COACHING MODULES
LISTING
NEGOTIATION
OBJECTIVE
At the end of this training session, you will be aware of the main principles and roles
of negotiation.
NEGOTIATION PHASE
This is the period between the first offer being made and agreeing a sale. It is when
you are trying to influence another person or group, in order to get something you
want and which they have some control over. You do this by bargaining with the
other. The period between agreeing a sale and exchange of contracts may involve
some re-negotiation.
WHAT IS NEGOTIATION?
Negotiation is a compromise between two or more parties. All negotiations end in
one of three ways:1. Lose/Lose
Neither party having gained anything.
2. Win/Lose
Can be attractive to the winning side, often an aggressive
person. Normally leads to a breakdown of trust and therefore
further negotiations could be difficult.
3. Win/Win
This ensures that both sides have gained something and
reached common ground. For us, this allows us to present our
other services and products.
FOUR STAGES OF NEGOTIATION
1. Prepare
Preparation
Assess your objectives. Consider how many ways these can be achieved. Decide
which objectives are fixed, which are variable and what the scope is for variation.
Consider the possible outcomes in the light of your long-term goals.
Planning
Plan your approach and the sequence of issues you wish to raise. Plan to raise the
less contentious issues first. Assess the objectives of the other party. Identify
linkages and areas of common ground. Anticipate the other party’s likely response to
each of your issues and prepare answers.
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COACHING MODULES
LISTING
2. Discuss
Exchange messages
Set the climate for the meeting by exchanging messages to establish trust and
confidence.
Introduction
Be sociable and establish a tension-free atmosphere. Confirm both parties’ broad
objectives and feelings. Listen carefully for any surprises and how they affect your
plan.
Background
Review proceedings leading up to the meeting and iron out any differences in ‘facts’.
3. Propose
Definition of issues
Specify, in detail, what you wish to resolve. Do this in a way which doesn’t ‘box in’
the other party, but don’t appear weak. Link issues, where appropriate, to the other
parties’ objectives.
4. Bargain
Negotiate the issue
Start by asking for what you want, but accept that goals may have to be modified.
Link compromises to other objectives and don’t make concessions. Remember the
phrase, “If……then…..
Summaries
Confirm understanding by summarising points during the discussion, particularly
where complex issues are involved.
Settlement
Agree on what you have agreed. Unless agreement is fully understood by both
parties, the settlement may not last.
LAWS OF NEGOTIATION
Understand aspiration levels
- Realise the seller is trying to achieve the highest price
- Realise the buyer is trying to achieve the lowest price
- When the seller believes you are doing all you possibly can to achieve his
price he will lower his aspiration levels
- When the buyer thinks he has reached to lowest achievable price
- Make each person think they have reached the bottom line
- Aspirations affect price and concessions
- The person who aims highest gains the most
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COACHING MODULES
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Defend the price
- Don’t be a price crumbler
- Provided the price is reasonable you must defend it
- When you move, be seen to ‘bleed’
- Justify a sensible deal
Don’t give concessions, trade them
- Don’t move unless you both move
- Make them work for it
- If one concedes, the other will try again
- Always ask for something in return
- Never split the difference
- Don’t give things away to gain favour
Look for negotiable variables
- Consider things that can be included or excluded from the sale in negotiation
- Make a list of them
Always look at value
- Raise the cost of what the seller is offering
- Lower the value of what the buyer is offering
Be mean!
- Don’t agree too quickly
- When you’re about to say ‘yes’, say ‘no’ one more time
- Think of what you’re giving away – then try half
- Put a greater value on the ‘hard to get’ things
Handle deadlock
Appeal to both parties over time and effort invested
Check deadlock is not being used to gain capitulation
Ask if there are any other issues
Use ‘sweat’ letters
Arrange a meeting, ‘eyeball-to-eyeball’
Avoid conflict
Ensure all parties fully understand the situation
Do not lose your cool
Keep control
Calm down any aggression
Keep your sense of humour – but don’t misplace it
Right person, right time
Negotiate with the decision maker
Be patient – people need time to adjust to compromises
Someone in a rush often concedes
Plant the seed and let it grow
Use silence!
