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Spring Cleaning! Time To Let Some Folks Go...I Think.

By Chad McDowell

Mortgage and Lending with First Time Home Buyers, Pre-approvals, Fixed Rates 172223

June 04, 2009 03:51 AM

Why is it so hard to let go? Or maybe a better question...why is it so hard to say "No"?

We all have them, those "clients" or "partners" who are demanding of your time, a drain on your energy and resources, and will cost you more then they will ever make you. So, as I go through my database and start updating some notes and spring cleaning...why do I struggle so much too just hit the "delete" button??

The easiest answer is...I like 'em. I have "referral partners" that have never referred a legitimate deal. But I like chattin' when they call. Every once in a while they'll come across a really "nice" person with some credit challenges, aka 470 credit score,and they will send them too me for my free advice. And I enjoy helping people, so I dont particularly mind. But come the spring and I am once again updating my database and I notice one person has referred six clients in the last year...NOT ONE of them was current on their home or had a credit score over 500. And he's not then only one. I have come to realize that probably 90% of my current database could NOT buy or refinance a home in today's market.

And we all know the birds of a feather rule. Or as it gets put in real estate circles "five star prospects know other five star prospects"...the opposite is also true. So...with a database over-loaded with one stars, I am just creating additional work for myself.

So...what is the solution? I cannot count the hours spent giving out free advice on credit repair options, even though in my experience one out of every hundred my actually FOLLOW that advice. It's the one person you help that keeps us hanging on and feeling like we're making a difference.

But I feel like I need to shift with the markets and hit that "delete" button on some dead weight. I'm a sub-prime guy by experience and by preference...but there's no banks any more for those clients. So its up to me too go Darwin and adapt or die out, right?

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Anonymous

Marte Cliff, Copywriter

Thank you for this post!

You just inadvertently gave me a pep talk I needed to hear. As a copywriter, I also have people who are a drain on my time, but add nothing to my bank account. I need to delete them.

One idea for you - why don't you write a little guide with your free advice? Just e-mail it to them with a note that if they have questions after they begin putting it to use, to give you a call.

Of course, you could also put it out there for sale...

(Writers think that way!)

Best success with your Spring housecleaning!

Marte Cliff, Real Estate Copywriter

writer@marte-cliff.com

Jun 04, 2009 11:39 AM

Virginia Hepp - Mesquite NV REALTOR

Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV

Mesquite NV Homes and Neighborhoods - Search MLS

I have a hard time letting them go - sometimes it is just feeding my ego to think that I can help people even when I know that they won't help themselves.

Jun 04, 2009 11:44 AM

Dana Wilkinson

Connect Realty, The Woodlands, TX - The Woodlands, TX

Broker-Your TX agent for The Woodlands-Spring-Conr

It seems like the ones with the worst credit have all the horror stories...and they want to tell you every one. Yes, it is a real drain, but I will give a bit of time, and provide them with information that I email. I never hear from most of them again, since they finally understand that they cannot buy until the credit score zooms up past 580...and they just can't get there with their "habits".

Jun 04, 2009 11:55 AM

Gary Coles (International Referrals)

Venture Realty International - Las Vegas, NV

Latin America Real Estate

Excellent post. It applies to every part of the real estate business. As an agent, I have had buyers that took so much time (and never did qualify and buy) that I found I did not have time for my best buyers and for prospecting. As a broker, I have had agents that were poor producers but always took the most time.

When I think of friends who work in title and escrow, who are loan officers and insurance agents and they all have the same problems.

it is hard to let go of any business even if it is bad business. But, as you say: it is time for some spring cleaning. Thanks for reminding me.

Gary

Jun 04, 2009 11:56 AM

Jeff Kennedy

Hot Springs 1st Choice Realty - Hot Springs, AR

Amen Brother! We've also been doing the same thing lately ... getting rid of non-sellable listings. It's feeling so great to rid the extra burdens.

Jun 04, 2009 01:28 PM

Dee Gilbert

Premier Properties Real Estate - Fort Rucker, AL

Thanks for the heads-up. As a realtor I also have been guilty of sending underqualified buyers to my lenders, but I also try to balance with highly qualified ones, although I must admit sometimes, the scale isn't always as balanced as I'd like. Some of my most qualified clients are very proactive, and have already gotten their own lenders. But you've made me think twice about the idea of screening my clients before sending them to my already overworked lender favorites.

Jun 04, 2009 01:49 PM

Anonymous

Courtney Hagins (RE/MAX Island Realty) Hilton Head Island

Oh so true! I have just started with the trimming...I cringe when I hit the "delete" key on the prospective customer or the "never will be a true client". However, after it is all said and done, I feel relieved. Time to clean out the data base, narrow down to my true spehere of influence, and set up the A, B, C (etc) client list. My time will be must more productive!

Jun 04, 2009 02:08 PM

#12

Susanne Novak, ABR, FIS, GRI

RE/MAX 24/7 - Columbus, OH

This is so true, and for me, your post came at the most perfect time. I have trouble letting people go once I have invested time and effort, even when I come to the conclusion that absolutely nothing will make them happy. It's not me, or the effort I put forth, it's their nature. Their glass is always "half empty" and no house will ever be perfect. Thanks for reminding me to get over it and let them go ...

