Mastermind for June 13th. Marketing Fees and Waiting for the Market to Crash
Someone asked me the other day why attendance at mastermind is so important. I couldn’t think of one…I thought of 7! Build your business experience faster. Do it with fewer mistakes. Improve your sales and negotiating skills. Communicate objections easier. Brainstorm and get ideas that could help you get more deals. Socialize with others and share your successes with like-minded people. And finally…. make more money. Hey, do you think you could benefit from 1 hour of Mastermind a week? Today we had a great discussion on agents who charge marketing fees and the classic buyer stall “I’m waiting for the market to crash“! Let’s get started.
So you have probably seen it at the bottom of listings before. Agents tell you how much commission they are offering and sometimes they like to add this juicy little nugget “minus $100 for marketing fee“. Seriously when I see it I want to pull out my hair. Today I saw this one on a listing in the West end, minus $500. WT%^*$&^#! This agent gets the listing then tries to have the selling agent pay some or all of their costs? All I can say is that this is not a great way to endear yourself to other agents. When my agents bring this to my attention I tell them to not include it on the Confirmation of Cooperation. If the agent writes it in I instruct them to scratch it out. There is no way we are paying a marketing fee. Full stop. It’s inconsiderate and completely unprofessional. And while on the topic of Confirmation of Cooperation, please don’t put “as per listing”. Write in the amount you expect. If the listing agent makes a big fuss and it looks like the deal is going to die, then at least ask for a bill so that you can write it off.
Next we talked about potential buyers who hold off on buying because they are “waiting for the market to crash”. One agent mentioned that her brother-in-law has been waiting for 18 years and has finally admitted he “may” have been wrong. The reality of these stallers is that you are not likely to change their mind. For them it is a defence mechanism as they may have a fear of failure. However, their might be some people who are sitting on the fence. Perhaps you can sway them with a few quick bullet points.
1. Ask them to define what a crash in their mind is. A drop of 10%, 20%, 50%?
2. State the facts and don’t offer opinion. You do not have control over the future.
3. Show them evidence of how your local market differs from the overall market.
4. Show them historical data as numbers don’t lie.
5. Many people make comparisons to the US real estate market so arm yourself with 5 fundamental differences.
6. Study and rehearse data and reports from the economists from your board. (In Toronto, Jason Mercer has an amazing report and slide show available on-line).
7. Talk about growth opportunities for various markets ie; Housing, condos, commercial etc.
8. Have an understanding of other factors which may influence the buying decision ie; interest rates, employment, immigration, etc.
9. Talk directly to the client’s needs. Security and long-term stability are key to this as well as capital appreciation.
10. Knowledge is power. The more you know the better prepared you will be to deflect objections. Factual evidence cannot be misinterpreted.
Have a great week. Now go out and sell something!