San Francisco Real Estate: “The Scoop”

1. Price

Most often the client is high in price 

Because they don’t trust brokers, or they don’t know, or they’ve been given bad info

• You know our compensation is directly tied to what we get you
• Use the price sensitivity grid
• We are just a guide
• Leave a little room to negotiate
• Overpriced becomes over shopped

     Sometimes you can lose a deal by going in too high

• They say you are trying to buy the Listing

2. Fee

• Make it the last thing
• Ask yourself , When does the fee negotiation really begin, are you worth it, what are they really expecting
• At some level the fee objection means you haven’t laid the groundwork,” don’t judge me by the first offer I bring you”,  your value, legal buffer, access to up legs
• How much are we talking about here, 1%, 3% at most.
• You get what you pay for
• This is the money I feed my family with

• If you look at all the other deals out there in this price range you will see that this fee is in line. In SF we use the MLS
• You know it’s not just us that you are compensating, the other brokers and their companies. For better or worse there are some agents who, with a choice of deals and fees…..
• You know, we discounted this coming in
• I’ve never lost a deal over a fee
• Isn’t it the net dollars that is most important to you
• The broker who would do this for 3% is not going to net you more……..
• Mr. Jones you should look at the fee is an investment in your equity, rather than an expense to minimize.
• We’ve done so much business together, how about a discount on this. Or There’s a lot more deals where this came from, you may not make much on this one.

Answer;

- There’s three reasons we’ve done so much business together. I’ve brought you great values and gotten you retail for your deals at a discounted price already. To at least be making this amount is very important to me.

- This is the money I eat with

- It’s not just me, it’s the Buyer’s agent we are trying to attract. Losing that one broker with a starker client wouldn’t be worth saving ½% would it?

3. Term
4. Exclusions

·        Establish our value in making them perform·        Retreat to limiting the duration and cost of an exclusion

5. Referral fees
6. No Exclusive-  This Objection will usually come up before the second but if not begin by finding out why.

·        “Has that worked for you?”·        “ All I ask is the chance to make a presentation to you and present my case as to why that may not be in your best interest·        You know Mr. Seller , even if you don’t use me, an exclusive Listing is the absolute way to maximize value·        You’ll never know what somebody would have paid…. 

           If possible get this on the table in the first, once you have conviction you can tell someone that “even if you don’t choose me, having an exclusive representative is the way to:1.      the highest price ,2.       best protection and agent partnership 3.      and perhaps most important,  the highest probability of finding the best up leg by