Promoting REALTOR® Value
Guidebook for members
What do I offer my clients? Let me explain...
Looking for a professional? Here’s how I can help...
My experience and expertise are valuable. Here’s why...
Sell my value? Not a problem!
Promoting REALTOR® Value The REALTOR® Value program has been created to help REALTORS® better understand their core value and learn how they can easily share their value with consumers. The program focuses on ten value points, which can be used by every member regardless of brokerage or business model, commercial or residential, new to the business or well-seasoned. This program provides:
• The words to share that express REALTOR® value. • The tools to use with consumers to support what you’re saying. • The reasons why you should share this with consumers. • The immediate benefits to you. The ten value points are only the beginning. REALTORS® can take what they need, keep what works best and modify the program to suit their unique style and services. This guidebook has been designed for REALTOR® use only. It is not intended to be provided directly to consumers in this format.
GUIDEBOOK CONTENTS Meeting Consumer Expectations................................................................................................... 1 The Value Points:
1 REALTORS® protect and promote the interests of their client, with agency.......... 2
2 REALTORS® are licensed............................................................................................................. 4
3 REALTORS® are members of a professional association..................................................5
4 REALTORS® pledge to adhere to the REALTOR® Code of Ethics................................... 6
5 REALTORS® put their duties and obligations in writing................................................. 7
6 REALTORS® listen and explain................................................................................................. 8
7 REALTORS® communicate......................................................................................................... 9
8 REALTORS® meet mandatory education requirements.............................................. 10
9 REALTORS® use the MLS® to help clients buy and sell properties........................... 11
10 REALTORS® explain the costs involved................................................................................12 How to use the Working with a REALTOR® brochure............................................................... 3 Schedule “A” - Possible obligations and services.................................................................... 13 Summary of the 10 Value Points ................................................................................................. 14 © 2011 Fraser Valley Real Estate Board
Meeting consumer expectations There’s really only one reason to talk about REALTOR® value. The most important reason: consumers want to know. They want to know what we do, how we’re going to do it and our commitment to them. And, we need to do a better job explaining this. We know from research that consumers place critical importance on being able to have absolute trust in the honesty and integrity of their REALTOR®. Unfortunately, they have concerns in this regard. We also know that some consumers in Nova Scotia feel they do not receive value for the commission paid to the REALTOR®. This is largely because they have a superficial view of the roles and responsibilities REALTORS® assume on their behalf. No advertising campaign can rectify this situation, at least not initially. This work must be done one-on-one, with REALTORS® communicating with their clients. By clearly communicating what we do, consumers will have an appreciation for the value of a REALTOR® and by operating in an open and transparent manner, REALTORS® will win the trust of consumers and their colleagues.
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What do REALTORS® do?
REALTORS® are legally obligated to protect and promote the interests of their clients, as they would their own. REALTORS® have the following duties: • Provide undivided loyalty to their client. • Obey all lawful instructions of their client. • Keep the confidences of their client. • Exercise reasonable care and skill in performing all assigned duties.
• Account for all money and property while acting for or on behalf of their client.
Value Point 1
REALTORS® protect the interests of their clients
TAKE ACTION Action: Tell your clients what you do, today and from now on. Explain your duties as you walk them through the Working with a REALTOR® brochure. Tool:
Working with a REALTOR® brochure.
Benefits for you:
• Establishing your value starts right here: with your duties and obligations.
• Clarifying your duties under agency helps build a strong, open relationship.
• Consumers value protection through legal
WHY DO THIS?
Consumers need to know:
• Your job is to protect and promote their interests.
• You have a legal duty to uphold, regardless of
whether you’re paid at the end of the day. • You will be establishing an agency relationship with your client, based on their needs.
Consumers will:
• Understand your value and service. • Respect that belonging to a professional association means a commitment to professionalism. • Trust your legal obligations.
duties and promotion through up-to-date marketing tools.
My job begins and ends with protecting and promoting my clients’ interests, within an agency relationship.
