable licensed professionals? Negotiation skills? Community involvement? Something else? 68

Make a pledge of performance. Review Figure 4.4. Win the Buyer’s Confidence—Make a Pledge of Performance 71

Identify Priorities and Motivations 72 How many bedrooms do you need? Square feet? Units? What is your dream house? What are the things you do not want in your new home? Tell me three things you like about your present home? Is there a particular location you prefer? Is there a particular style of home you have in mind? What special requirements do you need in a property?

Level of Motivation Buyers looking to make a big change in their housing situation tend to be more motivated 72

Pre-Qualify the Buyer 73 Some prospects come with pre- approval letter in hand. Less experienced buyers may need more guidance.

Determine If You Want to Represent the Buyer Buyers to avoid: Unmotivated buyers Potentially unqualified buyers Unrealistic buyers 74

Determine If You Want to Represent the Buyer Buyers to avoid: Unrealistic buyers Buyers who will create conflicts of interest Buyers who ask you to perform unlawful acts 75