Transcript for:
Articulating Value in Real Estate Transactions

if you're a real estate agent that is wondering  postar how do you communicate value in a way that   gets your buyer brokerage agreement signed Andrew  Undem is going to share with us his exact process   that I know is going to help you get more business  immediately after watching this video all right   Andrew there is nobody in my opinion that does  this any better than you so this is what's going   to be exciting is is those folks that are out  there and they keep hearing that they need to be   able to communicate value in a buyer presentation  it's one thing to hear that but it's a whole other   thing to understand exactly what that looks like  I think everybody understands they need to do it   but they're not sure how to do that so what's fun  about this is as you and I have talked about this   over the years I know you do it on the seller side  but the buyer side is a focus that a lot of people   miss out on so if you don't mind let's just start  at the beginning what does this look like as far   as you know the typical meeting and just kind  of go through your process if you don't mind   yeah I think we've all heard you have to Showcase  more value on the buy side and it's been beaten   to death on the seller side and our marketing  proposal side but how do you do it on the buyer   side you got to show value and I hear a lot of  people say those words but they're not actually   saying this is how you actually show the value so  what we're coaching our agents and our team is how   to show the value okay and before we get into the  the nitty-gritty the key thing here is you have to   be comfortable okay everyone knows Bond and report  is an important thing and how to make other people   comfortable you're never going to make someone  else comfortable unless you're comfortable so   look you're going to win through reputation or  Preparation ideally both okay but you got to   be prepared for some of this and that's probably  why you're watching this and you're subscribing to   Jimmy's Channel because you want to get better so  when we're talking about a buyer situation I like   to draw out everything on hand so I don't care  if we're meeting at the office we're meeting at   an open house I'm hanging out at my kids swim meet  and I'm talking to a parent you have to be able to   articulate the value proposition of buyer agency  in a compelling way where they're going to agree   to pay you two and a half three over 3% so that's  a lot of money A lot of times so this is a real   conversation um so when you break this stuff down  and and also because it's a dynamic environment   you have to be fluid okay so what I say here you  can use pieces of this move it around make it your   own but you're not in a vacuum when you're at the  open house or you're doing a buyer consultation   at the office which is what you want or you're  out in the wild you have to be fluid with this   stuff you have to be unconsciously competent and  that's only going to happen through preparation   so with those bases covered if you're talking to  a buy there's a couple kind of key things here how   does an agent provide value well what you want to  do is you want to draw out here's everything that   happens in that transaction okay starting with we  all know pre-approval right so that's a piece then   you have your home search that's a piece market  dynamics that's a piece offer research not making   the offer but researching what you might do for  the offer is a piece the components of an offer   is a piece the contract period settlement and  post settlement so there's like eight or nine big   pillars where you can provide value okay so I'm  just going to Rattle these off Jimmy because when   we're talking about these stages throughout the  buyer Journey it's your opportunity and thereare   I say your obligation to provide value to that  buyer okay so on a pre-approval let let me say   this Andrew because I know that it's hard to do  it here um because I you you and I have sat down   and you've actually drawn this out just like you  do with someone um if we can can you record that   after this and then if somebody wants that we'll  have it down in the show notes if they're watching   this on YouTube or if you have if we don't have  it in there just email me and I'll send this to   you would that be okay 100% because what I'd like  to do is draw it out I don't have my iPad today so   I'll record myself doing this and you know what  I did it right before the call this is what it   looks like now you can't read my chicken scratch  but if you put this on a piece of paper each one   of these words is compelling value in real dollars  so say the first point preapproved so jimmmy when   you're going to buy a home it's really important  that you understand all the loan options and the   different programs available here in Baltimore a  lot of times buyers don't know they can get grant   money they can get tax credits and there's so  many different programs through mortgage brokers   and banks that can unlock some value for you so  that's why it's really important to have an uh   in-depth conversation with a mortgage person a to  understand can you pick up some free money what's   the best program for me should you do 1% down 5%  down 20% down 50% down and really understand what   type of mortgage product you're getting and one  of the things we do one of the components of value   we bring to the relationship is we guarantee our  buyers the lowest interest rate and how we do that   is once you apply for a loan we're going to help  you shop that loan with other mortgage companies   now the loan officers don't love it when you do  this but my job is to get you value so I'll get   you the lowest rate and the lowest fees see time  out when you're talking about pre-approval now   talking about real money I'll guarantee you  I get you the lowest interest rate and the   lowest fees that's a component of value and then  you explain the way to get a real Advantage when   you're going out to buy a home is not just to  