True Negotiation

A top producing real estate agent is a good negotiator. True or False?

Answer: True and False

Every aspect of real estate has a negotiating element. Consider now selecting a list price. The agent, in effect, negotiates with her or her own client for the list price.

Negotiate a price that’s too high and the home  may not get showings or worse, get showings with poor feedback. Negotiate a price that is too low and the house sells in a day or two. Maybe it was under priced? Maybe it was the “right” price. Which approach is correct?

Under priced homes do not require much negotiation skill. The offers pour in.

Over priced homes do not require any negotiation at all skill because the offer never arrives.

Somewhere in the middle is where your agent shines. A well priced home, marketed properly and with flair attracts offers.

Offers your agent can now apply their true negotiating skill upon.

The real estate secret

I remember a friend at a party stating “we found our last home by ourselves, the agent just booked the appointment and wrote the offer. What an easy job!”

Now, I don’t know the who’s, what’s or where for’s of their relationship, but there is a secret that we real estate agents keep to ourselves. It’s a big secret hiding in plain sight. We hide all the good listings on the MLS and realtor.ca.

What my friend failed to recognize and acknowledge was the numerous homes they previewed. He forgot to mention the agents comments, analysis and advice given during each showing. And, he completely missed the importance and skill utilized during the offer process. From writing the offer, including subjects for the buyer’s benefit, to assisting in completing the due diligence and ultimately closing the transaction with the help of their lawyer.

The entire process was simplified and “easy” because his agent was competent. There are houses for sale everywhere. Choosing the right one, making sure it’s a good one and locking it up with a solid offer may seem easy but there are a lot of moving parts. That’s why we are here.

D

 

 

 

Looking to purchase real estate? Step One…Step Two…

One: Find a real estate agent

Two: Find a Lender

One

Top three things to consider when choosing your agent.

1. Does this agent have experience and skill?

Can they protect me and cover the details of a complex transaction? Do they know the area? Can the agent show me how the house is valued?  Can they match my schedule and give me the service I need? Can they offer me service I don’t know that I need?

2. Does this agent have time for me?

Will they be able to meet me on short notice for showings? Will he or she have time to help me conduct the due diligence to make a good purchase? Will he or she help me analyze my purchase? Will he or she “chase the case” and work hard behind the scenes for me?

3) Will this agent allow me to say “no”?

Many agents often sell their clients to  a “yes” proposition house after house. Yet, screening properties well requires unbiased views and truly understanding the needs of the client. Acting as a fiduciary means coaching clients to what’s best for the client. Sometimes in hot markets, this means coaching a faster decision but in others, it means slowing down and offering quality advice. Which might mean the client says “no”.

Two

Lender: A person who is skilled at finding you the most amount of money possible for the best rate and most flexible terms…

Banks: Your bank will often employ Mortgage Specialists. Some are the busiest and most productive lenders in the area. If your credit and income are good, you will have little trouble but be wary of the posted rate and standard terms. Mortgage Specialists are limited to finding you products from their institution. Not a bad thing but it could hamper you if you need creativity.

Mortgage Broker: An independent & licensed professional. Mortgage brokers act like real estate agents. They hold their license at a “house” and can access money from multiple sources – often from your current bank. Mortgage Brokers only get paid if their succeed in getting you a mortgage. Many are focus on long-term business strategies and want your repeat business.

There are other options for borrowing and mortgages such a family, private lenders, the mafia etc. Even if you choose an alternate route, I would still consider having a mortgage broker guide you through the process.

 

 

Advice 4 Agents – Hoping

If you have ever hoped your client would buy a home, you are not a fiduciary.

If you need the commission money, you are not in a good position to be a fiduciary.

If you have ever had a reasonable conversation and listened to the short and long term needs of your client, you are becoming a fiduciary.

As agents, let’s not hope. Instead, act as a fiduciary and trust that the business will come.

Real Estate Gum Disease.

Gingivitis is inflammation of the gums around the teeth and associated with poor dental hygiene, compromised health or a systemic disease or infection. It’s painless and most people who have it are probable not aware. It can progress to periodontal disease and finally tooth loss.

One of the most important things a dental hygienist will do to help you steer clear of gum disease is to probe. He or she will take measurements of your gums to assess the level of bone, tissue attachment and any bleeding. Data collection.

Upon your return three to six months later, he or she will take the same measurements again. Compare the results. Data analysis.

Does your agent show you the data collection and analysis of your listing?

How many page views? How many visitors? How many lead calls? Any emails? Any forwards to friends? What’s the bounce rate? Where do the internet hits come from?

Not all listings sell in the first few days. And, as the weeks progress, the data your listing has created becomes important. The changes in this data are also important.

Like a good hygienist, your realtor should be showing you the data, helping you understand what it means and use it to help you plan.

Of you are not getting this information, you could be suffering from real estate gum disease, it’s painless and you probably don’t know you have it… but now you know.