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ALHC BUYERS TRANSACTION - Guidelines 2024

CLICK TO ACCESS BUYERS GUIDE TEMPLATE

    1. Initial Contact and Pre-Approval

    Step 1: Initial Contact

    • Action: The agent receives the inquiry from the potential buyer.
    • Email/Communication: [Getting Started Email]
    • Attachments/Documents:
    • Guidelines:
      • Introduce the client to the process and provide a brief overview of what to expect.
      • Emphasize the importance of getting pre-approved or providing Proof of Funds if purchasing with cash.
      • Schedule a 15-minute broker consultation to discuss the buyer's needs and clarify any initial questions.

    Contract Review

    • Thoroughly review the initial inquiry, buyer’s questionnaire, and any existing documents to ensure all information is accurate and complete.

    Comprehensive Timeline Management

    • Establish a timeline from the initial contact to closing.
    • Provide the client with a clear roadmap, outlining key dates and milestones throughout the transaction.

    Step 2: Pre-Approval Process

    • Action: The client chooses a lender from the preferred lenders list and begins the pre-approval process.
    • Email/Communication: Follow up after 3 days if no response.
    • Attachments/Documents:
      • Pre-Approval Letter template (if applicable)
    • Guidelines:
      • Ensure that the client understands the importance of pre-approval for streamlining the buying process.
      • Remind clients that pre-approval strengthens their offer, especially in a competitive market.

    Step 3: Proof of Funds (Cash Purchases)

    • Action: Clients buying with cash must provide verifiable Proof of Funds from a CPA or banking institution.
    • Email/Communication: Follow up after 3 days if Proof of Funds is delayed.
    • Attachments/Documents:
      • Proof of Funds template (if applicable)
    • Guidelines:
      • Verify the authenticity and validity of the Proof of Funds document.
      • Ensure that Proof of Funds is recent (within the last 30 days).

    2. Automated Property Search and Property Showings

    Step 4: Set Up Automated Property Search

    • Action: The agent sets up an automated search in FMLS based on the client’s criteria.
    • Email/Communication: [FMLS Auto-Search Email]
    • Attachments/Documents:
      • List of Property Search Criteria (optional)
    • Guidelines:
      • Customize the search parameters based on the client's preferences, including price range, location, and property features.
      • Encourage the client to review listings regularly and inform the agent of any changes in criteria.

    Document Management and Compliance

    • Maintain up-to-date records of the search criteria and communication.
    • Ensure all documents are compliant with state regulations and brokerage standards.

    Step 5: Property Selection and Showings

    • Action: The client reviews listings and selects properties of interest.
    • Email/Communication: [Email Template to Confirm Showing Requests]
    • Attachments/Documents:
      • Executed Brokerage Agreement (if not already provided)
      • Pre-Approval Letter or Proof of Funds (if not already provided)
    • Guidelines:
      • Ensure that all necessary documentation (Brokerage Agreement, Proof of Funds, Pre-Approval Letter) is on file before scheduling showings.
      • Request a 24-hour notice for scheduling property showings.
      • Coordinate with the listing agents to avoid conflicts of interest.
      • Offer advice on what to look for during property viewings, such as potential red flags or positive features.

    3. Offer and Negotiation

    Step 6: Making an Offer

    • Action: The client decides to make an offer on a property.
    • Email/Communication: [Email Template for Submitting an Offer]
    • Attachments/Documents:
      • Comparative Market Analysis (CMA)
      • Offer Document/Contract
    • Guidelines:
      • Drafting the Offer: Work with the client to determine the offer price, contingencies, and any specific terms they want to include. Provide a Comparative Market Analysis (CMA) to help justify the offer price.
      • Submitting the Offer: Prepare the offer documents and submit them to the seller’s agent.
      • Negotiation: Be prepared to negotiate on behalf of the client, considering counteroffers, and advising on the best course of action.
      • Tip: Ensure that the client is aware of the negotiation process and the possible outcomes, including the need for quick decisions.

