working with real estate buyers

Fundamentals in Real Estate Series Part 5 Working with Buyers

Pranav Pandya

Franchise Development Manager

RE/MAX Mumbai Gujarat Maharashtra

RE/MAX Mumbai Gujarat Maharashtra

RECAP

• Part 1 - Getting Started• Part 2 - Marketing• Part 3 - Prospecting• Part 4 – Working with Sellers

RE/MAX Mumbai Gujarat Maharashtra

Today’s Agenda• Where do you find them?• What can be done to attract them?• Qualifying buyers• The buyer interview• Property selection• Showing property• Sample due diligence checklist• Overcoming objections• Safety considerations• The lowball offer• Seminar selling• Six mistakes buyers make

WHERE DO YOU FIND THEM?

RE/MAX Mumbai Gujarat Maharashtra

Ways to find buyers

• Calls on property ads – newspaper/magazine

• Sign calls• Former clients, friends, center of

influence, etc• Open houses• Door knocking and cold calling• Clients with homes currently listed

RE/MAX Mumbai Gujarat Maharashtra

• Website inquiries• Social media• Generic promotion ads - bus benches,

billboards, etc• Referrals• Flyers, Just Sold/Just Listed inquiries• Office call duty inquiries• Office leads• Relocation referrals• Referrals from veteran Sales Associates

WHAT CAN BE DONE TO ATTRACT THEM?

RE/MAX Mumbai Gujarat Maharashtra

Sources of Obtaining Buyers

• Home matching service• Market evaluation • Market updates• Buyer information booklet • Home search plan• Pre-qualify• Buyer seminars

RE/MAX Mumbai Gujarat Maharashtra

Specific type of buyer

• First time buyer• Condominium buyer• Buyers looking in a specific neighborhood

area• Buyers who sign representation

agreements• New construction home buyer• Executive homes

QUALIFYING BUYERS

RE/MAX Mumbai Gujarat Maharashtra

Ask Questions

• When do you want/have to move?• Why is that an important time?• How would your plans be affected if you

moved sooner? Later?• If you found a home today, are you

prepared to purchase it?• Where are you currently living?

RE/MAX Mumbai Gujarat Maharashtra

• Do you own your present home or are you renting?

• Will you need to sell your current home before you purchase?

• Have you been pre-qualified for a loan with a lender?

• How long have you been looking for a new home?

• How many homes have you looked at?• Why didn’t you buy one of those?

RE/MAX Mumbai Gujarat Maharashtra

• Is there anyone else who is going to be purchasing this home with you?

• Are you working with a Sales Associate? If yes, have you signed an exclusive buyer representation agreement? Is the agreement current or has it expired?

• Do you have any other ads circled that you were planning to call for information? If yes, please give me the names and addresses, I’ll research and provide the information when we meet.

RE/MAX Mumbai Gujarat Maharashtra

Financial Qualifying

• What price range do you have in mind?• How did you decide on that amount?• How much over that amount would you go if the

home was really appealing?• What monthly payment are you comfortable with?• Do you know about different down payments and

closing costs? • Is your down payment a gift from someone?• Do you have the down payment in your own savings

account?

RE/MAX Mumbai Gujarat Maharashtra

Needs and Priorities

• What will this move accomplish for you?• What neighborhoods interest you?• How far from work do you want to be?• What items must be present in your new home?• What feature, or lack thereof, would immediately

rule out a home?• What type of home are you looking for? What

size?• Are you moving up or scaling down?

THE BUYER INTERVIEW

RE/MAX Mumbai Gujarat Maharashtra

• A Buyer Presentation include• Offer of purchase and sale agreement• Mortgage rate/financing information• Articles on market conditions and statistics• Your newsletter• Testimonials• Title insurance information• Area information• Relocation information Utilities info, moving

with kids’ info, property tax info

RE/MAX Mumbai Gujarat Maharashtra

• Schools, Utilities, Amenities information• Home Buyer Plan of your city• Buyer representation Agreement• Want / needs form• Buyer Guide• Closing cost information• Agency brochure• Your resume, personal brochure or “Meet

_____________” with contact information• Company brochure• Map Book

RE/MAX Mumbai Gujarat Maharashtra

• Obtain all the relevant buyer information• Names (correct spelling)• All pertinent phone numbers incl. business,

fax, emergency• E-mail address• Employment details, where, for how long• Family members names and ages, education

requirements• If out of town, where family and friends are

located

RE/MAX Mumbai Gujarat Maharashtra

• Discuss Finances• Employment history • Down payment • Credit

• Discuss Buyers’ Needs and Wants• Discuss and Sign Buyer Representation

Agreement• Review Purchase Agreement• Discuss Procedure Followed for Viewing

Homes• Keep in Constant Contact

PROPERTY SELECTION

SHOWING PROPERTY

SAMPLE DUE DILIGENCE CHECKLIST

RE/MAX Mumbai Gujarat Maharashtra

• Professional Property Inspections

• Protect Yourself and Your Client

• Presenting an Offer

• Negotiation

OVERCOMING OBJECTIONS

RE/MAX Mumbai Gujarat Maharashtra

• Typical Objections

• Handling Objections

• Other Buyer Objections

• Commission Cutting

SAFETY CONSIDERATIONS

THE LOWBALL OFFER

SEMINAR SELLING

6 MISTAKES BUYERS MAKE

RE/MAX Mumbai Gujarat Maharashtra

1. Not Pre-qualified

2. Don’t shop for a mortgage

3. Don’t get professional inspections

4. Don’t use a professional Sales Associate

5. Buy first

6. Don’t know the cost of buying

RE/MAX Mumbai Gujarat Maharashtra

Thank You