conduct business in an ethical manner
Customer Requirements & Setting Expectations
At the beginning of every new customer relationship, a good
realtor sits with the customer to conduct an interview. During
this meeting, successful realtors do their best to have customers
describe what goes into the "box" of requirements for their real
estate purchase or sale.
Most times, it is an obvious list of items such as location,
schools, price, number of bedrooms, and type of construction.
Occasionally, the requirements are a little unusual, for example
an extra garage to store the boat, an in-law apartment, southern
exposure for light sensitivity, or an investment in a foreclosure
or distressed property.
In the course of discussing these specifications with customers,
two important things happen. First, the realtor gets a basic
specification to help him or her design a search. Second, the
realtor gets the customers to consider things they may not have
thought about, like commute time relative to a location or quirks
specific to a particular municipality or type of property. All
of this is important, because success is best achieved by
matching the customer to a property they will like.
* Next 37 17 investors only!
When working with sellers, the same principles apply. It is
important to understand what is on the seller's list of
requirements. Is it sale price, time to sale, or how to create
curb appeal? Realtors also need to encourage sellers to consider
other aspects of the sale, for instance, terms (cash vs.
mortgage), closing time, contingencies on the offer (inspection,
Title V, etc.). Many of these requirements have to be waived or
adjusted when looking at foreclosures.
Throughout this initial customer conversation, the best realtors
develop a closer relationship with the customer and set
expectations. Achieving this will be beneficial downstream during
negotiations with potential sellers or buyers.
Having set expectations and an understanding of goals, decisions
can be planned for, and not reacted to, as the realtor acts on
the customer's behalf in negotiations. All of this preparation
sets a strong foundation and is particularly important when a
significant other or parent is involved, and consensus needs to
be achieved before moving forward. Having partners disagree part
of the way through a deal is a sure plan for failure.
Tools & Resources
One thing that has changed with the ubiquitous nature of the
Internet is the array of tools and resources available to buyers
and sellers. Agents are now able to provide their customers with
a set of tools to locate, research, and study the properties,
market and issues relating to their real estate transaction. For
example, there are handy, usable tools for the customer and agent
to investigate schools, demographics, foreclosure statistics, and
comparable property values. Today's customers can and should be
empowered with all the data that is available.
Strong realtors also outfit their toolboxes with a small group of
professionals that may include mortgage brokers, bankers,
lawyers, insurance agents, civil engineers, and tradesmen. These
folks bring focused expertise to a realtor's customers if and
when they are called for. In the case of foreclosures and
distressed properties, good sources of information are real
estate attorneys, bank attorneys, and town office employees. By
providing buyers and sellers with a whole support team to make
sure they are well resourced and supported throughout their
purchase or sale, realtors become a valuable source of knowledge
and expertise throughout the process.
Rather than try to be an expert on all areas, good realtors make
sure their customers have the tools and resources to execute
informed real estate transactions. Access to the information to
make meaningful decisions and hold fruitful negotiations make the
landscape friendlier and less daunting or stressful.
It's About People, Not Property
Lastly, there is a "secret sauce" which the excellent agent
brings to the real estate meal! The last ingredient is a savvy
negotiator who has a solid background in business and domestic
negotiations. While we all understand business negotiations, many
of us have little or no regard for domestic negotiations.
It's important to remember that when discussing the purchase of
residential properties, realtors are dealing with a home where
someone will live or vacation. Often all we think about are the
hard facts - price, closing date, chandeliers, washers and
dryers, repairs. Many times we forget that there are people
involved who have unique needs, styles and preferences. In the
case of foreclosures, buyers have to be able to act quickly and
sometimes must be prepared to make decisions on the spot.
Frequently, the hardest negotiations a realtor faces are not with
the other agent, but rather with his own customer.
When sitting with a customer to learn about the requirements of
the transaction, it helps to set expectations of how to negotiate
with you as a realtor. If you cannot establish a comfortable
rapport with them based on trust and ethical behavior, they will
not work expeditiously with you through the deal.
To make this point, you can try role-playing negotiations and
associated scenarios with them, so they will be comfortable with
you as you represent them in discussion with other involved
parties.
Experience & Ethics
Experience, tenacity and ethics are the traits that round out a
great real estate agent. The ability to execute most real estate
transactions requires a certain level of professional maturity.
Two to four parties are typically involved in a residential
transaction, and in some cases - due to family issues or
financing deals - more people are required to coordinate common
goals and schedules. Experience in expediting and following
through on action items and being flexible and tenacious are
critical to the success of a great agent. Missing deadlines can
leave buyers homeless or sellers without cash for their new
purchase!
Listening to your customers' requirements, providing the tools to
enable the transaction, and expediting the critical and mundane
events will provide your real estate customers with an experience
that exceeds their expectations.
Using business experience, tenacity, creativity, and sensitivity
allows your customers to buy or sell property in an informed,
empowered environment. Remember to go the extra mile in helping
your clients feel good about the changes happening in their
lives. If delivering a few shipping boxes will help them get off
the starting line and face the task of moving for the first time
in decades, then do it. If they need to speak with you off hours,
answer the phone. In the end, you'll differentiate yourself by
valuing your customers and exceeding their expectations by
providing the tools and the service they are entitled to.
John Ralen is a residential real estate agent with RE/MAX Home
Team (www.johnralen.com). He can be reached at
(508) 358-9600 or
j.ralen@comcast.net.
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