Building Your Real Estate "Dream Team"

We took a break from the interview style of Season 2 to disuss why and how you should build your "Real Estate Dream Team."  

There are potentially over 30 people involved in a real estate transaction and the agent is the connection that can enhance the experience for our clients.

Transcript

0:02

Welcome to real estate. Common sense. I'm your host, Lisa Spencer international trainer real estate, coach and author of the book"Real Estate Common Sense." After you master the basics of launching your real estate business, it is essential to partner with other professionals to ensure a smooth transaction for consumers. We have landed here at episode five, season two. And although we have had wonderful interviews with amazing professionals, we have received feedback that many of you felt we skipped over how to find and develop relationships with the professionals that will be the key players on your real estate dream team. So today let's back up a bit and review how you can find the perfect partners and create a dream team of professionals that will support your clients and your business. We have to refer back to our very first podcast. Selecting a broker and joining teams for some perspective on how to build relationships with professionals, when you are a brand new realtor. Selecting a broker for the launch of your real estate business is crucial. And unfortunately many agents are so excited about getting started or like me are influenced by friends and family and launch their business without doing much research. As you begin your real estate career, you're going to lean heavily on your broker and fellow agents for referrals of top professionals. Then as soon as possible, it's important to start building a dream team of your own. We launched season two with four of the most important professionals realtors need to have on speed dial. It took the feedback from a few of our listeners, for me to realize that not everyone has the resources and background necessary to develop and maintain a real estate dream team. This could easily snowball into a two hour episode. So we'll limit our conversation about each team member of the dream team to just a few questions. We want to answer what value do each of these members bring to our clients? And how do we introduce these team members to our clients? Then how do we vet them? How do we know we are recommending someone who will provide our clients with the same level of service as we do. And lastly, how do we become a member of their dream team and expand our potential for growth? We started with the mortgage lender who should be involved with you and your client from day one, then the title company that will be your first stop when you've executed a contract. And then we spoke with a credit analyst, which may be a detour for some clients that they need to take on their road to home ownership. We also reviewed the valuable role of the home inspector. We'll start with these team members and then review other members of my ideal dream team, which is by no means a comprehensive list as there are potentially more than 30 professionals involved in a real estate transaction. Here's a list of professionals that you may want to include on your real estate dream team. A, mortgage lender. We already talked to one of those, a credit analyst. A, title company. And attorney and a home inspector. A, transaction coordinator. A photographer videographer. A home stager. A painter, a roofer, a handyman. And a cleaning crew. A, surveyor and appraiser are also helpful. And,, who can miss the insurance agent? And lastly, someone who specializes in 10 31 exchanges, I could go on, but this is a lot of ground to cover. So we'll start with the mortgage lender and credit analyst. You're not going to have to search very hard to find a mortgage lender and the value they bring to the home buying experience is pretty self-explanatory. Many consumers may come to us with an already established relationship with a lender, but that should not prevent us from introducing them to our team member. Having a relationship with a credit analyst can also help ease the blow to a consumer that gets that news, that their credit score will prevent them from purchasing. Helping someone navigate credit repair can elevate your value to a buyer and generate referrals from grateful clients. It won't take long for you to experience the nightmare closing delayed by an incompetent lender. And you can use that experience to encourage your clients to get a second opinion with a lender that you trust. The role of the lender and the agent is governed by RESPA. There are stringent regulations on how we can work together. So seek the advice of your broker before entering into any co-branding or co-marketing arrangements. Let's move on to the title company and or attorney. The title company and or attorney ensure that your buyer is purchasing a home without any title encumbrances, such as liens or claims from previous owners. Your broker may have an affiliation or preference for these services. And at the end of the day, there are only a handful of title insurance underwriters. So the value to you is the representative that is at the closing table. Ask around and see who other agents prefer. Take a stand for your clients and request the closers that you know, will be patient with