1. Determine the motives and priorities that bring the buyer to the marketplace.
2. Ascertain the level of prior home buying experience, if any.
3. Identify all who will be involved in the home buying decision
4. Prepare, with buyers’ input, as description of the desired property.
5. Isolate the attributes of the property that allow for some flexibility in finding
6. Determine the features that various members of the family feel are important
7. Identify the desired timeframe or schedule for selecting and acquiring a property
8. List the special needs…current and future…to include in the property search
9. Identify properties or areas previous viewed by the buyers that are of interest
10. Identify specific properties or property features located on-line that are desirable.
B-2
Purchasing Power/Financing
Options
1. Determine what financing programs the buyer used in past property acquisitions.
2. Share the details, in writing, of the six most popular forms of financing today.
3. Inquire as to the terms of financing the home buyer is seeking
4. Describe the process of pre-qualification and/or pre-approval
5. Present the criteria that mortgage lenders use for loan approval.
6. Review the role and involvement of the mortgage company/bank representative
7. Share specific questions and key points of inquiry when dealing with the lender.
8. List the Do’s and Don’ts in mortgage application and program selection
9. Identify and document on-line and local resources for mortgage loan information
10. Share the role of the agent in the process of securing the mortgage loan
1. Provide the buyer with a Home Buyers Kit or equivalent
2. Provide a list of the critical steps and stages that most prudent buyers follow
3. Review access to information about properties on the market today
4. Explain procedures for selecting and viewing properties of interest.
5. Review local procedures of setting appointments, presenting offers and securing answers to critical questions.
6. Preview buyer concerns in purchasing and how these might be addressed with contract clauses and contingencies.
7. Discuss the interaction anticipated or appropriate with sellers or sellers’ agents.
8. Develop a format and checklist for previewing and analyzing prospective properties
9. Clarify the role (consistent with agency relationships) the buyer wants the agent to play in preview and analysis process
10. Explain the agent’s capacity to provide “price counseling” and market data to a buyer with interest in a specific property.
11. Review, in detail, the pros and cons of developing a negotiating position prior to identifying a property of interest
B-
4 Premier
Service Pledge or Guarantee
1. Compare GMAC Real Estate systems with industry norms for buyer servicing
2. Present the Premier Service Commitment document
3. Assure client of quality and customized service target toward their needs
4. Assure client of continual and timely communication
5. Assure client of service delivery at the levels agreed upon
6. Assure client of access to special programs in place and anticipated
7. Assure client the delivery of valued and stress reducing programs
8. Assure client of accessibility and responsiveness
9. Assure client of our capacity for consultation, advice and information
10. Assure client of our personal and company commitment to caring customer service
11. Provide opportunity for the client to provide feedback and input on nature and scope of service commitment
12. Identify and list “additional needs” on service commitment document
13. Sign service commitment and provide client with copy
14. Provide contact numbers and data to assure ease of accessibility
15. Confirm clients’ level of service expectation and match with service plan
B-5
Agency Relationships and
Agreements
1. Provide written summary of possible agency relationships in marketplace
2. Compare and contrast these relationships to those available the last time the buyer was active in the marketplace.
3. Identify the buyer’s understanding of prior agency relationships whether it be as a buyer or seller
4. Provide state mandated forms and documents related to agency relationships
5. Provide supplemental visuals, handouts and materials to more thoroughly explain agency relationships
6. Identify and share vulnerabilities of improper actions by real estate licensees
7. Clarify the role of the buyers’ agent
8. Identify the role of the other agents within the office
9. Identify the role or roles that cooperating agents from other offices might have with respect to the buyers and activity regarding their viewing and/or considering property
10. Describe the implications and actions of buyers’ agents, dual agents and designated agents as practiced and permitted locally.
11. Describe the practice of transactional brokers, facilitators and similar relationships as applicable
12. Invite the buyers to be prudent in guarding confidential information and caution them secure your advice on such issues
B-6 Commitment
to Availability
1. Identify the degree of urgency the buyers have in securing a property
2. Discuss the availability of property within the targeted price range and need for prompt review and consideration of property.
