¶ Real Estate Scripts and Negotiation Strategies
Hello and welcome to the Real Estate Scripts podcast , the show that helps you know what to say when you're talking to buyers and sellers so that you can close more deals and earn more money . I'm Darren Tunstall , a real estate professional coach and number one bestselling author . Let's get into this .
Before we begin today's episode , I want to clarify some important points . I am a licensed real estate agent and my DRE number is 018-53445 . It's crucial to note that this podcast operates independently of my affiliation with Keller Williams Realty and any realtor associations .
My primary goal with this podcast is to provide you , our listeners , with valuable information , insights and practical tools . As a reminder , the purpose of Scripts and Dialogues is to come , learn , practice and be prepared to fail forward . This is where we make mistakes and help each other out , but we're mostly interested in seeing how we can get better .
First we read through the script word for word and then we go back and put it into our own natural tone , style and phrasing . You won't know what to say until you go through the script . So , with that said , many people will say that's not how I sound , and I totally get it .
That's not how you sound , but that is the reason why we practice every day so that the script becomes you and in your own voice . So read it word for word first , then go back and put it into your own natural tone , style and phrasing , and I think it'll work out All right . Hey , miguel , what's up ?
Morning guys . How's it going ?
Good Doing well , doing well . So today we're talking about . This whole week is about seller objections , all right , and yesterday we did . I don't think you were here . Were you here yesterday ?
Miguel , no , I wasn't here , sorry .
So I'll put in the chat box too , something that you'll want to have as well . But we did the common buyer objections on Monday as well and I can send that over to you .
The other thing is yesterday we did commissions from a net sheet perspective about the commission rates that you charge from a net perspective first , before you get into the contract , and talking about percentages , and it's a much easier conversation many times Now if the question comes up , what does this work out to percentage ? Then you just talk about it .
But I'll throw that script in there . Now , today is all about like let's if they're still objecting to the commission rate , let's talk about you know how this might compare to like a reduction in pay .
You know , naturally , I think , if you're going to be at work and your employer cuts your pay by you know a percentage or a dollar amount , whatever it might be , then you're going to be like what percentage or a dollar amount , whatever it might be ? Then you're going to be like what you know for those who have jobs or part-time jobs .
You would question that , right , I think . I think you would question it , yeah , so we're going to have that discussion from that perspective , and then you know , the other thing is to show or to emphasize your value of service . That's really what we're doing here .
So we're engaging in a conversation with a homeowner who's abjecting to your commission rate and we're going to compare that to maybe them taking a pay cut at work , um , and at the same time , we're going to emphasize your value of service , uh . So in this script , um , you're also in the middle of a conversation .
You might have had that net sheet discussion already . You might have had the discussion about the commission rate or percentage . But now this is them saying well , here's the deal , you know , here's , here's something that I'm thinking about . So you're going to give them an analogy . All right , All right , Miguel , it's you and I .
Sweet .
Yep , all right , so let's get into this script . So we're , we've we've probably just had the discussion . You're in the middle of the presentation and you know you're going to . You know I'm going to eject a little bit up to the commission rate and I'll just go ahead and start it out .
You know , Miguel , look I I appreciate everything but the commission rate and I'll just go ahead and start it out . You know , miguel , look I appreciate everything , but the commission rate is something that I think is a little high . Can you do a little bit better than ?
that ? Yeah , you know I understand that you might have some concerns regarding the commission rate , Darren , and I'd totally be happy to address them . Can I share an analogy to help you understand the importance of the commission and value I provide ?
Yeah , I mean . Please , if you can help me understand it , I'd appreciate that .
Definitely . Well , just picture this . Imagine that you were in a job where you worked hard to achieve successful results . Now suppose your employer approached you and proposed a pay cut . Naturally , you'd question why Do you think so ?
Yeah , I sure would .
Yeah , definitely , and just as you expect a valid reason for a pay cut , I like to explain why the commission rate is set the way it is , and when I represent you in selling your home , I invest significant amount of time , resources excuse me and effort to ensure that you have a successful sale .
By reducing the commission , it would be similar to taking a pay cut and could affect the level of dedication and service from buyer's agents . Now I want to ensure that you receive the best possible outcome for your property , and that requires a fair commission rate to support my commission to your success .
Okay . So I'm curious is there any room for negotiation ?
Yeah , great question . You know I understand your desire for negotiation , darren . Yeah , great question . I understand your desire for negotiation , darren .
However , it's essential to consider the long-term benefits and by setting a fair commission rate , I can focus on marketing your property effectively , reaching a wider audience for potential buyers and negotiating the highest possible sale price . Ultimately , the goal is to maximize your return on investment . Is that right ?
