Myrtle Beach Real Estate by Mirela

Just Show Me The Money!!!

It is amazing to me that so many agents fail to use the most important tool in the listing presentation!  If price has EVERYTHING to do with your sales performance, I can't understand how so many agents fail to employ this "Strategic Morsel". 

During my listing presentations, I typically get the same response from the seller:  "No other agent has done this for me!" 

Come on!!!  How do you expect to argue for a certain price, if you don't do a net sheet for the seller?  Without a net sheet, the seller has no idea what amount of money he will end up with.   It's simply too ABSTRACT, and many times the Seller will argue for the higher price simply because he wants to make sure he walks away with some money after the closing.  How much?  He doesn't know, so he will most likely guesstimate on the high side...

Do yourself a BIG FAVOR:  Find out exactly what the typical closing costs are in your area, the formulas employed for any deed stamps, etc. and if you don't have a company net sheet, create one in Excel.  During the listing presentation, ask the sellers what they owe on the first and/or second mortgage, find out about any other liens, then plug in the numbers in your Excel net sheet, and Voila!  You now have a definite figure for the amount of money in the sellers' pocket after all is said and done.  Don't forget to do the net sheet with your suggested price, not the seller's fantasy price.  Let your Sellers digest the final "in hand" figure a few seconds, then turn to them and ask: "Is this enough to get you from here to there?"  You will be surprised how often the answer is yes! 

Now you will have a listing at your suggested price, and soon you will have a sale.  All because of a simple Net Sheet!!!

Your Myrtle Beach Real Estate Connection, Mirela Monte

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Comment balloon 21 commentsMirela Monte • October 25 2007 05:09PM

Comments

Is the "unemployment" of the net sheet simply endemic in my area, or is it prevalent everywhere else?  I would love to hear your comments!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
I always use the netsheet. I have it on my laptop and fill in the blanks during the appointment. And, given enough experience, I have gotten pretty close.
Posted by Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.) over 11 years ago
GREAT tips!!  Seems obvious to do this, but I've never actually seen it done for me (or even with me) on any of the homes I've sold.
Posted by Jason Romrell (Business Attorney and Success Advisor) over 11 years ago

Good Job Gary!  No wonder you pull the kind of figures you do! 

How about the other agents in your area?  Is the net sheet prevalent in Rockledge, Fl?

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
Thanks for the comment, Jason!  Maybe you should make your own, no?
Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
Our broker in charge makes us use it.  I couln't even go on a listing presentation until I got the net sheet down pat.  Great tool for pricing the property correctly!
Posted by Thomas Cunningham, Charleston, SC Real Estate (Buyers' Choice Realty) over 11 years ago

Mirela, Since I take alot of expired listings I am constantly going behind other REALTORS(R). I am amazed at how many sellers get that glazed over look when I mention the "CMA" of the "Net Sheet" most haven't seen either before! How the heck can you properly price a home without these two things? Well.....you can't. That's why the listing expired and they are now talking to me:)

Not only should they see it but they need to sign it. So at closing that can't play dumb. I have then sign one at listing and another one at time of contract.

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 11 years ago

Bryant, what a fabulous suggestion! 

Starting with tomorrow, my entire office will start getting the net sheet signed.  Thank you!  Thank you!  I sincerely appreciate your suggestion!

Great idea to have them sign at the time of contract as well!  You are the best, Bryant!  Thank you, again! 

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
good advice indeed!
Posted by Gail Gladstone, Brokering Success (Gladstone Group & Long Island Business Brokerage) over 11 years ago

Mirela, The Net sheet I have them sign, once we have negotiated a deal, also has a brief outline of the transaction at the top i.e. who pays for what, amount of escrow deposit, closing date etc. The middle part is the Net sheet. At the bottom I have in big bold letters:

First just a disclosure about the net figure being an estimate then:

PLEASE DO NOT MAKE ANY MAJOR FINANCIAL DECISIONS BASED ON THE PROCEEDS OF THIS TRANSACTION UNTIL THE CHECK IS IN YOUR HAND. IT IS VERY COMMON FOR CLOSINGS TO BE DELAYED. 

I do this because I have had one too many sellers tell me 2 weeks before closing that they placed a non contingent contract on a property out of State, prepaid for the movers etc..all before we even have a clear to close. Then the deal kicks and they are screwed. So even though I told them this they seemed to forget it. Now I make them sign it.

 

 

 

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 11 years ago
Wow... that kind of response from sellers about net sheets... isn't that Real Estate 101?
Posted by Daniel Sundberg (Crystal Springs Real Estate) over 11 years ago

Dear Bryant,

You have just improved my blog by 100%!!!

I will now subscribe to your blog.  I don't want to lose a single bit of information from you.  You do blog about these wonderful procedures of yours, don't you?

Please say Yes!  Anxious to get the rest!  You are the BEST!!!

Thank you!  Thank you!  Thank you!!!!!!!!!!!!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago

Daniel,

What you think should be the norm is not, interestingly enough!!!  Time to change that, no?

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
A net sheet is an absolute MUST!   I have an excel spreadsheet that I use, it looks professional and the sellers are impressed.  It's nice to see the HUD match up with the Net sheet that you provided.
Posted by Michelle Pine, ABR, GRI, Hampton Roads Real Estate (Kris Weaver Real Estate Team) over 11 years ago

Mirela,

I think because seller net sheets require additional thought, systems, knowledge and effort many real estate agents don't find the time for them. But they are invaluable to the seller.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 11 years ago
Wow, a net sheet is MANDATORY in my office.  I can't imagine a shocked seller on closing day.
Posted by Teresa Cox King, Orange Beach and Gulf Shores, Alabama (RE/MAX of Orange Beach) over 11 years ago

Thank you Teresa for your comment!

Bryant Tutas comment (above) is worthy of some careful reading.  He gave us all some great tips.  Thank you Bryant!  I've already started implementing your modus operandi.

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago

I used to provide the Seller with a Net sheet once we had an offer on the table, but during my last listing presentation, I gave it to them right away and I think they were impressed... and I got the listing!

Thank you!

Posted by Kerry Lucasse, Your Nest Atlanta Real Estate Consultant (eXp Realty - Nest Atlanta Team) over 11 years ago

It works very well during the listing presentation and it helps garner the correct listing price...

 

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 11 years ago
Great point!  We put detail into everything we buy and sell.  Without it, people can't be sure on their bottom line.  This is really true for our investors.  They need to know what the numbers come out to for them
Posted by Joe Davis (Indiana Commercial Realty) over 11 years ago

Joe:  True for the investors AND true for every seller.  It will help the agent get the listing.  This is a most important tool.

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) about 11 years ago

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