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Category: 5. Working with Buyers

  • The January FOMO Phenomenon

    The January FOMO Phenomenon

    After 20 years as a full-time professional REALTOR® and being a serious student of market trends, I’ve learned a few things. One of them is the ‘January FOMO Phenomenon.’

    One thing that never changes (in my local Calgary market, at least) is that December and January are ALWAYS the slowest two months of the year for sales. Sales are usually marginally higher in January, but not always! The numbers between the two months have been remarkably close over the past several years.

    This contradicts what most people think (including practically every other agent I know). After all, it’s easily explainable why sales are slow in December. It’s the dead of winter, and who has time for house shopping in the weeks leading up to Christmas?

    But why are sales so slow in January?

    Most people considering buying a new home wait until the New Year to start their search. This makes sense. New year. New beginning. New home!

    And, indeed, there is always way more showing activity in January than in December. It’s not even close. I typically have three to five times more showings in January! 

    But here’s the punch line:

    More showings does NOT equal more sales.

    This can be super frustrating for sellers. They’re getting way more activity, but still, no offers! Why?

    Here’s the simple explanation: Most buyers looking in January are getting an early start on their search, and they don’t feel any sense of urgency. Even if they come across a listing they love, they often think, “This one is great! But there are lots of new listings coming on, so let’s wait and see what else pops up over the next month or two.” 

    They fear missing out on a future listing that could be better than the one they already like. That’s FOMO.

    Then, as time passes, sure enough, there are more listings but ALSO way more competing buyers.

    Suddenly, we’re in the middle of the spring market! It’s remarkable how quickly we transition from the ‘winter doldrums’ to the ‘spring frenzy,’ which often catches buyers off guard.

    In most cases (not always), if a buyer has flexibility, they should start their search sooner (yes, in January) rather than later (when the market becomes significantly more competitive). 

    Of course, you still want to ensure you’re buying something good for a fair price! But the more time you put into ‘doing your homework’ (viewing properties), the more comfortable you’ll be in making a decision, even if the market conditions start getting hotter.

    What about sellers? In most cases (but not always), listing your home in January is not much different from listing it in December (it sucks). As I stated, even if you find a very interested buyer, FOMO may prevent them from writing an offer. 

    Ideally, if sellers have flexibility, they should list closer to the beginning of the spring market when there is the most buyer activity. 

    By the way, ‘Early Spring’ is always a better time to list than ‘Late Spring’ (even if you think that’s when your house shows its best), but I’ll leave that topic for a future Rant. For now, suffice to say I’d rather my house showed 95% with 3X the buyers, compared to 100% with only 1/3 as many buyers (the fussiest ones to boot).

    All the best in 2025!

    Ted

    P.S.  I wrote this at the beginning of January, and today (Jan 20), it’s clear that we’re in for another banner spring market, barring any outside interference, such as American tariffs. What about your market? Let me know in the comments!

  • High Productivity Step #1

    High Productivity Step #1

    Wise Ted Factoid (WTF) #43:

    You must establish good habits BEFORE—not AFTER achieving your goals.

    In the Real Agent Memo this year, I’ve focused a lot on organizational and productivity skills. That’s because you need these skills in order to support a business where you can comfortably complete 50-100+ transactions per year.

    Even if your goal is only to do 25 deals per year, wouldn’t you rather do it more efficiently, with fewer mistakes, fewer missed opportunities, more time off, and with an abundance of thrilled, high-quality clients referring you to their friends and family?

    I know plenty of agents who are stuck at X # of deals, year after year, and they can’t imagine how they could ever get to where they want to be without doing one or both of the following:

    1. Working 18 hours per day, seven days a week, and/or

    2. Having a massive heart attack.

    Well, I don’t want you to do either of those things! And you don’t need to.

    You need to stop READING about productivity and start DOING something about it. So what’s Step #1?

    Start SETTING and HONOURING ‘Appointments With Yourself’

    If you’ve been reading this column for a while, you’ve heard me talk about Appointments With Yourself many times. In fact, it was in the last RAM – 4 Simple Steps to Get Out of a Rut. 

    Remember? As you read it, you nodded and said to yourself, “Yes, I’ve got to start doing that!”

    Then, you immediately did nothing. Hey, it’s human nature. We all do this.

