Real Estate Listing & Sales Techniques

1. Real EstateListing & Sales Techniques Prepared for the Georgia Real Estate Association by Gail Lyons, ABR, CCIM, C-CREC, CIPS, CRB, CRS, DREI, QSC, SRES

2. Overview • Getting started: learning your market finding prospects • Working for sellers • Working for buyers • Negotiating the purchase contract • Due diligence & closing • Ethics & professional practice • Continuing education

3. Getting Started:Who Are You &What Are Your Skills? 1. Please complete the Survey (handout #1) • Form into groups of threes (3s): decide who will be the “broker”, the “prospective agent” and the “observer”. Using the questions on the Survey, the broker will interview the prospective agent (5 minutes) while the observer listens. Switch roles so that everyone has a different role and repeat (5 minutes).

4. Getting Started:Who Are You &What Are Your Skills?, continued • Prospective agents: If you were the broker, would you hire yourself? • Brokers & Observers: What did you like best about the Prospective Agents? This interview may be similar to one you’ll have in “real” life. The rest of today’s class is designed to prepare you to be as successful as you can be!

5. Getting Started:Learning Your Market To be successful, you must know your market as well or better than anyone else. • Develop a data base to organize information • Collect information in as much detail as possible • demographics • market size and activity • price range

6. Getting Started: Learning Your Market • Where are shopping, schools, recreational facilities, etc. located? • What laws govern property use? • What laws govern real estate transactions? • What else do you need to know about your market?

7. Professional wardrobe Listing catalog Brief case Tape measure Screwdriver, pliers PDA or appointment book Maps Data base Listing forms, contracts Purchase contracts Mortgage calculator List of mortgage companies, surveyors, etc. Signs, lockboxes, etc. Company policy manual Buyer’s handbook Seller’s handbook ___________________ Getting Started:Your Tools

8. Getting Started:Finding Prospects (handout #3) • Develop an effective data base to retain names, addresses, phone numbers, contact history, etc. • List potential referral sources • Relatives • Friends • Business contacts

9. Getting Started:Finding Prospects, continued • Contact referral sources a. Send an announcement letter b. Include your business card c. Stay in touch: 4 times/year minimum • Join organizations: meet people = “social farming” • Establish a “geographic farm”: become the expert (handout #2)

10. Getting Started:Finding Prospects, continued • “Opportunity time” • Target likely prospects a. Mailing lists/membership rosters b. Announcements in newspapers • Increase your visibility a. Develop & distribute a newsletter b. Hold open houses c. Advertising 9. “Cold calls”

11. Death Divorce Illness Financial pressures Loss of employment Job transfer Marriage Birth Promotion Expression Unexpected wealth Prestige Investment Understanding Why People Buy & Sell Real Estate:It’s Usually Personal!

12. Duties Owed to Your Clients • Usually based on law/regulation/custom • Six primary “fiduciary” duties a. Loyalty b. Keep personal information confidential c. Obedience d. Reasonable skill & diligence e. Disclose all known facts f. Accounting for money & documents

13. Conflicts of Interest • Occur when the duties you owe to one person conflict with the duties you owe to another person, including yourself! • Conflict must be disclosed immediately and a solution agreed upon; put the solution in writing signed by both parties • If no solution can be agreed upon, terminate one or both relationships

14. Responsibilities to “Other” Party • Fair and honest treatment • Disclosure of all known facts about the transaction and property • Disclosure of fact you are expected to know • No misrepresentation: know the facts and don’t guess • Fully explain any documents that require signatures

15. Responsibilities tothe Public • No discrimination • Provide competent service • Don’t undertake a job you’re not qualified to perform • Do not do any advertising that’s false, misleading or a misrepresentation • Do not do anything contrary to the law

16. Responsibilities toOther Agents • Do not knowingly make false or misleading statements about your competitors • Do not take any action inconsistent with the agency of another agent • Disclose your client relationship to other agents at first contact

17. Geographic farming Divorce/marriage Death/illness For-sale-by-owners Expired listings Foreclosure notices Neighbors of new listings Out-of-town owners Advertising for specific properties Moving companies “Furniture for sale” Business transfers Homebuilders Social farming Attorneys/bankers Referrals LISTING: Working for SellersFinding Potential Sellers

18. LISTING: Working for SellersSeller Counseling Session-1 • Prepare yourself a. Dress professionally b. Be prompt c. Prepare CMA (handout #4) • Prepare prospective seller a. Establish rapport b. Agree on common agenda c. Permission to ask questions

19. LISTING: Working for SellersSeller Counseling Session-2 Using Seller’s Handbook (sample) as a guide 1. Discuss your role as advisor/advocate, your company & yourself 2. Discuss your role as marketer 3. Discuss CMA (actives, solds, expireds) /importance of pricing 4. Review seller’s options 5. Review listing contract (sample & CD) 6. Discuss how you & selling agent are paid 7. Determine seller’s motivation, timing 8. Discuss preparing the home for the buyer’s eyes (book)

