Ch. 9 First Appointments

Question 1

What are the goals of the First Appointment?

Answer 1

• Recap what was communicated on the CALL
• To learn about client needs and goals
• To lay the foundation of a long-term relationship
• To touch on the value of representation
• To discuss the sale of the property
• To gather necessary information to complete the proposal
• To leave a positive impression of you and the firm
• To create action items for both you and the client
• To set date for next meeting

Question 2

What are the steps of a First Listing Appointment?

Answer 2

1. Introduction and building rapport
2. Learn about client needs and motivations by asking open-ended questions: (situation, problem, implication, and need payoff Questions)
3. Determine whither a proposal is warranted
4. If warranted, sell the proposal process as a solution to the clients needs
5. Request books and records
6. Obtain a conditional agreement to exclusively list the property
7. Schedule the second listing appointment

Question 3

Why Prepare for the 1st Appointment?

Answer 3

• So you are able to ask appropriate questions that could lead to the client’s decision to sell.
• Your knowledge of rent comps, sales comps, the client’s properties and the local market will leave the client feeling that you are credible and knowledgeable.
• After learning about the clients situation vs the market as a whole you will be better able to assert a suitable course of action.
• It boosts the probability of you capturing the business vs a competitor.
• A bad impression is hard to repair

Question 4

What to Prepare for the 1st Appointment?

Answer 4

• Ownership Information: When was prop acquired, how is title held? Who is decision maker? etc.
• Scope of Clients Investment Real Estate Portfolio
• Visit the Property(ies)
• Know the Market
• On Market and Closed Sales Comparables
• Rent Comparables

Question 5

How do you Build Rapport?

Answer 5

Break the Ice: Avoid cliche ice breakers. You know you and the client already have real estate in common, ask how they got into this specific property.

Match & Mirror the Client: Many clients do not appreciate small talk. If you sense this to be the case, then move on to business.

Transition into the heart of the meeting: Discussing real estate is a natural way to build rapport while setting up a smooth transition to the next step.

Anchoring: Alternatively, if the discussion does not naturally transition into the next step, just restate the reason for the meeting. This is called anchoring, it establishes momentum and indicates that you are responsive to the clients needs.

Question 6

How to Learn About the Clients Needs and Motivations

Answer 6

• Overview: goal is to learn about their needs and motivations, and determine how you can help and add the most value to that.
• Determine if the Proposal is Warranted: Is client likely to sell, exchange, refi? Is the motivation behind the clients desire to sell based on price or is there more to it? Would a proposal help you build a valuable relationship?

Question 7

What do you do if the Proposal is warranted?

Answer 7

• If the proposal is warranted, you must clearly articulate how the client will benefit from the extensive info contained in the document ..
• Convert features to benefits: don’t describe the contents of a proposal; describe how those contents will help the client make an informed decision about how to best achieve his or her goals.
• Focus only on those benefits that are relevant to the decision that the owner faces.

Question 8

After Selling the Proposal, what step is next?

Answer 8

Get the BOOKS AND RECORDS..

Depending on product type, you may ask for: Tenant Leases, Current rent roll, Operating Statements, Expense breakdown, Tenant, Expense Reimbursements, Notes, List of Capital Improvements over the past five years, floor plan , unit square footage, environmental survey, appraisal, details and age of major systems: Roof, HVAC, etc.

If they object books and records: Ask why the client doesn’t want to produce books and records: They may not understand why we need it … Concerns about confidentiality, a lack of motivation, a hidden agenda, your lack of credibility or rapport.

Explain how providing books and records will ensure the accuracy of your evaluation and ultimately help the client achieve their goals. Explain that complete info often helps us squeeze additional value out of the property.

Verify that he or she understands why we need books and records

Ask AGAIN

Question 9

What is the last 2 steps of a 1st appointment?

Answer 9

Obtain a conditional agreement to exclusively list the property.

“If we can agree on the price and terms, would you allow me to exclusively represent you in the sale of your property?”

“Provided you are interested in selling, is there any reason why you wouldn’t feel comfortable allowing me to exclusively represent you in the sale of the property?”

If there is an objection: Objections should be clarified, acknowledged, Isolated, and tabled or overcame.

LASTLY,

SCHEDULE THE SECOND LISTING APPOINTMENT; Date, Time, Location, ETC …. Schedule at least 1 hour, review agenda for meeting, ask if they want to add anything, Provide a blank copy of the exclusive representation agreement. Ask the client to review the form and raise any questions at the next meeting…