Communicate value! But how? Step by step introduction for buyers

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Not sure how to communicate value in a buyer’s agent briefing? Team leader Andrew Undem found the answer when he shared his “8 Value Pillars” buyer demo, which succinctly communicates the value he brings to his customers throughout the buying process.

“You earn business through your reputation or your preparation. Ideally it’s both, but you have to be ready before the opportunity arises so you can clearly illustrate the value you bring.” , the firm for the Baltimore metropolitan area District provides services.

Undem continues, “Everyone knows that bonds and rapport that make other people feel comfortable are important, but you can’t make other people feel comfortable until you feel comfortable yourself. You have to become competent without even realizing it, And this can only be achieved through preparation.

Undem communicates his value by explaining the “8 Pillars” of his buying process, which creates A framework that explains each person and how he or she brings value to each person.

1. Loan pre-approval

The home buying process begins with loan pre-approval. Undem provides the following script as an example of how he communicates value when explaining this part of the process:

“When you’re looking to buy a home, it’s important to understand all of the loan options and the different programs available. In Baltimore, many times buyers are unaware that they can receive grants, down payment assistance, and even tax credits through some of the loan programs available. I can help you find many options to unlock some value for you during the loan process.

“One of the values ​​we bring to this part of the process is understanding what programs you may qualify for and helping you not only get pre-approved, but also verify your equity. This is a lot of work before you start looking at homes. Work so we can work with lenders to help us communicate your strengths to sellers.

“So, from the beginning, we will work hard to save you money by finding loan programs and specific loans that fit your needs. We will also help you find a lending partner who will help us make an offer that is attractive to sellers.

2. Home page search

Undem then moved on to his second pillar, the house search portion of the process. He skips the parts everyone knows, like building rapport and identifying their wants/needs, and instead goes straight to the language he uses to communicate the value he brings.

“Ask questions like: ‘How are you doing now when you’re looking for a home?’” said Wyndham. “Most people will answer on Zillow, Realtor.com, or other online search portals. That’s fine, but that’s exactly what everyone does. The problem is, that doesn’t include many upcoming listings and off-market listings. in stock.

Here’s what you should say to your buyer:

“You should definitely continue to look that way, but what you’re seeing are the homes that agents put in the MLS, and these sites pull from the MLS, and that’s just a portion of the overall market and the homes available for purchase. Most agents Will wait for the house to show up on the MLS, show it to you and collect a fee.

“We create value by sharing all potential homes for sale with our clients and working behind the scenes to provide you with information about your home before other buyers, with whom you compete, create a better future for you and your family. Find the best deals. Did you know that we can see all the homes that people want to sell but haven’t? These are called expired or canceled listings and we want to see them.

“Pocket listings are homes that are ready to go on the market; we network with other agents to learn about them. New construction listings often appear on a builder’s section of available homes and floor plans. We also work hard to find these opportunities for our buyers . This is why it is important for me to know what you are looking for during the search process so that I can begin to provide you with a complete view of all available homes.

3. Market dynamics

The next pillar is market dynamics. This is how he explains this segment to buyers:

“When you’re looking for a home, you need to understand market dynamics. Market dynamics are the relationship between active listings, homes under contract, and homes sold. If you’re narrowing down a particular town, neighborhood, or school district, know It would be good to have some information about this particular area.

What is the average list-to-sales ratio?

“This helps us understand whether the average buyer is paying just under list price, below list price, or just above list price. Historical data is important because it helps us make a compelling case once we find the right home for you. Quotation.

Do sellers in this area need to pay any closing costs to buyers?

“We can see this by looking at historical sales data. National news shares what’s happening across the country, but more importantly understands exactly what’s happening in your desired micro area. I hope you’re better than most real estate agents People better understand the micro market dynamics so that we can provide you with the best deals.

4. Provide research

Wyndham continued:

“Once we find a home, my job is to shift the focus to providing research. My job is to gather as much information as possible so that we can make a compelling offer to get you the best deal possible.

Research I wish we knew about includes but is not limited to:

• • How long has this house been on the market?
  • How many times have they been shown?
  • Why do sellers want to sell?
  • Does the seller have any critical dependencies on the timing of the sale or the sale price?
  • How much did they spend on the house?
  • What type of financing did they get to purchase their home?

“This is information that we can use and potentially exploit in order to provide you with the best deal possible.”

5. Components of the quotation

As Undem transitions to the next pillar, the components of an offer, he says this is one of the most compelling parts for agencies to communicate value.

Here’s what to say to buyers:

“For example, when most people find a home for sale for $400,000, they say, ‘I wonder if they would accept $380,000?’ That’s a good question, but the price is just the quote. One of five components that include purchase price, closing costs, contingencies, deposit and settlement date.

“The purchase price is a no-brainer. We’ll use all of the research I mentioned earlier to recommend an offer to help you buy your home for the lowest price possible. Closing costs are the costs associated with purchasing a home, including mortgage fees, title fees, deed transfer fees and certain other charges associated with the purchase.

“Because of the number of transactions we do, I will be able to direct you to the lowest cost suppliers and use our scale to offer as many of these at discounted prices as possible.

“Contingencies are especially important. My job is to protect you through the entire process, and contingencies are one of the ways we do that. You will almost always have home inspections, appraisals, mortgages, and situations where we need protection Contingencies for any other contingencies you may have.

“Remember, when we enter into an agreement to purchase a home, we have the right to purchase the home, but we do not have to purchase the home. The seller only has one house to sell and we can purchase any house we decide to purchase. Therefore, we will not We relinquish our power and we will protect you throughout the entire process through the contingencies we utilize in our offer.

“The fourth component is the earnest money deposit. The typical rate on our market is 1%, but we may adjust this based on how to make your offer more attractive. The final component is the settlement date. By finding out if the seller needs to go through A time frame, or if the seller wants some extra time to close the deal, then we can adjust our offer to potentially accommodate their needs in that area to get add-ons to what we want.

“Once we have an offer, offer presentation is another way to make your offer stand out. We submit each offer in an organized manner and coach the listing agent on how to best present our offer. The Electronic The email contains a clean PDF document that we have verified and approved, along with an easy-to-understand summary of the offer. This makes the listing agent’s job easier and shows him/her that we will be easy to work with.

6. Contract period

When it comes to contract length, Undem tells buyers:

“Once we sign the contract, all dates are set. We have a specific time to apply for your loan. We have a specific time to complete your home inspection. Our entire home services ecosystem will be involved every step of the way .

“This includes the lender, inspector, appraiser, title company and anyone else involved in the transaction. This is where we move this deal to settlement through the management advantage of my team while safeguarding you throughout the process protection of.

7. Settlement

Undem explained the settlement as follows:

“In settlements, one of the value components we bring is our relationships with settlement attorneys who guarantee you the lowest fees, will settle whenever and wherever it is convenient for you, and work hard to serve you in Reissue rate available: possible.

“The reissue rate is because in most cases, the home seller has a title insurance policy from the time the home is purchased. By requesting a copy of the policy (which most agents will not do), the settlement attorney can leverage the policy for You are offered a much lower reissue rate than purchasing a brand new policy.

“I will work to reduce your closing costs in every way possible because I can effectively manage the entire real estate ecosystem.”

8. After settlement

Undem summarized his buyer pitch as follows:

“Closing on your home is just the beginning of my services, if you need any help I’m here to help. Anything you need contractors, painters, movers, etc. you can access our customer only home services guide , so that we can continue to provide you with any assistance you need in the future. Do you have any questions about this process and what I went through?

For more information about Andrew Undem, check out his website.