Bonus: Download The Close’s Buyer Presentation Template

What Is a Buyer Presentation?

You’ll need to seal the deal with that prospect once you’ve generated a buyer lead through your real estate prospecting efforts. A buyer presentation is a short, semiformal presentation that lays out the professional relationship between buyer’s agents and leads. It is typically given after the initial conversations with potential buyers. It’s a way to showcase your expertise and marketing strategies, convey clear and realistic expectations, explain the homebuying process, and ask questions.

What to Include in a Real Estate Buyer Presentation

In a real estate buyer presentation, it’s essential to include information that thoroughly showcases your expertise and the available property listings. Some key elements to include are as follows:

• Personal introduction: Provide a brief introduction about yourself, your experience in the real estate industry, and any notable achievements that highlight your expertise and neighborhood knowledge.
• Buyer’s needs: Summarize their wants, needs, and dreams for their new home to show that you’ve listened.
• Buying process overview: Break down the buying process into clear, easy-to-understand steps.
• Market overview: Provide a snapshot of the current market conditions, trends, and what they mean for the buyer.
• Financial overview: Discuss financing options, preapproval, and estimated closing costs to prepare them financially. 
• Property selections: Present a curated list of properties that match their criteria, highlighting unique selling points.
• Testimonials: Share stories and testimonials from your past clients to show your track record of success and build trust.
• Next steps: Clearly outline the actions needed to move forward.

Steps for Creating a Buyer Presentation

Crafting an effective buyer presentation involves specific steps. These include researching your audience, tailoring your approach, and following up appropriately. Below is an overview of the essential steps for creating a buyer presentation that grabs attention and delivers results.

Step 1: Pick an Interactive Template

Interactive templates fully immerse your clients in the experience during a real estate buyer presentation. These templates enhance the visual appeal of your presentations and make them more engaging and memorable for your clients. Use a template that allows your buyers to explore stunning property photos, view 3D floor plans, and take a virtual neighborhood tour. These features transform the presentation into an exciting journey rather than a static display.

Canva is a popular, easy-to-use, and versatile graphic design tool. It is the preferred design tool for real estate agents who need to quickly create professional marketing materials. Canva offers templates, editing tools, and sharing options for custom property flyers and branded social media posts.

Step 2: Understand & Uncover Your Buyer’s Needs

To understand the buyer’s needs and wants, you must learn about their life and what they like. Instead of asking about basic things like where they want to live and how much money they have, ask them questions via an online form about their current living situation, reasons for moving, previous experiences with buying a home, and what they’re looking for in an agent.  

Then, when you meet them, give them a map and ask them to show you where they want to live and where they don’t want to live. They can also write the most important things they want in a home and the things they don’t want. This method personalizes the discussion, making potential buyers active participants in the search process.

Step 3: Clearly Explain the Homebuying Process

It is essential to guide homebuyers through the intricate homebuying process clearly and concisely. By doing so, you will minimize their anxiety and establish trust. 

Here are important steps on the homebuying process timeline:

• Financing: Evaluate financial readiness and credit score.
• Budget: Determine their budget and decide how much your clients can afford to spend on a house.
• Financing options: Research and explore different financing options, such as conventional, FHA, VA, and USDA loans.
• Mortgage: Get preapproval for a mortgage.
• Home search: Selecting properties that meet the buyers’ criteria and arranging viewings.
• Make an offer: Discuss factors like the current market, the home’s value, and how to negotiate effectively.
• Inspections and appraisals: Check that the home is in good condition and worth the investment.
• Closing: Walk them through what to expect at closing, from signing paperwork to receiving the keys.

Step 4: Include a Market Analysis

To help buyers make smart decisions, provide comprehensive market information, including home price trends, property variety in different neighborhoods, average time on the market, and insight into negotiation and purchasing under current market conditions. Ensure you have all the information you need to feel confident about your investment in this market.

Step 5: Showcase Properties

It’s essential to do more than recite the home features when presenting properties. Instead, bring each home to life by creating stories that link the property to the buyer’s lifestyle. To make it engaging and visually appealing, use the following:

• Consider engaging scenarios to make the property features more relatable. For example, you could say, “Imagine hosting Thanksgiving and birthday dinner in this spacious living and dining room,” or “Envision relaxing on the weekend in this bright and tranquil garden patio.” These little narratives can help potential buyers visualize themselves living in the space.
• To appeal to the senses, add vivid sensory descriptions, such as the fireplace’s warmth and the nearby park’s peaceful sounds.
• Use high-resolution images, interactive virtual tours, and authentic testimonials from previous clients to enhance credibility and evoke emotion.

Step 6: Present Different Financing Options

Remember to provide transparent information about the financial aspects of buying a property. This includes explaining the down payments, closing costs, and ongoing expenses like property taxes, insurance, and maintenance. Remember that you are not a mortgage professional, so generalize financing and provide contact information for mortgage professionals.

Step 7: Present Sample Buyer’s Representation Agreement

As you wrap up your presentation, touch on the buyer’s representation agreement. In real estate, things can be full of surprises, and without this agreement, there’s a chance of investing a lot of time in clients only to see them switch to another agent at the eleventh hour. It’s crucial to showcase a sample agreement and guide them through key sections, like exclusive representation, your role as their agent, and how you will receive compensation.

Step 8: Show a Clear Next Step

It’s important to end your real estate buyers presentation by clearly outlining the next steps. Instead of just saying “thank you,” let them know what to expect next. This could include setting up property tours or diving into offer strategies. Provide a clear timeline to maintain momentum. Answer any questions and demonstrate that you are prepared to assist them throughout their homebuying journey. This approach keeps things organized and shows your dedication to helping them find the perfect place.

Tips for Delivering a Buyer Presentation 

Now that you know how to create a buyer presentation and have a template ready to go, let’s review the tips for delivering your presentation in a way that builds a foundation for a solid buyer-agent relationship.

• Role-play your presentation with another agent. The more you practice, the easier the presentation will be to deliver, even if you have some nerves.
• Deliver your presentation in person (if possible). Avoid giving your presentation virtually because building rapport is much easier in person. Plus, that firm handshake, warm smile, and confident eye contact will go a long way in convincing your leads that you’re the agent for them.
• Use a large monitor or tablet to give your presentation. If you don’t have a conference room with a large monitor, consider pooling together with other agents in your office to buy a big tablet specifically for presentations—better yet, convince your broker to buy you one!
• Break the ice with small talk (but don’t overdo it!). Starting your presentation with a minute or two of small talk will not only break the ice, but it also has the potential to build rapport more quickly than your entire presentation.
• Tell them how long the presentation will take. We think you should keep your part to less than 15 minutes and leave plenty of room for questions.
• Ask specific and open-ended questions. So you can gather information for your profile, build trust, and get them excited about their search. You can ask questions to create an actionable buyer profile during your presentation. Choose three to four questions that best fit your situation and help you build the most knowledge:
  • Have you ever worked with a buyer’s agent?
  • Why do you want to find a new home, and why now?
  • What kind of monthly payment would you be comfortable with?
  • How experienced are you with the mortgage process?
  • If you had to choose one, would you choose a great location, price, or home?
  • Is there a specific school district you want to be in?
  • How important is a fast commute to work?
  • What is your time frame for finding a home?
  • When is the best time and day of the week to reach you, and how do you prefer to communicate?
  • Can you paint me a picture of your dream home?
• Don’t ask them to sign an exclusive buyer agreement…yet. Walk them through the agency disclosure agreement and tell them you don’t want them to sign an exclusive agreement until they know you better. Promise to earn their loyalty. When you are ready to ask for the signature, I like a simple, straightforward, “So what do you think? Have I earned your business?”
• Send them a PDF of the presentation. If you really want to wow them, come with buyer agent checklists or write an e-book on the buying process and local market and send it along with your presentation and packet.
• Remember that knowledge = confidence. Walk into your presentation confidently because you have the information and the skills.

Bringing It All Together

Delivering a top-notch, successful buyer’s presentation takes confidence (and a little thoughtfulness), but if you do it well, you can convert those warm buyer leads in as little as 15 minutes. Do you have any real estate buyer presentation templates, buyer presentation scripts, or advice for new agents giving their first buyer presentations? Or maybe a story about a buyer presentation that went sideways? Let us know in the comment section.

The post The Buyer Presentation: A Step-by-Step Guide to Convert Clients appeared first on The Close.

Disclaimer: This article contains suggestions for informational purposes only and does not offer legal advice. Laws and restrictions vary by area. Before using any of the techniques listed, check with your local real estate commission and attorney for guidance.

What Is a Cash Offer in Real Estate?

“Cash is king” is a common phrase in many industries, but it definitely applies to real estate purchases. A cash offer is when a homebuyer doesn’t require financing (like a mortgage) and can pay for the property in full with cash.

Why Is a Cash Offer Better?

Cash is an appealing choice for sellers because it is usually ready to go, and they don’t have to risk many hiccups in the closing timeline. The mortgage lender usually requires inspections, appraisals, and repairs, so there are more logistics and obstacles to overcome when buyers are financing a home.

10 Ways to Complete With Cash Offers

Since you’ll have clients with many financial backgrounds, agents need a strategy ready to make their offer stand out for every different type of transaction. When you don’t have a cash offer, here are the top 10 ways to successfully beat them—even in a red-hot market!

1. Use a Cash Lender

If you’re wondering how to beat a cash offer on a house, one of the most straightforward methods is to transform your offer into a cash offer with a cash lender. Cash lenders were born to help mortgage buyers compete with cash buyers. They will buy the home with cash and then work with the buyers to refinance or purchase the property after closing.

Here’s an example of how it works:

• Get qualified with a cash lender like Homeward Mortgage
• Find a house to purchase
• Homeward will place a cash offer on the property
• Once the property is purchased, the buyer rents the property from Homeward while the loan gets finalized

Cash lenders typically charge 2%, but Homeward Mortgage’s fee is reduced if the buyer uses them for their final loan.

2. Submit Your Offer Early 

Some investors and buyer’s agents believe the best strategy to win bidding wars is to wait until the last minute before submitting an offer. Don’t do this, especially when figuring out how to compete with cash offers! The adage “the early bird gets the worm” is very accurate in this situation. The more time you give before submitting your offer, the higher the buyer’s chance of giving more (and better) offers if their offer is rejected.

Also, if you have clients looking at homes and you find they’re not quite ready to buy—you should stop right now and help them get everything in order. Use our home buying checklist to make sure they’re prepared. This prep will help you get offers in quickly and compete with even the most competitive cash offers.

3. Offer a Signing Bonus

The best way to overcome a situation where there are multiple offers is to offer a “signing bonus” if your buyer’s offer is accepted quickly. To do this successfully, you have to present the highest and best offer, but it can be a great way to compete with cash offers.

This approach allows your buyer to stand out and potentially eliminate the competition—and the seller and agent both feel like they get a fair price. Plus, if the seller doesn’t accept the offer, it stays in the mix, so your buyer can still have a chance to win.

4. Be Memorable & Likable

Getting an offer accepted over others is a competition. Home sellers compete for cash, but you must compete to get your buyers to the closing table, and slipping through the cracks is no way to win a competition. Being likable and memorable is key!

Listing agents might deny it, but professional and polite agents are more likely to get their offers accepted. An agent who lacks professionalism, is unfriendly, or oversteps boundaries isn’t someone people like to work with. So, if you want to beat out a cash offer, kill them with kindness. 

Here are easy ways to be more memorable and likable to the listing agent:

• Communicate consistently: Start building trust with the listing agents as soon as you schedule the first showing. Be friendly, answer texts quickly, and be respectful of the listing.
• Leave unique feedback: Instead of leaving generic feedback on the listing, mention specific things your buyer loved, like the style of the home, the neighborhood, or how they can see themselves living there. This extra effort can leave a great first impression and make them feel emotionally connected to you or your buyers.
• Send an introductory video: Record a quick introductory video of yourself to the listing agent. Due to Fair Housing regulations, don’t include your clients. Let them know you will submit an offer and ask them to keep you updated on any status changes. Videos make people feel like they’re talking directly to you and are more personal than text—plus, they stand out from all the other buyer agents.

