I see many posts about how people qualify the customer by asking that the customer do some action or present some letter in advance.
For instance, comments such as, "I don't show houses to anyone that is not already pre-approved. If they are serious, then they will have already done this. Otherwise I don't waste my valuable time."
Hmmmm. Two questions:
1) Would you want to do business with this person?
2) Is this person you?
What works for you as a buyer? My last four property purchases I did not have a prequalification letter but was very capable of making the purchases... and did every time.
Am I an exception? Maybe. But maybe not as common of an exception as you think.
As a buyer, I had specific, defined and realistic criteria including price range, locations, general size, must-haves and like-to-haves. And money. We also did not bother a listing agent until we had already looked at info on-line and driven by the house on our own (thus ruling out a number of houses without bothering anyone).
At the same time, first-time buyers are seeking your help as an advisor, a mentor, a guide. With very little time investment (if you manage the process properly), you can start a healthy relationship and guide them through the process. After all, if they were good at this, they wouldn't need you!
And if you are dismissive of first-time buyers, who will they tell? Let's see... their family, friends, co-workers, neighbors, and most anyone else that they talk with about their experience with you. How many of these people are, well "were", potential clients?
Did my lack of pre-approval make me "uncommitted?" Let's see: I went on the market to buy four times in the last few years and bought properties each and every time. Be careful what you use to assess "committed" at your own risk.
You see, in real estate, some of the ideas agents use to qualify clients will run off the uncommitted and unqualified buyers. But these same approaches will also run of the most exceptionally qualified and well funded clients too. These buyers will see you as a waste of their time and see that you are more focused on your time than theirs. As a customer, you would do the same, wouldn't you?
As a buyer, it was interesting to see listing agents behavior. Some blew me off, others were great. Initial impressions were important. Few made lasting impressions. If anyone is interested, I'll share what worked and what was a turn off as a buyer.
"Be the Buyer" and you'll understand more about how you should operate to be the kind of business you'd like to do business with!
I think as agents we need to do our due dilligence to protect our time, and sometimes that will call for this. How about the Buyers Agreement to work with you exclusively? I haven't ever used it, but after showing 40 homes to a couple a month ago, and then them turning around the next weekend and writing an offer with someone while they were "out driving around", granted lead from internet, but nonetheless, 40 homes, prompt on calls, e-mails, patient, flexible on schedule, and I kicked myself for not having one signed after the first evening of showing 10 homes when I found that out. At least then I knew where I stood and my time would have been protected.
There are ways of doing things for sure without being arrogant about it, and the more we work with people the more signals the flaky ones let off.
Glen, I always like to step back and take a different perspective as you do in your post. Thank-you for the reminder!!!
Yup, sometimes you do have to step back and analyze your business. Is there room for improvement?
Hi Heather,
You can be helpful, professional and still have reasonable boundaries. The challenge I see are those that create the boundary before there is a relationship.
In your instance, show a house or two without an agreement, but not 40. The first one or two lets you build relationship, get a feel for them, show your value and show you expertise. Tell them you would like to continue to help and one of the best ways to do this is to be sure you all understand how you can work to their advantage.
Give them plenty of room to decline to sign a buyers agreement (pressure is BAD). I tell people "I look for people I can do business on a handshake, then we sign paperwork because no one's memory is very good, including my own sometimes."
With an buyer's agreement, you will be in a better position to spend more time researching property on their behalf, able to confer with listing agents on their behalf and it will be clear to all that your interest is their best interests.
Again, be the buyer. If the agent requires an agreement to show any house... not so good. Bad relationship step. Likewse, if an agent will show 40 houses without an agreement, why not. There appears to be no reason to volunteer to sign the agreement.
So, it sounds like you are learning. There is a reasonable method that builds relationship and still "takes care of busines." Each case is different but we learn. Thanks for the post!! G
Hi Paul, Great to hear from you, as always. My posts help serve as reminders for me too! G
Hi Angelia! Room for improvement? Always, in everything! Thanks! G
Glen,
Why are you using the listing agent for your property purchases? Did you have a great experience and felt that the listing agent was always working in your best interest?
Good post and food for thought.
Patricia Aulson/Portsmouth NH Real Estate
Great to look at the other side of the business. Thanks for reminding us just how important it is to see all sides of the business.
Hi Ross, Great question that makes sense, particularly in the AR forum! Two reasons, one of which may not be popular.
First, we have family experience in title insurance, closings and tools to easily access public records. In other words, much of the work a Buyer's Agent would do, we have the tools, experience and understanding to do ourselves. And it is more efficient to do this ourselves.
I want to be clear though... we are an exception. Hardworking, seasoned, Buyer's Agents provide great value to those that do not have our resources.
Second, it is my belief that, allowing for a few exceptions, the commission system for real estate favors the buyer where agents are concerned. On most deals, even if it is subconscious, it is more important for most agents (buyer's and lisiting) to get a house sold than to get the best price for the house.
I want to point out that this focus on selling faster vs a higher price can still be in the interest of stubborn homeowners that will spend more money keeping a house on the market than just dropping the price quick early in the process.
So, when I am a buyer, I believe that most listing agents work is really more to my advantage than even the homeowner for the negotiation and closing process. Adding a buyer's agent is just "piling on" and adds another level of unneeded communication (unneeded for us... we understand the paperwork and process) that slows things down.
I also think using the one agent reduces the emotional, confrontational issues that can sometimes develop between two agents where each is trying to "win" something between themselves. Does not happen often, but I think we've all seen agents privately (and sometimes publicly) criticize the agent on the other side of a deal. Sometimes it is even deserved but the risk of this type of conflict does not help me as a buyer with my information resources and experience.
Probably more than you wanted to know Ross, but wanted to be sure my answer had enough info to make sense. Thanks for asking... great question! G
Hi Patricia! Thank you for your kind words!! G
Hello Pat! You may find this post of interest then... Perspectives. We all have ONE. Successful People have MANY!
Thanks! G
Hey G, your response to Ross could have been a post in its self, haha. I can relate to your points, in the responses and the post. Good post!
Thanks Matt... yes, in working to be thorough, my answers can get long. Glad it made sense and appreciate the comment!! G