Ways to Lose Your Client's Trust

This is a short but accurate article from Realtor.org outlining 3 mistakes a Realtor can make to quickly lose their client's trust.

I can relate to Rule #3:

Saying what your client wants to hear. When I hired the father of one of my son’s friends to sell my last home, I asked him if we could get a very ambitious price for it. He said what I wanted to hear: "No problem." Well, he got the listing but couldn’t sell the house.

So I brought in the top salesperson in town, and she promptly told me what I didn’t want to hear: "Replace these windows and lower the price by $125,000." She sold the house in less than a week. I recommend her to everyone.

I know for a fact I have lost listings to competing Realtors because I told the clients what they didn't want to hear. But I also admit that I try and educate the client and can forget that building repoire is also an important part of earning someone's trust.

Anyone out there have similar stories? Like when you hired your friend only to fire them 6 months later, hired a top producing agent, they show you statistically why you need to reduce your price by $100,000 and the house sells 30 days later?

I'd love to hear them.

How Successful is Your Realtor?

I'm a huge advocate of buyer and sellers making sure they are working with a successful and professional Realtor. Many buyers and sellers use a family member or a friend. Or even worse, a friend of a friend. The sad part is that those buyers and sellers never know if they are actually working with someone who knows what the hell they are doing. This blog post from a Realtor in Western New York addresses this issue and does a great job of explaining why it's important to ask your Realtor, "How many transactions did you close last year?"

If your Realtor closes 2 or 3 deals a year do you really think they know how to negotiate on your behalf to get you the best deal possible? Do you think they know and understand their market and sales statistics? Real estate contracts and amendments change all the time and if someone isn't constantly utilizing these legally binding documents do you really want to put your transaction in their hands? Or would you rather work with someone who closes 30 or 40 deals a year?

This seems like a no brainer to me but yet there are many buyers and sellers out there right now who are working with a subpar Realtor. And I don't blame the Realtor as much as I blame the people who chose them.

Welcome to my Soap Box

When people are in deep legal trouble do they price shop attorneys or want the best of the best to represent them? Moreover, do you want someone who wins more cases than loses them? Of course you do. If a loved one has cancer are you going to send them to a cancer specialist or a dermatologist? Or maybe go with the doctor just out of medical school to give him a chance to "get his feet wet". If you won the lottery would you hand your money over to the kid who just got his MBA or the experienced financial planner with a proven track record?

These are pretty rhetorical questions and may seem ridiculous in comparison to selling homes but it's not. Selling and buying a home involves what is most people's largest financial asset and comes along with plenty of legally binding contracts. So why would a buyer or seller not want to work with the most highly qualified agent? Some might say, "If you are a licensed Realtor shouldn't you all be qualified to represent your clients equally?" Are all attorneys and doctors equally qualified just because they made it through medical or law school? No. This same logic applies to almost all professional fields including real estate. But yet I keep running into people who use a "friend" or an "aunt" to help them with their home purchase while all the time telling me I am much more professional and successful. My friend and colleague Lydia Player says it quite nicely,

"The only problem is, most folks hire someone they know or someone who is recommended to them - regardless of ability."

I couldn't have said it any better myself. Is there a solution? I don't know. When emotion gets mixed up with what should be a business decision, I've learned that all bets are off.

Are Realtors or Sellers To Blame For Bad Service?

A few days ago I posted this article about the couple out of Carlsbad, CA that is suing their real estate agent for allegedly misleading them into paying more for their home than they believe they should have. Today, the Barry's over at Real Estate Radio USA ponder whether or not the real estate industry is already doomed and critically wounded due to consistent poor public image (Ranking last in "Prestigious Occupations Poll") and the 24/7 availability of real estate listing information.

But doesn't some of the responsibility lie with the consumer in choosing their respected Realtor? Aren't they interviewing them and asking them the pertinent questions like how much business they do yearly? What is their marketing strategy? Do they have a team or a full time staff? People don't ask these questions and most clients don't get the service they would get if they worked with a true professional. So instead of admitting they made a poor decision they sue or complain about how all Realtors are terrible. I posted this comment to them and I'm hoping I get a response.

I would also like to hear what you think about where the responsibility lies with the consumer and how they go about choosing their real estate professional. It’s unfortunate Realtors have such a bad wrap and I will not argue that there are MANY Realtors that deserve it. But isn’t the consumer the one who chooses the Realtor they want to work with? Just as the Barry’s choose their Realtors, consumers have the same choice and MOST get it wrong. They don’t work with the most business savvy or the one with the best sales record. They choose to work with their “cousin who sells real estate part time” or they use their “friend" who sells 2 homes a year. Shouldn’t the consumer take some of the blame for not doing their due diligence? I mean this lady allowed her agent to process her loan? I can give you hundreds of examples of people who list with agents that don’t even have email addresses much less know how to advertise a home on the internet using multiple pictures or a virtual tour. I would love to see someone confront those sellers and ask them why they chose the agent they did while bypassing the successful tech savvy one.

I have been passed up by potential clients for a myriad of reasons and in the same breath admit I am the more professional choice but yet, "I thought I would give my neighbor a try since she lives so close", or "This Realtor's office is closer to where I live than your office". Shouldn't they be saying, "The other Realtor has sold $10 million worth of real estate more than you in the last 12 months" or "The other Realtor has a better marketing strategy and a full time staff"? And how do I tell someone they're making the wrong decision without sounding like sour grapes? Help! Someone please enlighten me.