Buyer Procedures For Agents

New Lead:
As leads are assigned, agents must reach out by call, text, and email within 24 hours. Read the notes for helpful information collected by the admins in order to avoid asking the same questions. If there is no note, they don't know anything.

Referred leads must be contacted immediately. Once contact is made, alert the referring agent (or admin if agent doesn't know who referred the lead) that you have contacted them. If a week goes by and the lead is not getting back to you, ask the referring agent to check in with the lead. Is it the correct contact info? Did they change their mind? Did their time frame change?
If it's a Craigslist lead, there will be something like "dkafjdsknafds32342@craigslist.com" in the email line. This is a working email and can be used to contact the person. Be sure to ask for their real email and phone number. A lot of people don't realize it's coded.
If it's phone lead, be sure to call and text. A lot of Gen Z DOES NOT check their voicemails and a lot of Boomers DO NOT text. This way, you can help them if they don't do one or the other way.

The lead will be assigned in Command (our CRM). If there is no note on the lead after 24 hours stating that the agent reached out, the lead will be given to someone else. We need to be sure you're contacting the leads you get.

Notes in Command are required. Your future self will be thankful you took notes and you won't have to ask the same questions over.
At first contact, it's a good idea to pre-qualify the buyer with some questions:

"Are you working with an agent?" Some buyers will still call around despite having an agent already.
- If yes: "Did you sign paperwork with this agent?" If they signed paperwork, you cannot legally work with them because it's considered soliciting business from another broker. Get their agent's name and company, any questions they have on the property, and pass it to the listing agent of the property they called about.
- If no: "Okay, then you're not really working with them and I'm free to discuss properties with you."
"Why are you moving?" This question lets you know the motivation. Closer to family, new job, need a bigger house, etc will all tell you what you should be looking for in properties.
"How soon are you looking to move?" Some people have leases they don't want to break, or need to sell first (in which case get the listing) and this will help with you determine how serious they are. It's fine to spend time talking to someone who is preparing to buy, but if they're really far out, it might not be worth showing them houses now.
"Are you buying with cash, or have you spoken to a lender yet?"
- "Yes we have spoken to a lender" Ask for pre-approval ASAP. Do not show a house without pre-approval. You don't know what they can afford, but a pre-approval can give you a good estimate. Serious buyers will not baulk at getting pre-approved.
- "Not yet, we want to wait until we find a property we want to put an offer in on" A lot of sellers like to see a pre-approval when submitting an offer, and real estate can move very quickly. If you have to wait even a day for a lender to get a pre-approval, there's a chance it could be under contract already. Plus, with a pre-approval in hand, you know what they can afford from the get go so you're not wasting time showing properties out of their price range.
"Are you interested in any other properties? I can look up info for any property." Prove yourself helpful and on their side from the start. People hate agents because they're pushy and trying to make a sale. Prove you care about what's best for them and you'll have good outcomes.

If they seem ready to buy, set up a buyer consultation in A PUBLIC PLACE. It's very important to not meet strangers at properties or after hours at the office. Always keep your safety the top priority. If you feel unsafe about something, make changes so that you do feel safe (aka change location, have someone go with you, refer the lead to someone else). Always let someone know where you are going, the contact info of that person, and when to expect you back. Create an Opportunity in Command to better track your numbers and for a way to easily follow up with tasks.

If they are not ready to buy, set up a reminder to call them in 2 weeks, a month, 3 months, whatever the case is. Keep in touch with them. The average lead conversion is 8 to 12 check-ins before they sign a contract. Continuing to follow up with leads will keep your pipeline full.

Signing a Buyer:
Download the full compliance checklist here: link (Oct 2021)

Once the buyer is ready to sign, the Opportunity will tell you what you need to get signed. There are checklists built into the phases/stages, as well as a checklist that gets sent out with weekly emails.
Create a loop in Dotloop with "Buyer name - buyer" since they don't have a specific property yet. Once in that loop, pull from templates to ensure you are using the correct documents that the team has filled out already with the basics. Pull from the "DN Team Buyer" templates. Not all of those are applicable, so you need to think what applies.
- We need to be able to quickly identify the loop and putting only the house number, street name, entity name AND LAST NAME of the main contact, as well labeling it as a listing or a buyer is important. The rule is one loop per transaction. We have flippers who will buy and sell the same property in the same year, so labeling as buyer and seller prevents confusion since those need to be separate transactions. If your listing client is also buying with you, that needs to be two loops since they are two transactions, despite being the same client.
If the buyer is a Corporation, LLC, or LP; you need to have an operating agreement on file to prove they have authority to sign for the company. It's very possible that Joe Shmoe would sign all the paperwork, get the property under contract, and then you find out they can't sign for the company and they're cutting you out of the deal. It's to protect your time and to be sure you make some money.
These documents are required before you start showing properties. Use the document dictionary if you don't know what it's asking for.
- Pre-approval or Proof of Funds (POF) in hand so you know they're serious and submit it with an offer (this is from their bank/lender)
- Buyer Agency Contract (or Non-Exclusive Buyer agency Contract): THIS IS HOW YOU GET PAID (exclusive link) (nonexclusive link)
- Consumer Notice (link)
- Buyers estimated costs done at highest pre-approval price so they know what they're looking at bring to the table (link)
- KW Disclosures (team specific, you'll have to add a spot for it on the documents tab of the Opportunity) (link)
- Lender Choice Sheet (link)
- "For your protection, get a home inspection" sheet (link)
- "Protect your family from lead" EPA brochure (link)

