Aloha! This is David Buck with Harcourts Island Real Estate and I just spent the past 5 days out and about on Oahu talking about the 71 things us as Realtors do when working with Buyers. I had to edit this video a little bit because I started off talking about the 99 things that Realtors do. It turns out, there's A LOT more.
Spring 2024 REALTOR Magazine
This all started off with a magazine that I was reading. As some Realtors do, they don't always read and when I skipped to the end, I saw there were 99 things Realtors do when helping their clients. Well, it turns out he first 71 were Working with Buyers. Then, the listed starts all over again with 1-99 in Working with Sellers. So, on today's video, we're just going to cover the 71 items Realtors do when working with Buyers here on Oahu. We're going to put together later a completely different video ini working with Sellers. Now, keep in mind, this is from the National Association of Realtors.
This is just a general overview of what we do. What we do here in Hawaii is significantly more than just the basic standards. So, keep that in mind when we're going over these 71 items. This is just "scratching the surface" in a sense.
First off, we're going to break these out into 5 days and the first category we're going to talk about when Working with Buyers is Building a Relationship. As we start this journey, we're going to run a fun little game to see if you recognize the neighborhoods that we're shooting the video in. If you happen to recognize a neighborhood, condo complex or what have you, feel free to comment that item number and the location in the comments below. Enjoy!
Day 1 - Building a Relationship
1. Inform the buyer of working relationship options based on state law, the REALTOR Code of Ethics, MLS requirements and the broker's business policies.
2. Learn buyer's wants and non-negotiable needs.
3. Understand buyer's budget and financial concerns.
4. Provide quality lender resources.
5. Match buyer's needs with available property.
6. Explain how compensation is paid, who pays it and what buyer's options are.
7. Explain federal and state fair housing laws.
8. After ensuring Buyer understands what is done for them, how it is done, and the benefit to them, obtain signatures on the buyer representation agreement.
9. Explain what to look for in applicable property disclosures.
10. Reassure buyer that personal information will remain confidential.
11. Inform buyer that you will always disclose all known material facts.
12. In accordance with state law, provide information on checking the sex-offender registry and crime statistics for the neighborhood.
That wrapped up items 1-12 today of what Realtors to for their clients. You may have noticed some of the cool footage in the backdrop today. If you recognize any of those neighborhoods, feel free to drop them in the comments below. We're going to call it a wrap today because just like buying a home doesn't happen in 1 day, we're going to break this up over several days to cover the 71 items that Realtors do for their clients. Today was 1-12 and tomorrow we're going to start at item #13.
Day 2 - Preparing the Buyer
Today, we're going to cover our next segment, which is Preparing the Buyer.
13. Explain timeline for house hunting, mortgage approval and closing.
14. Explain local market and how it impacts the buyer.
15. Show statistics on what percentage of list price sellers in the area are currently receiving.
16. Inform buyer of what home features are popular.
17. Identify current average days on market
18. Share dangers of using price-per-square-foot to determine home values.
19. Explain the concept of absorption rate and how it impacts the buying process
20. Indicate current listing month of market inventory
21. Sharer estimated out-of-pocket costs to complete the transaction.
22. Verify buyer's ability to purchase by ensuring they're prequalified
23. Help buyer account for the complete costs of homeownership
24. Prepare lender for listing agent calls.
25. Help buyer select for viewing only those homes that fit their needs.
26. Review sample sales contract so buyer is prepared when it comes time to make an offer.
Today, we wrapped up the section on Preparing the Buyer. Those were items 13-26 on what Realtors do to help their clients. Tomorrow, we're going to start with item #27 in Showing Properties. What you probably saw today, were some areas if you're familiar with Oahu that you may have recognized. It may kind of give you a feel of what Realtors do on a daily basis. We can be traveling all over the island in a given day. If you recognize any of those locations that you saw today, feel free to drop the item number along with the location in the comments section below. Stay tuned as we jump into item #27 tomorrow.
Day 3 - Showing Properties
Here we are on Day 3 of what Realtors do for their clients. We're going to be starting off with a segment called Showing Properties with number 27.
