unit 8 and 9

Costs to be paid by seller: This section shows the expenses to be paid by the seller, including documentary stamp taxes on the deed; and repairs up to 1.5% for repairs on warranted items, wood-destroying organism treatment, and costs associated with permits. Either the buyer or the seller may elect to pay for title insurance and a municipal lien search. (b) Costs to be paid by buyer: Buyer agrees to pay taxes on notes and mortgages and recording fees on deed and mortgage documents. Buyer also agrees to pay for lender's title insurance, inspections, survey, and flood insurance.

(c) Title evidence and insurance: This section lets the parties determine what type of title evidence is appropriate and who will pay for title insurance. (d) Survey: Buyer may have property surveyed at buyer's expense. (e) Home warranty: The parties may agree on a homeowners warranty and who will pay for it. (f) Special assessments

Homebuying Process Time Line

1 Initial meeting. 2 Become familiar with the sales contract. 3 Review and sign the buyer brokerage agreement. 4 Financial qualification. 5 Begin the property search. 6 When you find the right house. 7 Sales associate presents your offer to the seller. The seller may. 8 When you have a signed contract, refer to Figure 13.1, "The Road to Closing."

Gathering Contract Data You must collect the information required to complete the Florida Realtors®/Florida Bar contract. The information gathered must be verified for accuracy and currency. The licensee should pay particular attention to and be sure to verify the following two categories of data:

1 The owner/seller's name and address and the property's legal description. MLS data, property appraiser information, and even listing agreements have been in error on occasion. You should get the information from a title insurance policy, a deed, or a survey. 2 Financing information. Financing data tend to change frequently and require last-minute updating. Check with local lenders to make certain that times allowed for obtaining financial commitments are realistic and that the rates and terms contemplated actually are available.

You should understand the Exclusive Buyer Brokerage Agreement and be able to explain its provisions clearly and concisely. The numbered paragraphs following the form correspond with the 14 sections of the agreement.

1.The parties are the buyer and the broker. 2 Term. 3 Property. 4 Broker's obligations. 5 Buyer's obligations. 6 Retainer. 7 Compensation. 8 Protection period. 9 Early termination. 10 Dispute resolution. 11 Assignment; persons bound. 12 Brokerage relationship. 13 Special clauses. 14 Acknowledgment; modifications.

Important points to remember about buyers' objections: 1 An objection can be an opportunity to make the sale. Many objections can be turned into immediate selling points. "The house needs paint" might provoke an argument from an unprofessional sales associate. The empathetic sales associate simply asks, "Would you paint it yourself, or would you hire someone to paint it for you?" With a positive response from the buyer, both parties are happy.

2 Be certain you understand the objection; restate it. For example, a buyer may say, "This house costs too much money!" You may follow with a question like, "If I understand you, you feel that the house is overpriced?" The buyer may answer, "No, I'm just not certain I want to buy a house at this price level." By clarifying with a question, you avoid being argumentative.

Two common exceptions to the statute of frauds are 1 Executed contracts. Performance of the promise made proves the contract existed; therefore, the function of the statute of frauds has been accomplished, and a written form is not required.

2 Partial performance. Usually, the statute of frauds does not apply to partially performed contracts as long as two conditions have been met: (1) partial or full payment has been made, and (2) the buyer has either taken physical possession of or made improvements to the subject property. For example, if a buyer has evidence of a $500 payment toward the purchase of a parcel of land, then moves onto the property and plants a crop of tomatoes, the statute's function has been accomplished. The payment and possession are regarded as evidence that a valid contract exists.

Residential Contract for Sale and Purchase 1. Parties Seller: and buyer 1. Property description: Improvements and attachments: 2. Purchase price: 3. Time for Acceptance of offer and counteroffers; effective date: 4. Closing date:

5. Extension of closing date: 6. Occupancy and possession: 7. Assignability: 8. Financing: 9. Closing costs 10. Disclosures: 11. Property maintenance 12. Property inspection and repair: 13. Escrow agent: 14. Professional advice; Broker liability: 15. Default: 16. Dispute resolution: 17. Attorney fees; costs: 18. Standards 19. Addenda: 20. Additional terms:

Being prepared is one of the most important factors in "closing the sale." That means having the objective firmly in mind that today you will write the contract. So before showing property, you should have the following items in your file folder:

A copy of the lender's Loan Estimate for the top price the buyer can qualify for so you're ready to write the buyer's estimated cost disclosure All the necessary forms, including the cost disclosure estimate sheet and the contract for sale and purchase

Working with buyers is an important function of the professional real estate sales associate. Buyers are interested in working with knowledgeable, caring sales associates, and they generally are reluctant to make appointments without evaluating the sales associate's skills.

