On the day of your scheduled meeting, ensure you have prepared the following materials:

1. Buyer Brokerage Agreement
2. Printed and Bound Cloud CMA Buyer Tour Packets with Pens
3. Printed Ninja Buyer Process
4. Scenic Life – If you plan to present them with a Buyer Package during this meeting, you can refer to the copy contained in the package. Otherwise, the digital copy can be pulled up on the screen in the conference room or on your personal computer.
5. The Advantage for Future Owners – Again, if you plan to present them with a Buyer Package during this meeting, refer to the copy contained in the package. Otherwise, the digital copy can be pulled on on the screen.
6. The Property Buying Process Slick

This meeting culminates with your prospective buyer becoming a committed buyer by signing a Buyer Brokerage Agreement, but you must first provide value or a success proposition. Differentiate yourself from other agents in the market, and other agents they may have done business with elsewhere but demonstrating a higher level of service. If your prospective buyers have bought in other markets, they're likely already familiar with Buyer Brokerage Agreements. They're not unlike professional service contracts used by attorneys and other professionals. We recommend that you not perform work for someone without anticipation of doing a deal together.

Allow the Ninja Buyer Process document to guide your conversation. If you already know something, skip it. When you arrive at Number 4 on the Ninja Buyer Process document, take a moment to review Scenic Life and The Advantage for Future Owners, paying particular attention to the buying process, at which time you can transition to using the Property Buying Process flowchart.

Scenic Life

• If they're still getting to know our area, recommend they rent an e-Bike for the day and explore using the map. Point out the feeder highways connecting 30A to 98 if they're interested in that area, as well as our airport locations.
• Depending on where their primary residence is, focusing on where they're able to fly to from our area may be important, especially if they plan to make our area their full-time home.
• Highlight the tax advantages to owning in Florida if this is their first-ever in-state purchase, or first in recent years.
• For those purchasing a second home, highlight the local events they can expect to enjoy year-round.
• If they have school-age children, highlight our local schools.
• Mention that our access to medical services is ever-expanding and that we frequently update the medical services pages in Scenic Life each issue.

The Advantage for Future Owners

• Reasons for Purchasing – If you've followed the Ninja Selling approach, you likely already know the answers to these questions.
• Finding Your Purchase Property – Verify that they're registered with you in BoomTown 

Finding your purchase property.
Verify that they're registered with you in BoomTown prior to conducting the buyer brokerage consultation. Do they have a spouse? Make sure they are receiving the same email updates.
Explain how the HomeSearchNOW app works. This is your easy button. If you're talking to a buyer and they already have the app installed. There's an error in the video. The lead does not need to uninstall the app. They will be logged into the account connected with the emails they're receiving. (Notice they're sending you links from a competitor site, or from Zillow, etc. "Just curious, I notice you keep sharing Zillow listings with me. Why is that? We just like the app. Did you download my HomeSearchNow app? Send app invite. Great thing is, it connects to your account on our site site and it allows me to see favorites. Keeps you from being inundated by three agents when you inquire on Zillow. All listings you see on Zillow are same as those on ScenicSIR.com. Also have access to our coming soon inventory. I've sent you the link, I'll give you a moment to install.)
Favoriting properties helps us identify those properties you would be interested in seeing. We want to make the most of your time while you're in the area looking at properties, saving you time, energy and money. Touch on Upcoming Listings while covering the app. When you favorite properties, I can better identify upcoming listings in our inventory that could be of interest and let you know they're available before they even hit the market. We meet once a week to cover these opportunities. We typically have between 50 and 90 million in upcoming inventory and we can make sure you know about these properties before any other buyers in the market do.
Market Watch Updates = Market Snapshot
How often would you like me to send them to you? Customize the experience to the buyer. System e-Alerts default to daily. Limit or prevent unsubscribes.
Schedule a virtual tour of a property with me. Live, or pre-recorded.
Buyer Needs shared with our group weekly.

