Inside

page 3 Textbook Challenges for Buyer’s Reppage 4 Taking Buyers Back to Schoolpage 7 New Consumer One-Sheet:

5 Dos and Don’ts on Property Tours

Next Month: The Power of Scripts

September 2018 Volume XXVII Number 9

“…buyers may reach the conclusion that agents only open doors and write contracts. ‘Why do I need an agent’s help?’ they ask.”

page 4 Taking Buyers Back to School

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page 2 TBR September 2018

Stock Up Sale!

ABR® Benefits and Updates

ABR® BENEFITS AND UPDATES

ABR® SPOTLIGHT

CompanyKeller Williams Realty Coastal Area Partners

LocationSavannah, GA and surrounding counties

Years as an ABR®

2

How has the ABR® designation helped your business?I’m a buyer specialist on a team. My buyers know that I keep up with trends, laws, and issues affecting them through my ABR® designation.

The best part of working with buyers?The excitement when they find “the one” and knowing I helped make that dream come true.

Laura Yeomans, ABR®

Produced especially for ABR® designees, the Home Buyer’s Toolkit is one of our most popular member benefits. Now, for a limited time, you can buy 50 copies and get 20 more free!

Not familiar with this booklet? It talks buyers through 10 essential steps toward completing a successful home purchase while emphasizing the importance of working with an Accredited Buyer’s Representative (ABR®).

If desired, you can also customize copies, adding your photo and contact details to the back cover at no extra charge.

To take advantage of this limited-time offer (through October 31, 2018), visit the REBAC Print Shop, accessible via the Member Center at REBAC.net. You can also access the Print Shop directly, using the same login credentials, at printingstorefront.com/rebac.

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TBR September 2018 page 3For Buyer’s Reps: Textbook Challenges

Problem: Buyers are attending open houses on their own.

Solution: Acknowledge the allure and the risks of open houses in your initial buyer consultation. Give buyers at least 10 of your business cards, ideally with a “buyer’s agent” sticker on front. Ask them to give the listing agent one of these cards when they arrive at an open house.

Encourage your buyers to wear a poker face during the entire visit. Explain that all verbal and nonverbal communication can and will be used against them during negotiations. If they’re interested in the home, they should contact you AFTER leaving so you can arrange a private showing.

FOR BUYER’S REPS:

Textbook ChallengesProblem: Buyers are taking and sharing property pictures.

Solution: First, know your state laws. Usually, buyers are not permitted to collect videos and photos while in the property, or live-stream, without the owner’s consent. Sharing those images with others raises the stakes, harming their negotiating position and creating more liabilities.

Remind buyers that house-hunting is a private and confidential matter until they own the property. If they want to live-stream their showing to a significant other who can’t attend, request permission from the owner. Buyers will also need permission from any other individuals who may be captured in the recording, such as the listing broker or the seller.

Remember, this also applies to buyer’s agents, in cases where you’re helping a relocating buyer find a property, remotely.

Problem: Buyers discover an undesirable fact about the neighborhood after going under contract.

Solution: Many states limit a listing agent’s duties to disclosing problems concerning the “four corners” of the property. Other issues, like a registered sex offender living next door, won’t be disclosed.

To prevent this scenario, identify the best online tools for reporting on criminal activity in your market, potentially including CrimeMapping.com, CrimeReports.com, and FamilyWatchdog.us. Encourage buyers to use these resources before making an offer.

Also, be sure to explain why this rests on their shoulders—that fair housing laws prevent real estate professionals from getting involved in many aspects of neighborhood selection.

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Explaining ZillowMost buyers love Zillow. It offers a user-friendly experience that arms them with a wealth of property information.

It’s essential to respect buyers’ opinions about the site, while also explaining Zillow’s major shortcomings:

1. Zestimates – In the fine print, Zillow concedes that Zestimates are “a starting point to determine a home’s value”

and that a real estate agent’s CMA is an important next step. But how many buyers read the fine print or understand what this means?

