Phil Gadd - Mastering the Art of Real Estate Success - Part 1

Join Phil Gadd in this informative episode of the Property Mindset Podcast as he delves deep into the strategies that led to a remarkable victory in a competitive real estate market. In "Mastering the Art of Real Estate Success," Phil reveals the innovative techniques and personal touches that helped secure a property for $20,000 below the asking price amidst multiple offers.

Discover how understanding client motivations, conducting educational property tours, and meticulous financial preparation can transform your property-buying experience. Whether you're a seasoned investor or a first-time buyer, Phil's insights will provide you with the tools to navigate the complexities of today’s real estate market confidently.

Tune in to learn how teamwork, strategic negotiation, and a client-focused approach make all the difference in winning bids and achieving real estate success.

Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Transcript

Phil 0:36

So welcome back to the Property Mindset Podcast. A little bit different this week. It's just me, Phil Gad, and I'm going to dig deep into how we achieved a quite truly amazing outcome. a few weeks ago where we actually won a multiple offer situation where we were actually twenty$20,000 below the current asking price. So I titled this Mastering the Art of Real Estate Success with Phil Gadd. You're harnessing client insights for tailored real estate solutions. So whenever I meet new clients or I engage with people on the telephone or text or email, I'm always looking to them. The number one thing that I'm looking for is their ultimate motivation to what they're trying to achieve. What is the underlying story behind what someone is trying to do in real estate whether it's buying or selling. We want to get to the true, we want to truly understand what that individual is trying to achieve. to understand their ultimate motivate, ultimate motivation. And the way I typically get to that is through asking the right Very open ended questioning. Questions. Very open ended questions. The goal of this is we want to acknowledge, explore, recommend, and check for satisfaction. someone typically might ask how's the market at the moment? Now you could go, yeah, it's great. Or you really open up and try and find the motivation by answering, you know what, that is an awesome question. Thanks very much for asking. You know what, there's a lot of complexity in moving parts at the moment, but right now there's real opportunity in the marketplace. And a lot of my smart money clients are starting to deploy capital. What part of the market are you most curious about? You're giving the person an open ended question. So you're asking them to explain exactly what it is they're curious about. Questions once they start opening up and telling you about what part of the market they're most interested in is, you want to establish if they're on their own, or are they making this decision with another person? Another question I quite like to ask is, what is it about your current situation right now that's not quite working for you? So with that question, they're going to open up even more about why they're looking to potentially buy or sell real estate, at this time. Another good question that you can ask at this point is what is it about the current situation that has got you thinking about a purchase in the future? What would you hope to gain from a potential move in the future? And this is also a great question I like to ask is paint me a picture. If you guys were to move, what would the next place look like? What would your ideal property look like? There's always going to be something that we can't quite get. But as you can see, all these questions they're gathering information from the potential client and they're opening up about their ulterior motive to why they want to either buy or sell real estate. So as I work down through these questions, that is my ultimate goal to Just get down because if you don't understand exactly what the person is trying to achieve, you're never going to be able to help them to the best of your ability. And the best way I like to do this is to get face to face with them. If I can't meet them in a coffee shop I like to use coffee. I like to use bars. When it's not too crazy. So you may be looking early afternoon where it's nice and quiet. You can find a nice corner, get face to face with them, buy them a beer get them to really open up so you can unearth these insights that are crucial for tailoring your approach. That's the main goal, whether it's buyers or sellers. But at this point on this podcast, we're focusing a little bit on the buyers because this is how I basically was able to write a competing offer. And we won it. 20, 000 below the asking price. So one of the strategies I like to employ straight away, if buyers, you've sat down with the buyer they've given you, they've opened up to your open ended questions and you're really, you've really discovering their true motivation to why they want to buy a property. My next recommendation is what I like to call an educational tour. And this basically taking clients on an educational tour of potential properties that meet their criteria, helps them understand better the market and prepares them for a quick decision when the right property appears. This approach not only educates them, but it also establishes trust and it really does underscore trust. My expertise. Now I've taken clients on what's called an educational tour, even though they have told me initially that they were not thinking of buying property for another six to 12 months. We had a pre approval and we had the motivation if they found the right property. Now on the first educational property tool where we specifically said there was no pressure to buy anything. We found a property that absolutely ticked all the boxes and my clients wrote an offer within the week. So even though they did tell me that it, they were six to 12 months away. Because of the strategy, because everything was in place we really discovered their motivation. We'd lined up all the things and necessary financial and logistical steps, which I will go into next. But because all those things were in place, my clients felt confident and able, they found the right property, that it was the right time for them to actually make an So that leads on to preparing clients financially and logistically. So here, this is really where we need to make sure that they understand that when we're out in the field looking at properties, there are certain things that we need to have in place to be able to act quickly and decisively and effectively. If we do find the right property. Now, one of the biggest things is making sure things such as financial pre approval are in place. Clients will either have their own bank, own mortgage advisors that they like to use, but we do have a team that we work closely with that we do recommend that our clients work with just because