Written By Melissa Dittmann Tracey, Reprinted from Realtor© Magazine March 2012

Buying a home can be stressful. As a real estate agent, you get to see home buyers at their best — that is, the joy they feel when they step into their new home. But you first usually have to see them at their worst — the stress and tension they may feel in trying to find that perfect house. That puts you in role as adviser, friend, and counselor.

As a salesperson, you might be wondering what your customers really think about the home-buying process, and what, exactly, they expect from you beyond helping them find that ideal house. The bottom line: They expect a lot.

Top 5 Things Buyers Say They Want Most

The 2011 Profile of Home Buyers and Sellers survey conducted by the National Association of REALTORS® shows what buyers want from their agents. Here are the five biggest expectations:

1.   Help finding the right home to purchase.

2.   Help negotiating the price.

3.   Help negotiating the terms of the sale.

4.   Determining what comparable homes are selling for.

5.   Assisting with paperwork.

That’s not all. Buyers surveyed also said some of the biggest benefits real estate practitioners can provide is helping them understand the home-buying process as well as pointing out unnoticed features or faults with a property. What’s more, the majority say they are looking for an agent who can improve their knowledge of home-search areas and provide a list of service providers.

The following are seven suggestions for real estate professionals in better assisting today’s buyers for improved client relationships.

1. Don’t Be Slow to Respond

Behind only honesty and integrity, response time is rated as a “very important” quality in real estate professionals, according to the NAR survey.

So how quick is your response time? Real estate professionals ignore or respond too late to nearly 75 percent of customer leads that come in through online channels, according to a secret-shopping study by PCMS Consulting and One Cavo. The study, which evaluated practitioners’ response rate to Internet leads from customers, found that nearly half of agents did not respond to the Internet leads. And, 23 percent of the leads that did receive calls back were contacted about eight hours after forms were submitted.

That’s still too late, the survey’s researchers say. “Today’s Internet consumer is expecting a response certainly within the hour but, more likely, within 15 or 20 minutes,” said Bradley Miller, One Cavo founder and president.(For help in improving your response time, check out Buyer’s Guide: CRM Solutions or 6 Best Practices for Online Leads.)

2. Be a Savvy Negotiator

The good news: For the most part, most buyers are satisfied with the real estate agents they choose, and nine out of 10 say they would recommend their agents to others, according to NAR’s 2011 Profile of Home Buyers and Sellers. But there’s one area in particular they feel agents need a little extra work: negotiation skills. This and technology skills were the only areas where buyers expressed less satisfaction with their agents.

Today’s buyers want a deal — or a steal. Are your negotiation skills up to par for challenging transactions? In your last few negotiations, how successful have you been? Have your buyers felt satisfied in the end? Or have too many deals fallen apart lately?

There are plenty of places to turn for a brush-up on your negotiation skills. Several REALTOR® designations offer negotiation classes, such as some offered by the Real Estate Buyer’s Agent Council, or you can find courses or resources through the new REALTOR® University. (Also seeFinding the Peace: Strategies for Negotiating in Today’s Marketplace or ‘My Best Negotiating Secrets’.)

3. Don’t Come Across as an Amateur

Home buyers love to view photos and videos of homes, which has compelled more real estate professionals to hastily put on photographer and filmmaker hats. But if video isn’t your forte, then maybe you shouldn’t grab that pocket camera or smartphone and broadcast your work on YouTube. You actually might do more harm than good.

One real estate professional in the Dallas area decided to shoot several neighborhood videos from a handheld camera, turning buyers off of several neighborhoods in the area. The videos were all captured as the agent drove through the neighborhoods (safety tip: don’t film and drive) and captured it all on a cloudy, winter day — not exactly the best backdrop for making neighborhoods look appealing. If you want to do a neighborhood video, wait for a sunny summer or spring day to show off the vegetation and greenery, make sure you keep the camera in focus, and film when you’re not on the move. Better yet, maybe take a film class or enlist an aspiring filmmaker for help. Same goes for property pictures, too — if you’re not good at shooting photos, then seek professional help, or obtain the skillset you need to do a professional job.

