Special offer

First Time Buyer Counseling

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

I have done alot of work with first time buyers (more so back in Boston) and always require a first meeting to discuss a variety of issues before we agree to start working together. This gives me a chance to better understand the buyer's needs and requirements, answer their questions, and share information about myself, the process and how we might work together.

Here is a quick overview of what I do (this is, of course, customized somewhat to the particular buyer and the situation and timing). I generally take no less than a hour to do this and often 2 hours. This is NOT a complete list as that would take a post that would be longer than anyone really wants to read. :)  NOTE: I have done this by phone as well when working with relocation buyers from other areas.

1. Overview from the buyer of the personal situation - why buy now, what thinking has been done so far, any actual looking at homes, any relationship with another agent (if so, then we do not proceed unless I can verify there is no signed agreement and that the buyers have communicated in writing to that agent that they will no longer be working with them), when do they want to get settled, rental situation and termination of lease (timing). I do not work with buyers who are using mutliple agents to help them find a home.

2. I Ask for specific questions the buyer wants answered and make a list (e.g., how are agents paid, who pays commission, who makes the offer and when, homeownership issues, taxes, etc.)

3. Discusson of their financial situation - downpayment (or gift), any discussion with mortgage lender and if so where are they in the pre-approval process? Brief overview of types of loans, reiterate importance of being pre-approved and reasons for doing so, discuss "their" budget and lifestyle vs. what the bank says they can afford, etc.

4. Discussion of what they are looking for (or think they want at that point). This often takes alot of time and becomes a conversation during the process as they see properties. I give them a form I have developed to help them focus on the things that are important to them in their search (I ask for a copy of this when done, usually a few days later).

5. I provide an overview of who I am, my experience, how I work and communicate, things I expect from them as well as what they can expect from me (honesty, loyalty, communication, etc.). We discuss open houses and how they can use them (if they are working with me we discuss how to let agents know I am representing them); we also discuss FSBOs and how I can help them with those properties as well as the different scenarios that can arise with unrepresented sellers. I also make clear what I can and cannot provide (e.g., legal guidance, home inspection expertise, financial guidance other than very general questions) and what resources are available to them on these matters.

6. Review Buyer Agency and what this means for them; answer questions about this. Provide doc for them to read and review. If they are ready to sign, great, but I let them decide what they are comfortable with, usually after we first start looking at homes.

7. Provide an overview of the purchase process from start to finish, with a schematic. I review some forms (also provide a list of these) but have found that going over all forms in the beginning is overkill and saturates the brain - I prefer to review the appropriate forms in detail as we get to the critical steps. Answer all questions.

8. Discuss potential problem areas or decision points that can occur and give examples (e.g., negotiating an offer and what the seller can do; inspections; due diligence period). Knowing what to expect as well as anticipating problems is discussed with some examples. I also talk with them about the emotional/psychological aspects of buying and the kinds of feelings that are likely to have along the way. I usually try to fiond out how they are feeling so we can talk about that too.

9. Answer any specific questions they have that have not been answered along the way.

10. Discuss next steps - are they ready to look, are they ready to commit, how I can help them now vs. later, how to use the MLS listings I can send them, etc. Share contact information and what each should expect of the other (who calls who and when, etc.).

Well, that's it in a nutshell. Not a lot of detail but hopefully some information that may be helpful to readers (agents as well as buyers). Feel free to ask me any questions, and please share YOUR thoughts too!

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Comments (2)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert
Sounds like the one to two hours you put into this could save you a whole lot more time later, and also less of a chance for miss understandings.
Oct 17, 2006 02:37 PM
Anonymous
Titus Agee
Jeff, that is very helpful to see all laid out. Thanks
Dec 04, 2006 01:44 AM
#2