5. Offer to Cover the Appraisal Gap

One of the main reasons why a cash offer is better is that it’s simpler—there are more requirements when a mortgage is involved, like an appraisal. Bidding wars can sometimes cause sales prices to rise far beyond what agents or appraisers can realistically justify, which can cause financing issues for buyers. 

The difference between the actual sales price and the lower appraised value is called an appraisal gap. If your clients are in this situation, buyers can mitigate the risks for the seller by offering to cover an appraisal gap. This strategy means your buyers will put up additional money for the down payment and closing costs.

For example: if a property is marketed for $400,000 and it gets bid up to $420,000, the financed buyer may agree to bring in an additional $20,000 if the property doesn’t appraise at $420,000.

Of course, buyers may not jump at this idea, but it can be instrumental in highly competitive situations. Remind them they will only need this money if the appraisal is lower than the agreed sales price. However, here are a few ways you can suggest to your clients on how to offer an appraisal gap:

• If they don’t have the additional funds for an appraisal gap to try to restructure their loan to a lower down payment option
• Have them ask parents, grandparents, or even borrow from their 401(k) to cover the gap in the event the appraisal comes up short

Pro Tip: It may be wise to discuss this with your clients when you start looking for houses, not when their emotions are tied to a property. Use a house hunting checklist to help you broach the subject.

6. Have Your Buyer Pay Your Commission

Figuring out how to beat a cash offer on a house is challenging because there isn’t a single method that will work every time, so you’ll have to get creative. If you’re still stumped, think about how many sellers feel that it isn’t fair that they pay commissions for both their agent and the buyer’s agent. Commissions have always been a touchy topic, so here’s how Sean Moudry used the commission to beat a cash offer:

7. Add an Escalation Clause

An escalation clause can be part of a real estate contract, stating that the buyer will increase their offer if a higher bid is made. They often get a bad reputation, but when used correctly, they allow buyers to make their strongest offer without the risk of overpaying. This technique can place a financed offer ahead of a cash offer on a house, meaning success for you and your client.

For example, a home listed for $460,000 gets multiple offers for $470,000, $480,000, and $500,000. Most likely, the $500,000 offer from the most earnest buyers will get accepted at $500,000.

However, the buyers could offer $475,000 with an escalation clause offering $1,000 more than any viable competing offer up to $500,000. This creates the potential for them to get their offer accepted at $481,000, since the highest offer at $480,000 + $1,000 = $481,000. If this offer were accepted, it would save them $19,000 because of the escalation clause!

8. Pay the Seller’s Closing Costs

In most real estate transactions, the seller pays for the costs of the title insurance, escrow, agent fees, and homeowner association (HOA) fees. These costs can add up to between $2,000 and $29,888. However, having the seller pay is just standard practice, not an actual legal requirement, so the buyers offering to pay closing costs can be a huge advantage.

This may seem like a small gesture, but this strategy can go a long way with some money-conscious sellers. Make sure to get estimates of the fees before including this in your offer, or set a limit on the costs your buyers will pay based on their budget.

9. Give the Seller a Flexible Possession Time

Many sellers need to buy a home at the same time that they’re selling, which can be nerve-racking. You can give some peace of mind to sellers and compete with cash offers by offering a flexible purchasing timeline. Of course, cash offers can also have flexible possession dates, but they aren’t always offered. There are two main strategies buyers with financing can use to give the seller more time to move:

• No-cost rent-back or leaseback: If a seller needs time to stay after the home is sold, then a no-cost rent-back can give them time to stay in the home long after it’s been sold. Most states provide a pre-approved form for post-occupancy. If your state doesn’t provide these forms, advise your client to have a lease drafted by a local real estate attorney. Remember that FHA and conventional loans only allow 60 days of flexibility, but buyers can qualify for an investment loan to extend the time further.
• Replacement home contingency: This is a two- to four-week contingency for the seller to find, contract, and inspect a replacement home. If the seller cannot complete this by the end of the time period, they may extend the time, or either party can terminate the contract. This technique avoids the 60-day occupancy requirement, but the contract could be terminated if the seller cannot find a replacement home.

10. Communicate

It sounds simple, but many buyers’ agents send offers without calling or texting first. It’s best practice to make accepting an offer as easy and appealing as possible for the listing agent and seller—and it’s just smart business to build trust during the process.

Consider what a cash offer on a house means for the seller and the agent—easy and hassle-free. To compete with that, you must build a relationship and keep your communication clear and consistent. A great way to do this is by calling the listing agent (yes, on the phone!) to clearly understand the seller’s situation and how you can draft an offer that meets their specific needs. Always call or text the listing agent to let them know the buyers submitted an offer and ask the listing agent to confirm they received it.

FAQs

How do you counter a cash offer?

Do all cash offers ever fall through?

How are so many people making cash offers on homes?

Bringing It All Together

What does a cash offer mean in real estate? For home sellers, it’s usually appealing because it’s easier. For competing homebuyers and agents, it means that the home is more competitive. However, there are plenty of strategies on how to compete with cash offers. Stay positive, think about the other concerns a seller may have, and craft an offer to meet their needs.

Got other ways to beat the cash offer competition? Let us know below!

The post How to Compete With Cash Offers: 10 Ways to Write Winning Offers appeared first on The Close.

What Is a Military Relocation Professional (MRP)? 

A military relocation professional is a certified real estate agent who helps current and former military service members find suitable housing. Their specialized knowledge and training in the military home search process make them the best choice for military relocations. Essentially, they are supportive guides, helping their clients navigate the world of military real estate with confidence and reassurance.

Most individuals who work with military personnel have an MRP certification that showcases their expertise in this field. It helps realtors understand how to work with US service members, their families, and veterans to find the best housing solutions and maximize benefits and support.

Benefits & Reasons Why Military Relocation Is an Ideal Niche

Considering the benefits of becoming a realtor military relocation specialist? The Military Relocation Professional (MRP) Certification Course is an approved elective for the Accredited Buyer’s Representative (ABR®) and Seller Representative Specialist (SRS) designations. This role offers a rewarding career serving military families and gaining valuable expertise working with the military community. It can open up new opportunities in your real estate career and allow you to make a meaningful impact.

• Expand knowledge: Understand how military relocation processes and procedures affect service members’ housing choices and learn about the transaction process. 
• Provide valuable service and information: Provide valuable information and services to help members decide about renting, buying, selling, or renting out property.
• Learn financing options: Explain the basics of VA financing.
• Military personnel are always on the move: They often must move to new locations because they receive permanent change of station (PCS) orders. They might not have been to these places before, so they need help finding housing from experts.
• Easy financing through VA loans: Another reason is the ease of funding through the Department of Veterans Affairs loans. Zero-interest loans are an even bigger deal in our current lending environment! 
• Military personnel have recession-proof jobs: Regardless of the big economic picture, the military won’t be laying anyone off. Those actively serving in the US military have guaranteed roles, many of which require them to travel and relocate regularly.

Steps to Building a Career as a Military Relocation Professional

Now that you have mastered the fundamentals of how to become a relocation specialist, let’s dive into how to kick off your journey of working with service members to see if it’s the right fit for you. Here’s a rundown of the process:

Step 1: Learn the Skills & Requirements to Work With Service Members

Before you get too excited and start packing your bags, you should know the three basics you’ll need to start working as a military relocation specialist: 

• You need to live near or relocate close to a military base: Military people move to locations with bases for work. You can’t do military relocations if bases are inaccessible. The biggest bases are Fort Bragg, North Carolina; Fort Cavazos (formerly known as Fort Hood), Texas; and Fort Campbell, Kentucky. There are many smaller bases, too. Use this map from Military.com to locate them.

• You need a solid online presence: An online presence as an MRP is a MUST for working military relocations. You will have difficulty generating military leads if you don’t have a website and strong social media skills. 

• You need to be highly organized and work within deadlines: The US military usually pays for a few weeks at a hotel for active-duty service members who are PCSing to a new location. That’s not very long, considering that the escrow process can take up to 45 days in some areas. Therefore, you need to work FAST. 

Step 2: Earn an MRP Certification 

Curious about how to become a relocation realtor for military personnel? A one-day course is the foundation for the Military Relocation Professional (MRP) certification, available online and in-person to accommodate your hectic schedule. Upon finishing the course, you can apply for realtor MRP certification. Although it is not required, it is highly encouraged.

Once certified, real estate agents are included in NAR’s MRP realtor search, making it easier for military buyers and sellers to find them. While the MRP certification is beneficial for working with military clients, it’s not mandatory. A solid online presence and good branding are crucial for attracting military leads, as service members often start their home search online.

Step 3: Use Lead Generation & Marketing Strategies to Attract Military Buyers & Sellers

Marketing to service members is similar to marketing to any buyer or seller. However, there are a few marketing strategies that I’ve found are perfect for generating military leads. Here are my favorite ways to market to military personnel: 

Create an Effective Online Presence

While it’s not 100% necessary to have military pictures and pages on a website, military-specific information will help you gain trust and be more relatable. When military buyers and sellers search for help finding a home, they seek agents who understand their unique needs.

Consider implementing these seven strategies to help your website cater effectively to military personnel:

• Providing downloadable guides on military relocation and VA loans.
• Highlighting properties near military bases.
• Writing blog posts on relevant topics like home prices and best neighborhoods.
• Offering virtual property tours.
• Sharing testimonials from military clients.
• Collaborating with military relocation specialists.
• Using interactive maps and area guides.

AgentFire offers a cost-effective platform for agents to customize their online presence with various templates, tools, SEO capabilities, built-in lead generation tools, and easy integration options. It empowers agents to build their own marketing and lead generation system.

Use Targeted Keywords on Your Website

Many buyers use real estate keywords like “homes for sale in Austin,” but military members often use specific terms like “PCS to Oahu” or “homes near Joint Base Lewis McChord.” If you’re creating blogs or web pages for military buyers and sellers, use the targeted keywords below to attract the right audience.

• real estate military relocation specialist
• military move real estate agent
• military real estate expert
• active duty military real estate agent
• VA loan real estate military
• military veteran real estate agents
• military discount real estate
• military real estate investing
• military relocation real estate agent
• real estate agents for military families
• military base real estate
• Oahu military real estate

Share Relevant Info on Social Media

Think of your profile as a small website and share helpful content. If you work with military clients, share information like the amount of traffic, home prices, or the good and bad about buying new houses. Another excellent social media technique is to use essential words to help people find you. Even simple drive-by videos on Instagram could help someone who wants to know about a place.

Host Local Events

Hosting client appreciation parties, community events, or housewarming gatherings provides opportunities to connect with potential clients in the military community. The events allow for casual conversations in fun settings and are often photographed and shared online, giving you greater visibility. Consider using props with your logo, Instagram handle, or name to promote your brand in the photos. You can also do themed events for Veterans Day, Armed Forces Day, Memorial Day, and Military and Military Spouse appreciation months.

Share Client Testimonials & Reviews

Testimonials are a great way to generate new military business. While we may not think anyone reads them, buyers and sellers do. They are our stamp of approval as agents. Once you close transactions with military clients, ask for client testimonials to help build trust and credibility, leading to your next deal.

Step 4: Begin Working With Military Buyers

As with any real estate niche, chances are you will have to start working with buyers until you build up enough experience to become a listing agent. The process of working with military buyers is a little bit different from working with regular buyers. Here is a quick rundown of how the military buyer lead process works:

Contact a Lender Who Has Experience With VA Loans

Even if the client’s PCS move isn’t happening for a few weeks or months, it’s always good to begin the process by contacting a lender who specializes in VA loans. The loan officer will provide preliminary information for the preapproval process to determine which loan product will be the best for your clients and what purchase price to stay at or below. 

While not all military buyers take out VA loans, it is one of the most common mortgage loans used by buyers in the military. It’s also a 0% interest loan. How amazing is that?

Educate Them on the Pros & Cons of Buying vs Renting

Many service members are first-time buyers, and others might prefer to rent, but long-term plans often vary. When consulting with new military clients who may be on the fence about buying or renting, educate them on the possibilities.  

Since many military buyers use their 0% down VA loan benefit to purchase homes, it generally takes a little longer to build enough equity to cover selling costs (to at least break even). Going over the pros and cons of buying and understanding their motivation to purchase or rent and their plans will unlock information that helps your clients make the right decision. 

