PREMIER SERVICE COMMITMENT DETAILS FOR BUYERS

(as of May 20, 2005)

Premier Service Buyer Commitment Point #1:
As a Real Estate Professional, I will conduct counseling and information sessions to identify your needs and goals and to plan a property search.

Activities / Details:

1. Discuss the GMAC Real Estate value proposition.
2. Present the Premier Service Commitment document.
3. Assure client of:
4. Quality and customized service targeted toward their needs;
5. Continual and timely communication, accessibility and responsiveness;
6. Service delivery at the levels agreed upon;
7. Access to special programs (in place and anticipated);
8. Our capacity for consultation, advice and information;
9. Our personal and company commitment to caring customer service.
10. Provide opportunity for the client to offer feedback and input on the nature and scope of service commitment throughout the purchase process.
11. Identify and list “additional needs” on service commitment document.
12. Provide written service commitment and provide client with copy that includes contact numbers and data to ensure ease of accessibility.
13. Inform buyers that an independent third party company will be contacting them after settlement to solicit their evaluation of our real estate services.  Encourage their participation and candid feedback as to how we can improve our service.
14. Consider providing a copy of the survey early in the transaction so that they might anticipate and recognize its arrival post-sale.  
15. Invite direct and written communication from the buyers that might serve as a testimonial. 
16. Share with the buyers the results of past surveys and share your commitment to build your business by offering quality service and a willingness to be held accountable.
17. Provide the buyer with a Home Buyers’ Kit (or equivalent).
18. Provide a list of the critical steps and stages that most prudent buyers follow. 
19. Review access to information about properties on the market today.
20. Review local procedures of setting appointments, presenting offers and securing answers to critical questions. 
21. Discuss the interaction anticipated or appropriate with sellers or sellers’ agents.
22. Determine the motives and priorities that bring the buyer to the marketplace.
23. Ascertain the level of prior home buying experience, if any.
24. Identify all who will be involved in the home buying decision.
25. Prepare, with buyers’ input, a description of the desired property.
26. Isolate the attributes of the property that allow for some flexibility in the search.  Determine the features that various members of the family feel are important.  List the special needs…current and future…to include in the property search
27. Identify the desired timeframe or schedule for selecting and acquiring a property.
28. Identify properties or areas previously viewed by the buyer(s).
29. Compare and contrast the information and advice already secured with the realities of today’s marketplace.
30. Warn of the risks of taking advice from “well meaning” but potentially “less informed” advisors / friends.
31. Emphasize the importance of a successful team relationship between buyers and their agents. 

Premier Service Buyer Commitment Point #2:
As a Real Estate Professional, I will offer to arrange a pre-qualifying or pre-approval meeting with a lender to determine affordability range.  

Activities / Details:

1. Determine what financing programs the buyer used in previous property acquisitions.
2. Inquire as to the terms of financing the buyer is presently seeking.
3. Describe the process of pre-qualification and / or pre-approval.  
4. Share the role of the agent in the loan process (if any).
5. Arrange for buyer to meet in-house loan officer, if applicable, to discuss financing.  
6. Review the role and involvement of the mortgage lender / bank representative.
7. Share specific questions and key points of inquiry when dealing with the lender.

Premier Service Buyer Commitment Point #3:
As a Real Estate Professional, I will commit to priority availability for meeting your needs and schedule for property research and showings.

Activities / Details:

1. Describe the role of a seller’s agent and how buyers are impacted through this representation.
2. Provide written summary of possible agency relationships in marketplace.
3. Compare and contrast these relationships to those available the last time the buyer was active in the marketplace.
4. Identify the buyer’s understanding of prior agency relationships whether it be as a buyer or seller.
5. Provide state-mandated forms and documents related to agency relationships.
6. Provide supplemental visuals, handouts and materials to more thoroughly explain agency relationships.
7. Identify and share vulnerabilities of improper actions by real estate licensees.
8. Clarify the role of the buyer’s agent, the seller’s agent, and those of the agent’s broker.
9. Identify the role of the other agents within the office of the buyer’s agent.
10. Explain the role and procedures of the Multilist.
11. Invite buyers to be prudent in guarding confidential information and caution them to secure your advice on such issues.
12.  Advise buyers as to the proper procedures when dealing directly with other agents, sellers, and the public at large with regard to their property search.  
13.  Present, review and thoroughly explain the “buyer’s representation agreement” and its provisions (if applicable).
14.  Provide ample opportunity to ask questions, seek advice and discuss the ramifications, requirements and obligations of the buyer’s representation agreement.
15. Identify the degree of urgency the buyers have in securing a property.
16. Discuss the availability of property within the targeted price range and the importance of prompt review and consideration of properties.
17. Identify the desired schedule for viewing properties, as well as who will first view such properties.
18. Determine the plan of responsiveness should the agent locate a potential property.
19. Provide a list of optional days, times and schedules for viewing property.
20. Discuss the implications of market conditions and buyer(s)’ availability to view new listings.
21. Establish backup plans should all the decision makers not be immediately available to view properties.
22. Agree upon a communication system and mode along with the minimum data necessary to be shared when a new property comes available.

