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Wednesday, October 13, 2010

Have You Ever...

Have you ever found yourself being blamed by a buyer for not getting them the house because their offer was too low? Oh boy! I know it's easier said than done, but try not to be too hard on your buyer, when people are devastated, it is human nature to look for someone to blame. Let's all agree that whether we recommended an offer price or not, they will blame us in most cases for not giving them the right number. They think we have the right number, they think that is what we do and shame on us for allowing them to continue to believe it.

So, you've spent countless hours, gas, and resources your still paying for; completely and thoroughly did your job to the best of your ability, and in the end: Your fired!

I would like to suggest to you a sure-fire way to put your customer in the best position to get the house, not blame you if they don't, and guarantee that they will work with you no matter how many they "lose".

Coach your buyers. Coach them to understand that properties are selling for more than asking price, show them the comps to prove it. Inform them to the best of your ability about the current climate surrounding that property; are there other offers, and how they should position their offer based on their particular financing, so that if there are other offers with more appealing financing you are factoring that in. Third, and most importantly, coach them to make their "no regrets" offer. In other words, ask what they buyers are willing to pay for the property, how much is it really worth to them. When the give you that number, you need to test them to be sure it is their "no regrets" offer. The conversation will go something like this: "So John, what I hear to telling me is that $90,000 is what this home is worth to you? Ok, just to be sure, let's fast forward: we've heard back from the listing office on this property and your offer of $90,000 was beat out by another buyer who offered $91,000. Do you regret not having offered more?" If the answer is no, then that was their no regrets offer. If they hesitate, they thought it was - but it wasn't. It's important to have them feel that loss for a minute because until they do, they really don't know where their line is. You see they absolutely cannot logically blame you because they alone were responsible for making their "no regrets" offer. Now, you will have those buyers who want to be lead, but don't cave. Don't give them a number you can't deliver or you have ruined the relationship. Here's what you say when someone will not make the commitment themselves. "John, I understand that you are struggling with this, but you must understand that, to me, this house has no value because I'm not going to be living in it. My job is to help you realize what you want and coach you to get whatever that is. It's impossible for me to know what your "no regrets" offer is. So let me lead you through this exercise that will help reveal it." At this point you take them through the number game: "you've offered $90,000 and we've just found that someone beat us by $1,000. How do you feel?" We cycle through this until the customer says: "you know, I really wouldn't care if somebody wanted to pay $95,000 for it, I'd let them have it!" You've discovered their no regrets offer and if it isn't accepted the customer is much more likely to feel that it wasn't meant to be. Happy homemaking!

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