Exclusive Mandate in Real Estate

RE/MAX Mumbai – Gujarat – Maharashtra
THE EXCLUSIVE MANDATE

REFLECTIONS OF GREATNESS

WHAT IS A MANDATE??
Written authorization and/or command by
a person, group, or organization (the
'mandator') to another (the 'mandatary')
to take a certain course of action.

A situation where both the agent and his office
are contractually bound to do their very best to
market a customer’s property within the period
of time laid out in the Exclusive Mandate.
WHAT IS A EXCLUSIVE MANDATE??

WHY GO FOR EXCLUSIVE MANDATES
Exclusive
Mandate
Open
Mandate
Annual Income Goal
Average value of property
Commission value on property (2%)
Total no. of transactions needed
Number of leads
Number of appointments
Number of mandate conversion
Number of property viewings
Number of property negotiation
Number of transaction
24,00,000 24,00,000
100,00,000 100,00,000
2,00,000 2,00,000
12 12
100 100
20 50
1 0
10 50
5 25
1 0

ADVANTAGES FOR THE BROKER

Guaranteed Commission
No Wastage of Time
No Unnecessary Sharing of Commission

ADVANTAGES FOR THE SELLER

Internet, classified ads, fliers,
house tours, etc. Your agent will
know that he can invest safely in
your Property
MORE ADVERTISING FOR THE SELLER

Your agent knows more agents than
you do
GETS MORE AGENTS TO WORK FOR THE SELLER

Your agent will insist that you wait for higher
offers, within reason
HIGHER PRICE FOR THE SELLER

Your agent will feel safe investing his
time in your Property
SELLER IS BETTER INFORMED

Explain clause for possible termination if the
service provided is not what was agreed
SELLER GETS BETTER SERVICE

1) Call & Fix an appointment
2) Meet & gain confidence through Personal Promotion
3) Discuss Services Provided
4) Marketing Plan
5) Benchmarking Property Price
6) Commission and Terms Negotiation
7) Closing
7 STEPS TO EXCLUSIVE MANDATE

 Source the Property listing
 Call the owner
 Give a brief introduction
 Talk a little about their Property listing
 Fix an appointment
FIRST STEP - THE CALL

SECOND STEP – THE MEETING
Who is the actual customer ?
D : Decision maker
R : Recommender
I : Influencer

CHECKLIST PRE-MEETING
1) Documents for personal promotion
2) Market analysis report
3) Thorough knowledge of property
4) Marketing Plan
5) Agreement copies

EXPLAIN THE OBJECTIVE OF THE MEETING
 We Have A Mutual Objective…To Sell Your
Property…
 At the highest possible price
 In the shortest amount of time
 With the most favorable terms
 We will be working together as a team to get your Property sold.
 Cooperation and communication will benefit the successful
 completion of the objective.

SELLER’S MIND
Can I trust you?
Do you care about me?
Are you good at what you
do?

BUILD TRUST BY
 Thoroughly inspect the property.
 Listen carefully to understand client’s objectives.
 Explain the Home Selling and Marketing Process –
Client’s responsibility vs. your responsibility.
 Help Client price his property.
 Advise Client on how to show his property
effectively – STAGING.
 Review what happens from time of Contract through
to Closure.
 Ask for Client’s commitments to begin marketing his
property.

SHOW YOUR CREDENTIALS
 RESUME
 CLIENT TESTIMONIALS
 REFERENCES

THIRD STEP : SERVICES PROVIDED
 COMPARATIVE MARKET ANALYSIS
 FINANCING PROPOSALS
 MARKET PREPARATION GUIDE
 HOMEOWNER’S ANALYSIS
 RELOCATION PACKAGE

COMPARATIVE MARKET ANALYSIS
A written report of the transactions in the area,
identifying similar properties that have sold
recently or which are currently on the market, in an
effort to determine a realistic price for the subject
property.

FINANCING PROPOSALS
Written proposals and negotiations with the banks and
buyers to get the maximum rate for your property. All
information that will help buyers and sellers in the
decision making process.

MARKET PREPARATION GUIDE
A report designed to help the homeowner maximize
the marketing efforts by improving the condition of the
home, “setting the stage” before showings, and
knowing what to do when the property is being shown.

HOMEOWNER’S ANALYSIS
A simple and easy to understand form that illustrates
the tax advantages and the investment potential of
home ownership.

RELOCATION PACKAGE
A complete portfolio of information about the city to
which you are moving. This can be very helpful in
orienting you to the local housing market, as well as
schools, shopping, transportation, entertainment, and
many other points of interest.