    So, here’s a reminder and a plan to implement my High Productivity Step #1 before you exit this email. First, let’s clearly define an ‘Appointment with Yourself’.

    It’s an appointment on your calendar that you’ve set for yourself (the same as with anyone else) with the specific goal to start or complete a task or project. The key is that you MUST honour the Appointment With Yourself just as you would honour an Appointment With Anyone Else.

    For example, if you’ve got an ‘Appointment With Your Dentist’ at 3:00 p.m. on Wednesday, you don’t call them at 2:45 and cancel because “something else came up,” do you? No, of course not! And yet, most of us REALTORS® are utterly disrespectful of our own time. We put everyone else’s needs ahead of our own, which is entirely counterproductive.

    So, here are some tips on setting and honouring Appointments With Yourself and taking the first and most crucial step towards massively increasing your productivity.

    1. Set Appointments With Yourself for weekday mornings. (We tend to get busy with clients in the afternoons, evenings, and weekends.)

    2. Start small and practice – Think of something you need to do, and set an Appointment With Yourself for five minutes to work on it. That’s it. 

    3. If something comes up that conflicts with your ‘Appointment With Yourself,’ figure it out. “Can we look at this house on Wednesday at 10:00?” No, sorry, I have an appointment at that time. How about at 11:30? Or whatever. (This is not Rocket Surgery.)

    4. Start ON TIME every time, just as you would (I hope) with an ‘Appointment With Anyone Else’. Treat yourself with at least the same respect you would extend to Anyone Else. It may seem trivial to start five minutes late, but there’s a bigger picture here (establishing good foundational habits).

    5. When you finish the allotted time for your Appointment With Yourself, always set another one to guarantee you’ll eventually complete the task or project. Nothing is stopping you from continuing with it in the meantime whenever time allows, but you MUST still honour the next appointment, no matter what.

    Still trying to figure out where to begin? Here’s a suggestion. As mentioned, I’ve been chatting about various productivity topics since the start of the year, so why not set an Appointment With Yourself (for five minutes) to re-read this article from January 11:

    New Habits for a New Year

    After that, your next step should be obvious.

    Or, set an Appointment With Yourself (for five minutes) RIGHT NOW for whatever other task you’ve been avoiding.

    Do it NOW, before you close this email!

    • Coach Ted
  • The Ultimate Sales Superpower

    The Ultimate Sales Superpower

    Last RAM, I talked about the #1 most powerful question to initiate meaningful dialogue for prospects:

    What’s your biggest reason for moving?

    Click here to re-read why this question is 10X more potent than all those other questions most agents machine-gun at their prospects.

    ____________________

    You know how I always talk about not being a Salesy Slickster? 

    Let’s be clear: You must avoid old-school manipulative sales “skills.” NOBODY falls for that crap anymore. It’s just a big turn-off.

    Rather, we need to work on actually delivering exceptional results for our clients, which is essentially what the Agent Skills Masters Program is all about. 

    But in order to deliver exceptional results, you still need “new-school” sales skills!

    It boils down to what you care about. For example, are you focused on where your next commission cheque is coming from? Or are you focused on how you can help your clients achieve their goals?

    And, assuming your my kind of agent and you’re genuinely focused on your clients, what’s the ultimate sales superpower?

    The ability to read your prospects’ minds!

    Well, that would sure be nice, wouldn’t it? But how, pray tell?

    It’s called EMPATHY. 

    But since empathy sounds like sympathy, most of us think of this as a soft skill that we all have naturally, and we don’t need to do anything to implement it. That’s dead wrong.

    Here’s how you should apply empathy to become more successful:

    Think about what your prospect really cares about. If you were them, what would you do? And why? What’s the real reason behind their “why”? What drives them? How do they get rewarded? 

    Putting focus, time, and energy into EMPATHIZING makes everything so much easier. 

    Instead of talking, pitching, persuading, pressuring… use EMPATHY. Think like they do, and watch your sales go through the roof.

    You can start by asking the right questions, such as:

    What’s your biggest reason for moving?

    Then, LISTEN carefully to the answer and probe further, always working to gain a greater understanding. That’s EMPATHY, and it’s your ultimate sales superpower.

    Thanks to Brian G. Burns for the inspiration on this RAM.