Funding Your Purchase

Cash? Great. Please reach out to your banker and get a proof of funds letter up to the price point you're looking. “You have the liquid cash available to make a purchase up to X amount.” Not for me to vet that you have enough money. It's to make sure we can present a strong offer. Some listing agents won't even entertain your offer without a proof of funds letter. And sometimes, you can't even view the listing without a proof of funds letter.

What will inevitably happen is this will be a requirement for a property you want to see (on a weekend when bankers aren't available), and I want to make sure we have it in your file so we can press forward without delay. We don't want you to lose out on an opportunity. If you get push back, you may want to pay attention for other red flag moments to determine if you continue working with them. We protect people from making bad decisions. Not asking you to do anything that won't benefit you in the long run.

Template email or text. Here's three contacts in our local market. “We had 3 buyers last week who failed to close because they were chasing interest rates, ended up using a lender who wasn't recommended or who were out of state and put their earnest money in jeopardy and I don't want that to be you.”

Using 1031 money for this purchase? Tell me more about the property you're selling? Is it on the market? Under contract? Who is your listing agent. I'd like to reach out to them to better understand the status of that sale before we run headlong into securing a property here. We need to get that property under contract. If we write a contingency into an offer, a good listing agent is going to want to know these things.

Have 3-5 local lenders you can recommend based on what they're looking for to get pre-approval. Always best to work with a local lender in the state of Florida. Out of state lenders don't always know our nuances and contracts. It will be an easier transaction for you. Get their local lender's contact info if they insist on working with them.

Making offers.

In today's market, we suggest 2% or greater EMD to show strength of offer. Good deals aren't found, they're made by making offers. Show we're willing to put a strong good faith deposit down that gets credited back to you at closing.

The Process

Fly through this in 5 minutes. One-way communicate. Get to the end. “That was a lot!” Explain how complicated it is to get a contract across the finish line. Should slightly confuse them and create anxiety. Show them pain and how you'll solve for it professionally by demonstrating that you know the process and that you'll be handling all of the details and timeliness to create pleasure.  It's not HGTV. Set the tone with them that no one knows the real estate process better than me. They view you as that person who has the seat at the table as their real estate advisor with an opportunity to connect them with a great agent in the market that they're in who is an expert in that market. We don't simply sign a piece of paper and hand over the keys. Lots of preventative maintenance to go over. Warranty repair items. What warrants a replacement. How does the home inspection process work. Inspectors typically like to do the work without the buyers present.  Talk through insurance issues. Wind mitigation - inland vs. on the coast. Age of roofs.  We're going to review the seller's disclosure; if there's anything we need to dive deeper on we'll get with the listing agent. Receipts for recent repairs. Who did the repairs in case there's an issue post closing. It was a problem. We fixed the problem. Now it's not a problem. Contractor is licensed, bonded and insured. Get dialogue down to make it sound slightly confusing. Do reinspection after repairs have been made. Make sure we're on the same page. 72 hours to review closing disclosures. Video walkthrough for you. You approve and we'll let them know we're clear to close. “I didn't know it was that complicated!” You've got me - this is what I do.

Bring out the property buying process flowchart.

Purpose:

1. Explains and educates the property buying process. Educated buyers are enjoyable buyers to work with. Plan, prepare, perform.
2. Shows teh client the complexities of completing a real estate transaction. Don't tell them how much you work. Show them! It's not HGTV.
3. Should slightly confuse the consumer and create anxiety (pain).
4. Demonstrates value to the consumer that you know the process and you'll be handling all the details and timelines (pleasure). Get credit for all the hard work you do!
5. Elevates the service to your client. Most def will differentiate you from anyone else.
6. Works with first time buyers as well as experienced buyers.
7. Works as a visual training tool for team agents or admins.
8. Can also be used with sellers!

Outcomes:

1. Educated buyers that will understand your offer negotiating strategies.
2. Commitment for representation from you.
3. Ability to dictate your fee on buy side deals.