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how to use the Working with a reALtor® brochure: 1 PrESEnt the Working with a rEALtor® brochure. open to the inside page describing the Agency relationship. 2 SAY “it is important for you to know what my job is.” 3 CirCLE the area that starts with ‘”Brokerages and their licensees...’” as shown. 4 rEAD the section out loud. 5 BE AmAZED when you read this to a client. their interest level will change. they start to get it!
WOW! Now we know what’s in this for us.. and this has value!
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Are REALTORS® licensed to practice real estate?
REALTORS® are licensed to practice real estate under the authority of the Nova Scotia Real Estate Commission and abide by the laws, rules and regulations of the Real Estate Trading Act and the Commission ByLaw. The Nova Scotia Association of REALTORS® membership card includes a license number, as well as the license expiry date, which provides proof that members are legally able to provide real estate services in Nova Scotia.
Value Point 2
REALTORS® are licensed
TAKE ACTION Action: Show your clients your membership card when you review the Working with a REALTOR® brochure with them. Tool:
Your membership card. Working with a REALTOR® brochure.
Benefits for you:
• Consumers want to work with licensed professionals. • Providing proof that your license is in good standing sets clients at ease.
• Consumers will understand the commitment required for licensing and relicensing.
WHY DO THIS?
Consumers need to know:
• You are a licensed professional. Your license is renewed every year.
• You must meet requirements for both licensing
and relicensing. • You abide by the laws of local municipalities, Nova Scotia and Canada. • You are insured. Errors and Omissions Insurance provides liability insurance for REALTORS®. The Recovery Fund protects monies placed in trust with a licensee.
Consumers will:
• Trust licensed professionals. • Appreciate proof of your good standing. • Respect your protections under law.
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Are REALTORS® members of a professional association?
REALTORS® are members of their provincial professional association, the Nova Scotia Association of REALTORS®. As well, they are members of the Canadian Real Estate Association (CREA). Only members of CREA can call themselves a REALTOR®. Only REALTORS® have the exclusive right to access the Multiple Listing Service® (MLS®), a complex information-sharing and cooperative marketing network created by REALTORS® to help the public buy and sell properties.
Value Point 3
REALTORS® are members of a professional association
TAKE ACTION Action: Show your clients your membership card when you review with them the Working with a REALTOR® brochure. Tools:
Your membership card.
Benefits for you:
• Consumers trust and respect professional
organizations like the Nova Scotia Association of REALTORS®. • As a member, you have exclusive access to the MLS® System, a highly-valued marketing tool. • Consumers value organizations and individuals who are committed to excellence.
WHY DO THIS?
Consumers need to know:
• You are a member of the Nova Scotia
Association of REALTORS®, in good standing.
• You work together with other professionals
in order to make a positive difference in the industry and the community. • You pledge to adhere to the by-laws, rules, standards and the REALTOR® Code of Ethics.
Consumers will:
• Appreciate your commitment to the profession.
• Appreciate having access to the MLS® System, through a member REALTOR®. • Respect your pledge to abide by the rules of membership.
As a member of a professional association, I work together with other REALTORS® to better help my clients and our communities.
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Through the REALTOR® Code of Ethics, REALTORS® are committed to:
Do REALTORS® adhere to a Code of Ethics?
• Professional competent service. • Absolute honesty and integrity in business dealings. • Cooperation with and fairness to all. • Personal accountability through compliance with CREA’s Standards of Business Practice.
REALTORS® pledge to observe the Code in all of their activities and conduct their business in accordance with the Standards of Business Practice and the Golden Rule: Do unto others as you would have them do unto you.
Value Point 4
REALTOR® Code of Ethics
TAKE ACTION Action: Show your clients the REALTOR® Code of Ethics. Tell your clients that as a REALTOR® and member of the Nova Scotia Association of REALTORS®, you pledge to adhere to the REALTOR® Code of Ethics. Show your clients the back of your membership card, where it states that you have made this pledge. Tools:
Your membership card. REALTOR® Code of Ethics.