  • The #1 Most Powerful Question to Initiate Meaningful Dialogue with Prospects

    The #1 Most Powerful Question to Initiate Meaningful Dialogue with Prospects

    Module 4 in ASMP is called “The Follow-Up.” I devoted an entire module to this topic because it’s something that most agents suck at. Most just lack a simple system to follow.

    Or, their system is writing notes on scraps of paper and promptly losing them under their car seat. Have you ever found a note about a “hot lead” two weeks later? Oops! $10K down the proverbial toilet.

    This is why I include a ridiculously simple spreadsheet in “The Follow-Up” and show you how to use it. “The simpler, the better” is my motto throughout the course.

    (By the way, my entire course only costs a quarter of the last $10K you flushed.)

    Beyond the basic core principle of keeping track of prospects, most agents don’t know how to ask the right questions to nurture the relationship and create a positive atmosphere that promotes ongoing dialogue. 

    If you’re reading this, chances are you genuinely want to help people get what they want. And you understand that the more people you help, the more success you’ll have.

    But most agents don’t understand that the easiest way to succeed is to understand WHY your prospects want what they want.

    For example, when someone expresses interest in moving, you probably launch into a string of questions:

    What’s your price range? What areas are you interested in? What’s your time frame? These are all good questions to ask, eventually…

    But here’s a much better question to ask first:

    What’s your biggest reason for moving?

    When you understand their motives, you can focus the conversation on helping them achieve their wants and needs by making helpful suggestions and adding value to the discussion.

    Isn’t that far better than machine-gunning questions at them and sounding like a Salesy Slickster (even if that’s the opposite of your intention)? 

    Perception is far more powerful than your best intentions, after all.

    Next RAM, I’ll talk about some other powerful prospecting questions.

    Or, does it make sense for you to jump off the fence and sign up for my course here? You get lifetime access for a one-time fee, go at your own pace, do it over and over again if you want, and it’s 100% guaranteed. If it’s not for you, just tell me, and you get all your money back.

    It’s almost October. Now is the best time to learn some new skills, systems, and procedures and be ready to dominate in 2024!

  • Don’t Be a Bummer

    Don’t Be a Bummer

    Sometimes, I have to rack my brain for hours to think of a good topic for the RAM, but this one practically wrote itself. 

    Last Thursday, I got a call from prospective buyers from Edmonton (I’m in Calgary). They’ve lived in Edmonton for years, but their kids (and grandkids) all live in Calgary now, so it’s time to move closer to their family.

    Also, Edmonton sucks… (As a Calgarian, I’m required to state this fact.)

    I’m talking to her, and she lets on that I’m the second REALTOR® she’s talked to, but they weren’t very impressed with the first guy. Apparently, he was “very negative,” saying stuff like this:

    The market is insane in this price range. Everything is selling in multiple offers way above asking. It’s super-difficult for buyers, especially when you’re not in the city and unable to react quickly—blah, blah, doom, gloom, etc.

    So, she asks me, “What do you think?”

    Well, the market is what it is. There’s nothing much we can do about that. But here’s what we can do:

    I’ll set you up on a Web Portal so that you can see all the listings on the market in your price range and geographical area and be notified automatically whenever there is a new listing, a conditional sale, or a firm sale. This way, you’ll start to learn the market a bit.

    Next, I recommend that you come down on a Saturday, and I’ll set aside 2-3 hours, and we’ll drive around and look at several listings. By doing this, you’ll learn more, and hopefully, you’ll be ready to react quickly when the right property comes on the market. When it does, I’ll give you all the benefit of my experience to increase your odds of getting it for a reasonable price. I can even FaceTime you if you’re in Edmonton and if I think it’s a good one.

    How does that sound? I can set you up on the Web Portal right away.

    “Super! Please do that, and we’ll be in touch soon. Perhaps we can come down this Saturday.

    Within an hour, they let me know they could come, and I set up six showings for Saturday afternoon.

    Well, you wouldn’t believe what happened next! On Friday, she emails me about a new listing, “This house looks perfect. It’s in the exact area we want to be in, and the price seems reasonable. It’s got everything we want.”

    OK, great! I’ll add that to our tour on Saturday! 

    But unfortunately, I went to book the showing, and the listing agent had the entire day on Saturday blocked out. I checked in with the buyer, and they were staying over Saturday night, so I tried to book it for Sunday morning. 

