Offer presentations can be a challenge for new salespeople. When should the offer be presented? What if there are multiple offers? Who should attend the presentation?
Your role in the offer presentation will vary depending on whether you represent the buyer or the seller. Following are some guidelines for effective offer presentations, regardless of whom you represent.
Attending the Presentation
Follow your brokerage’s policies regarding offer presentations. If none exist, follow the rules and regulations of your local real estate board.
A rule from a typical MLS® Rules and Regulations states the following:
The co-operating brokerage shall have the right to be present when the offer is presented by the listing brokerage to the seller, and the listing brokerage shall have the right to be present when any counter-offer is presented by the co-operating brokerage to the buyer. However, this does not mean that the [board] member may be present during subsequent discussions between the other [board] member and his or her client.
The seller client has the final say – i.e., he/she decides what will or will not occur in the presentation process involving an agreement relating to his/her property.
Presenting the Offer
Present in person (unless the seller’s live out of town) – You represent the interests of your buyer clients, and you can do this much more effectively when you’re face-to-face with the sellers.
Focus on the positive aspects of the offer – If the price your buyer client is offering is less than the asking price, focus on other positive aspects of the offer, such as the closing date, no conditions, and a well-qualified buyer.
Anticipate objections – Unless your buyer client is giving the sellers everything they’ve asked for, be prepared to address the sellers’ objections. For example, if the offering price is below the asking price, have an updated comparative market analysis available that validates the offer price.
Other Important Reminders
• If there is an offer, present it at the earliest practical opportunity. This is a requirement of the REBBA 2002 Code of Ethics (Ontario Regulation 580/05).
• Your client’s interests come first. Your client makes the final decision whether to accept or reject the offer.
• Be prepared. Many negotiations fail because of inadequate or poor preparation.
• Be particularly cautious with multiple offer presentations.
We will highlight typical presentation steps in a future blog post.
For More Information
For more information on effective offer presentation, including conducting a win-win negotiation and presenting a counter offer, please consult our A Mentoring Kit for New Salespeople: Training For Success at http://www.orea.com/~/media/Files/College/MentoringKit_flyer.pdf. This is a valuable resource for both brokers and salespeople.
Do you have any other suggestions on how to make a successful offer presentation? Let us know.