A sales associate should be adept at handling telephone inquiries, know the inventory, and stay current with available financing plans. Above all, the sales associate must understand and observe the laws with respect to required disclosures and fair housing.

An excellent way for using the internet to find buyers is to use an internet data exchange.d and how they are displayed.

An IDX is a way for brokers to share their MLS listings with one another in a way that gives them control over which listings are display most important content you feature online to generate buyer traffic.

Calls Resulting From Signs

Another source of buyers is calls on property signs. Callers on real estate ads generally want the properties' addresses. Callers on signs generally want the prices because they already know the locations. A sales associate should handle a sign call like an ad call, and tell the buyer the price.

The route taken on the way to each property also is important. A trip past a beautiful park nearby makes the homesite more interesting to the buyer, as does a trip past the shopping areas and schools closest to the home. While the initial route might avoid unsightly areas, they should be shown on the way out. Failure to show such surroundings is misrepresentation.

Avoid exaggerating a home's positive aspects to the buyer. This may create an expectation that the house will not meet. Let the buyer be pleasantly surprised when discovering the features.

One source of buyers is contacting occupants in rental properties, but the success of farming tenants will depend on local market conditions. In some areas of the state, rent prices are now substantially below the monthly mortgage payments of similar properties, so convincing tenants to become owners is more difficult. Additionally, the subprime loan fallout has greatly reduced the chances for marginal buyers to get loans. That said, many tenants continue to buy homes, and a consistent approach to contacting tenants may result in many sales.

Because most apartment properties will not allow door-to-door solicitation, a licensee can phone renters who are not on the do-not-call registry or send direct mail. The materials mailed to the tenants could be as simple as a postcard showing listings available in an appropriate price range or as robust as a company folder with brochures, information about financing available, and photos of current listings.

Time is of the essence for all provisions of this Contract," a single sentence in paragraph 18-F, has important legal effects. If a party fails to perform the duties made within the exact time limits in the contract, the party has defaulted. The other party to the agreement has all the legal remedies available in the contract including damages and cancellation.

Because of the importance of meeting requirements with dates and times, licensees should: use realistic time periods, check that the time periods complement and are consistent with times in other blank spaces, and set up calendar deadlines in the file to monitor performance by the parties to the sales contract once it has been signed.

Buyer Farm

Buyer farms are organized in much the same way as listing farms, requiring good selection techniques, strong organizational skills, and periodic, effective communications. The farmer could contact renters or buyers who might want to trade up.

Prioritizing Your Buyers

Buyer's Situation Current housing situation Buyer's family helping in the decision Best times to see property

Discussion Exercise 8.2

Carol is on floor duty when she receives a call from a buyer who says, "I'm looking for a four-bedroom home with a pool, northeast, but it's got to have a large workshop. Do you have anything like that listed in the $150,000 range?" "No, I don't have any listings like that," she says, "but I can show you another company's listing that may be just right for you. I saw it last week. It's very spacious, in an elegant setting with a great view. I believe it's priced at $148,500. I'm available to show it to you this afternoon at 4:30, or I have another time available at 6:15. Which is better for you?" Is Carol likely to get an appointment to show the property? Why or why not? Is there something she said that you would say differently?

Co-Workers

Current and former co-workers can be a wonderful source of buyers. Remember to let them know that you are in real estate and that if they need to buy or sell property, you'd like to help

In Practice when showing.

Don't overshow a property (overshowing is walking through a property making statements such as "This is the dining room."). Let the buyer discover some of the best features on his own.

