Buyers Presentation: Explaining The Home Buying Process in 15 Steps

Today we're helping you learn how to talk to clients and explain the home buying process in 15 steps in a friendly , straightforward way . There's no jargon , just simple , effective communication . So grab your coffee , relax and let's dive into those 15 steps .

As a reminder , the purpose of Scripts and Dialogs is to come , learn , practice and be prepared to fail forward . This is where we make mistakes and help each other out , but we're mostly interested in seeing how we can get better . First we read through the script word for word , and then we go back and put it into our own natural tone , style and phrasing .

You won't know what to say until you go through the script . So , with that said , many people will say that's not how I sound , and I totally get it . That's not how you sound , but that is the reason why we practice every day , so that the script becomes you and in your own voice .

So read it word for word first , then go back and put it into your own natural tone , style and phrasing and I think it'll work out Okay . So we're gonna . This is what we're gonna go over today . We're gonna go over explaining the home buying process in 15 steps . Everybody have that in front of them , yep . All right .

What we'll do is I'll set the stage for this . You are providing the buyer with an overview of the 15 steps involved in the home buying process . You explain each step in detail , from the initial meeting to closing and getting the keys .

Requirements are knowledge and expertise in the home buying process , effective communication skills , ability to build a collaborative relationship . The intention is to provide the buyer with a basic understanding of the process and to emphasize your role in guiding and supporting the buyer through their through the journey .

I want to make it clear , just so that everybody knows , in the buyer's presentation and I will pull that up in just a second here so that we all can see that here we go . I'm gonna share my screen and if you're listening to this , all you have to do is click on the buyer's deck from the week 37 , monday In this page .

I just want to show you in this buyer's presentation . There is a slide after about you and about whether you're working with the team or if you're an individual . There is a slide that's called the home buying process . Here's the 15 steps that I have identified . There's my be less . It might be more condensed .

Either way , the point is you're just briefly showing them in a slide view of what it takes to buy a home , and these are all different areas of what it takes . The rest of the presentation goes through the whole process too , but in general , we'd like to just practice a script so that we understand each one of these things ourselves .

That's the reason why we're gonna go over this particular slide and this particular script , using the buyer's presentation Make sense .

Yeah , okay . So the first step is for us to get to know each other . We'll discuss what you're looking for in a home , your budget and your timeline . Then we're , once we've established what you're looking for , you'll partner with me as your real estate agent to help you find the perfect home .

Then , before we search for homes , we'll sign the buyer's agreement , and this agreement will outline our responsibilities to each other throughout the buying process . One of the most important steps is getting a preapproval , because most homes can't be viewed without a preapproval , unless you're going to an open house .

So and this will also give us a more accurate idea of what you can afford and help narrow down your search Then , with your preapproval in hand , we can start looking at homes that meet your criteria . I'll send you listings and set up appointments for us to view homes in person . Then we'll tour the homes that you're interested in .

We'll visit each property together and take notes on what you like and what you don't care for . Well , once you do find that perfect home , we'll make an offer on your behalf and I'll help you determine the right price and guide you through the negotiation process . Then , if your offer is accepted , we'll execute the contract .

This is a legally binding document that outlines the terms of the sale . Once that's executed , we'll schedule a home inspection . This will identify any potential issues with the home that needs to be addressed before closing it first . If the inspection does reveal any issues , we'll negotiate with the seller to determine who will be responsible for fixing them .

Of course , once the issues have been resolved , an appraisal and appraiser will assess the value of your home to ensure that the price is fair .

Depending on the results of the appraisal and inspection , we may need to schedule further inspections and before closing , you'll need to secure home insurance , and this will protect you in case of any damage to the property . You may also want to consider purchasing a home warranty .

This will cover any major repairs that may arise in the first year of home ownership , and sometimes the seller will provide this as part of his negotiations . We'll have our final walk through and get the keys . We'll sign all the necessary paperwork and transfer the ownership of the property to you . Sound good ? Sounds like a lot , Debbie . It does , doesn't it ?

But once you're into it , it's pretty easy . I think the most time-consuming is finding the home .

All right , Emily , talk to Jamon and then Jamon you'll talk to Debbie .

good . Hey , so I'm a local realtor and I know you'd reached out to me . I know you're talking to a few different realtors , but I just wanted to let you know what I can do for you in terms of all the steps in buying a home .

I just want to make sure everything's out in the open and I kind of explain it to you how I do it so you understand every step of the way , is that okay ?