4. Have a Web Presence

As a determining factor for choosing an agent, reputation was rated No. 2 behind trustworthiness, according to the NAR survey. For many consumers, online search has become a go-to method to find out more about a practitioner’s business, and one of the things they look for is other clients’ reviews. If nothing comes up when they Google you, some buyers will assume you’re not very established in your business, and they may have a tough time putting their biggest purchase in your hands. If it’s a Facebook page with some questionable photos, well, that won’t likely win you any clients either.

So, how’s your online rep? (Read: Deal With Online Detractors or 9 Ways to Get Glowing Online Reviews.)

Social networking pages like LinkedIn often come up early in Web searches, so make sure they’re up-to-date and represent your business. Also, take advantage of the “recommendations” feature to highlight customer reviews.

According to surveys, home buyers also say real estate practitioner and company Web sites have been useful in their home search. Here’s what they rated as top site features:

1.   Photos

2.   Detailed information about properties for sale

3.   Virtual tours

4.   Interactive maps

5.   Real estate agent contact information

6.   Neighborhood information

5. Don’t Dodge a Question

There are certain questions you can’t answer because of fair housing laws, such as “What kind of people live in this neighborhood?” or “Is this home in the best school district?” But if you just ignore the question or gloss over it, you inadvertently make the buyer lose faith in your knowledge about the market or feel like their question didn’t matter.

Keep data on demographics, crime, and school reports with you, available at your Web site, or even in a special buyer packet you give clients when touring homes. That way, when they ask you a question you can’t answer, you can point them to where they can find it on their own.

6. Follow the 3 E’s

You’ll have to wear multiple hats as an agent. Be ready to educate, empathize, and encourage.

Educate: Educate the buyer on the area, what comparable homes are selling for, the average price per square foot in the neighborhood, and every stage in the buying process.

Empathize: Buyers are bound to throw something at you that may seem absurd during the home search. Remember, this is a big step, and it’s scary so they may get cold feet and suddenly a seemingly easy fix to you — like the color of the walls — becomes a huge obstacle they can’t overlook. Even if the gripe seems unreasonable, keep your cool, listen to their complaint so they feel heard, and then propose a practical solution or find a compromise. (Read more: Get to the Root of Buyers’ Objections.)

Encourage: Once your buyers select a home, validate their decision. Review the priorities they stated in their home search, and how well the home measures up: Did they find a good match? A big portion in the buying process is the feeling of validation — that they made a good decision, which will help lead them all the way to the closing table.

7. Don’t Pull a Houdini

After buyers select a house, don’t just disappear until closing day. You’ll make them feel abandoned. While buyers say they most want assistance in finding the right property, they also say they want their agent’s help with understanding the entire process and recommendations of service providers.

Find excuses to make contact, even when there’s nothing to do that week to move the transaction forward. For example, “I saw this interesting article in the newspaper and thought of you,” or “I just drove past the house and it looks great. I know you’re getting excited for move-in day.” Send happy birthday greetings or remember special dates. For relocation clients, help them get adjusted to the community by offering up fun things to do in the area. (Get more ideas for keeping in touch.)

The end of a transaction is really just the beginning to building a relationship with your clients, proving you’ll be there every step of the way and beyond, to the next time they need your services — or their friend does.

Reprinted from REALTOR® Magazine Online, March, 2012, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright March 2102. All rights reserved.

This Week’s Lockbox Activity Rises for Oregon and Dips for Washington

For the week ending on 6/10/12, these charts show the number of times RMLS™ subscribers opened Supra lockboxes in Washington and Oregon. Compared to the previous week, activity increased in Oregon and decreased in Washington.

To see larger version of these charts visit our photostream on flickr.