Slow first…

1. Find property. Look back at all the work you've done at this point. New - look ahead. App. Saving favorites. Widdle down to 4, then choose 1. Save time, energy, money.
2. Make offer. Draft purchase agreement for you.
3. EMD. 2% is typical in our market. Good faith deposit that binds the deal and makes the contract, held by the title company, applied to your closing costs. Could be a check or a wire.
4. Verification of funds or lender pre-approval. Like to have up front. Save in file. Shows a complete contract to seller. Eliminates doubt in your ability to complete the purchase. Difference between pre-approval and pre-qualification. Pre-approval means buyer has been underwritten by lender. Lender cannot get to the end and tell us that debt to income is off and we can't do this loan. Put the lender's money where their mouth is. Pre-qualification means nothing.
5. May be in counter offer situation. Can counter as many times as we need to until we have a ratified contract. Like to submit an offer that gets accepted right away, but many times, there's something to counter. Until we have a ratified contract, property can be still sold to another party, so important to move swiftly.
6. Once we have a ratified contract, the timeline starts. Once effective date starts, timeline starts. Seller needs to supply lease/occupancy agreements within 5 days, and/or the survey if they have one. Apply for financing within 5 days, UNO. Order appraisal and survey at this time. If it's a DSF, order the survey. If less than two years old, might be able to get away with using an existing survey but things happen. For $500, sometimes a good idea to just order a survey and have a fresh start. Tell the title company to order the survey unless you have a surveyor you like to use. If you have a TC, order it in house. Title won't order it unless they're directed to because someone has to pay for it. Get surveyor contacts from title company. Start obtaining insurance quotes. Ask for existing insurance provider so that you have the option of asking if those companies if they'd be open to transferring those policies to you if they're assumable. Open and order title and perform lien searches.
7. Home inspections can be a variety of things. $350-$1500 paid up front. Depending on the property, there may be a variety of inspections we're conducting. We have 15 days to perform and receive report back unless negotiated otherwise.  Pay for inspection prior to it occurring. They deliver report. We execute repair addendum. Additional inspections include wind mitigation, pool or hot tub inspection, four-point, flood elevation certificate that is valid to apply for flood insurance, if no termite bond that can be assumed - wdo inspection. Use pest control company different from company that has a bond on it. Optional for house - not needed for condo.
8. Negotiate repairs. Seller obligated up to 1.5% for warranted or general repair UNO that seller must address to complete the sale. Due to purchase timeline, don't be surprised if seller offers credit at closing. Will address later. May counter. Buyer request for repair addendum. Don't be surprised if the seller gives a credit at closing in lieu of making the repairs. Might counter on repairs. If we can't come to terms, we'll have to find a new property. If we're within the inspection discovery period and we fail to agree, we can bow out and get earnest money back.
9. Appraisal. Ranges from $500 to $1000. Paid prior to appraisal taking place through your lender. Lender will order these for you. Three types of distinct value in real estate. Market value what buyer willing to pay dictated by supply and demand. Appraised 3rd party fee appraisers value for lender to hedge risk looks backwards in time. Tax assessed value tax appraisers value for tax purposes, typically lower than market value which is good for tax purposes. One different than the other doesn't mean you've made a mistake. focused on fair market value. If you have an appraisal contingency must come in at or above value. If we don't, it's just nice to know where it fell. If we have one and we failed to negotiate purchase to appraised value, we have to start over.
10. Within 20 days must verify property is insurable by national flood insurance program or private carrier for flood insurance if in a flood zone. If not insurable within 20 days, buyer can cancel. Material fact is legal term for anything that would have changed your reasoning to purchase the property had you know it prior to submitting teh offer. Stain in carpet. Inability to get flood insurance. Could be whatever. Timeline helps with EMD disposition. If concerned about cost of flood insurance, you want to use insurance addendum. Know your client and the product they're looking for and preemptively dive into nuances as you go through. If looking at product in flood zone, need to spend time talking about it more.
11. Financing deadline. homeowners insurance binder delivered to lender and title insurance needs to be ordered. Occurs 10 days prior to closing or 30 days after contract date UNO. Deadline met - move on. If not, we cancel and go back to find a new property. Sometimes cannot obtain financing. If flood insurance comes back, too high and debt to income is out of whack and we can't finance you, have to start over. Multiple ways for deal to fall apart and start all over. Get as much info up front before we write the offer. Need to have homeowner insurance binder to the lender in order to secure financing and get a clear to close.
12. HOA/Condo Estoppel Cert. 10 days prior to closing. 3 days for review. If HOA must approve buyer, seller must initiate approval process within 5 days of contract effective date. If buyer is not accepted, they can back out of contract and have EMD returned. What constitutes a disclosure summary? If survey was ordered, must receive it at least 5 days prior to closing if that is needed.
13. Title Commitment. Buyer has 5 days to review exceptions on title policy. Encumbrances on title, within 5 days, must notify seller and seller has 30 day period to cure and contract can be extended for this cure period. Exclusions are things they're not going to insure. If something isn't acceptable to buyer, can ask seller to cure. Title company won't insure easement on someone else's property. Read title commitments. Exceptions include access easements and encroachments. Let them know what they are. They aren't reasons to not issue title insurance, it's just an exception on your policy. When they get to closing, they're going to have to sign a document saying they're okay with those easements and encroachments so make sure they know what those are going in.
14. Setup Utilities. List of providers. Contact them all. Let them know when the closing date is.
15. Survey. See if there are any encroachments. 5 days prior to closing buyer may have the property surveyed. If seller has one, a copy shall be furnished within 5 days after contract date. Survey has to be completed prior to financing. Order home inspection moved to agreements, or seller provide if available.
16. Closing Disclosures. 3 business days to review. Title must deliver to buyer within 3 business days of closing, otherwise, we're going to have to extend the closing. 
17. Final Reinspection. Have them done by inspector if repairs were done to ensure they were done in a workmanlike manner. Paid for by seller if there's a second re-inspection needed for requested repairs not remedied. If buyers are getting financing, reinspect needed a week out in case items left undone, have to figure out how much to escrow for repairs. Lenders and title companies won't escrow money for repairs. Must make a credit at closing or they fix it. Do we need a standard clause here? Is re inspection performed by same company, or is it seller's choice? Need to specify. Continue to pay until all items had cleared.
18. Final Walkthrough. Photograph/video property early on to compare. Inclusions there? Is something missing? Ideally, they're here in town to perform.
19. Wire Funds
20. Closing. Record deed. Disburse funds. Transfer utilities. Get keys and codes. Get a copy of your closing documents.
21. Give 5-star review.
22. For the rest of your life, send me all of your referrals. I'll give them red carpet service. Looking to build my business doing business with the friends and family of my friends and family.