3. Identify the desired schedule for viewing properties and identify the parties who will first view such properties
4. Determine the plan of responsiveness should the agent locate a candidate property
5. Provide a list of optional days, times and schedules for viewing property
6. Discuss the pros and cons of being readily available to view new listings
7. Establish backup plans should all the decision makers not be immediately available to view properties.
8. Agree upon a communication system and mode along with the minimum data necessary to be shared when a new property comes available.
1. Identify the general characteristics (profile) of acceptable properties
2. Review of checklist of property features dealing with the property itself, the area and the price range, that would isolate the most likely property for the buyer
3. Identify characteristics/features that provide room for flexibility and expansion of search parameters
4. Open discuss the “intangibles” that often make a property the most desirable candidate
5. Establish a process that will be followed in subsequent viewings for efficient property analysis and consideration.
6. Provide a checklist of property sources that will form the basis for initial search efforts.
7. Arrange for the efficient transmittal and/or exchange of pertinent information regarding properties.
8. Clarify the role of the agent in the search and the role of the buyers to augment the search.
9. Early in the search process, hypothetically proceed through the offer/price counseling phase and the contract preparation and documentation.
10. Share third party examples of how numerous other buyers have proceed in the search of a new home.
1. Provide a checklist for property analysis and comparison to other properties.
2. Open candid discussions of properties as soon as possible after viewing.
3. Provide a vehicle for communicating “feel” and “impressions” about a property along with the more observable feature and attribute match.
4. Prepare an opinion of resale possibility in 3 to 5 years for properties eliciting interest
5. Review statistics regarding the number of properties in search range that have been available over the past 6 months
6. Present the impact of slightly modifying search parameters on the number of available properties.
7. Identify experts or consultants who might be called upon to provide specific and technical information or advice depending on the situation found
8. Provide clarifying information to assist buyers in evaluating property as to their physical and functional attributes.
9. Advise the buyers to develop their own checklist for the evaluation and analysis of properties viewed
1. Present the rationale of the state seller disclosure laws
2. Discuss the reliability of such disclosures and prudent verification procedures
1. Review a sample completed disclosure to become familiarized with the scope and content of required disclosure/form
2. Discuss the sellers’ role and candor in completing disclosure
3. Discuss the agents limited role in securing and reviewing seller disclosure documents
4. Preview the communication and distribution of seller disclosure
7. Identify the documentation and records supporting disclosure
1. Identify, early in the process, all the sources of properties for consideration
2. Communicate the “turnover” of properties coming on and going off the market with respect to the various sources of properties for consideration.
3. Share real life examples of the cooperative efforts of buyers and their agents in expanding sources of properties beyond traditional and more obvious sources.
4. Discuss the procedures for tapping sources such as unlisted, by owner and builder properties.
5. Expanding home features criteria, locational constraints and price range to identify properties that might be added to the list of potential properties for consideration.
6. Establish a schedule for contacting and consulting with buyers to focus on the possibility of expanding the search.
7. Identify and share with buyers the network of people who can be tapped to suggest possible properties for consideration.
B-11
Activity and Status Reporting
1. Identify the experience level of the buyers in search process
2. Identify the relationships any past experiences yielded with agents
3. Ask the buyers to review their reason for purchase, their expectations, their anxieties and their timetable
4. Identify the vulnerabilities and special needs that need to be serviced
5. Secure the names, relationships and contact information of others, if any, who will be involved in the selection and acquisition of a property.
6. Indicate the importance of assembling all relevant data on the properties
7. Compare and contrast the information and advice already secured with the realities of today’s marketplace.
8. Warn of the risks of taking advice from “well meaning” but potentially “uninformed” advisors and friends.
9. Share past examples of the successful “team” relationships between buyers and their agents. Identify the importance of forging such a partnership.
10. Encourage a positive perspective toward prospective sellers and listing agents while guarding critical and confidential information.
11. Invite the buyers to promptly share any adjustment in thinking and priorities during the marketing of their property.
