Working with the Seller (Part 2 of 2 — Educating the Seller)

Working with the Seller (Part 2 of 2 — Educating the Seller)

The following is a continuation from yesterday’s posting of an article written by the “Old Pro” 30 + years ago. Russ Wright was my mentor and subsequently my father-in-law. These are the rules I learned from him many, many years ago. How things have changed!

Tom West

Educating Your Seller

To guarantee your seller’s complete cooperation in the sale of any listed business, it is always wise to “alert” him to the possible annoyances he may be subjected to before a sale had been consummated. A few “do’s” and “don’ts” at this point should eliminate most of these problems. Before doing this, however, your listing should be completed and signed.

Quiz him! Does he understand the new price? Remember, he is conscious only of his net price at this moment. Remind him that the gross commission has been added to the full price and down payment. Point out that should he accidentally quote “his price”, the future buyer will use this as a wedge when making his offer.

Obtain his promise that he will not discuss price or terms with a prospect – that is our job.

Also obtain his promise – no books or records to be shown until he has been presented with a written offer by an authorized representative.

Caution him about the individual who suggests some form of collusion to avoid the broker’s commission.

Don’t talk to employees: this is the biggest fear of most sellers. You must explain that we cannot guarantee that a buyer will not drop in (unattended) and talk to an employee, even though we do our best to handle everything in confidence.

Alert him about the “mysterious” buyer who heard about his place “through the grapevine”. Have him call us with the man’s name, if possible, so that we can check our records to determine whether he had been sent or taken there by a staff member. This precaution on the seller’s part might spare him trouble at a future date, if you are working on an “open” or an “agency” listing.

Request that he call you with the name or physical description of any “prospect” that has been there two or more times so that you can contact the individual in question to determine his “intentions”.

Explain why we sometimes “send” the buyer rather than bring him; because the buyer insists on going alone. We do this rather than lose a possible sale, but we always try to alert our seller so that he will be aware of what is going on.

Finally! Should he decide to take a lower offer from a buyer, with or without our knowledge, then in that case, will he please remember to include our commission as reflected on the listing.

Needless to say, your seller’s understanding of the above will insure a profitable transaction for you and your seller.

Exciting News: A New Business Brokerage Website Is on the Horizon! Keep an Eye Out for Updates.