a detail oriented buyer or an emotional seller. Don't allow a flustered closer to sour inexperience that you have taken months to bring to fruition. On the other side of that coin. Don't forget to thank a helpful patient and knowledgeable, closer that helped make you look good. A thank you card or an invitation to lunch can go a long way in building rapport and a solid relationship. The same advice applies to attorneys and their paralegals. An attorney on our dream team is essential. Even if we use title companies to close in our state. Find a real estate attorney that can help with an attorney review or that you can refer your client to when they ask questions that are beyond your scope of expertise. Legal questions arise around easements, commercial usage and other details that could cost you your reputation or even your license. Knowing when to step back and refer your client to a responsive, experienced, and helpful attorney. Is a protection. That demonstrates your professionalism. We all know that we should recommend a home inspection. So a home inspector needs to be on our dream team. Surprisingly many consumers are not aware of the home inspection process or the costs associated with the home buying process. Doing a buyer consultation is critical and alleviates confusion. Anyone applying for an FHA loan is required to sign a form titled"for your protection get a home inspection." Because many consumers confuse the simple FHA appraisal guidelines, as an inspection. Home inspections, protect consumers and should never be overlooked or waived. Establishing a relationship with a thorough professional and licensed if required by your state) home inspector is essential. The buyer should attend the inspection and the inspectors you recommend should provide a systematic analysis of the property. As well as give maintenance instructions to critical systems and other information. If allowed, recommend that your buyer record the location of shutoff valves, filters that need to be replaced and general maintenance suggestions that the inspector makes. We certainly don't want the inspector to be an alarmist, but advocating for concerns around safety hazards and subpar construction is something we need to do in our client's best interest. Even new construction homes should be inspected. Next up a transaction coordinator, marketing assistant, or virtual assistant. As agents learn to leverage non-relationship tasks. The role of a transaction coordinator, marketing assistant, or other type of virtual assistant are introduced to the real estate dream team. Some agents leverage transaction coordination through services offered within their brokerage. Which can free up time for them to build their business. The one caveat is that it is necessary, that agents understand the steps from contract to close and how to navigate them. And that the agent maintains the communication with the client. Setting appointments and coordinating inspections is fantastic leverage, but a client should never feel that they got dumped after going under contract. Likewise a seller should still be receiving personal updates from their agent. Even if the design and production of marketing materials is leveraged to an assistant. If you are using a virtual assistant marketing assistant or transaction coordinator, it is still your responsibility to ensure your buyer or seller is receiving a standard of service worthy of their referrals. Speaking of marketing, two valuable members of the real estate team are: a photographer/ videographer, and depending on the home, a staging company. Today's consumer uses the internet to preview homes. A poorly photographed or poorly staged home can cause your seller's home to be unfairly eliminated. Not all photographers are created equal. It is important to do some due diligence upfront to understand the copyright restrictions, your photographer imposes. Once the photographs are delivered to you, can you use them for marketing this listing and in marketing materials going forward? If they take photos of the neighborhood amenities, will they permit you to catalog those and use them for future listings? Even if you don't hire them to take a new listing's photos. These are important things to iron out and clarify IN WRITING. Our team likes to get an unconditional release for all photos, but this can be a big ask. Staging is not decorating. Sometimes a third party is required to help a seller stage their home, especially if they're a close friend or family member. Staging recommendations can be obtained by forming an agent committee made up of your colleagues that can preview the home and make recommendations for you. Or you may want to invest in a staging company where you share the expense with the seller. If they're willing to invest in a staging service with a track record of increasing sale price after listings are prepared for market. Whether you take photos with a quality camera and a good eye, or you invest in professional photography and staging. This all will reflect how your marketing services are perceived. So invest wisely. Another service that comes under our umbrella is preparing vacant listings for sale. Over the course of my career, there've been many times I have met sellers in a vacant house. Perhaps an investment property that has been rented for years or sadly, sometimes a home that has