20. 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 either A. Present the listing contract again and ask for their signatures OR B. Ask them to review all the information you’ve provided and make an appointment to discuss any questions and finalize the contract

21. LISTING: Working for SellersMarketing • Prepare MLS brochure for competitors • Put sign in yard, fill brochure box • Enlist seller’s help in keeping brochure box full • Put key box on front door • Give office showing instructions • Create advertising: Internet, newspaper, flyers • Prepare Property Guide for inside home

22. LISTING: Working for SellersCommunication Communicate with your seller…even when there’s “nothing” to say! • Tell the seller what you are doing to market the property • Collect feedback from showings, tell the seller • Contact seller at least once a week • Review feedback with seller monthly, discuss possible price change • Hold “open” houses

23. Your sellers! If your sellers are not buying here, refer them to an agent to which they’re moving Geographic farming Social farming Referrals from professionals, other agents, friends, relatives 6. Your niche market Home buying seminars Your web site Divorce/marriage Expanding families “Empty nesters” Just promoted/fired Hold open houses “Opportunity time” _______________ SELLING: Working for BuyersFinding Potential Buyers

24. SELLING: Working for BuyersBuyer Counseling Session-1 1. Prepare yourself a. Dress professionally b. Be prompt! c. Prepare information on possible properties • Prepare prospective buyer a. Establish rapport b. Agree on common agenda c. Ask permission to ask questions

25. SELLING: Working for BuyersBuyer Counseling Session-2 Using Buyer’s Handbook (sample) as a guide • Introduce yourself & your company • Explain your role as advisor and advocate • Review the steps involved in purchasing • Review due diligence between contract & closing • Review sample contracts a. Buyer agency agreement (sample & CD) b. Purchase agreement (sample & CD) 6. Discuss current market & available properties

26. SELLING: Working for BuyersBuyer Counseling Session-3 • Specify buyer’s wants & needs • Determine buyer’s financial qualifications Ask: “If we find a property today that meets your needs, will you be in a position to buy?”

27. SELLING: Working for BuyersBuyer Counseling Session-4 Then either A. Present the buyer agency agreement again and ask for their signatures OR B. Ask them to review all the information you’ve provided, make an appointment to both finalize the contract and show property

28. SELLING: Working for BuyersShowing Properties Selecting and previewing properties • Match buyers’ wants and needs with currently available properties • Preview matches • Make appointments to show “best” matches • Plan “tour” route

29. SELLING: Working for BuyersShowing Tips • Play the “priority” game: keep focused on just 2-3 properties • Compare pros/cons of properties • Encourage note taking • Encourage client opinions • Ask probing questions • Serve as a “sounding board” • Listen carefully

30. SELLING: Working for BuyersHandling Objections • Always answer honestly • “I don’t know but I’ll find out.” • Restate objection as a question • Correct misinformation • Ask “why” questions carefully • Watch for “buying” signals • “Have I answered all your concerns or do you need more information?”

31. SELLING: Working for Buyers !!!LISTEN!!!

32. Essential Elements Competent parties Timely acceptance Unique legal Consideration Mutual consent Terms & Provisions Price Possession Personal property Means of conveyance Pro-rations of taxes & insurance Closing costs Contingencies Property disclosures NEGOTIATING THE CONTRACTPurchase & Sale Agreement

33. NEGOTIATING THE CONTRACTPresenting the Offer • Provide seller with a complete “picture” of the buyer: • Present terms of offer • Explain contingencies/special conditions • Present buyer’s financial capability • Encourage acceptance • If seller is unwilling to accept as is, negotiate using counterproposals (sample)

34. DUE DILIGENCE & CLOSING • Coordinate with listing agent • Prepare checklist of all steps & dates • Maintain transaction file of all meetings, correspondence, documents, phone notes • Assist your client with timely information, emotional support • Communicate regularly • Make sure all dates are met • Schedule & participate in closing

35. “CLIENTS FOR LIFE!” • Perform with highest possible professionalism during transaction • Call on client shortly after closing • Keep in touch at least 4 times each year • Establish yourself as their professional REALTOR a. For their future real estate needs b. To refer friends/relatives/colleagues

36. Ethics & Professional Practice • It pays to do the right thing • Honest & ethical behavior bring rewards • The only answer to building a good, lasting reputation • Never let the pursuit of money determine your behavior • NAR’s Pathways to Professionalism (handout #5): show respect to everyone!

37. Continuing Education:Keeping Ahead of the “Game” • List the topics you’d like to learn more about: _________________________ • Let’s make a combined list. • Continuing education and training are critical to your success in real estate. • Sources • Designations • Have an education goal every year.

38. 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