Welcome to the Mastering buyers Workshop part 2!!!

Winning Multiple Offer Situations! How to Handle Counter offers! Today you will learn: Winning Multiple Offer Situations! How to Handle Counter offers! How to Juggle 3 to 5 New clients! Safety!

Section 1) Winning Multiple offer situations!

1A) once the buyer selects the home they like, how to know if there is going to be a multiple offer situation?

How to know if the listing is going to be a multiple offer situation? On the listing agent only remarks, it says, “Sellers to submit all offers by a certain date and time.” Contacting the listing broker and asking them if they have received any offers yet and if the offers they received are strong, or if the sellers are reviewing all offers by a certain date? If the listing is new on the market, 1 to 7 days old. If the listing is listed significantly below market value. The listing is in a Hot area.

1B) Once we determine there is going to be a multiple offer situation, here is what we need to strategize, discuss, and advise with our buyers:

2)Future pacing the buyer, set expectations!   1)Try to get more info out of the listing brokers about the other offers. 2)Future pacing the buyer, set expectations! 3) Figure out offer price? 4) Add an escalation Clause? 5) What do we do regarding the inspection and time frame, waive or not? 6) How much down payment? 7) Then talk about appraisal? Waive Appraisal? 8) Do a CMA on the property. 9) How about Closing Cost, ask for it or not? 10) How about Closing Date?

11) Charges and Assessments due at closing, who pays for it 11) Charges and Assessments due at closing, who pays for it? 12) Earnest Money Amount? 13) Terms, title, and escrow company, included items, etc? 14) Adding a letter to put buyer in good light? 15) Presenting offer in person to the listing broker? 16) Have mortgage broker call listing agent to confirm how secure the buyer is? 17) Maybe call listing broker and ask them what offer they would sign off on now? 18) Negotiating verbally with listing broker over the phone. Pros & Cons of it

1C) What sellers and listing brokers are looking for in a strong offer?

1c) What sellers & listing brokers are looking for in a strong offer: (Listed in Order of Importants) 1) Cash Offer (Cash is king). 2) High offer price. 3) Buyer to Waive Inspection. 4) High Down payment. 5) Ask the seller or listing brokers what is the most important thing they want to see in the offer?

1c) What sellers & listing brokers are looking for in a strong offer: 6) Waive Appraisal (Kinda scary). 7) High Earnest Amount (Keeps buyers feet to the fire). 8) Need to feel confidence in buyers financing (Have mortgage broker contact listing broker). 9) Buyer to pay their own closing cost (shows buyers are financially strong). 10) Quick Inspection time period. 11) Clean Offer, give them the terms they want, give less contingencies.

Tips to get buyers out of the contracts after mutual acceptance and get buyers earnest money back! 1) Inspection Contingency, but buyer has to do the inspection with a license inspector then get the report to the seller and listing broker. 2) Form 17, seller Disclosure: Buyer has 3 days after receiving the form 17 to cancel based off of anything in the form 17. 3) If it doesn’t appraise and the seller does not want to pay the difference. 4) 10 day information review period. Paragraph x in Purchase and Sale. 5) Condominium resale, 5 days & public offering statement review time frame, 7 days. 6) Feasibility Addendum time period. 7) Or any legal reason.

Group practice !!! We are going to do a practice multiple offer situation. We will have 3 teams of 3’s. We will have 3 make believe buyers. We will have one make belief seller selecting an offer. Winning team will each get a $10 Starbucks card!

Home the buyer loves and want to offer on! Home Details: Been on the market for 6 days, in agent only remarks, deadline for all offers will be 3pm today. Listed at $489,950 Home is in the Northgate/Pinehurst neighborhood. Pre Inspection done and inspection report is attached, it’s in good condition. Built in 1936 There will be a total of 3 buyers bidding on the home!

Section 2) How to Handle counter offers?

How to handle counter offers? 1) Know that time is of the essence. 2) Counter offer will expire within 2 business days or other date or time specified. 3) Review, confirm, and write down what terms other party are counter offering. 4) Using a counter offer addendum, form 36. 5) How to withdrawal an offer or counter offer? Form 36A 6) If the offer or counter offer expiration date expires, but the parties agree after that expiration date, then what happens?

Section 3) how to Juggle 3 to 5 new client's?

3) How to juggle 3 to 5 new clients? 1) The most clients one agent can handle is 5 at one time 2) Setup client on an Auto Email in the MLS. 3) Ask clients do their own home searches at wpandassociates.com and save and email us the mls # of the homes they like. 4) Instruct clients to drive the houses they are interested in first, once they get their, if they like the neighborhood and how the house sits on the lot, then schedule with us to view the inside of the homes they are interested in.

5) Give clients big stack of your business cards, advise client to attend open houses in the neighborhoods they like. When attending the open houses, instruct client to give your business card to the onsite agent and tell them you have an agent and here is your business card. 6) Prioritize who is a Hot new lead and schedule showings and give them the best of your time first, then with what’s left over, service the rest. 7) Getting and training a buyer’s agent, someone that is on your team to show clients home on your behalf or show homes to your buyers that are under $350,000. Once the client is ready to put in the offer, either you do it or if you trust the buyer’s brokers, they do it. The buyers broker compensation will be 25% to 70% of the commission to buyer’s broker depending on how much they do and your agreement with them.

Section 4) Safety!!!

Tip 1) Use your Gut instinct regarding a person or a situation Tip 1) Use your Gut instinct regarding a person or a situation. It is probably your greatest tool to stay safe. It's ok to tell someone, you cannot show right now and will get back to them and leave. Tip 2) Confirm a safety partner! Take a picture of your new client’s ID's before showing and text it to a safety partner. Tell them this is standard company procedure for new clients. Tip 3) Tell your safety partner who you are showing, addresses of properties, and when you are going to be done. Can be done by text, email, or phone call. Then contact safety partner when showings are done.

Tip 4) When showing New clients, ask yourself, how did this person find me, if it's a referral, then check with the referral source to make sure this person pans out or get their pre approval letter from their lender and contact lender. If the lead finds you off a sign or internet, just be a little more cautious because there is no one to vouch for them yet. In this case, have a safety partner show with you when meeting them for the first time or bring them to the office so we can meet them first.    Tip 5) When showing newer clients, do not ride with them in their car, have them follow you in your car, park on the street of the property, not in the driveway in case you need to leave and not get blocked in.  Tip 6) During open houses, home pre views, vacant homes or new showings, have and hide mas, a knife, or taser gun just in case somewhere on your body. Same thing with open houses, let your safety partner know address and time you will be finished.

Tip 7) When showing a home to newer clients, never let them stand behind you, always follow behind them. You leave the front door open and stay on the main floor and let them go view the upstairs and downstairs of the home alone. If you feel un easy, just open the home for them and you wait on front porch till clients are done. Just tell them it's company procedure with new clients to do this for the first few showings.  Most likely, if we stay smart and make it hard for these predators to take advantage of us, they will leave us alone because we are not easy prey. Let’s learn from these tips and listen to our gut so we can stay safe for our love ones and ourselves!