    No can do! The tenant apparently had Zoom meetings on Sunday morning and couldn’t accommodate showings then, either.

    Well, this is getting stupid. You can predict what’s going to happen. The showings get backed up to Sunday afternoon and all day Monday, and then it sells way over asking on Monday evening.

    I contacted the agent and resisted the urge to give him hell about listing a property that could not be shown within 24 hours (breaking our board rule). Instead, I had a friendly chat with him. Apparently, the tenant kept the house impeccable, but she was also very particular about when the house could be shown or not. The owner went along with it because she was such a great tenant overall. I should also say that it was apparent this agent was new—super enthusiastic but lacking experience in this crazy market.

    I conveyed all this to my client, and she asked, “Well, is there anything we can do? We really feel like this is the perfect house!”

    So, I told her the only possible chance of getting it before it went into multiple offers would be to write a strong offer sight unseen but with a home inspection condition. 

    Now, understand I’m not in the habit of making these types of suggestions to my clients, and I explained all the risks, up, down, and sideways. But they were so convinced this was the right house that they decided to try it. 

    I wasn’t holding out much hope because, honestly, if they were my sellers, I would have convinced them never to accept such an offer. But due to the right combination of circumstances (difficult tenant/motivated seller/inexperienced agent), I figured it was worth a shot. 

    And it worked! We got an accepted conditional contract in place before any other agent could even see the property! And for a very reasonable price which is difficult to accomplish in this market.

    But now, the scary part! The buyers came down on Sunday at 1:00 pm to see the home, keeping our original appointment.

    Well, what a pleasant surprise! The house was even better than it looked in the listing, and the buyers were thrilled! We had the home inspection yesterday, and it’s now a firm deal.

    This was the easiest transaction I’ve done for as long, albeit with a fair amount of luck on our side. However, the point of this story is that I landed these buyers as clients when the other agent did not because he was so negative. Even if we hadn’t been so lucky, I certainly would have found these folks a home eventually.

    I didn’t make light of the market challenges, but at the same time, I focused on how they could succeed, giving a few examples of my recent success with buyers in the same market. 

    Always show some positivity to your clients. Show them some light. Be on their side.

    Don’t be a bummer!

  • How to Be More Effective With Indecisive Buyers

    How to Be More Effective With Indecisive Buyers

    You’ve shown your buyer 50 properties.

    Finally, you find the perfect one! But now your client is too indecisive to commit.

    Most likely, you’re dealing with a Highly Analytical personality type, who likes neatly organized data that they can input into a spreadsheet and have it spit out a reliable and decisive answer.

    But skilled REALTORS® know there are far too many variables which can cause these types to descend into Analysis Paralysis.

    This scenario can be super-frustrating, especially when you know in your heart that you’ll never find a better property for them, so what’s the point of continuing? Should you cut your losses and fire the client?

    Only in the most extreme case (when the client is full-on bat-shit crazy.)

    Otherwise, you can learn to be far more effective at working with the most highly analytical (indecisive) buyers.

    Here’s how:

    1. Learn to recognize the Analytical personality style early on. A surprisingly high percentage of people fit into this category, so dedicate some time to improving your knowledge and skills around this topic.

    (I can’t teach this in a simple blog post, so schedule some Learnin’ Time!)

    2. Accept the fact that it takes longer for Analytics to make a decision. I always tell my buyers, “Hey, we’re doing our homework. We need to see several properties. Then, when we find the right one, you’ll be ready.” This puts them at ease. You can’t rush an Analytic, but you can meet their needs and give them guidance at the same time.

    3. Discuss with them regularly about focusing on the critical “macro” elements, such as location, floorplan, and overall condition/finishings. And, reiterate that “micro” items, such as paint, worn carpeting, or old appliances, can be easily changed and are much less critical to the big picture.

    (TedBit: Early in my career, I walked into a house with a new buyer client, and he immediately whipped out a measuring tape and started taking measurements. I asked him what he was doing, and he said, “Oh, I just want to see if our china cabinet will fit here.” I convinced him that we should check out the floor plan first, and if he liked it, we could do some measurements afterward. From then on, I convinced him (and all my clients) to focus on the macro stuff first.)

    4. Understand that applying pressure is the worst thing you can do with an Analytic. It will make them push back or, worse, go silent and secretly label you as a Salesy Slickster. Instead, ask a few probing questions:

    Are there any crucial features you want that are missing? 