You should preview properties before actually showing them to the buyers. If possible, you should visit the properties, but if time doesn't permit, the properties can be previewed via the internet. You would be surprised and embarrassed if, after telling the buyers, "I think you'll like this next one!" takes them to a property in terrible condition.

Each time you see a new property, whether on a showing appointment, a preview day, or an office caravan of new listings, you should match that property with a buyer, taking careful notes before contacting the appropriate buyer.

Preparing Sales Contracts

Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase, these instructions are generic in description and should apply to most other sales contracts. Each specific provision of the form is described separately to help licensees examine the contract thoroughly. Paragraph numbers in this section refer to contract paragraph numbers.

Discussion Exercise 9.1 You are a sales associate who has listed John Wilson's home in Foxcroft. Wilson would rather not repair several property defects (such as a cracked foundation).

He suggests the use of an "as is" clause in the contract so that a buyer can do any inspection desired. "Based on this clause," Wilson tells you, "we have no need to disclose." Does the use of an "as is" clause in a sales contract excuse a broker from disclosing material facts regarding a property? Explain.

Five-Star Homes (Best Buys on the Market) Price Range: $175,000-$200,000

If a buyer calls to ask for an address of one of the sales associate's listings, the sales associate may provide the information to the caller and, before the caller hangs up, suggest that the caller hear about "my five favorite homes on the market in your price range" to get an appointment with the buyer.

you need to know the buyer's urgency level. Each buyer should be classified based on urgency and motivation to purchase A person needing to move within the next 30 days is a Priority 1 buyer, needing immediate attention. A person who doesn't have an immediate need, but who should not be ignored, is Priority 2. A buyer who either will not or cannot purchase immediately is Priority 3 and should be contacted regularly for showings.

If a buyer relocating to the city is in town just for the weekend to purchase a home, this is a Priority 1 buyer. After financial qualifying shows the buyer to be capable of making a purchase, you might say, "It sounds like your situation needs my full attention. If you approve, I'll clear my calendar so we can find the right home for you." A buyer whose present lease expires in six months has less urgency to purchase now and is classified as Priority 3.

Financial qualification is the key to a successful sale.

If the buyer applies for a loan that is later denied, the seller, the buyer, and the sales associate have wasted time and effort. In addition, loan application fees ranging from $250 to $500, depending on the lender, could be lost. Licensees should explain both issues to their customers to help them understand the importance of financial qualifying.

Discussion Exercise 8.1

If you actively sell residential properties, try to name from memory the location of at least three single-story, four-bedroom listings. Try to name the location for four listed homes with swimming pools.

Qualifying the Buyer

It is a waste of time to show properties the buyer does not like or cannot afford. So, before showing properties, the sales associate must get the answers to two important questions: (1) What are the buyers' housing objectives? (2) What can the buyer afford to pay?

preparing the customer to buy practce.

Keep a contract on a clipboard, along with the MLS information on the property. It's always in sight so the buyer can see it. If the buyer asks questions like "Can the seller leave the draperies?" you would ask, "Shall I put that in the agreement?" while writing on the contract.

Calls Resulting From Advertising

Licensees who want their personal name to appear in a brokerage firm's ad must include their last name at least once in the ad. The brokerage firm's name must be included to avoid charges of blind advertising.For example, Joseph J. Perkins, a sales associate, could place an advertisement with "call Joe for more information," provided the ad includes the brokerage firm's name and Joe's last name somewhere in the ad

When driving in the car alone, when previewing properties, or when on the office caravan of listings. Once this technique becomes a habit, buyers will find your statements clearer and more interesting, and you will make more sales.

Many times, the listing office gives out the key to the back door, or the back-door key may be the only key provided in the lockbox at the house. Although you must go in through the door for which you have a key, the buyer should always enter through the front door.

Having a lender preapprove the buyer is the best approach and should be used whenever possible, but certainly before the buyer actually contracts for property. Preapproval means the buyer has been interviewed and the buyer's credit report has been reviewed and the income verified.

Most lenders adhere to the Fannie Mae/Freddie Mac standards in reviewing loan applicants. Those agencies recommend the max HER of 28% and the max TOR (back) of 36% for qualifying buyers for first mortgage loans. The FHA's max HER is 31%, and the maximum TOR is 43%. These are guidelines only. Some lenders will vary from these guidelines, so a prospective buyer who does not meet the guidelines may still be able to talk with a lender that will make the loan.

