Buyer | Page 6

Here ’ s a look at all the things – big and small – that a REALTOR ® may do to help clients when buying a home .

Counseling Session Activities

• Prepare the buyer for executing a Buyer Brokerage Agreement

• Explain agency relationships to the buyer and get state required legal consent to represent .

• Inform the buyer of working relationship based on state law , the REALTORS ® Code of Ethics , and the broker ’ s business policies

Building a Relationship

• Learn the buyer ’ s wants and non-negotiable needs

• Understand the buyer ’ s budget and what will be needed financially

• Help the buyer understand what property their chosen budget will buy

• Consider having the buyer fill out a homebuyer ’ s checklist

• Assist the buyer in examining how much they can afford to spend

• Provide quality lender resources

• Partner with the buyer to locate suitable properties for consideration

• Match the buyer ’ s needs with available property

• Constantly re-evaluate buyer ’ s needs and refocus property showings to fit those needs

• After ensuring the buyer understands what is done for them , how it is done , and the benefit to them , obtain signatures on the Buyer Brokerage Agreement

• Explain how compensation is paid , who pays it , and what the buyer ’ s options are for paying if REALTORS ® are members of the National Association of REALTORS ®

Educating a Buyer

• Communicate the working relationship based on state law , the REALTORS ® Code of Ethics , and the broker ’ s business policies

• Explain Federal and State Fair Housing laws

• Explain what to look for in applicable property disclosures

• Reassure the buyer that their personal information will remain confidential

• Inform the buyer that you will always disclose all known material defects

• In accordance with state law , provide information on checking the sex-offender registry and crime statistics for the neighborhood per the information in the Purchase and Sale Agreement

• Discuss available resources that the buyer can check to learn more about prospective neighborhoods

• Provide a copy of the Protect Yourself When Buying Real Property GAR brochure

Preparing a Buyer

• Explain the timeline for house hunting , mortgage approval , and closing

• Explain the local market and how it impacts the buyer

• Show statistics on what percentage of list price sellers in the area are currently receiving

• Inform the buyer on what home features are popular

• Identify current average days on market

• Share the dangers of using the price per square foot to figure home values

• Explain the concept of absorption rate and how it impacts the buying process

• Indicate current listing months of market inventory

• Share estimated potential out-of-pocket costs to complete the transaction

• Assist the buyer in analyzing the loan estimates per the information in the Purchase and Sale Agreement

• Qualify the buyer for financial ability to purchase