27. Schedule showings and provide access to all MLS listed properties.
28. Collaborate with buyer on properties they may have learned about through their sphere of contacts.
29. Preview properties prior to showing if needed.
30. Network with other agents to source properties not yet in MLS.
31. Set up automated email alert system through MLS that notifies buyer of potential properties.
32. Arrange tour of targeted market areas.
33. Provide resources containing neighborhood information on municipal services, schools and other local services.
34. Check applicable zoning and building restrictions.
35. Help buyer decipher public property and tax information.
36. Collect and share pertinent data on values, taxes, utility costs and other carrying costs.
37. Help buyer identify top choices.
That's a wrap on Day 3 on working with Buyers and we covered items 27-37 on Showing Properties. As we wrap up the day, a Realtor's day is never over. I got on the road early this morning and I just got back to the office. I covered a lot of the island and the sun has set behind me. Tomorrow, we're going to dive into items number 38 with Negotiating Offers.
Day 4 - Negotiating Offers
Here we are on Day 4, Negotiating Offers. We'll start off with number 38.
38. Prepare buyer to have the most attractive offer in the current marketplace.
39. Prepare a comparative market analysis in advance of making an offer.
40. Explain common contract contingencies, and include approved protective clauses in the purchase offer.
41. Ensure buyer receives and understands all state and federally required disclosure forms.
42. Prioritize contract negotiation goals with the buyer.
43. Prepare buyer for multiple offer situation.
44. Write offer that has a reasonable chance of being accepted.
45. When approved by buyer, use strategies such as an escalation clause to maintain a competitive offer.
46. Recommend optional contingencies and explain the pros and cons of using them.
47. Negotiate buyer's offers to arrive at the best price and terms.
Alright, now that was a wrap on Day 4 of Working with Buyers in the subsection of Negotiating Offers. We covered items 38-47, so it really goes to show you in just scratching the surface in what we do as Realtors in helping our clients. Hang in there. Tomorrow we're going to jump into item number 48 as we progress through this list.
Day 5 - Facilitating Close
Aloha! We're now on Day 5 in Working with Buyers and this final segment is called Facilitating Close. Rather than being cooped up in the office, let's head back on the road to get some beautiful scenery. So much has changed in our industry over the last several years. After COVID, we're seeing more and more mobile notaries vs. being in a real estate office or a title company.
48. Provide options for home inspector, title company, appraiser and mortgage lender.
49. Review and discuss home inspection concerns, and negotiate repair requests.
50. Guide buyer on meeting all contract deadlines.
51. Advise buyer to review the settlement statement.
52. Inform buyer of need to transfer utilities to the new residence.
53. Schedule final walk through and accompany buyer.
54. Ensure appraisal has been ordered and notify buyer of date.
55. Assist buyer in reviewing appraisal report.
56. Confirm clear to close with lender.
57. Ensure all parties have all forms and information needed to close the sale.
58. Confirm the closing date and time.
59. Explain flood and and insurance to the buyer.
60. Order any surveys needed.
61. Order title search.
62. Confirm status of loan funding.
63. Check addendums and alterations for agreed terms.
64. Review buyer's closing statement to ensure accuracy.
65. Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds.
66. Double-check property tax , home owner association dues, utility and applicable prorations if relevant.
67. Request final closing figures from closing agent.
68. Receive and carefully review title insurance commitment with buyer.
69. Advise buyer on re-keying locks or installing smart locks.
70. Review documents with closing agent (attorney).
We're now back in the office to cover the final item, which is:
71. Support buyer in final closing activities.
Wasn't it nice to get outside and outdoors a bit? As we talked about all 5 days, it was a fun little guessing game to see what neighborhood we were in today. Spoiler Alert - it's near our office here. It was good to get outside and that's a recap of the 71 things that Realtors do in helping their clients in Working with Buyers. However, this is just a national list. As far as what we do in Hawaii, that list compounds. You could probably double or triple the length of it. There's so much that we didn't cover today. Some teasers would be Fee Simple vs. Leasehold, Buying on Hawaiian Home Lands or what areas are zoned for legal vacation rentals, etc. That list goes on and on.... school districts, etc.
Contact a Local Expert
If you're looking for a local expert here on Oahu, feel free to reach out and give us a shout @ 808-371-3509. Mahalo!