Oh , absolutely . I want to get the most amount of money from my home that I can possible .
Of course , of course , and I'm dedicated to helping you achieve that goal . So let's do the right thing and get your home on the market for sale and I market for 500,000 and I will start marketing your property immediately .
All right , yeah , let's do it .
Perfect , perfect .
I'm going to upload a file for you to have .
While I'm doing that , I just want to point out that if we're making a big deal like too much of a big deal about it and getting too stuck in our own head and having to explain it stuck in our own head and having to explain it then naturally I think they're going to also question it even more and push back even more .
And it's I don't know why I'm using this analogy , but it's almost like seeing a kid , like a baby , walking and then falling on the floor , walking and then falling on the floor . And if you watch that baby , the baby will , they'll just kind of stop and pause , like what's going on , and if you leave them alone , they just get up and continue on , yeah .
Now the other part of that is if that baby goes walking on the floor and then somebody goes running over there and crying like oh my gosh , right , the baby starts crying and pushing back . They're because they're freaked out , they're like what's going on ? And I and and I know that's a weird analogy , but it happens oh yeah , you know .
And so if you just don't make a big deal out of it , here's the deal . This is what we're all about , and and , and this is why I come , why I charge what I do , and this is what I'm going to do for it . And the other thing is it's your value .
You're getting paid for the knowledge and the experience and the time that you're going to bring to the table to these clients definitely .
I think that baby analogy is super accurate . I have a niece and , uh , a niece and nephew and like they're they , they're very young until I got to see them grow up and I remember , like when they would fall , we would just we would clap , you know , and stuff , just to ensure that they psychologically knew that you know it's going to be okay .
And they , they , you know , kept it pushing . That , you know , they didn't worry too much after that because they were aware that everyone else wasn't worried .
So right , that's so . So think of our clients sometimes as big babies . And we just need to cheer them on a little bit . You know All right , yeah . So I just uploaded the explaining the net sheet to you . I really would like for you to do this one , because I think it's a .
So we'll do this one , the net sheet which we did yesterday , and then we'll go right directly into the other one , because that's a good way to object a little bit Okay . All right .
So , and to set this up , in this scenario , you're discussing the net sheet with a homeowner who is going to sell their home , or wants to sell their home , and you're going to focus on the expenses and the total amount they will receive , without mentioning commission percentages . So we're not going to talk about percentages using the net sheet .
Have you ever done this ? No , I haven't not particular script , but have you had the commission conversation using the net sheet versus the rate that's what I'm Okay .
Yeah , I've never had that .
All right , so let's go ahead . Start out the script when you're ready .
Okay , hi Darren , thank you so much for meeting with me today . Just wanted to check in and see how you're feeling about the process . So far .
You know what I'm excited . We're ready to go and yeah , so let's do this .
Oh my gosh . Yeah , that's so glad to hear it . Today , I want to walk you through something that's called a net sheet . Not sure if you've ever heard of this before , but this document will give us a clear picture of what you can expect to walk away with after selling your home . Does that sound good ?
Yeah , absolutely , let's do it .
Perfect . So the next sheet includes all the expenses you'll incur during the sale .
This covers things such as title insurance , escrow fees , any repairs or concessions we might need to make , escrow fees , any repairs or concessions we might need to make and , ultimately , the goal is to ensure that there are no surprises down the road and that we're just being transparent about everything within this transaction .
Okay , that sounds good .
So , with that being said , let's just start by looking at the selling price of your home . Based on the market analysis , we're aiming for 1 million . Now here are just some estimated expenses .
Okay and then .
¶ Real Estate Net Sheet Explanation
So a couple of things happening there . One you've already just showed the CMAs like showing them what the value is right of the home . And number two what's going on is you have a net sheet in front of them . Typically , we bring a high and a low net sheet and you get that from escrow . It only takes them a couple of minutes to put it together .
They send it over to you . So get a high and a low and that's what you're pointing to . You're pointing to the net sheet and saying , hey , here's expenses on this column , here's what you're getting in proceeds back on this column and here's what you're going to be putting into your bank account .
So I just wanted to point out that that's what's happening in this conversation . So continue on . Yeah , yeah , I totally get it . I see there's some all these different things going on here .
Okay , yeah , and you'll see here the costs for title insurance , escrow fees and a few other necessary expenses . Now the sum out here is the total that goes to the real estate agent , which is my team and me , and so by the time we get to the listing contract you'll see the percentage .
But what's most important is how much you get in your bank account after all the expenses .
