The process for presenting a proposal in real estate sales to increase referral business

The way in which we present the offer in real estate sales has a direct result on our referral business. Let me explain.

There is a right way and a wrong way to present a proposal.

The wrong way leads to the rejection of many good proposals. The vendor is then is forced to play the waiting game. Often the listing is withdrawn, a new agent comes in and says: “Who put the price on this?” and sells the home for less than the initial proposal.

The other agent gets paid and you don’t.

The agents who have a thorough understanding of the process for presenting a proposal in real estate sales, have a better than 90% ratio of proposals accepted to proposals presented.  People love them and refer them to everyone they know.

When I was selling, I used the following process for presenting a proposal in real estate sales, and due to my popularity with vendor’s and their family and friends, I was able to build my referral business up to 22 phone-ins per month. My best selling month was 27 individual listings, all from referral business.

A NOTE ON RELATIONSHIPS

The first thing you have to do is build great relationships with your sellers as this will determine the ease you have in presenting a proposal in real estate sales.

Call your sellers at least once per week and speak with them as if they are your good friends. You need to get to know the sellers and really understand their wants and needs.

The process for presenting a proposal in real estate sales

There are four ways to present an offer:

1. Call them and tell them the figure over the phone.
2. Call the sellers and tell them about the offer and then make a time to see them in person.
3. Email it to them and wait for a response.
4. Text them the offer and wait for a reply.

The very best way is number two; call the sellers and make a time to see them in person. You must get face-to-face. The phone is for making appointments, not for selling.

When you meet with the sellers get straight to the point; sellers don’t like waffle. Then stay silent and let them tell you what they are thinking.

If they are not happy with the figure then explain to them whether you feel the buyers will pay more based on the buyers body language.

When you have explained to the buyer what would happen if the owner couldn’t afford to accept that price, their reaction will either be open or closed, and you will get an understanding of whether this proposal is their very best.

There is a common saying in the industry: “I am no messenger boy!” This is the completely wrong attitude. If your main goal is to sell more real estate, you must be the positive go-between. This will result in many referrals.

What to say when presenting a proposal in real estate sales

If the owners tell you they are not happy with the figure on the proposal, ask them what they would accept. They will usually give you a figure which is below the asking price, so you must apply the principle of asking for more.

So if there is an offer of $950,000 on an asking price of $1,000,000 and the owners tell you they will not accept anything less than $980,000, make a suggestion to countersign at $990,000.

This immediately builds trust with the seller.

You then leave the seller by saying; “I don’t want you to get your hopes up as there are four things that can happen in this situation:

1. The figure of $950,000 is their best price.
2. They withdraw their offer.
3. They come up somewhere in between.
4. They come up to $990,000.

So now is not decision time. When I come back to you with their very best price then that will be decision time, so please wait up for me and leave the light on.”

You then go and see the buyer enthusiastically and get them to their highest price. Then see the seller and usually they will accept the offer and get happily moved.

I used this all the time to help me make 11 sales per month for 12 consecutive years.

To find out more about how to create more consistency in your results and add an extra $100,000 to your income in the next 12 months click here for a complimentary one hour training session.