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How Often Do You Say No To Prospects? When Does It Make Cents To Do so?

How Often Do You Say No To Prospects? When Does It Make Cents To Do So?

How often do you say no to prospective clients?

I mean it...a prospect emails or calls you and is looking to do, say, a short sale. Now maybe you have shunned away from short sales in the past, but today, in reflection of your bills and lack of immediate future business in the pipeline you decide maybe you can just do a few short sales, just to tide you over.

AND in this scenario you would have absolutely NO experience in short sales, no knowlege whatsoever. Would you take the deal to pay your bills and learn how to do a short sale on the fly?

OR Scenario Two

An army family is relocating to your area for 1-2 years tops before moving again and are considering purchasing. Average dom on market in your area, currently, is 9 plus months, and there hasn't been any significant appreciation for over 1 1/2 years.

Will you weigh their options carefully or will you pass GO and start collecting houses of interest for them?

Why do I ask?

Often, frankly, I am disappointed in the very system with which we work to make life "meaningful" and better for consumers. Being truly independent and not tied like a ship with an anchor to any vessel for the first time in seventeen years of working to serve real estate industry professionals I am enjoying a lighter load.

I have said no at least 7 times that I can rememberoffhand to prospective customers since last November and I am wearing that "no" as a badge on my sometimes tattered suit of business. That "no" doesn't pay my bills, that "no" doesn't buy my kids Ambercrombie and Fitch, that "no" makes me far from wealthy or rich.

But if I can't do this MY way than I have to chose another highway.

See the thing is, just like the real estate industry, vendors, coaches, specialists, go through the same trials and tribulations as real estate professionals to some extent. Albeit we don't have a "code of ethics" set by a National Association that we have to subscribe to, I like to think that all salespeople have a code that they chose to wear or not and that code is integrity.

If you offer services you should be able to deliver.
If you extol expertise you should have it.
If your customer doesn't need what you offer don't sell it.
If your customer isn't ready for what you offer point your customer in the right direction.
If your customer needs a true expert to help them and you are not refer your customer to an expert.

But, human nature and ego being what it is, most people tend to sell the sale on a wing and prayer. "Buyer beware" is how that's justified. Paperwork- disclosures, agreements, contracts- all CYA.

Let's talk about integrity all day long with more "complex" issues, albeit important ones, like MLS data, copyright infringement, code of ethics.

As marketers, as sales people, as professionals- what about the more "simplistic" issue of helping buyer A get what they need/want...not what we need/want?

What about our own gut check code of ethics?
What if we could just say "No"?
When is the last time that you said no?

Too many times in the past I was looking for the "yes". Now it's pretty black and white for me. I don't need to read between any lines. It's either Yes or No.

It's pretty damn simple.

How often do you say no to prospects? When does it make cents to do so?

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Posted by Rebecca Levinson, Real Estate Marketing Consultant on 05/22/2009 12:32 PM

Comments (60)

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Originally posted at: Real Estate Marketing Drips: How Often Do You Say No To Prospects? When Does It Make Cents To Do so?

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60 Comments on How Often Do You Say No To Prospects? When Does It Make Cents To Do so?

MAY

I usually never turn down business...But I will refer it!

Rebecca - I love the title. Sometimes it does make cents to turn away business, as it often can save everyone involved time and money.

Rebecca - I would not help either of those clients you described. I would refer the first one to someone who knows how to do short sales properly. I would refer the second client to an agent who handles leases.

Excellent post...where we get into difficulty, I think, is that we forget we are a "business". You're right, it is about "yes" or "no", and a business repsonse to our career will keep us making the "right" choices.

I just told a client 'no' last week. They wanted to short sale since their current home had lost value just so they could buy something else. It just didn't make any sense at all...aside from the fact that they couldn't buy for 2 years with a successful short sale on their record.

Rebecca,

I say no a lot. (Too much?) I cannot then in good conscience then refer the person to someone else but that is my personal call. I also don't accept referrals on short sales - with banks cutting commissions and all the extra work I do on them, I'm not sharing. Another personal decision.

Great topic!

I've told a prospective seller no on more than one occasion - all due to the fact that they wanted to sell their house for more than what it was worth. Saying no is good sense at times, indeed.

I say "no" all the time. In this market everyone hears about the good deals and the great deals, but they forget to put themselves in the situation. Where the "good" deals and the "great" deals may be so, for one individual and not so much for the other. It's tempting for any potential buyer to jump on the bandwagon to what everyone says with little of the received information being correct.

Rebecca... I hear myself repeating these words with prospective clients all the time, here is what I say "A no is as good as a yes" for me I don't like maybes too much work with no resolution guaranteed. So a simple yes is great or a no works fine too.

