I am fast closing in on my eleven year anniversary in real estate (Jan. 2008), and I am still constantly amazed by how many agents and brokers I come across who are either misinforming their clients or simply allowing the client to set their own pre-conceived expecations. We are the professionals, and as such it is our job to guide our clients through the maze of the transaction.
It seems to me that there are many agents who are content to let me do their job for them, and I'm sure that many of you have also experienced this before. Typically, I end up doing this because:
- I care about my clients and I want to get the deal done if it is humanly possible
- I want the paycheck
- I am good at what I do, so I can't help myself
- I refuse to let a bad agent interfere with the process
As a recent example, I sold a ranch property to some clients relocating from Maui. They didn't even have a chance to see the property before they got it under contract, so I took LOTS of pictures and tried to be as upfront as possible about the condition of the home. I wanted to minimize the potential "surprise" effect, so that they wouldn't arrive and be horrified. This is what I mean by setting the correct expectation with a client. They immediately fell in love with the place when they arrived, and the buyer actually told me that "I don't think you have ever had a client who was happier than I am right now." Clearly, I would love to hear this all the time, because I feel that I am providing a service and helping people achieve their dreams.
During some recent negotiations on a contract, we quickly reached an agreement on price, then we were hung up on a leaseback (i.e. seller wanted to stay for a few days after the closing). I received a proposed leaseback from the other agent, and it had a suggested leaseback amount of $25/day. This was a ridiculous proposal, as my clients' actual payment for those days would be $113 daily. The other agent told me that the amount I mentioned was just too high and that it was above the rental market. I had to explain that it didn't matter what the normal rental market would bear - this was an ACTUAL expense, and my clients would be losing over $80/day if they accepted it. This is a situation where the agent should have set the correct expectation, rather than allowing the client to bulldoze and set their own terms.
I had a deal years ago with a single mom who was a nurse, looking for a home in north Austin. We made an offer on a home (which was very reasonable under the circumstances - I really don't allow "lowball" offers with my clients). I heard back from the agent, who told me that she was surprised that it wasn't a higher offer, and that they had just reduced the price recently. She was essentially trying to get me to convince my buyer to come in at a higher price, yet she had ZERO leverage.
After speaking for a few minutes, this brief conversation transpired:
ME: ________, do you have people beating down the door to buy this house?
OTHER AGENT: No. No, I don't.
ME: Have you had any other offers?
OTHER AGENT: No, we haven't.
ME: Then just talk to your client and get me a counteroffer and I will see what I can do.
We closed on the property about three weeks later.
As you can see, I had to coach the other agent (who was actually a broker and in the business a lot longer than I was) on how to present the offer properly. She didn't set the right tone with her clients, and it made it more difficult for her to return and do her job correctly.
Do you want to be a "SUPER-AGENT"? My advice is to assert yourself in your real estate dealings as the EXPERT. How else can you hope to gain the confidence of your clients and associates? I know that there is a learning curve in any business, and perhaps real estate is one of the steepest. That being said, if you are not experienced, surround yourself with good people - a knowledgeable and "hands-on" broker, a good lender, good escrow officer or attorney, etc. This makes learning a lot easier.
If you are an experienced agent or broker, you don't have excuses here. If you want to make a good living in this business, you must always position yourself as the one in charge of the details. Ultimately, you are not the one making the purchase or selling decision, but your opinion should matter and have some weight in the process. Otherwise, you are merely an order-taker, and not a real estate professional who is adding some value with your services.
P.S. I am all about "paying it forward". If you have any questions, feel free to call or email me. Thanks for taking time to read this longer post.
Copyright 2007 Austin Real Estate
If you enjoyed this post, why not connect with me elsewhere or subscribe via email?
If you're looking for a home in the Austin area, you can also visit my primary Austin real estate website at www.austintexashomes.com. If you're interested in social media training, visit 210 Consulting. Thanks!
Sometimes (okay a lot of times) agents have been in longer and have had but a few transactions. I've had "old timers" in my office ask me to help them write a contract! And like BB says....I don't mind doing both sides...it gets done and I have control issues anyway....lol!