2. Missing data – Listed properties, data fields, and photos may not appear in Zillow. Further, it’s not as current as the MLS—a significant downside in hot markets.

3. Advertising – Each listing includes well over a dozen paid ads (for agents,

lenders, insurance, etc.). Remind buyers that Zillow is first and foremost an advertising platform. In contrast, the MLS is ad-free. Do they want to be informed or sold?

On the flip side, buyer’s reps SHOULD be using Zillow to help identify suitable properties for buyer-clients that aren’t in the MLS, including For Sale by Owner, Make Me Move, and Coming Soon. Take advantage of this free resource.

page 4 TBR September 2018 Taking Buyers Back to School

That’s not necessarily a negative development if it means buyers have already done their homework, refined their search criteria, and are ready for serious property-hunting.

Other Challenges

Of course, it’s not fair or accurate to make sweeping, critical generalizations about buyers. Most buyer’s reps sincerely enjoy working with them!

However, when challenges do occur, they can take many shapes and forms. Do any of these buyer scenarios strike a chord?

■ They’ve studied dozens of property listings, but are insufficiently informed on other mundane topics, like securing a mortgage.

■ A friend or relative with no actual real estate experience is coaching them on the side, discrediting you and your professional advice.

■ They speak openly and enthusiastically to the listing agent at an open house, then expect you to help them negotiate a lower price.

Lacking knowledge, it’s easy for buyers to make these and other mistakes. You do this stuff every day. Most buyers can count their transaction experiences on one hand.

Turning the Tables

There are countless ways to handle these and other challenges with buyers. Usually, superior results rely on

By September, most students have returned to school. It’s a good time to take a fresh look at buyer education. What lessons can you share with your buyers?

More importantly, when sharing those lessons, how can you improve your “teaching” skills? After all, teaching is the sum total of several essential qualities: understanding students’ needs, preparing good lesson material, anticipating questions, and more.

Buyers Have Changed

Today, buyers have extensive online access to information on

properties, prices, and more. Does this mean buyers are more informed? Yes and no.

It’s easy to confuse information with knowledge. After spending hours researching homes on property sites, buyers may reach the conclusion that agents only open doors and write contracts. “Why do I need an agent’s help?” they ask.

Buyers’ easy access to information has also altered the historical flow of transactions. Often, agents get involved later in the process, when buyers are ready to start touring properties.

TAKING BUYERS

Back to School

TBR September 2018 page 5Taking Buyers Back to School

1NAR 2017 Profile of Home Buyers and Sellers

That’s not necessarily a negative development if it means buyers have already done their homework, refined their search criteria, and are ready for serious property-hunting.

Other Challenges

Of course, it’s not fair or accurate to make sweeping, critical generalizations about buyers. Most buyer’s reps sincerely enjoy working with them!

However, when challenges do occur, they can take many shapes and forms. Do any of these buyer scenarios strike a chord?

■ They’ve studied dozens of property listings, but are insufficiently informed on other mundane topics, like securing a mortgage.

■ A friend or relative with no actual real estate experience is coaching them on the side, discrediting you and your professional advice.

■ They speak openly and enthusiastically to the listing agent at an open house, then expect you to help them negotiate a lower price.

Lacking knowledge, it’s easy for buyers to make these and other mistakes. You do this stuff every day. Most buyers can count their transaction experiences on one hand.

Turning the Tables

There are countless ways to handle these and other challenges with buyers. Usually, superior results rely on

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anticipating issues early and managing the process better. Otherwise, it’s easy for both parties to get frustrated.

This issue is filled with various scenarios and solutions. Here are several more quick tips:

Refine your buyer presentation. It’s your first “formal” meeting, and there’s so much to cover, including your representation agreement. Make your presentation as concise and helpful as possible, with the ultimate goal of earning respect as a trusted advisor.