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COACHING MODULES
LISTING
NEGOTIATOR PLOYS
Ploy
Countermeasure
“I like it but I can’t afford it”
 Test it by having an alternative suggestion
 If they go for other suggestion it’s not a ploy
 Reduce the package with the price
“I don’t think it’s worth the
money”
 More aggressive than above
 Trade concessions – “If you can……I can…..”
 Is flexibility built into the price?
Outrageous offers
 Don’t react, smile
 Defend the price
 Use silence
“Take it or leave it”
 Keep talking – communication gives you a chance
 Offer minor concessions
 Allow person to save face if backing down
“Is the price negotiable?”
 “What is your budget?”
 “What are you considering?”
“What is the lowest you would
take?”
 Don’t fall for it – appeal to their better nature
 “If I was in your position……”
Inventing, or producing
competition
 No two products are ever the same
 If they’re talking, they want yours
 Recognise the tactic and defend the price
Sweat letters
 Write and say you are refusing their terms
 WAIT!
Eyeball-to-eyeball
 Formal venue, where you meet across a table
 Speak first, then shut up
 If two other parties, don’t get involved
Silence
 Often the best tactic of all
 Do not speak until the silence is broken
NEGOTIATOR’S CHECKLIST
Techniques for making proposals
 Pre-emptive offers ruin long-term relationships
 Goodwill conceding toughens the other person’s responses
 ONO weakens your bargaining position
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COACHING MODULES
LISTING
 Don’t give discounts to people who need your business
 The negotiator’s most useful two-letter word is ‘If’
 There is no such thing as a fixed price tag
 Packaging is the best defence to a price challenge
 Don’t change the price, change the package
Responding to proposals
 The worst thing you can do is to accept the first offer
 Don’t just state a grievance, negotiate a remedy
 In conceding, be more like scrooge than St. Francis
 Never concede anything without getting something in exchange
 Nothing, absolutely nothing, is given away free
 You can’t afford to “split the difference”
 If they want something from you, it ought to cost them
 How do you educate your opponents? Put a price on their demands
 If you haven’t got a principle, invent one
Dealing with the psychological effect
 If you believe they have the power, they have!
 If you believe you have the power, you have!
 Prestige offices are there to intimidate
 If they keep you waiting, use their phones
 Threats and sanctions are commonplace in negotiation
 Threats lead to irrational responses, as people don’t like being threatened
 Threats must be credible, but are always likely to damage negotiations
Behaviour for negotiators
 Tempers are never calmed by being tested
 Tough negotiators open high, stick close to it and make a few, small concessions
 Weak negotiators open low, move a long way and make large concessions
 Deadlock – tough negotiators are not afraid of it, weak ones are
 Amateurs are given to clumsy threats
General views on negotiating
 Negotiating is about trading, not conceding
 Negotiating involves both sides in a voluntary consent to a joint decision
 Both sides have a veto
Negotiators are dealers, not shufflers – which are you?
SUMMARY OF LEARNING POINTS
 Negotiation happens between receiving the first offer and agreeing the sale
 Negotiation is a compromise
 A win/win situation is when both parties believe they have reached the other’s
bottom line
 Understand aspiration levels and work on them
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COACHING MODULES
LISTING
 The seller must believe you are doing everything possible
 Defend the price
 Trade concessions
 Look for variables
 Be mean
 Handle deadlock
 Keep your sense of humour
Remember – Be honest and truthful and keep within the law.
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
a)
What is a negotiation?
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COACHING MODULES
LISTING
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b)
What are the three possible outcomes?
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c)
Give an example of the ‘If and Then’ technique.
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d)
Name four “Laws” of negotiation.
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COACHING MODULES
LISTING
RE-NEGOTIATION
OBJECTIVE
At the end of this training session you will be aware of some of the best methods to
achieve successful re-negotiation.
COMMON REASONS WHY WE NEED TO RE-NEGOTIATE
The period between agreeing a sale and exchange of contracts may involve renegotiation when the buyer or seller becomes dissatisfied with the original
agreement.
