1. 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

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

3. 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

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

5. 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

6. 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

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

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

9. 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

10. 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

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

12. 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

13. 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 laws 81

14. 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

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

16. 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

17. 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

18. Skill Builder Tip
Document the transaction with copies of agreements, memos, s, 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

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. 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