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Posts from the ‘Mastermind’ Category

9
Oct

The Real Estate Chain Reaction

science class
Today in Mastermind we talked about a series of events that, like a chain reaction, happen when you do everything you can to ensure the right conclusion. Here’s what I mean….do you remember back in high school chemistry we were asked to mix two chemicals together and then document the reaction? Often the students had different conclusions. Why? Because of the variables involved. Was it the measurement of the ingredients, the temperature of the flame or the length of time the chemicals were mixed?

In many ways, the outcome of your first interaction with a buyer or a seller, depends on the steps you take next. As with many agents I know, the first listing is often a friend or relative. This is a great way to get your career off and running, but, for ultimate success, you need to remove all chance and stick to the tasks that work. That means coming out strong. Prepare and stage the house to perfection, get a pre-home inspection, take care of any repairs, order virtual tours and professional pictures, tell the neighbours, hold an agent and public open house, etc, etc. the list is extensive and, quiet frankly, labour intensive and expensive, but at the end of the day you know that you didn’t leave anything out. I bring this up for one reason. You don’t leave any stone unturned because a perfect execution will lead to more interaction and more deals.
Today we talked about the real estate chain reaction and had some interesting examples of it. We heard from one agent who put an ad in the paper for a small house in a relatively unheard of neighbourhood. In a time when newspaper ads hold little value to a young demographic, it seems like a colossal waste of money, but a strange thing happened. The agent got a call from an interested buyer because their parents, who were helping with the purchase, had seen the ad. Bingo. Connection made.
Here is another one. An agent is out-door knocking. He just happens to meet someone interested in selling. Within a week the property goes on the market and sells successfully. The owners were so thrilled they used that agent to sell the mother’s house. That one sells quickly too. The agent then starts canvassing the neighbourhood to let everyone know that he sold it but to also ask if they know of any other people on the street are thinking of selling. Someone mentions the vacant house down the street. The agent writes a hand written note and leaves it at the house. The following week he has that one listed too. And so the real estate chain reaction begins.
I know to here are a hundred similar stories out there, and for each one there are ten others that end with one single transaction and plenty of lost opportunity because the agent didn’t do EVERYTHING, to ensure the chance of future business. You might even suggest that the agents just got lucky. Have you ever heard the saying “the harder I work, the luckier I get”?
There is another benefit of putting every ounce of effort into your listings. Your clients will know the lengths you went to and will recommend you to other people. So, get your business off on the right foot today. Agents fail because they go into the listing with the attitude that the house will sell itself. That might be true, but then what?
In a market where you are competing with 40,000 other agents, commission is no longer the competitive advantage. For ultimate longevity you need to go above the bare minimum of service. Not only will you sell the property but it will cause a chain reaction of events that will help grow your business and guarantee a fruitful career.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

21
May

Offer Night…Bring Multiple Copies and De-register If You Change Your Mind.

