I received an email yesterday from someone I showed some houses to this past summer. I didn't remember him at first, but he had some questions about a property. I reached out to the listing agent for answers, and before she responded, I got another email from the guy today. " I didn't hear from you yet," he said. "Maybe I should call <another agent>." I remembered the guy now. He ran my wife and I around in circles getting forensic information about homes he found online for a week, then disappeared after looking at 2 homes with me. He had resurfaced, wanted me to do more research, and was already threatening to sack me.
So I sacked him.
Here's the point: real estate professionals aren't waiters. We don't do free research for just anyone who rings or emails us, and like any normal person, we are a bit sketchy about people that make us jump through hoops and then then disappear. That time we put in with those people could have been better spent with more sincere clients or our family.
On the other side of the coin, consumers are suspicious about agents. Too many people have a bad agent story to tell, so they often fend for themselves before investing time and hopes into another agent who will disappoint. It's like a big game of chicken. Niether side wants to devote time or commit to someone who might let them down. Here's what I say: If you, the consumer, want heat from that stove, how about throwing in a little wood.
Here are a few things home buyers can do to ensure that they get the most from an agent.
- Get pre-approved. I shouldn't have to explain this. The housing industry has been bent like a pipe cleaner the past 18 months. A pre approval older than 90 days is worthless, and no pre-approval disqualifies you from being taken seriously by a seller. . It takes 10 minutes to speak with a lender and get a free updated pre-approval that shows you are ready, willing and able buyers.
- Practice monogamy. Often in New York, some buyers think that they can get a batter deal if they work with more than 1 agent or deal directly with listing agents. Both of these notions are not only false, they can be expensive mistakes. If your agent catches on to the fact that you are playing the field, he'll start hedging his bets also, because nobody wants to devote time to a buyer file that might not close because you are looking in another town with another broker.
- Figure out what you want. Some agents get understandably frustrated when they spend a Sunday morning looking at town homes and Tuesday evening walking through Victorian colonials with the same buyer. I can almost intuit what some buyers want after spending time with them. However, if you are too whimsical, I might get the sense that we're just unlocking doors so you can satisfy curiosity.
- Return our calls. Sound familiar? Do you like it when you can't reach an agent for 3 days? It is the same here. Buyers who drop out and resurface without explanation are deemed unreliable and risky. It is only fair; stay in touch.
- Take our advice. The reason I give people 3 lawyers, 3 home inspectors, and 3 mortgage firms is not because I get a kickback, it is because I know that your union attorney won't return calls, an Internet bank can screw you, and your uncle Mel is not a licensed home inspector. I cannot compensate for their deficiencies. I am more effective with a cooperative team.
- Sign a buyer representation agreement. This tells the agent "you are hired. We won't use anyone else." You risk nothing by doing this, because if someone is hired, they can be fired if they stink. Establish performance criteria, have a 3 strikes and out rule or reasonable exit clause, and the agent is now at your service.
- We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
- J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service.
- I am one of New York's premier short sale REALTORS.
- J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
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- I am hiring agents.
Hehe...Excellent post...And so true...hehe...More agents should follow your inputs here...
If an agent understands that the average consumer knows little to nothing about our business, life is much easier when a consumer acts in an unreasonable manner.
The consumer will always, at least 99.9999% of the time be focused on their own navel. They are almost always complely introspective and understand zilch about the real estate industry/business.
So, when agents adjust their expectations to reality, we can act far more independentaly and with better day to day routines, our own routines, not that dictated by the consumer.
Of course, the consumer who expects the agent to jump through hoops should be shown the door or hear a quiet. "We can't help you. Call someone else." Some of my favorite words.
BTW, I used to say "Sorry, we can't help you. Good luck to you". No longer. I just get it over with with no (sorry) regrets and no wish for them to have "good luck".
In my past life I used to run myself ragged with tire kickers. Then a light went off in my head and I figured out who was a serious client and who wanted to just pick my brain for information. I've fired a few folks recently and wished them well.
I love it when another agent tries to pass along one of those customers as a referral. HaHa! It is no wonder consumers don't like us - we don't even like us.
