Real EstateListing & Sales

TechniquesPrepared for the

Georgia Real Estate Association

byGail Lyons,

ABR, CCIM, C-CREC, CIPS, CRB, CRS, DREI, QSC, SRES

Overview1. Getting Started2. Working for sellers3. Working for buyers4. Negotiating the purchase contract5. Due diligence & closing6. Ethics & professional practice7. Continuing education

Getting Started:Learning Your Market

To be successful, you must know your market as well or better than anyone else.

1. Develop a data base to organize information2. Collect information in as much detail as possible

a. demographicsb. market size and activityc. price range

Getting Started: Learning Your Market

3. Where are shopping, schools, recreational facilities, etc. located?

4. What laws govern property use?5. What laws govern real estate

transactions?6. What else do you need to know

about your market?

Getting Started:Your Tools

1. Professional wardrobe2. Listing catalog3. Brief case4. Tape measure5. Screwdriver, pliers6. PDA or appointment book7. Maps8. Data base9. Listing forms, contracts

10. Purchase contracts11. Mortgage calculator12. List of mortgage

companies, surveyors, etc.13. Signs, lockboxes, etc.14. Company policy manual15. Buyer’s handbook16. Seller’s handbook17. ___________________

Getting Started:Finding Prospects (handout #3)

1. Develop an effective data base to retain names, addresses, phone numbers, contact history, etc.

2. List potential referral sourcesa. Relativesb. Friendsc. Business contacts

Getting Started:Finding Prospects, continued

3. Contact referral sourcesa. Send an announcement letterb. Include your business cardc. Stay in touch: 4 times/year minimum

4. Join organizations: meet people = “social farming”

5. Establish a “geographic farm”: become the expert (handout #2)

Getting Started:Finding Prospects, continued

6. “Opportunity time”7. Target likely prospects

a. Mailing lists/membership rostersb. Announcements in newspapers

8. Increase your visibilitya. Develop & distribute a newsletterb. Hold open housesc. Advertising

9. “Cold calls”

Understanding Why People Buy & Sell Real Estate:

It’s Usually Personal!1. Death2. Divorce3. Illness4. Financial

pressures5. Loss of

employment6. Job transfer

7. Marriage8. Birth9. Promotion10.Expression11.Unexpected

wealth12.Prestige13. Investment

Duties Owed to Your Clients

1. Usually based on law/regulation/custom2. Six primary “fiduciary” duties

a. Loyaltyb. Keep personal information confidentialc. Obedienced. Reasonable skill & diligencee. Disclose all known factsf. Accounting for money & documents

Conflicts of Interest1. Occur when the duties you owe to one

person conflict with the duties you owe to another person, including yourself!

2. Conflict must be disclosed immediately and a solution agreed upon; put the solution in writing signed by both parties

3. If no solution can be agreed upon, terminate one or both relationships

Responsibilities to “Other” Party

1. Fair and honest treatment2. Disclosure of all known facts about the

transaction and property3. Disclosure of fact you are expected to

know4. No misrepresentation: know the facts

and don’t guess5. Fully explain any documents that

require signatures

Responsibilities tothe Public

1. No discrimination2. Provide competent service3. Don’t undertake a job you’re not

qualified to perform4. Do not do any advertising that’s false,

misleading or a misrepresentation5. Do not do anything contrary to the law

Responsibilities toOther Agents

1. Do not knowingly make false or misleading statements about your competitors

2. Do not take any action inconsistent with the agency of another agent

3. Disclose your client relationship to other agents at first contact

LISTING: Working for SellersFinding Potential Sellers

1. Geographic farming2. Divorce/marriage3. Death/illness4. For-sale-by-owners5. Expired listings6. Foreclosure notices7. Neighbors of new

listings8. Out-of-town owners

9. Advertising for specific properties

10. Moving companies11. “Furniture for sale”12. Business transfers13. Homebuilders14. Social farming15. Attorneys/bankers16. Referrals

LISTING: Working for SellersSeller Counseling Session-1

1. Prepare yourselfa. Dress professionallyb. Be promptc. Prepare CMA (handout #4)

2. Prepare prospective sellera. Establish rapportb. Agree on common agendac. Permission to ask questions

LISTING: Working for SellersSeller Counseling Session-2

Using Seller’s Handbook (sample) as a guide1. Discuss your role as advisor/advocate, your company &

yourself2. Discuss your role as marketer3. Discuss CMA (actives, solds, expireds) /importance of

pricing4. Review seller’s options5. Review listing contract (sample & CD)6. Discuss how you & selling agent are paid7. Determine seller’s motivation, timing8. Discuss preparing the home for the buyer’s eyes (book)

LISTING: Working for SellersSeller Counseling Session-3

Ask: “If we find a buyer today willing to pay your price, are you ready to sell?”

