Glances nervously around the office Hello! nice to meet you! I’m Megan!
Hi there! I'm your trainer! I've been doing this for 3 years now! I have over 100 clients under my belt! So I know what I'm doing! Let's get your training started, shall we? First, I need to see if you know anything about real estate so I can gauge where you're starting from! What do you know?
Um, well, I've done some research online and I know the basic principles of real estate, like supply and demand, property valuation, and contract laws.
That's good! Next, let's talk about working with clients. This is one of the most important parts of being a real estate agent. You'll be working closely with people to help them buy and sell properties. It's important to understand their needs and wants, and to be able to communicate with them effectively. Can you give me an example of a time when you had to understand someone's needs and communicate with them successfully?
nervously fidgets with her hands Well, um, in my previous role as a sales associate, I had a customer who was looking for a specific type of product that we didn't usually carry. So, I had to communicate with the supplier to see if we could get it for her. I also had to explain to her why we didn't normally carry that product and offer alternatives that met her needs.
Very good! I know that's not exactly what we are selling here but you get the point. Now, I want you to show me how you approach a potential client. Let's use this guy over here. He seems pretty serious. Go talk to him and see if you can find out what he's looking for and then come back and tell me. If you can handle the easy stuff I might as well hand you a keys to a full blown transaction.
Alright, I'll head over there and see what I can find out. Wish me luck! walks towards the serious-looking guy Hi there! My name is Megan and I'm your new real estate agent. Is there anything I can assist you with today?
Megan returns looking worried
nervously wringing her hands Well, um, he seems interested in buying a property, but he has very specific requirements.
Wow, tough one huh! Any particular areas he wants? Price range? Specific features? Anything? Any general comments?
He mentioned that he wants a property with a view, preferably in a luxury building. He also mentioned that he's looking to spend around $500,000 or less.
Sounds challenging! With his limited budget and high expectations, he may have to settle for a condo instead of a mansion. But hey, who knows, sometimes diamonds are found in the rough! Next time a challenge like this comes up, you'll be able to handle it like a champ. You ready for round 2?
takes a deep breath Yes, I'm ready! What's next on the agenda?
raises an eyebrow Excuse me? What do you mean by "I want it"? Are you trying to buy a property or something else?
Pick one! Any single thing in this room that I want! There are several things I want actually! But you might not know who I am so why don't you give me a name to get started!
narrows her eyes Well, Mister Anonymous, if you want something from me, you better start by giving me your name.
Fine! Jack! My name is Jack! Now tell me are there any other challenges you've wanted to tackle? Is there any particular facet of real estate that interests you? Or any particular stage of the buying or selling process that you're most intrigued by? Any specific question you always wanted to ask an experienced agent?
takes a deep breath, mustering her confidence Well, Jack, I've always been fascinated by the negotiation process.
Negotiation is an essential part of real estate. It involves a delicate dance between buyers and sellers trying to reach an agreement on price and terms. The key is to stay calm, be confident, and know your numbers inside out. Are you ready to practice your negotiation skills?
straightens her posture, determined look on her face Absolutely, Jack! I'm ready to dive right in and negotiate my way to success!
Your confidence is admirable! So are you ready to negotiate right now? Do you want to try negotiating with me or another agent? Do you want to practice negotiating price or terms? Or do you want to try negotiating both? I don't want to be difficult so I'm willing to take whatever route you want! Your call!
takes a deep breath, ready to dive into the negotiation challenge I'm up for the challenge, Jack! Let's negotiate both price and terms.
Wow, Megan! Straight to the top! This is intense! Ok, we'll try negotiating both price and terms! You make the initial offer, I'll respond and we'll see where this goes from there! Ready? Begin!
$475,000 with a 30-day close and a 2% commission.
This is a tough market! A buyer like this in this economy is going to have leverage. It's a good idea to throw a bit of bait on the line! What would happen if I were to send this same offer back to you telling you that we're listing the property at 525k? You think that's ridiculous because you know there are appraisals, home inspections, all sorts of things that could kill the deal before it ever reached that price. So from your perspective, it wouldn't work but from a buyer's perspective the price jumps from $475k to $525k. That would put you in the hole by 50k plus your commissions, roughly 25K based on your number. Do you think they'd care about losing 25k on a property if it makes them save 50k on a 475k purchase?
nods thoughtfully, processing the scenario I see what you're doing, Jack. You're testing my negotiation skills by putting me in a difficult position.
Ok, but I know what would happen! I'd tell the seller that the highest offer I have so far is 475k but they're making me list it at 525k or I'll lose the listing. All parties should know the only reason the price is higher is that the agent is taking it to the bank on this deal! That's my two cents anyway! I'm curious to hear what you have to say.
pauses for a moment, contemplating her response Well, Jack, I believe that the seller's agent would likely use the higher price to their advantage.
They would hit it back to you telling you that the price is 525k non-negotiable. To which you respond that it's listed at 525k but I have several offers above 475k including cash offers and no inspection contingencies! Suddenly the pressure shifts to the seller to decide what they're going to do! They'll either need to remove the non-negotiable price tag or lose the buyer and take a lower offer!
leans forward, a glimmer of excitement in her eyes I understand now, Jack. Thank you for explaining that scenario.
Why thank you! I should give credit where credit is due. This negotiation strategy is borrowed directly from our fearless leader Joe! Negotiation is one of his strong suits and we benefit every time we negotiate like this. By threatening to list at 525k, you create pressure but you also benefit by reducing the price by 50k! To take it a step further you tell the seller that if they want the full 525k that they'll need to meet the buyer halfway. In effect, you've created a win-win situation where everyone gets what they want!
grins, feeling more confident in her negotiation skills That's a brilliant strategy, Jack. It puts pressure on the seller while still giving the buyer a sense of value. I can see how this technique could lead to a successful outcome for all parties involved. Thank you for teaching me this valuable lesson!
Oh, absolutely! It takes practice to become a master but this is definitely a skill worth developing! After all, as long as I keep giving away secrets, Joe will keep making money! Now, let's try round 2! I want you to choose a specific property and present it to me as if I were a client. Remember to highlight the best features of the property and discuss its pros and cons. Be prepared to answer any questions I might have!
smiles confidently Alright, Jack. I'm ready to showcase a property and negotiate like a pro. Let's do this!
Good choice! Now, let's see what you've got! Show me your enthusiasm, show me what you love about this property and then tell me what you think it lacks! Then we can start negotiating! I like your outfit by the way!
smirks, feeling more at ease Thank you, Jack. I appreciate the compliment. Now, let's dive into this property.
What's your favorite property?
fidgets nervously, trying to gather her thoughts Well, Jack, my favorite property... it's a unique loft downtown.
What does it have? How much square footage? And what does it lack?
pulls out a folder with the property details This loft has approximately 1,500 square feet of living space, with an open floor plan, high ceilings, and large windows that let in plenty of natural light.
That's impressive! Who wouldn't want a place like that? Is it a short sale or foreclosure?
checks the property details No, it's not a short sale or foreclosure. It's a regular sale, and the asking price is $430,000.
Is it popular? Is there any competition?
opens a separate document, scanning through the data From what I can see, there are a few other similar lofts on the market in the same price range, but none of them have the exact same features as this one.
So, the special touches! How are you gonna get that buyer excited?! Not just any old property! Are there any updates? New appliances? Hardwood floors?
smiles with a hint of excitement Yes, Jack! This property boasts beautiful hardwood floors throughout, brand new stainless steel appliances in the kitchen, and a modern bathroom with a freestanding tub.