Jun 04, 2009 02:33 PM

Laura Sargent

Carolina One Real Estate - Mount Pleasant, SC

Deleting is tough - you feel like you've invested so much time and maybe one more conversation and they will be ready - but people do what they want when they want and I think it's important that they see you as someone that works to give them a loan not someone to just call and get advice

I recently deleted some potential clients and it's open my time to focus on some great opportunities

Jun 04, 2009 11:39 PM

DriveBuy Technologies

DriveBuy Technologies - Austin, TX

If they're genuinely friendly people whom you like, why not just move that relationship from business to friendship? This way, you'll still enjoy speaking with them, but it won't take away from your professional efforts.

Jun 05, 2009 02:19 AM

Kent Dills

Broker, Dills Real Estate - Bellingham, WA

Real Estate 817-495-8028, Bellingham, Washington

Chad,

You must be a "people person" to feel so bad about getting rid of the dead weight. But, you're going to have to get over it as a business owner who works on a commission basis.

Facts are facts, and the data speaks louder than any words. Remember the 80/20 rule and make a business decision. Think of the people you've got at home that need food and clothing and then...

DELETE, DELETE, DELETE.

Out with the old, in with the new. You're on the right track!

Kent

Jun 05, 2009 03:41 AM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

You make such excellent points and things that I struggle with too. If you don't nip those time wasters in the bud you'll go the way of the do-do bird yourself (or is it bird do-do?). You are in this business for the money right? You want to provide your family a better life right?

Jun 05, 2009 04:18 AM

Robert Ott

Century21 Beal Inc. - College Station, TX

I never understood why people hold on to the "No Sale Possible" sellers/potential buyers. Any lead coming into a broker should be worked. When it is obvious the lead is a "No Sale Possible" let it go. The old school way of trying to work the lead into a sale regardless, is DEAD! wake up to the 21st Century! If a sightless person walked in to your "Learn To Become a Licensed Pilot" business with his "seeing-eye-dog" what would you tell him?

Robert

Jun 05, 2009 04:43 AM

DeAndrea "Dee Dee" Jones

Samson Properties - Manassas, VA

DMVRealEstateChick

Question: Are you sending any referrals back to this agent?

Maybe she sends her million dollar clients to the loan officer that sends her back referrals and treats all her referrals the same. I have many preferred lenders, those who get the best referrals are those who refer clients back consistently. Everyone else goes on an even rotation. And if you are a non-referrer you may end up with all low qualifiers, but at least I am sending leads. Many loan officers expect you to work with them exclusively but never refer a client, friend, or associate back. Agents that pay for pay per click, list router, and have listings marketed on the Internet are often bombarded with clients asking to be referred to a lender, and the marketing is expensive so who ever responds should be treated equally. The fact that this agent picks up the phone to send you any lead you should be grateful. If you do not need her business and its draining you then SPEAK UP and she can pass the leads on to a loan officer who can do a little more hand holding and may greatly appreciate the lead. My top lenders are those who treat every lead the same, they will smile and bend over backward for my $100,000 clients as well as my $10,000,000 clients.

Jun 05, 2009 07:11 AM

Kathy Opatka

RE/MAX CROSSROADS - Ocean City, MD

Serving Ocean City, MD, & The Delaware Beaches

Chad,

I love that statement.... "Go Darwin... adapt or die out!"... and I'm going to clean out my database, too!

kathy Opatka

Jun 05, 2009 07:59 AM

Olga Diaz

COLDWELL BANKER TOMLINSON - Pullman, WA

Potter, Mng Broker, CRS, ASP, ePRO, ABR

Chad, I understand how hard hitting the "delete" button can be. I have a hard time doing this also, but what I try to remember is that this opens the door and gives me more time for new clients that will need assistance and advice. Have a nice weekend.

Jun 05, 2009 10:02 AM

Mike Henderson

Your complete source for buying HUD homes - Littleton, CO

HUD Home Hub - 303-949-5848

It's so hard to turn down any potential business, so far I've been very selective.

Jun 05, 2009 04:59 PM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Chad. I refer all of the one and two star cliets to new Agent in my office. If they miraculously find a way to fix their credit or find a cosigner...I get half of the commission. Don't delete them...use them as learning experiences for others...After all...it isn't costing you any time or money and the other agents will love you for helping them out. And when one or two a year actually produce results...YOU GET HALF! Sounds like evolution to me ;-)

Jun 06, 2009 04:55 PM

Kate Wheeler

Country Homes and Land Murphy NC Realtor - Murphy, NC

CCIM - Murphy NC Real Estate for Sale

Chad - As a professional real estate salesperson, your TIME is your most valuable commodity. If you spend it with people you know from past experience aren't going to produce sales or saleable listings, don't kid yourself thinking you're actually working. I agree with ome of the other comments - talk to those folks during your social time, not your work time.

Jun 12, 2009 02:38 AM

albarosa simonetti

brillante home decor - Vancouver, BC

Great post. Thanks for the information.

Jun 14, 2009 06:54 AM