pro 21 reloaded module 4 exclusive mandates plan prepare...
TRANSCRIPT
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Pro 21 Reloaded – Module 4
Exclusive Mandates – Plan Prepare Perform
What is a Mandate?
According to the EAAB Code of Conduct a mandate is:
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Types of Mandate
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Which mandate do we want to work with?
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He who controls the stock,
controls the Market!
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Why do I need a Sole and Exclusive Mandate?
Remember when we talk about a mandate we are talking about a Sole and
Exclusive mandate.
• 80% of all homes sold in South Africa are sold when under a mandate in
some form or another to a specific agency and agent.
• The most successful agents are ALWAYS those that have the most
mandates.
• The top “millionaire” agents never work on open listings. They spend all
their time, energy and effort working on their mandates.
• A mandate ensures the best possible commission split for you. You will
sell 80% of your mandates and therefore, in 80% of your deals you will
make 100% of the agent’s commission on a sale.
• You automatically accumulate Oyster Points to better your chances of
qualifying to become a Pearl Awards agent.
• Top “millionaire” agents make money when the other agents in the
office sell their mandates. So in their minds, the other agents in the
office are their “sub agents” and because of this, they experience
frequent monthly commission pay-outs
• 8 sole mandates at a time
• The top “millionaire” agents use their mandates to promote themselves
in their areas. One mandate generates another which generates
another and so on. Therefore you need just ONE mandate to start
becoming that top “millionaire” agent.
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Benefits of a Mandate
• Control of the listing eliminates the competition (this is what business
people in any industry dream about)
• Allows you time to not only build a professional relationship with the
seller, but also a close friendship. This will result in the seller feeling
uncomfortable to cut commission when a deal is done at a later stage.
• It also allows you the opportunity to safeguard your commission by not
competing with other agencies that do cut commission.
• Gives you the platform to market yourself in your territory (it effectively
is your very own Century 21 office right in the middle of your area and is
free of charge)
• Gives you time to plan a thorough and relevant marketing campaign
and to be different and unique.
• Allows you the time to qualify your potential buyers before viewings so
that you and the seller are not disappointed later on
• Gives your principal the incentive to spend money on marketing and
obviously this benefits you as the agent.
• Gives you enough time to gather ammunition to be able to do price
counselling in a proper and factual manner as your buyers view the
property
• Most importantly, it gives you, the agent, a clear-cut and structured
function and duty and eliminates you “running around like a headless
chicken”
• A SOLE MANDATE IS A SIGNED POST DATED CHEQUE
The Benefits of a Sole Mandate for the Seller
• The seller deals with one agent from one real estate company. This
simplifies their lives and eliminates security concerns
• The agent has to now be accountable to the seller as the agent
cannot pass responsibility to others. This creates a business relationship
where the agent and Century 21 Global have to perform and this can
only be good for the seller.
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• The agent can now control viewings and can pre-qualify buyers
ensuring only relevant buyers are introduced to the property (no time
wasters and eliminates future disappointment).
• The agency and the agent now has the time to ensure that every
single buyer for that price range at that point in time in that particular
area is introduced to the property. This is achieved through proper and
thorough marketing by the agency and the seller’s property is not listed
and ignored
• The possibility of a double commission claim is eliminated
• The possibility that the home is used as a springboard by other agents
for other sellers is eliminated. This practice is very common on open
listings
• A sole mandate gives the agent and the agency the incentive to use
all the facilities and marketing tools available to offer top service i.e.
Website, newspaper adverts, show-houses, direct marketing etc.
Notes
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Adding Value
Internal Local Office, National and International networking to help find a
buyer quicker
Website Marketing – those with iPads and laptops should log on and show it
to them live!
Show House Days – Century 21 branded Show Houses are prestigious and
look great
National Property Exhibition – offered as a benefit to sole mandate sellers only
National Property Portfolio Publication – offered as a benefit to sole mandate
sellers only
Newspaper Adverts – offered as a benefit to sole mandate sellers only
Pre- qualification of any buyers so we do not have time wasters and/or
buyers with ulterior motives (criminal activity) coming through the home -
service
Continuous feedback to the seller - service
The Century 21 brand and the agent will ensure that every single purchaser in
that price range in the period of the Sole Mandate will be introduced to their
property to ensure the quickest, cleanest possible sale for the highest possible
price
What else?
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“Trading Off” Benefits
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Educate the Seller
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Focus on Listing
Why?
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Remember
• Mandate presentations are done when an agent valuates a property
for a seller; therefore it is imperative that both spouses are present. This
means you do not have to be the first agent to value the property, but
rather be the first prepared agent to meet both spouses at the same
time.