been left to them in an estate of a friend or relative. Many times these sellers don't have the time or the desire to prepare a home for sale. So they will rely on you to help them coordinate the services of a painter, a roofer. A handyman and a cleaning crew. Working with a licensed, bonded and insured, tradesman is essential. Looking for low bids is not where we focus. We require quality work and timely delivery. You may want to search for a local roofing company that is willing to work with the lien and then be paid at closing, or you may want to include a cleaning service as a part of your marketing plan. Buyers also appreciate recommendations for a good painter, roofer or handyman. And I have gifted both handyman and cleaning services as a closing gift to buyers under some circumstances. These trades people are local, small businesses, just like we are. Growing your network with fellow business owners creates community and enhances your value in the eyes of buyers and sellers. So two often overlooked, but important contacts are a surveyor and appraiser. Appraisals are ordered by the banks through a clearing house system that does not allow much room for making relationships with appraisers. We also have a crisis in the availability of appraisers, as many of them are aging out of the profession. And the average income level is just not attractive to young entrepreneurs. Nonetheless establishing a go-to appraiser for difficult or unique properties is important. Having a good contact for survey questions is also necessary. There are times when properties have been passed down through generations. The original property may have been subdivided or have easements that the seller isn't even sure of, a, survey is a material aspect of a property. And if there are doubts, it is better to confirm things like: is there a shared well or septic system or the easement for access to the river for the neighbors? You may only use the services of a surveyor a couple of times in the course of your career, but they will help you save a transaction and, or your reputation. Having reliable, competent and available professionals that consult with your clients can enhance your value. Some of these consultations should happen before an offer is made. Don't guess if something seems off. Stay in your lane and refer to the subject matter experts. One such expert is becoming an essential member of every agent's team. And that is the insurance agent. The insurance costs in some properties can make a difference on whether your client can afford a home or not. Having a trusted insurance agent, especially in coastal areas can save a lot of headaches. Understanding how local properties are impacted by ever-changing insurance guidelines is important. Referring your buyers to a trusted insurance agent can help them evaluate when a higher deductible or replacing a roof could actually save them money. If you can establish a hotline with a great insurance agent that will walk your buyer through insurance costs before they make an offer; it will save you the embarrassment and escrow dispute over a canceled contract, once cost-prohibitive insurance rates are uncovered. Scheduling a semi-annual lunch with your favorite insurance agent will help you explain the impact of an aging roof adjustment, flood maps. And the ubiquitous credit score. And all of these have an impact on the cost of insurance policies. Having a basic understanding of insurance trends will help you save your clients money. Which brings us to the last professional we will review. Someone who specializes in 1031 exchanges. A 1031 exchange as a vehicle for tax savings utilized by investors. A 1031 exchange is not available for a homesteaded property as a homestead property often qualifies for a different type of tax savings. A 1031 exchange allows an investor to exchange properties, and delays the payment of capital gains tax. But there are very strict guidelines that must be followed, including the crafting of the offer. Therefore, the minute someone suggests that they would like to do an exchange. You need the advice of a 1031 exchange intermediary. Even more importantly, if a consumer comes to you about selling an investment property, perhaps one they inherited, you can provide enormous value by introducing them to a service that can explain the process and perhaps complete a 1031 exchange for them. We will go into much more detail about this in our specific interview with a 1031 exchange intermediary. Thank you to our listeners who suggested we review WHY we are interviewing the real estate dream team, and hopefully we have motivated you to start building one. Remember to lean into your colleagues and your broker from recommendations until you can develop your own contacts. We hope you enjoyed this catching up episode of real estate common sense, season two, and our review of the key players on your real estate dream team. We invite your comments and suggestions for future episodes, you can contact us through our website realestatecommonsense.com. In our next episode, we will interview Melissa Gilbert with right hand services. This is a service which provides transaction coordination and other administrative services for agents. And this episode promises to be content rich and informative. So until then, This is Lisa Spencer, sending love and wishing you success.