Representation

All agents in the State of Florida operate as transaction brokers by default. There is no extra document that they must provide a buyer to explain representation. In almost all other states, agents are required to present buyers with a disclosure or sign a buyer brokerage agreement prior to working with them. This concept should not be foreign to your buyers whose primary residences are in other states.

I'm acting as a referee, not as a coach is a great analogy to use to explain a transaction brokerage relationship. A coach strategizes and is responsible for their team winning or losing. If you do make a mistake as a single agent, you can be held at fault. If you're not comfortable with single agency, a buyer brokerage agreement as a transaction broker can be used.

The paperwork is simply formalizing what they already know to be true once you have presented an immense amount of value.

Transaction brokers facilitate by presenting options and allowing the buyer to select from those options.

Order a listing package. All documents plus tax breakdown up front. Is this the preliminary title and lien search? Taxes are reevaluated on an annual basis and paid in arrears. Tax bill in November comes in higher than prorated amount, can go back to seller for their part of the increased amount.

People who want to be associated with people who bring value. Could be vibe, but this is about technical excellence. Respect you first, like you later. If buyers get to closing table and tell you they must have been easiest transaction. Easy money. We didn't articulate enough value to let them know all the things being done in the background on their behalf. Don't make promises you cannot fulfill, but articulate all that you do.

In the absence of value, people question price.

Educated buyers are enjoyable buyers to work with. Surprises are never good in real estate. Never want to find myself in a situation where I'm explaining something in the contract I haven't covered up front first.

