Have you ever put a property under contract and were sure you had the deal? But then it unraveled right before your eyes and was gone?
I know that disappointment well.
When I first started out with Keller Williams five years ago, I was a solo agent closing one transaction a month and had approximately $5 million in sales volume. Living in Southern California, this wasn’t very impressive, especially considering how hard I was working to close more deals.
Once I figured out how to bulletproof transactions using techniques from The Millionaire Real Estate Agent, my business grew tenfold in five years.
Anticipate a problem. Come with a solution.
After reading the MREA, I realized my transactions were falling apart because I simply hadn’t mastered them yet. If I wanted to see them through to the finish line, I would have to have an intimate understanding of how they worked and where they could go wrong. So, I immersed myself in classes like Business Planning Clinic and Career Visioning , role-played, and practiced scripts religiously. Once I became skilled at navigating transactions, I was able to acknowledge warning signs, anticipate problems before they surfaced, and come to the table with solutions.
Here are two common problem areas and techniques I use to keep the deal intact.
Sellers can express concern when offers start rolling in, especially if they are fast and numerous. When I hear, “We listed too low,” or “There were too many offers too fast,” I interject right away to ease concerns. But, to really bulletproof the transaction, I walk my clients through the scenario and get on the same page before the offer is made in regards to valuation
Mr./Mrs. Buyer or Mr./Mrs. Seller, there’s a chance the appraised value won’t come in at the exact listing price of $500,000. What happens if it appraises for $450,000. Either the seller can keep the selling price as is and the buyer makes up the difference or walks away, or the seller reduces the price and takes a price reduction. I prefer a third solution. In this case, I’d suggest both parties meet in the middle and agree to a new purchase price of $475,000. That way, everyone wins.
Buyers will most likely start to express real concerns during home inspections when repairs are too extensive and/or costly. Whether I am working with buyers or sellers, I sit my clients down and walk them through what to expect at each stage of the transaction. I tell them what we are looking for in an inspection; repairs that buyers can budget for down the road and safety concerns which must be repaired by the seller prior to closing, or a credit towards the buyer to allow for repairs.
Bulletproofing the transaction is about mastering it with confidence and having solutions ready. Confidence is key! If you go into a listing presentation or buyer consultation and don’t believe you can handle it, your client won’t either. When we entrust others with important decisions, we must believe in them and, more importantly, they must believe in themselves. This is what your clients are expecting of you.
Past the practice and study, what really expedited my success was remaining coachable and plugging into available resources. If you want to fast-track your success, don’t try to grow alone. Trust me. I’ve tried and failed. No matter how ambitious you are, you will never be able to hit your potential with your skills alone.
When a deal starts heading south, turn to allies such as your broker, attorney, team leader, or fellow agents for help. I’ve learned that no matter how successful others may be, they will still help you. Keller Williams has created a culture of contribution where everyone is committed to helping you succeed.
For a deeper dive into bulletproofing transactions, watch Sed’s latest presentation on KWConnect.
Bulletproofing your transaction is about keeping your transaction together in the critical time between signing the sales contract and signing the documents at the closing table. This course uncovers a set of six specific issues and solutions for successfully managing the contract-to-close phase of a transaction.
About Fred Sed
Fred Sed is the owner of the Fred Sed Group at Keller Williams, headquartered in Irvine, California, with a second location in Northridge and a third coming soon. Since joining Keller Williams in 2013, the Fred Sed Group has experienced tremendous growth, moving from 12 transactions totaling $5.5 million to over 100 transactions totaling $42 million. The third-generation REALTOR® attributes his success to the comprehensive models and systems offered by Keller Williams and is passionate about helping other agents succeed.