Then eitherA. Present the listing contract again and ask for their signatures ORB. Ask them to review all the information you’ve provided and make an appointment to discuss any questions and finalize the contract

LISTING: Working for SellersMarketing

1. Prepare MLS brochure for competitors2. Put sign in yard, fill brochure box3. Enlist seller’s help in keeping brochure

box full4. Put key box on front door5. Give office showing instructions6. Create advertising: Internet, newspaper,

flyers7. Prepare Property Guide for inside home

LISTING: Working for SellersCommunication

Communicate with your seller…even when there’s “nothing” to say!

1. Tell the seller what you are doing to market the property

2. Collect feedback from showings, tell the seller

3. Contact seller at least once a week4. Review feedback with seller monthly,

discuss possible price change5. Hold “open” houses

SELLING: Working for BuyersFinding Potential Buyers

1. Your sellers! 2. If your sellers are

not buying here, refer them to an agent to which they’re moving

3. Geographic farming4. Social farming5. Referrals from

professionals, other agents, friends, relatives

6. Your niche market 7. Home buying

seminars8. Your web site9. Divorce/marriage10.Expanding families11.“Empty nesters” 12.Just promoted/fired13.Hold open houses14.“Opportunity time”15._______________

SELLING: Working for BuyersBuyer Counseling Session-1

1. Prepare yourselfa. Dress professionallyb. Be prompt!c. Prepare information on possible properties

2. Prepare prospective buyera. Establish rapportb. Agree on common agendac. Ask permission to ask questions

SELLING: Working for BuyersBuyer Counseling Session-2

Using Buyer’s Handbook (sample) as a guide1. Introduce yourself & your company2. Explain your role as advisor and advocate3. Review the steps involved in purchasing4. Review due diligence between contract & closing5. Review sample contracts

a. Buyer agency agreement (sample & CD)b. Purchase agreement (sample & CD)

6. Discuss current market & available properties

SELLING: Working for BuyersBuyer Counseling Session-3

7. Specify buyer’s wants & needs8. Determine buyer’s financial

qualifications

Ask: “If we find a property today that meets your needs, will you be in a position to buy?”

SELLING: Working for BuyersBuyer Counseling Session-4

Then either A. Present the buyer agency agreement again and ask for their signatures ORB. Ask them to review all the information you’ve provided, make an appointment to both finalize the contract and show property

SELLING: Working for BuyersShowing Properties

Selecting and previewing properties1. Match buyers’ wants and needs

with currently available properties2. Preview matches3. Make appointments to show “best”

matches4. Plan “tour” route

SELLING: Working for BuyersShowing Tips

1. Play the “priority” game: keep focused on just 2-3 properties

2. Compare pros/cons of properties3. Encourage note taking4. Encourage client opinions5. Ask probing questions6. Serve as a “sounding board”7. Listen carefully

SELLING: Working for BuyersHandling Objections

1. Always answer honestly2. “I don’t know but I’ll find out.”3. Restate objection as a question4. Correct misinformation5. Ask “why” questions carefully6. Watch for “buying” signals7. “Have I answered all your concerns or

do you need more information?”

SELLING: Working for Buyers

!!!LISTEN!!!

NEGOTIATING THE CONTRACTPurchase & Sale Agreement

Essential Elements1. Competent

parties2. Timely

acceptance3. Unique legal4. Consideration5. Mutual consent

Terms & Provisions1. Price2. Possession3. Personal property4. Means of conveyance5. Pro-rations of taxes &

insurance6. Closing costs7. Contingencies8. Property disclosures

NEGOTIATING THE CONTRACTPresenting the Offer

1. Provide seller with a complete “picture” of the buyer:

2. Present terms of offer3. Explain contingencies/special conditions4. Present buyer’s financial capability5. Encourage acceptance6. If seller is unwilling to accept as is,

negotiate using counterproposals (sample)

DUE DILIGENCE & CLOSING

1. Coordinate with listing agent2. Prepare checklist of all steps & dates3. Maintain transaction file of all meetings,

correspondence, documents, phone notes4. Assist your client with timely information,

emotional support5. Communicate regularly6. Make sure all dates are met7. Schedule & participate in closing

“CLIENTS FOR LIFE!”

1. Perform with highest possible professionalism during transaction

2. Call on client shortly after closing3. Keep in touch at least 4 times each year4. Establish yourself as their professional

REALTORa. For their future real estate needsb. To refer friends/relatives/colleagues

Ethics & Professional Practice

1. It pays to do the right thing2. Honest & ethical behavior bring rewards3. The only answer to building a good,

lasting reputation4. Never let the pursuit of money determine

your behavior5. NAR’s Pathways to Professionalism

(handout #5): show respect to everyone!

Continuing Education:Keeping Ahead of the “Game”

1. List the topics you’d like to learn more about: _________________________

2. Let’s make a combined list.3. Continuing education and training are

critical to your success in real estate.4. Sources5. Designations6. Have an education goal every year.

We hope you’ve enjoyed this class.We hope it will increase your

success.I’ve certainly enjoyed being with you and have learned from you!

, !გმადლობ გმადლობთ

Gail Lyons &International Real Property

Foundation