4 Big Mistakes When Meeting Home Buyers for the First Time

buyers in front of us we try to take shortcuts show them houses open doors and say make an offer it doesn't work that way ready here come the four factors the four crucial factors that i want you to execute to make that initial meeting with your buyers a success it's an opportunity for you to make a commission it's an opportunity for you to make a relationship with these people with this family it's an opportunity for you to put them where they belong and they will in turn ready wait for it give you referrals and that's how you create a successful realistic career but before we get to those four factors do me a favor like the video go ahead and subscribe to the channel and i don't know what you're waiting for hit that bell icon let's do this number one factor number one and it's important when you're dealing with the buyer that initial meeting is crucial ready here it comes location as far as where you're going to meet them where are you going to meet them that location of that meeting that you're going to meet them now a lot of people what they want to do is this they want to make it convenient for themselves now i'm talking about the real estate agent they say well you know what mr buyer how you doing now you're on the phone with them mr buyer how are you listen this is rico the real estate agent is going to help you find your dream house there's a starbucks down the street let's go ahead and meet at that starbucks sounds convenient doesn't it sounds like a lot of people probably do that you're gonna buy them a cup of coffee sounds like you're being nice but when it comes to business is it a good idea it's a horrible idea let me say it again it's a horrible idea let me say it one more time it's a dumb idea and i say it with passion because it's extraordinarily unnecessary and it'll backfire on you now why will it backfire on you i want you to think about this you're going to invite them into your realm you're going to invite them into your home into your into your real estate world the best place to invite them when you're gonna invite them to your real estate world would be what yeah your brokerage your office now why is that a good idea think about it that's because in your office you have every single resource you're gonna need you're going to have computers you're going to know the passwords to these computers you're going to have bathrooms if your client has to go to the bathroom you know hey it's down the hallway to the left you're going to have coffee to offer them at your office this is crucial you got to go to a safe zone a professional zone an atmosphere that says wow this guy's got it together and he knows exactly what's going on in this brokerage you know where the printers are if he wants copies of the contract starbucks isn't going to have it if he's got to go to the bathroom starbucks is going to have to give you they have to wait in line to get to the bathroom we want to make this nice and smooth meet them in a location that you know will benefit everybody now listen factor number two one of my favorites factor number two is this let me remind you this is an opportunity you have somebody in front of you who needs your help you put them in a house you close the transaction you close escrow you earn yourself a commission they get into the house factor number two ready wait for it is none of this will happen unless you have a connection with these people with the buyers you have to have a connection now what the hell am i talking about a connection that seems like a broad word of connection you got to get them comfortable with you now they already want a house but they're looking for somebody to put them in the house comfortably they want the process to be comfortable they want somebody who's i don't know has that genuine niceness about it somebody who really wants to help them now the connection i'm referring to is something in common with them chit chat about something i don't know about sports about cooking about their kids about schools are you from this area wow so am i what's the high school did you go to did you go to college which college wow i know where that's located you got to make sure there's a human connection give them that human touch that's crucial that's where you're going to win or lose this transaction they got to like you this is a likability business it's a people business they gotta like you and the only way they're gonna like is if you create a connection a connection a connection a connection now factor number three i want you to pay special attention to it listen i want you to literally listen to this part carefully because i made mistakes with this one factor number three is pre-approval asking your buyers if they are ready to purchase a house financially now this is crucial this is actually very sensitive it's a sensitive subject because most realtors will just simply ask that direct question which is are you pre-approved for a loan seems like such an innocent question seems like such an innocent question hey buyer are you pre-approved for a loan do you have gas in the gas tank so that we can travel seems like a beautiful question or is it i hate that question and i'll tell you why i hate that question because in a sense you're asking them are you sure you can afford this are you ready to buy a house can you do this how insulting is that let me give you a quick backstory happened to me once here it goes i had a listing i had a local listing near my home somebody called me off of my sign the sign that's sitting in front of my listing with my phone number they called me i picked up the phone and they of course said can i see your house i could be there in about half an hour well luckily i lived nearby so i said sure i'll be there and i'll meet you there i got ready rushed over there luckily i got there ahead of time i went inside and turned on all the lights to make sure it's nice and bright in the house you with me so far waited for them to show up and they finally did arrive and as they're walking up the driveway towards me i looked out towards them and i asked that simple question i said excuse me are you pre-approved for loan and they stopped in their tracks i'm like whoa they stopped in the tracks and they shouted to me what you don't think we could buy this house what you don't think we could buy this house i was so surprised they got back in their car and they left i lost an opportunity with a buyer now i meant nothing by it i didn't mean to insult them but in a way i did i said are you sure you could do this i was i was asking them are you sure you can do this so i reflected on that simple question the simple question of are you pre-approved for a loan and what i did was this i changed my approach that question no longer exists in my presentations with my buyers i now say excuse me mr or mrs buyer will you be paying all cash for this property or will you be taking advantage of these great low interest rates we have today now think about that think about that versus are you pre-approved for a loan it's never failed me since i've never insulted anybody since on the