• You will discuss the benefits of a mandate with them and the points will
be made subconsciously (not parrot fashion).
• Enforce Century 21 as their agent and NOT yourself personally.
Century 21 is larger than you and can do more than you can and you
eliminate too much personal reliance on yourself which may make the
seller uncomfortable.
• This is the stage when you need a brag file and you need to know
everything there is about Century 21, especially our referral system, our
website, our ethos, and our marketing tools that will all assist in finding a
buyer in the quickest possible time for the maximum possible price.
• Trade off by saying, “a Century 21 mandate will get you in the papers
and on the internet automatically. Without it I may not be able to
advertise your property in the papers or put it onto our website”. By
committing to do everything that we can offer without a sole
mandate, will result in the seller not seeing the purpose of a sole
mandate. Their argument will be that if they get the full spectrum of
services from Century 21 on an open listing then why commits a sole
mandate.
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• The seller must feel as if they have acquired the services of the best real
estate brand in the world for the same commission payable than a
“rats and mice” agency would charge
Notes
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The Comparative Market Analysis (CMA)
The Listing Process
Listings are vital to the growth and success of your business. There are many
advantages to building and maintaining a substantial inventory of listings. As
the prospecting efforts you have begun implementing from the past lessons
begin to generate results, you must be prepared to create and deliver a
compelling listing presentation that leads sellers to see the value of working
with you and Century 21.
To conduct a listing presentation, you must prepare and organise relevant
research data, marketing content and sales tools. These will help you
communicate the value of your services and company to the sellers. During
the presentation, you will need to address the specifics of the property itself,
the marketplace, and the goals of the sellers. To prepare for this meeting,
follow the Three Phase Listing Presentation process.
• Information Gathering
• Marketing Presentation and CMA Preparation
• Presentation
Information Gathering
The Information Gathering phase is very important, as it helps you
understand the situation you will encounter when you speak with the
sellers. Successful presentations require you to be prepared with as
much background information, accurate data and personal
knowledge so you can have a constructive conversation with the
sellers. Information gathering involves learning as much about the
sellers and their property as possible.
Learning about the sellers
In order to communicate your value to the sellers, you have to learn
their motivation and needs. You can then position your skills,
knowledge and tools so that they demonstrate solutions to the seller’s
requirements. You can only satisfy the seller’s expectations if you can
identify them at the beginning of the process.
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You need to determine the seller’s:
Expectations
Past experiences
Personal preferences and service requirements for selling
Goals
Use some of these questions to learn about the sellers. Remember to keep
asking “open questions” and listen attentively.
Motivation
• Why are they moving?
• How soon do they need to move?
• Where are they moving?
• What are their plans?
• How do they feel about the move?
Seller Background
• How long have they been in the area?
• How long have they owned the property?
• What will they do with the proceeds of the sale?
• Are they familiar with recent home prices in their area?
Seller Experience Level
• How many houses have they sold?
• How did those experiences go?
• What was the best?
• What was the worst?
• How soon do they think the house will sell?
• What price range do they have in mind?
• How did they arrive at the price?
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What are their expectations of you?
• Appropriate pricing • Showings
• Service level • Show House(s)
• Professionalism • Marketing
• Competence • Negotiation
• Communication • What else?
Write some other questions you can ask to assess the seller:
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Evaluate the Situation
After identifying the seller’s motivation and desired outcomes, and inspecting
the property, put the information together and assess the situation. You need
to determine how all of the factors come together to create a “sales
situation” that you will take into the marketplace. Consider these questions
based upon the information you have gathered. If necessary, speak with the
sellers again to clarify any missing information.
Based upon the seller’s situation what factors might increase or decrease the
opportunity to sell this property?
Based upon the property assessment, what features will increase or decrease
the property’s opportunity to sell?
What could be done to bring a higher selling price for the property?
What is the market doing that directly affects the seller’s desired outcomes or
the property’s attractiveness to potential buyers?
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Comparative Market Analysis
Positioning the property in the marketplace requires an objective assessment
of market conditions. Your Comparative Market Analysis collects this research
and organises it into a snapshot of market conditions. Market data is
compiled using key factors such as number of current listings and the recently
sold prices of similar properties. These facts help you evaluate a property and
determine a saleable price range for the seller.
All information should be as recent as possible.
Basic Guideline for selecting comparables:
• Use data from a six month “window” of activity (adjust based upon
market conditions).
• Use pictures of the comparable houses or take sellers to view
competing properties.
• Always include properties that recently expired (failed to sell) and sold
(got the job done).
What is the importance of adding:
Recently sold homes - Shows Fair Market Value
Expired Listings - Shows what didn’t work
Current Listings - Reflects what their competition will be and how competitive
the price will need to be
Fair Market Value
Fair Market Value is what a buyer would be willing to pay. It approaches the
price of the property from the buyer’s perspective, not the seller’s view. It
tends to be more objective in determining what the property is worth in the
marketplace.