Benefits for you:
• Consumers trust professionals who abide by a
Code of Ethics. • Trust is extremely important to consumers, and they will respect your commitment to honesty and openness. • Speaking highly of other professional REALTORS® enhances your credibility.
WHY DO THIS?
Consumers need to know:
• You have pledged to the REALTOR® Code of Ethics, as have all REALTORS®.
• You are committed to honesty, integrity and fairness to all. • You will cooperate with others and are held accountable for your actions.
Consumers will:
• Value your pledge to abide by a Code of
Ethics. • Understand your intent is to operate fairly and honestly. • Appreciate that ALL REALTORS® pledge to a high standard of professionalism.
I pledge to abide by the REALTOR® Code of Ethics.
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What commitment do I get that a REALTOR® will do what they say they will?
REALTORS® include their services and
obligations in the Schedule “A” which is included in the Seller Brokerage or Seller Designated Brokerage Agreement.
Value Point 5
REALTORS® put their services and obligations in writing
TAKE ACTION Action: Include your full duties and obligations in the Schedule “A” in addition to the services you may perform for your clients. Refer to the list of possible items to include in the Schedule “A” on the page 13 of this guidebook. Tools:
Seller Brokerage or Seller Designated Brokerage Agreement. Your brokerage or your own marketing plan. Working with a REALTOR® brochure.
Benefits for you:
• Your clients will clearly understand what you
will do for them. • By putting your obligations, duties and services in writing, there will be fewer misunderstandings. • This is your opportunity to differentiate yourself from the competition.
WHY DO THIS?
Consumers need to know:
• You are prepared to detail exactly what you will do for them.
• Your obligations under the law are clearly
defined, based on the level of agency you’ve agreed to. • You offer value to your clients and are prepared to explain that value to them.
Consumers will:
• Trust in a written agreement. • Understand how your services differ from other REALTORS®.
• Understand the value you provide for the monies paid.
I will explain what I’ll do for you and put it in writing.
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How will REALTORS® help us through the process of buying or selling property?
REALTORS® listen to client concerns,
expectations and objectives, striving to understand the financial and personal dynamics involved.
REALTORS® explain the real estate process and what clients will be paying for: the professional services of a licensed REALTOR®, whose job it is to protect their interests. REALTORS® explain the wealth of experience and resources they bring to their clients, personally, through their office and through their Board.
Value Point 6
REALTORS® listen and explain
TAKE ACTION Action: Ask your clients key questions regarding their situation and expectations and listen! Help them to fully understand the process and how it will impact them personally. Tell your clients exactly what you will do for them and about the network of support, experience and resources you bring. Refer to the Schedule “A”. Reiterate your primary role: to protect their interests. Tools:
Your knowledge. Your own marketing plan. Schedule “A”.
WHY DO THIS?
Consumers need to know:
• You understand real estate and can help consumers through the process.
• You are able to answer questions and can
explain what they need to watch out for. • You will listen carefully to what they say and likely pick up on their unspoken concerns.
Consumers will:
• Welcome your expertise. • Appreciate you taking the time to inform them about what’s going on.
• Value your commitment to meeting their needs.
Benefits for you:
• You are a knowledgeable professional – this is your chance to shine.
• Being open and honest with your clients helps prevent misunderstandings. • Sharing your expertise is an ideal way to demonstrate your value to your clients.
I will listen to your needs, explain how I do business and detail what this process will look like for you.
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How do REALTORS® keep me informed about what’s going on?
REALTORS® commit to dependable and clear communication with their clients, based on the needs determined at the onset of the working relationship. REALTORS® commit to responsive communications and will advise the client of the best ways to stay in contact and when to expect return calls or emails.
Value Point 7
REALTORS® communicate
TAKE ACTION Action: Lack of communication is the number one complaint from clients. Listen to your clients’ expectations regarding frequency and type of communication. Agree upon a communication plan that will suit your clients’ needs and include it in the Schedule “A”. Tool:
Your responsiveness. Schedule “A”.
