Mastermind for December 14th Guest Blogger Amy Medal
Mark took the day to transform the Queen West office into a Christmas wonderland for our annual Bosley Holiday party and asked if I would run Master Mind.
And here is what we talked about today:
1/ When negotiating shifts from Selling Agent – Buyer Agent, to Buyer Agent – Buyer. One of our agents stumbled into a rather precarious position when a condo/loft he showed his buyer was not actually on the market (back storey here). The Seller wanted ‘X’ for the unit and the Buyer was only willing to pay ‘Y’ and was quick to ask the buying agent to reduce his co-operating commission to make the deal happen. Buyer then tried to do further negotiations with the Seller…eeeek! Our Bosley agent acted quick on his feet and shared his validation for the work he had done on getting the client to this situation. If it wasn’t for the buyer agent, perhaps this property would never have been found – he knew of this property coming on the market and made a point to sit with the Seller Agent and Seller to see if they could put something together. Agents do a lot of work, not just driving clients around, but finding the right properties for clients and negoitating contracts…our agent was correct in taking a moment to validate his work cost. Buyer ended up buying the property and was thrilled that he did not have to ‘compete’ against any other offers. To summarize…make sure that negotiations stay between the correct parties, that’s what the agents are for!
2/ How do you advertise an Exclusive Listing? One of our agents has an ‘Assignment Listing’, which in this case is a condominium unit that has not yet been registered to the unit owner but can be sold as an ‘Assignment’. These sales can be quite challenging to say the least, and advertising can be even more difficult. As you lack the means of the Multiple Listing System (MLS) and are faced with finding new and creative methods to get the word out. Some suggestions were to print up postcards of the listing and see if you can promote them at other broker offices. Try going back to the builder, specifically to one of their sales offices to leave a stack of postcards or ask agents in the office who have good web traffic to see if you can advertise on their personal websites.
3/ Right to Rent Out. In the event that you have a buyer looking into a new condo purchase, see if you can put something into the builder forms that allows the buyer the right to rent out their unit during an interim occupancy phase. Some condos take longer than others to register, so if your client doesn’t want to move in during the interim phase, then perhaps renting it out and gaining rental income will help keep the buyer’s overal costs down. It never hurts to ask the question, especially at the point of sale vs. the occupancy phase.
4/ Testing the Market and Incurring Expenses. How do you handle a Seller who wants to ‘test the market’ and take the property off the market if it doesn’t sell within a week? Some hot properties will sell quickly, especially if they are priced well, staged and in a great location. However, some houses take a little longer to sell and agents still incur the same expenses. Consider pre-list home inspections, photography, printed material, advertising and in some cases staging/decluttering/junk removal. I personally put in approx. $800-$1000 into each listing and certainly don’t expect my clients to pay that…however if right off the bat they tell me that they will take it off the market if it doesn’t sell on a scheduled offer date, then I have them sign off on a ’Bosley form’ stating the Seller will re-imburse my marketing costs – after a tactful explanation, clients will understand this and either absorb the costs or better yet, NOT terminate the listing after 7 days. To summarize, keep an open dialogue with your clients from the beginning of your working relationship to the end, start by setting realistic expectations from both parties and agree to your work schedule and associated costs.
Check out other great posts at www.amymedal.com