Pembroke Pines, FL

Keller Williams agents in Pembroke Pines understand positive vs negative negotiation How many times have you submitted an offer to a listing agent and the price, and closing date are acceptable to the seller, but the agent has narrowed your inspection period to 5 days and your financing period to 10, not to mention inserted a " AS IS " addenda on a house that is brand new and flawless. This phenomenon among agents has become popular over the last 7-9 years.

In the early 90's when I was in commercial real estate I had an excellent and probably one of the more talented and better known commercial experts in South Florida, Frank Arata Jr. as a mentor. Frank always told me, and it made sense to me then, and still does now "Don't negotiate what doesn't strengthen your position in the deal and move you forward." General George Patton believed that a battle should not be fought if you could not capture some ground. When I look back, Realtors, only on rare occasion made change to these clauses, but then again that was when Realtors understood the goal was to sell and close the deal. Remember the legal minds that put these contracts together with all the default dates have many years of experience and collective input into the purchase and sale agreement we use. So let's look at these areas commonly changed by some less informed practitioners and how they actually begin to negotiate against themselves and their unfortunate customers and clients who hire them.

Financing Clause: Since this is almost always on the first page of the contract, this is usually where the listing agent begins butchering a good offer, or maybe even the buyer's agent is trying to impress someone with their knowledge of contracts reduces the financing commitment period from the normal 30 days to 10-15 days on a 45 to 60 day closing. When the listing agent has made this change what happens? The selling agent says to the buyer no big deal; just sign it, we'll get an extension. Three days before the commitment is required the listing agent begins to pull their hair out and jump up and down as though they were on a pogo stick, they then attack the selling agent like some crazed person in need of an exorcism and attempts to pass on their demons to the selling agent, they beg for an extension on the financing commitment (you can spot these Realtors they are the one's without hair and sweaty palms and blood shot eyes) no they don't terminate the contract, because they don't want to lose the deal, and were only puffing out their chests to begin with, they should not have changed what wiser and more sane people put as a default date, and you know what, they'd have more hair and live longer to boot. Be smart, make your life easy, keep your blood pressure low and enjoy the business and leave the default time periods alone. Trust me the attorneys who wrote it really do have a little more brains than we like to give them credit for.

Inspection Period: Guys give me a break, 10 days is a very reasonable time for inspections to be completed and for the life of me I cannot see what Realtors think they gain by changing this date. Look guys there are exceptions to everything, but before you just begin changing an otherwise perfectly acceptable contract, make sure it really does better your position in the negotiation

Limitations on the Inspection: This one is really crazy on a perfectly immaculate and flawless house the listing agent will lower the limit from the 1.5% to 0 or 1. Why? By the sellers admission there is nothing wrong. On a $400K purchase 1.5% = $6K by you lowering it to 1% it now = 4K when there is not even $500.00 dollars in defect, you are negotiating against yourself. It's simple if it isn't broke you don't to negotiate it.

We're supposed to be expert negotiators, let's begin by understanding the contracts, and making sure that the ball is going in the right direction so we don't score against our own team.

Keller Williams agents price homes right in Pembroke Pines I am a firm believer in pricing the listing right the first time I preach this to all the agents I coach at Keller Williams Pembroke Pines market center. T will get the seller a higher price and also get you closed faster so you can move on and get those JUST SOLD in 5-10 days card out in the mail, a win- win for all. I presume you are using Just Listed and Just Sold cards, they make you look like a star listing agent and get your phone ringing.

When ever I have a seller trying to over price which is more often than not, I frequently use The Charles Kimble story. I got this story from a friend of mine, Frank Arata Jr., Frank at that time was the President of Keyes Asset Management back in the 90's who had recently attended a seminar given by the highly regarded economic consultant, Charles Kimble and I have probably used it on 80% of all my listing appointments since then. I have tested the theory many times and it is totally true.

Twice in recent weeks I overheard an agent negotiating an offer over the phone on a listing of his, the offer came in 21% below list price, seller was at $275,000 buyer came in at $218,000 I told the agent it probably comped out in the low $250's which he confirmed but was unable to bring the seller to reality. The seller not being able to accept this reality from his agent decides to engage an appraiser, which when appraised came in at $251,000 right on the money using the Kimble technique. The second situation involved my daughter in law Kristy who was on the phone helping another agent when I happen to overhear the conversation regarding an offer. I got the numbers from Kristy picked up a calculator, list price $469,000 offer 402,000 15% apart I said to Kristy that the house was probably only worth $435, 000, (buyer to come up 7.5% and seller to come down equally) which the agent overheard, as they were on speakerphone she wanted to know how I knew that when I did not even know what property she was talking about, I replied, experience. She told me her comps were at that very number and that was her suggested list price to the seller. ( This is NOT splitting the difference)

Here it is. Buyers have a pretty good idea of property values, after all they have been looking at FSBO, every builder, and been going to open houses and are on their 5th Realtor . They know values even if they low ball their first offer. Charles Kimble says if you list your home 10% above true value your offers will come in 10% below true value, buyer thinks seller is joking so buyer plays with them seller lists 5% above buyer offers 5% below and so on . Most deals are made only when the seller is in 1% to 3% of real value, and if buyer comes in 2 % below because seller is 2% above one counter usually moves buyer to market value. The problem lies when the seller is unrealistic making the negotiating process tedious and frustrating for all, seller due to frustration almost always settles for a lot less than he could have gotten had he just been realistic in the first place.

When I illustrate this on paper by drawing a straight line across the page, and calling it ground zero, I then do list price 10% above buyer 10% below 5% above 5% below and illustrate how the offer and counter offer may play out with seller settling for a price below ground zero, practice and put in your toolbox and you will be sure to use it.

Top Keller Williams Agents Go on the Offensive in Pembroke Pines Ever wonder why some succeed and others struggle? It is simple one group prepares for success through vision and planning. Vision and plan work together, neither can work without the other. The vision is where you want to go and what you want to achieve and the plan is how you are going to get there.

I meet and talk with many of our agents in our Keller Williams office in Pembroke Pines, the common denominator for their success is simple, first it's their vision, or as it is known here at Keller Williams the Big Why, then having a plan and working it.

They plant the seeds and fertilize their past customers, spheres of influence and there neighborhoods. Robert Lewis Stevenson said "the success of my day is determined by the seeds I sow, not the harvest I reap." When times are tough this group continues the offensive, they are on the attack working their systems. Remember Super Bowl XLII? What if when the New York Giants were behind in the remaining seconds of the game they had gone into defensive posture so the New England Patriots could not score again, they would have lost the game, that is what many of us do, we do not take action, we cut back on what keeps our phones ringing. We tend to play so we don't lose when we should be playing to win.

As Realtors® we must always be on the offensive looking for the next prospect to score the touchdown with. As so many top producers know we are in the LEAD GENERATING BUSINESS and only through those activities do we get the opportunity to list and sell homes.

Whats your Plan?