Having a detailed consultation with potential buyer clients helps prevent unexpected surprises
By Scott Mason
In the highly competitive arena of residential real estate, the importance of buyer consultations cannot be overstated.
These preliminary meetings serve as the foundation for a successful transaction, aligning buyers’ needs and expectations with agents’ expertise and market acumen. At their core, buyer’s consultations are not just about discussing budget and wish list items; they are an opportunity for real estate professionals to showcase their value, build trust and establish rapport with potential clients.
“Clients need to be fully informed of the whole process—the pros and cons, things to watch out for, values—anything that can affect their enjoyment of their new home,” says Gary Rogers, CRS, broker/owner of RE/MAX on the Charles in Waltham, Massachusetts.
Through these consultations, agents can gain insights into the buyer’s specific needs, preferences and motivations, enabling them to tailor their search and negotiation strategies effectively. They also provide a platform for educating buyers on the complexities of the market, the buying process and the nuances of financing options, thereby empowering clients to make informed decisions.
“Buyer consultations set the stage for the rest of the relationship with the potential client,” says Deb Greene, CRS, a real estate agent with Coldwell Banker Realty in Wayzata, Minnesota. “I want them to be the smartest buyers on Earth, and that can’t happen without a full buyer consultation.”
Christopher Tenggren, CRS, designated managing broker at Weichert REALTORS® Signature Professionals in Rochelle, Illinois, jokes that he “likes to kill the monsters when they’re young,” meaning if potential issues and information are communicated clearly up front in pre-consultation, it makes the job of a real estate buyer’s agent that much easier.
In an era where personalized service and expertise are highly valued, the ability to conduct thorough and insightful buyer consultations, in advance of touring properties, can set an agent apart from the competition, fostering long-term relationships and driving success. For agents aiming to excel in residential real estate, mastering the art of the buyer’s consultation is not just beneficial—it’s essential.
What to discuss?
A buyer’s agent needs to be as thorough as possible when meeting with potential buyer clients.
Melanie McLane, CRS, owner of Jackson Real Estate in Jersey Shore, Pennsylvania, says that she has a series of go-to queries to get a better understanding of a buyer’s current situation. “I will routinely ask potential buyers a series of questions: How long have you been looking? Have you talked to a lender? Who is your lender? Is someone else involved in the homebuying decision? What’s your ideal time frame to buy a home?” she says. Having this information before you even step foot onto a potential property saves real estate agents from any unwelcome surprises.
Tenggren says he will also present all forms a buyer may see throughout the homebuying process and discuss the process and ethics of a transaction. “It’s critical to set the expectations before you go out looking for homes,” he says. “This ensures that every conversation isn’t like a fire drill.”
Greene says she has a buyer consultation “book” that she will bring to that initial discovery meeting to help set expectations. The first page, she says, details how she and a potential client would work together if they did indeed choose to retain her services. This includes reiterating that while she is their only agent, that doesn’t mean they are her only client. “I work with them based on their need to get into housing,” Greene says. “So, if they have a six-month timeline, we’ll chat occasionally, but I’m not going to talk to them every day.”
Buyer consultations also offer agents the opportunity to determine how serious a potential client is about purchasing a home. “You can quickly figure out if people are serious about buying a house or if they’re tire kickers,” Rogers says. “It’s still common for an agent to show somebody 20 houses, and the client doesn’t make any serious offers, or any offer at all. It’s probably because we haven’t done our jobs in educating them.” These consultations help build a business relationship and create trust both ways, letting agents feel like a client is serious and well-informed and can eventually make a better home purchase.
Brokerage agreements
Agents may find that a buyer consultation is the best time to explain and present an exclusive buyer’s brokerage agreement, and to set expectations, ensuring that clients will not waste their time by jumping ship mid-transaction.
“I don’t put a buyer in my backseat to show them houses without an exclusive buyer’s brokerage agreement,” Tenggren says. “I try never to do it any other way.”
Tenggren takes an alternate approach to these agreements, which helps establish trust. “I don’t ever want a client to sign something under duress,” he says. “If they want to have the document reviewed and/or approved by their attorney, they can. If they want to take it home, read it and bring it back signed, that’s never a problem.”
Agents may encounter objections from buyers unwilling to sign, and they must be prepared to explain why these exclusivity agreements exist. “I would say, ‘I’m really sorry, but that’s not the way this works,’” McLane says. “Agents have to have a written contract. I have to be protected because I’m going to start investing a lot of time, energy and money to help the client.”
The value proposition
Perhaps the most important benefit of conducting buyer’s consultations is that they allow residential real estate agents to present their value proposition—something that will become even more important as the real estate industry navigates likely changes to how business is conducted.
“All agents should be prepared to talk about their value,” McLane says. “Explain to potential clients what you’re doing, especially the things that they don’t even realize you’re doing for them.”
Doing this results in buyers who are well-informed and satisfied. “I recently spoke to a referred buyer, and he commented on how detailed our consultation was,” Greene says. “I told him, ‘That’s how I can best serve you.’ And he appreciated that. It creates loyalty because they know I’m not taking a shortcut.”
All of our experts agreed that agents must have these conversations with buyers. “With the market over the last four or five years, there’s been no consumer demand to have a consultation,” Rogers says. “But frankly, there’s been a need. As professionals, we need to have guidelines and be comfortable pushing your office policy to require agents to meet buyers before showing houses.”
Strengthen your bond with buyers with The Buyer’s Advocate course, available at www.CRS.com/education.
Photo: Getty Images/DrAfter123