Premier Service Buyer Commitment Point #4:
As a Real Estate Professional, I will offer access to community and property information.  

Activities / Details:

1. Determine specialized needs and arrange for interviews, meetings, as needed.
2. Explain the role of the MLS; ensure optimal use / participation in.
3. Provide “Trailing Spouse” information, as needed.
4. Research and make use of any local Web sites.
5. Provide appropriate school statistics.
6. Make use of any public government information sources / venues.
7. Access and make use of local utilities, Chamber of Commerce, current events, etc.

Premier Service Buyer Commitment Point #5:
As a Real Estate Professional, I will complete a market search to identify properties consistent with your needs and price range.    

Activities / Details: 

1. Identify the general characteristics (profile) of acceptable properties.
2. Review of checklist of property features dealing with the property itself, the area and the price range, that would isolate the most likely property for the buyer.
3. Identify characteristics/features that provide room for flexibility and expansion of search parameters.
4. Openly discuss the criteria that will make a property the most desirable candidate.
5. Establish a process that will be followed for efficient property analysis and consideration.
6. Provide a checklist of property sources that will form the basis for initial search efforts (for example:  FSBOs, expireds, builder properties, repossessions, unlisted properties, etc.).
7. Arrange for the efficient transmittal and/or exchange of pertinent information regarding properties.
8. Emphasize the partnership nature of the agent-buyer relationship.  Clarify the role of the agent in the search and how the buyer can assist the search.
9. In the initial buyer interview, discuss the offer/price counseling phase and the contract preparation and documentation.
10. Provide a checklist for property analysis and comparison to other properties they have viewed.
11. Candidly discuss properties as soon as possible after viewing.
12. Review statistics regarding the number of properties in search range that have been available over the past 6 months.
13. Identify experts or consultants who might be called upon to provide specific and technical information or advice depending on the situation found.
14. Provide clarifying information to assist buyers in evaluating property as to their physical and functional attributes.

Premier Service Buyer Commitment Point #6:
As a Real Estate Professional I will, if requested, provide data on recently sold properties within the town of your home location.    

Activities / Details: 

1. Conduct property search through a variety of sources to establish pricing reference:
2. MLS
3. Public records
4. Appraisers
5. Etc. 

Premier Service Buyer Commitment Point #7:
As a Real Estate Professional, I will offer to provide property description and seller’s statement of property condition, as available. 

Activities / Details: 

1. Present the state’s seller disclosure laws and discuss the following:
2. Reliability of such disclosures and prudent verification procedures;
3. Sellers’ role and candor in completing disclosure and;
4. Agent’s limited role in securing and reviewing seller disclosure documents.
5. Preview the communication and distribution of seller disclosure, if provided.
6. Review the documentation and records supporting disclosure (i.e. past repairs, lead-based paint, etc.)

Premier Service Buyer Commitment Point #8:
As a Real Estate Professional, I will prepare a written Offer to Purchase on the property of your choice reflecting your price and terms.    

Activities / Details: 

1. Discuss items / tactics to be considered in an offer preparation.  
2. Once a desirable property has been found and it is evident that an offer to purchase is advisable, review the procedures that need to be taken to prepare, communicate, present and negotiate such an offer including:
3. Time schedules and time frames to be listed in the contract;
4. What, if any, personal property items to be included in the contract;
5. What, if any, improvements, modifications or repairs that the buyers would ask the sellers to effect; (note that these might be delayed until home inspection);
6. What conditions and contingencies would be included in the contract;
7. Price and terms to be offered as appropriate in that specific market and reflecting the buyers’ capacity to purchase. 
8. Discuss and decide how counter-offers from sellers will be communicated, handled and responded to.
9. Review the overall negotiating strategy, as appropriate.  (See next Premier Service Commitment Point)

Premier Service Buyer Commitment Point #9:
As a Real Estate Professional, I will present all offers to purchase in a timely fashion using standardized forms.    

Activities / Details:

1. Stress the importance of building a negotiating strategy BEFORE viewing many properties and certainly before constructing an offer for seller consideration.
2. Present and explore negotiation situations that might take place.  (i.e., seller’s agent, attorneys, builders, FSBOs, etc.)
3. Identify the factors that influence the negotiation position of buyers:

   Market conditions Terms Price Seller assists Timing Contingencies Financing options Property condition

   Flexibilities Risk-taking ability, etc. Mortgage rate changes Increased or decreased competition Recent sales, Impact of seller response to offer Anticipated contingences

4. Discuss the concept of negotiation leveraging.  
5. Anticipate the stresses that will occur in the negotiating process and the critical importance of maintaining the proper tone during negotiations.  
6. Caution the buyer to avoid the impulse to “take it personally” when seller’s response to an initial offer is disappointing or even “insulting”.  
7. Advise buyer to think big…even to the point of what would make this “deal” work for the other side.  
8. Stress the importance of a win-win result.  Even after the contract is signed, the opportunities for continued negotiations exist.
9. Share with the buyers the inevitable likelihood that strategy modifications will be required during negotiation of the Offer to Purchase.  Present examples of “strategy adjustments” and the reasons or causes for adjustments. (property availability, enhancing terms, property improvements, competitive price adjustments, enticing cooperating agents, providing more information, etc.)
10. Consider involving “outside” advisors (management or another agent) acceptable to both the buyers and the agent to provide a frank and candid perspective of adjustment strategy.

