Real Estate Blog - What's An Agent To Do When the Seller Wants More?

Home : Blogs : Margaret Woda, Maryland Real Estate : Maryland Real Estate

What's An Agent To Do When the Seller Wants More?

No, not more money... more expertise than I have.

I can sell a run-down home, even one that must be sold "as-is" because the sellers have no financial resources for repairs...
I can sell an over-priced home - not always, but often...
I can sell a home when sellers are distressed for any number of reasons - whether it's divorce, job loss, illness...
I can sell a home in a buyers' market or sellers' market, during inflation or a recession, war or peace. I've encountered all of these during my 35+ year real estate career.

BUT please understand...

I cannot provide legal advice.
Or accounting advice.
Or debt remediation counseling.
I cannot counsel anyone regarding their personal affairs.
I cannot make decisions for other people and their family members.
And I doubt I can sell a home that is extremely run-down, cluttered, out-dated, over-priced and located in a neighborhood that is generally run down and declining in both demand and value. (At least not when the family has so many questions about their legal options, their financial responsibilities, and uncertainties about the next step for the sellers.)

I may be good at what I do, but there are limits!

Homeless

When faced with this situation today, I declined a listing. I provided the name and contact information for two attorneys who are qualified to advise the sellers and a website address of potential destination locations for the sellers. I even promised to be available for them after they get the professional advice and counseling they need and there is a plan for where the sellers will go or what they will do if the house sells.

I really hope this family doesn't hook up with an irresponsible agent who takes advantage of them. If anyone can sell this property, I can - but the last thing I want to do is sell their home and make their situation worse than it is now.

I'm a really good real estate agent, but that's all. When sellers wants or need more, they must turn to qualified professionals in other fields.

Posted by Margaret Woda, Maryland Real Estate on 09/04/2009 02:17 PM

Comments (67)

Listing Agents in the Home Selling Channel

selling a home, legal advice

Originally posted at: Fort Meade - USNA - Andrews AFB: What's An Agent To Do When the Seller Wants More?

This post has been included in Maryland Information Prince Georges County, MD Information
Post is included in group: "Whacked"!!!
Post is included in group: The Lounge at Active Rain
Post is included in group: Posts to Localism
Post is included in group: Long & Foster Agent Lounge
Post is included in group: Almost Anything Goes

67 Comments on What's An Agent To Do When the Seller Wants More?

SEP

Walking away is really a tough thing to do. Sometimes I think it is the toughest thing we do as agents. But you have to decline listings. I decline 1 or 2 in 10

Right you are Margaret.

Do what you do. Do it very well. That's all it takes to stay busy anyway.

You made the right decision, Margaret. I expect the sellers understand and are, hopefully, pleased with the referral informaiton you provided. To do otherwise would be inappropriate, and put you adn your sellers in jeopardy.

Jeff

I always feel like telling the prospect... if I could do X... I would be getting the BIG BUCKS!. At any rate, having a group of folks to refer people to can be very beneficial... and sometimes, a clients will come back when they get things in order.

Good for you! I turned one down a few weeks ago and recommended that they not sell. They wouldn't get enough money to allow them to buy a new home and they probably would have ended up living with relatives.

I was honest with them about what I could and couldn't do. They were relived that someone finally gave them the information that they needed to make their decision.

I declined a listing last week too, because it was run down. In fact the windows were boarded up! It would only have sold for 10 or 12 K$. Just not something I wanted to deal with. And it felt GOOD to say no.

Margaret,

Stick to what you know. Guessing in fields where you lack experience or knowledge is the best way to get into trouble.

Taking a listing I know I shouldn't creates a no-win situation. I won't give it my all and that affects the sellers' opinion of my skills and wastes their time. The seller is a gatekeeper and before you know it I won't be used by anyone in their SOI. Better to walk away with respect than do a half-hearted job just to get the listing.

You know, it is so flattering that this family feels I can solve all their problems for them, but I can't put myself in the position of possibly giving advice which is not in my area of expertise (or licensing). They don't seem willing (or financially able) to turn to other professionals, but that's something they must do.

I hear you when you say it feels "good" to turn down a listing... but I don't feel that way at all. I really wish I could help these people, but they're going to have to step up to the plate and solve some of their own problems. I'm really sad to let them down. But... I must and I did.

Charlie - 'Guess that ties right in with what you said.

Lenn - You are a great role model for other agents... sticking to one area you are indeed an expert, buyers.