Many sales associates and brokers consider buyer seminars to be outstanding prospecting tools and offer them to the public to attract large numbers of buyers at one time. Some real estate companies have impressive materials and workbooks for attendees of the classes, which run over two or three evenings.

Often attendees pay a nominal fee to cover the cost of books. Most seminars entitle an attendee to schedule a one-hour consultation with the seminar leader about a specific real estate problem or need. This can benefit both the consumer and the licensee if a business relationship results. Remember that the appropriate brokerage relationship disclosures must be made.

Past Customers and Clients

One of the best sources of buyers is past customers and clients because they already have enjoyed the benefits of the sales associate's services. The sales associate should reach out to former customers by mail and phone.

Discussion Exercise 8.5

Picture a house that you have been in recently. Try to think of as many features of the house as you can, then express those features to represent fact, bridge, benefit, and picture statements. Set up a group contest to see who can come up with the most fact-bridge-benefit-picture statements about a house that is familiar to all of you.

Summary Extensive product knowledge is necessary if a sales associate is to provide the best service to a consumer. The sales associate has many ways to acquire product knowledge, but all consist of looking at properties. Index cards or client contact software help the licensee remember properties, and a best-buys-on-the-market list helps the sales associate better exhibit her product knowledge.

Sales associates draw buyers from a number of sources: Calls on ads, website, or signs Past customers Friends and family Co-workers Open house visitors Canvassing Buyer seminars When handling an ad or a sign call, a licensee's primary objective is to get an appointment. Sales associates should prepare carefully for ad calls, know the properties advertised, and have fallback lists. An internet data exchange (IDX) is a way for brokers to share their MLS listings with each other in a way that gives them each control over which listings they will display, and how they will be displayed. A sales associate should qualify the buyers' housing objectives and have the buyers preapproved for a loan, as well as prioritize buyers based on the immediacy of their needs. Sales associates should request that buyers enter into a written buyer brokerage agreement. When showing properties, the sales associate should describe benefits and be careful not to over show the properties. The sales associate can help reduce buyer confusion by helping buyers decide which house they favor, or like best, after showing each house.

Once the buyer has been qualified, it is time to show properties that meet the buyer's needs. The sales associate should use the following sequence in the showing and contracting process:

Setting the appointment Previewing the properties Planning the route Entering and showing the properties Evaluating the buyer's level of interest Writing the contract

You may require a written agreement from sellers, you will work with buyers on an open-listing basis. you may give the customer valuable information on the market and other ideas on purchasing a home but may end up working for nothing. Many successful licensees are requesting that buyers also enter into a written buyer brokerage agreement either as a single agent or as a transaction broker.

Some prospective buyers will be reluctant to sign such an agreement because they may be required to pay a commission. They may not be aware that the agreement calls for the broker to offset the commission from monies received from a seller if the property is listed with a cooperating broker. A buyer who understands the benefits will be more likely to sign the agreement.

A contract is a promise that must be performed. Once the promise is given, the law recognizes performance of that promise as a duty. If the promise is broken or breached, the law provides a legal remedy for the injured party. However, one promise, standing alone, does not constitute a contract.

Some specific act by the party to whom the promise is made, or a mutual promise from that party, is required to conclude a contract.

A buyer usually benefits from working with a licensee, regardless of the brokerage relationship, because of the licensee's knowledge about what's on the market. It is hard work to learn the inventory of houses for sale. To become proficient, sales associates should:

Spend the first few weeks in real estate looking at property. See at least 30 new properties each week. Keep a record of listings they have viewed by using a contact program like Top Producer, Salesforce or Act. Constantly practice matching neighborhoods with price ranges or house sizes. Prepare a five-star home list showing a best-buys-on-the-market sheet for each price range.

A sales contract, also called a purchase and sale contract or a contract for sale and purchase, is a written agreement setting forth the terms for the transfer of real property from seller to buyer, with both signing the document.