Florence sits at the mouth of the Siuslaw River on the central Oregon coast midway between Newport and Coos Bay.  The area offers an amazing array of outdoor recreation opportunities. There are sparkling lakes, a river, evergreen forests, the Pacific Ocean and sand dunes. Just north of town 40 miles of wind-sculpted dunes are part of the Oregon Dunes National Recreation Area. This region offers everything from dune buggy tours, kayaking the river or ocean, riding horses on the beach, bird watching to hiking.

Old town Florence is located immediately east of Highway 101 and the historic Siuslaw River Bridge. Here visitors can find various shops including art galleries, restaurants, antiques, gifts, ice cream and other specialty foods.

RMLS™ is proud to have subscribers in Florence, Oregon and Lane County. Subscribers can contact Andrea Milbrett our Subscriber Relations Representative in the Florence RMLS™ office at 541-902-2560.

Insider’s tip:  Andrea recommends Ixtapa Mexican Restaurant in Florence directly north of the main intersection on Highway 101.

Photos courtesy of the Florence Chamber of Commerce.

Yes, it’s that time again. . . billing for quarterly fees will be sent out on July 1. Here are some insider tips to help you keep your account current.

#1 Credit Card Auto-pay
Make paying your quarterly subscriber fees easy by using our debit/credit card auto-pay service. Your fees will be paid on time, every time, automatically. You can specify if you want the funds transferred on the 1^st, 15^th, or 25^th of the month they are due. Use this form  to start auto-pay.

#2 eBilling
Email notification will be sent within two business days of your account being billed each quarter. The email will include the due date, total amount due and a link to log-on and pay your bill.  For more information read our eBilling Q & A document.

#3 Free Reminders
We know you’re busy and have a lot of information to track—let us help you. You can opt-in to our free reminder service. We will send you a reminder email two weeks before your quarterly fees are due and call you if your account becomes past due. Call our Accounting Department at 503-872-8003 to sign-up for this free service.

#4 Keep Your Contact Information Current
It’s important that RMLS™ be able to contact you if an issue arises around your billing activity. If your email, phone number or address changes please go to RMLSweb–>Toolkit–>User Preferences–>Edit RMLS Subscriber Account contact e-mail to update your contact information.

Reminder—Not paying your bill doesn’t cancel your account. If you need to cancel because you’re leaving your current office or turning in your license please fill out the Subscriber Change Form. If your license is still active but you qualify for a waiver (see our Rules and Regulations) please complete the Waiver Form. Both documents may be sent to the Accounting Department.

For more information or if you have any questions please email accounting@rmls.com.

Photo Credit

This Week’s Lockbox Activity Rises for Washington and Oregon

For the week ending on 6/3/12, these charts show the number of times RMLS™ subscribers opened Supra lockboxes in Washington and Oregon. Compared to the previous week, activity increased in both Oregon and Washington.

To see larger version of these charts visit our photostream on flickr.

This Week’s Lockbox Activity Decreases for Washington and Oregon

For the week ending on 5/27/12, these charts show the number of times RMLS™ subscribers opened Supra lockboxes in Washington and Oregon. Compared to the previous week, activity decreased in both Oregon and Washington. This is due in part to the decreased traffic on the weekend leading up to Memorial Day.

To see larger version of these charts visit our photostream on flickr.

The Portland Office Has Moved–Our new address is 8338 NE Alderwood Road, Suite 230, Portland, OR 97220.

Here’s a quick rundown of upcoming real estate events and education for June in Oregon and Southern Washington. If you have an event that is not listed here, please let us know by commenting below.

Events around the region:

June 11:  Grow Your Green Knowledge 12:00 p.m. – 2:00 p.m. 1.5 CE Hours
Location: Crowne Plaza Portland
Discounted price: $10…a 60% discount!. More information

June 14 & 15: Working with Buyers 1:30 p.m.-11:30 a.m. and 9:00 a.m. to noon 6 CE Hours
Location: CCAR Conference Room – $69
The class covers everything an agent needs to know when working with a buyer. More information

June 20: EMAR Membership Luncheon and Education Hours 11:30a.m. – 1:00 p.m.
Location: Elks Lodge, 3330 NE Division, Gresham
Join your fellow EMAR Realtor and Affiliate members to network, share information and experiences. More information

June 21: Code of Ethics 8:30a.m. – 12:00 p.m. 3 CE Hours
Location: Springbrook Community Center, Newberg
This class is required every four years  Free for YCAR members, $20 for non-members.  More information

This June Take Advantage of FREE RMLSweb training!

