exclusive mandate in real estate
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RE/MAX Mumbai – Gujarat – Maharashtra
THE EXCLUSIVE MANDATE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
WHAT IS A MANDATE??
Written authorization and/or command by a person, group, or organization (the 'mandator') to another (the 'mandatary') to take a certain course of action.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
A situation where both the agent and his office are contractually bound to do their very best to market a customer’s property within the period
of time laid out in the Exclusive Mandate.
WHAT IS A EXCLUSIVE MANDATE??
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
WHY GO FOR EXCLUSIVE MANDATES
Exclusive Mandate
Open Mandate
Annual Income Goal Average value of property Commission value on property (2%)
Total no. of transactions needed Number of leads Number of appointments Number of mandate conversion
Number of property viewings Number of property negotiation
Number of transaction
24,00,000 24,00,000
100,00,000 100,00,000
2,00,000 2,00,000
12 12
100 100
20 50
1 0
10 50
5 25
1 0
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
ADVANTAGES FOR THE BROKER
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Guaranteed Commission
No Wastage of Time
No Unnecessary Sharing of Commission
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
ADVANTAGES FOR THE SELLER
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Internet, classified ads, fliers, house tours, etc. Your agent will know that he can invest safely in
your Property
MORE ADVERTISING FOR THE SELLER
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Your agent knows more agents than you do
GETS MORE AGENTS TO WORK FOR THE SELLER
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Your agent will insist that you wait for higher offers, within reason
HIGHER PRICE FOR THE SELLER
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Your agent will feel safe investing his time in your Property
SELLER IS BETTER INFORMED
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Explain clause for possible termination if the service provided is not what was agreed
SELLER GETS BETTER SERVICE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
1) Call & Fix an appointment2) Meet & gain confidence through Personal Promotion3) Discuss Services Provided 4) Marketing Plan5) Benchmarking Property Price6) Commission and Terms Negotiation 7) Closing
7 STEPS TO EXCLUSIVE MANDATE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Source the Property listing Call the owner Give a brief introduction Talk a little about their Property listing Fix an appointment
FIRST STEP - THE CALL
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SECOND STEP – THE MEETING
Who is the actual customer ? D : Decision maker
R : Recommender
I : Influencer
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
CHECKLIST PRE-MEETING
1) Documents for personal promotion2) Market analysis report3) Thorough knowledge of property4) Marketing Plan5) Agreement copies
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
EXPLAIN THE OBJECTIVE OF THE MEETING
We Have A Mutual Objective…To Sell Your Property…
At the highest possible price In the shortest amount of time With the most favorable terms
We will be working together as a team to get your Property sold.
Cooperation and communication will benefit the successful
completion of the objective.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SELLER’S MIND
Can I trust you? Do you care about me?Are you good at what
you do?
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
BUILD TRUST BY Thoroughly inspect the property.
Listen carefully to understand client’s objectives.
Explain the Home Selling and Marketing Process – Client’s responsibility vs. your responsibility.
Help Client price his property.
Advise Client on how to show his property effectively – STAGING.
Review what happens from time of Contract through to Closure.
Ask for Client’s commitments to begin marketing his property.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SHOW YOUR CREDENTIALS
RESUME
CLIENT TESTIMONIALS REFERENCES
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
THIRD STEP : SERVICES PROVIDED COMPARATIVE MARKET ANALYSIS
FINANCING PROPOSALS
MARKET PREPARATION GUIDE
HOMEOWNER’S ANALYSIS
RELOCATION PACKAGE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
COMPARATIVE MARKET ANALYSIS
A written report of the transactions in the area, identifying similar properties that have sold recently or which are currently on the market, in an effort to determine a realistic price for the subject property.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
FINANCING PROPOSALS
Written proposals and negotiations with the banks and buyers to get the maximum rate for your property. All information that will help buyers and sellers in the decision making process.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
MARKET PREPARATION GUIDE
A report designed to help the homeowner maximize the marketing efforts by improving the condition of the home, “setting the stage” before showings, and knowing what to do when the property is being shown.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
HOMEOWNER’S ANALYSIS
A simple and easy to understand form that illustrates the tax advantages and the investment potential of home ownership.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
RELOCATION PACKAGE
A complete portfolio of information about the city to which you are moving. This can be very helpful in orienting you to the local housing market, as well as schools, shopping, transportation, entertainment, and many other points of interest.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
We will tell you what to do to get your home in sale
condition. We will enter your home on the NARINDIA.COM, 99
ACRES, MAGICBRICKS, REALTOR.COM, GLOBAL.REMAX.COM, ETC. websites through the Internet.
We will promptly advise you of changes in the market climate.