Wow , I'm looking at this . You're telling me at a million . After everything is done , I'm going to put in $925,000 on my bank account . That's awesome .
Definitely no , it definitely is awesome , and that's why I wanted to show you this , because it maps out everything and it's a very , very transparent . So , after subtracting all this costs from the selling price , we get to the bottom line and the 900,000 is the amount that you'll receive into your bank account . I know you mentioned that's excellent .
Does that look good to you ?
Well , it looks good . I mean , I didn't realize that there was so many different expenses that go into selling a home , but I can see like all these people are , you know , insurance , everything paying you guys . Yeah , that's . Uh , it's quite a bit of money to sell a house , but I love having almost a million bucks on my bank account too .
Yeah , no , definitely it's it's uh , it's , uh , a good profit that you guys are taking home , and I and I understand that we were aiming for that goal , which is great .
So the main thing is that we want you to feel confident and comfortable with every part of this process and I want to make sure are there any expenses or parts of this net sheet that I could clarify Any concerns that you had or feedback ?
I think you did a good job . I'm sure the more I stare at this , more questions I'm going . You know I think you did a good job , I'm sure , as the more I stare at this , you know more questions that I'm going to have . But I think you did a good job so far , so I appreciate that .
Yeah , and I'm I'm really glad that we could go over this together . You know , transparency is key and I want to make sure that you have a full understanding of what to expect . If you're feeling good about this , we can move forward with the next steps .
Yeah , I think it's good .
So let's go ahead and do it . Fantastic Well , let's get this home sold and the amount into your bank account . I just wanted to thank you again so much for your trust and partnership in this process .
We'll keep everything smooth and straightforward from here . Okay , well , I am kind of curious really quickly just out of curiosity .
no-transcript you know like you mean like with my uncle . Well , I see .
I see in .
I see in this net sheet that it says that you're going to get paid , you know , almost 60 grand . I mean , is there a way to like negotiate down to like 40 or something like that ?
You know ? Sorry , I thought you were asking in general sense , but you'll , yeah , you know negotiation is . You know it's always pretty . We do like to keep it pretty open , you know , I understand that .
Go back to the other script .
Yeah , I'm looking at it right now , I was just pulling it up . I understand you know your desire for negotiation .
However , you know it is essential to consider the long-term benefits , and so , by setting a fair commission rate , I have the opportunity to focus specifically marketing your property effectively and just being able to reach a wider audience of potential buyers and negotiating the highest possible sales price .
So , ultimately , the goal is to maximize your return on investment . Is that right ?
Absolutely yeah , I want to get the most amount of money .
Yeah , and well , perfect , perfect . So let's just , you know , do the right thing and get your home on the market and I'll start marketing your , your home , immediately all right .
All right , let's , that makes sense . Let's just do it perfect , perfect all right , sorry , yeah , I didn't tell you about the transition .
No , that's okay I figured it out like midway was um anyways yeah , no worries , you did good that .
That's the conversation . So from here , after the net sheet conversation then you'll usually transition yeah , well , it's going to transition . You're going to transition into the listing contract . You're going to pull out the listing contract . You're going to pull out the contract . Okay , great , let's go ahead and sign here , sign here .
This is where we discussed this . Here's where the commission's at you already saw that you said that amount was okay . Boom , boom , boom , boom , boom boom . Get the signature and then you tell them exactly what you're going to do for the next . You know , we're going to order some pictures .
We're going to start , you know , putting together the marketing material , all that type of stuff .
Um , and when do you ? What do you usually request for the net sheet Like ? So I know just for context . It sounds like we usually do this , like before we're marketing . Is this during the listing presentation ?
during the listing presentation . So , before you go , meet with the client and I would do it , if you know , like if it's that day and they're like scheduling that day , get on the phone with your escrow officer and say , look , I have an appointment right now , I need this right now . Please send me a high and a low . You know , price is a million bucks .
My percentage is going to be six percent or 7% , whatever rate you want to choose , right , do it at 7% and then also do it like at 950 , just in case , at 6% as well , and see what that , and see and tell them and send you the high and low . It takes them like 15 minutes to do . That's it , right , and they'll send it over to you .
You print it out , you put it in your folder and you bring it to the meeting with you as part of the supporting documents as well as the CMAs , because you can see , right , like you get there , you do your presentation . Here's who I am , here's what I'm all about . I'm a single , I'm a solo agent or I'm a team member , it doesn't really matter , right ?
I don't really care who you are . Just you know here's , here's what we bring to the table , here's what we're going to do to get your home sold . Now let's go ahead and talk about the value of your home , because they all , everybody , all the sellers think that their home is worth more than what it is , right ?