get preapproved but to verify all of your assets   this is doing heavy lifting before you start the  process because that mortgage loan officer we're   going to coach them up on how to help us convey to  the seller how strong you are and if they already   have your documents they have your assets and it's  verified we can close quickly and they can help   us coach the listing agent on how to talk to the  seller boom so that's one pillar okay pre-approval   it's not just oh I hope you can buy I hope you're  qualified hope I don't waste my time it's no I'm   gonna help you I'm gonna help you get money save  money get you the lowest interest rate and have   an ally on our team to win this deal boom now  we're talking about can I can I add something   there this is what I love is that immediately you  go into how the different the differentiators here   so when you talk about this you know and you say  most buyers don't know I mean that's immediately   you know that wording every word has value and  by creating that situation where wow I don't even   know this now You' immediately almost piqu their  interest not just piak their interest but you've   given them something they may not have known about  other thing I love the word unlock unlock value   for you so these are things like using those  things guaranteed lowest interest rate look   lenders don't always like this but that's my job  I love the where you you're phrasing all of this   and look if you're somebody that's listening to  this that what you just did on the first of one   of these nine or 10 or 11 pillars is more than  95% of Agents speaking the value that they bring   and some of this we do these things but we don't  communicate them so I want to I want to step back   but I just wanted to say listen if you're this is  going to be a video you're going to want to watch   multiple times because just in that one little  thing that that first pillar that Andrew was   talking about there are two or three very critical  words that you can use that will absolutely get   you the opportunity to get more buy or brokerage  agreements signed just right there so I I'm gonna   be quiet as much as I can andw I get excited  because this is I know this is going to be so   good listen stick around to the end of this thing  because the way that Andrew closes this thing is   pretty special as well well Jimmy it's like what  our friend shiron always says and look I didn't   come up with all this off the top of my head  I find the smartest people I can I kind of try   to copy it put it into my own language but shiron  always says showcase complexity deliver simplicity   show so this this process can be complex just  in that first pillar oh my God there's so many   different programs can I get some money is this  person going to be an asset or a liability am i   g to be prepared so that's what you want to do  here and you always have the consumer in mind   what my friend Alan Dalton always says is you have  to focus on the consumer by the way Jimmy you know   this he wrote this book this is a whole book on  what to do on buyer agency just came out yeah   I've read it like four times yeah that's great  there's so many ideas in this thing that you can   put in your presentation too but I'm just sharing  you kind of how I like to do it because it's just   logical rational boom okay so we got pre-approval  now let's talk about your home search now I'm   skipping the the Rapport steps of hey what are  you looking for of course you're GNA uncover that   and in our business it's pretty easy they want to  move right they want to buy something for whatever   their reasons are of course you want to get their  non-negotiables they're nice to haves any critical   dependencies on timing and budget okay but now  we're going to jump into the meat of it now we're   trying to kind of teach them a little bit we're  going to be a professor here so okay first thing   we got to do is got to lock in this pre-approval  next bullet point when you're searching for homes   how are you doing that now oh I'm looking on  Zillow whatever they say that's awesome hey   that's what everybody does and they're not seeing  all the off- the market inventory so totally do   that look for homes but you're only seeing homes  that an agent has put in the MLS that's populating   these thirdparty sites a lot of times these sites  don't have all the coming soon listings which are   homes that are going to be coming on the market  soon we have to pay attention to that particularly   in a low Market environment a lot of our buyers  Jimmy are saying God I'd love to buy but I just   can't find the right house well that's because  most agents are lazy hate to say it they're going   to wait for you to find a house and they're going  to show up and hopefully collect a fee that's not   how we roll okay because we fight to help build  equity with our clients before they even buy so   the search process you're going to see everything  on the market then we have the coming soones okay   but here's where we've helped a lot of our buyers  is all the off-market properties did you know you   see every single house that someone wanted to  sell that didn't sell those are called either   expired or can canceled listings we want to look  at those how about all of the free coming soon   listings these aren't listed as coming soon but  we know they're coming some people call those   pocket listings we have access to all of those as  well new construction listings typically a builder   will put one or two listings up but really there's  30 or 40 there different floor plans different lot   sizes even different communities so understand  the search process that's why it's important for   me to really know what you're looking for and most  buyers don't know exactly what they're looking for   until they've gone and seen a couple which you  know we're happy to do but always be thinking   of what you're going to be searching for so I can  unlock some of this inventory Jimmy likes the word   unlock we're going to keep unlocking stuff for  you I love it now as you're