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REVISED EDITION
Breakthrough to Mastery
An Agent’s Guide to
Bulletproofing Transactions
Making It All the Way
to the Closing
An Agent’s Guide to Bulletproofing Transactions 2
Main Ideas
1. Perspective
2. Inspections and Repairs
3. Appraisals
4. Loan Approval and Funding
5. Other Contingences
6. Co-oping and Communication
7. Deadlines
8. Bulletproofing Strategies
An Agent’s Guide to Bulletproofing Transactions 3
Perspective
The Issue
“Owners feel like they are selling too low, and buyers
feel like they are paying too much.”
Martin Bouma
Ann Arbor, Michigan
Pages 7-8
An Agent’s Guide to Bulletproofing Transactions 4
Perspective (continued)
The Challenge
In this market, a “yes” on a contract is not as solid as
a “yes” in another market.
Page 8
An Agent’s Guide to Bulletproofing Transactions 5
Perspective (continued)
The Solution
» Be aware of the most common problems.
» Have good solutions and scripts.
» Avoid problems by addressing common
concerns before they arise.
» Maintain good and frequent communication
with all parties.
Page 9
An Agent’s Guide to Bulletproofing Transactions 6
Perspective (continued)
Six Major Issues—Contract to Close
1. Inspections and Repairs
2. Appraisals
3. Loan Approval and Funding
4. Contingencies
5. Co-op Agent
6. Deadlines
Pages 10-11
An Agent’s Guide to Bulletproofing Transactions 7
Inspection and Repair
“I’m finding that we’re getting big laundry lists from
people wanting everything done to the house, and if
you don’t do just about all of it, they’ll walk.”
Sharon Hamilton
Santa Rosa, California
Page 12
An Agent’s Guide to Bulletproofing Transactions 8
Inspection and Repair (continued)
Conversations with Customers
Sellers
» Prepare sellers for what to expect in your market.
» Acknowledge their feelings and concerns.
» Ask if sellers are willing to risk losing the buyer.
» Suggest a pre-inspection to prevent unexpected
repairs.
Pages 13-14
An Agent’s Guide to Bulletproofing Transactions 9
Inspection and Repair (continued)
Conversations with Customers
Buyers
» Recommend inspectors you trust.
» Educate buyers about where you are in the process
and what comes next.
» Remind buyers that inspectors document everything
they see.
» Help buyers focus on the big picture and important
issues.
Page 15
An Agent’s Guide to Bulletproofing Transactions 10
Inspection and Repair (continued)
Attend Inspections
Your Goals
» Answers all your customer’s questions.
» Know what’s on your customer’s mind.
» Keep small issues small.
» Provide vendor referrals (if needed).
» Guide buyers through the next steps.
Don’t let the inspection become a reason to
back out of the contract!
Page 17
An Agent’s Guide to Bulletproofing Transactions 11
Inspection and Repair (continued)
Negotiation
» Find out how much repairs will cost.
» Enlist the other agent as your ally.
» Adopt a positive mindset: “Let’s make a deal!”
“Let me help with the cost of that repair.”
“I’ll pick up one-third of that.”
Page 18
An Agent’s Guide to Bulletproofing Transactions 12
Inspection and Repair (continued)
Home Warranty
» Home warranties alleviate buyers’ worries.
» In the future, when a repair is needed, new
owners call the warranty company rather
than you.
Page 19
An Agent’s Guide to Bulletproofing Transactions 13
Inspection and Repair (continued)
Negotiating Inspection and Repair Issues
What are your best practices for
resolving inspection issues?
Page 21
An Agent’s Guide to Bulletproofing Transactions 14
Appraisals
What can a real estate agent do to make sure the
buyer gets an adequate loan to make the purchase?
Page 22
An Agent’s Guide to Bulletproofing Transactions 15
Appraisals (continued)
Low Appraisals – Sellers
» Do a thorough CMA.
» List the house at an appropriate price.
» Have an appraisal done if there are no
comps.
