Module 4
Marketing Opportunities in the Buyer Counseling Session
4-1
Think Creatively
Fancy That
4-2
THATTHAT
Quick Survey
Write down the ONE(1) thing you like MOST about representing buyers.
Write down the ONE(1) thing you like LEAST about representing buyers.
Like Most?Like
Most?Like
Least?Like
Least?
4-3
Like Most… Excitement & satisfaction 27%
of helping buyers find their dream home
Satisfaction of serving 24% buyer’s needs
Broader Survey Results
Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real Estate
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Broader Survey Results
Like Most… Getting paid faster 15%
Friendship & referrals 5%
Lower costs than listings 5%
Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real Estate
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Broader Survey Results
Like least… Buyer disloyalty 29% Buyer indecision 19% Lack of honesty 11% Wasting agent’s time 8% Driving buyers around 6% Unreasonable expectations 6%
Can these be controlled?
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Based on a 1998 survey of 260 ABR students conducted in Arizona & California by Hogan School of Real EstateHow can these issues be minimized?
Counseling Session Goals
Eliminate the three Us Unmotivated Unqualified Uncommitted
Increase BBA What’s yours?
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Counseling Session Goals
Position yourself & re-position your competition
Get the job Exclusive agreement Today or tomorrow?
4-8
Differentiate yourself
The Power in Words
Speak from the buyer’s perspective:From: To:
Sell vs. Help acquireSalesperson vs. Business consultant Deal vs. TransactionCMA analysis vs. Customized mkt.
analysisPre-approval vs. Loan commitment
Other“Power”Words
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The Interview
Who’s interviewing whom? It’s not about price, bedrooms or
baths Buyers don’t care about you until
they know you care about them Exceed expectations Defeat the stereotypes
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The Interview
Discuss the “hard issues:” Environmental Megan’s Law Due diligence Agency disclosure Contract issues Total and accurate acquisition costs
Business consultant
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Hard
Yes, these are REAL!
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Issues
Example:
Restrictive Restrictions
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Hard Issues
Example:
Protecting the Buyer regardingMegan’s Law& Scorpions
Exclusivity
Duration
Compensation
Top 3 Agent Fearsabout Buyer Broker Agreements
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Non-Exclusivity
It’s an open listing All risk, no reward Wastes buyer’s time Wastes agent’s time Promotes disloyalty & indecision
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Exclusivity
Balances risk / reward Reduces wasted time Promotes loyalty Displays decisiveness
Caution: Exclusivity demands the agent’s commitment
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Duration
Don’t use a property “listing mentality”
Analyze buyer motivation & urgency High present need -- short term More distant need -- longer term
Don’t “short change” yourself Allow for cancellation Allow for trial period
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Compensation
Question: Are your services valuable?
Answer: YES!!!!
Conclusion: You deserve to be paid.
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Compensation: Paid by…
Seller 56% Buyer as % of price 12% Buyer & seller 11% Buyer as flat fee 2%
In 25% of the transactions, the Buyer paid some or all of the fee.
From NAR’s 2001 Profile of Homebuyers and Buyer Agents4-19
Modes of Compensation
Percentage of acquisition cost Flat fee Hourly fees
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Compensation Considerations
Stated clearly in agreement? Accept MLS co-op? What if co-op is lower? What if co-op is higher?
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Compensation Considerations
If unwilling FSBO…? If unwilling builder…? Does buyer have the $?
If willing FSBO… Single party listing or… Seller compensation with no agency?
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Hourly Fees
New homes Menu of services Consulting Expert witness services Research for investors
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Retainer Fees
Indicate commitment Assure some compensation Consider:
Accounting Apply toward full compensation? Are you committed?
Caution: Be consistent as to how and to whom you charge retainer fees. Keep Fair Housing Laws in mind.
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Reports & Time Charts
Make services tangible Keep account balances Prepare invoices
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Time Sheets & Report
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You want me to sign WHAT?
Breakout Session: What services do you perform that
add tangible value to the transaction for the real estate buyer?
How do you differentiate yourself from your competition?
WHY?
4-27
Let’s Play 20 Questions
Curtis Hall’s 20 Questions Generate ideas Focuses on issues
See Appendix
4-28
Is it a Go or a No Go?
If a Go: Run all the bases and
“Bring the Buyer Home.”
If a No Go: Thank the prospect and
wish them well.
4-29