    Step 7: Offer Acceptance and Contract

    • Action: The offer is accepted, and the contract is executed.
    • Email/Communication: [Email Template for Contract Execution and Next Steps]
    • Attachments/Documents:
      • Executed Contract
      • Disclosures and Exhibits
      • Earnest Money Deposit Instructions
      • Timeline for Contingencies, Inspections, and Closing
      • List of Important Dates
      • Inspector and Surveyor’s List
    • Guidelines:
      • Binding Agreement Date: Mark the official date the contract is binding.
      • Earnest Money Deposit: Ensure the client deposits the earnest money as stipulated in the contract.
      • Important Dates and Deadlines: Send the client a reminder of key dates, such as the due diligence period, appraisal, and financing contingencies.
      • Tip: Mark your calendars ahead of time.

    Earnest Money Management:

    • Track and confirm the receipt of the earnest money deposit.
    • Ensure the funds are appropriately held according to the terms of the contract.

    Contingency Monitoring:

    • Diligently monitor all contingencies, including financing, inspection, and appraisal.
    • Regularly update the client on the status of each contingency.

    4. Due Diligence and Contingencies

    Step 8: Home Inspection

    • Action: The client arranges a home inspection within the due diligence period.
    • Email/Communication: [Email Template for Due Diligence and Contingencies for [Property Address]]
    • Attachments/Documents:
      • List of Recommended Inspectors (if applicable)
      • Home Inspection Checklist (optional)
    • Guidelines:
      • Provide a list of recommended inspectors if the client doesn’t have one.
      • Advise the client on what to expect during the inspection and how to interpret the results.
      • Negotiate any repairs or concessions based on the inspection report.

    Inspection and Appraisal Coordination:

    • Coordinate the scheduling of inspections and appraisals within the contractually agreed timelines.
    • Ensure that all parties are informed of the inspection results and any necessary follow-up actions.

    Step 9: Financing Approval and Appraisal

    • Action: The lender orders an appraisal of the property.
    • Email/Communication: [Email Template for Appraisal Scheduling and Outcomes]
    • Attachments/Documents:
      • Appraisal Report (once available)
    • Guidelines:
      • Ensure that the appraisal is completed within the timeline specified in the contract.
      • Discuss potential outcomes with the client, such as appraised value matching the offer, appraised value being lower, or higher than the offer.

    5. Final Steps Before Closing

    Step 10: Final Walkthrough

    • Action: The client conducts a final walkthrough of the property before closing.
    • Email/Communication: [Email Template for Scheduling the Final Walkthrough]
    • Attachments/Documents:
      • Final Walkthrough Checklist
    • Guidelines:
      • Ensure that the property is in the condition agreed upon in the contract.
      • Verify that all agreed-upon repairs have been completed.
      • Address any last-minute issues before closing.
      • Request a testimonial or referral if the client is satisfied with the service.

    Title Work Coordination:

    • Liaise with the title company or attorney’s office to ensure the title is clear and ready for transfer.
    • Confirm that all title documents are accurate and prepared for closing.

    Closing Preparation and Coordination:

    • Schedule the closing date and time with all parties involved.
    • Ensure that all necessary documents, including the closing disclosure, are provided to the client in advance for review.
    • Verify that the client understands the closing process and is prepared for the final steps.

    Advanced Communication:

    • Maintain open lines of communication with the client, lender, attorney, and other parties involved.
    • Keep the client informed of any developments, delays, or necessary actions as the closing date approaches.

    Step 11: Closing

    • Action: The client attends the closing to sign all necessary documents and take possession of the property.
    • Email/Communication: [Email Template for Final Closing Steps and Congratulations]
    • Attachments/Documents:
      • Final Closing Documents (once executed)
    • Guidelines:
      • Ensure that all documents are signed, funds are transferred, and the transaction is officially closed.
      • Provide the client with a copy of all signed documents for their records.

    6. Post-Closing

    Step 12: After Closing

    • Action: Follow up with the client post-closing to ensure their satisfaction and offer ongoing support.
    • Email/Communication: [Email Template for Post-Closing Check-In]
    • Attachments/Documents:
      • Welcome Package
      • List of Local Services and Utilities
      • Home Warranty Information (if applicable)
    • Guidelines:
      • Send a welcome package with essential information about local services, utilities, and the community.
      • Offer assistance with any post-closing issues, such as repairs or warranty claims.

