Buyer & Seller Resources

THE BUYING AND SELLING PROCESS 


The buying process

Determine goal or outcome: A good decision is the result of thoughtful planning. A buyer should establish certain criteria including: affordable price range; style and size of home; location; lot size; school locations and access to facilities such as shopping, medical care and businesses. Real estate brokers can offer assistance in these areas.

See a mortgage lender: Many buyers find it is an advantage to be pre-qualified or pre-approved for a mortgage before beginning to shop. The qualifying process includes evaluation of available income and long term monthly expenses and past credit history to determine what type of mortgage financing is available to a prospective purchaser. A credit report is utilized by the lender to verify that the loan applicant’s credit is in good standing or identify problems that need to be addressed.

Establish brokerage relationship: When you have decided what type of broker relationship and services meets your needs, and after having interviewed enough brokers to feel comfortable with your decision, it’s time to finalize your decision with the broker you have chosen to work with. Your broker may ask you to sign an exclusive right to buy agreement to formalize the brokerage relationship. All Colorado approved forms advise parties to seek legal counsel if you are not sure about the meaning of consequences of the agreement. If you choose not to sign the agreement, the relationship between you and your broker will be "transaction-brokerage” by default according to Colorado License Law.
Preview properties: Once you have established a relationship with a real estate professional, discuss what types of properties and neighborhoods might meet your needs and price range. Plan on previewing several properties that you and your broker have selected as potential matches to your criteria.

Narrow the list: You will probably want to revisit those properties that seem to meet your needs. A closer look will likely bring more questions to mind that the owner or your broker can help answer for you. When you decide that you have found a property you would like to own that meets all of your criteria, it’s time to talk to your broker about making an offer. This may also be the time to consider what kinds of special assistance and information you may need from other professionals such as home inspectors, engineers or attorneys.

Make an offer:
Contract: An offer for the purchase of real estate must be in writing to be valid. The Florida Real Estate Commission requires that every licensee use a contract form approved by the Real Estate Commission unless the contract is drawn by the seller or buyer or the attorney for the buyer or seller.

Contingencies: Since every offer to buy is unique, the Real Estate Commission approved contract allows for you and your licensed broker to make the contract contingent on certain things such as approval of financing, a satisfactory home inspection or the sale of your current residence. It is important to include those contingency items in your contract to eliminate misunderstandings about what circumstances will allow you to complete your end of the bargain.

Time is of the essence: Your offer allows you to make decisions regarding when to close on your new property and when you can take possession and what remedies are available if the contract dates are not met.

Acceptance, Rejection & Counteroffer: Your contract should give the seller a specific period of time to consider the offer. If your deadline is not met you have no obligation to continue with the purchase. If your offer is rejected either by notification from the seller or by no response you can decide whether to amend your offer or consider other property. If the seller wishes, he/she may decide to change the terms of the offer and give you the opportunity to consider the terms as modified. At this point your original offer is rejected and you can accept or decline the counteroffer.

See Your Lender: If your offer to purchase is accepted, the next step is to contact your lender. If you are pre-approved or pre-qualified, you are several steps ahead. If not you should make an appointment to make application for your new loan as soon as possible. Your lender will want a copy of the contract signed by you and the seller. In most cases the lender will arrange for an appraisal of the property to ensure that the value of the property is sufficient to allow a loan for you and your new home. During the next few weeks the loan underwriting process will continue until the lender makes its final decision to grant or deny your loan. In the meantime, they may request more documentation or clarification of your credit worthiness or more information about the property itself. Once the loan is approved the closing date can be set. At closing, the final paper work is reviewed and signed, and the funds change hands. After closing you can take possession of your new home subject to the terms of your contract.

The selling Process> There’s a process for getting registered for kindergarten.

> There’s a process to get accepted into college.

> There’s a process for changing the oil in your vehicle.

> There’s a process for paying taxes.

> There’s a process for having a baby.

Successful selling has a process, too. Think of the selling process as a GPS for your sales interaction. GPS will get you to where you want to go, as long as the unit knows your destination preference. A well-conceived selling process will also get you where you want to go with your prospect. Although there are always exceptions to rules, a step-wise progression consisting of doing the right things and the right times will yield big results in sales.

A PRIMER: THE SELLING PROCESS FOR SUCCESSFUL BUSINESS-TO-CONSUMER SELLING

1. Find your prospect.

If you work in a retail store or have leads provided to you, you don’t have to find a prospect to sell to. But otherwise, one of the keys to selling success is to find individuals who are open to spending time with you discussing their needs for your products or services.

Door-to-door selling in a residential neighborhood is a process of finding someone who won’t slam the door on your face and will answer your questions (at minimum) or indicate they have a need for your product (better yet!). Selling insurance or real estate or other products or services that aren’t sold at retail or door-to-door (D2D) require strong prospecting skills (or a nice marketing budget) in order to have enough people to talk to about your product. Selling on the phone requires a phone list of viable prospects or current customers to upsell.

Once you have your prospect, it’s time to find out more about them.

