(from http://propertywire.ca/component/content/article/101-top-tips/1159-a-bra-supports-everyone.html)
While you always have your client’s best interests at heart, you are in business to make money. And when it comes to making money, there needs to be regulation and processes in place to protect the interests of all involved.
In real estate, investment of your professional time into a client literally translates to your bottom line. Time, in the truest sense, is money- especially when acting on behalf of a client looking for a home.
In all relationships, communication is the key to success. The relationship between client and real estate professional is no different. What a Buyer's Representation Agreement (B.R.A) does, is lay the foundation and the framework for this relationship- and write out the expectations.
The Real Estate Council of Ontario (RECO) has this advice for consumers: “A representation agreement defines the nature of the relationship between you and the brokerage, including the broker or salesperson...The agreement should be in writing in order to protect the interest of all parties...Your broker or salesperson wants to provide you with the best service he or she can. To make the most of this relationship, it's important to clarify your needs and expectations. To avoid misunderstandings later on, it's important not to make any assumptions. You should also take time to ask what the broker or salesperson expects from you and what your obligations are.”
Consumers are well familiar with listing agreements, but what if they balk at signing a B.R.A.? Here are some ideas on how to persuade them, while protecting both their interests and yours.
Don’t Hard Sell
Like a nervous soon-to –be wed person asking their betrothed to sign a pre-nup, you don’t want this entrance of contract and documentation to change the tone of the relationship. Rather you want it to solidify it- and essentially give it room to grow. In the business of people, you must constantly be fostering and nurturing relationships, mindful not just of the deal at hand, but at future business and referrals.
Education is Your Ally
Many consumers do not understand the implications of a B.R.A., and may be suspicious and reluctant to sign. Make sure that they understand everything clearly; direct them towards third party information about B.R.A.’s so that they feel as though they are in charge of their decision. Transparency is key in expressing expectations on both sides, because it not only builds confidence by means of education; it also builds trust- which is the essential ingredient to a long-term relationship.
Your Business Is Not Transactional
You are building a relationship here and, in theory, you will only be able to commit yourself fully if you feel protected. Real Estate Professionals are bound to constantly honour the interests of a clients above their own, but you can present this agreement to the client in such a way that communicates your dedication and intent over the long term.
Feature and Benefit
Sales 101- you present a feature to a client with an associated benefit. The feature is exclusivity with you- the benefit is your spectacular service, attention to their needs, and the chance to find the home of their dreams for the best possible price. If they will commit to you, you will commit to them. This is not quid pro quo, it is articulation of value.
Client vs. Customer
The language here might be one of your greatest tools. Although the words are essentially synonymous, in Real Estate they most certainly are not. In signing a BRA, a customer blossoms into a client, and obligations are different.
Also, from a consumer standpoint, there is a distinction. It is a passage from transaction to relationship, and the value add is implied in the nature of the relationship. Customers are the revolving door; your client base gets your undivided attention.
Your Knowledge is their Knowledge
As a Real Estate Professional, you have specific training and access that make you well equipped to be the go-to for buyers. The key about your knowledge, is access, and signing a B.R.A. is the bridge.
Peace of Mind
By signing a B.R.A., you are giving your buyer the option for peace of mind. An agreement in writing serves as a guarantee that they will only get the very best- and that there will be full disclosure along every step of the way.
No Obligation
Make sure that clients know that they are not obligated to purchase anything. They are simply agreeing to work with you towards their goal of purchasing something.
Matchmaker
In signing on with a Real Estate Professional, buyers will be able to have listing on the Buyer Registry Service, so that sellers are able to know what client property requirements are.
Again, this is about access- and about articulating the value of access.
Dialogue, not Iron Fist
Clients may be more willing to sign an agreement, if you are willing to negotiate on the length of the contract. Try and understand their reasons for their feelings. Having an open discussion with the option of committing to a shorter length, may increase the comfort level- maybe even enough to leave the length of the contract as is.
Buying or Selling, through an agent or by yourself (http://www.propertyshop.ca/), my office can assist you with your real estate transactions as well as your Wills & Estate and Corporate needs!
No comments:
Post a Comment