Take Them on Property Tours (Virtually) 

If you are unfamiliar with tech tools to help with showings and sight-unseen transactions, you must learn these when working with military buyers. Here are a few ways to show homes virtually: 

• Live streaming vs recorded video: When possible, do both. FaceTime, WhatsApp, and video calls via Facebook Messenger are great for connecting live with your clients while showing the home. However, these live videos disappear, leaving nothing to go back to. 
• Record a 10- to 20-minute video: Upload your video walkthrough to Google Photos, Dropbox, or iCloud, then send a link. A video can be played and replayed, so there is a huge benefit to one long video over a bunch of short clips. This will make you stand out for going above and beyond. 
• Compile DIY research links: Recommend Google Maps and Google Earth and send links to transportation, shopping, the local police site, and any additional websites or apps that will make long-distance purchases easier for the clients.

Don’t try to censor from afar. It’s much better to find another home than to have an unhappy client once they see the place for the first time. Integrity is key. Future referrals will flow to honest agents. Just don’t forget to add the sight-unseen addendum where applicable!

Step 5: Start Working With Military Sellers

Once you have experience with military buyers, start working with sellers. Selling a service member’s home is nearly identical to any real estate transaction, with one key difference: Active-duty sellers often know in advance that they will be PCSing and prepare for the sale early. Military sellers usually contact their original agent for help with the sale if the agent is still connected with them. Putting your past buyers on a drip campaign is so important!

Connecting through Facebook, newsletters, and Instagram is an easy way to stay in touch. There is also that thing called the phone. It’s only a matter of time before your clients move again. Then, only one question remains: “Are you going to be selling or renting your home?” Happy Grasshopper is designed specifically for real estate agents. It offers prewritten email campaigns, lead nurturing automation, and integrations with popular real estate CRMs like Follow Up Boss and Wise Agent.

If you have doubts about working military relocations (hey, it’s not for everybody), check out our other real estate career paths, such as becoming a commercial real estate agent and a luxury real estate agent.

Frequently Asked Questions (FAQs)

What is an MRP specialist?

How do I become a military relocation specialist online?

What is the military on the move designation?

Bringing It All Together

This article offers valuable insights into the skills and knowledge necessary to succeed in assisting military families during relocation. It emphasizes the importance of understanding military families’ unique needs and challenges during moves. It also provides a comprehensive overview of becoming a certified Military Relocation Professional and highlights the critical factors for a successful MRP career. Have questions about building a career working with active-duty military personnel? Leave your questions in the comments below!

The post How to Become a Successful Military Relocation Professional (MRP) appeared first on The Close.

What Is a Real Estate Team?

Before I get into how to build a real estate team, you need to know what a team is all about. A real estate team is a group of agents and employees with complementary skill sets that join to close more deals.

Teams come in all shapes and sizes—ranging from a duo of experienced agents who work side by side to close deals together to a single licensed agent with multiple unlicensed assistants to a dozen or more buyer’s agents, listing agents, and inside sales associates. How you structure your team is entirely up to you and depends on your business needs. However, you need to review the pros and cons to decide if it’s right for you.

Steps of How to Build a Real Estate Team

Now that you know what a real estate team is and its advantages and disadvantages, it’s time to learn how to put it together. Before starting your quest to dominate your real estate market with a team, you need a plan. Here are the step-by-step instructions on how to build a real estate team and run it successfully.

Step 1: Get Approval & Guidance From Your Managing Broker 

Even though real estate teams are legal in all 50 states, you must still talk to your broker to ensure you know the rules on how to start a real estate team. You’ll also need a split and cap agreement to know how much money you can count on from each transaction to pay your team and cover your expenses. You can renegotiate with your broker as your team grows and becomes more successful.

Step 2: Choose the Right Team Structure

Once you get the green light from your managing broker, the next step is to decide how your team will be structured. Here is a quick overview of our three favorite team structures to get you started.

Step 3: Develop a Business Plan & Budget

When overseeing a real estate team’s operations, it’s essential to recognize the unique aspects compared to managing a solo real estate business. A comprehensive real estate business plan outlining your requirements, financial considerations, and strategies for utilizing the generated revenue is crucial for success.

The real estate team business plan must include the following items:

• Mission, vision, and values
• Detailed overview of the team’s organizational structure
• Roles and responsibilities of team members
• Strategies for effective team communication and collaboration
• Conducting a SWOT analysis and setting SMART goals
• Lead generation and client conversion strategies tailored to a team-based approach
• Client relationship management and nurturing strategies
• Comprehensive marketing plan for both team and individual agent branding
• Scalability plans include expanding, hiring, and training new team members
• Financial plan reflecting revenue-sharing model, budget allocations, and profit-sharing arrangements

Step 4: Decide on a Compensation Model

When working in real estate teams, the commission is usually split among team members. Junior agents typically receive 40% to 50%, and team leaders get 60% to 75%. Teams often have a cap of around 90% of the collective cap of a group of licensed agents of the same size. It’s important to be generous when attracting high-quality agents; adjustments can be made as your team grows.

Wondering how much you’ll take home after sealing the deal? Use our handy calculator to find out! Just provide the details below, and we’ll automatically calculate your commission.

• Sale price of home: The amount of money the buyer agrees to pay for the seller’s home.
• Percent of the commission collected by an agent from the sale: The percentage of the sale price you are collecting at the close of the transaction.
• Agent commission split with brokerage: Your commission rate is agreed upon between you and your brokerage.

Step 5: Build Your Technology & Communications Stack

Remember, the tools you choose can significantly impact your team’s success. The right software helps attract new team members and reduces stress and confusion. I’ve selected some top team tools and software specifically designed to help teams. They will allow you to start with just two team members and add more as your team grows.

Marketing: Coffee & Contracts

Want to run the team leader model but can’t afford to hire a marketing manager? Coffee & Contracts is your new secret weapon. They offer beautifully designed social media and print templates that make everyone think you hired a $100,000-a-year marketing manager.

Lead Generation: Market Leader

If you need a steady stream of seller leads without the hassles of running your platform, then Market Leader is for you. Their exclusive seller leads come from housevalues.com, one of the internet’s most efficient lead capture websites. All you need to do is sign up and start qualifying your leads.

Communication: Slack

Want to escape the drudgery of digging through your inbox just to follow up on conversations with your team? Slack, a business group messaging platform, is the 21st-century method innovative teams use to communicate. No more lost emails or scrolling through endless email chains to find that one disclosure file.

Step 6: Hire an Administrative Assistant

If you want to set your team up for success, your first hire should be an administrative assistant. Having an administrative assistant on your team can be an attractive lure for recruiting junior agents. This person’s primary responsibility is to take work off the plate of the team leader or other licensed team members so that they can focus on the real estate-specific tasks that drive new client relationships and closed deals.

This work includes things like the following:

• Filing
• Calendar coordination and scheduling
• Communication that doesn’t include real estate-specific advice or strategy
• Light marketing tasks
• Errands
• Sign placement
• Marketing material delivery
• General office organization

The ideal candidate for this position is organized, helpful, and solutions-oriented. They see a problem that needs fixing or a chance to increase the efficiency of a daily routine and fix it without being told to. This role is generally entry-level, so real estate experience isn’t necessary here. But it is helpful, especially if you’re a top producer with a lot of volume.

Step 7: Build Out the Rest of Your Team

Once your team starts closing more deals than your agents can handle, it’s time to scale and recruit for your team. While the team model you choose will determine who you should hire next, here is the general order we recommend for most teams.

Critical Mistakes New Team Leaders Make

Now that you have a better idea of how to set your team up for success let’s examine some common missteps that bright-eyed and bushy-tailed new team leaders make and how to avoid them.

• Mistake #1: Not embracing the platinum rule: “Do unto others as you would have them do unto you.”
  • Do this instead: Great leaders embrace the Platinum Rule, popularized by authors Michael O’Connor and Tony Alessandra: “Treat people how they want to be treated.” You must also commit to knowing your people well enough to understand exactly what that means.
• Mistake #2: Not providing consistent guidance, direction, or accountability.
  • Do this instead: People in our industry join teams and organizations because they want to be a part of something, and they want to be led. So, if you intend to be a great leader, you must be accessible, highly communicative, and model the high-minded behavior you expect from them.
• Mistake #3: Not helping your people or team members develop to their full potential.
  • Do this instead: Consult with each team member and create an individualized growth plan. Where do their interests lie? What skills and proficiencies can be improved over the next quarter and year? What impact could this have on their performance and your profitability? Be prepared to identify the people, platforms, courses, and resources to make it happen—and to invest the resources.
• Mistake #4: Failing to respect other people’s boundaries.
  • Do this instead: Great leaders embrace their people and honor what’s important to them. Your team members want balance, which comes from boundaries. Pay attention to how you spend your time and what your people observe you do. Be willing to share your challenges and desire to make positive, impactful changes. Reinforce their boundaries and balance, and seek a peer group to do the same for you.
• Mistake #5: Not recognizing a job well done.
  • Do this instead: While it’s easy and maybe even second nature for leaders to identify what someone is doing wrong, you’ll be better respected and earn greater loyalty when you pay attention to what your people are doing right. So praise them, thank them, surprise and delight them, and be the leader others love to work with.
• Mistake #6: Making big, business-impacting decisions without consulting those you lead or other team members.
  • Do this instead: If you’re a smart leader, you’ll ask for suggestions, consider their opinions, and include them in your decision-making process. If you don’t, things can go terribly wrong. 
• Mistake #7: Micromanaging and expecting perfection from your team.
  • Do this instead: Tell your team what you want and let them do their work. Trust them and talk to each other. Everyone is good at different things, so listen when they tell you stuff. Don’t watch them all the time. Help them when they need it. This will make work better for everyone.

FAQs

What is a real estate teamerage?

I’m a new agent. Should I join a real estate team or a teamerage?

What qualifications do I need to start a real estate team?

How do real estate team members get paid?

Bringing It All Together

Building a real estate team is a fantastic way for successful agents to scale up their business and for new agents to break into the industry and learn from seasoned pros. Are you a part of a real estate team? What advice would you give to agents wondering how to start up a squad or choose a company to work for? Tell us in the comments below.

The post How to Build a Real Estate Team in 7 Steps + Mistakes to Avoid appeared first on The Close.

Step 1: Keep It Concise & Simple

Did you know visitors spend an average of 19 seconds on a website? Keep your real estate salesperson bio short and easy to read when crafting it. Focus on the key aspects of your experience and what sets you apart from other agents. Your readers don’t need to know which school you took your prelicensing courses in. Aim for concise sentences and avoid jargon and overly technical language to convey your message clearly. But if you have a large space for a long-form bio, break up your bio into bullet points or subheadings.

Step 2: Start With a Killer Introduction

If you don’t have a killer first line, your readers will likely get bored with your bio and skip reading the whole thing. A strong introduction will make your viewers read until the last word of your bio. How to do that, you ask? 

Start with a hook that draws your readers in—it can be the most interesting fun fact about you, your most significant sales achievement, a bold statement, or a personal anecdote about your real estate journey. Whatever it is, ensure your opening line is engaging, as it will set the tone for the rest of your bio.

Step 3: Showcase Your Real Estate Niche & Local Expertise

Showcasing your real estate niche and deep local market knowledge is key to building trust with potential clients. Start by stating your niche, whether it’s luxury homes, rental properties, commercial buildings, or first-time buyers, and explain why you chose this specialization. 

Clients want a local expert who knows their community backward and forward and can answer all their specific questions to steer them in the right direction. Let your audience know why you’re the go-to agent in your neighborhood. Highlight your familiarity with the neighborhood, including insights into local amenities. What’s your opinion on the best pizza place in your area? Where do they serve the best coffee? Emphasize how your local expertise can help clients, whether they’re buying or selling a property.

Step 4: Mention Your Education, Certifications & Accolades

Are you one of the top-producing agents in your firm? Have you received any continuing education certifications? Mentioning your real estate license and any other licenses you hold assures clients of your legitimacy. 

Your bio is perfect for showing off your awards, sales achievements, and relevant certifications, such as Accredited Buyer’s Representative (ABR), Certified Residential Specialist (CRS), or Certified Property Manager (CPM). By highlighting your achievements, you’re letting potential clients know they’re working with an accomplished professional.