searching you have   to understand the market dynamics of what's  going on okay the market dynamics are just a   relationship between active pendings and souls so  it's kind of nice to know if you're zeroing in on   a specific town a specific school zone a specific  area what's the average list to sales price ratio   which just means are they getting full price are  they getting a little more than full price or are   they getting a little under full price historical  data is very important because it's going to help   us create a compelling offer okay what's the  average days on Market how long is it taking   these homes to sell are there any closing costs  in these deals and we can look at the historical   data and see what's going on in the market now  nationally it's what you hear on the news that   doesn't matter what matters is in your micro  Market in this ZIP code in this price range if   you're looking between five and 600 average days  on Market list of sales price ratio what's the   month supply of inventory all these things and  I'm going to walk you through all that but it's   gonna be really important to study this because  I want my buyers to know mo more than most real   estate agents by the time they're done so that's  how you build equity every buyer wants to get a   good deal do you guys want to get a good deal okay  we're going to talk about that two once we once we   find the property and you see one you like and  look this is a process of elimination we try to   eliminate as much as we can a lot of times you can  eliminate it based on price based on area based on   condition you don't like the pictures the Island's  not big enough whatever it is but if we can't   eliminate it we're going to go see it in person  and if we can't eliminate it in person you know   sometimes they smell like catpiss eliminate that  one right if we can't eliminate it we're going   to do a little off for research because every good  buyer agent knows always touch yourself what every   good buyer agent knows is we get paid in direct  proportion to the information We Gather not the   information we give so my job is to gather Intel  once you're interested I want to know exactly how   long's this home been on the market how many  showings are they getting why is the seller   selling is there any critical dependencies for  the seller on what they're looking for in terms of   time frame in terms of pricing what did they buy  the home for what type of financing did they have   when they bought it were did they get a concession  these are all pieces of information we can use and   potentially leverage to get a better deal okay  that's my job that's the offer research phase   again once we've identified something that we're  considering now let's talk about an offer and this   is really important I've done this so many times  on an napkin we at the bar hey I'm thinking about   buying a house I immediately go into the five  components of an offer okay so guys look when   you're thinking about an offer when you're looking  on Zillow wherever you're looking when you see a   house a lot of times people say oh it's listed  for 400 I wonder if they take 380 which is a fine   question but an offer really boils down to five  things purchase price closing costs have you heard   that term before closing costs let me explain  it because you know and then I I go into it hey   that's transfer Recreation taxes that's your title  fees that's you know you break down closing cost   for people and I'll do it when I do my video  but for brevity I'm not going to dive into   that purchase price closing costs contingencies  okay you're always going to do a home inspection   you're always going to have typically a financing  contingency an appraisal contingency that's my   job is to protect you when we get a house under  contract you have the right to buy the house you   don't have to buy that house and keep in mind  the seller has one house to sell we can buy   whatever we want we do not give our power away so  purchase price closing cost contingencies deposit   and settlement date okay there's five pieces to  an offer so when you're looking at homes and I'm   sending you some of this off the market inventory  what a Savvy buyer what our buyers think is not   oh I wonder if they'd take 380 hey I wonder  if they'd take 380 give us a $10,000 credit   give us 10 days for a home inspection with a  $3,000 deposit if we settled in 21 days now   we're talking now we're talking like a buyer who  knows what's going on so you have to understand   that is the offer process purchase price closing  cost contingencies deposits settlement date bang   and you can break in some time frames in there  too 10 days for a home inspection five days to   apply for the loan 21 days for mortgage  approval okay once we get through that   how we submit an offer is unbelievably important  because guess what we sell 500 homes a year I'm on   the listing side on a lot of these and most buyers  agents disqualify themselves based on their lack   of communication and how they professionally  present an offer I got an offer today in five   different PDFs no summary no pre-approval letter  even if that's the best offer I'm thinking man   I'll explain to my seller I don't really know  what's going on with this agent I'm not sure   if their representation on this side is going to  be be smooth sailing so how we present the offers   is very important and what a great buyer agent  does is we package it up in one clean PDF give   them a beautiful summary have our team involved  which is our verified mortgage professional who   has all your documents and we submit it over and  we coach the listing agent on how to present this   to the seller see unfortunately we play a little  game of telephone I don't get to talk directly   to the seller but I get to talk to the seller's  representative in a lot of times we can influence   that conversation between the listing agent and  their seller but that's black belt stuff that's   what we do hey before you move on because I I  don't want to miss this subtlty like you were   