Professional · Baltimore, MD · Member since 2010 · 79 posts · 47 votes
Let me share with you that tonight I nearly died. I sat through a mind numbingly boring 2 1/2 hour meeting, shadowing a buyer's agent, just to learn one thing. To learn simpler ways in explaining real estate sales contracts to a client.
I'm no lawyer, but in the ever going journey to make my customers/clients lives easier, I come to you all with a contract question.
How do you explain a real estate sales contract in simple laymans terms to clients?
What do you know about speaking simply without jargon?
Do you even do that in your business? Why or Why not?
Great question. I have no idea what your purchase agreement looks like but our California RPA is 10 pages. I have taken 3 classes with an attorney at our board that are about 4 hours long on the purchase agreement. That said I only explain it to the depth that my buyers/sellers want. If I'm working with an engineer I go all in. If it's a laid back Joe that would rather invite you in for a drink than talk business I know I don't really have to explain it at all. Check out the D. I. S. C. test. And always ask your prospects what they do for a living as this is a sure fire way to tell what kind of personality they have.
Keep in mind that knowing your contract and he code of ethics will help your more than you know when it comes to negotiation with both your own client and the other party.
Great question. I have no idea what your purchase agreement looks like but our California RPA is 10 pages. I have taken 3 classes with an attorney at our board that are about 4 hours long on the purchase agreement. That said I only explain it to the depth that my buyers/sellers want. If I'm working with an engineer I go all in. If it's a laid back Joe that would rather invite you in for a drink than talk business I know I don't really have to explain it at all. Check out the D. I. S. C. test. And always ask your prospects what they do for a living as this is a sure fire way to tell what kind of personality they have.
Keep in mind that knowing your contract and he code of ethics will help your more than you know when it comes to negotiation with both your own client and the other party.
First step is to know the agreement yourself. That may seem like a silly thing to suggest but it still amazes me how many agents don't know all the intricacies of a RE contract. Once you know the agreement like the back of your hand, I find its a lot easier to explain it to a buyer and/or seller in non legalize terms. I typically focus on the fill in the blank or option selections and not all the clauses that are standard. You definitely want to avoid reading the agreement word for word or you'll be there forever. Have a pre-canned explanation for sections and you'll be able to get through it pretty quickly. Unless you are dealing with first time home buyers/sellers, they'll have an idea of what you are describing. Hope that helps!
Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
11y
I use dotloop and send it via email. In the email I cover the basics of what we discussed (price, terms, closing etc) and ask them to call before they electronically sign. Then I walk them through in pain English what the sections are over the phone.
Professional · Baltimore, MD · Member since 2010 · 79 posts · 47 votes
11y
Wow, great stuff guys!
Don't know what I'd do without this place!
It seems to all come down to knowing the contract well and from there I'll understand how to create short plain speak for it. Am I right?
@Brett_Synicky Also, will look into the D.I.S.C personality subject more. I took a mock test and it said I was a High S / High C. Real interesting stuff.