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Heard 1 Too Many Times "If You Find a Good Deal, We'll Use You"

Good Deal

Every now and then, I have a well meaning prospective buyer say to me, "I'm already working with an agent, but if you find a good deal, let me know and I'll use you." Sometimes it's someone I meet at a social event or someone that inquires from my blog.

I think the buyer's mentality is understandable. Their intention is twofold: (1) get the feelers out about what they are looking for in the housing market (2) to let me know that I will be compensated if I find them that coveted 'good deal'.

My response is the same every time: (1)"Do you feel you are getting good support from your current agent?" (2) "If so, I would continue to work with them." I won't be calling with the inside scoop on a new listing.

Why, you ask? Several reasons:

Is it reasonable and fair to preempt another agent's hard work? As a buyer, if you have an agent that is working diligently and consistently on your behalf, it seems reasonable to reward that agent with your business.
As agents, we often have access to the same data. Is it simply a matter of who makes the call, or sends the email, fastest and brings you the 'great deal'?
If I'm listing a 'great deal', I would still want you to be represented by your agent. It's always my preference to have a buyer represented by their own agent.
Let's say I did come across a screaming deal before it hit the market - Who would I call first with that 'good deal'? The clients that are already committed to working with me in their home search, or the person that may work with me if I find the 'good deal'?
As a buyer, you may have signed a Buyer Broker Agreement committing you to utilizing your existing agent.
And lastly, the agents working in the area, comprise an almost small town-like atmosphere. Those actively working in the business know one another and complete real estate transactions together - often more than once. Reputation is crucial and undermining agent/client relationships is a career killer.

And one more quick side-note - if there is a 'good deal' to be had today, it WILL have multiple offers. No one calls me asking for a 'nice overpriced home' these days. Everyone is looking for a deal. The good news, compared to pricing as far back as 2003, it's all a good deal.

The best strategy, find a home you love, that fits the needs of you and your family, and your budget. If an agent calls you with the deal of the century, if it's not in your budget, and not going to support what you really need in a home, it doesn't matter what kind of deal it is.

Originally Posted on OC Real Estate Voice

Posted by Linsey Planeta - Your 'OC Real Estate Voice' on 10/12/2009 09:14 PM

Comments (85)

Good Deals in the Home Buying Channel

good deal, realtor professionalism, buying

Post is included in group: Orange County Real Estate
Post is included in group: Diary of a Realtor
Post is included in group: Club Chaos

85 Comments on Heard 1 Too Many Times "If You Find a Good Deal, We'll Use You"

OCT

Linsey,

How about, "If I find a good deal, I will run it past MY clients first."

Try being a loan officer - first question, "what's your rate and closing costs?" Not can you get it done? Not - how many hours will you work on cleaning up my cruddy credit while re-assuring me that my neighbor's cousin's college roommate in Chackanoka who cuts the hair of a guy who used to be a loan officer really doesn't know more about DTI, LTV, APR, UFMIP, MMIP, HVCC and the rest of the alphabet than you? Not - how many times can I call/email/text you every hour between submission and approval? And do you know what they do? On that rare occassion that the deal is very difficult to get closed and takes some time they listen to someone else (sorry, usually an agent) who says, "Oh, I know someone who can close this with no problem". OF COURSE they can, now that the loan officer has done all the hard work :) In other words, "I hear ya sister!"

Agreed Mike. 4th bullet touches on that. Feels so obvious doesn't it? But I know many consumers don't understand the way this all works. I feel bad - but it can be frustrating to hear that line over and over.

yeah...don't you love that... I like what Mike had to say..thats a good one.

FHA Loan Dude - wow. I feel YOUR pain! :)

Great blog! I think buyers sometimes need to sit back and think before they start shooting off questions. Of course everyone is looking for a deal! Who wakes up and says, "I think today I'm going to pay $20,000 more than asking price on a mediocre home that is already overpriced?" No one!

