Define Agency Relationship
Ask For Referrals
Establish Home Criteria
Talking points should cover available inventory, buyer negotiating power, interest rates and local list price to sales price ratios. If proper expectations are set up front, buyers have an increased likelihood of getting the home they want without having to undergo a learning curve after missing out on several homes.
Since many home buyers are eager to start viewing homes before determining their borrowing power, agents must educate their clients about the impact that being pre-qualified for a home loan has on purchase negotiations. Buyers that know what down payment amount and monthly payment they can actually afford will also be able to make much more informed decisions about the homes they consider.
Understanding agency relationships is not only beneficial to clients, but also very helpful in preserving commissions down the road. Real estate agents should prepare buyers for specific situations that might jeopardize the relationship and commissions in the future. Buyers should be made aware of how the agency relationship is impacted in these situations, and what consequences it may have on representation and commissions.
The idea of asking clients for business referrals can be very uncomfortable without first learning how to ask. This can be especially true in an initial buyer consultation prior to even working with the clients. The highest rate of referrals always comes from ongoing relationships with clients that are actively in the process of moving.
The determination of the location, price range and features that a buyer is looking for in a home often serves as the central focus of a buyer consultation. However, it is equally important to establish parameters for the process in order to avoid an endless search that renders ineffective and confusing results.