 Poor survey
 Down valuation
 Retention
 Forced negotiation at exchange
 Insufficient salary references
 Late comparison to other properties
 Another buyer / offer
 Fixture and fittings
REMEMBER YOUR NEGOTIATION SKILLS
It is important to remember all the skills discussed in the “Negotiation” module.
DON’T FORGET YOUR CLIENT
It must always be uppermost in your mind that you are acting in the best interests of
the customer paying your commission.
RE-NEGOTIATION RULES
1. Establish the exact problem
2. Do not agree with the buyer (it will jeopardise your negotiation)
3. Ask the customer how they wish to resolve the problem
4. Re-establish their motivation for buying or selling
5. Discuss the situation with your client (ensure they realise you are on their side)
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COACHING MODULES
LISTING
6. Talk to the buyer – negotiate if necessary – explain your responsibilities to your
client – the seller
APPROACH
Do empathise with the customer to demonstrate you are not confrontational. Having
done so, here are some examples of what to say in different situations:Survey and Valuation
 Poor Survey (work amounting to £3,000) – “Firstly Mrs Green, I’ll need to see a
copy of the survey report and establish the exact problem. Although I think it is
highly unlikely that my client will be able to reduce the agreed price, I need to have
all the information to help them with the decision. We may have to obtain some
quotes to ensure the estimates are covered.”
Leave the door open e.g: “then we’ll see what my client thinks.”
 Down Valuation – “Mrs Green, it is important to realise that this is just another
opinion. What you must consider is that the property is still worth the same to you.
You must also consider the fact that the surveyor is valuing to protect the building
society’s money in a poor market and may, therefore, not put a true market value
on the property.”
 Retention (£2,000 held by building society) – “Firstly Mrs Green, what does this
actually mean to your purchase?”
“I cannot go ahead, I need a revaluation”
“Before I go to the rest of the people in the chain, can you tell me what you’re able
to contribute?”
Forced negotiation at exchange
In this instance it may be preferable to concede a little in order to effect an
immediate exchange. Do not seem over eager to do this.
Suggest that, as there had been other people viewing or wanting to view the
property when the offer was made, you would like to explore those possibilities
before the owner makes a decision.
Insufficient salary reference
This may be dealt with by the financial consultant and may occur even though
some qualification had been done. The two options are:
a)
To look at alternative finance arrangements to cater for the shortfall
b)
Concede on a price reduction in order to proceed with the sale
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COACHING MODULES
LISTING
Late comparison to other properties
This is, understandably a ploy, as no two properties are the same and if it was a
better deal, ask yourself why they would be talking to you. The only thing to
concentrate on is the difference in price. Remember to sell the benefits.
Another buyer and/or offer
Another buyer makes an offer on a property which you already have a sale agreed
on.
“Mrs Green, I am phoning you to inform you that we have another offer which we
have had to put to the owner of the property you are buying. I thought it important
you should know this has happened in order to give some thought, should it be
necessary, to reconsidering your offer.”
It is a good idea to remind them that in estate agency law we must submit every
offer.
Fixtures and fittings
The buyer now wants carpets and curtains included in the price.
“I understand, Mrs Green, that you wish the owner to include carpets and curtains
within the original asking price. As you know, that was not their intention and
although I will speak to them, it would certainly be an idea for you to have a price in
mind that you may wish to pay for them.”
Trade – don’t give
SUMMARY OF LEARNING
 It is not unusual to have to re-negotiate
 Remember you act for the seller
 Stick to the rules
 Trade, don’t give away
 Learn from the approaches suggested
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COACHING MODULES
LISTING
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
a)
List four 4 reasons why you may need to re-negotiate
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b)
Give three rules for re-negotiation
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c)
Give an example of how you might handle a “down valuation”
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d)
Give an example of what you might say when the buyer wants fixtures and
fittings included at a later stage
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COACHING MODULES
LISTING
TAKING AN OFFER AND SALE AGREED
OBJECTIVE
At the end of this training session, you will be able to use and complete an offer form
and record ‘offer and chain’ information accurately and fully.