Linsey,

I have found that I don't sell "good deals." I sell houses people are excited about buying at the best price we can get it for. My clients end up with "good deals," but by working together diligently. Too often people shopping only for "deals" are not really interested in buying, just shopping. They miss the best ones and lament about the one that got away. "Find me one just like that first house we saw, 3 agents ago for a below market price that we passed on because we didn't listen." Don't worry about them, try to educate them or move on.

Linsey, people need to listen to themselves. They are showing that they have no loyalty to the agent they are working with, yet they are expecting another agent to show loyalty to them by calling them when that 'great deal' comes across the agent's path. Really? Methinks I will be calling the buyers who have been loyal to me.

Linsey,

Thank you for your posting, much appreciated!

-David

So many buyers these days are not loyal. They will call many Realtors and want to go see a home and not even commit to work with the Realtor. If they want someone to work for them, they should commit to a Realtor

That line sounds like a typical blow off response that people use, just trying to sound like they are interested, when in fact they really aren't. Unfortunately a lot of people use that line, and just want to try and please you or make you feel good without saying the truth, that is usually that they're already working with someone they're obligated to do business with for one reason or another. To me, its kind of like the line you sometimes hear at the end of a first date when the other person isn't that into you, they'll say "I'll give you a call".... While sometimes they might mean it, you can usually tell by the way they say it....

If I find a good deal, I'm giving it to someone who is working with me, not someone who is not. Duh.

I like Mike's response. Why would I continue to watch out for a "good deal" for you if you are not willing to commit to a real estate relationship with me??!! And if your agent is doing THEIR job, they will find you the same good deal that I can - if not, then there is a propblem with your agent.

It is certainly a buyer's prerogative to work this way if they choose to do so. I don't see any advantage for the buyer, but that is their choice. Just as it is mine to not work with someone who is not serious (there are plenty of buyers out there who ARE commited and WILL commit). I suspect some buyers may not understand how things can work best in their favor, and we need to do a better job of educating them so they do get it.

Jeff

Very well stated and I applaud your answer. You were much more politically correct than I would have been. I think my answer would have been more like,

"The deals that I run across go first to the clients who have committed to using me as their agent. Those deals rarely make it past more than 1 or 2 of my clients without an offer. If they aren't interested then I will gladly let you know about it!"

I like the comment- I only want to buy if it is a steal". I have literally asked the prospect at that point, (with a smile on my face, of course), "Oh, and you are different from everyone else, um how?" Or the other replly is that if it is such a steal, the agents would be buying it. What are people thinking some times??

You really made some good points. I think that most people that ask us to let them know when a good deal comes along do not understand the way we earn our commissions or think that they are somehow smarter than we are and they don't need an agent!

It is these times where your intergrity gets tested.

I'm glad to see that there are agents out there who maintain their character. When faced with the oppurtunity to undermine another agent the question shouldn't be "Can I?" but "Should I?" This is a small world and stepping on people's toes for a commission is never a good business idea.

When I hear that line I usually interpret it as a a blow off, just like Bill Johnson said above. :)

Hi Linsey,

Your post makes me soooo glad I am participating on ActiveRain. We need Agents to speak out as eloquently as you have here about how the business really works. You were wonderfully gracious in your explanation of how the consumer likely sees the scenario - I too often am tempted to take the low road in my assessment of their intentions - but you are right. The vast majority simply do not understand how client representation works and the implications of what they are asking you. I have used many of the retorts outlined by yourself and the respondants here - but the bottom line is, the more we all put these conversations and explanations into the public eye, the faster we will build a completely professional image and reality. This will help ALL of our businesses in the long run.

So keep on posting and talking it up - I'm getting excited and looking forward to reading more - and sharing some scenarios like this myself.

By the way - my favourite part of your post is the orthoganal comment regarding your listings - you always prefer the buyer to be represented by another Agent. THAT IS HOW IT SHOULD ALWAYS BE.

True.....true....