Active Showing Buyer:

Move Opportunity from "Appointment" to "Active" tab.
Once a buyer is ready to start showing, you really need to have a POF or Pre-approval in hand. It doesn't matter that it's in their email, you need that ready to send to listing agents when you send an offer.
Schedule showings in an order that makes sense. Create a logical route (aka all in one neighborhood at a time). It's okay to take buyers out a few times in different neighborhoods of interest. When scheduling, read the Agent Remarks for any tips and directions. Take note of sticky doors, pets, and tenant occupied properties so you can respect the seller's property.
Schedule with the proper person as identified on the MLS agent remarks. Sometimes, it's not the listing agent. Sometimes it's ShowingTime or another agent, or the seller themselves. Do not annoy the listing agent by not following the proper channel of scheduling.
Knock/ring bell loudly in case someone is in there. Even it it's vacant. Open the door, announce yourself, and listen. If you think it's safe, proceed in.
Make sure all lights are off, all doors and windows are locked, and property is how you found it. If anything seems off, let the listing agent know ASAP. This can be loose steps, open windows in the winter, any damage that looks recent, and if there are any signs of pests.

Writing an Offer
This is the most important step for any real estate transaction. PLEASE be sure all information is correct before submitting it. Please also see this video by Dustin on Submitting an Offer if you need more detail.

You should ensure you have a BAC, estimated costs at the offer price, and the SD/LBP/OGM signed before having they sign the AOS.
Pull the most recent AOS from your templates. Put it in a new folder in the established loop for the buyer titled "For Closing" with your SD, LBP, and OGM that are specific to that property. That way, if the offer doesn't get accepted, just archive the whole "For Closing" folder.
Make sure the property address is correct and the parcel ID is the one that matches the Allegheny County Records.
On the "Buyer's Relationship with a PA Broker" Spot, you should have the Broker's info filled in with license number and address (admins have it saved in your templates). For the broker check marks, you should select "Broker represents Buyer Only." The only exception to this is if the agent representing the seller is out of our KW office, or the KW North office. The KW south office has a different broker since KW is a franchise system.
On the agent side, you should have "The Dustin Nulf Team (MLS ID 218061)" on the first line, and second line should have your name
(the agent writing the contract). On the checkbox, select "Buyer Agent with Designated Agency". The only exception is if you also represent the seller, then select Dual agency.
For the seller's relationship with a PA Broker, fill out the company (found on the MLS), and select the appropriate checkbox. Remember, it's only Dual broker if the agent is in our office or the North KW office. It's NOT dual broker with the South office. If they are not represented by a broker, select No Business Relationship near the top of that box. Don't select the any seller agent designation unless you know for sure or it's on the MLS.
On the price, you put the number and also spell it out in case some quality of the PDF is lost. Everyone needs to be clear about what the price is.
Line 7 is the hand money the client will be turning into the office as a deposit. This is the amount that is coming out of their bank account so please remind them to turn it in within the time frame (usually 5 days but that can be altered). 1C specifies who holds the hand money, and it should be the broker for buyer. A good rule of thumb is to put down 10% of the purchase price, but not less than $1,000. If the property is less than $30k, its usually normal to put down $500. A higher amount makes your offer stand out.
7B (line 75 on the 2020 AOS) has the inclusions. Make sure you are including anything listed on the MLS and anything else the buyer wants. Could be a home warranty, washer and dryer, stove, microwave, awning, patio furniture, RING doorbell system, automatic garage doors, dining room table, etc. Alternatively, 7D is exclusions. If there are big items the buyer doesn't want, that needs to be listed, especially if the property is vacant. Trash, old tires, swing sets, old cars, gym equipment, broken appliances are all examples that you can ask the seller to remove from the property.
8A is your financing contingency. THIS IS THE MOST IMPORTANT ONE! If the buyer is getting a loan, that box needs to be checked that they are electing financing. The loan amount should be filled in to the best of your ability.
8B is the conditional approval for the mortgage. THIS NEEDS TO HAVE A DATE IN IT. It's typical to see it about a week before closing. If there is no date, technically you are saying the buyer doesn't need to get financing. THIS IS A HUGE DEAL. If this is not met, you can lose your client their hand money.
Section 12C is where the buyer is selecting what other contingencies they want to have. They are electing (initials on the left) or waiving (initials on the right). They cannot leave one blank. We recommend putting a sewer camera scope on there too.
Section 26C, there is a line that needs to have 15 days in there. This is better for the buyer than the typical 180 days because if there is a lawsuit, the seller has to file in 15 days to get the hand money.
On Section 26G, the box needs to be checked so if things go bad, the seller cannot sue for more than the hand money amount. THIS IS ALWAYS CHECKED when we represent the buyer. It limits them to only winning the hand money.
On the last page, if you have any other addenda, check it off. If it is not checked, it is not part of the agreement. Any additional terms should be on 32B. It's typical to see things such as a home warranty, if units need to be vacant, or any additional information needs to be given such as surveys or seller's disclosure.