They're all tracking Zillow , they're all tracking Redfin and their home is better than their neighbor's house , right ? So then you go over the CMAs . They finally figured out that , okay . Well , maybe I was wrong . Finally figured out that . Okay , well , maybe I was wrong . Here's what's going on in the market . I agree with this price Awesome .
Now let's talk about the net sheet and the expenses involved , right ? So then you go over the net sheet and have you seen a net sheet ?
Yeah , you've shown us before and I remember you mentioned it comes from the escrow officer , so I took like a brief glance .
Good , okay , so you go over all the expenses , right , and then , when they agree to that , then you go into the listing contract and then , through there , they'll see the actual rate , right , right now we're talking about a dollar amount . We're being fully transparent , right , and we're showing them the dollar amount on the net sheet .
We're going to show them the rate on the listing agreement and they have multiple chances to talk about um , to ask questions , and , as long as they're okay with the net sheet , they're okay with what they see on the contract , boom , get them to sign and you move on to the next phase and you do the follow-up as to what's going to happen next okay that's
about it that's good .
Can you me ? I don't know if you posted it as a resource on pay or the dashboard , but can you send that net sheet to me example , that example net sheet to me ?
If you , if you're on the dashboard , go to resources at the top in that blue bar , click on seller presentation and then there's a right and a left side under the . Under the right side where it says solar sellers folder checklist . Under the right side where it says seller's folder checklist .
Yeah , I see it Under that section .
There's a section called supporting documents bring separately . Click on that .
I see .
Then it'll open up . If you right-click , double-click , however , whatever to expand it . I've got to make that bigger . I've got to make that better . There's an example of NetSheet of all the expenses and the cool thing about this is after everything is said and done . This is what I love about having the commission conversation based on the net sheet .
Is that their consideration ? Their price is a million bucks or 940 ? in this case . And then here's all the expenses plus your commission rate , right ? You're having that discussion already . And then , when everything is said and done , $870,000 is going to go into their bank account , and that's really what we're getting to .
How does that number going to look in their bank account ? And not a whole lot of people have $870,000 in their bank account , right ? And not a whole lot of people have $870,000 in their bank account . Some do , some don't , but that's a good number for them to start getting a feeling for . Hello .
Hello .
Hello , sorry , I was . We were talking and I totally uh , uh , what do you call it um ?
lost track of time lost track of time no , I'm like wow , this is going long yeah , um , that's right .
So how did it go ?
good , um , I did it twice . She did it once . The second time I kind of went a little more into explaining my value as far as paying for stuff up front , paying my broker , paying my insurance .
And it went well then .
I think so .
Okay .
Darren , I have a question . So for explaining our value , so we don't go further to not create resistance , further to to not create resistance , like explaining that we do a cma , um net sheet and everything that we do so ?
that's a really good question , because at this point you would have already done that .
Um , you would have gone , you're in the presentation , so you're , you're giving the presentation , you would have already shown giving the presentation , you would have already shown the cmas , you would have already shown , had the conversation around the net amount that they're going to earn and then from there , you're going to handle the objections that they're going to
give you . Like you know , is there any room for negotiation . You know , can you lower your rate ? You know , another agent told me that they were going to do this . I have a friend in the business that said they're going to charge me this . So that's , you would have already had that conversation about that . You know you can remind them of your value .
Well , here are some of the things that I'm going to do . Just as a quick reminder , let me go over some of the things that we're going to do . We're going to host open houses every single weekend until this thing gets sold . We're going to post just coming , just sold , and in escrow type postcards . We're going to walk the neighborhood .
We're going to reach out to our database . We're going to pitch it to the different market centers . We're going to do all these different things . We're going to run social ads .
¶ Diverse Real Estate Business Strategies
There's a whole bunch of different types of things that you can do , depending on who you are and how you run your business . Also , there's not one set way of doing it . It's just a matter of what you do to help people get their homes sold .
Yeah , thank you . That's fine then . Yes , thank you .
Yeah , you're welcome . All right , so that's the script . I hope that you found it useful . Just head over to realestatescriptspracticecom for more resources and downloads . This content is for educational purposes only and does not make any guarantees .
We suggest you seek the help and or advice of your broker coach , mentor , office manager , attorney and or financial advisor , brought to you by Darren Tunstall , a licensed real estate agent . To you by Darren Tunstall , a licensed real estate agent , dre number 01853445 .
This content operates independently of Darren's affiliation with Keller Williams Realty and any realtor associations . The intention is to provide you with valuable information , insights and practical tools . Please note that all results may vary and participants are responsible for their own actions .