I do turn down business, but I also know they just go somewhere else who will do the loan they cant afford to Begin with.

It is hard to say no but it is well worth it in the long run!

I say NO quite a lot over the past couple of years. If they want to overprice, NO! If they want to go look at houses in 10 minutes, NO! If they won't get me an approval letter or contact one of my lenders, NO! If they are upside down on their mortgage and want to sell just because and the bank won't approve a short sale because there's not reason the sellers can't afford it, NO!

I found that I'm much more productive and less stressed when I say NO to the people I can't work with.

Valuing yourself enough to say "no" sometimes is the mark of a true professional in this business.

My thing is "If it don't make dollars it don't make sense!" Every transaction now is a draining, fatiguing, long process! I do have experience with short sales. I tell them the process and how long it may take (worst case scenario) and let them decide from there. Usually I get more referrals on other things because im not just telling them "no". I put the ball in their court by doing that. Some say no and change their mind, others insist on doing it. It all depends on how much time you want to put toward it. If you don't want to do it, say no. But you don't know how many referrals on other deals will come out of that one person you just turned down.

It is a bit tougher to say no on taking a listing as we are programmed to win, and sometimes winning may be losing. I have turned down 2 homes this past month over $1mm and it does sting to be honest; but I am glad I made the decisions.

I did have a call yesterday for a person wanting to sell a mobile home. Now, that one was easy.

We just took the CDPE course, (Certified Distressed Property Expert), they have a checklist that basically determines the sellers motivation to sell their home. Sometimes it's important to realize that people have money tucked away somewhere and they are not true short sale candidates. Short sales are a lot of work, I think clients have to be absolutely on board before you commit yourself!

Fantastic post! I'm getting a LOT better at saying no. There have been a few times when we couldn't agree on a list price (the sellers wanted to list 5 to 10% over the market value) and I had to say NO. There have also been a few short sales I had to refer out because I didn't feel like I had taken enough SS education yet.

"No" works for me, esp. if it precedes "BS", "grief", "drama" or "wasted time" :) And I like referring to agents who won't 'blow sunshine you know where' just to get the business in. To me, that is a professional.

There's a teacher in my area who says he tells people he can't help "I'd rather turn you down now than let you down later." I like that.

Scenario 1 - get a short sale expert involved. Someone's life, credit and future depends on it. Maybe 2 someones.

Scenario 2 - this is not a buyer, this is a renter.

I have only one listing right now - so, I say NO alot.

But, there is NO money in saying NO. Everyone is learning the business as they go because no two deals are exactly alike. And, as always - when you say NO, there are 500,000 other agents that will say yes.

We have found the enemy and he is us.

I say "No" once in awhile. For example with overpriced listings. I have learned the hard way but I have learned. I also do not get paid if it does not sell so I say "No" to trying to market a property that will not sell.

Rebecca

Have I learned the hard way in the years to decipher when to say yes or no. After spinning my wheels enough, or putting up with personalities that don't mesh, it is easy to say no at this time. The key thing is learning it early. Happy Memorial day weekend.

Good subject. Integrity is one of my highest values. I find that it is regularly put to the test in this conflicting, unruly, and slow market. I say this because I can point to it (or the lack, thereof) so easily in other "professionals" so this must be a reflection of something inside me. Plus I am deeply commited to serving others. I have to weigh whether it is actually of more help to "yes", "no", or "refer and move on". I don't know where I naively got the idea that this was an easy job.

An Marshall, REALTOR

Prudential Network Realty

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Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
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email:an.marshall@prudentialnetworkrealty.com

Just saying NO can be a liberating experience! Sometimes the money isn't worth the trauma you go through to collect it! :o)

I am good at saying NO, if it is not in the client's best interests. I was asked to list a home with questionable ownership recently, another agent offered to list it while it was straightened out, they finally understood that the listing is an agreement with the legal owner.

Rebecca, I say "No" far more than I say "Yes". Always have. I am very picky with who I choose to work with. Sometimes I'm sure I'm too picky. Especially when it comes to buyers. I would much prefer to go fishing than dsrive around looking at houses so buyers really have to win me over.

I rarely say no. I have lately a little bit because there are some people I just dont want to deal with.

I would have to say no to the first one and refer them onto someone who could truly help them. The second, would most likely be a renter. All though with the second case, I would ask if they were first time home buyers and could get the tax credit. From there, we might be able to have the discussion about appreciation in the area and if they would want to become landlords. But I would make sure all the i's were dotted and t's were crossed.

We like many of the other comments will refer something out if it is not something we want to handle -- but there are some situations where they simply should not be done, nor referred. Depends on the situation.

I said "NO" today and it felt good. Prospects don't always turn into income producing clients and I knew that these folks would not......