Buyers Under Contract Procedure:

Agent must ensure all paperwork is signed by everyone needed. This includes spouses, business partners, and anyone going on the deed. If there is a Corporation, LLC, or LP buying the property; an Operation Agreement must be on file to show who has authority to sign. Check your compliance checklists for proper paperwork.
Agent to alert admin that the property is under contract by email, ensuring the admin has all contact info for the client(s). You can email the client contact info, put it on the BAC, or have it in Command.
Admin to create (or move) Opportunity in Command from "Active" to "Under Contract". This will put it in "Inspections" under the "Under Contract" stage.
DO NOT ADD ANY OTHER AGENTS TO THE LOOP. Only send PDF's to the other side of a deal via email, not through Dotloop. This is annoying on the receiving side as agents always have phishing scams, in addition to potentially merging loops which is a compliance nightmare. Technically merging loops is illegal so don't do it.
Buyer will pick a title company. Legally, it's their choice. You can recommend companies, but it's their choice. See vendor list for suggestions. Admin will ensure it gets submitted to the title company in the time frame from the contract. Email example:
1. "Hello! I would like to place a new order for 123 Main street. Please cc (admin name and email) on anything in regards to this property as they can help you out faster than I can. We are aiming to close on (date). Listing agent is: (name, email, phone). My buyer(s) are (name, number, email). Lender is (name, number, email)."
2. Don't cc the listing agent on the email if you are giving client information. Most agents won't contact your buyer directly, but some will and that's not in your or your client's best interests. Send them the title contact info after you receive it.
Admin will fill out Key Dates sheet to ensure agent has the timeline correct and touch base with the client to be sure they are turning the hand money into the brokerage.
Agent will give buyer a few home inspectors to call, if the client is doing inspections at all. Agent is suggested to go to the inspection, but it's on the buyer's schedule. It needs to be done within the allotted time frame. Home inspectors can be found on the Vendor Sheet. Be sure to prime the client (especially first time buyers) that every house has a huge laundry list of issues, and it's the inspector's job to mention everything. The buyers need to decide what is a deal breaker for them.
Once home inspection is complete and buyer had read through the report, the buyer will discuss with the agent what they want to ask for to be done by the seller. This will be written up on a "Change in Terms Addendum (CTA)" and sent to the listing agent within the contract timeframe as detailed on the Key Dates sheet. Admin will ensure the home inspection report is in Dotloop. Sometimes it's easiest to just get a price reduction, but other times the buyer wants repairs. Just remember you are looking out for the buyer's best interest and those needs are different for everyone.
Agent will let the Admin know these changes, and Admin will make changes to the Key Dates sheet after inspections are negotiated.
Admin to move Opportunity from "Inspections" to "Appraisal" while still under "Under Contract" tab.
Agent and Admin will be in touch with the lender to ensure the appraisal has been ordered, and be sure to tell the buyer to check their email for the appraisal report. Some appraisers don't send to the agent. Upload the appraisal to Dotloop, and send to listing agent. If the value came back low, negotiate with the listing agent on what to do. Sometimes it terminates, sometimes the price reduces, sometimes the buyer pays the difference. It depends on the situation.
Admin will make commission statement and make sure a home warranty has been ordered, if applicable. They will send it to title company and check in with what they are still waiting on.
Admin will ask listing agent about utility companies and pass onto the client to switch over as soon as a closing date has been chosen.
Admin will schedule the closing once the it seems like it's possible.
Agent to schedule final walkthrough, making sure that the property is in acceptable condition. Have the client sign the PRE SETTLEMENT WALK THROUGH FORM (link)
The title company will send out the ALTA or HUD and agent and admin will both look it over for accuracy.

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