2.Investigate Needs and Desires

Purchases are not random acts. Consumers buy to fulfill needs. Clients are complex and marvelous beings, and the better we understand them and their needs, the better we can position our products and services, and our company, to fulfill those needs. This leads to the prospect or shopper to become a customer or a client.

The depth with which we understand the prospect’s needs will help determine our success with our prospects. Merely a superficial understanding will yield less results than an understanding of depth and an appreciation of nuance and detail in the customer’s thinking. Therefore, we ask questions to uncover needs, and we discuss those needs and desires to develop a rich and thorough understanding of them, even if we have limited time with our shopper/prospect.

Most sales training will tell you that identifying and understanding consumers’ needs and desires is one of the keys to a successful sales career. But many salespeople don’t spend enough time on this step of the selling process because they’re so anxious to talk about their product or service, or show the shopper something. Ask good good sales questions. Then ask more questions. Investigate.

3. The Presentation

Now is the time for the focus to be on the product or service, the salesperson, or the salesperson’s company. This is where we match up our product to the shopper/prospect’s needs.

We explain the features of our product. "Features” are details and facts about the product, ideally with the individual consumers’ needs in mind. A feature might be any of the following: It’s available in 17 colors; you can get an extended warranty; It’s available in large or small; It is manufactured in the USA; we custom design all our products for our customers; It’s 1.1 carat; It has side airbags; etc.

We also present the benefits of the product or service. "Benefits” are what the features will do for the prospect/shopper. This is where value enters the mix.

A benefit could be any of the following: So you can match the color of the widget to the color of your decor; so you can be protected over the next three years should anything happen to your new computer, therefore saving you time and money and frustration; so you’re helping to keep Americans working and not frustrated with products that are made overseas with less quality craftsmanship; so the item is the perfect size for your needs rather than having to buy a widget from stock sizes that might not be right for you; so your fiance will have a diamond that is over that important 1 carat threshold that so many engaged women hope for so your fiance will be thrilled; so your not only protected with the front airbags in a crash, but also protection to the side can help minimize head injury and even death during a crash.

4. Closing the Sale

Everything we’ve accomplished so far is like the plans for a wedding: the proposal, the shower, the selection of the wedding date, arranging for the participants in the ceremony, acquiring a location, buying the cake and flowers and scheduling the musicians, creating and mailing invitations, selecting the attire, purchasing the rings, preparing the vows, etc.

But closing the sale is like the wedding ceremony itself. It is what all the previous steps have led you. Without the wedding ceremony, all the wedding preparation is a waste of time. Without closing the sale, all the previous sales steps have also been a waste of time.

Closing the sale first consists of a trial close (or test close) that is designed to verify that you have been on the right track with your prospect/shopper. An example of a trial close question is "Are we on the right track?” Another is "Today you were hoping to find a brown widget that would let you do this and that. Do you think this brown widget would let you do this and that?” If the shopper/prospect says "yes,” you’ve successfully completed the trial close. If the response is "no,” you’ve got to return to the "identifying needs and desires” or "the presentation” step of the selling process.

There are many different methods for closing the sale, the simplest being a direct question: "Do you want to go ahead and purchase it?” A salesperson can give alternates: "Do you want to go with the Hitachi or the Sony?” or assume the purchase: "When do you want this delivered?”

Closing the sales is absent from many salesperson’s repertoire in the B2C selling sector, and therefore their sales success is limited.

5. Handling Objections

An "objection” is a stated reason why the customer won’t or can’t purchase from you.

Many of the objections a salesperson hears from a prospect are automatic responses that are not valid. Consumers have developed these responses over many years of dealing with salespeople or seeing others (parents, for example) deal with salespeople. Many other objections are outright fabrications. The remaining objections are valid objections. It’s the salesperson’s job to find out into which of these categories the objection fits.

Once that determination is made, the salesperson’s job is to navigate through these objections in an attempt to arrive at a closed sales transaction despite the objection. The salesperson does this by asking questions, providing new information or reviewing information already presented, investigating the objections, understanding the objections, exploring the objection with the prospect, and asking the prospect to buy again.

I’ve developed the 3A method for overcoming objections. It can be used as a template for a great many sales situations to help the salesperson successfully handle objections and move on to the sales transaction.

In our wedding analogy, think of the objection as an absent priest, pastor or rabbi from the wedding ceremony, or a lost wedding ring or a pipe organ that won’t work. Handling these events are like handling objections.

6. Acquire referrals and testimonials.

While many business-to-consumer sellers skip this step, it can be helpful for many in the B2C sector. Happy customers are often willing to share the names of friends and family members who could use your products or services. Testimonials are positive statements of endorsement you can use in your selling process or in promoting yourself to others.

Top Areas in Miami Real Estate

  • Downtown Brickell
  • Miami Beach
  • Fort Lauderdale
  • Aventura
  • Kendall/Homestead
  • Downtown Brickell
  • North Miami Beach
  • Coral Gables
  • Coconut Grove
  • Bal Harbour/Sunny Isles
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