And then I'm going to set you up with some lenders unless you have your own so two different lenders you can talk to to get through the preapproval process , to kind of see where you land in terms of how much home you can comfortably afford , and then we can start our search . How does that sound ?

Then we can set up and tour the homes you know , as it is convenient to your schedule . Okay , All right . And then you know , after we search a little bit and you find the perfect home and you feel like you really want to make an offer on one , we'll go ahead and do that , Okay , and I'll walk you through that whole thing . Sounds good .

Then what I'm going to do is I'm going to help you schedule a home inspection , because we want to make sure that you totally understand the property that you're putting an offer on and that there's no surprises in terms of some kind of repairs or some issue with the home that really makes it something that you're not comfortable with going forward with .

Okay , okay , all right , so we'll get that home inspection done and then if any issues pop up in that inspection , we can negotiate that with the seller as well , and the best way to kind of go about that is to usually get a credit and maybe you know on the price , so you can get those issues addressed once you take ownership of the home . Okay , Okay .

Then the lender's going to schedule an appraisal , because if you're offering a certain amount of money , the lender's not going to pay for it . If the house doesn't appraise at that price point , it has to be at that amount or higher to get the loan secured .

Okay , and once that's been done , depending on the results of the appraisal and the inspection , we may need to further schedule further inspections , maybe something a little more detailed , like maybe roofing , foundation , plumbing , something like that , just to make sure we totally understand what's going on with the home .

Okay , then after that I need you to go to whoever you use for your home insurance and get the home added on to that Kind of find out how much that's going to cost you . And then we send that information to the lender . Because they're not going to , they're not going to finalize the loan unless you have insurance on the home prior .

Okay , there's also an option in the contract for home warranty . I usually like to provide my clients with the home warranty , but we can also ask the seller for that , or you can also take on that expense for yourself , but as my client I usually purchase that for my clients .

So after that settled , once everything goes through , we do a final walkthrough , we close and get the keys , we sign all the paperwork , we transfer ownership of the property to you and then you're home free . Do you have any questions about the process ?

I just need you to first kind of sign this buyer's agreement that we went over , and then we can get started .

It may seem like a lot of steps , but they're necessary and it'll just give you an overview so you won't be all worried about all these steps . Is that all right ? Yeah , sounds good . Okay , cool , let's dive on anything . So now the first step is first , we just get to know each other . Like what we're doing right now .

We'll discuss looking for a home that's in your budget and on your timeline . Now , once we've established what we're looking for , you'll partner with me and I'll be your real estate agent and I'll help you find that dream home that you've been . You got on your vision board and everything you know .

So now , before we start searching for homes , we'll sign a buyer's agreement Now . This agreement outlines our responsibilities to each other other throughout the buying process . Does that make sense ?

Now , with the pre-approval in hand , we can start looking for homes . Now that'll meet your criteria . So what I'll do , debbie , is I'll send you a listing and set up appointments for us to view homes in person . How's that sound ? That sounds great , right , awesome . Now here's the fun part we get to tour some homes .

So the next step is to tour them and we're going to find the one that you're interested in . We'll visit each property together and take notes on what you like and don't like , and you don't have to worry about writing anything down or anything like that .

I'll keep all the notes and then later on we'll go through everything and then , once we find that perfect home , we'll make an offer on your behalf . Now I'll help you determine the right price and then I'll guide you through the negotiation process .

I know it sounds scary , but I'll help you through that , okay , okay , all right Now , if your offer is accepted , fingers crossed , we know , you know we'll execute the contract Now . This is a legally binding document that outlines the terms of the sale . This is where it gets serious .

Now , after the contract is executed , we'll schedule a home inspection and this will identify any issues that the home , that the home may need to be addressed before we close . We just want to make sure that everything is up to par to your standards so we don't have to come back , you know , later on . You know now . We want to negotiate any issues .

After inspection reveals any issues , we'll negotiate that with the seller to determine who will be responsible for fixing them . How's that sound ?

So , before closing , now , now , after all that , before closing , you'll need to secure some home insurance . This will protect you in the case of any damage to the property . And then , after that , we're going to go on to the home warranty . Now you may also want to consider purchasing a home warranty .

This will cover any major repairs that may arise in the first year of the home ownership . And , let me add , that's very important . We want to make sure that we do that . Okay , and then we're crossing the finish line . So , finally , it's time to close on that home and get those keys , debbie .

So we'll sign all the necessary paperwork , then we'll transfer ownership of the property and then , boom , boom , we'll start popping champagne and everything is yours . So you have any questions about that process ?

