CAMP 4:4:3 Power Session 17: Making Receiving and Negotiating Offers

Power Session 17 Slide 2 Making, Receiving, and Negotiating Offers Introduction Think Possibilities – Believe that anything is possible and then act as though it were impossible to fail. - The Millionaire Real Estate Agent 56

Power Session 17 Slide 3 Making, Receiving, and Negotiating Offers Introduction Objectives… 1)Identify the techniques for writing an offer 2)Identifying the techniques for receiving and presenting offers 3)Define the three P’s of negotiation 4)Practice the techniques 56

Power Session 17 Slide 4 Making, Receiving, and Negotiating Offers CAMP Map 57

Power Session 17 Slide 5 Making, Receiving, and Negotiating Offers How to Write the Offer How to Write an Offer 1.Contact the listing agent and request a Seller’s Disclosure Form for the property. 2.Consult with the buyer to arrive at the price and other terms of the offer you would like to present to the seller. 3.Create a cover letter outlining the offer. 4.Present offer to the listing agent. Request a reply within the shortest amount of time your market will allow. 5.In the event of a counter-offer, consult with the buyer to either accept the counter-offer or to re-counter the offer. 6.All checks (earnest money, etc.) are written when the offer is written and deposited upon acceptance.

Power Session 17 Slide 6 Making, Receiving, and Negotiating Offers Receiving and Presenting an Offer Scripts for Issues in Writing the Offer We want to make a low offer. We want the seller to make repairs.

Power Session 17 Slide 7 Making, Receiving, and Negotiating Offers Receiving and Presenting an Offer 62 How to Receive an Offer 1.Address 2.Price 3.Earnest Money 4.Time for Acceptance 5.Loan Approval 6.Financing Terms 7.Closing Date 8.Home Warranty 9.Conveyances 10.Repairs 11.Special Clauses or Contingencies 12.HOA and Mold Disclosure 13.Possession Date

Power Session 17 Slide 8 Making, Receiving, and Negotiating Offers Receiving and Presenting an Offer 63 How to Present an Offer 1.Present the offer in person. 2.Keep the tone of the conversation as positive as possible at all times. 3.Explain the offer. 4.Reach a point of positive agreement with the seller on whether to accept or counter the offer. 5.If the seller wishes to counter the offer, consult with him/her to determine a reasonable counter-offer amount. 6.Present the counter-offer in person if possible. 7.If the buyer accepts the counter-offer, have the seller sign the contract and fax the contract to the buyer’s agent for the buyer’s signature. 8.Once both parties have signed the contract, retrieve the contract, the earnest money check, and the option check (if applicable in your state) from the buyer’s agent.

Power Session 17 Slide 9 Making, Receiving, and Negotiating Offers Receiving and Presenting an Offer Script for Presenting Offers Presenting an Offer to a Seller Presenting a Low Offer Recommending a Counter-Offer Presenting a Counter-Offer to the Buyer’s Agent

Power Session 17 Slide 10 Making, Receiving, and Negotiating Offers The Three P’s of Negotiation Your goal during the negotiation is to bring the buyer and seller together. To bring the two together, use the three P’s approach during the negotiating process. 66 Prepare Preparation is the key to building confidence and ensuring a smooth negotiation process.

Power Session 17 Slide 11 Making, Receiving, and Negotiating Offers The Three P’s of Negotiation Present Move into the negotiation process by stating your current offer and listening to the response Positioning Positioning is moving both parties closer to each other until you have full agreement.

Power Session 17 Slide 12 Making, Receiving, and Negotiating Offers Practice Role-Model Watch as your instructor role-models the following situations: Advising a buyer who wants to make a low offer Presenting an offer to a seller Discussion Question What situations are you uncomfortable with regarding offers? How can these situations be handled? 69

Power Session 17 Slide 13 Making, Receiving, and Negotiating Offers Practice Exercise 1 Directions: 1.Choose a partner. One person will play the client and the other will play the agent. 2.Review each of the situations below, and then practice handling each. 3.Switch roles. Time: 20 minutes 70

Power Session 17 Slide 14 Making, Receiving, and Negotiating Offers Practice Exercise 2 Directions: 1.Choose a partner. One person will play the role of the buyer’s agent and the other will play the seller’s agent. 2.Take a few minutes to review the information under your role and prepare for the negotiation. 3.Role-play a negotiation. Time: 20 minutes 71

Power Session 17 Slide 15 Making, Receiving, and Negotiating Offers Assignments Power Session Assignments 1.Schedule a one-hour interview with a top agent to discuss the negotiating techniques they use. Keep the notes you take for reference. 2.Shadow your mentor or another agent in your office during the offer phase of a transaction. Go with them during the negotiation and take notes. 72

Power Session 17 Slide 16 Making, Receiving, and Negotiating Offers Assignments Ongoing Assignments 1.Complete 10:5:15:5 a)Collect 10 business cards. b)Make 5 phone calls. c)Send 15 notes or letters. d)Preview 5 homes. Record your progress on the Success Grid. 2.Schedule a one-hour role-play session with your CAMP Buddy. Practice your negotiating techniques. 3.Review the job aid Support Team Worksheet in your Tool Kit. Fill in any additional team members you have identified. 72

Power Session 17 Slide 17 Making, Receiving, and Negotiating Offers Assignments Something to Think About… What do you fear regarding negotiations? How can you overcome that fear? 72

Power Session 17 Slide 18 Making, Receiving, and Negotiating Offers We have talked about… 1)The techniques for writing an offer 2)The techniques for receiving and presenting offers 3)The three P’s of negotiation 4)How to conduct negotiations sum