An offer form enables you to:
-
Assess the situation of the buyer
Achieve the best offer
Comply with legal requirements
Record and control the chain
Achieve point of sale financial services
Obtain valuation/instruction referrals
Record offers accurately
USING AN OFFER FORM
Buyer
Name (with initials), address (with postcode) and telephone numbers
Position e.g. first time buyer, house to sell, cash
Personal interest (if any)
Solicitor’s details
Property
Market price
Offer price
)
Date of offer )
or offers, if more than one
Time of offer )
Status for financial services
Offer
Conditions of offer
Inclusions
Timescale
Brief chain details
Chain sheet
Completed to closed ends top and bottom
All buyers/sellers, agents and solicitors
All contact names and numbers
Ensure that when taking an offer, all initials and postcodes are included and
confirmed. Also include any important information such as divorce, probate and the
relevant lines of communication.
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COACHING MODULES
LISTING
GENERAL
 An offer form should be completed to process all offers. (You are legally obliged to
confirm all offers in writing within 24 hours.)
 Complete/update the chain form as soon as information is obtained
 The chain form makes an excellent sales progression tool
 The form acts as a reminder to confirm all offers in writing
SALE AGREED
Once the sale has been agreed, you will need to complete a sales record with all
details required under each heading.
The “Memorandum of Sale” must also be completed. All information will be found on
an offer form. This must be approved by the branch manager.
The following information should be entered in full. Avoid using jargon or shorthand
comments:Vacant Possession
We understand from the seller that the property will complete with vacant
possession.
Financial Arrangements
We believe that the buyer has their mortgage arranged in principle with the xx
building society, via xx financial consultant.
Proposed Timescale
We would anticipate an exchange of contracts on or before xx days from today’s
date. Or we understand from both parties that they have agreed a completion date of
xx due to an employment start date, subject to contract and survey.
Buyer and Seller Position
We have confirmed that the buyer is a first time buyer and that the seller is
purchasing a vacant property.
Fixture and Fittings
We confirm the carpets, where fitted, are included in the sale price. All other items
are to be confirmed via the contract.
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COACHING MODULES
LISTING
Any Other Comments
To be used for important information. Caution to be used as these comments will
appear on the memorandum of sale e.g: holiday dates, sitting tenants, tenants
renting etc.
OTHER QUESTIONS
At the same time, the following questions need to be answered:
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Is the property to remain on the market?
Is the property to be taken off the market?
Do you want to continue sending property details to the buyer?
Board movement – change to ‘Sale Agreed’
SUMMARY OF LEARNING POINTS
 Use and complete an offer form
 Place all information, in full
 Remember, information goes onto the “Memorandum of Sale”
 More information helps negotiate a sale to completion
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COACHING MODULES
LISTING
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
a)
What information about the property is recorded when completing an offer
form?
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b)
Which of our other services can be offered to our customers at this point?
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c)
What information is recorded on the “Memorandum of Sale”?
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d)
What other questions should you consider once the sale has been agreed?
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COACHING MODULES
LISTING
CHAIN CHECKING
OBJECTION
At the end of this training session, you will be able to establish a clear picture of the
status of the chain and understand the importance of using good questioning to elicit
information.
WHAT IS CHAIN CHECKING?
 Obtaining from the buyer, accurate details of their own ability to complete the
purchase
 Obtaining information from other professional people e.g: estate agents, solicitors
etc., on any related house sales either below or above your sale in the chain
 Verification of all information for accuracy before forwarding to the co-ordinator
 Giving information to other professionals, to allow them to agree sales, in order for
you to proceed to completion
 Passing information to your seller to give them confidence to agree the sale
WHY DO YOU NEED TO CHECK CHAINS?
 To identify any potential weakness
 To enhance the value and esteem of your services to your client, by keeping your
client fully informed
 To save time for the co-ordinator by avoiding problems later on in the sale
 To enable the co-ordinator to find and help solve problems during the
progress of the sale
WHAT DO YOU NEED TO FIND OUT?
