If you have been talking to a prospect for quite some time looking to get a listing on their property and the owner tells you they have a SERIOUS buyer-in-hand how do you respond?
What is your value add proposition so that you can contribute and be a part of the deal?
I wish you'd put all of your broker questions in one thread
Perfect storm here: 1) wants to know what market / product is the most lucrative with no other variable in mind and 2) thinking how to weasel into a deal that he's done nothing to facilitate.
Makes me cringe.
Not exactly. There is actually quite a lengthy backstory here that I won't bore you with.
With regard to "weaseling into a deal", that's not my aim. Notice that I said that I'd like to "contribute."Easy bucks can't be made in this business. You've got to put the work in.
Carveout the buyer in your exclusive contract. Include a stipulation that if the buyer improves on his bid then you get a fee, or a discounted fee. Something to that nature.
This is the right answer +1. Btw you can do this with debt brokers too.
Having a serious buyer in hand doesn't mean jack shit unless they're offering a good price and terms. If I haven't facilitated the transaction and I'm competing against a direct buyer off-market, then I use that as part of my pitch "It's off-market. You're leaving money on the table by not bidding up the price. I can get you a better offer as long as you agree to protect my commission if it transacts." I then go procure them an offer from one of my best buyers, and see how it stacks up. Keep in mind, the owner is going to shop your offer to the guy that is direct. There is nothing you can do about that other than hope the number is too rich for them. If it's a higher offer, I'll also use that as an opportunity to show them that this is just one offer from my deep database of relationships. And that this price can be bid up if we go to market.
I have a client now that received a verbal offer off-market from a good group. However, they wanted me to BOV their property to see what it was worth. I gave them a price range. In return the owner wanted me to represent them at a reduced fee with the direct buyer to bid up the pricing, and if negotiations failed, then I got the exclusive listing. I was able to bring up the direct buyer significantly on price, because I knew the property's true value and showed my client they were inintially getting low balled.
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