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| Many or most real estate agents will not be in a financial position to build a Trade in Program. THINK BIG now is the time to team up with your Real Estate Investor clients for joint financial benefits. Investors can run all over the country trying to find properties available at these values-share and make money together. =============== |
you money and open the door to your secure retirement.
Home and property trade ins accepted.
Never advertise without it!
Another/additional piece of ammunition for your marketing campaigns.
When you uncover a property owner who has a property to sell in order
to move on to buying, you have found TWO potential commissions.
[Listings..merchandise on your shelve, you can't sell from an empty
wagon. Early on a truly successful real estate agent must learn this
simple fact, "If you don't list, you won't last."]
I am sure you have seen these "Bandit" real estate signs scattered
around by agents screaming out, "I'll Buy Your House" - "All Cash"
"Any Condition"
Real Estate agents are posting signs to find houses to:
** 1 Fix and Flip
*** 2 Wholesale to Investors
**** 3 Make a "low ball" offer then seek a listing
There is a different formula..straight forward...honest..no tricks!
Establish a TRADE IN Program
{Where would auto dealers be without taking trade ins?}
Once you have a Trade In Program always put in your
advertising a magic line:
"Trade in your home on one of our listings"
"Your home accepted in Trade"
"Easy Move with our Home Trade Program"
With a Trade in Program, no more running
around at night putting up bandit signs, no
more need for false/misleading advertising.
Prospective sellers/buyers will be coming
to you. You are in the cockpit ready to fly.
You will start to work with property owners, prospects that will also
be sellers If you find a property they want to buy. They need the
equity from their home to complete the purchase. BUT, will the
seller want to take their property "off the market", accept a
contingency allowing your prospect time to list and sell their home?
You need to be honest with your buyer, they are in a very soft
bargaining position to buy a home. A maybe sale allows the
seller a superior position and most often hold out for a top of
the market sales price.
Now we see how having a Trade in Program in place puts you
in a unique place. You can put the the buyer in a strong position
and save the seller the worry of do or don't accept a contingency
sale....pending sale doesn't sound as good as SOLD.
Always on the mind of your trade in prospect is how much
cash will I have to work with, what is my equity?
Next how to start up a residential home TRADE IN Program, first
check out the software being offered here. Relax and get familiar
with some potential real estate experiences/education.
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| Put your work on paper..for you and your clients. Excellent Real Estate Pricing Software CLICK |
Click for PRIVATE MONEY STRUCTURE VIDEO 2
Click Learn about Commission Affiliate Sales Program
First. understand how the real estate agent benefits and
makes money using a home trade in program. Once you
get your program off and running you will have set yourself
up and distinguished yourself from the rest of the trade.
Word of mouth promotion will carry you across your
sales territory bringing you top notch prospects, loyal
and eager to work with you because you have a solution
to their problem.
Right up front think of the traffic and clients you will
attract to your "open house" when you offer to take
their house "in trade". They can be serious about
shopping, they will no longer be locked out until they
sell their house. They are going to drop by your
open house just to see what you have to offer.
{These folks thinking about how to get into another home are
going to drive by your open house and think we're here we
might as well go in and check it out.}
"Two birds with one stone" First coming to the open
house not just a BUYER but one with a house to
TRADE/SELL. Moving UP or DOWN...you probably
have a qualified prospect. a home owner at that.
Better than the wishful thinker using up your time.
Think how much better time spent on an open house!
Make an appointment--RIGHT NOW--on the phone or
at your Open House. If your prospect has a house to
trade you need to let them know their financial status
and the details of how a trade in program will benefit
them.
Let your prospect know you are a professional,
you will need to work up a "Competitive Market
Analysis" for them on their trade in. You are going
to need to get a current estimate of their home value.
In order to advise them of a market overview and help
them with an understanding what comparable homes
are selling for in their area you need to inspect their
home. Make your appointment right now, they are
obviously interested in moving forward now. Never
allow your prospects a cooling off period!
As you inspect their home this will be a great time to
prepare them for any repairs or improvements they
should consider both to speed up the sales process
and obtain the maximum sales price.
Your clients are also going to make some tough choices.
No beating around the bush you need to present them
the costs of selling their home if they were to put it on the
market with you or any other agent.
