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How I Operate As A Buyer's Broker to find the "perfect home"
for you, my Client
 $$$$: I cannot start without the
price!
Loan Pre-approval Countless hours of time
can be saved by both the client and myself, if we can get the issue of price and financing
on the new home out of the way right away.
I like to have complete financial information on my client as soon as possible. A
loan pre-approval letter along with verification of source of down payment, is critical
for me to be able to perform professionally. Even if you are one of the fortunate people
that plans to pay cash for the home, it is best to have all information about the source
of funds, names and phone numbers of bank and account executives, etc., ready so that when
we turn in an offer we can substantiate the funds as part of our backup information on the
offer.
By resolving the issue of exactly what the client can afford to pay for a home, I
can begin my search in the proper price range. With a pre-approved client, any offer made
on a property, especially one a lot lower than the asking price, will be the same as an
all cash offer, subject only to the seller's home appraising to the price agreed upon.
Being able to make an offer without a contingency for obtaining a new
loan gives me a tremendous bargaining tool when presenting an offer. Having the client's
financial information with me at the presentation of the offer will often be the deciding
factor on the acceptance of the offer.
The Contract: Exclusive Authorization To Locate
Property (Buyer-Broker Agreement) California Association of Realtors; Form ABB-14
I do not require a retainer to sign the contract.
I am willing to sign the contract for a short period of time through the first
showing of properties as long as the client has pre-qualified financially.
This where the Buyer-Broker Agreement really comes into play for both the Buyer and
the Buyer's Broker.
- Advantage for the Buyer's Broker:
- The client has contracted with the Buyer's Broker to be his exclusive agent in his
search for a new home. Compare this with a traditional broker who knows that the customer
has gone up and down the street talking with all the realty offices and telling them to
find him something.
- Advantages for the Buyer:
- Since the Buyer's Broker knows he has a legitimate client, he is willing to spend all
the time necessary to locate all the best possible homes to show the buyer. With the
financial questions out of the way, the Buyer's Broker has all the tools he needs to
negotiate the best possible price and terms for the Buyer.
Client Information
The three most important things in Real Estate are:
- Location
- Location
- Location
Once we have price and location out of the way, we can proceed to the "wish
list" of features that you want in the home.
Finally, I can start looking at homes.
Research
At least one week is required to do a proper preliminary search.
- Obtain a list of all properties currently available that meet the criteria provided
by the client.
- Preview all properties and select only those that best meet all the client's
objectives.
Depending on how specific the area and price range is, I usually spend 20-40 hours
of research before the first showing of properties.
First Showing
Make appointments with property owners or their agents.
- Schedule a showing of properties
Suprisingly, if enough information was received from the client, experience shows
that 30% of the time the client will make an offer on one of these homes, as they are the
best of what is currently available, and because they have the "wants" that were
provided in the preliminary discussions.
- Listen carefully to what the client says while looking at the various properties and
try to identify the client's real "wants."
During this first showing, clients have the opportunity to get to know me and
observe the way I work. This gives them the opportunity to decide if they would like to
continue working with me as their Buyer's Broker, and extend the Buyer-Broker Agreement
for me to represent them in their search for the "perfect home."
If, after the first showing, the client has not seen any properties that interest
him or does not wish to continue to work with me, the contract will be terminated. The
only liability the client will have is that I will be the broker of record on the homes
shown to him on the first showing. If the client purchases one of those properties within
180 days, a commission will be owed to me.
If it is decided that we will continue to work together, these steps will follow:
- Extend the Buyer-Broker Agreement for a reasonable length of time.
- Thoroughly review all properties shown and try to establish a more defined list of
"wants."
- Price and Terms: solidify all parameters of client's financial desires and
capabilities.
The Hard Work Begins
Complete review of area. Locate all homes that might fit the client's needs.
- Review all homes currently available on the market, both those listed and those for
sale by owner.
- Contact all financial institutions in the area for foreclosed properties or those
that are going to be foreclosed in the near future. Tremendous buys can be made on REO
properties.
- Contact all listing brokers of available properties and check to see if they know of
any other properties, not currently listed, but possibly available.
- This is another advantage of working with a Buyer's Broker! Brokers who are very
active in listing properties in a particular area usually know of a few properties that
people are thinking of selling, but might not be quite ready to put the property on the
market or do not want to list it on the open market. When these brokers know that they are
working with a Buyer's Broker who has a client under a Buyer-Broker Agreement, they know I
am representing a real and qualified buyer and are not concerned that I will try to get a
listing on this property. Usually we sign a confidentiality and one time showing
agreement. This way we get to see properties that are not on the open market.
Second Showing
Usually, this showing results in one or two homes that truly represent your
"wants", and we proceed with making an offer.
If we are unsuccessful in locating the home that meets your "wants", I
proceed to the next steps:
Contact all Realtors in the area again and let them know exactly what I am looking
for.
If we find a particular area or group of homes that the client really likes, I will
map it out, pull the tax records, get the names of all the owners in that area and write
them all a personal letter letting them know that I represent a buyer interested in
purchasing a home in their area. In every neighborhood, there are usually a number of
people that are considering selling but are not quite ready.
Expand the area of our search.
Negotiations
This is where it all comes together. To a Buyer's Broker, the list price is the
seller's "wish list." Before I go to present an offer, I do a complete
Competitive Market Analysis of the area that includes:
- active listings currently on the market and how long they have been on the market
- sold listings for the past 12 months showing original asking price, selling price and
how long they were on the market
- expired listings showing the original asking price, the final asking price and the
number of days they were on the market.
Armed with this information, financial information on my client and a loan
commitment, I am prepared to enter negotiations on the house that may become your home for
many years to come. In essence, I am representing an "all cash" buyer!
My years spent as a sales engineer in the Aerospace industry negotiating
multi-million dollar contracts gave me a great base to which I have added 24 years of Real
Estate experience. I've been involved in the negotiations for and purchase of many
millions of dollars of commercial and residential Real Estate.
The only down side about having a lot of experience is that you must get older to
get it. Having an experienced negotiator representing you is the key to getting the best
price and terms possible.
Escrow and Closing
By this time, both the Buyer and the Buyer's Broker have spent many hours in the
search for the "perfect home." Making sure that all the paperwork, inspections
and other items required for closing are done in a timely and efficient manner becomes the
most important focus of my attention.
By entering into a Buyer-Broker Agreement, you become a client
instead of a customer, and we work together in finding the
"perfect home" for you at the best price and terms possible.
Please give me the opportunity to be your Buyer's Broker.
John J. Rygiol
Buyer's Broker Inc
*Member of NAEBA (National Association of Exclusive Buyer Agents)
*Member of CAEBA (California Association of Exclusive Buyer's Agents)
BUYER'S BROKER
John J. Rygiol & Associates
Exclusive Buyer's Brokers for ALL of California
499 North Canon Drive
Beverly Hills, CA 90210
800-683-2066
John@LuxuryHomeBuyers.com
CA Broker's Lic 00401374
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