bulletproofing transactions instructor powerpoint

8/12/2019 Bulletproofing Transactions Instructor Powerpoint

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REVISED EDITION

Making It All the Way

to the Closing

Breakthrough to Mastery

An Agent’s Guide to Bulletproofing Transactions



2


Main Ideas

1. Perspective

2. Inspections and Repairs

3. Appraisals

4. Loan Approval and Funding

5. Other Contingences

6. Co-oping and Communication

7. Deadlines

8. Bulletproofing Strategies



3


Perspective

The Issue

“Owners feel like they are selling too low, and buyers

feel like they are paying too much.” Martin Bouma

Ann Arbor, Michigan

Pages 7-8



4


Perspective (continued)

The Challenge

In this market, a ―yes‖ on a contract is not as solid as

a ―yes‖ in another market.

Page 8



5



The Solution

» Be aware of the most common problems.

» Have good solutions and scripts.

» Avoid problems by addressing common

concerns before they arise.

» Maintain good and frequent communication

with all parties.

Page 9



6



Six Major Issues—Contract to Close

1. Inspections and Repairs

2. Appraisals

3. Loan Approval and Funding

4. Contingencies

5. Co-op Agent

6. Deadlines

Pages 10-11



7 An Agent’s Guide to Bulletproofing Transactions

Inspection and Repair

“I’m finding that we’re getting big laundry lists from

people wanting everything done to the house, and if

you don’t do just about all of it, they’ll walk.” Sharon Hamilton

Santa Rosa, California

Page 12




Inspection and Repair (continued)

Conversations with Customers

Sellers

» Prepare sellers for what to expect in your market.

» Acknowledge their feelings and concerns.

» Ask if sellers are willing to risk losing the buyer.

» Suggest a pre-inspection to prevent unexpected

repairs.

Pages 13-14





Conversations with Customers

Buyers

» Recommend inspectors you trust.

» Educate buyers about where you are in the process

and what comes next.

» Remind buyers that inspectors document everything

they see.

» Help buyers focus on the big picture and important

issues.

Page 15





Attend Inspections

Your Goals

» Answers all your customer’s questions.

» Know what’s on your customer’s mind.

» Keep small issues small.

» Provide vendor referrals (if needed).

»Guide buyers through the next steps.

Don’t let the inspection become a reason to

back ou t of the contract !

Page 17





Negotiation

» Find out how much repairs will cost.

» Enlist the other agent as your ally.

» Adopt a positive mindset: ―Let’s make a deal!‖

“Let me help with the cost of that repair.”

“I’ll pick up one-third of that.”

Page 18





Home Warranty» Home warranties alleviate buyers’ worries.

» In the future, when a repair is needed, new

owners call the warranty company ratherthan you.

Page 19





Negotiating Inspection and Repair Issues

What are your best practices for

resolving inspection issues?

Page 21




Appraisals (continued)

Low Appraisals – Sellers» Do a thorough CMA.

» List the house at an appropriate price.

» Have an appraisal done if there are nocomps.

Pages 22-23




Appraisals (continued)

Low Appraisals – Buyers

Funding Options » Additional down payment from the buyer

» Financial gift from parents/family

» Second mortgage

» Seller-assisted options

Pages 23-24




Loan Approval and Funding

Regardless of which side you represent, make sure

the buyer uses a reputable and trustworthy lender.

Page 27




Loan Approval and Funding (continued)

Buyer Side» Make sure your buyers are preapproved for

a mortgage loan before showing themhouses.

» Offer names of two or more reputablelenders.

» Submit a parallel application for backup

funding when you don’t know or trust thebuyer’s lender.

» Advise your buyers on keeping their financesin good shape.

Pages 27-28





Prequalified vs. Preapproved» Prequalified—the buyer may receive a loan

for a certain amount based on minimalinformation provided to lender.

» Preapproved—the buyer provides detailedfinancial information to the lender and thelender pronounces that the buyer is most

likely to receive the loan.

Page 28





Page 29

Seven Don’ts of Mortgage Funding 1. Don’t change your employment status.