talking about the psychology of when when you're  referencing you know great agents and you're   touching and you're speak to that psychology  a little bit if you don't mind because I think   it's a subtle thing that makes a big difference as  well well what we what we're trying to do is lead   someone throughout the course of a transaction and  showcase complexity and deliver Simplicity and no   one wants to follow anyone that they can't learn  anything from now right if the client thinks they   know more than you and God bless them most of them  do most of my clients do until you can showcase   here's all these components of value we bring  to the relationship and that's just a little you   know I guess the NLP style thing where if you're  looking at them and you're holding eye contact and   you're touching yourself and you're nodding you're  you're delivering a lot of subliminal messaging   saying I'm the guy okay yeah you don't want to  go to battle with me you want me on your side not   the other side so that's very important and like  Jimmy you've heard me say this many times from   from stage in the talks is what's crazy is they  don't even actually have to believe everything   you're saying they have to believe you believe  what you're saying that's right so if you don't   deliver this properly it could blow up in face  that's why hey look reputation or Preparation if   they don't already know you and look a lot of our  clients they come to you they've seen you online   they're like just just show us the way and that's  great but sometimes that's not the case and it   would be nice to work with more strangers and not  just our sphere of influence if you're trying to   sell 50 100 200 houses a year you have to be able  to get everybody right and when you're in the red   zone and when you're talking to a ready willing  and able buyer and they're thinking should we use   this person should we not should we sign a buyer's  agency agreement or not with them you're in the   red zone right and when you're in the Red Zone you  don't miss that's right Navy SEAL Sniper Center   Mass we got to blow a hole right through them in a  good way you know in a way that's gonna help them   get what they want because one of the little lines  I always sprinkle in there is you know what my my   job really is my job is just to help you get what  you want and do it in a fashion in which you're   GNA say nice things about me on the internet ha  now I already that's a little planting of a review   there okay you can and you can stop anywhere and  say that so so contract phase this is where a lot   of people Miss as well because administering I got  this from Allan buyer agent beware in his book how   you administer the transaction once you have a  contract very important so when we're now once   we have a signed contract all the dates become  live we have to apply for that loan within five   days we have to schedule that Home Inspection  within 10 days whatever the contract stipulates   in each step of the way our whole Home Services  ecosystem is going to get involved because now we   have the lender we have the appraiser we have the  inspector sometimes there's multiple inspectors is   there a well is there septic is there a pool are  we talking just structural and mechanical do we   need someone to look at the roof I have these key  relationships and because we're administratively   gifted and I have a team that helps me with this  is we're gonna be so on point that we're going to   push this transaction forward in a powerful Manner  and while maintaining your protection throughout   the contract period okay and by the way I know  every single appraiser in Baltimore we've sold   5,000 homes and I've saved every Appraiser's  number so we have relationships and we can play   this game if we need to okay but most of the time  again through the contract period we're going to   logically explain our situation for example  something's up with a home inspection we're   going to get a credit or we're going to have them  fix it and instead of them just saying no we're   going to coach the listing agent on how to talk  to their seller throughout the process and then   of course at settlement one of the components of  value we bring to that relationship is our title   attorneys here at home sales Settlement Services  a will guarantee the lowest uh title fees will   settle anywhere anytime at your convenience and  will almost always be able to get you a reissue   rate what's a reissue rate well Title Insurance  the person who bought the house that you're   buying they have a title insurance policy most  agents don't do this you can call them and say   hey could we get a copy of your policy and it cuts  your fee by 50% I'll drive your closing cost down   that's my job I'll get your closing cost cost down  because I can effectively manage the entire real   estate ecosystem so guaranteed lowest rate best  Loan program I'll get you a discount on your home   inspection I'll find off the market inventory I'll  help you get what you want and negotiate like a   beast and I'll have you all the settlement charges  less because we have volume and if and if you   don't have volume maybe your office does or maybe  your your brokerage does and then post settlement   you say look at the end of this relationship I  want you to know we're just con this is a this is   the beginning and I'm here for you so if you need  a contractor a painter a mover anything you have   access to our clients only Home Services guide  and that's and that's how we that's how we like   to represent a buyer so do you have any questions  about what I went over oh this is so good this is   so good and see what's what's great about this  is you you literally just did this off the top   of here because you've done so many of these so  talk to the person who maybe has not done one of   these what does that look like as far as training  for your team is it role play is it laying this   out and and just practicing this or how are you  teaching people to move from where they are to   where you are or to at least