"The Seller Has a Friend Who Will List it Really Cheap"

I just spoke with someone regarding that specific scenario just last evening.  He wanted me to help out his inlaws, although they had a friend of 40 years with whom they are planning to list.  My friend told me that he felt that was not in their best interest and suggested I call them.  No thanks.  Let their dear old friend list the property.  I am not interjecting myself into this.  I would be second-guessed at every turn and the grousing from the dear old friend to the sellers would make them very unhappy.  I know that I am worth my commission, but I know when to leave well enough alone, too. 

......... hmmm, Mr seller, in order to get the best price for your home you need a powerfull negotiator, do you agree? Answer - Yes.  Well Mr seller, if another agent can't even negotiate a full commission on their own behalf, how successful do you think they will be negotiating the best offer for your house? ........ Let me show you my marketing plan that I can customize to meet your needs.

Myself in this scenario:  I would do my best to secure an appointment with the seller(s).  I find that sellers don't always know all that is involved in selling a property, and when our extensive marketing plan is layed out for them, the seller starts to listen.  When listening, the seller begins to compare what the "friend" has offered or explained and wonders if the "friend" is the best choice.  It actually is an excellent opportunity as "friends" don't usually give a "full blown" listing presentation as they believe they have a "shoe in" listing.  It is a time to put out your best presentation and let the chips fall where they fall.  The objections to increased commissions have been easier to overcome in the recent market climate as sellers REALLY need professional, experienced, & skilled agents to maximize the likelihood of a home sale.  If the "friend" can provide this same service and professionalism and at a less cost to the seller, then that is their best choice and we should be happy the seller can save some money for themselves. 

Ignorance is not bliss however, and agents should be careful about knocking the services of some of the discount brokerages without knowing how their fee structures work or how they can charge so little for the full service options they offer. Slamming other agents is never good business practice and in the long run doesn't make you look like the professional that you are.  Educating the seller, like you have suggested, Jennifer, is excellent and portraying yourself as a professional and selling your services in their best light is always a great thing.  I'll look forward to tomorrow's post.

I do feel I am being used at times just to get my views but that is part of the business.

I have found people respond positively when I use Mike's approach.  I preface the conversation by telling them I know they want to net the most most money, and respect whatever they decide......then I tell them why I'm worth it.

I think that validating the sellers thought that the best deal for him might be the cut rate, in in discussing my marketing with that seller I would never say anything negative about the agent who does cut his rate. The whole discussion should be all about doing each step of the marketing process a little bit better than anyone else and about getting it priced right in the first place.

Jennifer that is a great response that I will tattoo on my arm.  Not really but I need to remember it.

When I get a cold call that I feel like isn't going to go anywhere on a potential listing, I want to ask, which of our services that we give to you would you like us to cut?   So should we not put it into the 3 real estate advertising books we use?  Or how about missing the daily news paper?  How about just 1 pic on Realtor.com.....I can go on and on.

Jennifer I don't agree with Mike, I think we need to deal with each individual situation as it comes our way. We come across so many people, personalities and sales opportunities it is not possible to have a canned answer to anything. In the case of the friend I would probably use the approach to the seller with two options, once the listing has expired if the friend is unsuccessful in selling it I would be happy to present my marketing plan to you or if you decide not to use the friend I would like the chance to show you what you can expect from me. If I was asked about my fee I would tell them. Since they are no ones client yet I would give them my phone number, my email address, and my web address and tell them I look forward to hearing from them or hearing that their property sold. I believe that people are capable of making decisions for themselves without being manipulated to make them. Not being a hard core sales person I certain that I lose some opportunties but that is ok. I'm bound to get some and lose some anyway.

I really do think it's all about getting the best deal for the client -- whether that happens to be from me or not!  I would absolutely want to do my listing presentation after having secured an appointment with words similar to those you suggested.  In addition, I would ask who the friend is.  If it's someone I know and know how they do business, I may just agree that they have the best person for the job and step aside.

It could be a case where the friend is a perfectly competent agent and has decided to cut their commission simply out of friendship.  I have ( a very few) friends I would consider doing that for.

Why would I do a listing presentation even if I was pretty sure they were going to list with the friend anyway?  I have had some really interesting referrals.  And it would not surprise me if at some point the friend was no longer an agent I started getting all the client's referrals for no reason other than having treated them well and validated their original choice in agent.

Can't wait to hear the next thought tomorrow.  Yes - I was advised since I started to not apologize for my fee.  Do the work and show why you're worth it.

No one is getting any money of the house doesn't sell, who ever can ge the job done is the best agent to choose!

The question that keeps popping into my head is this:  WHY is the seller seeking out other agents?  Perhaps the seller isn't all that confident that going with the "cheaper" agent is the right way to go.  Karen (#8) brings up a possible scenario, which has happened to me before. (no likey subterfuge, but it sometimes comes with the territory!)

Here's the thing...If they want what we have to offer, but don't want to pay for it, we don't have to take the listing.  If, on the other hand, they are willing to pay a higher fee to receive services that the friend does not offer, their reason for seeking out other agents' opinions/services may be to 1) find the agent who will do the job the way the sellers want it done and 2) to give them some substantial reasons to tell their friend why they won't be hiring them.

None of these questions can really be answered until we communicate with the seller.

hmmm...now that I posted that, I suppose I should go read your follow-up.  LOL!!

I think your dirrect approach is the best way... But you do have to be prepared with why you are worth it! 

Many agents get caught up in worrying about it, could it be that they do not think they are worth it them selves?  you need to believe in yourself first before a seller will believe in you!