Phil:
I like the "practice monogamy" rule. We don't need any Tiger Woods clients.
Realtors have a special service to provide and knowledge that will help the consumer accomplish his goals of home ownership. The consumer needs to understand and appreciate this by signing an agreement and making a commitment.
This is a great post with very reasonable points for us all to remember!!!
Greg, it was his idea. The customer is always right, right?
Cindy, me too. Don't go away mad, just go away.
Lenn, there is a certain ethic among people moving up from NYC that they do more than average research so they don't waste their trip up. Very understandable, and we happily comply. The only thing I ask is that they don't waste my time too. What's good for the goose is good for the gander.
Claude, thanks. Nice to know I'm not the only one who feels this way.
I had a buyer client tell me that she would work with 2 separate agents, just in case either was too busy to accommodate her. I said that it's her choice to work with as many as she wanted, but that I wouldn't be one of them. She was amazed at my response. This was after I explained the process in great detail to her. How could I be dedicated to her, if she wasn't dedicated to me?
Hi Philip! I am glad you remembered who they were before you wasted any more time with them. I've had people like that, who really don't understand or respect your time and energy. I am just not the right person for them, then. Great post!
Love the analogies my friend. We all are looking for the loyal client. Who wants to work with someone that does not value your time!
It is true that consumers have one persoective of what our roles are, and we of course have another. If a customer is threatening to fire you, they most likely will. This business is in part about relationships but it is also about cooperation. You must forsthave a meeting of the minds with customer before you can facilitate a meeting of the minds on a contract.
Hi Philip,
I'll take someone out to see a house once - gives them a chance to size me up and I can size them up - the next time I want a buyer's agreement signed before we go anywhere.
I recently had a customer who kept skating around signing...once he got up and left in the middle of a meeting, after we had talked about what he wanted and before I got the agreement out (which was the reason for the meeting and he knew it). After that he e-mailed constantly asking about this property and that. I always answered him, "I would be more than happy to help you find answers to your questions. Let's set up a time to meet again, you can sign the buyer agreement, and I'll answer any and all questions that you may have." The short of it: he never signed and bought privately.
I love to help people find their dream home - that's what I'm here for. And I'll go to the moon and back for my clients, but only if they sign that contract saying they are loyal to me as well.
Great post!
Pam.
Great Post....all I can say to this is AMEN !
I'll bend over backwards for my clients and I'll do everything within reason for potential clients without expecting them to "put any wood in the fire" for a while. I expect people to be gun shy and so I make sure they know they're in good hands before I require any respect.
Morning J Phillip, As agents we have to earn a certain amount of respect from our clients. Along the way to that level of trust the buyer would be well served by observing the items on your terrific list !
I'm a big fan of ridding yourself of "toxic" clients. And it sounds as though you've done just that. (although I'm surprised that you'd forgotten him.. it's usually the gasholes that we remember the most.
So much of this whole process is educating the public. I think agents should set the standards and then the buyers and sellers understand it. Those who are constantly trying to get something for nothing are always going to figure out a way to eliminate you. Great post!
Or they could just hire an exclusive buyer agent.
I don't blame you. I've seen many people that I was very thankful I didn't get the chance to work with. If they want to use another agent and don't see the value I bring, so be it. Good post!
Excellent advice! #5 is my favorite. I've often found explaining to buyers upfront how I work makes them appreciate the service I provide. Some still think agents have base salaries and drive company cars! Just another reason to love being a listing agent!
Phil: This is good advice. In my book, we should get a firm commitment before proceeding. There have been too many times where I've been shopped. Our time should be valuable and we should have a choice too. Good job on firing your client!
1 Investor(3 weeks of research & emails) + 5 Eight hour Days In The Car + $400 in Gas = No Sale
Lesson learned.
Philip, this was exceptionally good, and very much needed.
I particularly liked #2,5 and 6. Without it, we end up wasting too much of our time otherwise.
I have never fired a client yet so far, but I love the post. Some people don't get that our time is money.
