Part 1

Proper Contract Preparation

One of the benefits a Champion Agent provides his clients is security. They provide security in many forms, but certainly proper contract preparation is essential for security to be achieved for the client.

By understanding your client's timing, financial position, inspection needs, personal property desires, repair requirements, and a host of other factors, you are better able to express your client's intentions and protect their interests.

Too frequently, I have seen poorly constructed executed agreements that leave clients vulnerable to broad interpretation of ambiguous language.

Educating your prospect on your value in this area creates an understanding that there is risk if they don't use your services. There is risk through a poorly constructed agreement: legal risk before and after the transaction, financial risk of undiscovered issues that affect value and appreciation, emotional risk of sleepless nights and general emotional distress.

You might use a script like this to point out the difference between you and other agents:

"Bob and Mary, how an agreement is constructed determines the outcome of a transaction. For most people, this home purchase represents their largest investment, their biggest purchase in their life, their longest obligation of debt – so how all these issues mesh in a purchase and sale agreement can affect you for years into the future.

You have my guarantee that I will balance all these issues and craft a purchase and sale agreement that reflects your true intentions, as well as protects you from the pitfalls of a real estate transaction."

Presenting Your Offer Favorably to The Seller

While most of the real estate world has gone to faxing offers to the selling agent, there are times when presenting an offer face-to-face is advisable. At a minimum, a Champion Agent presents the case that their buyer is the best buyer available in the marketplace. In heavy competition for a high demand home, a Champion Agent would get their client to write a letter to the seller, maybe including pictures of the family. Get strong loan commitment from the lender. A Champion Agent would do everything in their power to swing the pendulum in their client's favor.

"The skill of presenting you favorably to the seller and other agents can mean the difference between you owning the home or another buyer owning the home. We need to be the seller's best buyer to be selected.

Presenting yourself favorably also can set the tone as we negotiate the final terms and conditions of the purchase and sale agreement. The stronger we position you through financial capacity, human connection, and buyer commitment, the more the negotiating process can swing in our favor."

Professional negotiating as your agent - Too often, buyers view negotiation as you grinding on the seller. They often have the "I win, you lose" mentality. That mentality is more pronounced when the market has shifted to a more neutral or even a buyer's market position. I would caution you to evaluate your need and desire to work with a client of that nature. If they have that kind of an attitude toward the seller, they will probably have that same attitude or desire toward you, as well.

Their first thought or inclination on negotiation is price related; that a good negotiator will get them the home cheaper. That is not necessarily true in all cases. The market has influence on the buyer's ability to negotiate. The motivation of the seller also influences the negotiation. The demand level of the property will also influence negotiation. Being able to convey all these factors to the buyer is critical.

"Negotiating can take many hours. The marketplace, quality of the property, price of the property, demand of the property, and motivation of the seller all are factors in negotiation. They all influence the negotiating process in each transaction. I will evaluate each of these factors, and we will discuss them at the time we decide to make an offer. These are fixed when based on the marketplace, and the quality and price of the property take primary position. Other times, negotiating the terms (meaning price, possession, and seller repairs) is more important than other parts of the agreement.

You can be assured that, when we work together through negotiation, we will evaluate and execute on all of these areas. Do you see how there are more factors than just the price?"

See Part II: The Buyer Interview - Additional Value of Your Services Part II

Published: February 24, 2012

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Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more regarding this article, please visit www.realestatechampions.com.