The Residential Contract for Sale and Purchase is the standard contract for sale and purchase and was developed by the Florida Realtors® and The Florida Bar. This section of the unit describes the many contract clauses. If licensees in your area use a different sales contract form, substitute that form for the Florida Realtors®/Florida Bar contract. The discussion that follows applies to your contract form as well.

Among the sales associate's first sources of buyers when starting in real estate are friends and family.

The agent should write to everyone he knows and stay in contact for news of potential customers. When working with a friend or family member, the sales associate must evaluate the loyalty issue to decide whether being a single agent for the buyer is more appropriate than being a transaction broker.

Setting appointment in practice.It is important to keep in contact with the buyer regularly, based on priority status. At least weekly, the sales associate should match the buyer's profile with new listings and then call the buyer for an appointment. If the sales associate wants a Saturday showing appointment, the appointment must be made far enough in advance that the buyer can make the necessary arrangements. Saturday morning is too late to make the call. Early in the week is the best time to call for weekend showing appointments.

The best way to match a buyer with property is to use a contact program like Top Producer or Act! A separate card may be printed for each property. Match-ups between buyers and properties also are possible using some of the MLS system software. If the sales associate does not have access to a computer, it is simple to enter the buyer information on prospect cards. Spread out the cards on a tabletop and group them by price range when reviewing new listings. Listings should be matched to the buyer, and the sales associate should call the buyer about the properties. The more frequently the sales associate makes the buyer aware that the sales associate is continually searching for the right property for the buyer, the more likely it is that the buyer will call about properties he has seen.

Describing the Buying Process to the Buyer At the first meeting with the buyer, the sales associate should provide, in addition to the agency disclosure form, a clear picture of the entire process, from the time of this first meeting right up until the day the buyer moves into his new home.

The buyer who understands the process is less likely to become uneasy or reluctant to purchase. The buyer should be given a copy of the purchase agreement, and you should explain important provisions in the agreement. A buyer's cost disclosure should be prepared for the home the buyer desires. This also helps in the financial qualifying process.

You should point out facts that she believes to be important to the buyer and expects the buyer to be able to translate each fact into a benefit. "This house is on a cul-de-sac" might be a typical comment when driving up to the property. This is important information to the buyer. The buyer might be thinking, "Yes, that's quite obvious. So what?" The full presentation should include fact, bridge, benefit, and picture.

The fact is that the property is on the cul-de-sac. The bridge might be "What that means to you, Mr. and Mrs. Jones, The benefit is the rest of the sentence: "is that because there is no through-traffic, automobiles travel very slowly, resulting in greater safety to your children." The picture is a word picture: "Imagine being out here on the street while your children roller-skate safely."

A fallback list, sometimes called a switch list or pivot list, should be prepared for each ad. A fallback list comprises three to five properties that are similar to the property being advertised.

The list can consist of the sales associate's personal listings, the brokerage firm's listings, or other brokers' listings. If a caller isn't satisfied after learning more about the property in question, the sales associate can refer to the fallback list of other properties that might be suitable. The fallback list becomes invaluable in getting the appointment and helping the buyer find the right property.

Canvassing is an excellent method of finding buyers and is discussed in detail in Unit 4. The same canvassing call can be a source of either buyers or sellers.

The sales associate might ask, "Do you know someone who may be getting ready to buy or sell real estate?" Often the answer is yes, and the sales associate can set an appointment. Remember, you may not call anyone on the national or state do-not-call registry.

Once the route has been decided, the sales associate should make appointments for the showings with the property owners. The time scheduled for each showing should not be fixed but should fall in a range because it is often difficult for the sales associate to judge how long the buyer will stay in each home on the tour.

The seller should be asked to prepare the home for showing by opening the drapes and turning on all the lights so that the house will be bright and pleasant. You should ask the seller to vacate the property during the showing so that the buyer can have emotional possession of the property. You should call the seller when leaving the previous house on the tour. If the seller owns a dog, the sales associate should ask that the seller arrange to contain the pet. If you will be later than rescheduled or must cancel, common courtesy as a professional dictates calling the seller to explain the circumstances. Nothing is more disappointing to a seller than to needlessly prepare the home for a showing.

