One of the most common mistakes REALTORS\u00ae make is not scheduling time to discuss the fundamentals with their clients. We tend to forget that we do this stuff every day, but our clients do not!<\/p>\n\n\n\n
Then, when the client goes off track (in one of a multitude of ways), we blame them. Damn clients! They should have asked me!<\/em><\/p>\n\n\n\n News flash: It\u2019s not their fault. It\u2019s your fault for not educating them ahead of time. <\/p>\n\n\n\n When it comes to new buyer clients, I recommend scheduling a meeting with them as soon as possible in the process. If this isn\u2019t practical, figure out a different way. For example, it could be in your car in-between showings. <\/p>\n\n\n\n I know it\u2019s old-school to drive your clients around in your car, but old-school doesn\u2019t automatically mean it\u2019s wrong. On the contrary, I find that \u201ccar chatting\u201d time is invaluable for developing rapport and loyalty with new clients, even if I only do it the first one or two times.<\/p>\n\n\n\n If it\u2019s not a scheduled meeting (best) or in your car (second best), figure out another way; maybe it\u2019s just a simple phone call. Just don\u2019t forget to do it, or you\u2019ll be sorry! <\/p>\n\n\n\n You don\u2019t believe me? You must be new\u2026<\/p>\n\n\n\n Every <\/em>experienced agent can tell multiple stories about losing buyer clients (and tens of thousands in lost commissions) because we didn\u2019t take a few minutes to educate them on the fundamentals.<\/p>\n\n\n\n #1 Establish Wants and Needs<\/strong><\/p>\n\n\n\n This is the first topic you need to discuss, and it forms the basis of setting up an auto-notification on your MLS software.<\/p>\n\n\n\n Listen carefully, give feedback, and make suggestions to expand or refine their search criteria. It\u2019s your job as a professional to provide guidance. <\/p>\n\n\n\n I could easily write an entire RAM on this topic alone, but suffice to say, the worst thing you can do is set up an auto-notification for your clients and then fail to communicate with them regularly. <\/p>\n\n\n\n I\u2019ll write more about this topic sometime soon. Probably maybe.<\/p>\n\n\n\n #2 Align Your Motivation Levels<\/strong><\/p>\n\n\n\n Just say something like this, \u201cIf you\u2019re a ONE, I\u2019m a ONE too, and you won\u2019t be hearing much from me. But If you\u2019re a TEN, I\u2019m going to drop everything right now, and let\u2019s go find you a house!\u201d<\/p>\n\n\n\n This will relieve pressure and make them feel more in control of the process. If they truly are a ONE, the last thing they want is you chasing after them daily. On the other hand, you\u2019re clearly communicating that you\u2019re ready, willing, and able to respond quickly to their needs, whenever they are ready. <\/p>\n\n\n\n By the way, if your client says they\u2019re a ONE, this does not mean you should ignore them. They can go from a ONE to a TEN in a hot second. You need a system to communicate effectively without being annoying (another topic!). <\/p>\n\n\n\n #3 Getting Pre-Approved<\/strong><\/p>\n\n\n\n It\u2019s obvious (to you) why getting pre-approved is so important, but you need to explain it from their <\/em>perspective.<\/p>\n\n\n\n Being truly pre-approved is quite different from a verbal, \u201cyeah you should be good.\u201d Explain why it is so important to follow through and submit all the necessary paperwork to their mortgage professional ahead of time. It can take the bank several days to process an application, so the more work they do up-front the less chance there will be of a delay and possibly missing out on the perfect property in a competitive market situation. Paint a picture! Speak from experience! Convey the urgency!<\/p>\n\n\n\n Also, if interest rates are rising, explain to them why it\u2019s essential to have a rate hold in place, and to be aware of when that rate hold expires. They need to maintain ongoing communication with their bank or broker.<\/p>\n\n\n\n I\u2019m not the REALTOR\u00ae who refuses to work with anyone who isn\u2019t truly pre-approved. Sometimes I make a judgement call. But I do make absolutely sure that my buyers understand the importance of it, and I follow up with them regularly to ensure they\u2019re getting it done.<\/p>\n\n\n\n #4 Review All Required Paperwork<\/strong><\/p>\n\n\n\n The Buyer Meeting is the ideal time to discuss Agency, the Buyer\u2019s Brokerage Agreement, and the Purchase Contract.<\/p>\n\n\n\n Everyone has a different opinion about the Buyer\u2019s Brokerage Agreement. Mine is, it\u2019s incredibly confusing and stupid, and I wish it didn\u2019t exist. <\/p>\n\n\n\n It\u2019s the part about \u2018forced agency\u2019 that I disagree with, by the way. If I have a buyer client, and I\u2019m doing a lousy job, that client should not be forced to continue the relationship. That said, there are other legitimate reasons to have this form signed, including transparency about how I get paid, etc. I just wish they took out the \u2018forced agency\u2019 part.<\/p>\n\n\n\n Since I don\u2019t make the rules, I always give my clients a copy and ask them to review it and sign it whenever they feel confident to do so. Yes, I tell them I think it\u2019s stupid (I\u2019m always dead honest), and I explain why. <\/p>\n\n\n\n In my jurisdiction (Alberta), we have the Consumer Relationship Guide, which explains the agency relationship. I do review this form and ask my buyer clients to sign it at the initial meeting. After all, it\u2019s not a binding contract in any way. It\u2019s just a simple acknowledgment of my role, but the act of them signing does have a psychological effect, I think, that further cements our relationship.<\/p>\n\n\n\n In addition to the above, I think it\u2019s wise to review the appropriate Purchase Contract ahead of time and all other paperwork required in your jurisdiction.<\/p>\n\n\n\n #5 Preplan Negotiations<\/strong><\/p>\n\n\n\n Reviewing the purchase contract is a great way to initiate a discussion about potential scenarios when writing an offer. For example, what is a reasonable deposit amount? What conditions will they include? What are all the various factors which may affect the price? Etc.<\/p>\n\n\n\n I guess that\u2019s another topic! Hey, I know I\u2019m not going into much detail here. If you\u2019re reading this and you want to have a chat, feel free to call me any old time 403-973-9730. Yes I answer my own phone, unless I\u2019m in an appointment.<\/p>\n\n\n\n There are numerous other topics to discuss during the Buyer Meeting, including FSBOs and New Construction (make sure your buyers always contact you first), what to do about potential hidden cameras and microphones, how to keep a tally of the best listings (and forget about the rest), how you will help them work through conditions, and much more.<\/p>\n\n\n\n
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