1. Share with the buyers the inevitable likelihood that strategy modifications will be required during the selection and acquisition of a property.
2. Warn the buyers of the perils of delaying or pondering adjustments and missing a market segment or potential property.
3. Present examples of “strategy adjustments” and the reasons or causes for the adjustments.
4. Share of list of adjustment items from location to physical features to price.
5. Share the reasons for adjustments, such as changes in market, mortgage rate changes, increased or decreased competition, recent sales, local economic conditions, sellers vs. buyers market, anticipated contingences, targeted marketing effectiveness, etc.
6. Share the importance of making adjustments only after sufficient information has been provided, reviewed and digested. Adjustments should be agreed upon at a face-to-face meeting with all decision makers involved and contributing.
7. Present adjusted marketing priorities and the critical adjustments to the property/marketing position to better insure the effectiveness of these new priorities.
8. Consider involving “outside” advisors suggested by both the buyers and the agent to provide a frank and candid perspective of adjustment strategy.
9. Provide opportunity for the buyers to better understand the marketplace by viewing and analyzing market elements that impact their property’s sale.
1. Once a desirable property has been found the it is evident that an offer to purchase is advisable, review the procedures that need to be taken to prepare, communicate, present and negotiate such an offer.
2. If advisable, present a checklist of items to be consider in offer preparation.
3. Discuss and decide on time schedules and time frames to be listed in the contract.
4. Discuss and decide on the items of personal property to be included in the contract, if any.
5. Discuss and decide on improvement, modifications or repairs that the buyers would ask the sellers to effect, if any. (Might be delayed until home inspection)
6. Discuss and decide on what conditions and contingencies would be included in the contract.
7. Discuss and decide on the price and terms to be offered as appropriate in that specific market and the buyers’ capacity to pay.
8. Discuss and decide how counter-offers from the sellers will be communicated, handled and responded to.
9. Review the overall negotiating strategy, as appropriate. See Arena B-15 below.
1. In anticipation of an offer, prepare a summary of recent sales of similar properties in the area similar to the property selected.
2. Expand the data, as necessary, as to location, time and physical characteristics.
3. Compare and contrast the property selected to other properties on the market that would be deemed “similar” even if these properties are not seriously considered by the buyers.
4. From the data, establish a likely “range of value” that the desired property is likely to ultimately sell for.
5. Relying on the market data, assist the buyers in establishing three prices….aspired, acceptable and walk-away.
6. Share with the buyers that establishing a three price (or value) system, appropriate positions the buyers in a prudent mode for negotiations.
7. Modify and adjust according to market conditions and specific pressures on the buyers.
B-15
Negotiating Assistance/Counseling
1. Stress the importance of building a negotiating strategy BEFORE viewing many properties and certainly before constructing an offer for seller consideration.
2. Present and explore the various parties with whom negotiations might take place, i.e., listing/seller’s agent, dual agents, attorneys, experienced sellers, by owners, builders and others.
3. Identify the factors that influence the relative strengths and weakness of the buyer….market conditions, terms, price, seller assists, timing, contingencies, financing options, property condition, flexibilities, risk taking ability, and others
4. Anticipating the stresses that will occur in the negotiating process and the critical importance of maintain the proper tone during negotiations.
5. Avoid the impulse to “take it personally” when an initial offer is disappointing or even “insulting”. Understand the “game” of negotiating.
6. Share the various way messages are sent during negotiations and use them to our advantage
7. Be creative and willing to go outside the tradition norm to impact the other parties in a negotiation.
8. Inventory past experiences and reflect of what worked, what didn’t, what was counter productive, what was upsetting and what was effective.
9. Recognize the wide range of negotiating opponents be they sellers, their agents or representatives.
10. Think big…even to the point of what would make this “deal” work for the other side.
1. Share with the buyers the Agreement Analysis Guide (Item 11 in #15 above) before actual agreements are constructed for presentation.