For each property involved in the chain you need to find out and record accurately:Property address
Price
Selling agent, telephone number and contact name
Seller
Buyer
Solicitors
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COACHING MODULES
LISTING
HOW DO YOU CHECK THE CHAIN?
The process is as follows: Starting with the buyer for your client’s property, find out the name of the estate
agent acting for the buyer. Telephone the estate agent and check:
a)
b)
c)
d)
e)
f)
g)
that the property is sold subject to contract and price
what problems, if any, are anticipated
that the solicitor is the same solicitor that the buyer has instructed in the
purchase
the name of the buyer for your buyer’s property
the name of the buyer’s solicitor
the name of that buyer’s estate agent, telephone number and contact name
estimated completion date
 Telephone the estate agency acting for the buyer of your buyer’s property and
repeat the process
 Follow down the chain speaking to each other estate agent in turn, until you find
the first link in the chain
 If your client has already agreed to buy a property, repeat the process up the chain
speaking to each agent, in turn, until you find the top
 Show top and bottom of chain
PROBLEMS WITH AGENTS
 You sometimes find an agent who either can’t or won’t tell you what is happening
 If this happens, speak to the solicitor acting on the sale of the property concerned.
Explain exactly why you are ringing. Be helpful and positive and fully explain your
co-ordinator’s involvement
 If the solicitor won’t speak to you either, you need to speak to the seller of the
house concerned, to find out who the buyer is and to check the chain. You must
be very careful and tactful when you do this. If you have any doubt, speak to your
line manager or your co-ordinator
PRIVATE SALES
 If there is a private sale in the chain, speak to the solicitor. If the solicitor won’t cooperate, speak to the seller of the property concerned, as above
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COACHING MODULES
LISTING
A TYPICAL CHAIN SHOWING YOUR CONTACT ROUTE THROUGH IT
Property address
Seller
3
Seller
2
Seller
Agent
Solicitor
Bernard Matthews
0056 569742
Earlsfields
0978 56478
Tim Round
Earlsfields
01264 45986
Jayne Smith
Smith & Jones
0587 56845
Jeff Young
Leggit & Co
0121 256 3695
Susan Wright
Fox & Co
0056 369856
Top of end
1 Oak Dene Farm
Fall through Dell
Mr & Miss Hen
Seller
1
15 Miserable Ave
Register Hamlet
Mr & Mrs
Mortimer
Offer
110 High Street
Viewing Village
Mr E Go
Buyer
1
Tower View
Neg Street
Miss Onion
Buyer
2
16 Apple Grove
Sales Town
Mr & Mrs
Chapel
Buyer
3
First Time Buyer
Miss Green
Russel Cook & Potter
01356 56985
Brown & Patterson
01264 78952
John Patterson
Smith Klein & Wright
0187 675 5647
Peter Klein
Robinson Solicitors
0456 23689
Anne Robinson
Tarrant & Co
0236 56956
WHEN SHOULD YOU CHECK THE CHAIN?
 As soon as you can, ideally before putting forward the offer
 If you haven’t time before contacting the seller with the offer, check the chain as
soon as you can afterwards and ensure the seller is aware you have not
checked the chain yet
 Report back to the seller with all the details once you have checked the chain
SUMMARY OF LEARNING POINTS
 You need to know the full details of the chain to know the strength of the offer and
to progress the sale
 Your route through the chain is, in order of preference:- Through the agent
- Through the solicitors
- Through the buyers and sellers
 Be very cautious when speaking to buyers and sellers
 Check the chain as soon as you can
 Report back to your client
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
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COACHING MODULES
a)
LISTING
Why is it so important to chain check before the sale agreed is sent?
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b)
What information do you need to collect about each property?
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c)
What information do you need to record about the selling agents in each link?
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d)
What must you remember to inform your sellers about when you put the offer
forward?
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COACHING MODULES
LISTING
SALES PROGRESSING
OBJECTIVE
At the end of this training session you will be able to:1.
2.
3.
4.
Obtain information
Understand the implications of that information
Take necessary action
Report back to all parties concerned through all stages
WHAT IS SALES PROGRESSING?