Jason,
Good post and an every day expereince here in San Diego. Where have all the good agents gone? Winning is closing the deal for your clients and I see many agents jsut wanting to be right. It's quite rediculous.
Mike Lewis
'Aight Coach! Good bookmark.... may i use this for my agents??? Thanks! You sure your name ain't Jason "Coach" ????
JASON: Congrats on the well-deserved feature. One of the things that I do when working with buyers is to lay out a few things for them before we even step foot in a house is tell them how to look at the house. By that I mean, open doors and cabinets if you want, don't be shy. Oh, and most importantly, I'm not going to point out to you that the room with all of the appliances is in fact the kitchen and the room with the toilet is a bathroom, and so on and so on. I tell them that I can't and won't try to talk them into buying a house, but what I will do is tell them what I think based on their wants and needs. I don't "gush" over every house that we see in an attempt to make a sale. In fact, I sometimes tell them that I don't think that a house works for them before they even say anything to me. This serves a few purposes. The first is that I am honest, sometimes to a fault. The second is that when I tell you that they should make an offer on a particular house, I am saying it because I know that if they don't, others will.
You bring up a very interesting point about setting expectations. I think that far too many times agents are reactive instead of pro-active, and useless fodder is often thought of as being proactive. What value do we serve by telling someone "here is the kitchen" and other non-sense like that. You are bringing around people that are about to make what is likely the largest purchase of their lifetime. Don't insult them by stating the obvious. I also tell sellers that I will not try and push every little detail of their home as people view it. All it does is serve as a distraction. I've never heard of anyone buying a house because of a feature being pointed out by an agent, and I probably never will.
Agents and brokers should realize that the real work begins upon the acceptance of an offer. Too many look at this phase as the end, and that is the biggest problem that we all face. Everyone has heard the phrase "sell the sizzle not the steak." This is the absolute truth in real estate. Instead of telling people where the kitchen is, point out that it has a great open layout overlooking the family room so that you can keep an eye on the kids while you're cooking. Features are features. People either want them or they don't . Our job is to point out the benefits of the feature, not the feature itself.
A little less Captain Obvious and a little more Super Agent would make this industry a lot better.
BTW - You win 868 to 476, but I gave it a shot!
Jason
I started to comment earlier, but got interrupted.....wanted to just say that I agree that most, definitely not all, jumped in for the wrong reasons, putting money ahead of client needs, and its now biting their behinds.
It is a true relief to see that we cover the knowledge spectrum in Texas, NY, Nevada, Florida, California, and Oregon, just to name a few from looking at the participation on this blog. I'm young, at 39, to have been in this biz for 20 years, and it shocks me somedays to see that the advice dispensed out is sometimes more harmful than if the client would've figured it out themselves.
To that end, I am thankful to you, and so many others that take the time to educate each other....I may know a lot, but I'm always looking forward to learning more......glad that I help guide them....cause I sure would hate to be that stumbling block you refer to.....:)
Great post! Great point! We are the experts and we should act as such!
Michelle
Hi Jason,
sometimes if you want it done right you have to do it yourself! I see this more often than not, the good thing is I will always be there to pick up the ball in case someone else drops it! Congrats on your feature! :)
Jason, I think when it comes to real estate that the clients are looking to us and we should not be afraid to give them the expert advice. We say to many of our clients, You should not buy a home in Michigan without a basement, they are hard to sell and you will not make as much as other homes in the neighborhood. For being moving from states where there is not alot of basements, they need to know this and it is our job to tell them and not just write an offer.
Congratulations !
Jason, A very well written post, and you clearly make transactions run as smooth as possible :)
DIANE - You have my permission to use this to train your agents. It is a big compliment to me. I like the new nickname - maybe I will use this one now. I am happy that you liked it. Thanks for your comments!
- Jason "Coach"
LARRY - Thanks for commenting. You're right - the tone is set from the very beginning.
