Sales Representative Contract by vlm16799

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Sales Representative Contract document sample

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									     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
                                              4-1
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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%)




                                             4-2
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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%)




                                        4-3
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     Stages in a Real Estate
     Transaction

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

                                          4-4
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     Needs Assessment


      Buyer - client      Buyer - customer
       Buyer’s needs      Seller’s needs
       Buyer can talk     Full disclosure to
        freely              seller
       Advise buyer on    Focus on the
        alternative         seller’s property
        solutions
                                           4-5
68
     Property Selection


     Buyer - client         Buyer - customer
      Find best property    Get best offer
      Leave no stone        Show listed
       unturned               properties only
      Give first look at    Lower level of
       new listings           responsibility
      All properties are    Limit properties to
       available              buyer’s affordability
                              range                 4-6
70
     Skill Builder Tip

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



                               4-7
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     Viewing Properties


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




                                                     4-8
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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
                                                  4-9
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     Negotiating

     Buyer - client                   Buyer - customer
       Educate the buyer               Material facts only
       Negotiate for the buyer         Negotiate for the seller
       Provide price counseling        Price (CMA to support the
       Contract                         seller)
       Financing                       Contract
       Continue services               Financing
       Strengthen position             Continue services
       Share all info about seller     Strengthen position
                                        Share all info about buyer
                                                              4-10
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     Follow-Through



     Buyer - customer         Buyer - client
      Follow through on       Follow through on
       behalf of the seller     behalf of the buyer




                                                4-11
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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
                                            4-12
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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
                                                        4-13
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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
                                                        4-14
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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


                                                  4-15
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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
                                                               4-16
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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



                                                4-17
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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

                                                4-18
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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

                                                 4-19
91
     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

                                                  4-20
92
     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
                                                    4-21
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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


                                                     4-22
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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?
                                                4-23
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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



                                                   4-24
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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
                                                4-25
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