You have to be honest and ethical and be able to sleep at night knowing you did the right thing. We had a listing appointment today, and we told them that they should stay in the home for one more year till their pre payment penalty drops off, instead of bring that money to closing.

Rebecca, Congrats on the feature! It is pretty darn simple and for me I have to look at myself in the mirror. No commission is worth not being able to look at myself with pride!

No is a word that we need to be able to use more often. No about cutting commissions, no about the hours and or days we work, no about the deals we want to work. There is power and freedom in the word no.

I have recently come to terms with this...I worked a "farm" for the last 19 years, and after posting a market report for localism a few months ago, I realized that market is a dead horse, and I needed to quit spending time and money there....I gave all my listings away there...the new agent got $30,000 price reductions on 3 of the 4 listings. Guess What? NO SHOWINGS YET! Tells me it is a dead horse, and not to feel bad. I am referring anything in that area, and concentrating on my new market...It is getting easier to do as time goes by,.... And my new market is feeding me very well thank you!

Hi Rebecca -- I like your perspective and I agree with you. Life is much simpler this way. Life is too short to try and shoehorn everything into a category or way of doing something that sometimes, just doesn't make any sense.

Rebecca - Great post! Saying no is such a scary thing (especially for a new agent) but sometimes the best thing to do!

MAY

Rebecca, very thought provoking. I think one of the greatest freedoms of having your own business is the ability to turn down clients and sometimes even fire them...

great post. Your scenario two really gets sticky. One piece of advice I think we have to give people is not everyone should own a home all the time. I would tell this person that we need 4% per year apprecistion to sell in 2 years, and that that may be break even or less for orginal money out of pocket. it can be balanced with tax deductions, but give them just the facts as Jack Webb said in Dragnet.

Rebecca, I said no yesterday to a buyer that showed up in Ann Arbor, called my cell phone. I checked all my leads and she was not in any system.

She wanted to see condo's to rent for her daughter yesterday and today.

i am at the lake, my buyer agents are booked solid.

So I told her NO.

Why wouldn't see call at the beginning of the week and ask me that, I would have found someone.

Rebecca

I am one of those agents that say yes before saying no. Probably because I believe I can really help one way or another, but when short sales were about to explode I went with a trained expert to see a short sale seller. A nice lady with 3 girls. After talking with her for an hour, she decided to save her property and not do a short sale. We encourage her to do that and helped her out. She saved her property. She lives in one unit and rents the other two.

After this experience, I decided not to get involved in short sales mostly because with such a complicated process I could not say for sure I could help and also because I could not answer the question of how her credit was going to be affected if she did the short sale. After a few years I still have not been able to ascertain that the credit of the short sale seller is not going to be damaged or what percentage of short sales really close.

I think Realtors got involved in short sales due to the difficult market and their inability to make money any other way. In the process, many Realtors made killer mistakes, but also, some of them learned to handle them somehow effectively.

Isaac Bensussen-www.besthomesinlajolla.com

Rather than saying "NO" I counsel buyers and sellers with current market conditions. I use positive verbiage when I say no such as "you will have to list your property with another agent if you want to list it above $xxxK", "you may want to postpone your plane trip out here due to lack of inventory", "we are booked solid for a week and it is impossible to work with you right now" or "I know a great agent who does short sales."

I have declined business before, because sometimes it does not make cents . . . great topic.

There is a Naval officer who was going to buy a home, but since she's only going to be here for 2 years, has elected to rent. I did not turn her away but offered to help her. It's not always about the $$ but building good will and that pays off in many ways.

Sharon

Great post, Rebecca! I just had this conversation yesterday in which two of my co-workers were not saying 'no', but should. I sometimes feel that since the economy has hit South Florida harder than in most other areas, agents are more concerned about losing business than they are thinking of the opportunity costs. I admit, I'm a little guilty there as well.

Thank you all for your candid responses and I have unplugged a bit for the Memorial Day Weekend so I will jump back in and respond individually, but wanted to thank you all for your candor on this topic.

I know that personally the times when I should have said no but said yes instead I was especially sorry, times I said no and knew I needed to say no I felt really good about my decisions.

So finding my compass to point myself into the right no's and the right yes's for me and my business was especially important from the get go. From real estate professionals to the professionals that serve the industry we are faced with these yes and no choices daily.

The reason I feel it is so important is because of the repercussions- the impact the yes/no decisions have on people's lives and I am not comfortable with the old standby of buyer beware. If you lead a client to the water, you should make sure it's the right water for them to drink.

Rebecca, I am proud of myself for saying no quite a bit this year. I have said NO to several listings, because the sellers were far too off my mark. Last week, I told a prospective buyer no. They MAY buy in a year or 2, but in the mean time want to come up for a WEEK, and see half of Alabama. She was rude more than once. I don't need that. I referred her, with a full disclosure to the agent, that this person has a less than shining personality and may never buy. They took it, lol. No thank you!

