Joe Stumpf’s Magic Words Dialogues For Realtors And Lenders

When a buyer makes an offer on one of your listings, what you say when presenting the offer makes a critical difference. Here’s the language I teach in the Eight of Clubs in my Magic Words That Negotiate Agreements:

Imagine the seller’s name is Johnson and the buyer’s name is Miller.

What most agents say to their seller is, “Mr. and Mrs. Johnson, the Miller family has made an offer to purchase your home.”

The word “offer” triggers an automatic response: counteroffer.

A much more powerful approach is this: “Mr. and Mrs. Johnson, the Millers have agreed to buy your home.”

(The words “have agreed to buy” mean “The Millers now own your house because they have a binding contract.”)

“If you choose to counter the Millers then you have agreed to buy your home back from the Millers for whatever amount of money you want to counteroffer.”

The words “have agreed to buy” carry an implied conclusion.

The words “have made an offer” carry an implied beginning.

Which do you choose – conclusion or beginning? Share your thoughts below.
 

During a referral conversation it’s good to ask people to be more specific because it gives them a chance to think about the details that they may not have thought through yet.

How quickly can you ask people to go from general to specific?  Watch this video for my coaching around the King of Spades in the Magic Words That Get Referrals card deck:

Did you notice that you are asking for a specific type of person and situation?  Share your thoughts below about getting specific when you ask for an introduction. 

The next time a prospective client says “Will you cut your commission?” or, “Will you lower your fees?” use the Nine of Hearts in my Magic Words That Remove Resistance to say “No” in a way that’s a big win for the client – and you!

In this dialogue you’ll see the phrase “5-6-7.” That’s By Referral Only language for discovering exactly what is important to your client about buying, selling, or borrowing. We call it the “5-6-7” because the process I teach is a seven-step process.

People don’t just buy a house – they buy a dream. When you discover your client’s deepest reasons and dreams – their 5, 6, and 7 – you’ll be in the perfect position to help your client achieve them.

Master these Magic Words and never cut your commission again!

Prospective Client:

"I know an agent who said they would cut their commission."

Magic Words – Realtor

That’s a little bit like saying that a doctor is offering you a cut rate on surgery because his business is slow. I imagine you, like me, would be suspicious, wouldn’t you? Maybe they’re offering to cut their pay because they might be in survival mode right now, and experience shows that may hurt your chances of selling your home. Based on what you told me (5-6-7), your next best step is to select an agent like me, who is skilled enough to protect his own money, because then I will be equally skilled at negotiating for your money.

"I know a lender who said they would lower their fees."

Magic Words – Lender

That’s a little bit like saying that a doctor is offering you a cut rate on surgery because his business is slow. I imagine you, like me, would be suspicious, wouldn’t you? Maybe they’re offering to cut their pay because they might be in survival mode right now, and experience shows that may hurt your chances of getting your loan closed so you have the money when you need it. Based on what you told me (5-6-7), your next best step is to select a lender like me, who is skilled enough to protect his own money, because then I will be equally skilled at negotiating for your money.

How did you respond the last time you were asked to cut your commission? Share your thoughts below.

In my 25 years of coaching, the number one thing I've discovered that stands in the way of getting more referrals for most agents and lenders is fear.

More specifically – the fear of asking for a referral.

This fear is completely natural because you and I have an innate desire to be accepted. That desire is at the core for all of us; I want you to accept me and like me. You want your clients to accept you and like you.

When you avoid asking for anything, you avoid fear. The fear of rejection. The fear of not being accepted.

Watch the video below and you'll learn how to break through your fear and unleash your awesome power to create a steady flow of referrals for you and your business.

Imagine having a Master's level ability to control your fearful thoughts and become more empowered, more confident and more referable.

I know you can do it. You know you can do it. You can do it.  Share your thoughts below.

Magic Words

Immediately after they sign a purchase agreement, look the client in the eye and say…

“I’ve got this contract here and I’ll rip it up right now if you want me to.

“I know that you might talk to people who are going to say, ‘You bought a house, why did you do that?’ or, ‘You should have waited’ or, ‘Real estate is not a good investment.’

“It’s likely that after today, you will encounter people who suggest that you made a poor decision.

“If you don’t want to buy this home, I will tear up the contract right now.

“I need to know that you want to buy this home and that you are sure you want to do it.”

How It Works

When they insist that they want to buy, you erase remorse because you had them defend the decision they made, which deepens their commitment to what they are doing.

Also, if they change their mind after just a few suggestions you make now, you can count on them changing their mind when they talk to family, friends or neighbors.

So it’s in your and their best interest to discover if they really have made a clear decision by using this “Remorse Remover Script.”

Consulting is about helping people make wise, effective decisions, then sticking to their game plan once they have chosen a clear path.

When people make quick decisions, the chance of their quickly having remorse is greater. So when a person makes that quick decision, you know it’s in their best interest use the Remorse Remover Script.

Have you worked with a client who had buyer’s remorse? Share your thoughts below.

Your most powerful referral-generating tool is out there in pockets and purses and brief cases:

The cell phone!

And with my Magic Words That Get Referrals, those cell phones can become a consistent, predictable source of referrals, bringing you your next client, and your next client, and your next. 

For no cost!

There are three things that must happen for you to receive a referral:

First, people must notice people who need your help.  For instance, they’re in a conversation and the person mentions they have a baby on the way and they need a bigger place to live; or they’re going through a divorce; or they’re ready to stop renting and buy their first home; or they want to renovate and add on to their home; or they’d like to buy an investment property. 

Second, they must think of you as soon as they notice someone.

And third, they must orchestrate an introduction.

Watch this video for my coaching on turning cells phones into powerful, referral-generating tools:

When would now be a good time to put my name and phone number in your cell phone directory because the next time you are in a conversation with a person who mentions they will be (buying/ selling/borrowing), you can easily take out your cell phone and look up my number and call me immediately, which means they can get the help they need right now!

Share your thoughts below and let me know what you think.

Answer:  The people who were referred to you and have not yet referred anyone.

These people are twice as likely to refer you as any other person in your relationship base.

Strategy:  Today make a list of three people who were referred to you that have not yet referred anyone.  Then call each of them and use these Magic Words:

Hi, Rich, this is Joe.

I was thinking about you, and how Kate was kind enough to introduce you to me.

Rich, I was wondering who you know who’s in a situation similar to what you were in, when Kate introduced us.

(pause) A person like you, who wants to buy their first home so they can reduce their tax liability.

(pause) The reason I ask is, there are some great starter homes on the market today, with low down payment financing that makes owning a home actually cheaper than renting.

(pause) The next time you’re in a conversation with someone you care about and they mention they would love to own their first home, would you call me and do your best to introduce me, just like Kate did for you?

This is a great way to prospect for business and you can do this right now!

What do you think? Share your thoughts below and let me know.