Hone your scripts. Since you won’t have time to cover every topic during your initial consultation, it’s essential to have a collection of scripts, ready to use as various situations arise. For more tips on scripts, watch for next month’s issue of Today’s Buyer’s Rep.

Compile excellent resources. You don’t need to reinvent the wheel, but do have a rock-solid collection of handy resources on a wide range of topics. For example, this month’s Consumer One-Sheet (on page 7) provides dos and don’ts for touring properties.

Set up solid systems. Everything flows smoother with a system, buying you precious time to think and strategize, instead of scrambling to put out various small fires. Sure, it takes time to build and refine systems for cultivating leads, scheduling showings, managing transactions, etc., but they pay huge dividends!

Let buyers make (safe) mistakes. Decisions have consequences. If a buyer doesn’t follow your negotiating advice, for example, let them lose their favorite house. There will be other homes. Hopefully, their loss becomes your gain, in terms of earning respect.

End the relationship. It’s rare to reach this point, but if necessary, don’t be reluctant to suggest that a buyer find a different agent to represent them. It’s possible this will improve their behavior. If not, ending the relationship is probably the best solution.

Lessons Learned

Sometimes, working with buyers is challenging. It’s also rewarding. Plus, it’s heartening to know that by the time you reach the closing table, you’re winning over their hearts and minds.

Consider these facts from NAR Research1: The vast majority of recent homebuyers (74 percent) say they would DEFINITELY use their real estate agent again or recommend him/her to others. Another 15 percent said “probably.”

Earning your ABR® designation places you at the top of the class among buyer’s reps. Keep up the great work!

1NAR 2017 Profile of Home Buyers and Sellers

TAKING BUYERS

Back to School

page 6 TBR September 2018 For Buyer’s Reps: Textbook Challenges

Problem: Buyers are under contract, but not acting in good faith.

Solution: Some buyers need prodding to hit their deadlines. To prevent closing delays, make sure you have processes in place to help buyers meet their contractual obligations.

The checklist function in Zipforms2 helps agents stay organized and assign tasks to buyers. Other good technology options include Trello.com and Amitree.com (a Gmail assistant for real estate agents).

Twice a week, call your buyers, their loan officer, and the settlement attorney to see how things are progressing— or assign this task to a professional assistant.

2NAR is an investor in Zipforms.

The Accredited Buyer’s Representative (ABR®) designation is awarded by the Real Estate Buyer’s Agent Council (REBAC), a subsidiary of the National Association of REALTORS® (NAR).

To learn more about REBAC and access various home buyer resources, please visit REBAC.net.

New Consumer One-Sheet

Problem: Buyers assume any house (or room) can be listed on Airbnb.

Solution: The growing popularity of short-term rental sites like Airbnb and HomeAway may prompt some buyers to purchase a home based on faulty assumptions. Once under contract, they discover the local municipality places restrictions on short-term rentals.

This situation illustrates the importance of clarifying all aspects of a buyer’s purchase preferences. After all, “we want three bedrooms” is quite different from “we want to rent out the third bedroom.”

Know how residential property can and can’t be used in your market—and your buyers’ intended use. Then discuss any potential conflicts.

Problem: Buyers think real estate wire fraud “won’t happen to me.”

Solution: Wire fraud is one of the most severe threats facing buyers. Scammers’ tactics have become increasingly sophisticated, fooling even seasoned real estate professionals.

Explain how it works and steps to protect themselves, potentially including avoiding all forms of electronic funds transfer at closing. At a minimum, buyers should call you and the escrow agent at known phone numbers to confirm all instructions. Buyers should also know that all instructions will only come over the phone and not in emails.

You may also want to include a signed fraud notice in your client paperwork. See www.nar.realtor/data-privacy-security/wire-fraud-notices for examples.

Visit the Member Center at REBAC.net and select from over 40 topics. (Look under Tools for Working for Buyers.)

Add your photo, logo, and contact details at the REBAC Print Shop, accessible via the Member Center at REBAC.net (look under Marketing Materials) or at printingstorefront.com/rebac (using the same log-in credentials).