    Help me to understand, please; what exactly are you still determining? 

    Based on what we’ve seen, do you still believe you can get everything you want within your stated price range? Or should we pause and recalculate realistic expectations?

    Are you worried that something better might pop up tomorrow if you write an offer on this one today? (Answer = “Yes!”) But isn’t that true on any property, whether it’s today, tomorrow, or a month from now?

    I’m not suggesting that you rapid-fire all those questions at every buyer in every situation. These are just a few examples of how to probe to determine what is holding them back. You’re guiding them to figure things out “on their own,” which is an essential part of their process.

    Just because you have an Analytical client doesn’t mean you can’t help them with well-structured questions. In fact, unlike the Driver Style (topic for another day), most Analytics will respect your expertise and appreciate you being direct with them.

    5. If they’re still wavering, try The Trial Offer

    Propose writing a hypothetical and simplified offer while assuring them it’s just an exercise. You must do this with zero pressure! 

    1. What would the price be?  You can discuss how their offer might be perceived. But whatever the number is, write it down. Remember, it’s just a practice exercise!

    2. What additional items, such as appliances, would be included or excluded?

    3. How much would the deposit be?

    4. What would be the terms and conditions?

    5. What would be the closing date?

    Write all this out on a blank piece of paper, give it to them, and let them know that if they change their minds, you can write it up tonight, tomorrow, or whenever.  

    The exercise of completing a Trial Offer by writing it out in simple form has the effect of making it less scary.  I’ve done this numerous times where the buyers looked at the piece of paper and said, “Well, let’s just go ahead and give it a try!”

    Or they’ll call me on their way home and say the same thing, “We thought about it, and let’s go ahead and give it a try!” They just needed a few more minutes to mull it over.

    Using zero pressure and simplifying the process can be the most effective way to convince an indecisive person. 

    I go into much more detail on dealing with all different personality types within the Agent Skills Masters Program. But if you don’t take the course, I strongly recommend you seek out more knowledge on this topic elsewhere.

    After all, having a clear understanding of the four distinctly different communication styles is critical to your future success.

  • 5 Critical Topics to Discuss with Every Buyer

    5 Critical Topics to Discuss with Every Buyer

    One of the most common mistakes REALTORS® make is not scheduling time to discuss the fundamentals with their clients. We tend to forget that we do this stuff every day, but our clients do not!

    Then, when the client goes off track (in one of a multitude of ways), we blame them. Damn clients! They should have asked me!

    News flash: It’s not their fault. It’s your fault for not educating them ahead of time. 

    When it comes to new buyer clients, I recommend scheduling a meeting with them as soon as possible in the process. If this isn’t practical, figure out a different way. For example, it could be in your car in-between showings. 

    I know it’s old-school to drive your clients around in your car, but old-school doesn’t automatically mean it’s wrong. On the contrary, I find that “car chatting” time is invaluable for developing rapport and loyalty with new clients, even if I only do it the first one or two times.

    If it’s not a scheduled meeting (best) or in your car (second best), figure out another way; maybe it’s just a simple phone call. Just don’t forget to do it, or you’ll be sorry! 

    You don’t believe me? You must be new…

    Every experienced agent can tell multiple stories about losing buyer clients (and tens of thousands in lost commissions) because we didn’t take a few minutes to educate them on the fundamentals.

    #1 Establish Wants and Needs

    This is the first topic you need to discuss, and it forms the basis of setting up an auto-notification on your MLS software.

    Listen carefully, give feedback, and make suggestions to expand or refine their search criteria. It’s your job as a professional to provide guidance. 

    I could easily write an entire RAM on this topic alone, but suffice to say, the worst thing you can do is set up an auto-notification for your clients and then fail to communicate with them regularly. 

    I’ll write more about this topic sometime soon. Probably maybe.

    #2 Align Your Motivation Levels

    Just say something like this, “If you’re a ONE, I’m a ONE too, and you won’t be hearing much from me. But If you’re a TEN, I’m going to drop everything right now, and let’s go find you a house!”

    This will relieve pressure and make them feel more in control of the process. If they truly are a ONE, the last thing they want is you chasing after them daily. On the other hand, you’re clearly communicating that you’re ready, willing, and able to respond quickly to their needs, whenever they are ready. 

