Chapter 10: Writing the Offer and Closing the Sale Summary

Selling Strategies

• Knowing Your Product
  • Know everything you can about the available inventory - your and your firm’s listings and comparable properties in the MLS.
  • You also need to know information about the neighborhood, recreational opportunities, schools and community activities. 
• Communicating Information Effectively
  • Make sure you understand clearly what message you want to get across.
  • Get your facts straight and provide clear information to the prospects.
  • Use visual aids - graphs, charts, photos - to help communicate the message. 
• Establishing Rapport
  • Get to know your prospects. Ask open-ended questions, rather than closed-ended (yes or no) questions.
  • Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said.
    • Address the buyers by name and look them in the eye when speaking to them.
    • Don't be judgmental and know when to be quiet and listen.
    • Be patient and allow the buyers time to think and respond to questions.
  • Why Buyers Buy
    • A home provides shelter and security.
    • Buyers want their homes to be in safe areas that are environmentally "healthy."
    • Many buyers see a home as an investment, which provides tax advantages.
    • A home purchase is based just as much on emotion as it is on facts.
    • Picking Up on Buying Signals: Actions, Words and Body Language.
• Handling Objections
  • View objections as the buyers' attempt to gain more information about the property or a specific feature.
  • Don't discount or dismiss the objection. Give it the consideration it needs before formulating an answer.
  • Delve deeper into the objection by asking more questions.
  • Use the "yes-but" technique to turn a negative into a positive.
  • Asking for the sale (Closing the sale)

Closing Techniques

• Assumptive close - acting as if the person has already made the decision to buy.
• Alternative close - offering more than one alternative to the prospects and having them choose.
• Bonus close - inducement for the sale.
• Ownership close is similar to the assumptive close, except that you act as if they already own it and you talk about how it will fit into their lives.
• Standing-room-only close plays on the prospects' fears of losing a property that they may not have an opportunity to buy again.

Regardless of which closing technique you use, you need to ask for the sale.

Writing the Offer - California Residential Purchase Agreement and Joint Escrow Instructions.

Paragraph 2 - Finance Terms

• Obtaining financing is a contingency unless it is a cash sale or it is stated otherwise.
• Subparagraph C1 states the requirements for the new first loan, which, if not obtained, releases the buyer from the purchase.
• Subparagraph G requires the buyer to provide a loan prequalification letter to the seller within a set period of time after the offer is accepted.
• Subparagraph H requires the buyers to verify that they have the down payment and closing costs within a set period of time after the offer acceptance.

Paragraph 3 - Closing and Occupancy

• Subparagraph C says that any property that is tenant-occupied will be vacant prior to close unless otherwise agreed in writing.

Paragraph 7 - Conditions Affecting Property

• Subparagraph B requires the seller to disclose all known material facts and defects of the property.
• Subparagraph D informs the seller of the buyer's right to inspect the property, and, based on what is discovered, the buyer can either cancel the contract or request the seller make repairs or take other action.

Paragraph 9 - Buyer's Investigation of Property and Matters Affecting Property

• Buyer right to inspect the property within a specified period and makes the buyer's satisfaction with the property's condition a contingency of the sale.

Paragraph 12 - Title and Vesting

• Subparagraph C says the seller must disclose anything affecting the title that the seller knows about.

Paragraph 14 - Time Periods; Removal of Contingencies; Cancellation Rights

• Subparagraph C talks about the seller's right to cancel the agreement if the buyer doesn't meet the set time periods for removing contingencies.

Paragraph 15 - Final Verification of Condition

• Buyer has the right to do a final inspection of the property to verify that the seller has maintained the property, made any necessary repairs and complied with any other obligations.

Paragraph 16 - Liquidated Damages

• Buyer agrees to pay the seller if the buyer breaches the contract. Both buyers and sellers must initial this section for it to apply.

Paragraph 17 - Dispute Resolution

• Any disputes the parties have with a broker are subject to mediation or arbitration only if the broker agrees to such resolution.

Paragraph 28 - Joint Escrow Instructions to the Escrow Holder

• Subparagraph B states the parties will deliver the agreement to the escrow within 3 business days unless specified otherwise.
• Subparagraph D provides that the buyer or seller will provide the escrow holder with a copy of any amendments to the agreement within 2 business days after the amendment is executed.

Paragraph 30 - Terms and Conditions of Offer

• States that if a buyer defaults after acceptance, the buyer may be responsible for the broker's commission.

Paragraph 31 - Expiration of Offer

• This paragraph states that the offer will terminate if not accepted by the time and date specified in this paragraph. The buyers sign and date the offer here.

Paragraph 32 - Broker Compensation from Seller

• Here the seller agrees to pay the broker at the close of escrow the compensation set forth in the listing agreement.

Paragraph 33 - Acceptance of Offer

• The seller warrants that he or she has the authority to sell the property, agrees to the confirmation of agency relationships and authorizes the broker to deliver the signed contract to the buyer to make the offer a valid contract.