Buyers who might want to trade up Perhaps a better source is an owner of a house who wants to trade up to a larger home.

This buyer will likely have enough equity in the current home to make a down payment on a new home, and because the home has appreciated recently, won't feel the price "sticker shock" as keenly. This person can be found in first-time-buyer neighborhoods that have a large turnover of homes. Farming an area like this can result in many listings, as well as buyers.

The successful you should prepare the customer for signing the contract long before the right property is found. After qualifying the buyer's needs, you should give the buyer a copy of the contract for purchase and sale and explain the more important paragraphs to the buyer.

This explanation of the contract serves two important functions: 1 If the buyer receives important information from you at their first meeting, this works to cement the buyer's loyalty. 2 Because the buyer is given a copy of the contract along with an explanation, the contract becomes the buyer's property. When the buyer becomes interested in a particular property, she is not startled when you pull out a contract form.

Discussion Exercise 8.4 The following role-playing skit is designed to highlight mistakes some sales associates make in their first meetings with prospective buyers and allows both spectators and participants to learn from the process.

Three actors are needed—a sales associate and two buyers. The persons in the skit should be enthusiastic and as realistic as possible. During the presentation, if the sales associate says something that may violate the law or ethics, group members should shout "zap!" to signify their disapproval. At the end of the skit, group members should be able to itemize the sales associate's errors and recommend responses to the buyers' questions.

You will not set an appointment until you have previewed homes and confident that good choices are available to show. The advantage of this method is that you can describe properties that meet the buyer's needs. Two disadvantages in this approach follow:

Two disadvantages in this approach follow: 1 you might spend time looking at properties, only to find that the buyer is working with another licensee. 2 If ou can't find anything just right and puts the buyer off, the buyer might decide to work with another licensee.

What Are the Buyers' Housing Objectives? Some of the information the sales associate should get from the buyers includes the following

What features do they want in the home? How quickly do they need to move? Must the buyers sell their current home? If they're leasing now, when does the lease expire? Have the buyers already spoken to a lender and been preapproved? Is there a specific area they want?

In Practice

When a buyer or a seller wants to change anything in a contract, such as moving the closing date beyond that required in the contract, be sure to get a written addendum to the contract signed by both buyer and seller. An oral agreement isn't worth the paper it's not written on.

Entering and Showing the Properties This process depends on a property's general appearance. If the home's exterior is outstanding, the presentation should give the buyer time to appreciate this feature. Many sales associates park across the street so that a buyer's walk to a house is as pleasant as possible.

When highlighting a property's features, the sales associate must remember the most important words in any sales presentation: Fact Bridge Benefit Picture

You should show no more than five properties in one tour. However, if a Priority 1 buyer is in town for the weekend in order to buy a home, you must continue to show homes or risk losing the buyer.

When setting the appointment to show properties, you should consider in which order the homes will be shown. Buyers go through a continual evaluation process during the inspection tour, and you should help that process. Many sales associates like to schedule the home they consider just the right property as the last on the tour. While there are good arguments for this procedure. The problem is if the houses get better between one and five, and five is the best, the buyer wants to see six. Most brokers recommend showing the best house early in the tour.

Discussion Exercise 9.3

You are writing a contract for the sale of a 160-acre farm and home. All parties have agreed that the buyer should have 40 days from the contract date to produce a written commitment for financing the purchase. What would be an optimum time for the contract closing date?

Evaluating the Buyer's Level of Interest Buyers usually know they are not interested shortly after entering the house.

You should stop showing the property and proceed to the next. Because this is not the right house, it would be pointless to answer any of the buyer's objections. If the seller is at home, You should explain tactfully that the house does not satisfy the buyer's needs.

Statute of Frauds requires that in order for a contract to be enforceable, it must be in writing and be signed by the party against whom enforcement is sought. Contracts that must be in writing and signed are of two general types: those that will not be performed fully within a short period and those that deal with specific subjects.

an agreement or a promise that cannot be performed by both parties within one year after the contract date must be evidenced by a written document. Also, an agreement to sell or the actual sale of any interest in real property is subject to the statute of frauds and must be in writing and signed by all parties bound by the contract to be enforceable.