We will coordinate and monitor the settlement process. We will monitor the appraisal and buyer’s loan
approval. We will be present at closing to assure a successful
conclusion. We will present all offers to you promptly and assist in
evaluating them.
OTHER SERVICES YOU RECEIVE ..
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
FOURTH STEP – MARKETING PLAN
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SELL FROM YOUR HEART, NOT FROM YOUR BRAIN
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
“Advertising does not sell homes – Real Estate Professionals sell homes”
There are many ways of merchandising your home.Some houses will draw more calls, so they may be shown more often. This is just like the retailer who has specials to get customers into his store so that they will look at the rest of the merchandise. The right methods need to be identified.
OPENING PITCH
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Put a sign in the yard Put an ad in the paper Put it in the MLS Pray that it will sell
THE 4 P’S OF MARKETING
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
• Perform a comprehensive Comparative Market Analysis
• Prepare Just Listed Post Cards
• Prepare an Information Flyer including facts and photographs
• Provide price results from Tour Appraisal of Sales Associates
• Add to newsletter
• Write and place classified advertising in various newspapers
• SMS and Email campaign to your entire database
MARKETING ACTIVITIES
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
MARKETING ACTIVITIES Flyer to market listing in Commercial Hubs, Market Places, Malls
Market to other agents in the area
Prepare a home feature survey and send it out to prospective home
buyers database
Follow-up with you at least every two weeks with a report on
showings
Re-evaluate marketing plan and Reduce price, as necessary, to stay
competitive
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
FIFTH STEP - PRICING
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
How do you sell your home for the
Best Price, in the Shortest Time, with the Most Favorable Terms and Conditions?
By Pricing it right, Initially!!!!!
Fair Market Value
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Major Factors Affecting Value
© Price © Conditions© Supply and Demand © Political Actions© Seasonal Markets © Location, Location, Location© Interest Rate
Methods of Evaluation
© Market Value Approach (comparable property sales)© Income Approach (investment or income producing properties)© Cost Approach (most useful on new properties when replacement values are readily determinable)
FAIR MARKET VALUE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
We’ll do it right!
My Comparative Market Analysis will consider the
factors above and lead us to listing your property right…
from the beginning.
DETERMINING THE VALUE OF YOUR HOME
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
1. Content: current statistics & data • Use your understanding of market • Give data on past transactions • Give data on LP, SP, Days on Market
2. Form: questions, metaphors, 3rd party stories• Give examples of other people having done
similar transactions
AGREEING TO A PROPERTY PRICE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Step 1: Pause (slow down for thinking, decision time)Step 2: Acknowledge (recognize, respect their opinion)Step 3: Isolate (identify, focus on crux of problem)Steps 4 : Probe (for whys & underlying reasons for
objections)Step 5: Answer (address with facts, data as a partner)Step 6: Close again (Ask for a decision…if none, repeat the
process) (Concede is not a step!)
HELPING THE SELLER DECIDE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SIXTH STEP-NEGOTIATING
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
1) Commission percentage• Commission percentage reduction in comparison with price reduction
• Do you think a good agent with good services will reduce his fees to
half if he is a good negotiator and is committed to provide you good
services ?
THINGS THAT HAVE TO BE NEGOTIATED
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
2) Mandate period
• Importance of the first 30 days
• Maximum impact if priced correctly
• Maximum advertising
• Closing possible only within 60 days at least
• Do not fall in trap of lesser period
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
SEVENTH STEP- CLOSING
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
loseC90% Conviction and 10 % communication
RE/MAX Mumbai – Gujarat – Maharashtra
CLOSING REBUTTALS TO GET AN EXCLUSIVE MANDATE
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Objection: Would you be willing to pay for the classifieds, the sign, the Internet advertising, the petrol cost, and the
time of several people in our office?…
Response: We do invest a lot of money and time into every listing, and the corporate policies do not allow us to invest all of this if we do not have an exclusive listing agreement.
CLOSING NO. 1
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Objection: “ABC Realty will take my listing without an exclusive agreement”.
Response: “They probably need more listings badly; what we want is satisfied
clients”.
CLOSING NO. 2
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
Objection: What if you fail to deliver the commitments ?
Response: Actually, you shouldn’t worry much about this, as our listing agreement
indicates that you can terminate the agreement if we fail to deliver what we
promised.Is there any other reason why you couldn’t
sign the agreement?
CLOSING NO. 3
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
READY TO SIGN ON THE DOTTED LINE?????
………………………..
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
NO EXCUSESGreat Sales People do not give excuses, they accept 100% responsibility for their success or failure.
If they don’t achieve their Target, they don’t revise them, they simply revise their activities.
REFLECTIONS OF GREATNESSRE/MAX Mumbai – Gujarat – Maharashtra
THANK YOU!