Step 5: Spice Up Your Bio with Relevant Buzzwords

Level up your writing with word variety. A well-chosen word can make a difference in how readers will perceive you. Swap out repeated words for synonyms to make your bio automatically more engaging. Struggling with the perfect description for yourself and what you do? Here are some of our favorite descriptive words that can add flair to your bio:

Step 6: Leverage Your Brokerage

Your brokerage has likely invested much time and money in building its reputation in your community. Leverage these investments to enhance your professional image—building on the good vibes they’ve already established. Include your firm’s real estate logo to reinforce your brand visually. If their ideals contradict your own, you’re likely at the wrong company. If you’re a broker-owner, this is a good place to briefly detail why you opened your shop.

Step 7: Remember to Put Your Call to Action

What’s next for your audience after they read your real estate agent bio? Including a call to action (CTA) will guide readers on what they should do next. Encourage potential clients to contact you for more information, schedule a consultation, or visit your website for more details. Ensure your email address, mobile number, and social media handles are easy to find. Adding a clear CTA gives you more chances of converting readers into clients.

Step 8: Add Your Best Professional Headshot

Your realtor headshot is the first impression potential clients will have of you, so ensure yours is high-quality and not overly edited. Invest in a professional photographer to capture your headshot, as you can use this photo in all your marketing materials, not just your realtor bio. Dress professionally and comfortably, smile naturally, and pose confidently. An excellent headshot will build trust and make you more relatable to potential clients.

Step 9 (Optional): Hire a Professional to Write Your Bio

If writing a real estate bio is high on your to-do list but you can’t find the time, consider hiring a freelancer to do it for you. This investment can save you time and ensure your bio stands out. Fiverr is a popular source of professional writers who are willing and able to create a killer real estate bio for you—for a price as low as five bucks.

Excellent Realtor Bio Examples

Let’s explore these real estate biography samples from successful agents to understand how they’ve effectively communicated their expertise.

1. Chris Adlam

Why it works: Chris Adlam’s bio is compelling for several reasons. It opens with an interesting fact about him: his recognition as a top-producing agent. Next, it emphasizes his dedication to personal service and how clients count on his discretion, qualities clients look for in agents. Also, Chris ends his bio with personal details about his life, which makes him relatable.

2. Lisa Cregan

Why it works: Lisa Cregan’s bio is effective because, in the first paragraph, she enumerates where she has worked and how her journalistic experience translates into real estate. Additionally, her deep knowledge and connections to various cities in the country make her more approachable to potential clients.

3. Ben Caballero

Why it works: Many agents don’t think mentioning press releases or other external websites is essential, but that’s not true for Ben Caballero. Listing down all the publications he’s been mentioned in is an excellent public relations strategy. His bio highlights his impressive achievements and how he has surpassed his home sales each year, immediately establishing his authority in the industry.

4. Ginger Glass

Why it works: I love Ginger Glass’s bio because it’s concise and straightforward. It highlights her extensive experience as a licensed attorney and agent, making her stand out as a top player in the industry. Ginger’s dual expertise only shows that she understands the real estate market and all its legal aspects.

5. Dana Koch

Why it works: In the first two lines, you’ll immediately know Dana Koch’s standout qualities as an agent and his real estate niche. Potential clients looking for luxury properties can list him as their prospective agent after only seeing the second sentence. Koch has also leveraged his brokerage in his bio, emphasizing his professional success and impressive track record of over $1 billion in real estate sales.

6. Alexa Lambert

Why it works: An important detail you can add to your realtor bio, like Alexa’s, is your diverse client base. Who do you sell properties to? In Alexa’s bio, she emphasizes her experience in New York’s neighborhoods, with celebrities and Fortune 500 CEOs as her clients, instantly appealing to luxury property homebuyers.

7. John Scalia

Why it works: In the first line of his bio, John Scalia used relevant keywords for SEO, which is a smart move. By adding “real estate agent in Florida,” his profile would likely appear in search engines of potential clients looking for agents in FL. I also like how he mentioned his other expertise besides helping agents buy and sell homes. Let’s not forget that little CTA at the end of his bio. Contact him today!

8. Tracy Campion

Why it works: Tracy Campion’s long-form bio highlights all her achievements in Boston, adding all her awards and distinctions with external links from trusted sites. I love that she mentioned her loyal repeat customers, which is a beautiful way of saying that her clients consistently have positive experiences. That, my dear reader, is how you create an image of reliability that appeals to potential clients.

9. Ben Lee

Why it works: Here’s another short and straightforward bio. By combining his real estate expertise and background as a real estate attorney, Ben Lee effectively showcases his ability to assist clients in negotiating deals. Since his bio doesn’t include a list of awards and certifications, Ben focused on being the trusted broker in Los Angeles’ Westside property market.

10. Melissa Dailey

Why it works: Melissa Dailey’s realtor bio is effective because she enumerates her achievements and personal values with relevant buzzwords like unwavering honesty and integrity. While she calls herself a “top-producing and highly sought-after agent,” Melissa makes herself relatable by adding her hobbies, community involvement, and the schools she supports.

11. Jacob Mann

Why it works: In my opinion, Jacob Mann has a killer intro right here. He opens his bio with something personal and then enumerates his most significant achievements and how he started over 20 years ago. His deep ties to Greenville build his credibility as a trusted part of the community. My favorite part of his bio is how he ended it with, “He is the Mann you need!”, which also makes a good tagline.

12. Kerri Pearce

Why it works: Many agents switch to real estate after careers in other industries and then hesitate to include that experience. In Kerri Pearce’s case, she focused on her deep community roots, family life, and local expertise before mentioning her career move to real estate. If you’re a new agent without much experience in real estate, this is something you can do in your realtor bio.

13. Aaron Fowler

Why it works: This is one of those new real estate agent bio examples you can emulate if you don’t have those years of experience yet. Aaron Fowler highlights his commitment to making the process as smooth as possible. If you want a similar bio, mention your dedication to providing a high level of service and interest in every aspect of the real estate process to reassure clients that you can handle complex transactions.

14. Carrie McCormick

Why it works: Carrie McCormick’s heading says it all: if you’re looking for a luxury broker in Chicago, she’s your person. Her bio is compelling because it emphasizes her reliability and commitment to premium client service. When you scroll down her page, she also touches on her availability, making her seem more approachable and committed to achieving outstanding results.

15. Nathan Torgerson

Why it works: This is one of the new real estate agent bio samples you can use if you don’t have much experience: start with your love for your community and how long you’ve lived there. Torgerson highlights his deep-rooted connection to Chattanooga and his extensive knowledge of the local market, which builds relatability for potential clients. He demonstrates his credibility in the local scene by mentioning how he frequents local businesses and enjoys Scenic City’s outdoors.

The Close’s Real Estate Agent Bio Generator

Still stumped or looking to save some time? If you want more realtor bio examples for a new agent, try out our exclusive bio generator:

FAQs: Real Estate Agent Bio

How to write a bio as a real estate agent?

How do I introduce myself as a real estate agent?

How do I write about me as a real estate agent?

What is the best description of a realtor?

Bringing It All Together

Creating an effective bio is crucial to your real estate branding and marketing strategy. If you let your personality and authenticity shine through, your real estate agent bio may be the first step toward a new client relationship that could last for years. Any questions about writing your bio? Let us know in the comments!

The post How to Write a Real Estate Agent Bio + 15 Examples & Templates appeared first on The Close.

Download Our Home Buyer Checklist PDF

Key Takeaways

• Use the home buying process checklist as a roadmap to guide your clients, showing off your expertise as a valued, trusted advisor.
• Educate your clients on the importance of working with a skilled buyer’s agent and provide resources to help them make informed decisions at each stage of the journey.
• Communicate proactively with all parties involved, promptly addressing potential issues to ensure a smooth and successful closing.
• Empower your clients to make confident decisions by providing market insights, data, and guidance on crafting competitive offers and negotiating like a pro.
• Cultivate long-term relationships by offering ongoing support, resources, and personalized touch, demonstrating your commitment to their success beyond the closing table.

Step 1: Help Buyers Determine Budget & Get a Loan Prequalification

• Work with your buyers to establish a realistic budget based on their income, expenses, and savings. Share this mortgage calculator they can use to understand how much home they can afford.
• Explain the importance of getting prequalified for a mortgage. Make sure they know the difference between prequalification and preapproval, which is a much more extensive process.
• Provide helpful tips and resources if your clients need to improve their credit scores or save for a down payment.

Encourage them to work with a lender early to improve their credit and save for a down payment.

Step 2: Be the Skilled Real Estate Agent Clients Need

• Showcase your expertise and value as a buyer’s agent by explaining how you’ll guide them through the process, help them find the right home, and negotiate on their behalf. Now is a great time to cover the buyer-brokerage agreement and explain their responsibilities for the commission. 
• When meeting with potential clients, be prepared to discuss your experience, communication style, and references. Offer them tips for selecting the right agent.

Step 3: Assist Buyers in the Home Search

• Work with your buyers to identify their new home must-haves, nice-to-haves, and deal-breakers. Use this handy house hunting checklist to help them prioritize their preferences.
• Set up custom search alerts and schedule property tours to show your clients homes that match their criteria. 
• Offer guidance on evaluating properties and provide insider insights on neighborhoods, transportation, and local amenities.
• Interpret whether it’s a buyer’s or seller’s market, communicate effectively, and apply this information to set yourself apart as a skilled and invaluable buyer’s agent.

Step 4: Guide Clients Through Offers & Negotiations

• Help your buyers determine a fair offer price based on current market conditions, comparable sales, their budget, and the property’s unique features. 
• Encourage competitive bidding based on market conditions in your locale. Explain the components of a strong offer and how to make their bid stand out. 
• Advise clients on contingencies, such as home inspections and appraisals; help them understand the potential risks and benefits of including or waiving them. 
• Negotiate the offer on their behalf to secure the best possible terms and price.

Step 5: Recommend Trusted Professional Home Inspectors

• Provide your clients with a list of reputable home inspectors and explain the importance of a thorough property inspection. Offer to attend the inspection with them and help them interpret the findings.
• If the property requires additional assessments, such as a radon test or a septic inspection, connect your clients with trusted specialists and guide them through the process.

Step 6: Support Clients in Finalizing the Loan

• Check with your buyers’ lender to ensure a smooth and timely loan approval process. 
• Encourage your clients to respond quickly to requests for additional documentation or information.
• Help your clients review and understand the Closing Disclosure or ALTA statement. 
• Ensure clients know the amount of funds they are responsible for to close. 
• Be available to answer questions and provide guidance throughout the financing process.

Step 7: Prepare Buyers for the Final Walkthrough & Closing

• Schedule a final walkthrough of the property with your buyers to make sure agreed-upon repairs are completed, and the home is in the expected condition.
• Review the closing documents with your clients in advance, explaining each item and answering any questions they may have.
• Coordinate with the title company, lender, and seller’s agent to ensure a seamless closing experience.

Step 8: Celebrate Your Buyers’ Success & Provide Ongoing Support

• Congratulate your buyers on their new home and present them with a thoughtful closing gift to show your appreciation for their trust in your services.
• Offer ongoing support and resources to help your clients settle into their new home, like recommending local service providers, sharing home maintenance tips, and staying in touch through regular check-ins and client appreciation events.

Do’s & Don’ts for Buyers Under Contract

As a buyer’s agent, another crucial aspect of your role is educating your buyers, especially first-time home buyers, on the do’s and don’ts of the home buying process checklist after they are contracted to purchase a home. This home purchase checklist contains the most common mistakes buyers make that create messy situations leading up to closing. Sit down with your buyer clients and share these simple do’s and don’ts and the consequences to help them achieve their homeownership goals.

Don’t Buy a Car or New Furniture

It’s an exciting time to dream of living in your new home, with all new furniture, and driving that new car. But until the lender has fully vetted your finances, making big purchases can disrupt your debt-to-income ratio (DTI) and boot you out of qualifying for your home loan. Wait until you close on your home to go shopping.