Joan - I did develop some new resources as I shopped around for experts in appropriate fields. Now li I'll have them going forward.

Ann - Good for you... that sounds like something that you wouldn't have much luck selling.

Brian - Frankly, I do know a lot about the things that concern them, but I'm not licensed in those fields and jeopardize my real estate license by saying anything which could be interpreted as legal or accounting advice. And a real estate license does not qualify me to be a social worker!

David - Very well stated! It took me two days to prepare for the listing appointment, and I hate to "waste" all that - but who knows, maybe another seller will come along in that zipcode before the info is outdated.

Thanks all, for reading this post and your comments.

Margaret- That is exactly why you are such a 'great' agent. You know your limits and then you KNOW others who specialize in the fields they really need to be getting counseling from.

Took the words right out of my mouth!

So often I get asked questions in areas where I have no expertise, and when I say "I am not a lawyer/accountant/whatever, I cannot advise you on this aspect," it is not taken as an acceptable answer. They almost always then ask, "well then can I just ask you what would you do if you were in our position".... to which I reply, " I would talk to a lawyer/accountant/whatever, because they are the experts in that field".

It can be really frustrating! I am not a lawyer, and I cannot and should not be giving legal advice. Giving my personal opinion of what I would do in a given legal situation is also not a good idea, because even though you may give a disclaimer that you are not an expert, some people will take your advice as gospel and follow it. If they get into trouble for this advice- guess who they are coming back on?

Thanks for the post!

"I may be good at what I do, but there are limits! "

I love the fact that you recognize this and it';s something all of us who want to provide the best service possible need to remember! Great post!

I did the very same thing for a friend of mine recently. They have actually taken my advice and sought out the help of the professionals that they needed to... sometimes this is what the job requires. Thanks for sharing!

Some seller need more help than you can give, when experience tells you any attempt at counseling would be over your head you have to bow out...rather than face liability later.

Well said.

It seems in a lot of different businesses we are asked to do things that are "not my job". We accept video that is online that clients can do themselves, but we also do video that we are on site and you would be surprised that we sometimes clean rooms, because this is not done by the seller.

You wouldn't have gotten too far in real estate if you didn't know what to do, what not to do, when to do it, and when not to do it, Margaret. It may not feel good, walking away from a listing, but you did so knowing why you did, and that you did the best you could in those circumstances to help them. Small consolation, I know, but at least there is still the possibility (and a strong one, I suspect) of you listing their home when they are able to do so.

Absolutely

Walk away, it is always the right thing to do when you can not give them what they need or they need legal advice that you can not give them. Do what you do well and stick to it.

Margaret, I like the concern you showed for these sellers when you said you hope they don't hook up with an agent that will take advantage of them.

Ha! That was one of my great ahas when I started. I realized that being a great realtor is like a being a great poker player. It's the hands you don't play that make all of the difference.

Margaret -

Good for you. It is entirely too tempting to take any and all listings in this economy, even when walking away is exactly the right thing to do.

Michael

"Rangers Lead the Way"

Good job, you know you did the right thing.

I think that you end up creating such a bond with some customers that they do rely on you to help and/or direct them to someone that can. Just be sure you are surrounded by some solid people in those areas and you should be good to go.

We all know what out limitations are and what we feel we can do within our sphere of influence and capabilities to get a deal done. When it's not right we don't need the aggravation. You did the right thing.

Hi Margaret... This is excellent advice and very clearly presented. No wonder it was featured! Congrats on the Gold Star!

They may not realize it but you did them a favor. I'm sure they respect you for it.

Wow, Margaret. I hope they take your advice. You should keep checking on the address and just for your own peace of mind, you know? (PS - What is copyscape?)

Even in these hard times, honesty is the best policy! Way to Go!

Giving advice on areas you are not familar with is a big no no. There are plenty in our industry that do it everyday. Just think about all the advice that is given on short sales.

You definitely did the right thing by saying no to this listing and offering the phone numbers of people who can help.

Hi Margaret, I think it takes a very secure person to do what you did. And honest. I hope they don't hook up with someone who will take advantage, however desperation... never mind.

Great post, well deserved gold star!

Hi Margaret, and here all along I thought you WERE a MIRACLE WORKER <Smile>. Glad to know you are human like the rest of us ; )

Hi Margaret - Knowing where your expertise lies, and where it does not, is a true measure of your professionalism. A sloppier, lazier, or maybe just hungrier, agent might have given some generic advice to try to keep the client, even though that might result in harm to the client. I hope they appreciate what you have done for them and come back to you when they are ready to go.

