THERE'S A LOT MORE INVOLVED THAN JUST "MAKE THE APPOINTMENT",  Chapter 1 of 8

* * * *  HARD CORE REAL ESTATE TALK * * * *

LENN IS PAID FOR WHAT SHE KNOWS, NOT FOR WHAT SHE DOES!

Reference is made to the recent posts of Gary Bolen and comments thereto by Bob Stewart about agents getting the message out describing [justifying] the services provided to home buyers.  Much has been written lately attempting to trivialize the buyer's agents' role in the real estate transaction.  Comments such as "anyone can make an appointment" to "a lawyer can write a contract" portray a perception that agents perform a series of simplistic tasks that can easily be performed by a secretary, an attorney or the purchaser. 

Specifically, Bob Stewart suggested that we write about the duties outlined in my post of November 11, 2006:

1.  Make the appointment
2.  Show the home
3.  Provide the required disclosures
4.  Write the contract and escrow
5.  Manage financing for the buyer
6.  Manage inspections
7.  Manage the title work
8.  Schedule the settlement and manage settlement services

Following is a brief outline of a series of posts describing the services performed by a buyer's agent when a buyer/client is interested in buying a home that is not listed for sale by a licensed real estate broker. 

The model used would be a home entered in the MLS by an owner without using the services of a listing broker either through the many limited services brokers who use one of the many "Fee For Services" models or "Limited Services Agreement" gaining popularity in some areas.  The fee for these services range from about $300 to upwards of $3,900.  These listing agreements do not include any co-op to a buyer's agent.  Many of these listing contracts are "Exclusive Agency" contracts which provide for limited services of the broker and provide that, if the owner produces a buyer, there is no further fee to the listing broker.

BASIC MLS ONLY LISTING SERVICES
Review of the Listing Agreement with the owner/seller.
Collect the listing fee.
Providing the owner/seller with the required local and federal disclosure forms.
Enter the house for sale in the local MLS.
Providing the owner/seller with signage and lockbox where appropriate.
Entry of the SOLD information in the MLS.

Additional services that may be provided for additional fees may include: 
CMA or other pricing information.
Brochure forms or brochures
Additional signage, Open House, directional signs, etc.
Contract forms

The Exclusive Agency listing agreement is used because the listing broker is paid in advance before the home for sale is listed.  While the co-op offered is entered in the MLS, the fee comes directly from the seller at settlement and not through the listing broker.  Other forms of listing agreements for FSBO owner/sellers may be used in other areas.  The "Exclusive Agency" or "Limited Service Agreement" is used by many brokers in my area.  In either case, the "SHOWING INSTRUCTIONS" will state "All communication is with the owner/seller.  Do not contact Listing Agent about this listing."

STEP ONE IN SELLING A FSBO - MAKING AN APPOINTMENT TO SHOW

FIRST, IS THE BUYER QUALIFIED TO BUY THAT FSBO?
In reality, there are many steps in Making An Appointment To Show because prior to showing a home for sale, whether the seller is represented by their own broker or a FSBO, the buyer has been interviewed and pre-qualified by the buyer's agent.  Few agents will enter a FSBO home or any home with a buyer who is not qualified for the price range and is believed to have the ability to buy.  Contrast that very important fact to the FSBO who shows their home to prospective home buyers who are not represented by an agent and the FSBO has no qualifying information.  The biggest complaint that I hear from FSBO sellers is people who come to see their house without an agent, try to buy the home but turn out to be unqualified due to credit or income issues.  At that point, they are ready to list with a broker.  Or, they are calling us to get the limited service of qualifying buyers.  Since we have no relationship with the buyer or seller, we can't provide qualifying services for FSBOs. 

The FSBO listings in our MLS will sometimes have a key box, in which case we can call and if there is no answer, show the home.  If there is no key box and that's often the case with FSBOs, a telephone appointment must be made.  Often the showings are limited to evening hours or Saturday or Sunday.  Evening hours are difficult because buyers work and sellers work and showings in the dark are difficult.  Most showings are on the weekends
which is fine.  It is not unusual for a showing to take repeated phone calls to the seller, during which time, the buyer is on call waiting for the appointment.  Further, if you arrive at the house and there is only a minor child present, the agent and buyer must reschedule.  Because of the necessity of risk reduction, many agents, this one included, do not enter a home with only a minor child present.  Either the house is empty or there is an adult present at the showing.  Finally, if the house contains a loose dog, you cannot enter by a key box.  Most listing agents would have counseled a seller to contain dogs when showing a home.  FSBOs often leave
loose dogs in a house.  If there is a loose dog, the appointment must be rescheduled when the owner/seller is present. 

The first step when showing a FSBO is providing the owner with Agency Disclosure.  Since we represent the buyer, our disclosure to the seller clearly states that we are the agent of the Buyer.  No information will be provided to the seller about the buyer.  On the other hand, any information that the seller gives us about the property, their need to sell, etc. will be relayed to our buyer.  We have no duty of confidentiality to the FSBO.  At the same time, we will give the seller no information about the buyer.

We will deal with the seller honestly and truthfully.

We will advocate for our buyer/client.