Upgrade Your Skills In This Shifting Market
As many of you are experiencing, the market is starting to shift. Across North America, we’re seeing the conditions changing dramatically and at a rapid pace. I thought I’d share a skill you haven’t had to use in quite a while: the skill of presenting the offer.
As a great listing agent there are many skills required; one of them is the ability to present an offer in a way that causes the seller to move forward and take action. We’re going to write seven steps today on how to present the offer in an effective manner at your next listing presentation.
Determine The Sellers’s Motivation
1. Discuss the seller’s motivation when you present the offer to the seller. Let’s make sure that the motivation hasn’t changed. You want to recap where they’re going, when they need to be there, what the reasons are, and why it’s so important. Start your listing presentation of this offer with determining and discussing the seller’s motivation.
Sell The Buyer To The Seller
2. Discuss the qualifications of the buyer. Mike Ferry says, “Sell the buyer to the seller.” Speak about their qualifications that they qualify and that they can afford the home, they are people who have been trying to move into the neighborhood, they’re qualified with the lending institution and the progress of that.
Be Clear In Discussing The Deposit
3. Discuss the deposit on the offer. What is the earnest money deposit? How does it sit in the marketplace? Is it typical? Is it above average? Is it below average?
Read The Contract From The Bottom Up
4. Mike asks you to read the contract from the bottom up. We all know that typically at the top of the contract is going to be the price. It’s one of the first things discussed. Mike wants you to actually read the other terms of the contract and leave the price for last. So discuss the close date, any contingencies or contributions the buyers are asking for and then share the price after you’ve shared all the other terms in the contract.
Share The Price Then Go Straight To The Net Sheet
5. Go straight to the net sheet. Put a star next to this one as this is where the mistakes are made. Typically, once they discuss the price, the agent will share their opinions. They’ll share the price and then their opinion. Things like, “if it was me, I would just counter.” That’s a mistake. Another mistake, don’t share the price and then ask for their feelings or what they think about the price. Don’t share the price and then stare at them waiting for a response.
What we want you to do is once you share the price, go directly to this next step. Once you share the price don’t pause, don’t hesitate, go directly to the net sheet and show at that price what the cost and the fees and commission, what all those charges will be and what they will net out at the end.
Hit Them With The Highlights
6. Quickly review the benefits of the offer. Touch on the highlights of the offer. If it’s all cash, they’re closing in 3 weeks and there’s no contingencies to the offer. Just touch on the highlights
You Just Ask For The Signature, Let The Seller Decide
7. Ask for the signature. In your notes, underline signature and put a star next to step seven because this is where we also make mistakes. We don’t ask for the signature, we ask for approval, agreement or what they think and how they feel. Ask for the signature and you’ll get better results. You, as the agent, should be confident and happy to be presenting an offer. Don’t get in your head whether it’s too low, a good offer, or a great offer. That’s for the seller to decide. Your job is to present the offer and the terms along with it.
By following this process, it’s actually a mini presentation that you’re making now versus winging it and making it different every time for every seller. This will actually get more of your listings sold and help you get more offers accepted the first time.
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Watch and listen to Mike Ferry each week, as he discusses a variety of topics to help real estate agents and brokers grow their real estate business by focusing on improving their mindset, developing their skills and creating a plan of action to increase their production. Hundreds of thousands of real estate professionals have attended Mike Ferry events over the last 43 years of coaching and training real estate professionals in countries around the world. There is no question, The Mike Ferry Organization is the global leader in real estate coaching and training.