You need to work up an estimate of the cost of selling
their home, how much cash they will receive after
the close of the sale of their home.
In order to give then an accurate figure on the net
proceeds selling on the open market you will need
the information on their current mortgage.
Jackpot, now you can estimate their equity and
learn the best way to advise them ways to proceed.
This is going to allow you to have an idea of what is the
best way to service this prospect.
A large equity provides them with a no fuss easy
trade in and a quick way to purchase their new home.
However, you may have a good prospect for a listing.
Giving them the most cash to use from the equity from
the sale of their home in order to purchase another.
Estimating a down payment and the closing costs of
of what they are seeking in new home, do you have a
qualified buyer?
In fact you have all the information on their home, and
you have given them an idea of the proceeds if they
would sell their home. You should also have given them
a look at the extra costs of using the trade in program.
It's a excellent time to review the benefits to them to
list their home and have it on the market while they
shop with you for their next home.
A strong sales effort is called for right now, it gets them
under contract to you and really benefits them should
their property sell while they are still shopping for a
home.
{This will be a test, are you worthy of using the title,
SALESMAN?}
Right now you have before you quite a picture. By
offering a trade in program, you have opened the door
to a listing commission and a qualified buyer to
concentrate your sales efforts. On the other hand you
can release a tire kicker for some other less prepared
sales agent if you determine they are not a good prospect.
BUT WAIT! Did you think to ask them if perhaps Aunt
Mary left them some extra money to use to purchase
their next home? Maybe they have more than just their
equity to purchase their next home.
I have seen this many times. Mother or Dad have sold
their home and getting down to it that is the reason they
are looking to buy a larger home.
Their aging parents are planning on living with them.
The parents are going to help with buying another place.
What a great opportunity for you...a listing/sales commission
and a second commission to boot.
Wow! Cover all bases before you move forward!
Doesn't a home trade in program sound even better now?
Agents having the opportunity to advertise a trade in
program have a fantastic prospecting tool!
"you can't tell a book by its cover". Move over and let me
relate a story before we move on to setting up your personal
home trade in program. Old warriors always have a tale to
tell.
Many years ago when I was a real estate agent myself I was
sitting on an open house. It was a low priced home in a
decent but lower priced neighborhood. Looking out the
window for my next visitor, up drives a beat up well used
car with Mom, Dad and two young kids.
I pictured a low down payment barely able to qualify FHA
buyer...and proceeded to allow them the run of the house as
they inspected it. In a very short time our customer says,
alright we want to buy the house.
Nervously I start writing the Earnest Money Receipt and
Purchase Agreement. I explain the offer and valuable
consideration to them and fill out a "note" as earnest money
in the amount of a thousand dollars.
I ask him how he wants to pay for the house. SHOCK! He
says it will be cash...Ok, I'm thinking, what else?
Almost in disbelieve I write all cash sale and fill in the
Purchase Agreement for full price, $10,750. {Remember
I said, years ago. When the minimum wage was $1.25 an
hour.} They signed the agreement and I explained I will be
contacting them as soon as the owners have signed and
accepted their offer to purchase.
My open house was scheduled from 2-5p, The owners
returned shortly before 5p which was fortunate for me
because I could get the full price acceptance signed
before I closed up my open house. Speaking of lucky...
get this! Agents will often circulate around a newly
listed property to expose the home for sale and enlist
the neighbor's cooperation in finding a buyer.
Properly holding an "Open House" isn't just arriving a
few minutes before the scheduled open, putting up a
a sign or two and proceeding to kick the owners out
for a couple hours. At that rate sitting around waiting
for someone to come is all that will happen. You'll be
lucky to have a couple neighbors dropping in to see
what is happening.
Many times someone in the neighborhood will have a
family member, friend or work companion looking for a
home and they can lead to a buyer. Circulating
around a newly listed property dropping off a few
business cards will pay big dividends in sales leads
and future listings.
The neighborhood will be watching for that "SOLD"
sign. If you have worked it right maybe your next listing
in that area. When you visited the area around your
listing, dropped off your business cards, people
generally will hold onto your card for awhile.
Plus the time spent may uncover some hidden prospects.