Benefits for you:
• You remain in control of the scope of the communication.
WHY DO THIS?
Consumers need to know:
• You are prepared to keep them informed in a timely manner.
• You will commit to a communications plan based on their requirements. • You are prepared to give them regular updates.
Consumers will:
• Experience less anxiety about the process. • Appreciate your knowledge and commitment to them.
• Value the service you are providing.
• A clear agreement between you and your clients helps you manage your time effectively.
• Good news, bad news or no news, communication helps you move the process along.
I will stay in contact with you, based on your needs.
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What do REALTORS® do to stay on top of changes in the industry?
REALTORS® are required to meet mandatory education requirements in order to obtain and renew licensing and membership. Courses include information on legal issues, industry updates on legislation, agency and market conditions and more. As well, REALTORS® attend specialized courses, conferences and participate in self-directed learning above and beyond the mandatory educational requirements.
Value Point 8
REALTORS® meet mandatory education requirements
TAKE ACTION Action: Tell clients that all REALTORS® are expected to meet ongoing mandatory education requirements. Tools:
Your knowledge. Your completed course certificates.
Benefits for you:
• Polishing your skills and staying informed helps you become a more effective REALTOR®. • Your expertise is highly valuable to your clients. • Take pride in the work you’ve done to build your knowledge and skills.
WHY DO THIS?
Consumers need to know:
• You are required to meet mandatory requirements every year.
• Your training includes both legal and
skills-based learning. • You have the skills and knowledge required to assist them with their real estate needs.
Consumers will:
• Trust in trained professionals. • Appreciate proof of your attendance at key courses and events.
• Understand that your skills and knowledge are a big part of your value.
I keep up to date on real estate industry issues and legislation through regular professional development.
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What is the MLS®?
Only REALTORS® have the exclusive right to access the Multiple Listing Service® (MLS®), a complex information-sharing and cooperative marketing network created by REALTORS® several decades ago to help the public buy and sell properties.
Through the MLS®, REALTORS® working for sellers can expose listed properties to thousands of potential buyers. In turn, for REALTORS® working with buyers, the MLS® provides a comprehensive listing of properties that match their criteria along with tools for researching and comparing properties.
Value Point 9
REALTORS® use the MLS® system to help clients buy and sell properties
TAKE ACTION Action: Explain how the MLS® System is a member-owned system, and how it differs from REALTOR.ca and ICX.ca. Talk about your own marketing plan, and how it builds on the power of the MLS® System in order to draw even more attention to your listings. Tools:
Your own marketing plan.
Benefits for you:
• Consumers will understand that REALTORS®
WHY DO THIS?
Consumers need to know:
• You have access to the MLS® System, which is far more detailed than what they may see online.
• You can use the MLS® System to help them
determine appropriate pricing, given the local market dynamics. • You can use the MLS® System to help them locate a suitable property, based on their specific criteria.
Consumers will:
• Value the extensive information provided by the
MLS® System, available only through REALTORS®.
built the MLS® System and keep it up-to-date.
• Appreciate the marketing power of the MLS®
REALTORS® can access.
• Respect the accuracy, reliability and quality of
• The MLS® System is a valuable tool that only
• As a REALTOR®, you have the expertise to interpret
System.
the MLS® System data.
the data and make recommendations.
The MLS® System is a cooperative marketing tool created by REALTORS® as a way to share information about properties for sale.
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How much will this cost me?
REALTORS® explain that clients are paying for the professional services of a REALTOR®, whose job is to protect and promote their interests. This may ultimately result in the sale or purchase of a property. REALTORS® operate using a variety of business models. Their pricing and services structure positions them in a unique way in the marketplace. REALTORS® explain their business model, including the timing and amount of any professional fees or commissions.
Value Point 10
REALTORS® explain the costs involved
TAKE ACTION Action: Thoroughly explain your business model, detailing exactly what fees or commissions will be payable for the services provided and explain what services will NOT be provided. Review the services noted in the Schedule “A” as well as your marketing plan. Tools:
Your own marketing plan. Schedule “A”.