You can have the buyer lower their price or have the seller lower their price , or you can ask the buyer if they're willing to come up or , you know , are they willing to meet in the middle ? You know , it's a simple , it's just a simple negotiations , all it really is Okay , but you haven't gone through that script yet , and that's okay .

But otherwise you did a fantastic job on that . You all did a fantastic job . I do have a question for everyone , number one just for discussion purposes how does understanding this buying process help you in your real estate business ?

We don't want that , but these are the big rocks , the main things that actually happen . The other question that I wanted to well , it's more of a discussion regarding the buyer's agreement that we list in step three .

So the question is and there's no right or wrong answer to this but the question is do we have them sign it before we work with them , or do we have them sign it , or after we work with them ? When do we have them sign it ? When is the most appropriate time to have them sign this agreement ?

So you could wait till they get pre-approved . On the other hand , you could get it signed at that point in the presentation . It's just a signature . Yes , I work with you . My personal thoughts are now you're going to work for them , you're going to introduce them to your preferred lenders .

I said that with plural because , we want to give them , always give them three and then allow them the opportunity to work with whoever they want , right . But if they do that and you had them sign the BRE now , you're introducing them to the people that you're working with . You're immediately going to work with them .

But that's a choice , that's a personal choice that you're going to have to make , because if they get pre-approved now let's rephrase that when they get pre-approved right , number one you can look at it as one less step that you have to do .

Or you also don't want to run the risk of them getting pre-approved and now they told all their friends that they're out buying a house and they have an agent that they can work with either You've already pre-planned and pre-protected yourself that way , but I will admit that it does to take that extra step .

It doesn't take a ton of time to write that contract , but it's kind of like you have them sign it and then they don't get pre-approved . It's like oh man . I mean it's like come on and it does happen . But I would rather have the safety net upfront and know that I can always just cancel it later on or it just won't play out .

But over the next six months they might get pre-approved or something might change . So you'll have to make that personal choice . That's my . I would prefer to get it upfront before I start to introduce them to anybody that I work with . So there's a case to be made for both situations . Is there anything else to add to this ?

Here's the first page , because that is the point that we're at . You had the appointment . You've just reviewed the about page , why you want to work with them as a single agent or why you want to work with them as a team member on a team . And now let's talk about the process . So , yeah , I agree with you . I'll take that .

I'll remove that part because they know you now . They already know you . Yeah , you may have given them a few more details in the about section , but they already know who they're meeting with . Right , no-transcript For the most part .

Now that I think about it , if you're on a team and somebody has scheduled an appointment for you and the client is meeting a team member for the first time , they could introduce the client . Like if Jamon's the buyer and Emily is the agent and I'm the appointment setter , I could be saying hey , jamon .

So we scheduled an appointment for you with Emily Zimmerman . She'll be the one that's going to be meeting you at the office . Now , a good agent and Emily would do this , would call and say , hey , jamon , I understand that we're going to be meeting , just wanted to call and introduce myself before we meet , looking forward to seeing you .

But if an appointment was scheduled and you haven't met them yet , then I can see that that might be appropriate there . But in for most cases , a single agents this is , you're already going to know them and they're going to know you . The other thing I do want to mention is down at the .

I made some quick notes on the document , which is one after the pre-approval or the pre-approval . I just put a note there that this goes to the lender . So the lender is going to want to I mean not the pre-approval , the insurance in step 13 .

So before closing , you're going to need to scare some insurance and this will protect you in case of any damage to the property . That information is going to go to the lender . You're just telling them . But the lender is also going to be talking to the client and say , hey , this is what we need in order for the deal to finalize .

The other thing is want to point out that home warranties are optional In Emily was right , so we could offer it as the buyer , we could ask the seller to pay for it , or the buyer can purchase it themselves . So you'll have to determine how you want to spend your money .

Are you willing to come out $450 to $500 in your commission check to buy a home warranty for your client , or are you going to ask the seller to pay for it , or are you going to ask the buyer if they want to add it to the transaction . So that's a personal business decision that you'll have to make .

It wasn't offered to me , I didn't ask for it . I didn't ask the seller to pay for it , I just knew that I wanted it and I bought it . But you know , I'm a little bit different case scenario too , because I know what's available to me and what's not available to me and I didn't wait because I wanted it .

There's all . So whenever you're considering buying it , you should really know which one you want to secure . And it's also good to ask the client as well , like , if they're going to buy it , then which one do they want ?

This podcast is for the purpose of education only and it does not make any guarantees . We suggest you seek out the help of your broker , coach or mentor for specific situations Brought to you by Daring Tunstall at Repros , California , DRE number 018-53445 .