we've had a phenomenal success with those partners. But it is just, it's simply getting that in place, getting the pre approval in place. So the pre approval in place, establishing and understanding the clear timelines and how the process of making an offer works and this preparation is essential to enable us to act swiftly and confidently, like I say, when the right opportunity arise. what is it that makes a successful winning offer? And, especially, winning strategies One that beats other offers being below the current asking price. I'm going to give you a little breakdown and a case study that happened to us just recently where we were in a multiple offer situation and we actually won the bid being 20, 000 below the current asking price. So it all starts off with teamwork. You and your clients are the team. I or the realtor is the expert. And let's just say the team lead in this scenario. So we need a game plan. We need to focus on what we're going to do and how we're going to achieve it. So in this situation, we'd established from the open ended questions in the initial buyer consultation, we knew exactly my client's motivation and the neighborhoods that they wanted to live in. So we had that identified. We also knew that if we were going to win this bid, we would need to be highly competitive. But highly competitive, not at a price point. So our focus was on what could we do to make this offer compelling enough that the sellers would consider it over a higher price bid. The first thing we decided on, that we would not have any conditions. My clients were pre approved. We did a thorough inspection of the property. We did all our due diligence ahead of course, including title searches and everything that needed to be done for us to write an unconditional offer. We also really wanted to understand what the sellers, and this is very important, what the sellers really wanted. How that we could give everything that we could to the sellers like gift the sellers everything that they needed Because we knew that they had another property that they were moving to and they had some very tight timelines They needed to work with again. We were very flexible here so we could work with any timelines we also understood that my clients on viewing the property, they felt a very close affiliation with the current owners. They seemed to be into the same activities as them. they also felt a very similar connection with these sellers. So they wanted to articulate that. So my sellers wrote a very warming and compelling letter. And addressed it to the sellers, explaining exactly their motivations behind why they wanted to purchase this property and to make that connection with them, make a very personal connection with the sellers to, again, personalize this deal so they weren't just some name on a contract who were going to purchase their home. We also did a very unconventional strategy of, we actually offered to pay for all the legal fees to the seller. So again, we're giving the seller everything that they could possibly want and taking away the distraction of the number. So they were the main elements behind our offer. We looked and we inquired about what exactly the seller needed and what the seller required, and we went out our way to give the seller everything that they needed, down to the detail of offering to pay for the seller's legal fees. So the offers go in we're one of three. And it comes back. They want to work with us, but they wanted to negotiate on the number. Because our understanding was they had received a higher priced bid and but that bid they didn't feel was workable, even though it was a higher number. The bid that we haven't seen that bid, but our assumption was there was a lot of conditions that the seller would have had to work through to get to that number. And that might not have aligned with them wanting to purchase this other property. the offer came back and they said to us, look, we'd love to work with you, but we'd like to, negotiate on the price. We set about negotiating and I always say when negotiating on a number, always try and make the negotiations not about the thing that you're actually trying to win. For this case, we were trying to win on the number, but we didn't make it about the number. We made it about all the other things. What could we do for the seller? Is there anything more that we can do? We already knew that we could be very flexible and hit the dates that the seller really needed. And that was, in our opinion, the key, because they had a very tight timeline to move into the new property they were looking to purchase. That was our strategy for the negotiations. And the approach that we took was to make the offer so appealing that the actual number wasn't the main focus. And even though we did go up a little bit, we still won that multiple offer on we won that multiple offer on the fact that we were 20, 000 below the asking price. So that was a huge successful outcome and all the steps needed to be in place to get to that point. going back to number one finding out the absolute ultimate motivation behind what your client wants to achieve. And you do that by. asking a lot of open ended questions, digging right down to the why and the why of that person or that partnership of what they exactly want to do. We went on actually a couple of educational tours with these clients, finding out the market, discovering the market, looking at properties, making sure that when this one came up that we really wanted, We knew that it was going to be exactly the one to make the offer on. So the educational tool always sets clients up for success in the long term. My clients were prepared financially and logistically. Everything was already lined up. We crafted the offer. We knew that we needed to remove all the conditions, but we did all our due diligence ahead of time. And then when we presented the offer, we went out our way to make sure all the sellers needs and wants were met. And then the negotiation, we took the negotiation actually away from the price point by offering the seller more and more until we came to a successful offer. So my conclusion real estate, when you're working with clients, it's a team effort. Like I said, I'm the expert or you're the expert, the real estate agent is the expert and your clients are your team. So it's very you just need to acknowledge that the role of teamwork and client involvement is hugely successful is hugely important. Sorry. So the acknowledgement that the role of teamwork and client involvement is hugely important to the success of any outcome in real estate by highlighting how collaborative efforts and trust between you and your client are the key to navigating the complex dynamics of real estate and especially multiple offer bids. That is me, Phil Gadd, First Tracks Real Estate Group. This is the Property Mindset Podcast. If you like what you hear, please subscribe, whatever channel you're on. And we look forward to giving you more value and content in the next episode.