If you are an RMLS™ subscriber, we have lots of FREE educational opportunities at a location near you; click the link for your area to view the June Training Calendar:

-Coos County
-Eastern Oregon
-Eugene
-Gresham
-Hood River
-Portland
-Roseburg
-Salem
-Vancouver

Photo Credit

Written By Phil Querin, Querin Law, LLC – PMAR Legal Counsel

Upon closing of a real estate transaction in the U.S., a Federal law, known as the Foreign Investment in Real Property Tax Act (“FIRPTA”), may require that escrow withhold a portion of the seller’s proceeds if the property is located within the United States and seller is a “foreign person.” A “foreign person” includes a non-resident alien individual, foreign corporation, foreign partnership, foreign trust and foreign estate (hereinafter “a foreign entity”).  The amount deducted from seller’s proceeds is ten percent (10%) of the gross sales price and is required to be remitted to the Internal Revenue Service (“IRS”).

The buyer may become responsible for payment if FIRPTA applies and escrow is not instructed to withhold the funds.  This means that if a transaction closes and funds are distributed to the seller, who was legally a “foreign person,” the buyer may be on the hook.  There are some instances in which the real estate agents may become liable as well. 

Here are the major FIRPTA exclusions: (a) The sale price is $300,000 or less; (b) The property is to be used by buyer as a residence; and, (c) The buyer is an individual and not a foreign entity.

Under the OREF Residential Real Estate Sale Agreement (“Sale Agreement”), the seller represents that he/she is not a “foreign person” (i.e. their “Non-FIRPTA Status”).  If the seller is unsure about their legal status, he/she should first confer with their tax counsel or a CPA before entering into the real estate transaction. If FIRPTA is applicable, the Sale Agreement recommends that buyer and seller agree to execute and deliver such instruments, affidavits or statements, as may be requested by escrow to carry out the provisions of FIRPTA.

In addition, the Sale Agreement contains the following:

Buyer has no knowledge, information, or belief that Seller is a foreign person or that this transaction is subject to FIRPTA.  Seller acknowledges that Buyer, Listing and Selling Licensees, their respective Firms, and Escrow, its agents, employees and representatives shall have the absolute right to rely upon Seller’s representation of Seller’s Non-FIRPTA Status at Section 12, above.  This right of reliance shall continue through the Closing Date and thereafter, unless Seller has disclosed otherwise in a written counter-offer to this Sale Agreement.  If at any time during this transaction, it is determined that Seller’s representation of Seller’s Non-FIRPTA Status was incorrect, for any reason, Seller and Buyer hereby appoint and instruct Escrow to act as the Qualified Substitute for purposes of preparing the necessary paperwork, withholding the necessary funds, and remitting the same to the IRS.  Seller and Buyer acknowledge that if FIRPTA applies to this transaction, Escrow’s role as a Qualified Substitute may result in a delay in closing this transaction.  Unless otherwise provided in this Sale Agreement or any subsequent signed written agreement between Seller and Buyer, confirmation of Seller’s Non-FIRPTA Status is not a contingency in this transaction.

The reason that the Sale Agreement goes to such great lengths regarding FIRPTA is because commencing with the listing of real property, there was no vetting of the seller’s FIRPTA status.  This has recently changed, thanks to RMLS™’s cooperation in dealing with this issue.  The RMLS™ Listing Agreement will now contain the following required field:

16. FIRPTA. In general, the sale or other disposition of a U.S. real property interest by a foreign person is subject to income tax withholding under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). A “foreign person” includes a non-resident alien individual, foreign corporation, foreign partnership, foreign trust and foreign estate. If

FIRPTA applies, the buyer or other qualified substitute may be legally required to withhold this tax at closing. In order to avoid closing delays, SELLER is requested to initial one of the two statements:

______ / ______ SELLER warrants and represents to BROKER and BROKER’S Firm that SELLER is not a foreign person under FIRPTA.