I'm not an expert in this area is what I'd say ......check with a expert on this and let me know.

Patricia AUlson/portsmouth nh homes

Margaret, this is a terrific post and one to certainly send to prospective clients so that they understand.

Of course, I can provide legal advice, but clearly tell my clients that I will not do so unless they sign a separate written fee agreement hiring me as their attorney. I've only had a few circumstances where I've done that.

One was this past week when I drafted a Special Power of Attorney.

When I first started out there were a lot of things I did, had to do to make it. Take listings that were for very low-end properties and every weekend I would hold the Open Houses, and one thing leads to the other. Would I take an unapproved buyer out in ths day and age? NO! Have I . . . oh yeah!

Hi Margaret -- You are very wise to not go beyond the scope of your capabilities. I'm with you!!!

Ahh...you are not just entertaining, Margaret, but very wise, too! :)

Sometimes when we walk away from a "high maintenance buyer or seller" we are actually giving time to use recruiting business that actually will value us for what we are, real estate professionals!

So if I understand you you do miracles but only medium sized ones not the really big ones.

We aren't Superheroes with utility belts that can solve any problem... But that doesn't mean we can't be really good at what we do...

They are blessed to have you as a pro who knows who to send them to. I use the line "I'm sorry but that is outside my scope of practice, I'll have to refer you to______(fill in the blank)" People seem to understand that and I am glad they usually do. It's best none of us go beyond what we are equipped for and imperitive that we have others to send them to that can help where we can't. Hats off to you.

It sounds like you made the right decision for both you and your potential clients.

Margaret... Some times we just have to know when to say no. Great job and pointing them in the right direction..

SEP

Margaret - sometimes it's not easy to make the right decision but it gets easier as we gain experience as agents. We know when we have to say no and point the client in another direction. Very well thought out post!

Good for you! We assume so much liability anyway, why should you take on more ~ especially out of your field of experience, training and licensing. So many sellers are in such huge financial messes now ~ they are looking for that one person that can fix the mess that they have made and the agent just can't wear all of those hats. You did them a service and kept yourself out of harms way.

Often the smartest decision we make is to turn down a listing.

Martha - Thank you. It's not easy to stay firm when a potential client wants you to solve all their problems, but...

Rebecca - The truth is that agents often either know the answers to questions "beyond real estate" (or think they do), or at least have an opinion. We just aren't allowed to go there.

Russell - That real estate license we hold gives us rights, but also responsibilities. And it's important for us to know what we can and can't do, under the authority of that license.

Emily - I hope it works out for your friends and for my potential clients.

Steve - At this point, I don't believe these particular people really "get" that, but it is so true!

Margaret,

You should feel good about advising them to seek the proper help! Today's lisitng market gives us new challenges and unexpected twists that can result in major head banging on the desk! With all the potential short sales, and a good number of listings that don't start out that way are unfortunately headling that way! Hopefully once they seek the proper advice, and if they can sell, they will realize that the advice you gave them really was the best service you could give them at the time and put their trust in you to do what you do best!

Some sellers that bought with no money down in the past few years, with no additional equity, don't understand why they may very well have to pay if they sell. What to do when other agents come in, tell them they can get 15% more than the comps show in an area that has declined 3-6%? Some are confusing the number they want to hear with enthusiasm. I have had a few tell me that I was not as enthusiastic about their home as another agent on the initial listing appointment in regards to price, but the comparables are the comparables. Funny thing is, the same people have referred others to me after their home sold with someone else and got less due to "testing the market too long" Some of the more challenging listing appointments now include a tour of the 3 most comparable competitive listings so the sellers actually see the inside of the competition, two birds with one stone, it allows me to preview the competition, and it allows the seller the opportunity to rethink their numbers for lisitng.

Keep doing what you do best, your integrity will win you more business!

It's a smart agent who knows when to turn down a listing or not work with a potential buyer. There is a difference between activity and productivity. Some potential clients may come around but at times the best you can do is give your best advice and step back. I have a similar situation now where a potential buyers has not provided all the information I asked for to get them pre-approved for a loan. I am answering their questions but not pursing them as clients.

It is always hard when you are asked questions you do not have the expertise to answer or maybe the qualifications to answer(even if you know the answer), but answering gets you into serious hot water. There are some really sad situations happening out there, I too wish I could help everyone, but realizing and saying that I can't is part of integrity. Maybe they will choose to get what they need and from whom they need it.