SALLY - It sounds like you would definitely understand the situation that we experience here in Austin. Your story made me laugh. I think that there is a LOT of misinformation going on from agent to consumer. You are correct - we have a fiduciary responsibility to our clients to make sure we place their needs above our own. Some agents have too much pride or too little knowledge to do this, or they are just lazy and indifferent. Thankfully, that allows those of us who care to shine!
SALLY - For some reason, your second comment disappeared, but I had it copied and pasted to respond without having to scroll up and down. Here it is again:
We have OVER 11,000 on just our island alone....and guess what..it has become regular practice for me. No, we shouldn't have to although this is what it's come down to. Half of our office dropped out only for that same amount to join. One of the new ones asked me...It is still a good market right? I asked if she knew about two of our major loan co's closing. She said...yeah, that's too bad about Countrywide. DUH! This is what we're looking at...misinformed who are passing info like this on to the consumer. No wonder we have to clean up after them!
And you know what Jason? It's not so much a control issue and making sure everyones best interests are looked after. That's the bottom line.
ADAM - A worthy effort to beat my massive word count, but it appears that you have fallen short. "I award you no points, and may God have mercy on your soul." Remember that from Billy Madison?
Thanks for your congratulations. I am glad that this one was featured, because it is something that I clearly feel passionately about. You and I handle our clients in the same way (surprise, surprise). I always just let them look around and if something is good or bad I will point it out, in a completely open and honest manner.
Clients can sense pushiness just like dogs can sense fear. They can also smell desperation. I think I just thought of two new blog posts for the future. It's like that "Tootsie Roll" thing I mentioned to you earlier. With a home purchase, pushiness almost inevitably backfires. If you are looking out for their best interests, you will help them to move quickly when it is necessary (like when the listing agent tells you that they have an offer or two in hand already, or it is a screaming deal and it is the second day on the market). Like you, I am more apt to talk them out of a bad purchase than I am to rush them into something questionable.
Your comments about the inane ramblings of an idiot agent remind me of a situation that I had back in 1998 with a top-producing agent in Westlake, which is the premium area of Austin. Our clients were looking at a home that is probably worth over $3 million in today's market, and she kept saying things like, "Look at this window and the view. It is pretty as a postcard." What the...? THEY ATE IT UP. They loved her nonsense and they bought the home. I guess that kind of thing can work with some people, but it would just make me irritated, so I try not to subject my clients to this.
The "sizzle-steak" analogy is apt here, and I appreciate you mentioning that. Your example is a good one. I have had to listen to agents rhapsodize about the master bathroom too many times. It is what it is, even if it has a steam shower and a giant Jacuzzi tub. It is a bathroom. If you want to impress me, stay out of the way and be available to answer questions. This is how I have always handled my sales, and it is one of the reasons that we captured two of the top ten sales in the Austin area last year. We were available when they called, we showed them what met their criteria, and they bought quickly and for cash. This business isn't rocket science - give the clients what they want and provide your expert advice and opinions. The rest will take care of itself.
Looks like mine are at a robust 505 words - I guess I need to step it up and bring my "A" game next time! HA!
BILL - I appreciate your terrific comments. I didn't start in real estate until I was 26, so you have me beat there. You're right - I think many agents are in this business for the right reasons, but some think it is easy money, and you and I both know that is simply not the case most of the time.
Believe me, if you took the time to comment on this particular post, you are part of the solution, not the problem. Thanks for your time!
MICHELLE - Well put! That is the point of the post, and I'm glad you appreciated it!
SUZANNE - This is indeed often the case. I have picked up the ball more times than I care to count. Thanks for the "congrats". I was happy that this was picked as a feature, because it is something I feel strongly about.
Jason, Is there some confusion here? Pushiness? How about control? I'm sure that you are always in control, but without being pushy. Confidence helps breed control. Knowing you are doing the right thing can make you confident. I don't see where "pushy" even enters the picture.
I would be "content" to let you control the process if you were my agent.
Good post, as usual. Where does it all keep coming from?
Bill Roberts
BTW isn't that a corn field? I think the sign should say "enter maize"
Jason-- How do you pump this stuff out? Tell me you are out showing properties!! You just have a way with words and I see we are going to have to request AR to make comments cut off after so many characters! Another option would be to set up a private blog; something like East Coast Realtor vs. West Coast Realtor and you two can blog all day long!! just kidding. You both make me laugh, but I have a property to get in the MLS and you are making this tough to close that little X at the top of my screen!!
