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Knowledge, as they say, is power and empowering buyers and sellers to make clear, rational business decisions in buying and selling real estate seems a good business practice.
Do you take the time to explain/educate your clients on the buying and selling process?
For example, if you are the listing agent -- the seller agrees that acceptable financing will include Conventional, VA, FHA, and cash, do you ensure that the seller understands their obligation and expectations under each of these financing options, e.g., reasonable closing costs, FHA/VA inspection standards, etc.? Do you explain the seller's responsibilities to permit access to home inspectors and appraisers?
Buyers agents -- same questions!! Do you explain the financing options, pros and cons? Do you explain the need and cost of a home inspection, the limitations of a home inspection, and what to do with the results? Do you explain costs associated with closing, e.g., title company, etc.? Do you explain why an appraisal is needed and the use/purpose of the appraisal report?
Of course I explain these things. Nothing worse than a buyer or seller entering into a negotiation blindly of different scenarios that could happen and what all it takes to get to a closing table. When I walk a house, I tell a seller up front that something would need to be corrected if they received an FHA/VA offer, like rotted wood or pealing paint if it's built before 1978. We go over different pricing strategies and how to respond to offers.
As for closing costs with a buyer, that's the mortgage person's job as I can only give ballpark figures. The mortgage person is the one giving them closer estimated numbers so they know what to bring or ask for from the seller.
I also educate about the current market and how many of the communities in my area are fast-paced and they will need to make very fast decisions and they can't second-guess their decisions. They need to come in strong, and I give examples of numbers and time frames for the various parts of the contract.
Most importantly, I give all this education to both buyers and sellers in case one of my own buyers likes one of my listings, and I need to be in the "Intermediary" position, in some states it's called Dual Agency. With so much education about the process, I have already worked "for" my clients in helping to ensure they make the best decisions when in the situation.
Yes. When you properly prepare your buyers and sellers for understanding the process AND understanding the basics of the clauses in the real estate contract, you have smoother transactions. In my opinion, people get bent out of shape when they are missing a piece of the puzzle and don't understand how things work in conjunction with each other. That's when paranoia about scams seems to set in.
Yes, I have an actual written presentation that goes through the process a-z. They keep for reference after the meeting and it's as detailed or simple as the client wants it to be.
Yes, I have an actual written presentation that goes through the process a-z. They keep for reference after the meeting and it's as detailed or simple as the client wants it to be.
Yep, I do also. 9 out of 10 times my process is right on target for flow and timeline. If they ask, Why?, I just refer to the list and say, "Remember we talked about this, it is right here?"
Actually most clients get it the first time. They feel more confident when they know what is going on.
No as each states rules are different. We are buying a home in FL, and we are agents in Texas. Contracts are different, inspections are different, insurance is different, etc.
Any information should be tailored to your area, and approved by your company attorney (don't have one? Get one.) before distribution. The state Assn of Realtors should have mandatory handouts for Agency, Representation, etc.
Be sure that when you are using inspectors, etc that you offer a selection and do not "steer" as that can get you in a lot of trouble.
Is the information you distribute to your clients provided as a standard product/package from NAR?
You really can't standardize consulting with a buyer or seller, as all clients are different and have different needs.
Some need a lot of hand holding....some I have worked with are extremely familiar with the process and seem to get annoyed with too much information they already know. Some just flat won't listen to you and that's a WHOLE other topic for discussion.
Get to know your clients and their needs. Start with the basics, ASK QUESTIONS. Study up on different personality types and how to deal with them, IMO that is crucial. Its fundamental to building that relationship with your clients to be sure you are fulfilling their needs.
You really can't standardize consulting with a buyer or seller, as all clients are different and have different needs.
The question pertained to the content and standardization of the available information, not its applicability to a specific buyer or seller.
My takeaway from this thread is that the prepared information is available and that some realtors re-package it into a more user friendly format which is a great idea. Those that responded to this thread indicate that they take great pains to explain the different financing options to their buyers or sellers and the buyer/seller responsibilities under each option. That is a good thing.
The basis for my initial post was a spike in the number of sellers I have encountered over the past several months that seem to not understand that, if they are selling a home, it is very likely a home inspector, an appraiser, or some other outside expert is going to be contacting them and need access to the home. In my conversations with the homeowners, it is as if no one told them anything at all.
Delays in my getting access to the property have had an impact on more than one closing date and, in one case, may have resulted in cancelation of a sales contract (the house was Pending at the time, is now listed again as available per the MLS, and the appraisal order was canceled).
As verified in this thread, it is a good business practice to inform both the buyer and seller of these potential home visits by outside experts. Guess I've just run into a period when some folks didn't get the word.
Anyway, thanks for your responses.
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