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

Overview 1. Getting started: learning your market finding prospects 2. Working for sellers 3. Working for buyers 4. Negotiating the purchase contract 5. Due diligence & closing 6. Ethics & professional practice 7. Continuing education

Getting Started: Who Are You & What Are Your Skills? 1. Please complete the Survey (handout #1) 2. 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).

Getting Started: Who Are You & What Are Your Skills?, continued 3. Prospective agents: If you were the broker, would you hire yourself? 4. Brokers & Observers: What did you like best about the Prospective Agents? This interview may be similar to one youll have in real life. The rest of todays class is designed to prepare you to be as successful as you can be!

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 information 2. Collect information in as much detail as possible a. demographics b. market size and activity c. 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 wardrobe 2. Listing catalog 3. Brief case 4. Tape measure 5. Screwdriver, pliers 6. PDA or appointment book 7. Maps 8. Data base 9. Listing forms, contracts 10. Purchase contracts 11. Mortgage calculator 12. List of mortgage companies, surveyors, etc. 13. Signs, lockboxes, etc. 14. Company policy manual 15. Buyers handbook 16. Sellers handbook 17. ___________________

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 sources a. Relatives b. Friends c. Business contacts

Getting Started: Finding Prospects, continued 3. Contact referral sources a. Send an announcement letter b. Include your business card c. 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 rosters b. Announcements in newspapers 8. Increase your visibility a. Develop & distribute a newsletter b. Hold open houses c. Advertising 9. Cold calls

Understanding Why People Buy & Sell Real Estate: Its Usually Personal! 1. Death 2. Divorce 3. Illness 4. Financial pressures 5. Loss of employment 6. Job transfer 7. Marriage 8. Birth 9. Promotion 10. Expression 11. Unexpected wealth 12. Prestige 13. Investment

Duties Owed to Your Clients 1. Usually based on law/regulation/custom 2. 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

Conflicts of Interest 1. 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 treatment 2. Disclosure of all known facts about the transaction and property 3. Disclosure of fact you are expected to know 4. No misrepresentation: know the facts and dont guess 5. Fully explain any documents that require signatures

Responsibilities to the Public 1. No discrimination 2. Provide competent service 3. Dont undertake a job youre not qualified to perform 4. Do not do any advertising thats false, misleading or a misrepresentation 5. Do not do anything contrary to the law

Responsibilities to Other 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 Sellers Finding Potential Sellers 1. Geographic farming 2. Divorce/marriage 3. Death/illness 4. For-sale-by-owners 5. Expired listings 6. Foreclosure notices 7. Neighbors of new listings 8. Out-of-town owners 9. Advertising for specific properties 10. Moving companies 11. Furniture for sale 12. Business transfers 13. Homebuilders 14. Social farming 15. Attorneys/bankers 16. Referrals

LISTING: Working for Sellers Seller Counseling Session-1 1. Prepare yourself a. Dress professionally b. Be prompt c. Prepare CMA (handout #4) 2. Prepare prospective seller a. Establish rapport b. Agree on common agenda c. Permission to ask questions

LISTING: Working for Sellers Seller Counseling Session-2 Using Sellers 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 sellers options 5. Review listing contract (sample & CD) 6. Discuss how you & selling agent are paid 7. Determine sellers motivation, timing 8. Discuss preparing the home for the buyers eyes (book)

LISTING: Working for Sellers Seller 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 youve provided and make an appointment to discuss any questions and finalize the contract

LISTING: Working for Sellers Marketing 1. Prepare MLS brochure for competitors 2. Put sign in yard, fill brochure box 3. Enlist sellers help in keeping brochure box full 4. Put key box on front door 5. Give office showing instructions 6. Create advertising: Internet, newspaper, flyers 7. Prepare Property Guide for inside home

LISTING: Working for Sellers Communication Communicate with your seller…even when theres 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 week 4. Review feedback with seller monthly, discuss possible price change 5. Hold open houses