    By the way, if your client says they’re a ONE, this does not mean you should ignore them. They can go from a ONE to a TEN in a hot second. You need a system to communicate effectively without being annoying (another topic!). 

    #3 Getting Pre-Approved

    It’s obvious (to you) why getting pre-approved is so important, but you need to explain it from their perspective.

    Being truly pre-approved is quite different from a verbal, “yeah you should be good.” Explain why it is so important to follow through and submit all the necessary paperwork to their mortgage professional ahead of time. It can take the bank several days to process an application, so the more work they do up-front the less chance there will be of a delay and possibly missing out on the perfect property in a competitive market situation. Paint a picture! Speak from experience! Convey the urgency!

    Also, if interest rates are rising, explain to them why it’s essential to have a rate hold in place, and to be aware of when that rate hold expires. They need to maintain ongoing communication with their bank or broker.

    I’m not the REALTOR® who refuses to work with anyone who isn’t truly pre-approved. Sometimes I make a judgement call. But I do make absolutely sure that my buyers understand the importance of it, and I follow up with them regularly to ensure they’re getting it done.

    #4 Review All Required Paperwork

    The Buyer Meeting is the ideal time to discuss Agency, the Buyer’s Brokerage Agreement, and the Purchase Contract.

    Everyone has a different opinion about the Buyer’s Brokerage Agreement. Mine is, it’s incredibly confusing and stupid, and I wish it didn’t exist. 

    It’s the part about ‘forced agency’ that I disagree with, by the way. If I have a buyer client, and I’m doing a lousy job, that client should not be forced to continue the relationship. That said, there are other legitimate reasons to have this form signed, including transparency about how I get paid, etc. I just wish they took out the ‘forced agency’ part.

    Since I don’t make the rules, I always give my clients a copy and ask them to review it and sign it whenever they feel confident to do so. Yes, I tell them I think it’s stupid (I’m always dead honest), and I explain why. 

    In my jurisdiction (Alberta), we have the Consumer Relationship Guide, which explains the agency relationship. I do review this form and ask my buyer clients to sign it at the initial meeting. After all, it’s not a binding contract in any way. It’s just a simple acknowledgment of my role, but the act of them signing does have a psychological effect, I think, that further cements our relationship.

    In addition to the above, I think it’s wise to review the appropriate Purchase Contract ahead of time and all other paperwork required in your jurisdiction.

    #5 Preplan Negotiations

    Reviewing the purchase contract is a great way to initiate a discussion about potential scenarios when writing an offer. For example, what is a reasonable deposit amount? What conditions will they include? What are all the various factors which may affect the price? Etc.

    I guess that’s another topic! Hey, I know I’m not going into much detail here. If you’re reading this and you want to have a chat, feel free to call me any old time 403-973-9730. Yes I answer my own phone, unless I’m in an appointment.

    There are numerous other topics to discuss during the Buyer Meeting, including FSBOs and New Construction (make sure your buyers always contact you first), what to do about potential hidden cameras and microphones, how to keep a tally of the best listings (and forget about the rest), how you will help them work through conditions, and much more.

    Come to think of it; I could write an entire RAM on each of these topics. Of course, I do go into much more detail within the ‘Working with Buyers’ module in the Agent Skills Master’s Program. But the main point of this short post is, one way or another, to make sure you thoroughly discuss all these topics as soon as possible and preferably before you even get started looking at properties.

    This will not only alleviate future mishaps, but perhaps even more importantly, it helps to establish your role as a trusted advisor, and further cements your relationship.

  • How to Partner with your Buyers and Win More Negotiations

    How to Partner with your Buyers and Win More Negotiations

    You’ve been working hard with Sam and Suzy Buyer for months. Finally, you find the perfect house, and it’s listed at a great price!

    There’s only one problem…

    Sam and Suzy want to write a low-ball offer.

    Try as you might, they insist, you write it, the Listing Agent laughs in your face, the deal goes nowhere, and…

    The house sells the next day to someone else for the full asking price.

    You’re frustrated and angry with Sam and Suzy.

    Well, you might as well go ahead and fire them because you’re never going to find them another house that good for that price.

    But this situation is not their fault. It’s your fault.

    Yes, you must follow your clients’ lawful instructions. But you’re not a robot.