contrary i think it flatters them you're asking will you be purchasing this house cash or will you be taking advantage of these great interest rates it's got nothing to do with do you qualify for a loan i'm not going to show you a goddamn house until you show me a pre-approval letter it's simply saying do you need help with a loan if they say they are of course already working with a lender you simply say well then can you please pass their contact information so that we can do this together put you in the right house together you the lender and myself nice and simple now factor number four is the buyer broker agreement now what the hell am i talking about i just threw you a curveball lighten up let me explain how this works a lot of realtors out there will not dare to put a buyer in their car or show any properties to any buyers without having a written contractual agreement a commitment from a buyer they wouldn't even leave their brokerage to say hey buyer follow me until the buyer commits to them contractually saying you have to buy a house with me you have to buy a house with me and that's called a buyer broker agreement specifically known as the buyer representation agreement exclusive the bre here in the state of california i want you to think about that you have a real estate agent a realtor who tells a buyer i want you to love me right now you don't know anything about me we've only spent the last 15 20 30 minutes together and i want you to love me you're forcing them to love you they don't even know you yet you want them to sign the contract marrying you in the stands in the real estate world you have to have to buy a house with me print this contract and if you don't you're gonna have to pay me a commission holy mother of mercy it almost sounds ugly you have to love me you're forcing them to love you now how does love typically happen it happens over time it happens with a genuine fashion it happens when people respect each other get to know each other it happens over time it could be a few days could be a few weeks could be a few months it's the same type of relationship you'll be creating with your buyers listen let's get something straight buying a home typically is a very emotional time for most buyers that's of course taking investors aside investors just want profit but a buyer is buying a home to live in it it's an emotional period it's emotional time you with me stick with me on this one now you're telling them that the only way you're going to help them is that if they commit to you right here right now i've represented buyers my entire career i would say over 250 buyers in my career and i've not once used that contract i take them out the first time they get to know me we talk about our kids we talk about the house we talk about what are you looking for specifically wow would it be fun if you had a pool in your backyard what would you do if you had a pool oh that'd be neat barbecues summers with your kids well that's that's great you make a connection you don't have to pressure them into something that they don't want to do listen i put this to the test once i had somebody come into me when i was managing a brokerage ones and this particular realtor asked me hey rico do you ever use a buyer broker agreement i looked at this particular agent i said absolutely not and this particular agent said well rico guess what the books the textbooks say we should use them we should get our client have them commit to us immediately without them knowing who we are that doesn't make sense to me you go to rick i'm going to follow what the book says the textbook says we should i'm gonna go ahead and do it and my client's coming in right now i said hey let me know how it works out i saw the client walk in this particular realtor spent about i don't know 10 20 minutes with the with their client client left i asked that realtor after the meeting i said how did it go she says they wouldn't sign it i didn't think so it's a very intimidating contract and you're going to lose an opportunity you're going to lose an opportunity by forcing somebody to do something they don't want to do this is supposed to be a fun time a free time a time to say show me this house show me that house and show me that house what you don't want to show me houses you don't want to help me unless i commit to you sounds like there's a problem there you're with me so be careful with that buyer broker agreement some of your brokerages may train you and how to get them to sign it almost sounds like trickery to me i won't use it i want them to love me genuinely over a small period of time you got it good let's go over this one more time number one meeting location crucial put them somewhere where you have everything accessible to you you want to show them you got your act together number two make that connection that's your start that's where they're gonna say wow this person actually cares for us this real estate agent actually cares for us i dig it number three pre-approval careful with this one you don't want to use the the phrase are you pre-approved you might wanna use the alternative the more positive approach which is will you be paying cash or will you be utilizing the great low interest rates that we have today number four that buyer broker agreement my god it's intimidating it's your business you want to use it go right ahead don't listen to me i've only closed about 500 deals do i know my recommendation don't even think about it don't even think about it all right hope this helps you out hey listen do me a favor if you have any comments on this if you disagree with me hey with all due respect that's fine leave a comment down below what have you done that's worked for you what have you done that has not worked for you listen opportunities we don't want them to get past us one of the great phrases i've ever heard one of the great quotes i've ever heard by thomas edison he said a lot of people lose opportunities because opportunity is dressed in overalls and requires work these four factors require work requires thought requires you having a heart and really caring for them and not seeing your buyer as another number putting them where they want to be you got it good hey listen do me a favor like this video like i'm gonna wait subscribe to the channel hit that bell icon and as a reminder first week of every month we have a free intro class for you thinking about a real estate career check it out the link is down below don't miss out great to see you and we hope to see you next week [Music] you

Channel: US Realty Training

Views: 14,359

Keywords: real estate license, real estate agent, ca realty training, real estate school, real estate, california, realtor, online real estate school, 4 Big Mistakes When Meeting Home Buyers for the First Time, home buyers, meeting home buyers, meeting home buyers for the first time, real estate agent meeting home buyers, real estate agent home buyers, real estate agent home buyer meeting tips, meeting tips for real estate agents, tips real estate agent, new real estate agent, new realtor

Id: eh_GIDpv9oA

Length: 13min 13sec (793 seconds)

Published: Wed Jul 21 2021