Don’t Make Large Cash Deposits or Move Money Around

Don’t mislead your lender when they ask about your income, other sources of income, or anything that might affect your ability to qualify for your mortgage loan. Be upfront and honest. Don’t make large cash deposits into your bank account or move finances from one account to another while the lenders still try to vet your financial stability. When in doubt, contact your lender and ask them for advice.

Don’t Apply for Credit or Increase Your Limits

When underwriting is working on verifying your income, DTI, and ability to repay the loan, they take a snapshot of your financial situation. If you apply for additional credit or increase credit limits, you’re just throwing a wrench into their process. You could throw your DTI off, which might disqualify you from the mortgage loan.

Don’t Co-sign for Anyone

It doesn’t matter if it’s your brother or sister, your aunt, your cousin, or your closest friend; don’t co-sign anything when you’re trying to qualify for a mortgage. When you co-sign anything–from a rental application to a car note–you’re putting yourself on the hook for anything that might go wrong, which could kill your dreams of home ownership in a flash. Anyone who needs your creditworthiness to get a new apartment must wait until you close on your home.

Don’t Get Behind on Your Payments

Qualifying for a home loan is no small thing, and it’s typically a longer process than many think. Now is not the time to skip a payment on your existing car note or your light bill. Those payments keep your credit score up. If you miss any of these payments, your credit score could be negatively affected quickly. So, keep those payments on time.

Don’t Change Jobs or Careers 

This is a big one, especially if you’re relocating. If you don’t need to change your job, wait until you close on your new home. You may need to change jobs if you’re moving to another city, but don’t do it in the midst of buying a new home. You can count the last couple of years as income when you change jobs within the same field. But when you change to a new career, you’re starting over. None of your previous income counts toward your new career, which could hurt your chances of getting that house.

Don’t Change Banks

Don’t change banks in the middle of qualifying for a loan. Your lenders don’t want to search for your money after they start working on your loan. If you don’t like your current bank, wait until after you’ve closed on your home to migrate to a different one.

Don’t Close Credit Cards or Max Them Out

Believe it or not, closing a credit card can negatively impact your credit score. In essence, you’re losing some of your credit ceiling when you close a credit card, which, in turn, upsets your DTI ratio. For the same reason, don’t overuse your credit cards. Keep your credit usage to a maximum of 30% of your credit limit, and try to pay it off each month. Anything that negatively impacts your credit score could cost you your dream home. 

Do Save Enough Money for Closing

Make sure you save enough money for closing costs in addition to your down payment. A good amount to save is around 10% of the home’s purchase price. You should get the final amount needed for the closing the week prior. Set that money aside and don’t spend it.

Do Be Cautious When Consolidating Debt

When you start working with a lender, they will coach you to get into a better position to qualify for a mortgage. But don’t go outside of their advice. Ask your lender about debt consolidation before you do anything with an outside company. Sometimes, consolidating can affect your credit score negatively, and that could set your timeline back by months.

Do Wait Until You’re Fully Funded Before Making Big Financial Changes

Wait until you have signed the papers on your new home and it is fully funded, meaning all the closing documents have been signed, the money has been received from the lender and transferred to the buyer, and you receive keys to the property, before making any significant changes in your finances. Disrupting your finances before your loan closes could disqualify you from the loan, and you won’t be able to close on your new home.

Do Hire a Skilled & Professional Real Estate Agent

I know you probably have a cousin or aunt who used to be a real estate agent, but you need someone who will work for you and protect your interests and knows the current local market. For most home buyers, this is the single largest investment, and you want someone who knows the market, is a skilled negotiator, and will work with you to help you achieve your homeownership dreams.

Your Take

As real estate agents, we aim to help our clients achieve their homeownership dreams while ensuring a smooth and successful transaction. By using this comprehensive home buying checklist (click this link to jump back to the top of the article if you forgot to download it!) and sharing these do’s and don’ts, you’ll be well-equipped to guide them through the process confidently. Remember, you are their trusted partner, so be ready to offer your expertise, answer their questions, and celebrate their successes.

Have your buyers messed up their transactions? I’ve seen my fair share of deal-killing mistakes. I could help them work through some, but others were out of my control. But those unfortunate stories have become invaluable for getting my point across to buyers. I would love to read some of your best stories in the comments!

The post The Complete Home Buying Checklist for 2024 (+ PDF) appeared first on The Close.

Bonus: Download this ready-made question sheet for your clients!

Questions to Ask Before the Home Inspection

Choosing a quality home inspector is a vital part of a thorough house hunting checklist. Although homebuyers should interview several candidates, a realtor should have a handful of vetted inspectors to recommend. Make sure to include these questions when choosing the best inspector.

1. What are your credentials?

When hiring an inspector, asking about credentials should be one of your client’s first questions. A home inspector should be licensed and belong to an organization like the International Association of Certified Home Inspectors or the American Society of Home Inspectors. Go to one of these sites and use the search tool to find a licensed inspector, or look up an inspector you already know. Not all states require inspectors to be licensed, but this is not an area where you want to skimp. Credentials provide expertise and reassurance in the inspection report.

If you’re curious about the home inspector licensing process, read more in our guide on how to become a home inspector.

2. Are you bonded and insured?

When a company (or individual) says it is bonded and insured, it has the proper insurance on its business. Therefore, its work in the home or future home is protected. Bonded is like a second layer of protection for professionals working within other people’s property.

While being bonded or carrying insurance isn’t required in all states, an inspector must carry a bond and insurance to protect the client. If anything happens to a homeowner’s personal property during an inspection, the bond and the insurance will protect the homeowner and buyers.

3. How do you stay current with the industry?

The home inspection industry changes along with the construction and real estate industries, so working with a professional who knows the latest news and legal updates is essential. Ask the home inspector how they maintain their industry knowledge. A home inspector who values continuing education shows dedication to their craft and is likelier to be thorough during the inspection process.

4. Can I attend the home inspection?

This is one of the most important questions to ask a home inspector. The potential buyer pays for the inspection, giving them the right to accompany the inspector as they check out the house. Your inspector should expect this question, but some may have specific recommendations, like not having sellers and buyers accompanying them on the roof, attic, or crawlspace.

5. What type of inspection services do you provide?

Some inspectors specialize in specific systems. For example, I used to work with a home inspector who was also a general contractor and a roofer. When he inspected homes, he walked on the roof. Not all inspectors go to this length, so having someone who did that instead of just looking up from the ground was a bonus.

Home inspectors with additional experience in another field and who provide extra services may charge more for their inspections, but the benefits can be worth it. If you or your clients are concerned about parts of the home, ensure your inspector has experience in those areas.

6. How much experience do you have?

There’s nothing wrong with hiring a home inspector with little experience. However, you might have to ask for some references and find out if they have experience in a related field. For instance, previous experience in construction, plumbing, electrical, HVAC, or roofing could mitigate some of their inexperience. A licensed general contractor or builder with a track record who doesn’t have a home inspection license may also be amply qualified to inspect. 

7. How much will the home inspection cost?

Since the homebuyer pays for the inspection, you’ll want to clarify the cost and everything it includes. The average cost of a home inspection across the US is about $300 to $500, depending on individual inspectors, the property type, and the location of your market.

8. Do you reinspect?

Though you and your clients may be eager to finish the inspection and start planning the move, there will be some instances when a home inspector will need to come back for a second inspection. This could happen, for example, if some wood rot needs to be repaired or the seller needs to replace the roof. In other words, a reinspection may be needed after the work is complete if something needs to be fixed before the insurance or the loan can move forward.

Some inspectors will return for a fraction of the original cost or just charge a second full inspection fee. Even though you may not need a reinspection, knowing the expectations in advance is good.

9. What type of report will you deliver?

Some home inspectors will give a detailed report with tons of pictures, which is ideal. Pictures will help you visualize precisely what and where the items are in the home and can help homeowners maintain their homes for years down the line. If the home inspector doesn’t provide photos or diagrams with the report, it might be more difficult to figure out how to tackle any necessary repairs. Ensure you find a home inspector who delivers a detailed written inspection report.

10. How long will it take to receive the inspection report?

When a home is under contract, buyers have limited time to complete the inspection and confirm whether the transaction will move forward or not. If the home inspector drags their feet on delivering the inspection report, that will shorten the time you have to weigh the items in the report and make a final decision. Most inspectors will provide their reports within 24 hours, but discussing this during your interview is a good idea.

11. Will you answer questions after the inspection?

Although knowing what to ask a home inspector before the appointment is helpful, homebuyers and agents often have questions after the inspection. Communicate clearly with potential inspectors about their availability to answer follow-up questions. During your interview, look for someone who is a good communicator and can go over the report in detail, answering all questions in layperson’s terms.

12. Are there any areas you don’t inspect?

Some inspectors have rigid rules about what they do and do not do during an inspection. For example, some inspectors only inspect easily accessible areas and do not move furniture to access certain areas. Additionally, some may not inspect the attic or spaces that require crawling or special gear. In many cases, this isn’t necessary, but it’s ideal to find someone willing to get their hands dirty to understand the home’s condition thoroughly.

Questions to Ask During a Home Inspection

Hopefully, the homebuyers and real estate agent can accompany the inspector as they perform the inspection. This can be a fantastic opportunity to get valuable insight from the inspector on the home’s systems, current condition, and how to properly maintain it. A home inspector can be a wealth of information, so take advantage of your appointment and remember there are no bad questions to ask in a home inspection!

13. I don’t know what that means. Can you clarify?

It’s almost a guarantee that the inspector will point out issues in the home that homebuyers (and sometimes realtors!) aren’t familiar with. These will be some of the best questions to ask during a home inspection because they are golden opportunities to tap into the advanced knowledge of a good home inspector. For example, you can ask the home inspector about the electrical system, the HVAC, or the appliances. If you don’t understand what the inspector is talking about, don’t be afraid to ask for clarification.

14. How’s the condition of the ____?

There are many key home systems that your inspector will go through, and it’s important to learn what they discover about each of them. Even though a professional inspector will likely walk you through these without prompting, be sure to go through each of these listed home features to ask about the status of its condition.

• Roof: Knowing the age and condition of the roof is critical to your home inspection, so be sure to ask for this information. If it eventually needs to be replaced, it is one of the costliest parts of a home to repair.
• HVAC systems: Similar to the roof, get written details about the age, condition, and life expectancy of the HVAC system.
• Electrical system: Ask about the type of wiring in the home, and consider whether it is aluminum or cloth wiring. Ask if the electrical systems or electrical panels will need to be updated and if they’re up to code.
• Plumbing: Ask about the condition of the plumbing and the types of pipes in the home. If it’s an older home, ask if polybutylene pipes are present since they were banned after 1995.
• Foundation or structural issues: Structural issues are usually a deal-breaker for home purchases. Even if there aren’t any major problems, don’t forget to ask if there is anything concerning in the interior or exterior foundation, like cracks or sloping.
• Insulation: Ask how well-insulated the home is, which will require the inspector to check the attic. This is a red flag if the inspector doesn’t check the attic.
• Drainage: Ask the inspector about how water drains from the home and whether any areas could be a concern for pooling.
• Sewage: Ask where the sewage goes and ensure you fully understand this plumbing system. Ask for a grinder pump, septic tank, or gravity pipe for local sewage.

15. Are there any mold concerns?

Mold is a hidden evil that can cause various problems and is not always visible. It could be hiding behind the walls or under flooring. A home inspector must test the air quality to determine if unseen mold is an issue. If the inspector doesn’t test for mold and you have a concern, they should be able to refer you to another professional specializing in mold testing.

16. Any tips on maintaining [insert system]?

Many homebuyers are unfamiliar with the systems in a house. These are vital questions to ask the home inspector during and after an inspection because they can help the owners maintain the home and prevent emergencies for decades. Ask about the maintenance of systems like the following:

• HVAC systems
• Water heater 
• Appliances (refrigerator, dishwasher, washer, dryer, etc.)
• Irrigation systems
• Plumbing
• Electrical

17. Do you see any major red flags?

You’ll pick up plenty of information as you work through the inspection. However, keep this question toward the end of the process. This is when the inspector will have a more thorough understanding of all the home’s systems and the overall condition.

18. Would you buy this house?

This is a fantastic, straightforward question to ask a home inspector. Depending on their answer, you and your clients can get more details on the inspector’s overall confidence in the home’s value. The response to this question must be based on the inspector’s inspection, not aesthetics or home type. Would they buy the home in its current condition?