 Identifying the current position of the sale, from agreeing the sale to exchange of
contracts taking place
 Checking the details of the legal process
 Checking the progress of any mortgage arrangements being made
 Recognising potential problem areas and taking the necessary action to produce
suitable solutions
 An opportunity to provide further service to your seller and buyer
WHY DO YOU NEED TO PROGRESS SALES?
 To keep everyone informed and reduce anxiety
 To speed up the sales process
 To reduce the chance of the sale falling through
 To ensure you receive the agreed amount of commission, by eliminating
complaints of poor service
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COACHING MODULES
LISTING
SALES PROGRESS
Item
Action
Letters of sales to
all parties
Check that they have been sent to buyer, seller & both sets of solicitors.
Confirm documentation is completed and on file.
Clients instructions
to solicitors
Check solicitors have received details and have instructions to act on
behalf of their clients. If not, telephone buyer & seller to encourage them
to contact their solicitors. Introduce yourself to all parties
Has the mortgage required been applied for & valuation fee paid?
- Who is it with?
IF YES – Has survey/valuation been instructed?
Introduce financial services (if not done already)
IF NO - Investigate further
When will it be carried out? Who will be doing it? What are access
arrangements? What type of inspection will be made?
1) Valuation
2) House/flat buyers report
3) Structural survey
Inform seller/buyer
Check that seller’s solicitor has sent contract to buyer’s solicitor
IF NO - why not? Report back to seller
- or assist if possible
IF YES – contact buyer’s solicitor
Have they received the Draft Contract and issued their P.E..s? If
Protocol is being used, have they received the client information form,
the Land Registry and Local Search details? Will other enquiries be
raised i.e. boundary disputes?
Has it been applied for?
When are the answers expected?
Has it been carried out, and the report received by building society?
What was the valuation & get facts?
What were the defects & get facts?
Does the report affect the mortgage?
Will there be any retentions? If so get estimates for all work required
before entering into new negotiations. Warn seller of report contents
(with buyer’s permission). If possible, get copy of report. If down valued,
consider appeal (get comparables)
Ascertain reason, re-negotiate as necessary
Is it suitable? Are there any special conditions not mentioned in the
survey (i.e. completion by a specific date)?
Does the borrower understand the offer letter?
Get financial consultant to explain such items as accrued interest and
mortgage indemnity premiums
Has building society issued their solicitors instructions?
Is deposit guarantee scheme being used?
Explain to buyer a 10% deposit is normally required on exchange of
contracts, but this may be reduced with the seller’s acceptance
Check with solicitors what has been agreed, and when exchange &
completion are aimed for
Maintain contact calls to solicitors for weekly updates. Pass information
to buyer and seller. Continue work on matters outstanding from
previous progress checks, including continued chain checks
Just before target date, check if exchange will take place, confirm
commission payment details. How much and who is paying? Contact
financial consultant to see if insurance policies will be put into force at
exchange. Arrange invoice, confirm access details, for completion e.g:
where will keys be available. Inform buyer and seller. Send moving
checklist (if applicable). Obtain sellers forwarding address.
Be prepared – ensure all parties know that keys cannot be released
without permission from the seller’s solicitor. Completion is not always
12.00noon on Friday! What time is completion anticipated? Keep file
current until receipt of cheque.
Mortgage
Survey/Valuation
Draft contract
Preliminary
enquiries
Local Search
Land Registry
Survey / Valuation
Mortgage offer
Deposit
Prior to exchange
of contracts
Exchange of
contracts
On completion
- 21 -
When
Within in 24
hours of sale
being agreed
Within in 48
hours of above
As above
One week after
sale agreed
As above
7 – 10 days
7 – 10 days
2 weeks
2 – 3 weeks
2 – 4 weeks
Weekly
(Earlier if
necessary)
4-8 weeks
COACHING MODULES
LISTING
SUMMARY OF LEARNING POINTS
 There is little point in agreeing sales if you do not nurse them through to
completion
 Obtain accurate and comprehensive information at as many points as possible
 Have a good system for:-
Recording information clearly and accurately
Informing all concerned
Bringing the file out for checking on a regular and frequent basis
 Many different problems can, and will, occur
 You will not always have the answers – seek advice
!! Engage brain before mouth!!