SELLING: Working for Buyers Finding Potential Buyers 1. Your sellers! 2. If your sellers are not buying here, refer them to an agent to which theyre moving 3. Geographic farming 4. Social farming 5. Referrals from professionals, other agents, friends, relatives 6. Your niche market 7. Home buying seminars 8. Your web site 9. Divorce/marriage 10. Expanding families 11. Empty nesters 12. Just promoted/fired 13. Hold open houses 14. Opportunity time 15. _______________

SELLING: Working for Buyers Buyer Counseling Session-1 1. Prepare yourself a. Dress professionally b. Be prompt! c. Prepare information on possible properties 2. Prepare prospective buyer a. Establish rapport b. Agree on common agenda c. Ask permission to ask questions

SELLING: Working for Buyers Buyer Counseling Session-2 Using Buyers Handbook (sample) as a guide 1. Introduce yourself & your company 2. Explain your role as advisor and advocate 3. Review the steps involved in purchasing 4. Review due diligence between contract & closing 5. Review sample contracts a. Buyer agency agreement (sample & CD) b. Purchase agreement (sample & CD) 6. Discuss current market & available properties

SELLING: Working for Buyers Buyer Counseling Session-3 7. Specify buyers wants & needs 8. Determine buyers financial qualifications Ask: If we find a property today that meets your needs, will you be in a position to buy?

SELLING: Working for Buyers Buyer 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 youve provided, make an appointment to both finalize the contract and show property

SELLING: Working for Buyers Showing Properties Selecting and previewing properties 1. Match buyers wants and needs with currently available properties 2. Preview matches 3. Make appointments to show best matches 4. Plan tour route

SELLING: Working for Buyers Showing Tips 1. Play the priority game: keep focused on just 2-3 properties 2. Compare pros/cons of properties 3. Encourage note taking 4. Encourage client opinions 5. Ask probing questions 6. Serve as a sounding board 7. Listen carefully

SELLING: Working for Buyers Handling Objections 1. Always answer honestly 2. I dont know but Ill find out. 3. Restate objection as a question 4. Correct misinformation 5. Ask why questions carefully 6. Watch for buying signals 7. Have I answered all your concerns or do you need more information?

SELLING: Working for Buyers !!!LISTEN!!!

NEGOTIATING THE CONTRACT Purchase & Sale Agreement Essential Elements 1. Competent parties 2. Timely acceptance 3. Unique legal 4. Consideration 5. Mutual consent Terms & Provisions 1. Price 2. Possession 3. Personal property 4. Means of conveyance 5. Pro-rations of taxes & insurance 6. Closing costs 7. Contingencies 8. Property disclosures

NEGOTIATING THE CONTRACT Presenting the Offer 1. Provide seller with a complete picture of the buyer: 2. Present terms of offer 3. Explain contingencies/special conditions 4. Present buyers financial capability 5. Encourage acceptance 6. If seller is unwilling to accept as is, negotiate using counterproposals (sample)

DUE DILIGENCE & CLOSING 1. Coordinate with listing agent 2. Prepare checklist of all steps & dates 3. Maintain transaction file of all meetings, correspondence, documents, phone notes 4. Assist your client with timely information, emotional support 5. Communicate regularly 6. Make sure all dates are met 7. Schedule & participate in closing

CLIENTS FOR LIFE! 1. Perform with highest possible professionalism during transaction 2. Call on client shortly after closing 3. Keep in touch at least 4 times each year 4. Establish yourself as their professional REALTOR a. For their future real estate needs b. To refer friends/relatives/colleagues

Ethics & Professional Practice 1. It pays to do the right thing 2. Honest & ethical behavior bring rewards 3. The only answer to building a good, lasting reputation 4. Never let the pursuit of money determine your behavior 5. NARs Pathways to Professionalism (handout #5): show respect to everyone!

Continuing Education: Keeping Ahead of the Game 1. List the topics youd like to learn more about: _________________________ 2. Lets make a combined list. 3. Continuing education and training are critical to your success in real estate. 4. Sources 5. Designations 6. Have an education goal every year.

We hope youve enjoyed this class. We hope it will increase your success. Ive certainly enjoyed being with you and have learned from you!, ! Gail Lyons & International Real Property Foundation