    Step 13. Post-Closing Follow-Up

    • Regularly check in with the client to maintain the relationship and ensure their satisfaction with the property.
    • Address any concerns or questions they may have after moving in.

    Client Relationship Management:

    • Continue nurturing the client relationship through periodic check-ins, providing valuable information, and staying top-of-mind for future referrals or transactions.
    • Tip: Personalized communication, like holiday cards or birthday greetings, can go a long way.

    Attachments & Resources Checklist

    Initial Contact and Pre-Approval:

    Automated Property Search and Property Showings:

    • List of Property Search Criteria (optional)
    • Executed Brokerage Agreement
    • Pre-Approval Letter or Proof of Funds

    Offer and Negotiation:

    • Comparative Market Analysis (CMA)
    • Offer Document/Contract
    • Executed Contract
    • Disclosures and Exhibits
    • Earnest Money Deposit Instructions
    • Timeline for Contingencies, Inspections, and Closing
    • List of Important Dates
    • Inspector and Surveyor’s List

    Due Diligence and Contingencies:

    • List of Recommended Inspectors (if applicable)
    • Home Inspection Checklist (optional)
    • Appraisal Report (once available)

    Final Steps Before Closing:

    • Final Walkthrough Checklist
    • Closing Checklist
    • List of Required Documents and Funds for Closing
    • Final Closing Documents (once executed)

    Post-Closing:

    • Copy of All Closing Documents
    • Utility Service Recommendations
    • Information on Property Taxes and HOA Dues
    • Welcome Package
    • List of Local Services and Utilities
    • Home Warranty Information (if applicable)

    Email Templates

    Buyer Transaction Email Templates

    Initial Contact and Pre-Approval

    • Getting Started Email
    • Pre-Approval Process Followup
    • Proof of Funds Followup

    Automated Property Search and Property Showings

    • FMLS Auto-Search Email
    • Confirm Showing Requests

    Offer and Negotiation

    • Submitting an Offer
    • Contract Execution and Next Steps

    Due Diligence and Contingencies

    • Due Diligence and Contingencies
    • Appraisal Scheduling and Outcomes

    Final Steps Before Closing

    • Scheduling the Final Walkthrough
    • Final Closing Steps and Congratulations

    Post-Closing

    • Post-Closing Check-In

    Additional Tips for Agents 

    1. Be Proactive in Communication:
      Always take the initiative in reaching out to clients with updates. Anticipate their questions and provide answers before they ask. This builds trust and shows your attentiveness.
    2. Leverage Technology:
      Use CRM systems and transaction management tools to stay organized and ensure no detail is overlooked. Automation can help in managing repetitive tasks, freeing up time for more personalized client interactions.
    3. Focus on Building Long-Term Relationships:
      Your interaction with the client shouldn’t end at closing. Stay in touch through regular follow-ups, market updates, and personalized notes. A satisfied client is your best source for referrals and repeat business.
    4. Educate Your Clients:
      Provide your clients with educational resources that empower them to make informed decisions. Whether it’s a guide on understanding market trends or tips on maintaining their new home, informed clients are more confident and satisfied.
    5. Stay Updated on Market Trends:
      The real estate market is dynamic. Regularly educate yourself on the latest trends, regulations, and technologies that can impact your clients. This knowledge positions you as an expert and enhances your credibility.
    6. Encourage Reviews and Testimonials:
      After closing, ask satisfied clients for a review or testimonial. These serve as powerful marketing tools and help build your reputation in the market.
    7. Collaborate with Other Professionals:
      Maintain strong relationships with lenders, inspectors, and other professionals involved in the transaction. A smooth collaboration ensures a seamless process for your clients and reflects positively on your brokerage.
    8. Practice Ethical Real Estate:
      Always act in the best interest of your clients. Transparency, honesty, and integrity should be at the core of every transaction. This not only builds trust but also upholds the reputation of your brokerage.
    9. Continuous Learning and Improvement:
      Invest in your professional development. Attend workshops, seminars, and industry conferences to stay ahead in the field. Continuous learning leads to continuous improvement.
    10. Maintain Work-Life Balance:
      Real estate can be demanding. Ensure you maintain a healthy work-life balance to avoid burnout. A well-rested mind is more productive and better equipped to serve clients.