Hey gorgeous! Congrats on your gold star:) I completely agree with you and your response to them is almost word for word what my response is as well:)

Nice discussion you've generated -- thanks for bringing this up. I agree that the answer should be something that refers to your buyer clients getting first notice of the best deals.

I think everyone has always been looking for a good deal, they just want a really good deal now, because of all the inventory. And my response to my clients is "I'm always looking for the best deal on what you want".

Good post! I like the fact that you show integrity and tell them you are committed to your current clients. They can choose to be one if they'd like! By the way, Courtney what's the gold star mean?

OCT

I hear that from people that know more then 5 agents they tend to think the fastest one to them will get the business.

Linsey, so graciously worded...I needed to hear this now. The last 3 people I have spoken with have had variations on the theme. One was oblivious to anything having to do with loyalty; another who clearly understood it after I explained the ramifications and why I would not interfere in an existing agent-client relationship, and the third who might be too fragile to make a decision and stick with anyone at this time. You have done a great service for the public. I hope many will read this blog and gain understanding.

Linsey~ I get this one quite a bit as well! Soooo much for loyalty!! :) Thanks for posting!!

Ahhh, integrity, integrity and treat others as you would like to be treated. I think that this applies to the folks in these cases.

Personally I would choose to not spend/waste my time with these "types" of buyers/sellers. These types of consumers can/will continue to erode, erode your own self confidence if you waste your time with them -- even if you know they will eventually buy!

Of course I wouldn't brush them off unless I was sure they couldn't be saved from their current beliefs re sales associates/realtors.

Sue of Robin and Sue

I always tell this sort of buyer that should a 'great deal' come on the market I would tell my loyal buyers about it. Buyers should realize that loyalty needs to go both ways.

Thanks for the post. I recently had a buyer with exactly this mentality. Somewhere along the line he found a deal through someone else and bolted without so much as a by-your-leave. It stings & stinks.

Sounds like a phrase borrowed form a house of ill repute. ..

Thank you!
A lot of times I just read the posts and wish "I had said that"

I wish I said that

Kieran

It amazes me sometimes that people don't listen to the words that come out of their mouth. We have to patiently explain to these buyers what they are really saying. It can be frustrating, no doubt, but necessary all the same.

If you want me to help you as a buyer's agent, I will require that you sign a buyer's agency agreement. If you don't want me to be your buyer's agent, then why on earth would I want to bring you the deals I find?

Linsey- GOOD FOR YOU! Buyers really have little understanding of relationship issues which affect our trade- often they see us as interchangable. Looking to hedge their bets I love your responses to "inside" information. If they are working with someone already, you would think they made that decision based on something...what might it be? Let's hope it was not just based on availability?

Great Post, Linsey. Again, I think it goes back to the first Buyer Consultation and our inability to appropriately agency to our Buyers....Agency is different than Loyalty.

everybody is looking for a "Good Deal". My clients come first, so if you're not working with me, guess what? You won't hear about the deal. I commit to you if you commit to me. Well said.

Buyers that shop Realtors and not homes miss the deals because they aren't loyal. I'm calling my buyer clients not hesitant want a deal leads.

I had two prospective buyers call me this weekend about one of my new listings. When I asked if they had an agent they said yes. Why don't you call your agent? They haven't been able to get us into the property we want so we thought we would try a different way to win a contract. Sorry call your agent! It is sad that in a multi-offer market that buyers think it might be the agents fault they aren't coming out on top.

I find the same is true when working with FSBO's. They say, "Find me a buyer and I'll be more than happy to pay you 3%." Like we have an arsenal of people in our back pockets waiting to show their house. People not in our industry will never understand.

Linsey - It is amazing how many people do not understand how the whole process works. Some people are tuned into the WIIFM channel and are deaf to being educated. I have also learned that they generally do not wind up purchasing anything.

Linsey:

You have stated this very well. The public needs to have a better understanding about how buyer representation works. If they want a good deal, they need to find someone that they can trust to find it for them, sign a buyer broker agreement and make a commitment. Too often, someone like this will go out and look at a property with another agent and then call you and ask you to get them a good deal. It just doesn't work that way.