You have really addressed well the state of mind of Reators when we become the enabler. In our desire to serve which is not wrong, we try to over perform against all odds and against the Code of Ethics that says if you are not a lawyer I suggest you don't act like one. Ah, discovering the power of No is the first of the 12 steps to real estate recovery.

I like what Derek said. "It's the hands you don't play that make all of the difference." I would certainly like to list and sell all of the homes in my market area, but it wouldn't make business sense for me to do that. To be a listing or buyer's agent, you have to pick and choose your clients. It's the only way to make money in this business. The agents who burn out financially and emotionally are the ones who take every opportunity that comes along.

Do you think you could have avoided spending two days preparing for this listing presentation by asking questions ahead of time or is it one of those situations where all the complexities wouldn't have surfaced until you were face-to-face?

I'm glad you were able to refer these folks to someone who could help them. They were lucky to have met with you.

It pains me when I receive calls from Sacramento sellers who are upside down and want to do a short sale but meet the top 5 worst criteria for a short sale all in one transaction:

1. Have no financial hardship

2. Have a hard-money second

3. Received cash on that hard money second that was not used to improve the home

4. Never occupied the property

5. The second was originated by Countrywide

Because it means I cannot accept that short sale listing because the seller has too many legal and tax ramifications. I suggest they seek legal and tax advice, but I know in my heart that they are unlikely to heed that advice.

Yes, It is best just to walk away, and know your limits, rather than get wrapped up in something that may not even be real estate related.. Nice flattery, wanting you to solve their other problems, but that is not our job.

Margaret, your post beautifully illustrates (in an implied, subtle way) the importance of having a good team and backups put together. When you can recommend a good attorney, accountant, appraiser, home inspector, etc., whom you trust and can benefit you in return if the client provides that opportunity, you will always profit in the long run. Build your team but always have backups for your 'first string'.

Great job Margaret! Some Agents are TOO hungry for business that they offer advice that should NEVER be given. Advice that can land them in court.

It must have been really bad. I heard of one agent who came to help them paint the house so he could get the listing. Would you do that?

I know we're afraid of looking inept when a client wants us to answer questions that are not in our realm of expertise. I'd rather refer them to the professionals than wind up in front of the real estate commission or even worse, without my license. Great post!

Clint Eastwood said it best. A man (or woman) needs to know his limitations.

SEP

Geeze Margaret, I suppose you don't offer marriage counseling either!

Amazing sometimes what people can expect from you. Good for you for referring them to the proper professionals.

Margaret, I had one of "those" clients a couple of years ago. And I had to fire myself at the end.

Deborah - Thank you!

Knightyme Video Tours - I think everyone in this business has done some cleaning. That does not require a license, however, and dispensing legal or accounting advice does. That's the difference here. And I do know the answers to many questions that come my way... I just know it's not appropriate for me to share them.

William - Thank you for your empathy... you're right, it was not easy to walk away, but I hope they work things out and come back to me.

Dave - Ditto

Dan - Yes, I feel great empathy for the sellers, knowing that many people rely upon family members who may not be willing or able to give the help that's needed. I do hope the family finds a way to help the sellers consult with an attorney.

Derek - I probably haven't walked aaway from five people in 35+ years, but that does show the depth of my convictions regarding those from whom I did walk away.

Elizabeth - Great advice for any profession... It is easy to take on more than you should when you hear their emotion laden story. However, I only see problems when real estate professionals stray outside their area of expertise. Sometimes the only assistance that you can provide is a referral to the appropriate professional.

Margaret...I would have done exactly what you did in similar circumstances.

Sometimes I come across clients who ask advice on issues related to legal, engineering, construction, electrical, plumbing etc in a purchase/sale of a house. While, sometimes I know the answers, I give them a brief with an advice to seek professional help provide them with enough contacts of those professionals.

SEP

Excellent advice for agents AND buyers and sellers. It's very important to help clients to the best of our abilities. But our abilities do not reach into the realm of legal, tax or mental health issues! And we need to recognize when it's time to refer a client or potential client to another professsional.

SEP

You did what needed to be done, instead of trying to put a bandaid on a gaping wound. That was certainly the right move for all, IMO. I am hopeful for you that after the sellers hear the words they need to hear, and get the counseling they need from the 'right' people, they will call you to list (or short sale) their home. You are obviously an agent who cares about people. Those sellers are fortunate that you were there to help them in whatever way you were able to, and the way that you did.

This blog does not allow anonymous comments