If I present a buyer brokerage agreement to someone and they don't want to commit to you, is that someone you want to be working with? Avoid time vampires. If you allow someone to suck up your time, they will. Be the most productive as you can with what time you have. Being a tour guide, spending time away from family to focus on providing to buyers for no fee, no commitment, doesn't make good business sense. What business in the world dictates their fee by taking what their direct competitor is willing to offer them? Buyers aren't liars. You have a crappy business model. Be a thumb pointer, not a finger pointer. What could I have done better to not squander that time away from my family?

Don't allow the listing agent, who is acquiescing to pressure on commission from their sellers, dictate your income.

Buyer Brokerage Agreements

1. Locks in commitment between you and the client.
2. Establishes your fee.

I like to represent my clients. By default, they're representing the transaction. Questions about what representation means. …Loyalty, confidentiality, obedience and full disclosure vs limited confidentiality. “I'm operating as a referee as a transaction broker. Make sure players follow the rules, etc. game starts and stops on time. As coach, I want to be calling the plays and helping you win the game. Does that make sense?”

Here's the deal. I have to provide you full disclosure on any property you're interested in. If it's one of our listings, I'm going to get approval from you to transition to a transaction broker. I can't represent both parties at the same time because Florida law prohibits dual agency.

We are a global real estate brand. No matter where you're looking to buy or sell, reach out to me and I can refer you.

I'm excited. I've got 5 properties I really want to show you. Let's get through the paperwork. Skim pre-filled buyer brokerage agreement. Six months out? Make it for 12 months. Well beyond anticipated transaction time.

Mr. and Mrs. Buyer, I'd like to explain to you how I work. I'm obligated by Florida state law to discuss the types of relationships that are available to you. Florida as a whole is a caveat emptor state, which is Latin for buyer beware. All agents serving the public in Florida are on a blanket and implied transaction broker relationship with the customer. What that means is they represent the transaction not the client. What I like to do is represent by clients as a single agent to act as a fiduciary for them. In a nutshell I'm working for you and only you. What that means is (go to page 4 and show them the difference between TB and SA)

Now, since this relationship is established at the broker level and the state of Florida does not recognize dual agency we cannot represent both parties in a single agent capacity. In that case we would transition to what's called the transaction broker. What that means is if I happen to know information about the seller that they do not wish to disclose to you I cannot discuss and vice versa if the listing agent knows information that you don't want to disclosure to the seller they cannot disclose it without written consent. Typically this is what a buyer is willing to pay and what a seller is willing to accept for the property.

Property: All about them. Don't be too specific on property. Price range: “Thank you for sending me pre-qual letter.” Non negotiables? Pool? Walking distance to the beach, etc. under terms and conditions. 

Broker's Obligations. 4B. Highlight other buyers. Always on the lookout for properties for my buyers. Only represent a few buyers at a time. They may be looking at similar properties. As I'm previewing properties with you, I'm also considering them as potential candidates for other buyers I'm working with. Give me feedback. Let me know what you like and don't like. If you do like it, let me know, because I'm always looking for fits for other buyers I'm working with. “There was a time I showed a property and the buyer didn't tell me that they loved it. We moved on and they didn't tell me it was in their top 3. It worked perfect for other buyers who I put under contract. A week later, those buyers told me it was their number one and at that point, there was nothing I could do about it.” This is a passive motivation trick: call buyer, “I know I showed you 123 Street and you said it didn't work for you. I do think it's going to work for another one of my buyers. Do I have your permission to show it to those buyers.”

Service providers. I have a rolodex of folks I can refer you to. You decide.