Like the folks who are renting a few doors away looking
for a home to buy for themselves.
In this case the listing wasn't even mine. It was
another salesperson in the office, who convinced me
that it was a "good buy" and a wonderful price range
to pick up some prospects.
Luck calls again! One of the things I would do before
an open house was go out to the house and put up my
"A Frame" Open House Sign usually by the Friday before.
"This home open 2-5p Sunday."
My open house buyers had a friend in the neighborhood
who told them about the house. They had been by and
looked it over prior to my Sunday open house date.
Had I not dropped by Friday afternoon to put up my
"to be open Sunday sign", they could have called the
office number on the for sale sign and another sales
person would have had my cash buyer.
Later I realized why my sale was so easy at the open
house. The buyers had been by several times...
discussed the property, neighborhood, schools and
had already decided to buy.
Old fashioned, but open houses do work. However,
there are tricks for better results. Take a little time
and prepare the neighbors for the open house.
Back to setting up your personal home trade in program.
Earlier on your inspection you worked up an estimate
of seller's costs. You have explained selling and the
various costs in selling. The seller is aware and
understands all of that.
That is important because in order to effect the trade,
where we actually cash out the seller those costs are
still going to be there and are their responsibility.
Trading in their house frees them from the property
providing them the money to move on in the position of
immediately buying the next home.
Using the trade in program they will be able to buy
putting themselves in a more favorable position to
negotiate the purchase price of their next home.
There would not be a contingency of needing to sell
their property in order to buy.
They are ready to go and provided you have had
them work with a lender for a "pre-approved" mortgage,
they will be setting in the drivers seat the same as
a "CASH BUYER".
Now here comes the hook, in order for you to carry
the trade in home for the three to four months it might
take to market the property, qualify a buyer and close a
sale you will need a 3-4% trade in fee.
Once they find a home, the agent has to carry their
trade in property probably vacant and has the need
of a "number of dollars" to protect themselves from
losses and cover carrying costs.
So far you have covered the cost of selling the
trade in property, figured paying commissions,
sales costs and closing costs...handling fees...but
other than a couple commissions. {Listing and Sales
fees on the two homes.}
What's in it for you and your extra risk?
Another fee...a **trade in completion fee paid
by the seller of the home they are buying. Paid
directly to you from the sales proceeds at closing.
The seller will have the normal commission and
closing cost with the addition of one additional
fee "trade in completion fee".
**Same as asking the seller to pay some of the
buyers loan and closing costs.
This end fee of 3-4% of the new sellers property
will cement the transaction together and brings
about the final profit to you.
Of course in lieu of a trade in completion fee the
seller could always accept the buyers home as
a trade themselves. Rarely is that going to work
but it is an option and may soften the fee they
are asked to pay in addition to their regular
sales and closing costs..
Early on in this article the headline offered a promise
of opening the door to a secure retirement. Not all
of your trade in properties must be marketed, some
can be taken in trade and held as rental property by
you.
Those properties I held furnished me a nice income
and allowed me to sell my real estate company.
Handle your trade in properties the same way you
would any other investment property. Fix up,
rehabilitate, refinance and hold for long term
investment gains. Sweet retirement!
Whoops, I know at the end of these long-winded
online presentations they always offer to mentor/
coach you on your first couple trade in transactions
for a FEE of course.
Not this time.
If I haven't done a good job of sending you on
your way to a real estate home trade in program
and you have questions...E-Mail me. In the
subject line put: HOME TRADE IN PROGRAM
I will do what I can to answer your questions.
OH PS.. The cash buyer in the true story in this
posting was to drop by my office to redeem the
$1000 earnest money note...so we could go to
escrow and close....he showed up with a cashier's
check for $10,750.00! Sweet commission time.
Real Estate Reading:
Investing-Financial Leverage Using other people's Funds
Real Estate Investing 1 Your solution to Financial Independence
Real Estate Investing 2 Marketing-Boot Camp-Finding the Property
WHY REAL ESTATE Road to Wealth
AUTHOR'S DISCLOSURE
Finding Real Estate
Investment Funds click here
All material herein © '2007-2018 "Harvey Akeson Tucson Calling" Reprint right by permission: harveyakeson@yahoo.com