    You’re a highly-skilled (human) expert advisor, right?

    So, here’s how you — the expert — can ensure the above situation never happens:

    1. Ensure the buyers understand how the negotiation process works, long before you ever get to this stage. Ideally, this is part of your formal Buyer’s Meeting, but at the very least, you discuss it over the phone or in-person early on in the relationship.

    2. Explain that the offer depends on the property’s true value, not the list price. This means that a low-ball offer might be warranted sometimes, but if it’s a well-priced property, they need to recognize the opportunity and be willing to offer close to asking.

    3. Ensure you’re not dealing with flakey-flakes. If you are, fire them and move on. Honestly, who has the time to waste on flakey-flakes?

    4. Partner with your clients to earn their cooperation and respect. See below:

    Partnering with your clients:

    When you’re ready to write an offer, determine the best negotiation strategy, and discuss it openly with your clients. This makes them feel part of the process, improving the likelihood of a successful conclusion.

    Lay out all the possible repercussions of whatever strategy you are recommending.

    “Here’s my plan, here are all the possible responses we might get, and here’s what I suggest we do in each different scenario.”

    The more you tell them, the less stuck they might feel when you hit an impasse and need to re-evaluate your strategy. After all, you’ve already anticipated every possible scenario,

    I’m always gobsmacked at the number of agents who haven’t got a clue about how to negotiate a deal. 

    How do they even survive?

    The biggest rookie mistake? Giving up too easily.

    Second biggest? Thinking they’re doing their clients a favor by acting belligerent.

    Successful agents know that the sellers want to sell, and the buyers want to buy. A successful negotiation is a cooperative process, not an adversarial one. 

    Most of all, successful agents know the importance of educating their clients well ahead of time and partnering with them during the negotiation.

    This article was inspired by module #5 – Working with Buyers – part of the Agent Skills Master’s Program. 

    In the ‘Working with Buyers’ module, I explain step-by-step how to establish a solid foundation for your buyer-client relationships, tactfully control the buying process, and minimize wasted time. Stop being a door opener and start earning the respect you deserve as a highly-skilled expert advisor.

    Here’s another article inspired by the same module: Ten Tips for Working with Builders

  • The Target Buyer

    The Target Buyer

    When you’re advising your seller clients—on both price and presentation—the most important thing to keep in mind is this:

    WHO is the target buyer?

    For example, let’s say it’s a starter home in a newer suburban neighborhood. 

    The most likely Target Buyer is a young couple with little kids or planning to have kids.

    So what’s important to them?

    ——————–

    One thing could be the proximity to parks and schools. Whether it’s a plus or a minus, this needs to be considered when determining the list price.

    Another thing is that young buyers probably prefer more modern finishings. And, they want as many bells and whistles as they can get (within their limited budget). 

    For example, some starter homes have master ensuites, and some don’t. Does your Target Buyer want an ensuite?

    You bet your sweet bippy!

    All the arguments from your sellers about why it’s better not to have an ensuite (bigger bedrooms, one less bathroom to clean) mean diddly-squat when you try to convince the Target Buyers that they don’t need one.

    They’ll stare at you like you’re a blithering idiot.

    “OK, fine. But the difference in cost between a house with an ensuite or without an ensuite is probably less than $10K,” says your prospective seller with no ensuite.

    Resist. Urge. To. Roll. Eyes.

    The difference in cost at the time of construction is ancient history. We’re talking about perceived value TODAY, and it’s a LOT more than $10K. 

    ——————–

    But it’s not always about price. What inexpensive improvements could be made to increase the value of your new listing, from the perspective of your Target Buyer?

    A Home Staging Consultant could provide some great ideas for maximizing value. Perhaps they’ll recommend a splash of bright paint on a highlight wall or a powder room. Or, maybe your sellers need to freshen up their artwork with some modern pieces? ️

    Remember, it’s your job to define the Target Buyer and determine the best pre-listing prep and marketing ideas to maximize the property’s value. Bringing in another professional to help will only enhance your image.

    By concentrating on catering to your Target Buyer, your clients will sell quicker, for more money, and you’ll get more referrals.

    ____________________

    This article was inspired by module #10 – The Big Picture CMA – part of the Agent Skills Master’s Program.