Buyer obligations. For us to be successful in this fast moving appreciating market, we need to have great fluid conversation and be communicative with each other. If I'm facilitating with you and the lender, we need to make sure to get all of the documents in so we're ready to make a move on that property when it comes available. Make your time available as we enter into the contract negotiation stage. Discuss your own availability and set expectations on when you show houses. If you text me at night, I may be busy and may not get back to you right away, but I do make it a point to get back to everyone before I call it a night. When I'm representing you. (5A) go to open house, model home. Let them know you're being represented by me. They should leave you alone and not ask you questions. They're working for the seller. I'm working for you. Don't disclose anything to them. See a sign? Get on the app and let me know you want to see it. If an on site agent steals your client who is under a buyer brokerage agreement, let broker know and we will get you cut in. Provide timely and accurate info I need regarding financing. Bad news doesn't get better with time. 5D. Indemnify. 5D protects you. Don't spend too much time on this. Keep it in there. If a buyer strikes this from your agreement, “I'll need to consult with my broker. We haven't been authorized to adjust this agreement. I appreciate your attorney wants to limit all liability in real estate, but in real estate we have good faith. Need to have good faith in the transaction from all parties, because everyone is sharing in the risk. Consult appropriate tax professional. I'm not an attorney, cpa, engineer. I have contacts and can let you know when something is outside the bounds of my expertise.

Don't need to charge a retainer. When someone is job hunting, you might charge a retainer that gets charged back to them at closing. If you're not sure at the end of it all you'll be compensated, charge a retainer.

3% plus $300 transaction fee. Negotiate with seller to get this paid. If buyer is fearful of having cold feet and want to back out of the transaction, can strikethrough 7E if buyer questions it and eliminating would make them feel more comfortable.

Protection period if they cancel with you. We're still covered if you brought a property to their attention while under agreement and contract on it outside of agreement up to number of days specified. Broker can deal with these instances.

My job to earn clients trust every day. I never want to hold my clients hostage with a contract. You can fire me at any time. Ever too informative, too communicative, too charming you can fire me at any time. “I've never had a client cancel a buyer brokerage agreement with me.” If you're not listening to me or doing things that could put you in harms way, I can fire you as well. We just need to let each other know. But I'm really excited to be working with you. 

I've already sent you this for digital signature. Open up your email and sign.

I'll be providing you all the duties as if I'm representing you, only I can't tell you seller's secrets and I'm not obligated to tell them yours. That wouldn't be fair, would it? That's why we don't believe in dual agency. As a single agent, I must disclose everything I know, whether I think it's material or not. Don't leave anything to chance. Dig into anything that's a cause for concern.

Are you a signature authority on the LLC? Or does every member need to sign? I'd like to represent your LLC/ investor group. From what I understand, you're a signature authority. Don't be too difficult to work with. Be fun and easy.

Send buyer brokerage agreement to title company showing difference between what is being paid by seller and what is being paid by buyer to make up difference in compensation. 2.5% offered by seller vs 3% agreed upon by buyer. My fee was 3%. You've been great to work with. Reduced comp 25 basis points down to 2.75%. Can always give them a discount if you need to. If you've rocked it they'll be excited to pay you.

If a buyer ever comes to you on one of your own listings and they want you to be a transaction broker, call Wes and have him write up the offer so that we can create separation. It's good to know another broker or agent stepped in to help them negotiate their deal, especially during contentious multiple offer situations. I'm sorry your offer wasn't accepted. Did you bring the buyer? It doesn't feel good. “They must have backdoored me.” Consider funneling leads on a specific listing to your team agent. I'm going to refer you to one of my associates to help you on this deal. You can have all of the commission if you refer to Wes, just set him up with the details.

All exclusive agreements are at the brokerage level, which is why you have to be a transaction broker to bring an offer on one of our listings because we don't acknowledge dual agency in the State of Florida. The broker is liable for the actions of all their agents. Agents are the designated licensee and have been charged with executing these agreements. It would be a conflict of interest if the brokerage represented both the buyer and seller, so we need to transition to transaction broker.

When you're a single agent you must provide full disclosure.

Do you think I know what the seller does for a living? Their kids names? Their mortgage balance? how much money they have in the bank? Probably not. They're not my client. I don't know them. When I transition, I don't know anything about the seller anyway to disclose to you.

Unless you authorize me, as a single agent, you're a ghost. They don't get to know any details. I'd have to ask my buyer if they feel comfortable with me disclosing to you what they do for a living, etc.

Continue with remainder of Ninja Buyer Process.