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Letting a Client Go

By
Managing Real Estate Broker with Howard Hanna Rand Realty License # 49FA1074963

I sent a buyer client a Dear John letter this evening, and it was sent with a heavy heart. I have been working with this couple on and off for 2 years now and after this afternoon I realized it was time to tell them I cannot help them. To paraphrase Abe Lincoln, a real estate brokers stock and trade is their time and advice. Your agent's time is valuable. We cannot be a tour guide; we'll go bankrupt.

I have enormous patience for people considering a 6 figure purchase. It isn't done lightly, nor should it be rushed. But 2 years is enough. It isn't even the length of time, at that, because this past summer I decided to let another buyer go after a month. In both cases, the problem was the same:

You cannot buy a $650,000 house for $400,000.

Real estate markets are highly localized. Westchester County is not Miami, Las Vegas or Pheonix. We aren't down 50%. Is there play with most sellers? Yes. But you can't offer a competitively priced house 80 cents on the dollar and justify it with the fact that it hasn't sold in 90 days. The Mrs. is not the issue; he is. If it were just her they would have bought in late 07 or early 08. She came out hobbled with a cold and was in the car as we spoke in the driveway. I explained to him that this was the best we've found, and that he either had to raise his price or make some concessions.

His reply was disconnected; I don't care about the friend of a friend who bought Shangri La for the back taxes. I'm an agent, and I should have found a steal for my family, right? Wrong, I bought the house my wife wanted. That's what you do. Those words didn't resonate with him. It was at that point that I realized this was hopeless. I had to say goodbye to them. If you want to be a wheeler dealer, I suggest baseball cards or ebay. I sell homes.

Not every house is 2009 updated and on a level, square lot at the end of a cul de sac for the same price as one with a 1980 kitchen, a cliff in the back, and a double yellow out front. If it is, it will sell in a day. You either have to raise your price point or lower your expectations if you've seen 100 homes and nothing is good enough. In some cases, you'll also have to find a new agent.

I wish these people the best. I hope this will be a wake up call for them. I have a business to run, and no business survives on window shoppers.

Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

Wow what would make you spend 2 years?  I'm still trying to get my head around that one! ;-)

Nov 06, 2009 06:18 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Robert. I am a broker and my wife and I saw 11 homes prior to making our decision. Should I have fired myself?

Liz. The Mrs. is ill, so there were breaks in between. Still, it sort of sneaks up on you.

Nov 06, 2009 06:30 PM
Gina Chirico
Lattimer Realty - Fairfield, NJ
Real Estate Agent - Essex County, New Jersey

Sometimes there comes a time when we just have to say... "I'm sorry I don't think I can help you".   Now the kicker is next week when they buy a house for $650,000 for full price.....that would be my luck, I'm not so sure about your's!  LOL

You did the right thing...albeit two years too late but you never know...

Nov 06, 2009 06:43 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Gina, The thought always occurred to me that they'd buy something a week later and rub my nose in it. Then I considered the money I am losing chasing that pipe dream when I could be working with other people who are more realistic. 

Nov 06, 2009 07:04 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

What took you so long?

Once it is clear that a prospective buyer is more interested in negotiating a deal to purchase real estate rather than find and buy a HOME, they are history.

Of course, look at the inventory knowledge you've gained.

I don't mind previewing a lot of homes and even showing a large number, but I've got to know that the buyer is, indeed, in need of housing, not just thinking about moving.  There's just too much to do to devote so much resource to one prospect. 

Not good business.

Nov 06, 2009 08:21 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have also let a few people go myself.  Actually more this year thatn all my years in the past.

Nov 06, 2009 08:33 PM
Florida Real Estate Expert
Jensen Beach, FL

One of the most important lessons for agents to know.  I tell my agents to cut clients loose all the time . . . and send them to their favorite competitor!

Nov 06, 2009 09:24 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

sounds like you never had a buyer in the first place. you had a investor looking for a deal. next time tell them to go to the steps of the court house on sale day and find the folks that want to buy a home.

good for you

tony

Nov 06, 2009 09:50 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

sounds like you never had a buyer in the first place. you had a investor looking for a deal. next time tell them to go to the steps of the court house on sale day and find the folks that want to buy a home.

good for you

tony

Nov 06, 2009 09:50 PM
Paul Guenther - WFG Title
WFG NATIONAL TITLE INSURANCE COMPANY - Flagstaff, AZ
The Extra Mile Is Part Of My Regular Route!

J Phillip,

That is such a tough decision to make..You figure all that you have invested in them is just going to be tossed.  I am sure you did the right thing here

PG

Nov 06, 2009 10:52 PM
Keisha Hosea- KASIHomes.com
KASI Homes - Chino Hills, CA
Real Estate Solutions For Real People

Ya gotta know when to hold 'em and know whent to fold 'em. Yes, it was definitely time.

Nov 06, 2009 10:53 PM
Betty Knowles
Southwest Missouri Realty - Springfield, MO
Ready to sell? Call Betty!

Its hard to let go when you think of the time, gas money, etc... you have spent but you have to do it and move on.

Nov 06, 2009 11:15 PM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

There are many that have a real hard time doing this but sometimes it just makes perfect business sense. Murphy's law says that he will be a home in the next month though and that SUCKS!

Nov 06, 2009 11:20 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Lenn, good question. It just sort of snuck up on me. I had sort of unofficially let them drop many times, but lately she was on a mission and I thougth he was finally on board. When we brought him up for the best of the best and he had the same reaction, I knew I should have done this long ago.

Bill, I hope they do for her sake. She deserves it.

Nov 07, 2009 12:23 AM
Barb Szabo, CRS
RE/MAX Above & Beyond - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Difficult but necessary. When people won't listen to reason and the hard cold facts of the market, it's time to say goodbye.

Nov 07, 2009 05:47 AM
Barb Van Stensel
Chicago, IL

You could have made more money working for McDonald's with benefits!  Taht is a long time and I think you knew long before that they were just window shoppers looking for the deal of the century.  All I can suggest is, "next"....

 

Nov 07, 2009 08:11 AM
Monique Combs
Royal Shell Real Estate - Bonita Springs, FL
Royal Shell Real Estate - Monique Combs

Phillip ~ Thank goodness. Your time is money. Some people are just bored and want something to do on the weekends. I terminated a client/friend last month. I think he just wanted something to do on a Sat/Sun afternoon.

Nov 07, 2009 12:03 PM
Joe Brant
Keller Williams Realty - Oriental, NC
ABR, GRI, ePRO

There are some people that no one should have to work with.  I've told a few "goodbye" myself, and it sure feels good to get my life back in order once they're gone.  Fortunately, most that I work with are reasonable.

Nov 07, 2009 12:57 PM
Melina Tomson
Tomson Burnham, llc Licensed in the State of Oregon - Salem, OR
Principal Broker/Owner, M.S.

From contact to close 756 days...my longest clients.  I won't do that again.  I almost fired them, but then we finally found a place they agreed on. 

I did have another client that I cut loose rather quickly and he rubbed my nose in the commission that I lost.  I still make the right choice on that one.  The fact that he felt compelled to tell me how much money I lost...not the right person for me.

Nov 07, 2009 04:23 PM
James Bath
Gulf Shores Realty - Venice, FL
REALTOR® , AHWD® , SRES® ,e-PRO®

Hey, we don't have "clients" in Florida unless they have signed an exclusive buyers agreement with us!  So, most of the time they are customers with no strings attached. Mote Point.  They are still hard to 'fire', but with experience it becomes a lot easier, than it is for the Newbies.

Nov 08, 2009 12:55 AM