Linsey Loyalty to an agent has gone out the window in too many cases - if it was a good deal I'd buy it myself - I don't need you Karen

I send good deals to the people who hire me, period.

And I say "I have a list of clients and customers I have been working with that want that same deal" I will need to call them first, but good luck!

I couldn't agree with you more! There are very few steals in this market...the ones that are that good of a deal end up in multiples ALWAYS

You are right, most people do not really understand client representation, however nor do they really care either. We will always have to inform the public of this, and that will never stop, ever. At the same time, I think we get a little defensive when the prospect is just doing what he or she should do, and that is looking out for their own best interest as we all do, whether they do it tactfully or not. We take it personal when we're on the wrong side of it, yet we do that in all aspects of life and business, not just the real estate business. I'm not saying this is ideal, but it is reality and it's nothing new. It also makes you appreciate even more the good, loyal clients you worked so hard to attain.

Linsey, you are so right. And yes, like you & Mike both said, why would you share a good deal with them before your OWN client???!!! It's about education, and the general public not understanding, and choosing not to LEARN about how it works!!! Great post!

Perfectly said! It's all about educating the potential buyer to the higher ethics we have as REALTORS. No we aren't willing to snag you away from someone else, yes we prefer to work with people who understand the value in working with a fantastic agent and not 'shopping themselves around'.

Hi Linsey,

Great post! My guess is that half of those people (or at least a good percentage of those that you meet at a social event) are just saying something to be "polite", in their minds. They are trying to show interest, even though they are really not actively looking for anything. In that context, I do not take those comments seriously. How many times do you think a dentist has heard at a social event, "Well, the next time you have a big sale on root canals...."

For the other half, the group that is truly is looking for property and thinks "spreading the love" among Realtors is the way to go-- they definitely just need some education and you get a chance to provide it. The answer has been repeated here several times (starting with the first post by Mike): "Alright, cool. Now of course my actual clients come first. So they will hear about it first and get the first crack at it. And after them on the list is me. I may want to buy it myself if it's a really good deal, know what I mean? Now, if it has gotten past all of my clients, and then gotten past me, then I'll give your Realtor a call..."

If after that, they still think this is a valid strategy to work Realtors, then all that can really be said is, "Good luck."

I'm in the Mike Camp! I like that answer...I will run the "good deals" past MY clients first! Good points and a very frustrating group of people who haven't had agency properly explained to them!

Linsey, this topic gives us the opportunity to show integrity. If we ask if they have a buyer agent, and they say yes, we can tell them that we have to honor their contract and relationship with the other agent, and therefore cannot advise them on real estate matters. If they have any conscience, they may question their own integrity. If they don't have a signed buyer broker contract, we have to make the decision as to whether we want to work with them or not. I wouldn't want them as a client.

Lindsay: This is a classic situation where it is clear that buyers just don't get it. When buyers commit to working with me ... I commit to work my butt off for them ... and they know it. They know I have their backs and am taking care of them ... this is what is missing for people who say ... if you find a good deal - let me know. Ironic ... those people are likely missing all of the good deals (lol)

I get a kick out of the ones you just met ,that ask you to set them up if a real steal comes in.

ya right, I probably would be calling loyal clients first. They don't realize how dumb they sound.

Good deals go to my buyer clients as well. If you do not think your agent is doing their job fire them and hire me do not go around them.

I actually had this very discussion with an agent in Fullerton, CA yesterday. Every buyer wants a good deal, but all the "good" deal have multiple offers and go for more than the listing price. We even discussed how all deals are good deals now compared to the past few years. Great post.

Kudos to Mike's reply. It is also what I use. "If I find a good deal, I will run it past MY clients first."

I love to ask them what they consider to be a "good deal". After they say it, sometimes they realize how silly they sound.

