How to Get an Upfront Contract in Your Real Estate Negotiations
An upfront contract is an agreement that is structured with someone BEFORE taking someone through your sales process. It is a technique developed by David Sandler and is extremely powerful. Use an upfront contract and you’ll be playing by your rules, not be theirs!
The following script will show you how to effectively set up an upfront contract (the example below would be if you were meeting with a private money prospect).
Me: Thank you so much for meeting with me today. How much time did you see us spending together today?
Investor: Well, I don’t know. How long do these meetings usually last?
Me: We can be done and have all your questions answered within an hour. So, it’s 3:15 now. Let’s imagine that it’s 4:15, your walking out of here thinking that it was a great meeting and really worth your time. What would we have to cover for that to happen?
Investor: Well, I guess you would go over A, B, and C.
Me: Naturally, you’ve got questions, A, B, and C. A lot of people have similar questions. I’ll make sure to go over all of that. Obviously, I’ve got some questions too, D, E, and F. Are you OK if we go over those questions today?
Investor: Sure.
Me: Typically, there are several different outcomes that could come out of our conversation. If at any point, I figure out that we’re not a fit, do you mind if I go ahead and tell you?
Investor: No, not at all.
Me: Good, I appreciate that. Now, if you figure out that we are not a fit, would you tell me?
Investor: Sure.
Me: Thank you. I appreciate that. A lot of people aren’t comfortable saying “No” and my biggest fear is when people say things like “Call me next week” or “Let me think it over” when they really just mean “I’m not interested.“
On the other hand, we may find that we are a fit and that it makes sense to work together. Now, we’re not even close to that yet but if we were to get there, what would you see us doing next?
Investor: I’m not sure.
Me: Well, the next step would be to write us a check to get started investing with us. Anything less than that, I’ll just take as a “No.” Are you OK with that?
Investor: That sounds good.
Me: Great. Out of the things you mentioned earlier A, B, and C, which one would you like to go over first?
That’s it. An upfront contract has been established. I showed appreciation for the appointment in the first place, quantified the time we would spend together (don’t you hate appointments that drag on and on and on to no apparent end), discussed what questions would be covered during the appointment, and established an agreement so that by the end, I get a clear “Yes” or “No” to my offer. “Let me think it overs” will drain the life out of you. Handle that objection before it comes up!
And by the way, DON’T try to reinvent the script! Just memorize exactly what it says and you will improve your closing ratio by a million percent.
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