We will tell you what to do to get your home in sale condition.
We will enter your home on the NARINDIA.COM, 99 ACRES,
MAGICBRICKS, REALTOR.COM, GLOBAL.REMAX.COM, ETC.
websites through the Internet.
We will promptly advise you of changes in the market climate.
We will coordinate and monitor the settlement process.
We will monitor the appraisal and buyer’s loan approval.
We will be present at closing to assure a successful conclusion.
We will present all offers to you promptly and assist in evaluating
them.
OTHER SERVICES YOU RECEIVE ..

FOURTH STEP – MARKETING PLAN

SELL FROM YOUR HEART, NOT FROM YOUR
BRAIN

“Advertising does not sell homes – Real
Estate Professionals sell homes”
There are many ways of merchandising your home.
Some houses will draw more calls, so they may be shown more
often. This is just like the retailer who has specials to get
customers into his store so that they will look at the rest of the
merchandise. The right methods need to be identified.
OPENING PITCH

 Put a sign in the yard
 Put an ad in the paper
 Put it in the MLS
 Pray that it will sell
THE 4 P’S OF MARKETING

• Perform a comprehensive Comparative Market Analysis
• Prepare Just Listed Post Cards
•Prepare an Information Flyer including facts and photographs
•Provide price results from Tour Appraisal of Sales Associates
•Add to newsletter
•Write and place classified advertising in various newspapers
•SMS and Email campaign to your entire database
MARKETING ACTIVITIES

MARKETING ACTIVITIES
 Flyer to market listing in Commercial Hubs, Market Places, Malls
 Market to other agents in the area
 Prepare a home feature survey and send it out to prospective home
buyers database
 Follow-up with you at least every two weeks with a report on
showings
 Re-evaluate marketing plan and Reduce price, as necessary, to stay
competitive

FIFTH STEP - PRICING

How do you sell your home for the
Best Price, in the
Shortest Time, with the
Most Favorable Terms and Conditions?
By Pricing it right, Initially!!!!!
Fair Market Value

Major Factors Affecting Value
 Price  Conditions
 Supply and Demand  Political Actions
 Seasonal Markets  Location, Location, Location
 Interest Rate
Methods of Evaluation
 Market Value Approach
(comparable property sales)
Income Approach
(investment or income producing properties)
 Cost Approach
(most useful on new properties when
replacement values are readily determinable)
FAIR MARKET VALUE

We’ll do it right!
My Comparative Market Analysis
will consider the factors above and
lead us to listing your property
right…from the beginning.
DETERMINING THE VALUE OF YOUR HOME

1. Content: current statistics & data
• Use your understanding of market
• Give data on past transactions
• Give data on LP, SP, Days on Market
2. Form: questions, metaphors, 3rd party stories
• Give examples of other people having done
similar transactions
AGREEING TO A PROPERTY PRICE

Step 1: Pause (slow down for thinking, decision time)
Step 2: Acknowledge (recognize, respect their opinion)
Step 3: Isolate (identify, focus on crux of problem)
Steps 4 : Probe (for whys & underlying reasons for
objections)
Step 5: Answer (address with facts, data as a partner)
Step 6: Close again (Ask for a decision…if none, repeat the
process) (Concede is not a step!)
HELPING THE SELLER DECIDE

SIXTH STEP-NEGOTIATING

1) Commission percentage
• Commission percentage reduction in comparison with price reduction
• Do you think a good agent with good services will reduce his fees to
half if he is a good negotiator and is committed to provide you good
services ?
THINGS THAT HAVE TO BE NEGOTIATED

2) Mandate period
• Importance of the first 30 days
• Maximum impact if priced correctly
• Maximum advertising
• Closing possible only within 60 days at least
• Do not fall in trap of lesser period

SEVENTH STEP- CLOSING

loseC
90% Conviction and 10 % communication

CLOSING REBUTTALS TO GET
AN EXCLUSIVE MANDATE

Objection: Would you be willing to pay for the classifieds,
the sign, the Internet advertising, the petrol cost, and the
time of several people in our office?
…
Response: We do invest a lot of money and time into every
listing, and the corporate policies do not allow us to invest
all of this if we do not have an exclusive listing agreement.
CLOSING NO. 1

Objection: “ABC Realty will take my listing
without an exclusive agreement”.
Response: “They probably need more
listings badly; what we want is satisfied
clients”.
CLOSING NO. 2

Objection: What if you fail to deliver the
commitments ?
Response: Actually, you shouldn’t worry
much about this, as our listing agreement
indicates that you can terminate the
agreement if we fail to deliver what we
promised.
Is there any other reason why you couldn’t
sign the agreement?
CLOSING NO. 3

READY TO SIGN ON THE
DOTTED LINE?????
………………………..

NO EXCUSES
Great Sales People do not
give excuses, they accept
100% responsibility for
their success or failure.
If they don’t achieve their
Target, they don’t revise them,
they simply revise their activities.

THANK YOU!

Exclusive Mandate in Real Estate

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