multiple copiesMastermind at my office is always a lot of fun and as the office expands and matures the topics tend to get a bit more technical in nature. That creates a challenge for some of the newer agents whose eyes start to glaze over. So every once in a while I have to reign in the conversation and steer it back to day-to-day operational questions. Like what happens on multiple offer night.
One of the policies that we have at Bosley Real Estate is that if an agent gets an offer on his own property AND is in multiple offers, one of the managers (in this case, me) steps in to represent the Seller. In an era where offers can be signed back multiple times, this is the third best way to handle a situation like this. The first of course, is to categorically refuse to represent a buyer, either as a client or customer, in the transaction. The second is to clearly state that you operate on the “one shot rule” so bring your best offer and be prepared to lose by one dollar. Our system works pretty well. The listing agent presents first then leaves the premises and has no way to know what the other offers are. If the seller wants to send all the offers back the listing agent has no advantage over any other agent thus guaranteeing that everyone remains on an equal playing field. Everyone is treated fairly.
Last week I was called in to manage an offer situation and the result of that process provided a great topic for the following day’s mastermind session.
So let me set the stage. The sellers come to my office and settle in to our large boardroom. We wait while the other agents arrive. There are supposed to be six in total including the listing agent and another agent from my office plus four agents from other competitor offices. All six have registered their offers through the front desk.
So we begin. The listing agent presents first. She brings in four copies of her offer. One for each of the two sellers, one for me and one for herself to refer to. The next Bosley agent presents, with three signed copies. The next agent presents with one copy of his offer which I review with the two sellers straining awkwardly to follow along. The next agent also presents with one copy of the offer but as soon as I turn the page I realize that the buyers have not signed the signature page. The next agent also only has one copy but is missing our schedule A. The final agent doesn’t show up at all or bother to call and rescind his offer.
So with six registered offers only four bring the required and properly executed paperwork, two bring enough copies to go around, one misses essential signatures, one misses the required schedule and one doesn’t even show up. Not good.
Despite the efforts, or perhaps because of the efforts of all the agents, the house sells well over the asking price, but it highlights two critical aspects of the offer presentation. First, it is essential to have enough copies to go around. I think that we often miss this critical step in the heat of the moment. There will be a time in the not-so-distant future when we will be using our tablets to conduct the sale but for now agents should provide multiple copies if only to be polite to all the parties in the room. Second, while you have every right to revoke your offer before the presentation, it is important to follow the necessary protocols. An agent must, at the very least, inform the listing brokerage that they will not be presenting. Sometimes it’s the little things that go along way to a successful transaction.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and Director at Large for the Toronto Real Estate Board and President-Elect in 2014-15.

17
Apr

It’s Offer Night in the Big City

negotiate blogMastermind at my office is always a lot of fun and as the office expands and matures the topics tend to get a bit more technical in nature. That creates a challenge for some of the newer agents whose eyes start to glaze over. So every once in a while I have to reign in the conversation and steer it back to day-to-day operational questions. Like what happens on multiple offer night.

One the policies that we have at Bosley Real Estate is that if an agent gets an offer on his own property AND is in multiple offers, one of the managers ( in this case, me) steps in to represent the Seller. In an era where offers can be signed back multiple times, this is the third best way to handle a situation like this. The first of course, is to categorically refuse to represent a buyer, either as a client or customer, in the transaction. The second is to clearly state that you operate on the “one shot rule” so bring your best offer and be prepared to lose by one dollar. But in our system the listing agent presents first then leaves the premises and has no way to know what other offers are. If the seller wants to send all the offers back, the listing agent has no advantage over any other agent thus guaranteeing that everyone remains on an equal playing field. Everyone is treated fairly.

Last week I was called in to manage an offer situation and the result of that process provided a great topic for the following day’s mastermind session and highlights some of the issues that managers need to remind agents about.

So let me set the stage. The sellers come to my office and settle in to our large boardroom. We wait while the other agents arrive. There are supposed to be six in total including the listing agent and another agent from my office plus four agents from other competitor offices. All six have registered their offers through the front desk. So we begin. The listing agent presents first. She brings in four copies of her offer. One for each of the two sellers, one for me and one for herself to refer to. The next Bosley agent presents, with three signed copies. The next agent presents with one copy of his offer which I review with the two sellers straining awkwardly to follow along. The next agent also presents with one copy of the offer but as soon as I turn the page I realize that the buyers have not signed the signature page. The next agent also only has one copy but is missing our schedule A. The final agent doesn’t show up or call.

So with six registered offers only four bring the required and properly executed paperwork, two bring enough copies to go around, one misses essential signatures, one misses the required schedule and one doesn’t even show up. Not good. Despite the efforts, or perhaps because of the efforts of all the agents, the house sells well over the asking price, but it highlights two critical aspects of the offer presentation. First, it is essential to have enough copies to go around. I think that we often miss this critical step in the heat of the moment. There will be a time in the not-so-distant future when we will be using our tablets to conduct the sale but for now agents should provide multiple copies if only to be polite to all the parties in the room. Second, while you have every right to revoke your offer before the presentation, it is important to follow the necessary protocols. An agent must, at the very least, inform the listing brokerage that they will not be presenting. Sometimes it’s the little things that go along way to a successful transaction with the added benefit of staying out of RECO’s hair.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and Director at Large for the Toronto Real Estate Board and is currently a candidate for TREB President Elect in the upcoming Spring election.

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