    Within this module, you’ll learn all about a simple but highly effective simplified system for determining the right price, developed by Ted, and now offered exclusively to Agent Skills students. The Price Adjustment Method? Throw that ridiculously complicated system in the garbage where it belongs. Keep it simple, and obvious.

    Here’s another article inspired by the same module: The Big Picture on the Competition.

  • Gifts of Gratitude

    Gifts of Gratitude

    I’m not Italian, but sometimes I wish I was.

    I’ve traveled to Italy three times, and I’ll definitely go back again. It’s astonishingly beautiful, with architecture, art, and history that is mind-boggling compared to North America’s relative newness.

    But what I love the most about Italy are the Italians. They know how to live.

    For example, they take great pleasure in preparing a meal and sharing it with family and friends. Every meal is an event for them. Time spent together with loved ones is the most important part of their day.

    I’ve been lucky enough to experience this first-hand, several times, and I’m grateful for it. Just writing this makes me yearn to return to Italy.

    ——————–

    I’m also a fan of old movies. There’s a scene in ‘It’s a Wonderful Life’ (1946 – Jimmy Stewart), where the Italian family is taking possession of their new home. They’re given a traditional Italian housewarming gift of bread, salt, and wine.

    “Bread, so your home will never know hunger, salt, so life will always have flavor and wine for joy and prosperity.”

    This scene inspired me to do something similar for my buyer clients. First, I stocked up on the following items, bought in bulk at wholesale (40%-50% off), which was surprisingly easy:

    • Hand-made cutting boards
    • Name-brand stainless-steel bread knives
    • Flavor-infused sea salts

    I also bought several cases of wine at once and negotiated a deep discount.

    My office was always stocked up, so there was never any scrambling at the last minute to buy a gift for possession day.

    On the morning of a possession, I would stop by my favorite bakery and pick up a freshly baked loaf of their crusty sourdough bread.

    Then I’d assemble whatever I was going to give the client, depending on the circumstances. For example, if it was an inexpensive condo, it might be a loaf of bread, a simple cutting board, a few different salts, and one bottle of wine.

    For an expensive home, it might be the loaf of bread, a fancy cutting board, the bread knife, several packages of salts, and 3-4 exceptional bottles of wine.

    I’d arrive at the home a few minutes early and assemble everything on the counter, along with a hand-written note.

    When they got there, I’d make the presentation, explaining that it’s a traditional Italian house-warming gift:

    “Bread, so your home will never know hunger, salt, so life will always have flavor and wine for joy and prosperity.”

    I can’t even remember how many of my clients burst into tears when I did this. And I’ll never forget the giant bear-hug I got from Mike, a 300-pound ex-linebacker.

    Was it memorable? 

    Hey, paisano. You better believe it.

    ——————–

    The purpose of this story is not to suggest you copy my idea. It’s this:

    You need to put some real thought into the gifts that you give your clients.

    Not just house-warming gifts, but also other gifts to show appreciation for a referral, for example.

    Whenever I saw something cool at a craft show, or when I was traveling, I would “stock up” on those items, so I always had an inventory of unique gifts in my office.

    You don’t have to spend a lot of money. It truly is the thought that counts. 

    And when it’s something of real value (like a hand-made cutting board or a high-quality stainless-steel knife), that’s something they’ll keep forever, and they’ll never forget where it came from.

    You may never see them again, but those happy clients could be a referral source for you for the next ten years.

    Never forget: You’re in a relationship-based business. Every little thing you do to nurture your relationships is important.

    ——————-

    One last thing: Please do NOT under ANY circumstances attach your name to any gift you give a client. It cheapens it. 

    Imagine if you worked for 50 years and were given a gold watch at your retirement party, and your boss wrote his name and phone number on the back of it, so you’d never forget who gave it to you. If it were me, I’d bring it home and throw it in the garbage.

    Ask yourself a simple question: Is it a gift of gratitude, or is it cheap advertising? It CAN’T be both. 

    ——————–

    This article was inspired by module #8 – Generating Referrals – part of the Agent Skills Master’s Program.

    Within this module, you’ll learn all about how to develop a business with a never-ending stream of incoming referrals. Here’s the thing: You don’t get referrals by asking. You get them by deserving. When you do the right things, you don’t need to ask.

    If you’re not ready to make a giant leap forward in your career, you could learn a tiny bit more about Generating Referrals here: The $100,000 Commission