Questions to Ask After the Home Inspection

Now that you know what to ask for in the home inspection, let’s consider what happens after it’s complete. Here are a few post-inspection questions that both the agent and homebuyers can feel comfortable asking to reassure moving forward with the deal.

19. What are the costliest repairs needed?

This question will be crucial to buyers because it will determine if a property is too risky or expensive. Depending on the buyers’ overall budget, there may be a way to negotiate with the sellers on certain repairs. For realtors, this is one of the most important times to represent your client’s best interests and work with the seller’s agent to reach an agreement that fits both parties.

20. Who do you recommend for repairs?

Since the home inspection industry is related to construction and real estate, a good-quality inspector should have firsthand experience with plenty of contractors and specialists. Plus, many home inspectors own their businesses and know how valuable referrals are to other homebuyers and other business owners. 

21. How can I best maintain my new home?

After purchasing a new home, buyers are typically eager to keep it in pristine condition. While some maintenance may be more straightforward, like mowing the lawn or treating for pests, there are plenty of other maintenance questions you may think of over time. Asking your home inspector about future maintenance tips will help buyers prepare.

For home inspectors or real estate agents, this is a great opportunity to provide value to your leads and clients and potentially generate referrals or repeat business. Consider creating an email or a printable checklist that you can automatically send to your clients. This keeps you top-of-mind and gives your clients an extra level of support that they aren’t likely to forget.

Home Inspection Questions to Expect as a Real Estate Agent

Although real estate agents get accustomed to having home inspections, they aren’t part of most people’s everyday lives. Whether helping a seller or assisting the transaction as a buyer’s agent, it’s important to be well-versed in the basic questions that buyers and sellers may have about the home inspection.

22. Why do I need a home inspection?

Although there are cases when agents make an offer stand out by waiving an inspection, lenders often require it for loan approval. Even for cash buyers, a smart agent will recommend that buyers get one for different reasons.

Sellers can benefit from a pre-listing home inspection by becoming aware of potential issues. This can help agents market the listing more effectively and prevent deals from falling through. 

Buyers should learn as much as possible about the home before proceeding with the purchase process. Even if you’re purchasing new construction, it’s wise to have unbiased, professional eyes on the property. To the untrained eye (most buyers), major issues like foundation problems, termite damage, or a roof past its prime may not stand out.

23. What does a home inspection include?

A home inspection is designed to assess the safety and quality of a home by inspecting all of the accessible areas of the home. Typically, a home inspection covers all the major points in the home, including the following:

• Electrical
• Plumbing
• Heating
• Ventilation
• HVAC systems
• Foundation or structural components
• Roof and exterior conditions
• Insulation
• Windows

24. How does a home inspection affect my loan?

A home inspection may not technically or legally be needed for those paying cash on a property. However, buyers using a mortgage to purchase a home should know that most lenders require an inspection and a home appraisal. Banks want to verify that the house is worth the money they’re providing.

25. What’s the difference between a home inspection and an appraisal?

Many first-time homebuyers ask this question because the processes appear similar to those of casual observers. A trained and licensed home inspector looks for the home’s overall condition, checking the electrical, plumbing, foundation, and roof. On the other hand, an appraiser determines the home’s market value. Although they both inspect the house, they evaluate very different things.

A home inspector typically isn’t looking at the home’s cosmetics, like interior paint, countertops, and cabinets. However, the appraiser will examine those elements to determine how the house compares to others on the market. They may compare the upgrades (or lack thereof) to other homes that have recently sold or are currently on the market to make a valuation of the home.

26. What will the inspector find?

Even in successful home inspections, the home typically has a laundry list of items that must be repaired. However, only some of the items on the home inspector’s report must be addressed as part of the transaction. The inspector should point out the major concerns that are most urgent, and the rest of the items may become a to-do list of projects for the future homeowner. 

Suppose the home inspection uncovers a major problem, like the HVAC being over 16 years old, a major leak in the plumbing, or the roof’s total lack of life expectancy. In that case, the transaction must be negotiated or could fall through. For the seller agent, you’ll have to help clients decide what steps to take to correct the issue. Buyer’s agents should sit down with their clients to discuss whether this house is right for them to purchase.

FAQs

What are three questions you may ask the inspector?

What will a home inspector typically evaluate?

What should I look for during a home inspection?

Bringing It All Together

Home inspections can be stressful for all parties involved. However, when good real estate agents and qualified home inspectors work together, the process can be pain-free and help buyers make wise decisions. This list of questions to ask during a home inspection will help home buyers and real estate agents alike be fully prepared for a successful inspection.

The post 26 Critical Questions to Ask Home Inspectors appeared first on The Close.

Download Your Buyer House Hunting Checklist

What to Include in Your House Hunting Checklist 

As real estate buyers agents, we take what our clients, especially first-time buyers, know about real estate transactions for granted. But the truth is, they probably have a lot more questions than you think. Even if they’ve purchased a home before, they don’t do it every day. 

You are the real estate agent—it’s your job to calm their fears and answer their questions, even the ones they don’t know they have yet. While following your real estate buyer agent checklist, discover as much as possible to prepare your clients for the journey ahead. Then, put that information together with the following house-hunting highlights to coach them. 

Home Exterior

Buyers will probably have a what to look for when buying a house checklist. But when they pull up in front of a listing, they will get a “feel” for the home, and their reasoning will take a backseat. Here’s your chance to show off your expertise. 

• Roof After seeing a few roofs, you can distinguish the older ones from the newer ones. If a roof looks old, point it out and recommend asking the seller the age of the roof. Look for any signs of water or shingle damage. Don’t forget to check the gutters, too.
• Siding Depending on the material, you can check the home’s exterior for several things. If it’s wood, check for any signs of wood rot. If it’s brick, you might check for cracks, which could indicate an issue with the foundation. If anything, you’ll be able to advocate for a home inspection.
• Yard The landscaping is really just window dressing and might be something your clients can add to once they move into their new home. Too often, homebuyers overlook an amazing home based solely on the yard’s condition. Remind them to focus on the most essential things and not stress too much over easy repairs.
• Shed, Patio, Pool Take note of any additional upgrades. Does it have a shed? Is that a priority? What condition is it in? The pool is not a part of the home and will need a separate inspection. Be sure to point out any of these items to your clients.
• Room for Add-ons Do your clients want to add an enclosed patio or a pool in the backyard? Check the property’s dimensions to ensure there is room for any additions they may want. Also, if there’s an HOA, check for restrictions against any upgrades they intend to pursue. 
• Neighborhood & Community Homes don’t live in silos, so ensure your clients are not just looking at the houses but also what’s available in the neighborhood and the community. Do they need to be close to schools because they have several school-aged children? Is there convenient shopping and entertainment nearby? Are they senior citizens looking for a quiet neighborhood to retire? These lifestyle choices can significantly impact which communities will be a good fit and which will not.

Home Interior

When your clients enter a listing, their first impression will come from an emotional place, whether they realize it or not. Many buyers will completely forget about the home search checklist they mapped out during your buyer presentation when they enter a home they fall in love with. It’s your job to ensure all the boxes get checked before any offers are considered.

• Bad smells Pets and cigarettes are the two most common negative smells, but those are not the only things to watch out for. Sellers often try to cover up odors with air fresheners, so be aware. Other smells you might be looking for are musty, mildew smells that might indicate a leak, mold, or something worse. 
• Damage to walls, floors, and ceilings Your buyers will most likely not look up when touring a home. But if there was a leak in the roof, that’s where you would find evidence of it. Look for watermarks on the walls and ceilings, bowing walls, damaged flooring, and uneven floors. Also, asking the sellers about foundation issues might be a good idea if you see cracks in the wall. 
• Unpermitted additions If you discover any surprise additions, it’s imperative you check for permits. Based on your state’s requirements, most additions to the home must have permits filed by the company that did the work. Check with the municipality to ensure all permits are accounted for before proceeding with any offers.
• Appliances Ensure all appliances are working properly. Note each appliance’s age, condition, type, energy efficiency, etc. Use the downloadable checklist to make notes for each appliance during your showings, including:

• Systems Finding out a home has cloth or aluminum wiring after the home inspection can sink a deal faster than a broken elevator in a skyscraper. If it’s possible to find any hidden defects ahead of time, it’s a good idea to come to the showing armed with that information. Try to access a seller’s disclosure for any home your buyers are genuinely interested in before putting together an offer.

Tips to Give Buyers on the Homebuying Journey

When you’re across the table from your buyer clients, go over this homebuyer checklist to head off any pitfalls and let them know you’ve got them covered. Use the downloadable house hunting checklist, which includes this list for them to refer back to throughout the homebuying journey.

1. Do Research First

Tell your buyers to do some research ahead of time. Sit down and decide what things in the home are most important, what would be nice to have, and what are negotiable. Make a list of neighborhoods they’re interested in and what things are most important in the area where they’re looking. Make a priority list. This list will help you, as their agent, narrow down the search parameters and not waste time looking at homes that are not the right fit.

2. Be Realistic

Encourage your clients to decide early on what’s most important as they fill out the priority list. It’s important to manage their expectations. They can be picky about the home they want, but it’s important to point out that they will not find the “perfect” home because that doesn’t exist. Explain the three-sided triangle concept to them—the triangle has three sides: price, features, and location. You can find a home that meets two sides, but you cannot expect to find a home that meets all three criteria of the triangle. That’s a unicorn.

3. Get Finances in Order

Your clients may not realize that the first thing they need to do is shore up their financial situation. Have they saved enough money for a down payment? Have they checked their credit score? Do they have outstanding debts they need to clear up? These questions need answers before they start thinking about a huge purchase like a new home. Direct your clients to the online mortgage calculator to estimate their monthly payments to help them plan ahead.

4. Get Prequalified First

Once your clients have figured out their personal finances, the first thing any new homebuyer will need to do is talk to a lender and get prequalified. Your clients must know how much they can afford before looking for a new home. You don’t want to waste anyone’s time looking at homes out of your client’s price range. And they certainly don’t want to fall in love with a house they can’t afford.

5. Work With an Experienced Real Estate Agent

Working with an agent should be a given, especially for first-time buyers, who need to work with a professional who understands the ins and outs of a real estate transaction. Let buyers know that the process can be complicated and full of legal contracts and deadlines and that you are there to guide them through it. With the new court cases in the headlines and expectations for buyers paying for representation, you should go through the legalities of the buyer-broker agreement.

6. Choose a Moving Timeline

Your buyer clients need to establish a realistic timeline for moving. If they expect to move in the next 30 days, they will have difficulty making that happen. You can help them by giving them some parameters along with how long it takes to find and put in an offer on a home, have the offer accepted, and go through the process to get to the closing table. Don’t assume your clients will know it takes months to close on a new home. Prepare a Questions to Ask When Buying a House Checklist for them beforehand.

7. Know That There Is No Perfect Time to Buy

Your buyers may have concerns about the economy and the housing market. The truth is that there is no perfect time to buy or sell. Let your clients know that the time that works best for them is the best time. Soothe their fears and let them know that real estate has traditionally been an excellent investment, no matter how the economy is doing.

8. Choose a Neighborhood They Love

Your clients should ensure they don’t just shop for a house. The worst thing that could happen is they find a home they love but end up in a neighborhood that doesn’t fit their needs. Encourage your clients to check out the neighborhood they’re considering buying in. Does it have the conveniences and attractions they seek (e.g., schools, restaurants, parks, shopping, entertainment)? They may not find everything they want, but the neighborhood is definitely something to consider when shopping for their home.

9. Don’t Seek Too Much Advice

Your first-time homebuyers (and maybe even some second- or third-timers) will have family, friends, co-workers, and random strangers offer them homebuying advice. As their real estate agent, you should prepare them for the barrage of suggestions they will receive. While some good advice might be offered to your clients, much of it will be fear-mongering, outdated information, or even flat-out wrong. Encourage your buyers to seek counsel from those they trust most, but then be prepared to make their own decisions. After all, they’re the ones who will be living in the house, not their mothers-in-law.

