There is an ad on TV that is about saying "Yes" to everyone! It may sound like a great way to do business but in real estate it's maybe not such a smart idea. The definition of the word 'qualify' is "to prove capable or fit; meet requirements." If a person is not fit to buy, or even rebuild their credit, wish them well. You've done your job! If a seller is in denial about the financial position they are in, do not enable them! Tell them the truth, that they may need to speak to an attorney to best advise them. Do not play lawyer! Wish them well and move on!
The greatest threat to our time as a real estate professional is our time. If we waste it, we cannot help others that are better prospects. In the last several years everyone was allowed to get in our cars without too much hassle! "Not pre-qualified? No problem just get in!" There will be some program that the buyer will qualify and I can sell them something. The same was true of sellers. Over priced? Let's just try your price and see what happens. You don't want to pay my commission? Not to worry! I have loads of alternatives! The problem for all of us is that times have changed tremendously in the last few years. Over 50% of buyers probably no longer qualify to buy a home since there are no DPA programs, and 100% financing. Sellers have to realize that it does not matter what they paid for the home, or what they owe. If they bought high with no money down, or rolled tons of extras into the property on credit, or if they used their home like an ATM...most likely they are upside down for the next ten years! If they want to sell their home, they may have to bring cash to closing, of face foreclosure or a short sale. We cannot help the fact they made a costly personal mistake. There are no other creative solutions that are really legal or will produce real results other than bare the burden of thier actions. We are not social workers, we are sales persons.
Traditionally in real estate before the boom times we qualified buyers and sellers to see what their motivation level was, and determine if they were "Hot or Not!" Qualifying buyers and sellers is not intrusive. It is smart business sense. You do not have to feel guilty to now waste your time with a buyer that cannot buy, or a seller that will not sell. Qualifying potential clients is merely a grading system so that the agent does not waste their time on a road to nowhere! If you already know you have no options with your potential clients, why would you waste your time beating the square peg in around hole? Yet many new agents are routinely working with unqualified buyers, or listing homes that are upside down by just adding the commission to the price! That does not change the facts. The buyer cannot afford to buy, and the seller is dreaming!
So when buyers or sellers ask the following, you can just say no!
- I want to look at homes, but I do not want to sign a buyer agency agreement!
- I do not want to talk to your loan officer; I know what I can afford!
- I am not talking to you about my personal finances.
- I will not give you my personal information, just meet me at the vacant home!
- I do not want an agent, I just want you to open the doors!
- I just want the addresses so I can drive by the homes.
- I do not have any money to put down, and I should get a job shortly.
- I want to list my home at a much higher price than you advised.
- I will not paint the home, paint or clean before I list it!
- I will offer a credit for carpet and paint.
- The price on the listing is firm!
- I want to list my home as appointment only, no lockbox and no sign!
- I want a 30 day listing. (market time is 145 days)
- I cannot pay your commission!
- I am not going to leave the home while it is being shown.
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Jim - Great post! It is important to know when to say no. You covered the bases well with your examples. If they can't be candid with us how can we help them - we really don't know what they want and if they can accomplish it. I'll never understand why so many flakes are attracted to the real estate industry, but it is a reality that means we must sift through the prospects, qualify them well, and say no to those that are simply playing games. Thanks for the reminder.
Lisa Wetzel CDPE (RE/MAX Realty Affiliates) You are so right. In real estate we espouse to be professionals but we are not. Doctors, lawyers, CPAs ask questions before proceeding. In real estate we just plunge head first into danger! No questions asked!
Jim, Thank you for this post! Can I have your permission to print this for my use? I have a not learned to just say NO to everything yet...lol I am on my way :O) and this shall help me! I have had clients, buyers, seller me hoping in every single example you wrote. I had to start laughing at myself. Thanks again.
June
PS... I flagged it for a feature because I think its a great post for newbies like myself.
Jim:
A professional must control the transaction. That includes all business aspects.
Richard
Jim, yes I remember that slogan. It works and all your points are well taken. The big one for me is in taking listings and writing offers. NO, we are not going to list at that price and NO we are not coming in THAT low.
Sounds like "tough love", but you are so right. Sometimes the truth hurts, and that time is NOW.
June Tassillo - Your Realtor for Life! in NC (Classic GMAC Real Estate - Franklin, NC 28734) You may print it for personal use. Since I write for Realty Times. Com I may use this as an article later, and that is copyrighted. Thanks for the mention for featured post.
Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates) You are so right Richard, we must always be the professional!
Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate (Keller Williams-Ann Arbor) I think it is the best way to do business...objectively. Once we let our emotions rule we are no good to anyone. What is the point of saying we are professionals if we cannot act like one? There is no point to taking every listing, and working every buyer.
Tom Boos (Sine & Monaghan GMAC Real Estate) Tom, I am sure you grew up teh same as I did wiht the lessons of "Honesty is the best policy!" Some people will accept the truth and others will not want to hear it. The best clients are the ones that hire you for sage and sound advice...they also listen and act on the wisdom you shared.
Ought to turn this into a poster to hang at the office with big letters spelling NO.
Charles Stallions Real Estate 800-309-3414 Pensacola, Fl. Lol! I agree, but the broker may say "no!"
Having a pulse meant being prequalified a couple years ago, but having a good credit score and cash today should make the realtors heart pulse today!
I have never had a buyer be coy about proving the finances to purchase before looking , and I have never had any lookielou's for more than 2 minutes because if they are coy about proving ability to purchase they hear the word NO from me and then a dial tone.
PHIL - That is the way it should be. Most agents are too afraid to ask questions!
I think there is a direct correlation between the most efficient agents and those who are comfortable with using the word "no".
You said it best, "The greatest threat to our time as a real estate professional is our time".
Here's another one: "I'm sure that if you did an open house, this over-priced home would sell."
Great post Jim. I admit, for me, "NO" got a lot easier when the gas prices were crippling last year.
Jim - I think years of experience dictates how often an agent can say NO. I actually learned this early on when I was a new agent and I would watch other newbie agents I started with spin their wheels while I surpassed them in sales because I weeded clinets out.
great post Jim...I'm quickly learning the value of time as it relates to business matters and how to most efficiently use it...we only get so much.
Mark MacKenzie Real Estate Planning Thanks Mark! I value your opinion greatly!
Ann Heitland, Associate Broker, CRS, GRI , ABR ~ Flagstaff Real Estate/Community (Team Heitland at RE/MAX Peak Properties) LOL! :) I definitley say "No" to holding open houses in Atlanta these days! Especially overpriced ones! Good one!
Ellie McIntire Real Estate in Howard County Maryland (The McIntire Team of Long & Foster) Ellie you were so right. Last years gas prices woke a lot of persons up! It was easy to say "No" when it became that painful.
Carol Culkin (Houlihan Lawrence Realty) Boy you nailed it. Some could consider this an integral component of time management, and increased productivity. If we spin our wheels on worthless leads, we are too worn out to bring in the big fish!
Tom is right: Tough love is it. I used it with my kids and I use it with my clients. Yes, I may lose the listing the first go-round, but I eventually get it and... SELL IT!
The Buyers who need a taxi? Call one! I'm not it!