Exclusive Mandate in Real Estate

RE/MAX Mumbai – Gujarat – Maharashtra

THE EXCLUSIVE MANDATE

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.


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??


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


ADVANTAGES FOR THE BROKER


Guaranteed Commission

No Wastage of Time

No Unnecessary Sharing of Commission


ADVANTAGES FOR THE SELLER


Internet, classified ads, fliers, house tours, etc. Your agent will know that he can invest safely in

your Property

MORE ADVERTISING FOR THE SELLER


Your agent knows more agents than you do

GETS MORE AGENTS TO WORK FOR THE SELLER


Your agent will insist that you wait for higher offers, within reason

HIGHER PRICE FOR THE SELLER


Your agent will feel safe investing his time in your Property

SELLER IS BETTER INFORMED


Explain clause for possible termination if the service provided is not what was agreed

SELLER GETS BETTER SERVICE


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


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


SECOND STEP – THE MEETING

Who is the actual customer ? D : Decision maker

R : Recommender

I : Influencer


CHECKLIST PRE-MEETING

1) Documents for personal promotion2) Market analysis report3) Thorough knowledge of property4) Marketing Plan5) Agreement copies


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.


SELLER’S MIND

Can I trust you? Do you care about me?Are you good at what

you do?


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.


SHOW YOUR CREDENTIALS

RESUME

CLIENT TESTIMONIALS REFERENCES


THIRD STEP : SERVICES PROVIDED COMPARATIVE MARKET ANALYSIS

FINANCING PROPOSALS

MARKET PREPARATION GUIDE

HOMEOWNER’S ANALYSIS

RELOCATION PACKAGE


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.


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.


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.


HOMEOWNER’S ANALYSIS

A simple and easy to understand form that illustrates the tax advantages and the investment potential of home ownership.


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.


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 ..


FOURTH STEP – MARKETING PLAN


SELL FROM YOUR HEART, NOT FROM YOUR BRAIN


“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


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


• 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


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


FIFTH STEP - PRICING


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


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


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


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


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


SIXTH STEP-NEGOTIATING


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


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


SEVENTH STEP- CLOSING


loseC90% Conviction and 10 % communication

RE/MAX Mumbai – Gujarat – Maharashtra

CLOSING REBUTTALS TO GET AN EXCLUSIVE MANDATE


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


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


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


READY TO SIGN ON THE DOTTED LINE?????

………………………..


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.


THANK YOU!

Exclusive Mandate in Real Estate

Real Estate

property seller

property listing

customers property

benchmarking property

thorough knowledge of

personal promotion

marketing plan

wastage of time