WHY DO THIS?
Consumers need to know:
• You have a clear understanding of the costs and can inform them of the specifics.
• You are insured. • Your expertise, tools and commitment have
value in relation to the fees/commissions paid.
Consumers will:
• Understand their limitations and the terms of your agreement with them.
Benefits for you:
• Appreciate that there will be “no surprises.” • Respect your value.
• No surprises for clients means no surprises for you.
• By openly discussing costs, you are also
able to demonstrate what they are NOT paying for. • Discussing costs after clearly demonstrating your value will reduce the disconnect some clients feel regarding commissions/fees.
Let me explain all the costs involved in listing or buying a property.
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list of possible duties and services you can Choose to add to your Schedule “A” : • “As a licensed REALTOR® and Member of the Nova Scotia Association of REALTORS®, I am legally obligated to protect and promote the interests of my principals as I would my own, and to abide by the bylaws, Standards of Business Practice and Code of Ethics as set by the Board.” • Explain the Working with a REALTOR® brochure and agency obligations • Provide undivided loyalty to the client • Obey all lawful instructions of the client • Keep the confidences of the client • Exercise reasonable care and skill in performing duties • Account for all money and property while acting for the client • Cooperate with other REALTORS® • Explain real estate terms and practices • Provide and explain all forms • Communicate on a regular basis • Provide regular market updates • Disclose in a timely manner all known facts affecting the transaction • Conduct market analysis and advise an appropriate listing price • Locate properties available to view and consider • Facilitate viewing properties and provide guidance • Advise regarding selection of the right property • Prepare and submit all necessary listing documentation • Advertise the listing on the MLS® and on REALTOR.ca or ICX.ca • Assist in qualifying buyers • Arrange showings at times acceptable to the seller and, if any tenants, subject to tenants’ rights • Discover facts pertaining to the property • Inform of closing procedures and policies • Identify and estimate costs for closing • Advise on competitive offers, including appropriate conditions and subjects • Prepare offers at client’s direction • Prepare a legally-binding Contract of Purchase and Sale • Review Contracts of Purchase and Sale submitted for the seller’s consideration • Present all offers promptly and objectively • Negotiate favourable terms and conditions • Assist in arranging suitable financing if necessary • Advise client to seek independent advice on matters outside the expertise of the licensee, such as property inspections, legal or other required services • Assist in removal of conditions, completion and possession process • Disclose all fees earned through the transaction • PLUS: details of your marketing/selling plan PAGE 13
The Ten Value Points - An Overview Consumers want to know…
Your answer…
Your tools…
What do REALTORS® do?
REALTORS® protect and promote the interests of their client, with agency
• Working With a REALTOR® brochure
Are REALTORS® licensed to practice real estate?
REALTORS® are licensed
• Your membership card • Working With a REALTOR® brochure
Are REALTORS® members of a professional association?
REALTORS® are members of a professional association
• Your membership card
Do REALTORS® adhere to a Code of Ethics?
REALTORS® pledge to adhere to the REALTOR® Code of Ethics
• Your membership card • REALTOR® Code of Ethics
What commitment do I get that a REALTOR® will do what they say?
REALTORS® put their duties and obligations in writing
• Schedule “A” • Your own marketing plan • Working With a REALTOR® brochure
How will REALTORS® help me through the process of buying or selling property?
REALTORS® listen and explain
• Your knowledge • Your own marketing plan • Schedule “A”
How do REALTORS® keep me informed about what’s going on?
REALTORS® communicate
• Your responsiveness • Schedule “A”
What do REALTORS® do to stay on top of changes in the industry?
REALTORS® meet mandatory education requirements
• Your knowledge • Your completed course certificates
What is the MLS® System?
REALTORS® use the Multiple Listings Service® to help clients buy and sell properties
• Your own marketing plan
How much will this cost me?
REALTORS® explain the costs involved
• Your own marketing plan • Schedule “A”
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