Every Consumer One-Sheet is also repurposed, converted into an article on the Home Buyer’s Blog at REBAC’s consumer site, www.homebuying.realtor, along with many other topics. It’s an excellent source of easy-to-share content for your social media accounts.

3. Share

online.

1. Download

and print.

2. Order customized copies.

DID YOU KNOW?There are THREE WAYS to access and use REBAC’s Consumer One-Sheets for ABR® designees.

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FOR BUYER’S REPS: Textbook Challenges

TBR September 2018 page 7

The Accredited Buyer’s Representative (ABR®) designation is awarded by the Real Estate Buyer’s Agent Council (REBAC), a subsidiary of the National Association of REALTORS® (NAR).

To learn more about REBAC and access various home buyer resources, please visit REBAC.net.

Dos and Don’ts on Property Tours5

Property tours are fun! You get to imagine yourself living in new spaces and, perhaps, learn something new about your priorities and preferences.

It’s also relatively easy to make mistakes while touring properties—mistakes that could anger the seller, hurt your negotiating position, or worse. For the best results, follow these tips:

1. Don’t bring an entourage.

Relatives and friends may enjoy tagging along or providing personal advice, but they’re also a distraction, shifting the focus away from YOUR interests and concerns. Plus, the things they say and do could hurt your negotiating position.

If it’s essential to include other decision-makers, discuss this in advance with your buyer’s rep.

2. Do assume the owner is watching and listening.

Surveillance cameras are increasingly common and used to monitor buyers’ behavior and comments on property tours. It’s an easy and effective way for owners to safeguard their property and gauge a buyer’s interest, for negotiating purposes.

Comments and movements outside the home, in the driveway or the yard, may also be scrutinized, with or without cameras. Owners have been known to watch from neighbors’ windows or recruit neighbors to spy on their behalf.

3. Don’t take photos or video (or use live-streaming services).

In today’s world, people take photos wherever they go. When touring homes, however, remember that you’re on someone else’s property. Unless the owner has granted permission, you may be violating state laws.

Even if you’re allowed to take pictures, don’t share them on social media sites. It’s another way to hurt your negotiating position and invade the owner’s privacy. Wait until it’s YOUR house.

4. Do use your imagination.

Every homeowner has different tastes. If a house doesn’t reflect your style, what easy and potentially inexpensive changes can you make, including fixtures, window treatments, and paint?

Several paint companies offer augmented reality (AR) apps to view walls in different colors, via your phone. Similarly, some retailers provide AR apps for viewing virtual furniture in a room. Use these tools to help envision your own style in a home.

5. Don’t help yourself to the bathroom.

Yes, it’s fine to flush the toilets and test the water faucets. It’s also okay to open cabinets, drawers, and closet doors. But check with your buyer’s rep before “using” a toilet. The owner may have preferences regarding this. Better yet, schedule a pit stop before starting the tour.

Real Estate Buyer’s Agent Council, Inc. 430 North Michigan Avenue Chicago, IL 606111-800-648-6224REBAC@realtors.org

September 2018 Volume XXVII Number 9

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What buyers need to know (and how to tell them).Look inside!

Get an Early Start! 4 Special Pre-Conference Courses

At Home with Diversity (AHWD)

Green Day 1: The Resource-Efficient Home – Retrofits, Remodels, Renovations, and New Home Construction

Real Estate Investing: Build Wealth Representing Investors and Becoming One Yourself

NAR’s e-PRO® Certification 2-Day Course

Completely updated, the new e-PRO® certification course teaches REALTORS® how to maximize their online presence AND protect customer data from a data breach.

Thursday, November 1 Wednesday, October 31, and Thursday, November 1

Are you planning to attend the REALTORS® Conference & Expo in Boston? Arrive early and take advantage of one these special course offerings, held at the Renaissance Boston Waterfront Hotel.

For complete details and to register, visit REBAC.net/courses/conference-expo.