Life is too short. We do have choices, just as the buyers and sellers do!

MAY

I say "no" when I honestly can't meet their needs and wants. I am in business to be successful - and if it is something that I am not going to be able to give it my all, then I walk away. It takes a long time I think to be able to say "NO!" but I also explain to them why I am saying "NO." If I don't feel I can do the best dam job for my client - I walk. I am out there to give the best I can. I am not going to be able to please 100% of the people all the time and it can be a hard fact to bite because we are human and no one likes the "negative" or rejection. Believe in what you do and do the best you can do-standing up for yourself as well. Everyone wins in the end. I see it all the time with agents who will do things because they want to please EVERYONE- well I think it's impossible to please everyone and it's a matter of choosing what is going to work for all parties - even if it means saying "No I am sorry I am not going to be able to help you..."

MAY

Teram Honeycutt- Many of my no's were referrals.

Jason- Too true.

Jason C.- Thanks for answering.

Sea to Sky- It is hard in a service industry sometimes to not wax and wane with human emotions, but we must stay the course and make those business decisions for the best outcome of everyone involved.

Christianne- Good for you. That doesn't seem to make sense.

Irene- Thank you and agreed, some no business isn't good business to refer.

William- Those are the kinds of no's that save sellers money in the end.

Xinh- Yes, my sister is a first time buyer in the market right now and until she got in touch with the right lender and the right real estate agent it was quite messy.

Steve- "maybes too much work with no resolution guaranteed- Amen.

Kevin- Best that be on someone else's plate than yours.

Bridget- Sometimes it is hard, but gets easier with time.

Donna- Defining your market with Yes's and No's is a great way to work with the right clients and be less stressed.

Kate- Saying no is about self worth- you are right.

Kwesi- There is more behind a "no" absolutely. My no's involve an explanation. The no's I have had most recently have been because the client would be better doing their step 1 work first. I know some are amazed that I wouldn't just get their business....it's not easy in any industry including marketing these days...sure I like to eat well, but not at the expense of others:-)

Tim- GOOOOD for you. I am sure that must have been hard.

Peter- I like how they have a checklist and good point you make about true short sales clients vs. another way out short sales clients.

Kerry- Some things you do truly just learn on the job, but some you just shouldn't because it would be at the expense of others.

Candice- I don't refer business to ppl. who just kiss up either. I like what the teacher said. Good words to stick by.

Gregory- Depending on why you say no and what you do after, you can bring business in, usually better business, by saying no. Not immediately, but in time.

Lana- Good for you. That kind of situation can be mind numbing.

Tom- I don't know that I learned to say no early, but I do say it now:-)

An- No easy about it:-)

EXIT Hill- Very true.

Virginia- Yikes. I think these times are now the times for us to put the lessons of the past into action. Before many said yes often because it was possible, even though it might not have been "right" or the "best thing" now is the other fight. Saying yes because of being afraid there won't be something around the corner to cover us is know the enemy.

BB- Well fishing can be a better option, no?:-)

Chuck- We all have a business that we have to pay attention to. My thing is I am not a catch all- I am not a webmaster, an SEO expert, a life coach. I am a marketing consultant and as such I will not lead someone to step C if they haven't finished Step A.

Prime example. I have had clients come to me for my blog tune up program, but they don't have a website yet. So if they don't have an internet store, a hub, than there is no point in setting them up on blogging. And often they really need to understand why they need an internet store, so that is a big conversation.

Kim- Thank you for answering the questions. I am liking seeing these answers also.

Bob and Carolin- Absolutely right on. Imagine had there been more of these 5-7 even 10-12 years ago. These no's.

Linda- Bet your shoulders felt a little better for the wear.

Heather- Good on you. And yes it's not always easy to walk away from a sale. It just is.

Marchel- Absolutely right.

Mark- Saying no can be liberating and can earn the respect of future clients also.

Pat- I am GLAD you got rid of the meager offerings and now you are being well fed.

Chris- And that is such typical old skool sales- shyster style. But in great old skool sales there was pride and a value in the client also, the product and the service.

Jeanna- True, but if a new agent starts to stay no, they won't feel as scattered.

Joanne- Yes, and the ability to send a client another way in mutual best interest.

Joe- True and more and more over time I am feeling like it's not best for EVERYONE to own a home or a business for that matter.

Missy- So you are saying you have a value on your time and that of your team's....hmmm....that's something:-)

Isaac- WHen there's a will, you can learn most everything- HOWever, in the process of learning, a critical client shouldn't have to suffer and that's one of the reasons I bring up scenario one.