Your professionalism and numbers should speak for themselves and yet Mr. Unreasonable Buyer (MUB) still feels he can do this to you. We are trying to come up with a way to manage MUB. There are lots coming out of the woodwork with all the "investment"opportunities available. I want to work with people who understand that they are hiring me to do a job for them and that compensation is expected. But we have to treat everyone equally. Do you have a handout or email or something that explains what services you perform as an agent? The Buyer Agency Agreement is necessary later in a relationship but hard to throw out in a first call. I don't want to scare anyone away but I too can no longer provide full time community service to the MUBs
Great post! It's so true about the monogamy aspect. I am far less motivated when I think a buyer is not being loyal and playing the field.
David in Boston
Well said, and said well. Firing ourselves is SO VERY REFRESHING! They never know what just hit them!
Phillip,
I understand consumer frustration because of some agents in our industry. That is why I do a Buyer Consultation when I first meet buyers and review the entire buying process.
I use a Buyer Loyalty Letter to explain how I work as an agent. Client appreciate this infomation and I believe it creates loyalty.
I love this post. I love the way you explain everything. I am going to reblog this. Good work, and I wish you much success.
Excellent! Like any professional, standing up for ourself makes us better able to help those who really do appreaciate, and listen to, us. Thank you for stating it so well!
Love your post. Thanks
Hi J. Philip -- Well said. A true partnership is only way to create a true win-win. It's a hard dynamic sometimes and they key is to find a good match, and that takes effort from both parties.
Great advice Phil. I am going to reblog as well!
Philip, great points. I have a customer right now I wish I could teach number 3 to.
Very nice. PRACTICE MONOGAMY. I love it!
Buyers are indeed really hesitant to give us loyalty, sometimes even after we work our tails off for them.
Great points, and explanation of how it works. Just about the time I think that buyers are SO educated because they have access to the whole WWW and HGTV, it comes back to me that I need to start with the basics of how it works. We shouldn't ever forget that.
Sarah in Nashville
Thanks J Philip for telling it like it is. We Realtors are not order takers, provide free taxi service or give away the farm and cow just to please the customer. If you want a 'Yes' agent, go to your fan club.
I ask for a Buyers Agreement with serious buyers. I explain that they get my attention before others. I look after them! We have a very candid converstion of what I am going to do for them for their agreement. It works!
I've never fired a client, but I've been pretty close. Usually the bad ones just end up dissapearing and I'm fine with it at that point.
Great post, Phil. Too many times I have felt as though I was being used as tour guide and taxi driver without much intent on their part. Insightful info.
Hello J Philip and I have to agree with the others, "Great Post!" Congrats to the feature and I have featured your post at one of my top groups to keep it alive at .......
LATE NIGHT - EARLY MORNING AT ACTIVERAIN
VB ;o)
Thanks very much Bob. I appreciate the acknowledgement.
While they aren't all like this... most of my clients are pretty good. We build a relationship at the outset... I generally know when someone is going to stray before we are too invested. Not always, though.
I love this post! It is exactly what I want to say to those who never seem to want to "get it!"
Great post, Philip. I've decided life is just too short to waste it on clients who do not respect my professional services. It's really that simple for me. Good luck with your serious clients!!
Take our Advice! maybe this is the most important thing they should consider! :)
That's good advice. I also refuse to be a chauffeur. No one gets in my car that I haven't screened.
Working buyers is so time consuming and then they can fall off the face of the earth without any notice or warning....I always preferred listings for that reason.
In my previous life the statement was always made " I really wish i had moretime to dedicate myself to you right now but unfortunately i have to much on my plate" Their attitudes normally changed for the better or they just left on there own with no hard feelings
Great post
Don
Great Post! I reblogged it. Thanks! ~Linda
Hey J. Phillip... this is a great post! I loved it! My favorite one all week!
It really makes sense and I hope consumers understand!
Thanks,
Tom Davis
It is a good post. Everyone has responsiblity in a real estate transaciton. Our Buyer Broker Agreement outlines, what the agent will do and what the client will do.
Excellent post Phillip. I'll show someone a property or two to see how we get along. At that time, if we still want to work together I get a buyer's agreement or we cordially part ways.
Great Post. Something similar happened to me. Frustrating...yes, but now I move on and work with clients that want to work as a team with me. Have a nice night!