- 22 -
COACHING MODULES
LISTING
SALES CHECKLIST
Sales Negotiator:……………………………………..…….
Date:…………………….
Address:………………………………………………………
Postcode:………………
Memorandum of Sale
Is the purchase price correct?
Are solicitors details correct?
Are sellers details correct?
Are buyers details correct?
Is agency agreement on file?
Timescale (in weeks)
Other interested parties?
Finance (Buyer)
Does buyer require a mortgage?
If yes, is he using your consultant?
If not, who? (details)
If cash, what is source?
Finance (Seller)
Does seller require a mortgage?
If yes, is he using your consultant?
If not, who? (details)
If cash, what is source?
Chain Details
Is buyer dependent on sale?
If yes, is chain sheet complete?
With agent/solicitor details?
Has seller found? (if applicable)
If yes, is chain above complete?
If yes, is chain sheet complete?
With agent/solicitor details?
Comments / Info
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
No
Yes
Yes
No
No
Comments / Info
Comments / Info
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
Comments / Info
Signed:……………………………………………………………………….…(Negotiator)
Signed:……………………………………………………………………………(Manager)
Date:………………………………….
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
- 23 -
COACHING MODULES
a)
LISTING
Describe three parts of sales progression.
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
b)
Give three reasons why we need to progress sales.
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
c)
In what timescale might you expect the following to be carried out?
Memorandum of Sale:………………………………………………………………...
Preliminary Enquiries:…………………………………………………………………
Local Search:…………………………………………………………………………..
Mortgage Offer:………………………………………………………………………..
Exchange of Contracts:……………………………………………………………….
- 24 -
COACHING MODULES
LISTING
SALES PROGRESSING
OBJECTIVE
At the end of this training session you will be able to:5.
6.
7.
8.
Obtain information
Understand the implications of that information
Take necessary action
Report back to all parties concerned through all stages
WHAT IS SALES PROGRESSING?
 Identifying the current position of the sale, from agreeing the sale to exchange of
contracts taking place
 Checking the details of the legal process
 Checking the progress of any mortgage arrangements being made
 Recognising potential problem areas and taking the necessary action to produce
suitable solutions
 An opportunity to provide further service to your seller and buyer
WHY DO YOU NEED TO PROGRESS SALES?
 To keep everyone informed and reduce anxiety
 To speed up the sales process
 To reduce the chance of the sale falling through
 To ensure you receive the agreed amount of commission, by eliminating
complaints of poor service
- 25 -
COACHING MODULES
LISTING
SALES PROGRESS
Item
Action
Letters of sales to
all parties
Check that they have been sent to buyer, seller & both sets of solicitors.
Confirm documentation is completed and on file.
Clients instructions
to solicitors
Check solicitors have received details and have instructions to act on
behalf of their clients. If not, telephone buyer & seller to encourage them
to contact their solicitors. Introduce yourself to all parties
Has the mortgage required been applied for & valuation fee paid?
- Who is it with?
IF YES – Has survey/valuation been instructed?
Introduce financial services (if not done already)
IF NO - Investigate further
When will it be carried out? Who will be doing it? What are access
arrangements? What type of inspection will be made?
1) Valuation
2) House/flat buyers report
3) Structural survey
Inform seller/buyer
Check that seller’s solicitor has sent contract to buyer’s solicitor
IF NO - why not? Report back to seller
- or assist if possible
IF YES – contact buyer’s solicitor
Have they received the Draft Contract and issued their P.E..s? If
Protocol is being used, have they received the client information form,
the Land Registry and Local Search details? Will other enquiries be
raised i.e. boundary disputes?
Has it been applied for?
When are the answers expected?
Has it been carried out, and the report received by building society?
What was the valuation & get facts?
What were the defects & get facts?
Does the report affect the mortgage?