Helping the sellers understand the fair market value of their property requires
accurate information about market conditions. Focus on the data, not the
emotions that are involved in selling the property. Sellers may struggle with
what the market is telling them. Your job is to help them understand the
market conditions, and then make the best decisions to get the job done
within the market that exist today.
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Identifying Comparable Properties
Selecting comparable properties is both art and science! For starters, you’ll
compare property’s on empirical data, such as square meters, room sizes,
price and condition. Of course, a property’s value is more than just its
physical attributes. It’s also about its location! As you gain experience in your
marketplace, you’ll begin to account for factors that make properties similar
other than physical features – such as neighbourhood conditions, school
districts, commute times, and other “surrounding” factors.
Present a Range of Value
No two properties are exactly alike, so your CMA will have to account for
differences in order to establish a price. The most effective way to do this is
to present the sellers with a range of comparable values based upon the
properties similar below, at and above their home’s exact features.
The range of value will also expand or contract the potential number of
buyers for a property. If the sellers select a price at the highest range of value,
the number of potential buyers will be fewer, and the time on market may be
higher. If they choose the lowest value, they may expand the number of
potential buyers, but not achieve the highest sales price.
The RIGHT List price may not be the HIGHEST price. It depends on what is important to the seller, such as time to sell, convenience, etc.
What are the benefits to the sellers by presenting a range of value?
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What are the benefits to the sellers of pricing a home appropriately?
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The Listing Process
There’s no such thing as a “second” first impression. Use these steps to be
prepared for a great meeting! Prepare and review all materials at least 24
hours in advance. Don’t wait until the last minute.
Preparing for the Presentation
• Deliver your portfolio at least 24 hours ahead.
• Review the Consultative Approach, Asking Open Questions.
• Practice converting Features to Benefits.
• Review the Comparative Market Analysis.
• Anticipate Objections and have CDDC responses.
• Review the CENTURY 21® Listing Presentation.
• Get Excited to close the deal!
Schedule presentation when all parties can be present
(No point giving a presentation with only half the decision makers present.)
Sitting at the head of the table allows the Sellers to easily view materials
together and allows you to avoid shifting your attention back and forth
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Order of Presentation
Property Inspection – This includes information that was gathered during your
initial inspection. You may also wish to confirm your Seller Assessment to be
sure you have understood their goals and desired outcomes.
Marketing Presentation- Present your marketing campaign and Portfolio.
Comparative Market Analysis – This shows the market data for current,
recently sold or recently expired listings in the area. Helps to determine
market value of the property.
Close – Get clients to confirm, through a series of carefully phrased questions,
that you are capable, confident, have the power of your company and the
CENTURY 21® brand to properly market their property.
Remember, it’s up to you to ASK FOR THEIR BUSINESS!
Sellers Service Pledge – explain what it is
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CMA Presentation
As in every process there is an effective way to present information so that it
has the most impact. When you are presenting the CMA to the seller you
should be sure to provide them the background and importance of each
category. Always start by presenting the Sold comparables because they
are Fair Market Value. They are a factual price that a ready willing and able
buyer paid for a property of similar features and characteristics. The next step
will be the Expired because these will clearly define for the seller what didn’t
work or was too high and from there you move to the current properties so
that the seller can see what they are competing with for the buyers offer.
When presenting a CMA you review the comparables in which order?
– Sold Listings
– Expired Listings
– Current Listings
You also need to:
• Educate the seller on Local Market conditions
• Identify current trends
• Educate them about Marketing the listing
What if they say No?
• “No” usually indicates you haven’t clearly answered all of their
questions
• Stop the process, and ASK QUESTIONS
– Have I missed something?
– Is there a concern you still have about the process or my
services?
– Did I not explain something fully?
• Use the CDDC process and open ended questions to continue the
discussion.
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Closing the Deal
• Be sure to confirm all expectations.
• Identify the time frame for your ”next steps”.
• Provide and get signed all necessary documents.
• Leave copies of CMS, Portfolio or other helpful documents.
• Be sure sellers have multiple ways to communicate with you.
– Cell phone, office phone, email, Facebook profile, etc.
• Set an appointment for your first meeting with your new clients; most
likely within 48 hours.
Notes
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Remember to Plan Your Day
o Visit 2 FSBO’s
o Contact 3 Expired Listings
o Preview 5 Properties
o Update listing presentation
o Send “thank you” notes
o Attend workshop – 2 hours
o Sales Meeting – 2 hours
o Meeting with principal
o Private/Family time
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Notes
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