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

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 Buyers Want Help

1. Finding the right home (50%)

2. Negotiating price and terms (13%)
3. Determining sales prices of comparable
homes (10%)

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 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%)

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 Stages in a Real Estate
Transaction

1. Needs assessment
2. Property selection
3. Viewing properties
4. Negotiating
5. Follow through

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 Needs Assessment

Buyer - client Buyer - customer

Buyer’s needs Seller’s needs
Buyer can talk freely Full disclosure to
Advise buyer on seller
alternative solutions Focus on the
seller’s property

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 Property Selection

Buyer - client Buyer - customer

Find best property Get best offer
Leave no stone Show listed
unturned properties only
Give first look at new Lower level of responsibility
listings Limit properties to buyer’s
All properties are affordability
available range
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 Skill Builder Tip

Recommend
inspections
Get a C.L.U.E. Report

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 Viewing Properties

Buyer - client Buyer - customer

Okay to give advice Material facts only
Educate the buyer Protect the lesser
(client)

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 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
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 Negotiating
Buyer - client
 Educate the buyer
 Negotiate for the buyer
 Provide price counseling
 Contract
 Financing
 Continue services
 Strengthen position
 Share all info about seller
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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
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 Follow-Through

Buyer - customer Buyer - client

Follow through on Follow through on
behalf of the seller behalf of the buyer

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 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
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 Finding Properties

 MLS  FSBO file

 Fax broadcast *  FHA / VA
 Personal foreclosures
solicitation *  Auctions
 Internet  New construction
 FSBO publications  Others

* Remember do not call, fax, and e-mail laws

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 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

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 Foreclosures

 Forced sale of real estate to repay a debt

- auction
- sheriff’s sale
- short sale
- judgment lien
- REO
 Not for every buyer

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 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

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 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

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 Skill Builder Tip
 Document the transaction with copies of
agreements, memos, e-mails, 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

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 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

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 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

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 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
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 Federal Protected Classes
- Race
- Color Everyone is protected by
- Religion Fair Housing Laws.
- Sex
- Handicap State, county, and
municipal laws may add
- Familial status classes
- National origin

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 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?

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

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 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
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