Steps Agency Buyer Agency Consultation Draft 1:
We do this because we are professionals not taxi drivers.
We want to differentiate ourselves.
And get commitment to working with us. Do we work with sellers not in contract.
Name of Buyers______
Currently renting or owing: Address:______
Phone Numbers Cell for Both His______, Hers:______
Email His______, Hers______
Working where: His______, Hers______
Preapproved yet with your lender ____________
Mr and Mrs Buyer thank you for taking the time to come into our office to meet with me about helping you find your ideal home. Since this is our first time working together I have a few questions to ask you… before I do that what questions do you have for me?
Great, I will cover those today..
Let me be clear my role in helping you buy your dream home is to be your advocate in the sale process to protect your time and money when you go to buy a home. My goal as your real estate professional is to get you the right home at the right price. I will ensure that I provide you all the information so you will be 100% confident in buying a home.
Sales vs. Consultant.I put my consultant hat on so I am providing you the information so you will make the right decision and not be pushed into a decision by a pushy salesperson.
- Tell me is this a first time buying a home?
Response
- Are you familiar with the home buying process?
3.Have you already spoken to a lender regarding the financing of the home?
______
Excellent now I would like to review some of the questions we spoke about over the phone or(if did not speak with them)--- Now I’d like to ask a few questions so I can get an good idea about the perfect home for you?
Please describe the ideal home for you—ask both folks:
A Detached home or a condo or townhome ideally?
Home many bedrms? What about Bathrms? Minimum SF______
How many garage spaces?What type of yard? Lot Size minimums______
Any special features?- Bonus room, fireplace, cul-de-sac, ect?______
What areas are your top 1 to2 areas for you- or zipcodes or subdivisions?
Are there areas we should avoid?
Are school districts important to you?
Are you ok with a home that needs work or do you want a move in ready home?
What price range would you like to stay under? ______
Are there homes online you’ve seen that you would like to share with me?
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2-
3-
Are you wanting to look at resale homes or would you like to see new construction as well?
What is the perfect timeframe for moving to the new home?
Ok so you are looking for a home that is (read back specifics). Tell me, what’s important about finding this home? That’s great… and how would it feel if I could find this home for you? That is great… I look forward to finding that home for you!
So the let me go over the current process of Buying a home (1st time or experienced) our goal in the process so you are comfortable with how we will proceed in the next few weeks:
Step 1- Is not the right time? Based on everything you’ve told me so far it definitely sounds like now is the perfect time for you to buy a home.
Step 2- Get Preapproved by a lender for a mortgage: Our lender works right here in our office and if it’s ok when we are finished I can introduce you to him and have you spend just a few minutes go over the pre-approval process. How does that sound?
Step 3- Find your ideal home:
What I am going to do is set up a search on the mls with the criteria you given me. (In fact I can set up a search right now while you speak with the lender and we are going to set up a time to look at homes before we finish up today). I can have it update you daily with a summary of any new properties immediately the second it hits the market.
Can I share with you 4 ways we go well beyond other agents to ensure we get you the perfect home? Well were you aware 20% of homes are selling before they hit the market or are never listed at all. Meaning they are never seen by the average Buyer. If I could help open up new listings to you because you work with me would that be a good thing for you in finding the right home? Of course it is..
We do this in 5 important ways to get you more home to look at and choose from:
Now that I know the areas you are interested in and as we get more into the search I will get even a better idea we will do the following activities:
Doorknocking- This is one of the best ways we find potential sellers and homes in specific area you would like to live. We find many homes this way either by talking directly to a Seller or a neighbor tips us off about someone.
Telemarketing into areas-Similar to door knocking we can call into area with sophisticated systems to these neighborhoods looking for sellers.
Expireds, withdrawns, or cancelled listings- These are homes that were on the market and did not sell over the last 2 to 3 years in these areas. Oftentimes these sellers would prefer to sell it without the hassle of listing formally.
Database- With over 3k past clients, vendors and business connections we are always asking our folks if they are wanting to sell their home and that may be someone in an area you desire.
New Construction and FSBO’s- Many times these properties are not listed in the MLS but could be a good fit for you.
Different Type of Markets:
Navigating the different types of market can sometimes be challenging. There are 3 type of markets we can face as a Buyer.
A Balanced market is when the demand and the supply of homes is equal and there is no appreciation but there is not depreciation of home values either. This usually means we have about 6 months of supply for the number of buyers in the market. For example if there was1 home sale a month there would be 6 homes for sale.
A Seller’s Market- This is the current market we are facing which means the demand for homes outpaces the number of Buyers in the market. We currently have only about 1 month of homes. This also means home prices are increasing last year the appreciation was about 10% and similar for the year before that means a home that was selling for $400,000 just two year ago now sells for $480,000 most likely.
A Buyers market means the supply of home far exceeds the Buyers in the market, usually the supply of homes is in excess of 6 months and home prices are decreasing.
So what does this mean for you when you are buying a home. The average for homes that are listed in this market are selling at 99% of list price. If you found the right home are you prepared to pay the list price for the home if it were the ideal home? The good news is my Buyers averaged paying only 97.5% of list price when they worked with me, so in the your price range that means a savings of______. (use number later if problem with agency)
Different type of Sellers:
Traditional Sales- These are seller who have equity in their homes and ware usually looking to close in 30 to 45 days. When writing a traditional offer we negotiation directly with the seller or agent. Does this make sense that this is the easiest and most direct way to purchase a home.