2. Don’t make any major purchases.

3.Don’t increase your credit card debt or miss any payments.

4. Don’t change bank accounts or make undisclosed large

deposits.

5. Don’t apply for a credit card, cosign a loan, or make a credit

inquiry.

6. Don’t spend money you have set aside for closing—not any,

not ever.

7. Don’t delay in providing all paperwork asked for by the

mortgage company.



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A A t’ G id t B ll t fi T ti




Other Contingencies

Sale of Buyer’s House

Additional Approvals

Clouded Title

Pages 34-35

25





Other Contingencies (continued)

Avoiding Contingencies

What other contingencies have you

encountered?

What solutions worked?

Page 36



28





Seller’s Financial Situation

Gather information:

1. When the property was purchased

2. Amount of the loan

3. How much the seller owes the lender

4. Whether there is a second mortgage“Never assume the seller’s agent has asked all the right

questions of the seller.” Terry Moerler

Westlake Village, CA

Page 37-38

Co-oping and Communication (continued)

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Page 39

Escrow Officer» Stay in communication as soon as contract is

signed

Surveys and Vendors» Avoid misunderstandings and differing

expectations

» Ask questions and get things in writing

» Communicate clearly and often

30




30 An Agent s Guide to Bulletproofing Transactions

Bulletproofing with Communication

What questions should you ask to

avoid problems in the contract-to-close process?

Page 40


31





Deadlines

Pages 41-42

Avoid Missing Deadlines» Negotiate closing date

» Negotiate occupancy date

» Confirm inspection and repair appointments» Follow a contract-to-close checklist

32





Deadlines (continued)

Page 43

Meeting Deadlines

How do you keep yourself organized

and on track with respect to

deadlines?



35





Bulletproofing Strategies (continued)

Buyer’s Remorse Triggers

News reports that make them absolutely sure they

have made the worst decision of their life.

Friends who tell them they are nuts for buying ahome now.

Well-meaning family members or friends who say,

―You paid THAT MUCH for your house?‖

Page 46

36






What You Do

» Mark the moment of

victory.

Write down howthoroughly you

considered everything in

the market and why this

house is THE ONE.

Pages 46-49

37






Antidote for Buyer’s Remorse

“You have to constantly resell buyers on their

decision.” Martin Bouma

Ann Arbor, Michigan

Page 49

38






Seller’s Remorse

» Do a CMA.

» Remind sellers of their motivation to move.

» Remind sellers about their destination.

» Discuss the risks of starting over.

Pages 49-50

39





Close as Soon as Possible

Reduce the time buyers and sellers have to

second-guess their decision.

Page 50


40





Early Response—Stay on Track

1. Constant communication

2. Inspecting expectations

3. Problem solving

4. Contract-to-Close tracking

Don’t make any assumptions!

Page 51


41





Handling Buyer’s Remorse

What works when your buyers

change their minds about buying ahouse?

Page 52


42





The Bottom Line

Communicate often with all key people.

Spend plenty of time with your customers.

Handle or closely oversee the contract-to-close

process. Anticipate problems and take preventive action to

avoid them.

Understand the mindset of buyers and sellers.

Look for creative solutions.

Never give up!

Page 53

43





Productivity Boosters

Page 54

Help Buyers Understand the Process

Don’t Forget Closing Details

Communicate with Your Customers

44




An Agent s Guide to Bulletproofing Transactions

My Action Plan

Pages 58-60

Don’t put away this guide without developinga plan to put what you have learned intoaction!

Refer to the Action Plan on pages 58-60 ofthe guide to assess your strengths andareas for improvement.

Write down steps you will take to improveyour skills—complete it, share it, andcommit to it!

45




g p g

Take the other courses in the

Breakthrough to Mastery Guide series! Gaining Mind over Market

Upshifting Your Lead Generation

Seller Pricing Strategies

Seller Staging Strategies

Lead Capture and Conversion

Internet Lead Capture and Conversion

Creating Urgency to Buy

Expense Management Effective People Leverage

Short Sales, Foreclosures, and REOs

Financing Solutions

bulletproofing transactions instructor powerpoint

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