Mastermind #10 July 20 2011
If its Wednesday it must mean there is a Mastermind meeting. And a good one it turned out to be for all in attendance. This morning we had a number of good topics so if you didn’t make it, here is what you missed.
1. When doing an Agreement of Purchase and Sale, agents often leave key information blank only to fill in the details, such as price, at a later date. It is important to make sure that the clients initial the hand written inserts. Also remember that listings on MLS often include standard office clauses in the form of a schedule. Remember the top portion of these schedules are often left blank and agents are required to add the names of both the buyers and sellers as well as the address. It is important that these handwritten additions are initialed too.
2. Too Often, agents are working with clients that are a little on the frustrating side. Sometimes it is tough to get both buyers together at the same time, they don’t want to offer on properties with bidding wars. It seems that they are not really committed to buying a property. We talked about overcoming some of these obstacles. First, deal with the decision maker exclusively, but keep the other buyer in the loop. Second, make sure that they have the means to jump on a property quickly; for example, they need to have the funds available for deposits as often we hear “oh yeah, I have the money, it just might take me a few days to move it around”. Third, show them a list of all the properties that they have seen. Point out how quickly the have sold and stress the importance that they need to start offering on properties. There are countless examples of good properties that sell below asking but they will never buy a house if they don’t offer on any. Finally, an agent pointed out that she had success showing clients two types of houses; those that have offer dates and those that have been on the market for a couple of weeks. The ones that have languished on the market are usually overpriced and need a ton of work.
3. The Classic. Seller Jones lists his house for $499K under advice from the agent. Their hope is to generate enough interest to spark multiple offers. On offer night there is only one offer. The buyer agent brings in a full price offer (because he recognizes the house to have that value), with no conditions and the exact closing date the seller has asked for. What happens? the Seller signs it back for $530K because that was their expectation. The reality is that the seller and the seller’s agent are guilty of false advertising. If they want $530k they must do a price change on the property. Believe it or not, more than a few agents in attendance today had experienced this scenario. This is a great topic that might be better saved for future blogs so stay tuned.
4.Finally, we had a lengthy conversation about what to say to people who have their property listed with another agent, but want your advise. Sometimes they call you out of the blue because they know you specialize in the area or maybe they are friends looking for some words of wisdom from a trusted source. The reality is that helping people is in our DNA. Just remember, the person you are talking to is under contract with another agent so you cannot interfere under any circumstances. It’s okay to answer questions about the market or speak generally about properties or buildings but if someone asks you why their house isn’t selling you must decline to answer. Here is a good rule of thumb; always be thinking… what if this conversation was being taped. How much trouble could I get into? Exercise extreme caution. Simply answer that you cannot interfere with another agent’s contract and direct them to get answers from their agent.
Have a great week and don’t forget to check in next week.