Will there be any retentions? If so get estimates for all work required
before entering into new negotiations. Warn seller of report contents
(with buyer’s permission). If possible, get copy of report. If down valued,
consider appeal (get comparables)
Ascertain reason, re-negotiate as necessary
Is it suitable? Are there any special conditions not mentioned in the
survey (i.e. completion by a specific date)?
Does the borrower understand the offer letter?
Get financial consultant to explain such items as accrued interest and
mortgage indemnity premiums
Has building society issued their solicitors instructions?
Is deposit guarantee scheme being used?
Explain to buyer a 10% deposit is normally required on exchange of
contracts, but this may be reduced with the seller’s acceptance
Check with solicitors what has been agreed, and when exchange &
completion are aimed for
Maintain contact calls to solicitors for weekly updates. Pass information
to buyer and seller. Continue work on matters outstanding from
previous progress checks, including continued chain checks
Just before target date, check if exchange will take place, confirm
commission payment details. How much and who is paying? Contact
financial consultant to see if insurance policies will be put into force at
exchange. Arrange invoice, confirm access details, for completion e.g:
where will keys be available. Inform buyer and seller. Send moving
checklist (if applicable). Obtain sellers forwarding address.
Be prepared – ensure all parties know that keys cannot be released
without permission from the seller’s solicitor. Completion is not always
12.00noon on Friday! What time is completion anticipated? Keep file
Mortgage
Survey/Valuation
Draft contract
Preliminary
enquiries
Local Search
Land Registry
Survey / Valuation
Mortgage offer
Deposit
Prior to exchange
of contracts
Exchange of
contracts
On completion
- 26 -
When
Within in 24
hours of sale
being agreed
Within in 48
hours of above
As above
One week after
sale agreed
As above
7 – 10 days
7 – 10 days
2 weeks
2 – 3 weeks
2 – 4 weeks
Weekly
(Earlier if
necessary)
4-8 weeks
COACHING MODULES
LISTING
current until receipt of cheque.
SUMMARY OF LEARNING POINTS
 There is little point in agreeing sales if you do not nurse them through to
completion
 Obtain accurate and comprehensive information at as many points as possible
 Have a good system for:-
Recording information clearly and accurately
Informing all concerned
Bringing the file out for checking on a regular and frequent basis
 Many different problems can, and will, occur
 You will not always have the answers – seek advice
!! Engage brain before mouth!!
- 27 -
COACHING MODULES
LISTING
SALES CHECKLIST
Sales Negotiator:……………………………………..…….
Date:…………………….
Address:………………………………………………………
Postcode:………………
Memorandum of Sale
Is the purchase price correct?
Are solicitors details correct?
Are sellers details correct?
Are buyers details correct?
Is agency agreement on file?
Timescale (in weeks)
Other interested parties?
Finance (Buyer)
Does buyer require a mortgage?
If yes, is he using your consultant?
If not, who? (details)
If cash, what is source?
Finance (Seller)
Does seller require a mortgage?
If yes, is he using your consultant?
If not, who? (details)
If cash, what is source?
Chain Details
Is buyer dependent on sale?
If yes, is chain sheet complete?
With agent/solicitor details?
Has seller found? (if applicable)
If yes, is chain above complete?
If yes, is chain sheet complete?
With agent/solicitor details?
Comments / Info
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
No
Yes
Yes
No
No
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
No
Comments / Info
Comments / Info
Comments / Info
Signed:……………………………………………………………………….…(Negotiator)
Signed:……………………………………………………………………………(Manager)
Date:………………………………….
- 28 -
COACHING MODULES
LISTING
NOW CHECK WHAT YOU HAVE LEARNT SO FAR BY COMPLETING THE
FOLLOWING QUESTIONS
a)
Describe three parts of sales progression.
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
b)
Give three reasons why we need to progress sales.
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
c)
In what timescale might you expect the following to be carried out?
Memorandum of Sale:………………………………………………………………...
Preliminary Enquiries:…………………………………………………………………
Local Search:…………………………………………………………………………..
Mortgage Offer:………………………………………………………………………..
Exchange of Contracts:……………………………………………………………….
- 29 -