Chapter 9: Working with Buyers Summary

Home Ownership - Advantages

• The value of the property can increase over time.
• As the owner pays down the mortgage, the equity increases
• Several income tax deductions. 

Home Ownership - Disadvantages

• Over time, a home could lose value. A home is not a "liquid" asset.
• The upkeep and maintenance costs could be substantial.
• Foreclosure due to nonpayment of taxes. 

Home Ownership - Affordability

• "Can I afford to own property?" Homebuyers must have access to or be eligible for down payment money, money for closing costs and a mortgage loan.
• Expenses associated with ownership include utilities, trash services, maintenance, insurance, etc.

Telephone Inquiries

Floor Time: periods when agents can take inquiries. When a licensee is on floor duty, any new caller who does not ask for a specific agent by name becomes that licensee's prospect. Important for licensees who are trying to build a client base.

The less information you give, the less chance the caller will find a reason to eliminate the property and the better chance you'll have of getting an appointment to show it. Poorly handled calls result in wasted advertising dollars.

Preparing for Inquiry Calls:

• Knowing your inventory- Keep copies of your own ads and your office ads from the previous week on your desk for easy reference.
• Knowing your community- Have a map of the community within easy reach, either on your desk or posted on your office wall.
• Understanding the responses generated by your different advertising media- Callers who inquire from classified ads and For Sale signs typically buy other properties than the one they initially inquired about.

Guidelines when handling each call from a prospective buyer:

• Get the caller's name and telephone number.
• Find out which property the caller is interested in and why.
• Try to give as little additional information about the property as you can.
• Set a place to meet your prospect.

Setting the Meeting - ask the prospects to meet you at your office. It gives you the advantages of having office staff available and access to your computer and the MLS listings to research alternative listings.

Problem Calls

• Won't give his or her name?
  • Tell callers that you have fliers on other properties that may interest them and ask if you can put together and mail a packet. 
  • Inform callers that you send out emails of new listings with pictures.
• Insists on just an address?
  • Tell them that just seeing the outside could cause them to miss out on all the unique features that they will see only by visiting the property.
  • If the caller insists on doing the drive-by, offer to meet him or her at the property to show the inside.
  • If callers say they already have an agent, tell them you'll be happy to contact the agent and give him or her details about the property.
• Won't give you an appointment?
  • Ask permission to call the prospect when you find a listing that meets the prospect's criteria.
  • Ask permission to mail the prospect information on other properties that meet his or her criteria.
  • Ask the prospect if you can e-mail him or her information about new listings that come on the market.

Keeping the Prospect - suggest that he or she go through the ads and circle all other properties of interest. Ask the prospect to bring the paper to your meeting so that you can look up information on all the circled properties.

The Buyer Meeting

• Collect information: demographics, current information, needs and wants and financial information.
• Qualify the buyers. Determine what your prospect can afford and find properties that fit into that range - have them go through a lender's prequalification
• Discuss alternative properties
• Explain some forms. Sign the Disclosure Regarding Real Estate Agency Relationships. Give the buyers a blank copy of your firm's standard purchase agreement

Showing Property

Determine your approach. Know what specific features of each property you want to emphasize when you show it. 

Conducting the showing

• Plan the route you take from one showing to another.
• Make positive comments about the neighborhood, attempting to educate the buyers about its unique characteristics.
• Pointing out recent sales of similarly-priced properties in the neighborhood will increase the buyers' view of you as a successful agent and help solidify their price range.
• Once inside the home, point out those features that are important to the buyers and de-emphasize those that are not important.
• Selling the home by asking who, what, where or how questions for each room and feature helps the buyers see themselves in the home.
• Invite comparisons from one property to another.

Professional courtesy tips when showing property:

• Knock on the door or ring the doorbell before entering with the lockbox key.
• Leave the home the way you found it. Never smoke in a seller's home.
• Double-check that all outside doors are locked before you leave.
• Always leave your business card at each property, even if the sellers are at home.
• Avoid making negative comments about a home while you are still inside.

Once you've completed the first round of home showings, take the buyers back to your office if you can.

If they are serious about buying, ask them to contact you about homes they've seen in ads or at open houses. If they are approached by another broker, they should have the broker call you.