10. Think Long-term

Real estate is an investment that can provide leverage against financial hardship. As a real estate professional, your job is to help your clients understand how real estate investing works. Are your clients just starting and looking for a starter home that they can upgrade after a few years? Or are they looking for a forever home? 

Real estate is a long game, and it takes time to earn your money back, so ensure your clients understand they should stay in their new home for at least three years to earn enough equity to sell at a profit.

Don’t lose those clients you’ve worked so hard to land. The relationship shouldn’t end with the transaction. After all, 80% of referrals come from your past clients. Stay top of mind for the long term with an exceptional closing gift from HomeManager that will remind them of you all year.

11. Make Sure to Get a Home Inspection

No matter what type of home your clients buy, you should insist they invest in a home inspection. The home inspector’s job is to give the buyer a full-spectrum analysis of the home, checking for things they can’t necessarily see on the surface. They will check for foundation, roof, plumbing, and electrical issues to ensure the home is worth the money your clients are offering to pay. In essence, it’s a $600 investment in peace of mind.

12. Don’t Negotiate Yourself Out of a House

Many homebuyers, especially first-time homebuyers, believe you shouldn’t offer the asking price on a home. They have learned from somewhere that you should haggle to get the best price possible. To get your offer to stand out, keep things in perspective for them. If your clients love the home but are hesitant to offer the full asking price, you should guide them to keep what’s most important in mind—that they love the house. And they should understand that if they’re unwilling to pay the full asking price on the home, there’s most likely another buyer out there who is.

13. Factor in Some Repair Costs After Closing

Even a brand-new construction home won’t have everything your client wants when they close. Prepare them to spend a little money on final touches after they move in. There will inevitably be a few things that need to be addressed after closing. It is good to keep these final details in perspective as they get closer to their closing date. Ask them, “Is it important enough to keep you from closing?” If not, encourage them to make it their own once they move in. They can use the home viewing checklist from their home inspection as a plan of action.

14. Be Ready to Make a Decision

When your buyers see a house they love, ensure they’re ready to make an offer. Remind them shopping for a new home is like dating—ask, “Would you keep looking if you found your soulmate? Or would you stop and put a ring on it before someone else finds out how amazing this person is?” ensure they know if they hesitate, they could lose a home they love to another buyer. Don’t let fear keep them from going for it.

15. Bid Competitively

Don’t let your buyers try to outsmart the sellers, especially if they love the house. Long gone are the days when there were several options for buyers. Today, we live in a seller’s market, with tight inventory and high demand, more cash offers than ever, and the sellers have the most control. If your buyer clients love the house, they should make an offer reflecting that. 

16. Keep Contingencies to a Minimum

Try to eliminate as many contingencies as possible before making any offers. Especially when your offer may be competing with others in a bidding war, work through any possible contingencies (financing, inspections, etc.) to draw up an offer that’s as attractive as possible to the sellers. You can even throw in a real estate love letter to the sellers to sweeten the deal and increase your chances of winning the bid. 

17. Manage Expectations: No House Will Ever Be Perfect

The perfect house is a myth. It’s a unicorn. Remind your buyers of the three-sided triangle—there are three sides to the triangle: price, location, and features. Your clients can have two sides of the triangle, but you can never find a house with all three. Think of it this way: If the perfect house is a 10 and doesn’t exist, then if your buyers find a house that is an eight on that same scale, that’s probably going to be the right house for them. No house will have all the features and amenities they want. The questions to ask your clients are: “What are you willing to accept? What are you willing to concede?” 

For example, assume the house your clients are considering has the perfect kitchen but no covered patio. Both were on their list, but one is more important than the other, and one can be added after closing. It’s essential to help your clients consider their priorities when deciding on their home purchase.

Mistakes to Avoid During The Home Search

Let’s get this out of the way: Buyers inadvertently kill their home purchases frequently because they don’t know what not to do. They may have a what to look for when buying a house checklist, but as their agent, you have a responsibility to inform them that making some of these mistakes during the homebuying process will kill their deal and any chance for a subsequent deal for a while. Share these common homebuyer pitfalls with your buyer clients.

Don’t change jobs.

If your clients are applying for a mortgage, it’s imperative they keep their current jobs to qualify for the loan. The loan underwriters will want to verify their income for the last few years and ensure it will be high enough to cover their payments. If they change jobs, the clock on their income starts over, making qualifying for the loan difficult.

Don’t take out any lines of credit or make big purchases.

When the loan underwriting process is underway, any changes to your client’s credit scores will affect their ability to qualify for their loan. That includes taking out large lines of credit or making large purchases, even in cash. While waiting for the final “clear to close” from the mortgage company, encourage them to hold off on doing anything that would set off alarm bells with their credit score.

Don’t get behind on any loans or utility payments.

Of course, you shouldn’t have to address this, but it happens more often than it should. While your clients are house hunting, ensure they stay on top of their bill payments. Late payments affect credit scores more frequently than a default on a credit card balance. And they happen quickly once a payment is late. Late payments on their credit report will drive their credit score down, possibly keeping your clients from qualifying for their home loans.

Ensure you save enough for closing costs.

Many first-time homebuyers underestimate how much money they need to save to close on a house. You might sit down with them and discuss how much it will take for them to buy a home, from the EMD to the home inspection to what they’ll need at the closing table. 

Bringing It All Together

Most of us agree that the fun part of house hunting is the actual touring of homes. But if you want to ensure your clients complete a closing on their dream home, it’s up to you as their agent to guide them through the storm. It’s scary for buyers, even if it’s not their first time. Most of them probably have their questions to ask when buying a house checklist pdf handy before they ever contact you. Remember, we agents do this all the time, but buyers and sellers do it so infrequently that they don’t remember all the details from one transaction to the next. So, take the time to explain everything they need to know during the entire journey.

Did I leave anything out? Got a great strategy you use to keep your clients moving in the right direction? I’d love to hear about it! Drop us a line in the comments!

The post The Ultimate House Hunting Checklist for Your Clients in 2024 appeared first on The Close.

Real Estate Sales Personality Quiz

Click the link to complete the 10-question realtor quiz to determine your unique real estate agent personality. Don’t forget to come back here to learn more about your results and how to use them in your business!

How to Interpret Your Real Estate Personality

Now that you’ve received the results of your “Should I become a real estate agent?” quiz, here are some tips and tricks to make your personality work for you! 

The Creative

Quiz result recap: The creative real estate agent is imaginative and often able to find unique solutions to challenges in their business and for their clients. They can think outside the box and usually stand out with bold and distinctive branding. This type of real estate personality will typically thrive by using content creation marketing strategies where they can use their creativity to reach clients in unique ways, like social media, videos, blogs, and email marketing.

Resources for creative real estate agents:

• Use social media marketing to build your brand and generate leads (start with these social media post ideas)
• Boost your views with a 30-day realtor content creation challenge
• Post real estate memes to add a sense of humor and increase views and engagement

• Record real estate videos to showcase your personality, expertise, and client wins
• Use a real estate website builder to create a custom website where you share listings, brand, and create custom landing pages for social media visitors
• Start a real estate blog on your website with tips for home buying, selling, staging, and local market updates
• Write real estate emails to communicate with leads and clients consistently

How to tap into other personalities outside of The Creative:

The Sales Pro

Quiz result recap: An experienced agent who thrives in the sales-focused elements of real estate is typically assertive, competitive, and results-driven. This type of agent is generally extroverted and knows how to drive conversations, make connections, and build a valuable network of referrals. They often do well with classic real estate marketing techniques like door knocking, cold calling, and hosting or leading events. Still, they can also benefit from digital tools that amplify their reach, like texting and emailing.

Lead generation and marketing resources for sales pros:

• Market more strategically to your sphere of influence to build your network
• Attend and host real estate networking events
• Focus on building robust real estate referral systems
• Make phone calls to new referrals or cold leads with cold calling scripts
• Take to the streets! Use the classic door knocking method to generate leads
• Host unique events to leverage the power of experiential real estate marketing
• Try using unique open house ideas to get more traffic to your listings
• Host client appreciation events to build camaraderie and strengthen your referral generation
• Use real estate email marketing to automate consistent communication with leads, clients, and members of your network
• Send automated and personalized texts with effective text message scripts for agents

How to tap into other personalities outside of The Sales Pro:

The Introvert

Quiz result recap: If your results from the quiz came out as introverted, you have a unique relationship style. Introverted agents prefer connecting in quieter, one-on-one settings instead of large events. They are just as capable of building strong networks, but they do it through more genuine relationship-building with clients and referrals by listening attentively and personalized communication. This type of real estate personality prefers digital communication over face-to-face interactions but also benefits from sending handwritten notes or thoughtful gifts. Introverted agents should focus on building a solid reputation in their community with word-of-mouth or video testimonials.

Marketing resources for introvert agents:

• Ask clients to record or write real estate testimonials for you to share online
• Building multiple real estate referral systems to make it easy for your network to recommend you to others
• Market more consistently to your sphere of influence who already knows and trusts you
• Deliver fun real estate pop-by gifts to build brand loyalty and remind clients to refer others
• Send personable real estate emails that are customized for your leads
• Use a robust real estate CRM to maintain communication with every lead and client you have
• Use these prospecting letter templates to reach potential clients in a more personable way
• Purchase warm leads through a real estate lead generation company

How to tap into other personalities outside of The Introvert:

The Innovator

Quiz result recap: The Innovator is a type of realtor who loves to try new things and test out new technology to grow their business. This agent will likely get a competitive edge because they jump on the latest trends and ideas before other agents. Their marketing strategies usually include digital marketing funnels, social media advertising, and virtual tours to market their listings. Many innovators have a technical way of thinking, so they gravitate toward educational content to nurture leads. They also benefit from utilizing an advanced CRM system to automate many client tasks and maximize their effectiveness.

Marketing ideas and resources for real estate innovators: 

• Keep track of real estate technology trends like AI and negotiations
• Leverage real estate software for a variety of tasks, from lead nurturing to home valuation to managing transactions
• Use predictive analytics to market real estate listings
• Choose one of the best real estate CRMs to automate communications with leads and clients
• Consider real estate marketing tools for additional tasks and marketing methods like video production or graphic design
• Build an IDX real estate website to generate leads and gather data about their behaviors
• Use keyword research and advanced targeting tools to create real estate ads on social media and search engines
• Build your brand by creating data-backed real estate infographics
• Use tools to develop reports for leads and clients, like a comparative market analysis

How to tap into other personalities outside of The Innovator:

Other Questions to Ask When Considering “Should I Become a Realtor?”

Even though there are many pros and cons of being a realtor, it is an incredible career option for many different types of people. Many people think you must be the fast-talking extrovert you see on “Million Dollar Listing” to succeed, but you don’t! In fact, most personality types can find success in real estate with the right strategy.

To help you go beyond the questions in the “Should I become a realtor?” quiz, let’s dig a little further into a few basic questions.

Question 1

What’s your financial situation, and how comfortable are you taking risks?

A) I have plenty of savings, and I enjoy taking risks

B) I have some savings, and I’m willing to take risks to achieve my goals

C) I am hesitant to take risks and don’t have a safety net

D) I need an income FAST! I don’t have any money to risk

What to consider: Being a real estate agent is a challenging but rewarding career choice. Many people are drawn to the idea of having an unlimited income, but we’ve determined that the average real estate agent’s salary is around $90,000. Plus, there is no guarantee that you will generate any income since you’re not a salaried employee. New agents may have a real estate commission split that doesn’t make as much money as expected on their first few sales.

When deciding if real estate is right for you, consider all the risks before embarking on a new career.

Question 2

Do you have an entrepreneurial mindset?

A) I’ve owned a business before and had a successful run with it

B) I’ve always dreamed of owning my own business 

C) I’m unsure if I have the chops to run my own business

D) I would rather work for someone else 

What to consider: Even though your real estate license will hang at a brokerage of your choosing, you are an independent contractor and the boss of your own business. You make your own hours and decisions about marketing and lead generation and have unlimited earning potential. So, if you don’t have an entrepreneurial mindset and don’t think of your business as your own, you’ll fail before you even start. 

Consider your abilities to be a leader and organize a business from top to bottom. You’ll have to make and execute a business plan that aligns with your goals. Not everyone can be an entrepreneur, so think about whether that’s something you’d enjoy. 