______ / ______ SELLER is a foreign person under FIRPTA.

Date of BROKER’S signature

BROKER Signature

FIRM NAME

Date of PRINCIPAL BROKER’S signature

PRINCIPAL BROKER Signature

Phone

Conclusion
Now, listing agents will be the initial point of contact on the FIRPTA issue.  This is a good thing, as it will now permit all Realtors® to be aware, at the commencement of the transaction, that there may be some federal tax withholding requirements imposed on the seller as a part of the closing.  In such instances, company policy and managing brokers should mandate that the transactional file be properly flagged, and that escrow be immediately notified that the parties request that it handle all FIRPTA compliance obligations.  Caveat: Escrow will not do this automatically, and in most cases, the standard closing documents provide that the escrow company is exempted from handling FIRPTA compliance matters.  So, be aware that if they are not asked, they will not undertake the responsibility. 

Phil has served as legal counsel for the Portland Metropolitan Association of REALTORS^®  for the past 20 years, and serves on the PMAR Brokerage Risk Management Committee.  Phil is also legal counsel to the OREF Forms Committee.

©2012 Phillip C. Querin, QUERIN LAW, LLC

Photo Credit

With the release of this year’s forms change just days away, we thought we’d take this opportunity to remind our subscribers about a couple of the RMLS™ supplement forms that are available and call out some of the upcoming changes.

Condo Supplement

The Condo Supplement gives listing agents the space to describe the condo building beyond just the unit for sale. There are fields for condo conversion yes/no, and the number of condo units in the complex.

Want to provide information about the condo association? The Condo Supplement makes this possible. There are fields for association name, contact information and web address.

There is also a field for pending HOA litigation yes/no. Keep in mind that the condo association information and pending litigation fields are kept private and can only be viewed by subscribers, meaning that they are not included in client reports.

New Fields Coming Next Week

• Storage Unit Number/ID
• Parking Space Number/ID

These fields will give the listing agent an opportunity to highlight the parking and storage spaces that go with the property. View the new Condo Supplement.

 Amenities Supplement

• Is your client an avid public bus commuter?
• Does your client have a child who rides a school bus?
• Is your client a pet owner who wants to live close to a park?

The Amenities Supplement allows listing agents to describe the distance from the property to different public features, such as parks, bus stops and shopping areas.

It also provides a field for easement information and a Walk Score! Many consumers are familiar with the Walk Score website, which rates neighborhoods for distance to walkable amenities, like shops, restaurants, transportation, etc. Visit walkscore.com for more information. The Walk Score field in the Amenities Supplement allows for the actual number of the Walk Score to be entered.

New Fields Coming Next Week For Residential Listings

• Property Type=FLTHOME – you can now indicate if the sale of a float home includes a slip and if so, the type of ownership.
• Property Type=PARTOWN – this allows you to show the percent of ownership included in the sale of the property
• Home Energy Performance Rating – you can specify the type of rating, score, and date of certification. The types of rating include EPS (Energy Performance Score), HERS (Home Energy Rating System), HES (Home Energy Scoring) and REM/Rate.

View the new Amenities Supplement.

Remember, supplement forms provide a Public Remarks field for you to provide even more information about a listing. Questions? Contact the RMLS™ Help Desk at 503-872-8002 or toll-free at 877-256-2169.

Photo Credits: Condo and Peninsula Park

This Week’s Lockbox Activity Increases for Washington and Oregon

When comparing the week of May 14 – 20 with the week prior, the number of times an RMLS™ subscriber opened a Supra lockbox rose 11.9% in Washington and 14.3% in Oregon.

To see larger version of these charts visit our photostream on flickr.