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Property tip #6: 'DD' clause and the vital conversation 😲

Control the vital conversation that you are not a part of...

You won't be a part of it, but it's a conversation you need to do everything you can to guide.


It's the conversation between the agent and the vendor when you submit an offer to purchase a property. It can be the difference between a successful deal and a dead one.


This email would be 10,000 words if we were to cover all of the aspects to this. So let's just pick one to reinforce the principle. Let's look at a Due Diligence Clause.


The DD clause is back in fashion. They were much harder to get accepted through the boom, but in today's market are far more likely to be considered. Keep in mind, this clause is effectively a 'get out of the contract for anything you want' clause, so agents don't normally love them and they can scare the vendor.


So, keeping that in mind, be careful not to just arbitrarily (ooh, big word of the day) insert it without having a robust explanation for the reasons for the clause and the timeframe of it. If the agent can explain the reasons to the vendor concisely and make it make sense then it has a far better chance of getting accepted. If the agent's response to "why do they need this clause?" is "No idea, but it means they can get out of it for anything they want"...Well...


Always think about the conversation that will happen that you're not a part of. Front-foot objections, and make it as easy for the agent to position for an easy acceptance.


Today's mystery link from the Terminator himself


:-)

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