Mastermind #14 August 31, 2011
Yesterday was the Last Mastermind of August. Gulp. Despite the warm weather and sunny day we still had a great turn out. One of the agents said afterwards that for him Mastermind provided great talking points to people. He felt that the things he learned increased his confidence on listing presentations and helped him minimize his stumbling if he was asked a particular question by a client. If that isn’t a ringing endorsement on the success of Mastermind, I don’t know what is. So if you weren’t part of the lucky group that make it, here is what you missed.
A couple decides to move in together. The agents spend a great deal of time with them and eventually help them win a house in multiple bids. They now have to sell their own homes. the agents felt that during the entire house hunt, they shared a lot of information about market conditions and the value of their prospective condos. All of a sudden it dawned on them that, armed with all this free information, the couple might opt to list with a discount broker to save some money. Stress! Okay, first of all….back up off that ledge. We all thought that, on the buy side, the agents showed that they have what it takes to negotiate a deal in their favour. (They won their bidding war by $5000). Obviously they will work as diligently to get the highest price for their condos. There is a tie in to the September market here too. The clients need to sell their places fast, so we suggested to the agents that they needed to press the clients to be the first on the market after Labour Day, because historically the market floods and then, all of a sudden, there are a lot of properties that you will compete against. The agents need to get the condos listed now so that flyers, feature sheets, pictures, floor plans etc will be ready fast. they will just need to push ‘play’ on September 6th.
We have certainly talked before about the value of a buyer agent when a client buys in pre-construction. Given the red-hot condo market, many people are diving into the new construction. What are the benefits? simple, a buyer agent will work on your behalf to help you negotiate a better deal. Remember, the person sitting at a sales site has one goal in mind; sell you a unit. End of story. Can a buyer honestly get an unbiased opinion from the builder’s representative?
Finally, we discussed how much over asking a buyer must go in a multiple offer situation. In many ways that is like asking how long a piece of string is. There are no hard and fast rules. One agent felt that as a rule of thumb he suggested to buyers that the price went up by $10K for every offer. 2 offers$20,000. 4 offers-$40,000. I suggested it was more of a percentage increase; 2 offers- 1-2% over asking. 4 offers-3-5% over asking, 10-12 offers-10-13% over asking. If your reading this, I would love to hear your ideas.
Have a great day and happy long weekend!