Short Sales- These are sellers who owe more than what they can sell their home for and therefore we have to negotiate with their bank to receive approval of the lesser amount. Typically this can take 4 to 6 months
Are you able to put your home search off 4 to 6 months not knowing if the bank will or will not approve the purchase for your family?
Foreclosures: These are owned by the bank and have been foreclosed on and taken back. The banks are motivated to sell quickly and properties are sold “as is” typically.
Step 4- Escrow Process- Are you familiar with the escrow process? Once I find that ideal home for you and negotiate the best possible price we will open up escrow with includes scheduling the home inspection and reviewing disclosures. As we get closer I’ll get more detail on this process.
Step 5- Closing- Ready to hear about the last and easiest step? As the close of escrow date approached we will work with to make sure the transfer of utilities and any other final details are met prior to your move in.
So now we have gone over the process- your search criteria, and the market conditions the next step is scheduling a time to view properties, would you feel comfortable working with me to buy a home? (yes-)
Great all we need to do now is talk about how I will represent you is that ok?
So let me tell you why 100% of my clients choose agency- . You see in the state of Colorado client can choose to work in two ways. The first is what is called a transaction broker relationship, are you familiar with that term? (no)
What it means is that the Buyer is in essence assuming the responsibility and legal responsibility and only hiring an agent to manage the transactional paperwork, process and disclosures. The Transaction broker can prepare the documentation and provide the proper disclosures to the buyer, they can set up searchs and show homes but they can not advise them as to the proper pricing of the home and are not legally bound or held to the same level of service or legal representation. The only advantage to the Buyer is they are free to work with multiple agents, I call this the do it yourselfer-- model. I think of this as having Switzerland on your side when going into war, they may be a war body but not there to be your trusted partner.
The second way we could work together is the Buyer Agent Model- The legal description is “The agent negotiates on behalf of and acts as an advocate for the Buyer. The Buyer’s agent works solely on behalf of the buyer to promote the interests of the Buyer with the utmost good faith, loyalty and fidelity. In this relationship an agreement must be signed stating that the Buyer wants this type of relationship. This is like hiring a US marine to go into to battle with you also have a lot more protection with Errors and Omissions insurance if something major is missed or done incorrectly. Not that I have ever had an issue but I would like you to be more protected.
Can you see why all my clients choose to hire an advocate versus a paper transaction person? I mean this is one of the biggest financial decisions in your life would it make sense to have someone helping you out through out the process. And do you know that great news is of course the seller pays my fee so you pay nothing for this higher level of service and representation.
The other great thing is this allows me to provide a higher level of service because I choose to work only with people who choose agency because they allow me to serve them better and that grows my business by getting referred all their friends and family in the future. I also have a 100% service guarantee within my agency agreement saying if you are not fully satisfied you can fire me at anytime in the first month we work together so you can get to know me.
Let’s go through the paperwork so you are crystal clear on how I will be your advocate. Sound good… great I am so excited for you to get started.
I don’t want to sign:
Can you share with me your hesitation since if you don’t like working with me you can get out? (address the issue)
Want to keep my options open—if you find me the home.
I can appreciate the thought can I share with you the disadvantage to that approach for you, especially in this market where properties sell in just a few days.
You see in this market there are some real disadvantages to working on your own. You see agents are trained to divide Buyers into 3 categories I will share with you.
A Buyers- Willing able and ready to buy right now? And committed to just working with that agent.
B Buyers- a condition in a lease not familiar with area, investor buyer all bottom line oriented… No emotion. Who are in agency with an agent.
Lastly are
C Buyers- These are people not wanting to enter an agency contract, those people that say bring me a deal and I might buy it. My concern for you.
Is this when a new great property comes on the market or we find out about a home that is not listed but a seller may want to sell. Each agent calls their A Buyers first since they are committed to working with them and most likely to buy with them. If that property does not work for any and all of those Buyers they then call the B Buyers and do the same thing. Only if those properties don’t work for those Buyers do they call their C Buyers since they have no loyality and could cut them out and go directly to the seller.
Can you see why the level of service and the quality of homes you might get to look at is typically only the picked through inventory. Bad approach in this market where homes are on the market so soon, you miss the good homes. This approach may have worked out in the past.
Don’t want to sign the agency:
I understand and to provide the Nordstrom service levels that I require so that they are thrilled clients for life which is our philosophy a commitment is necessary. Hear is the great news after we sign a 90 day listing today if you are not happy with my service unlike a marriage you give me 24 hours to correct any possible items you can fire me anytime with no financial costs to you. How does that sound.
Have one more meeting:
Why don’t we do this sign the paperwork today go out x time and see if we are a good fit. Do you feel comfortable we would work well together? Me too why don’t I do this I will call the other agent and let him know we are working together and save you time because I know they won’t do the 5 things we do to show you the missing 20% of homes out there. And if after a few weeks you do decide this is not working out you can always hire them then right. Though likely with me working so hard I will already have found you that great home.