Finding Buyers Some good sources of buyers include:

calls resulting from advertising (both print and online), calls resulting from signs, past customers and clients, friends and family, open house visitors, canvassing prospects, buyer seminar attendees, and a buyer farm. It's very important that your responses to customers' questions are quick and thorough. A customer who is impressed by your professionalism is more likely to use you for all property searches and to contact you for property showings.

An option contract is a contract between a property owner (optionor) and another (optionee) in which the optionee, for a consideration, has the right (not the obligation) to purchase or lease the property at a specified price during a designated period. To be enforceable in Florida, an option must contain all the essential elements of a contract.

creates a contractual right; When first written and executed, an option contract is unilateral. The owner-optionor is obligated to sell if given proper notice by the buyer-optionee, but the buyer-optionee is not obligated to purchase and may allow the option to expire. Options frequently are used to give a developer or a buyer time to resolve problems related to financing, zoning, title, or feasibility before committing to purchase or lease.

Homebuyers want photos and details of properties for sale. There are many online tools that will help answer homebuyers' questions, including

mortgage and affordability calculators; closing costs estimators; lists of schools within a selected area, sorted by type, grade level, school district, and ZIP code; live mortgage rates; market trends and statistical graphs/charts; Google Maps, which can display grocery stores, restaurants, gas stations, banks, golf courses, hospitals, and more; and reviews of local businesses and restaurants.

Holding open houses is a good way to find prospective buyers. The objective is to get buyer prospects. If the buyer purchases the home on display, so much the better. The sales associate should prepare a brochure for the home with the sales associate's name and picture prominently placed.

open house visitors are just looking. You should tell them that they are welcome to walk through the home but that she wants to point out a few features that are not readily apparent. If this home is not right for the visitors, the licensee should have her list of the five best homes in the price range ready, as well as a fallback list, and then set an appointment to talk.

When advertising online

the brokerage firm name must be placed adjacent to or immediately above or below the point of contact information. Point of contact information refers to any means for contacting the brokerage firm or individual licensee, including mailing address, physical street address, email address, telephone number, or facsimile telephone number (61J2 advertisments)

Advertisement calls are an extremely important source of buyers. Buyers call for more information to determine whether a house fits their needs. Buyers seldom call to make an appointment with a sales associate, but the sales associate's objective is always to get the appointment with the buyers.

two important points when answering buyer advertisement calls: 1, It is difficult to talk intelligently about properties that have not seen. You should see every company listing before answering calls on ads or signs. 2 you should review all company advertising in newspapers and homes magazines. you clip each ad and paste it on a separate piece of notebook paper or index card.

The sales contract is the basis for closing a real estate transaction. Because it is the final agreement, you must be very careful when preparing it. Anytime a licensee is not certain whether an attorney is required in preparing any special clause or type of contract, the best course of action is to advise the buyer and the seller to consult an experienced real estate attorney.

you and your employer may be financially responsible for any mistakes in the agreement. If any errors, omissions, or ambiguities exist regarding material terms, the courts will not go outside the contents of the contract to determine intent. Whoever prepared the contract will not be allowed to explain the intent of a clause that was not indicated in the contract contents. If the contract is vague and unenforceable, the result could be no transaction at all, loss of commission, and a possible civil lawsuit against you.

Making the Buyers' Decision Easier. you will only show five to seven homes during a showing appointment. This is usually recommended so the buyer can have an opportunity to give feedback and not become confused by a huge number of homes. In some cases, however, many homes are shown to a buyer during one appointment. This might happen if the buyer is making a trip from out of town and needs to find the right house during this trip.

you will have the buyer make a decision after seeing each home. You say, "Which home do you like best—this house or the house on Hibiscus Lane?" If the answer is "Hibiscus Lane," you say, "OK, forget all the other homes." At the last home on the tour, it is then easy to close with the question, "Well, which home do you want to buy, this one or the one on Hibiscus Lane?"If you show more homes tomorrow, and the buyer liked Hibiscus Lane best, start the tour by taking the buyer back to Hibiscus Lane, with a comment like "OK, so this is the house we're ready to buy if we don't find one better today, right?"