I think you hit a bulls-eye on your post. I, for one found that many agent's are ill trained and often don't have the right intent when they get into the business! I wasn't trained all that well and had to manage for myself and my first two years was successful but I was surprised how many agents I came across that I was helping along the way. Not to mention how many veteran agents that weren't very nice. I remember a lot of attitude with some and I just had to shake my head and laugh. It's the desire to be in the right place and with the right intentions and be the best you can be-- otherwise they should be doing something else!
SARDI - Cool. By the way, I wrote a rant just for you tonight:
Please Get to the Point Already! The clock is ticking....
DIANE - I certainly try to accomplish that with my transactions. Thanks so much for your faithful reading and commenting, and I appreciate the compliment.
CANDACE - I like your idea of East Coast vs. West Coast blog-off. Maybe we should set it up so that we can subscribe to each other's comments? At any rate, those two comments (Adam calls our comments "mini-blogs") stemmed from a conversation and a funny challenge that I put forth to him on the phone.
You are right - many agents are not very well trained, and it shows. The bad attitude is something I have never understood. How do those people make any money when I can barely stand to speak to them for one minute?
TOM - Thanks for your compliments. I certainly appreciate them. I entered your new contest a couple of times, and I am probably coming to New York in January.
SHANNON - Yes, another featured post. How awesome is that? My guess is that you are FAR more memorable than most agents in your area, especially when you wear your "barrel and boots" ensemble!
Great post as always Jason...........I am sure we all have stories like this.
DUane Hosek in the Black Hills of South Dakota
DAVID - Thanks for reading and for your compliment. Glad you liked it.
BRINETTE - I totally agree with you. In fact, most of the bad experiences I have had are with veterans, not the rookies. Great comments - thanks for stopping by!
I am amazed at the way agents will 'play the game' as opposed to just getting down to business. Why are they wasting thier tme and ours?
Great post, Jason. Now I'm on my way to read the post of yours that set me this way. :-)
Lessons from Terrible Clients - Stories from my Past (Part 1 of 2)
I agree with this post, as well as the comment that Brinette wrote( I perused through many but not all). I am in an area where many of the agents have been here for decades. They think that just because they have been here this long that they are doing the best job for their clients, when half don't have cell phones, don't use current CAR forms for contracts, and just stick the sign in the ground and forget it. Many agents don't use full disclosures, and often don't give them to you until after the disclosure period has ended. Many brokers require actual wet signatures rather than faxed copies.
Then again, there are many new agents here also. Many don't know what's what and how to be courteous to your fellow agent in our very small town. A newer, PT agent wrote an offer that was $30K below asking price. I called him up and asked him why it was so low. He told me that it was because the sellers were offering a buyer's costs assistance that his buyers didn't need so he took that off of the offer. The assistance was $7000, and market value was right at $230,000, we were listed at $239K. His offer was for $215K. I took it to my sellers who countered back at $235K after I showed them comps. The other agent never got back with me, never returned my numerous phone calls letting me know that they couldn't afford that or that they had moved on or anything. Basically, he didn't have the professional courtesy to let me know what was going on. How eager am I going to be to work with this person in the future?
Jason, what excellent advise. Especially about presenting yourself as the expert and "helping" others know how to present their case to their clients. I am very fortunate to have a team leader who believes in this and is readily available for advise when agents are in a crunch to "produce" a counter-offer. I appreciate your wisdom for an Active Rain Newbie!!
Jason,
Those were very interesting examples you used to get your point across! Another great post. I am also one of those who cares about his clients and who wants to get the deal done if it is humanly possible. It should be a trait that all good agents should have. That's it way it is surprising to learn about or run across agents who are allowing the client to set their own pre-conceived expectations.
They immediately fell in love with the place when they arrived, and the buyer actually told me that "I don't think you have ever had a client who was happier than I am right now."
Very cool testimonial.