2. Provide a sample sales contract/agreement of sale of pre-sale review and familiarization.
3. Specifically highlight the more critical sections, portions or paragraphs in anticipation of what might be submitted for consideration.
4. Prepare buyers for contract consideration and fulfillment by sharing the full ramifications of the contract’s more critical clauses/paragraphs.
5. Draw from the buyer’s current and past experiences how they handled and reacted to specific contract provisions…both as sellers and as buyers.
6. Present options and counter-offer positions along with the likelihood of them being seriously considered and/or accepted.
7. Emphasize the fact that NO PRESSURE will be applied to accept or reject any contract provision. Add, however, that in many cases a strong recommendation will be provided.
8. Extract from an accepted contract of sale the specific provisions that will impact and influence the progression toward final settlement.
9. Establish a specific schedule of dates and events to monitor the progress of contingency activity and removal. Within this schedule, insure communication with the all parties – the buyers, the listing agent, service providers and the sellers.
10. Be prepared to act promptly and decisively to problems and concerns that result from contingency removal activity.
11. Incorporate the status reports on contingency removal and contract fulfillment into the normal status report schedule designated during the marketing phase.
1. At time of offer preparation, review the checklist of due diligence inspections and consultations that might be considered.
2. Incorporate those inspections that are deemed necessary into the contract while taking into consideration the impact they will have on the overall attractability of the contract.
3. Once contract is accepted by the sellers, proceed to schedule the inspections itemized in the contract.
4. Provide, as needed, a list of possible inspector from which the buyer might choose their inspectors.
5. Assist the buyers in securing the inspectors, confirming their scope of work and fee determination.
6. Assist the inspectors in getting access to the property for their inspection.
7. Coordinate with and inform the sellers and sellers’ agent, as appropriate.
8. As appropriate, remove the inspection contingencies or confirm the inspection report results that effectively indicates that the contingency has been met.
9. Coordinate with the buyers, sellers and sellers’ agent a specific date and time for the final ‘walk through’ personal inspection (by the buyers) immediately prior to closing.
10. Accompany buyers on walk through, as appropriate and mediate concerns and issues with sellers’ agent.
1. As contingencies are removed or attended to, keep the buyers informed and provide targeted or scheduled closing date, location and time.
2. Provide the buyer with a checklist of items they should consider attending to on or at closing.
3. Provide the buyer with a checklist of items they should attend to in getting ready to move and depart current home (address change notices, utility change over, etc.).
4. Advise the buyers of scheduled “walk throughs” and inspections.
5. Attend settlement with or, if appropriate, in place of the buyers. Inform the buyers of the activities and events that transpire at settlement.
6. Provide a checklist of items the buyers should take to settlement.
7. Coordinate with sellers, listing agent and other parties to effect smooth transfer of possession.
8. Follow up periodically with the referring agent, if one is involved, to coordinate events and priorities.
9. Offer HomeLink services as applicable
10. Offer “settling in” service brochure and package.
1. Inform buyers throughout the home search process to provide feedback and analysis of service quality.
2. Inform buyers that a third party company will be contacting them after settlement soliciting their evaluation of our services. Encourage them to take the time to respond.
3. Specifically ask what we could do to improve our service.
4. Consider providing a copy of the survey early in the transaction so they might anticipate its post sale arrival.
5. Encourage buyers to respond to the survey candidly and honestly. Inform them of the critical nature of getting good feedback.
6. Invite direct and written communication from the buyers commenting on service quality.
7. Share with the buyers the results of past surveys and share your commitment to build your business by offering quality service and a willingness to be held accountable.
1. Provide the buyers with a copy of the settlement statement in January of the year following sale and settlement.
2. Consider a thank you gift or remembrance
3. Advise the buyers early on that you would want to use them as a reference for future buyer clients. Follow up after sale to confirm permission and secure contact numbers.
4. Provide consumer information via mailings or e-mail in order to keep these satisfied clients up to date on critical and nice to know items.
5. Schedule a twice a year follow up call…thinking of you…to maintain contact and secure continued feedback.
6. Periodically provide them with statistics regarding your productivity and service record.