Premier Service Buyer Commitment Point #10:
As a Real Estate Professional, I will provide assistance in accessing information on licensed building inspectors prior to the Offer to Purchase.    

Activities / Details:

1. During the initial buyer interview, discuss the differences between building, home, and environmental inspections.  
2. Explain state and local requirements around inspections and inspectors.
3. Prepare and provide, as needed, a list of possible inspectors from which the buyer might choose.
4. Outline responsibilities around selection, engagement, and services provided.

Premier Service Buyer Commitment Point #11:
As a Real Estate Professional, I will assist you in monitoring the status and satisfaction of contract contingencies.    

Activities / Details:

1. Review a sample sales contract/agreement of sale.  Specifically highlight the more critical sections, portions or paragraphs in anticipation of what might be submitted for consideration. 
2. Explore buyers’ current or past experiences on specific contract provisions.   
3. Present options and counter-offer positions to specific contingencies.   
4. Emphasize the fact that NO PRESSURE will be applied to accept or reject any contract provision.  Add, however, that in many cases a strong recommendation will be provided.
5. Extract from an accepted contract of sale the specific provisions that will impact and influence the progression toward final settlement.
6. Establish a specific schedule of dates and events to monitor the progress of contingency activity and removal.  Within this schedule, insure communication with all parties – the buyers, the listing agent, service providers and the sellers.
7. Act promptly and decisively to problems and concerns that result from contingency removal activity.  
8. As contingencies are removed or attended to, keep the buyer informed and provide targeted or scheduled closing date, location and time.

Premier Service Buyer Commitment Point #12:
As a Real Estate Professional, I will accompany you on walk through property inspection before closing, if provided for in the contract.

Activities / Details:

1. At time of offer preparation, review the checklist of due diligence inspections and consultations that might be considered and the impact they will have on property purchase.
2. Once contract is accepted by the sellers, proceed to schedule the inspections agreed upon.  
3. Provide, as needed, a list of possible inspectors from which the buyer might choose.
4. Assist the inspectors in obtaining access to the property to conduct the inspection.
5. Coordinate with and inform the sellers and sellers’ agent of the inspection, as appropriate.
6. As appropriate, remove inspection contingencies or confirm the inspection report results that effectively indicate fulfillment of the contingency.
7. Coordinate with the buyers, sellers and sellers’ agent a specific date and time for the final walkthrough personal inspection (by the buyers) immediately prior to closing.
8. Accompany buyers on walkthrough, as appropriate and mediate concerns and issues with sellers’ agent.

Premier Service Buyer Commitment Point #13:
As a Real Estate Professional, I will contact you after the closing to assure the satisfactory completion of all service details.  

Pre-Close Activities / Details:

1. Provide a checklist of items the buyers should take to settlement.
2. Attend settlement with (or, if allowed, in place of) the buyers.  Inform the buyers of the activities and events that transpire at settlement.
3. Provide a checklist of items relating to moving into the property (address change notices, utility change over, etc.)
4. Coordinate with sellers, selling agent and other parties to effect smooth transfer of possession.
   
   

Post-Close Activities / Details:

1. Remind buyers of the Premier Service survey opportunity to evaluate real estate services.
2. Extend yourself as a continued real estate resource through permission-based marketing.
3. Monitor Home Warranty, as needed.
4. Retain Seller’s Disclosure documents and closing documents for TBD period of time (as required by law).
5. Provide the buyers with a copy of the settlement statement in January of the year following sale and settlement.
6. Consider a thank you gift.
7. Advise the buyers that you would want to use them as a reference for future clients.  Follow up after purchase to confirm permission and secure contact numbers.
8. Provide consumer information via mailings or e-mail in order to keep these satisfied clients up to date on critical and nice to know items.
9. Schedule some method of follow-up to maintain contact with the buyers. (Example:  periodically provide them with statistics regarding your productivity and service record.)

Premier Service Buyer Commitment Point #14:
As a Real Estate Professional, I will offer the opportunity to evaluate the service provided through the Quality Service Assurance Survey.  

Activities / Details:

1. Compare GMAC Real Estate systems with industry norms for servicing.
2. Provide opportunity for the client to offer feedback and input on the nature and scope of service commitment at the conclusion of the search and purchase process.
3.  Remind buyers that a neutral, independent third party company will be contacting them after settlement to solicit their evaluation of our real estate services.  Encourage their participation and candid feedback.  This process holds us accountable and can help us improve our service. 
4. Invite direct and written communication from the buyers that might serve as a testimonial. 

Premier Service^® Commitment Details for Buyers

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