start hitting in that  direction well look if you're going to be a real   estate practitioner this is this is your job okay  so we need to know these things and it's not just   opening doors and showing property and that's how  the public views these Buyer Agents we're all fee   Pirates scum okay we're overpaid that's actually  not the case but we let people believe it because   we haven't developed the skill to articulate  exactly what we're doing so when you really   think about it and again I'm I'll draw this out  for you and we'll put it in the comment on YouTube   we'll make sure they have a place to get it all  you're doing is talking about exactly what you do   do you help people get pre-approved you do do you  help them search for properties you do do you help   them understand market dynamics you do the key  is in each one of these bullet points I probably   miss 10 things there's other little pieces of  value you can put in there and then the one thing   that I love that Chiron does now this is a Chiron  thing when he talks about hey real estates about   contracts and Power Players and every real estate  consumer should understand the three agreements   that govern a real estate transaction  yeah there's a listing agreement between   the seller and the listing agent there's a buyer  agreement between the buyer and the buyer's agent   and there's a purchase contract between the buyer  and the seller that's all it is now I'd actually   probably frame that up front maybe before you even  get into the pre-approval because at the end after   you've shown this value you say look typically  how it works have you heard about the lawsuit   most people have but they don't know what's going  on you just draw it out say well typically all the   money in the transaction the buyer is giving to  the seller because they're buying the house and   then the seller would pay the listing agent and  the listing agent would share their commission   with the buyer agent that's not going to be  the case anymore instead of the listing agent   paying the buyer's agent the seller can pay the  buyer's agent directly or the buyer can pay but   it doesn't matter because it's all one pool now  in order for me to represent you I have to have   an agreement signed saying hey this is my agent  and whatever number we put in there is the max I   can get paid so I always like to put in there 3%  now a lot of times 96% of the time right now and   this could change right because August is coming  the seller is going to be offering two and a half   or 3% if if they're offering 2 and a half% I'll  accept that if they're offering 3% we'll accept   that that's already predetermined if the seller's  not offering it that's when we're going to have   this conversation to say hey look the max I can  get is 3% and we'll work that out in negotiation   but just so you know we can't go under two and a  half percent and then I just leave it at that you   stop talking and you tell you what I've gotten  all so I'm working with five or six buyers i' as   I was telling you Jimmy I'm back in the scene I'm  back in the weeds I'm taking buyers out I'm taking   listings I'm enjoying I I like doing this stuff  me too if you can explain that you're G to save   them money throughout this process because guess  what the most consumers even if they've talked to   agents before they' bought a house before they've  never seen this on of timeline with 30 things   that you're GNA do and you are going to do them  you're not creating extra work for yourself right   creating transparency you're creating honesty and  the fact of the matter is you just want to get   them what they want and hopefully happens say nice  things about you on the internet because you're   going to deliver some unexpected extras in there  you're going to find them some property and you're   you're going to negotiate properly so that's  it in a nutshell and there's a lot of different   complexity to it but listen this is the this is  the thing and this is what I love about this and   so U is we keep hearing about how do that we need  to communicate value well what you did is just   articulate a process to be able to communicate  value um so from that standpoint whether you're an   agent that this is exactly how you do this I mean  I would copy it almost word for word but if you're   someone who wants to add some things maybe that  you do or maybe eliminate some things that you   don't do if you'll follow this timeline this is  absolutely going to give you a upper hand on your   competition so if you're an agent you're listening  to this and you know there's other agents that are   friends of yours that maybe are wondering what  they're going to do as these changes happen or   maybe you're having difficulty communicating that  value I would encourage you share this information   with them watch this video multiple times pause go  in there and write this out in your own language   and in your own tone in a way that you have  confidence when you're presenting this Andrew   um man I just appreciate your transparency with  the industry this is going to help some people um   and so listen if there's an agent out there that  has a referral for the Baltimore metro area how   would they get in touch with you and your team  well we're easy to find where the sure group   real estate sure groups our team name sure group  real estate anywhere on on social media I'm on   Instagram Undem call text email and like I always  say if you give us a referral it's like shacking   his Prime in the paint it's we're dunk in this  exactly and and let me just say this as someone   who has experienced passing that off you know and  got the assist he's absolutely telling the truth   so um I appreciate everything Andrew listen I  know you guys got some value out of this make   sure you reach out to Andrew let him know how  much you appreciate it we'll talk to you guys   soon thank you thanks for watching the video  I specifically chose the video below for you   because it builds on the one you just watched  I hope it's helpful and I'll talk to you soon