Re-Prepare Client Before the Offer Presentation

Most exchange brokers exclaim loudly that their colleagues haven’t properly “COUNSELED” their client before bringing their package to the market place. When I used to teach brokers how to exchange, I would explain that commissions are “pooled and shared equally” as a norm. There usually was then an extended conversation about one side doing all the work while the other side was “un-counseled,” did not expend effort toward a deal, let the other side do all the work, and still got ½ the fee. If you have seen the movie of the ladies baseball league during WWII with Tom Hanks as the coach, you know that “THERE IS NO WHINING IN R.E.”

Regardless of how well counseled or “ready” a client is for what the market will likely do to his package, it is REQUIRED to RE-PREPARE a client before offer presentation to increase the odds of performing the desired result and to have the receiving mind open, flexible and creative toward solution, rather than the niggling details of minor issues = negotiation/defensive/conflict.

Exchangors of old developed a checklist to be sure they were the best prepared before presenting “the prenuptial contract” as ‘romantically’ as possible. It is a good habit to include a copy of the checklist along with your exchange offer document to other brokers:

(From “Modern Exchanger” 1977)

Before you present offer(s) (maybe days before) re-prepare your client for flexibility:

a. Re-identify his problem
b. Re-confirm his objective
c. Re-establish that all his objectives might not be solved in one transaction.
d. Get him involved in “solution” rather than negotiations.*

1st choice: Presentation of offer

a. Let him read and react without your comment.
b. Make sure he understands what benefits are offered. How much of his stated objective is being solved?
c. Go over each part of offer to see how each part contributes to the end result.
d. Go for acceptance subject to validating the presumed benefits.

2nd choice: Counteroffer

a. Any taker of his situation should be dealt with seriously.
b. How can we accept most of the offer with small changes.
c. Sign what he will do – don’t dwell on “wont’s.”
d. Signed offer deserves signed response.

Last choice: “In lieu of” = (Recruit help and keep taker)

Accept offer “subject to finding something satisfactory “in lieu of” part of what is offered –

Get commitment! “What set of circumstances (set of benefits) do we need to replace the unwanted part?”

This gives the offering broker a chance to re-cast his offer to comply, or:

The offering broker and you can jointly go looking for the third leg to satisfy the objective by use of the unwanted portion offered.

Review with client the additional assets, money, talent, credit he maybe willing to add to the “mixture” to assist solution.

* Many folks find it easier to say no, especially to new concepts, out of lack understanding or fear. If one could set up the client’s decision making process to filter proposed solutions based on progress out of current situation into better circumstances, he will have confidence in his decisions.

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