HOMEBUYER PROTOCOL AND GUIDELINES: Can two walk together unless they be agreed? --Amos 3:3
When teaming up with buyers, you are in a three-legged race! There must be teamwork and cooperation of all parties involved to make it to the finish line (closing) without a detrimental tumble or fall.
Years ago when I was a new agent, I had submitted an offer and for whatever reason, the listing agent seemed to have the inside information on my buyers. He knew how much my buyers were qualified for, how soon they were looking to move and why they were looking to buy in that particular area. He knew the Who, What, When, Where and How of my buyers. How could this be?
I questioned my buyers as to whether or not they knew the agent personally. They were certain they didn't recognize the name. Long story short, my buyers during one of their more curious moments, decided to check out an open house before I was to meet with them for the previous Saturday's showings. The listing agent recognized the husband's name because it wasn't a common name. When the open house agent stumbled over the name, my buyer spelled it out for him in order to help him get a clearer understanding of the pronounciation. How very considerate of my buyer.
"There is a Time to Be Silent and a Time to Speak" --Ecc. 3:7
It turned out my buyers saw no harm in talking to the agent extensively because they told him they were working with an agent and they hadn't particularly cared for the home once seeing the inside. Well guess what? The home they DID love, turned out to be listed and represented by the same agent! My buyers had inadvertently stripped themselves of negotiation leverage by spilling the beans regarding their circumstances.
D'oh!
After a gentle scolding we were able to salvage negotiations because I too had done my homework on the sellers and knew they didn't have a lot of time to waste as well. The sellers did end up accepting our offer, my buyers got the home and all was well again in AndiLand.
I was so disturbed by what could've happened, I drafted a two-page "Buyer's Protocol and Guidelines" that outlined all roles and expectations of each party before and during escrow. I've found this to be an invaluable resource. It has been tweaked throughout the years as different situations have presented themselves. Buyers can be very unpredictable (hardheaded - God bless them) so why not have measures already in place? If my buyers find themselves making that sharp right to see an open house, they are to play it cool and give up NO information. If the agent insists on them signing a registration book, they are to put MY phone number in. I've gotten calls from agents who were spitting mad that I answered the phone. In which I respond by asking them if they insisted that my buyers sign their registration book after being told they were already working with an agent? *crickets* Also, under no circumstance are my buyers to call a "For Sale" Sign, but rather call, text, or email me either the name, number, address or street and I'll get them all the information they want within the hour if possible. There's also protocol for online registration when it comes to real estate websites as well. The information is sold by the masses to local agents and lenders who need only an open door in which to talk to your clients. I don't even want you looking through the peep-hole when it comes to my clients!
If nothing else, going over a "Buyer Guideline and Protocol" is a great way to break the ice, enforce the concept of teamwork, and to empower your clients! They feel so much more informed, relaxed about the process, and confident in working with you when witnessing your precautionary measures on their behalf before and during the process.
If you would like to partner in the home buying or selling process, do not hesitate to call me at 310-508-4354!
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[My buyers had inadvertently stripped themselves of negotiation leverage by spilling the beans regarding their circumstances.]
THAT'S RIGHT. That's why I always laugh at the buyers who think that going directly to the listing agent on each property is so smart. It's really not smart. My town is small, and 10% of the agents do 90% of the business.
What's the chance that the buyer will have already disadvantaged themself . . . pretty good chance.
Candice, so true! For the most part they think its simply about you being worried about someone stealing them from you.
Andi - Another reason a buyer needs to hire a qualified and professional agent! What they don't know will hurt them. In a blog post I had mentioned that Realtors help re direct their buyers to protect them from harm that they aren't aware of. Buyers in many cases think and agent is a glorified shuttle driver.
If you're a buyer reading this: Agents will- negotiate in your favor, read and make suggestions on contracts to protect you, know the "tricks" and help you avoid them, can usually spot a problem property or someone trying to mask a problem. They also have methods that save you money and grief. if they didn't then Realtors wouldn't be in business!
Great example of why hiring a good agent like you is critical.
Thanks Nevin! A strong defense will keep the others from scoring! :)
When I was reading the first few paragraphs, I had the same thought . . . how? The open house came to mind. Reading further, yup.
Putting together a protocol is an excellent idea. Buyers are somewhat clueless about how the process works and sometimes do things that make our hair stand on end.
Carla - I'm sure you have many buyer makes-you-want-to-shoot-yourself-in-the-head stories being an Exclusive Buyer's Agent! A person can never get bored working with buyers that's for sure. God bless them!
Jane - we can't get upset with them when we never informed them or the protocol.
Hi Andy ~ What a super idea!! I'm going to bookmark this and add it to my things to do list. Love it.
Liz
PS - I've been on an AR hiatus so am just catching up with my blog reading - came back to add that I can't believe this wasn't featured! It's a gem of a post.
All well and good. Don't let the seller or seller's agent know anything about the buyer but what you want. However, on occasion, in multiple offers, I like to let the seller know my buyer is overqualified to buy their house. A tick in interest rates isn't going to blow this deal. And when it is not a multiple offer situation, but my buyer qualifies for over the asking price, and the offer is lower, it is lower because that's the value the buyer places on it. Whatever the case, honesty wins in the long run.
Liz - I've been on one unwillingly. I just haven't had the time in front of a computer. Glad to see you back!
Glenn - Absolutely Glenn, it's on a case-by-case basis and I'd rather the info come from ME. :)
Hi Andi---thanks for your post. I believe that most buyers simply do not know the protocal so it's a good idea to lay it out for them. Thanks for sharing.
Thanks Michael! It helps the buyers to understand and know what is expected. It takes the fear out of the process because they feel informed. :)
Andi I give buyers a homebuyer guide and discusses each of our roles, but I think the emphasis on "protocol" may be the element that is missing. Buyers are always tempted to call the number on a yard sign, go to open houses without us, etc. But they just don't have a clue how they compromise their positions.
Fantastic idea, Andi. Love the idea of having them leave your number at a open house when needing to register. This definitely sounds like something we need to start putting together. Great post and suggested.