ForeclosuresMass - ForeclosuresMass Monthly - Agent Success - The Essence of a Good Real Estate Agent (May 2005)

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.

T I P !
To learn how and where to meet other professionals, see this month's article by Susan LaPlante-Dube entitled "How Effective Networking Helps You Close More Deals"

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.