Love the post and lots of good points, I do the same ;-)

I am getting calls from buyers who come right out and say that they are calling the listing agents on REOs so that if a property is getting multiple bids, the listing agent will tell them what to bid to 'win' the house. And this strategy might be working, with some listing agents. I tell them that if they are relying on a dishonest agent to tell them how much other offers are, how do they know that listing agent, who represents the seller, is telling them the truth. What if the listing agent's suggested price is way over the current offer and way over the value of the home? You are relying on the advice of a dishonest agent.

Good luck with that.

I like that title! Must have a good deal....yadda yadda yadda. We all hear it. Hopefully our clients who are committed to working with us hear it from us! Great post!

Linsey, great post. Oh so true!

Lindsey,

Great post! Have heard that many times myself.

Lindsey,

I got a lead last night, she asked for a CMA, first thing I do is check to see if it is listed. Nope

Then I look at the tax records.

Send them the information and my Pre-List questionnaire.

I included all sales since Jan 09 and Actives.

I asked to have a 5 minute walk-though to define the actual list price.

Then I get an email:

Oh, I have a Realtor just looking for Free information.

errrrrrrrr

People never cease to amaze me. I would just slam the phone down. I really don't like game-playing clients.

Find a Realtor that you like, that you are comfortable with, and go with that Realtor!

LOL Awesome post! It make me think of several people I've encountered.

Great Post and way to go on being an agent with integrity. It is so true that buyers need to find the agent taht fits them best, and for realtors to be honest and upfront with each other.

It is important that everyone has integrity. I hate when I hear other individuals say things like"the person you are currently working with may not understand that this is available". This is an underhanded way of trying to solicit someone elses customer. Customers have very little loyalty, we need to make sure that we have it and use ut.

Sorry! The good deals are saved for my clients that sign BBAs.

With my Blackberry blowing up with your wonderful comments, this is the first chance I've had to get back to my computer since last night. I have to say to all you wonderful Active Rain folks, I so appreciate your insights, your ideas, and stories. While my independant Wordpress blog is my baby, but you've just helped to remind my what is so wonderful about this community. Thank you so much for your feedback.

I enjoyed writing this post and it's so gratifying to find that I struck a chord. Happy selling everyone!

There are many people who say exactly this and hope that I'll find them the deal. I expect my clients to sign BBEs because I work hard for them and will help find them the best deal available.

My question to them: do you want a deal or do you want a house? Pick one.

Great post, being new to activerain I have to say I'm getting a lot of useful information. Good stuff, I think I'm sticking around for awhile!

You got it Babrb, a deal or a house, you don't always get both!

Well put Linsey.

Very good post, and as usual once I read through the kazillion comments, everyone's pretty much said what I'd have said, lol. Come on, who doesn't want a deal?

All good answers/comments above. I especially like the one about "saving the good deals for my committed clients who use me as their agent!"

Patricia

Your FHA Guru Hi Lindsey, actually there may be some good deals out there but they are mostly fixers or homes that are functionally obsolete. These homes can be turned into the buyers dream home with FHA 203k financing. One loan purchases the property and rebabs or remodels.

Bill Ladewig, Your Fha Guru

Bill@yourfhaguru.com

One of the great things about ActiveRain is the opportunity to educate buyers and sellers in an informal and non-threatening way. Your post did a great job of providing a nice explanation to buyers who might not understand, or even think of, agency issues.

I just love the folks that throw that line at me. I always ask them 'what's a good deal to you' and most of the time they have no idea. Then I ask if they are working with an agent and take it from there.

I love when buyers' only criteria is a good deal. Some could careless about the house, as long as it's a deal.

OCT

This is a great post.

Not only do I work heard for my sellers, I work hard for my buyers too....I never yet had asked a buyer to sign a Buyers Agreement and it hasn't bitten me yet...(i just know it's coming though). My feeling is they see how much effort I put into their home search. I give them no reason to go anywhere else....

If a buyer says "I'll use you if you find me a good deal" I say "NO THANKS"....(and I have). You just lost a great negotiater for your "good deal"... NEXT!