Pages 22-23
An Agent’s Guide to Bulletproofing Transactions 16
Appraisals (continued)
Low Appraisals – Buyers
Funding Options
» Additional down payment from the buyer
» Financial gift from parents/family
» Second mortgage
» Seller-assisted options
Pages 23-24
An Agent’s Guide to Bulletproofing Transactions 17
Appraisals (continued)
Dealing with Appraisals
What appraisal problems have you
encountered or heard about in your
area?
How can the problems be avoided?
Page 26
An Agent’s Guide to Bulletproofing Transactions 18
Loan Approval and Funding
Regardless of which side you represent, make sure
the buyer uses a reputable and trustworthy lender.
Page 27
An Agent’s Guide to Bulletproofing Transactions 19
Loan Approval and Funding (continued)
Buyer Side
» Make sure your buyers are preapproved for
a mortgage loan before showing them
houses.
» Offer names of two or more reputable
lenders.
» Submit a parallel application for backup
funding when you don’t know or trust the
buyer’s lender.
» Advise your buyers on keeping their finances
in good shape.
Pages 27-28
An Agent’s Guide to Bulletproofing Transactions 20
Loan Approval and Funding (continued)
Prequalified vs. Preapproved
» Prequalified—the buyer may receive a loan
for a certain amount based on minimal
information provided to lender.
» Preapproved—the buyer provides detailed
financial information to the lender and the
lender pronounces that the buyer is most
likely to receive the loan.
Page 28
An Agent’s Guide to Bulletproofing Transactions 21
Loan Approval and Funding (continued)
Seven Don’ts of Mortgage Funding
1. Don’t change your employment status.
2. Don’t make any major purchases.
3. Don’t increase your credit card debt or miss any payments.
4. Don’t change bank accounts or make undisclosed large
deposits.
5. Don’t apply for a credit card, cosign a loan, or make a credit
inquiry.
6. Don’t spend money you have set aside for closing—not any,
not ever.
7. Don’t delay in providing all paperwork asked for by the
mortgage company.
Page 29
An Agent’s Guide to Bulletproofing Transactions 22
Loan Approval and Funding (continued)
Other Funding Issues
» Parallel Applications
» Documentation Problems
» Lender Doesn’t Approve
» Buyer Credit Issues
Pages 29-30
An Agent’s Guide to Bulletproofing Transactions 23
Loan Approval and Funding (continued)
Anticipating and Avoiding Funding Problems
What financing problems have you
encountered?
What do you do to avoid funding
problems?
Page 33
An Agent’s Guide to Bulletproofing Transactions 24
Other Contingencies
Sale of Buyer’s House
Additional Approvals
Clouded Title
Pages 34-35
An Agent’s Guide to Bulletproofing Transactions 25
Other Contingencies (continued)
Avoiding Contingencies
What other contingencies have you
encountered?
What solutions worked?
Page 36
An Agent’s Guide to Bulletproofing Transactions 26
Co-oping and Communication
Key Players
» Escrow officer
» Lender
» Appraiser
» Real estate lawyers
» Title company
» Other real estate agent
» Buyers
» Sellers
Page 37
An Agent’s Guide to Bulletproofing Transactions 27
Co-oping and Communication (continued)
Buyer’s Financial Situation
» Follow the Seven Don’ts of Mortgage
Funding
Page 37
An Agent’s Guide to Bulletproofing Transactions 28
Co-oping and Communication (continued)
Seller’s Financial Situation
Gather information:
1. When the property was purchased
2. Amount of the loan
3. How much the seller owes the lender
4. Whether there is a second mortgage
“Never assume the seller’s agent has asked all the right
questions of the seller.”
Terry Moerler
Westlake Village, CA
Page 37-38
An Agent’s Guide to Bulletproofing Transactions 29
Co-oping and Communication (continued)
Escrow Officer
» Stay in communication as soon as contract is
signed
Surveys and Vendors
» Avoid misunderstandings and differing
expectations
» Ask questions and get things in writing
» Communicate clearly and often
Page 39
An Agent’s Guide to Bulletproofing Transactions 30
Co-oping and Communication (continued)
Bulletproofing with Communication
What questions should you ask to
avoid problems in the contract-to-
close process?