Question 3

Do you have the resilience to overcome big obstacles in your business?

A) Absolutely–my middle name is Perseverance!

B) I know it will be a challenge, but I’m willing to work for it

C) I’m nervous about facing obstacles and not sure how I’ll handle it

D) I’d rather take something with a guarantee

What to consider: As a real estate agent, you are responsible for the effort you make to generate an income and build a thriving business. You will inevitably encounter challenges, like selling difficult properties, dealing with demanding clients, or struggling to generate leads. Growth happens by working through challenges, and the most successful real estate agents know how to persevere through obstacles.

FAQs

What personality is best for a real estate agent?

Is it hard to be successful as a realtor?

Should I become a real estate agent?

Bringing It All Together

Knowing your real estate personality will give you a deeper understanding of the best approach to growing your real estate business. If you’re wondering if real estate is right for you, the quizzes here should help you learn how to build a business that suits your natural personality and strengths.

The post Personality Quiz: Should I Become a Real Estate Agent? appeared first on The Close.

Do Agents Really Need a Real Estate Business Plan?

Absolutely. Your real estate agent business plan is your roadmap to success. Without it, you risk losing direction and focus in your real estate career.

A well-crafted business plan helps you:

• Understand your current position in the market
• Set clear and achievable goals
• Create a roadmap for success
• Track your progress and performance
• Make informed decisions and adjustments

Think of your real estate business planning as your GPS, guiding you from your current situation to your desired destination. It serves as your North Star, keeping you focused and on track, even in challenging times. Invest the time to create a solid business plan, and you’ll be well-positioned to succeed in your market and achieve your goals. Your future self will appreciate the effort you put in now.

Write a Real Estate Business Plan in 7 Easy Steps

Before we dive into this section, get our real estate business plan template (click here to go back up to grab it) and work through it as I explain each section. I’ll give you some direction on each element to help you craft your own business plan.

1. Identify Who You Are as a Real Estate Agent

Let’s start with your “why.” Understanding your purpose for choosing real estate is crucial because it is the foundation for your business plan and guides your decision-making process. Defining your mission, vision, and values will help you stay focused and motivated as you navigate your real estate career.

Mission: Your mission statement defines your purpose for choosing real estate. It clearly states what you’re trying to do, the problem you want to solve, and the difference you want to make.

Ex: Wanda Sellfast’s mission is to empower first-time homebuyers in Sunnyvale, California, to achieve their dream of homeownership and build long-term wealth through real estate.

Vision: Your vision statement focuses on the ultimate outcome you want to achieve for your clients and community.

Ex: Wanda Sellfast’s vision is a Sunnyvale, where everyone has the opportunity to own a home and build a stable, secure future, creating a more inclusive and prosperous community for all.

Values: Your core values are the guiding principles that shape your behavior, decisions, and interactions with clients and colleagues.

Clearly defining your mission, vision, and values lays the foundation for a strong and purposeful real estate business that will help you positively impact your clients’ lives and your community.

2. Analyze Your Real Estate Market

As a real estate pro, you must deeply understand your local market. This knowledge includes knowing key metrics such as average days on market, average price points, common home styles and sizes, and demographic trends. When someone asks about the market, you should be able to confidently roll those numbers off your tongue without hesitation.

To quickly become the local expert, choosing specific farm areas to focus on is crucial. Concentrate your marketing efforts and build your local knowledge in a handful of communities and neighborhoods.

Some places to do research include:

• Your local MLS: Check your hot sheet daily
• Zillow: Check out the Premier Agents who show up in your neighborhood
• Social media: Who is targeting their posts to your area?
• Direct mail: Check your mailbox for flyers and postcards
• Drive by: Drive through your farm areas to see who has signs in yards

Once you’ve identified your target areas, start conducting comparative market analyses (CMAs) to familiarize yourself with the properties and trends in those neighborhoods. That way, you’ll provide accurate insights to your clients and make informed decisions in your business.

Remember to research your competition. Understand what other agents working in the same area are doing, who they’re targeting, and identify any gaps in their services. This understanding will help you differentiate yourself from your competition and better serve your clients’ needs. In our real estate business planning template, I ask you to examine and record:

• Trends: Track key metrics, such as days on market and average sold prices, to stay informed about your specific market.
• Market opportunities: Identify situations where there are more buyers and sellers (or vice versa) in the marketplace so you can better advise your clients and find opportunities for them and your business.
• Market saturation: Recognize areas where there may be an oversupply of certain property types or price points, allowing you to adjust your strategy accordingly.
• Local competition: Analyze your competitors’ strengths, weaknesses, and gaps in their services to identify opportunities for differentiation and possibilities to create a more meaningful impact.

Remember, real estate is hyper-local. While national and state news can provide some context, your primary focus should be on specific needs and trends within your target areas and the clients you want to serve. By thoroughly analyzing your local real estate market, you’ll be well-equipped to make informed decisions, provide valuable insights to your clients, and ultimately build a successful and thriving business.

3. Identify Your Ideal Client

When creating your real estate business plan, it’s crucial to identify your ideal client. You can’t be everything to everyone, no matter how much you think you should. And trust me, you certainly don’t want to work with every single person who needs real estate advice. By focusing on your ideal client, you’ll create a targeted marketing message that effectively attracts the right people to your business—those you want to work with. 

Think of your target market as a broad group of people who might be interested in your services, while your ideal client is a specific person you are best suited to work with within that group. To create a detailed profile of your ideal client, ask yourself questions like:

• What age range do they fall into?
• What’s their family situation?
• What’s their income level and profession?
• What are their hobbies and interests?
• What motivates them to buy or sell a home?
• What are their biggest fears or concerns about the real estate process?

Answering these questions will help you create a clear picture of your ideal client, making it easier to tailor your marketing messages and services to meet their needs. Consider using this ideal client worksheet, which guides you through the process of creating a detailed client avatar. This will ensure you don’t miss any important aspects of their profile, and you can refer back to it as you develop your marketing plan.

By incorporating your ideal client into your overall business plan, you’ll be better equipped to make informed decisions about your marketing efforts, service offerings, and growth strategies. This clarity will help you build stronger relationships with your clients, stand out from the competition, and ultimately achieve your real estate business goals.

4. Conduct a SWOT Analysis

If you want to crush it in this business, you’ve got to think like an entrepreneur. One of the best tools in your arsenal is a SWOT analysis. It sounds ominous, but don’t worry, it’s actually pretty simple. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s all about taking a good, hard look at yourself and your business.

By conducting a SWOT analysis as part of your real estate business plan, you’ll have a clear picture of your current situation and your future goals. And don’t just do it once and forget about it—review and update it regularly to stay on top of your game.

5. Establish Your SMART Goals

If you want to make it big in real estate, setting goals is an absolute must. But not just any goals—I’m talking about SMART goals. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. It’s like a recipe for success, ensuring your goals are clear, realistic, and have a deadline.

Your SMART goals are an integral part of your overall business plan for real estate. They should be stepping stones to help you achieve your long-term vision and mission. So, analyze your SWOT analysis, ideal client, and market, and craft goals that will help you dominate your niche.

Example Smart Goal: Close 10 transactions in the next quarter.

Specific

Make sure to provide as many details as possible behind your goals. Don’t just say, “I want to sell more houses.” That’s too vague. In the example above, the goal is specific: “close 10 transactions.”

Measure

If you can’t measure your progress, how will you know if you’re crushing it or falling behind? Ensure your goals have numbers attached to track your success or see where you need to focus more energy. “Close 10 transactions” has a specific number, so you have a way to measure your progress.

Achievable

I know you’ve got big dreams for your real estate business, but Rome wasn’t built in a day. Set goals that stretch you beyond your comfort zone but are still achievable. This way, you’ll gain confidence, build momentum, and push yourself to new heights. Closing 10 transactions in a quarter is a lofty goal, but it’s still achievable. Your goals should stretch you but still be within your reach.

Relevant

Relevant goals are the ones that actually move the needle for your business. Sure, becoming the next TikTok sensation might be a lot of fun, but unless TikTok generates most of your clients, it won’t help you close more deals. Your goals should be laser-focused on the activities and milestones that will help you grow your real estate career. In the example above, the goal is specifically related to real estate. 

Time-bound

Deadlines are your friend. Without a timeline, your goals are just wishes. Give yourself a precise end date and work backward to create a plan of action. In the example, the deadline for achieving the goal is the end of the current quarter. If you don’t achieve the goal, you can evaluate where the shortfall was and reset for the next quarter.

“Setting goals is the first step in turning the invisible into the visible.”

Tony Robbins

Remember, just like your SWOT analysis, your goals aren’t set in stone. Review and adjust them regularly to stay on track and adapt to business and market changes.

6. Create Your Financial Plan

Financial planning might not be your idea of a good time, but this is where your real estate business plan really comes together. Thanks to all the research and strategizing you’ve done, most of the heavy lifting is already done. Now, it’s just a matter of plugging in the numbers and ensuring everything adds up.

In this real estate business plan template section, you’ll want to account for all your operating expenses. That means everything from your marketing budget to your lead generation costs. Don’t forget about the little things (like printer ink, file folders, thank you cards, etc.)—they might seem small, but they can add up quickly. Some typical expenses to consider include:

• Marketing and advertising (business cards, website, social media ads)
• Lead generation (online leads, referral fees, networking events)
• Office supplies and equipment (computer, printer, software subscriptions)
• Transportation (gas, car maintenance, parking)
• Professional development (training, courses, conferences)
• Dues and memberships (MLS fees, association dues)
• Insurance (errors and omissions, general liability)
• Taxes and licenses (business licenses, self-employment taxes)

Once you’ve figured out your expenses, it’s time to reverse-engineer the numbers and determine how many deals you need to close each month to cover your costs. If you’re just starting out and don’t have a track record to go off of, no worries! This planning period allows you to set a budget and create a roadmap for success.

Pro tip: Keep your personal and business finances separate. Never dip into your personal cash for business expenses. Not only will it make tax time a nightmare, but it’s way too easy to blow your budget without even realizing it.

If you’re evaluating your starting assets and realizing they don’t quite match your startup costs, don’t panic. This new insight is just a sign that you must return to the drawing board and tweak your strategy until the numbers line up. It might take some trial and error, but getting your financial plan right from the start is worth it.

7. Track Your Progress & Adjust as Needed

You’ve worked hard and created a killer real estate business plan, and you’re ready to take on the world. But remember, your business plan isn’t a one-and-done deal. It’s a living, breathing document that needs to evolve as your business grows and changes. That’s why it’s so important to track your progress and make adjustments along the way. 

Here are a few key things to keep in mind:

• Set regular check-ins: Schedule dedicated time to review your progress and see how you’re doing against your goals, whether weekly, monthly, or quarterly.
• Keep an eye on your KPIs: Your key performance indicators (KPIs) are the metrics that matter most to your business. Things like lead generation, conversion rates, and average sales price can give you a clear picture of your performance.
• Celebrate your wins: When you hit a milestone or crush a goal, take a moment to celebrate. Acknowledging your successes will keep you motivated and energized.
• Don’t be afraid to pivot: If something isn’t working, change course. Your real estate business plan should be flexible enough to accommodate new opportunities and shifting market conditions.
• Stay accountable: Find an accountability partner, join a mastermind group, or work with a coach to help you stay on track and overcome obstacles.

“It’s the small wins on the long journey that we need in order to keep our confidence, joy, and motivation alive.”

Brendon Burchard

Remember, your real estate business plan is your roadmap to success. But even the best-laid plans need to be adjusted from time to time. By tracking your progress, staying flexible, and keeping your eye on the prize, you’ll be well on your way to building the real estate business of your dreams.

FAQs

How do I start a real estate business plan?

Is starting a real estate business profitable?

How do I jump-start my real estate business?

How do I organize my real estate business?

Bringing It All Together

Now, you have a step-by-step guide to creating a real estate business plan that will take your career to the next level. Taking the extra time to map your path to success is an essential step in helping you achieve your goals. Spend the extra time—it’s worth it. Now, it’s time to do the work and make it happen. You’ve got this!

Have you created your real estate business plan? Did I miss any crucial steps? Let me know in the comments!

The post 7 Steps to Writing a Real Estate Business Plan (+ Template) appeared first on The Close.