Page 40
An Agent’s Guide to Bulletproofing Transactions 31
Deadlines
Avoid Missing Deadlines
» Negotiate closing date
» Negotiate occupancy date
» Confirm inspection and repair appointments
» Follow a contract-to-close checklist
Pages 41-42
An Agent’s Guide to Bulletproofing Transactions 32
Deadlines (continued)
Meeting Deadlines
How do you keep yourself organized
and on track with respect to
deadlines?
Page 43
An Agent’s Guide to Bulletproofing Transactions 33
Bulletproofing Strategies
Proactive Prevention
» Outcome framing—what do you want to
achieve?
» Set expectations—what do we realistically
need to consider?
» Prepare alternatives—what will we do if … ?
» Reassure—we’re on track and doing fine.
Pages 44-45
An Agent’s Guide to Bulletproofing Transactions 34
Bulletproofing Strategies (continued)
Reluctant Buyer
“Have a plan in place to deal with what you
know is going to happen.”
Dave Jenks
Keller Williams Realty International
Page 45
An Agent’s Guide to Bulletproofing Transactions 35
Bulletproofing Strategies (continued)
Buyer’s Remorse Triggers
News reports that make them absolutely sure they
have made the worst decision of their life.
Friends who tell them they are nuts for buying a
home now.
Well-meaning family members or friends who say,
“You paid THAT MUCH for your house?”
Page 46
An Agent’s Guide to Bulletproofing Transactions 36
Bulletproofing Strategies (continued)
What You Do
» Mark the moment of
victory.
Write down how
thoroughly you
considered everything in
the market and why this
house is THE ONE.
Pages 46-49
An Agent’s Guide to Bulletproofing Transactions 37
Bulletproofing Strategies (continued)
Antidote for Buyer’s Remorse
“You have to constantly resell buyers on their
decision.”
Martin Bouma
Ann Arbor, Michigan
Page 49
An Agent’s Guide to Bulletproofing Transactions 38
Bulletproofing Strategies (continued)
Seller’s Remorse
» Do a CMA.
» Remind sellers of their motivation to move.
» Remind sellers about their destination.
» Discuss the risks of starting over.
Pages 49-50
An Agent’s Guide to Bulletproofing Transactions 39
Bulletproofing Strategies (continued)
Close as Soon as Possible
Reduce the time buyers and sellers have to
second-guess their decision.
Page 50
An Agent’s Guide to Bulletproofing Transactions 40
Bulletproofing Strategies (continued)
Early Response—Stay on Track
1. Constant communication
2. Inspecting expectations
3. Problem solving
4. Contract-to-Close tracking
Don’t make any assumptions!
Page 51
An Agent’s Guide to Bulletproofing Transactions 41
Bulletproofing Strategies (continued)
Handling Buyer’s Remorse
What works when your buyers
change their minds about buying a
house?
Page 52
An Agent’s Guide to Bulletproofing Transactions 42
The Bottom Line
Communicate often with all key people.
Spend plenty of time with your customers.
Handle or closely oversee the contract-to-close
process.
Anticipate problems and take preventive action to
avoid them.
Understand the mindset of buyers and sellers.
Look for creative solutions.
Never give up!
Page 53
An Agent’s Guide to Bulletproofing Transactions 43
Productivity Boosters
Help Buyers Understand the Process
Don’t Forget Closing Details
Communicate with Your Customers
Page 54
An Agent’s Guide to Bulletproofing Transactions 44
My Action Plan
Don’t put away this guide without developing
a plan to put what you have learned into
action!
Refer to the Action Plan on pages 58-60 of
the guide to assess your strengths and
areas for improvement.
Write down steps you will take to improve
your skills—complete it, share it, and
commit to it!
Pages 58-60
An Agent’s Guide to Bulletproofing Transactions 45
Take the other courses in the
Breakthrough to Mastery Guide series!
Gaining Mind over Market
Upshifting Your Lead Generation
Seller Pricing Strategies
Seller Staging Strategies
Lead Capture and Conversion
Internet Lead Capture and Conversion
Creating Urgency to Buy
Expense Management
Effective People Leverage
Short Sales, Foreclosures, and REOs
Financing Solutions
An Agent’s Guide to Bulletproofing Transactions 46
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