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Working without a Realtor has more advantages

By Rick & Ines - Miami Beach Real Estate

Real Estate Agent with Majestic Properties 3061802

September 08, 2007 11:36 AM

We went to show one of our listings today to a buyer not working with a Realtor. Of course our goal is primarily to sell them that house, but it is also to gain that buyer as a customer. This buyer is different - she has done her homework, she knows the inventory, the price per square foot, the recent sales and how long properties have been on the market. no reator necessary

When we asked why she is not working with a Realtor, her answer was that she thought she would have a negotiating advantage if a second Realtor was not involved.

We all have ways to respond to unrepresented real estate buyers, we all have our schpeels and some even scripts. We all would have made points about the advantages of working with an agent that knows the area, the other Realtors and the inventory. We would have even explained the real disadvantages of working without an agent.

I wanted to pose this question here in Active Rain to see what approach you would have taken with an educated consumer that believes there are more advantages to working without a Realtor than with one.

What would you have done? Please keep in mind that even if you could not get this consumer as a buyer, it would be smart to keep the doors open in case she liked the listing she was looking at.

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George Souto

George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT

Your Connecticut Mortgage Expert

Ines, there are 69 comments before this one and it is to late at night to go back and read them all, so someone might have stated this already. My first response to this Buyer would be to simply ask what negotiation advantages does she she has by not having a second Realtor involved. After listening to what she had to say I would then proceed to address them one by one. In this business sometimes we are to quick to respond before we really know what we are responding to. We need to listen more, and then we can respond correctly. God gave us two ears and one mouth for a reason.

Sep 09, 2007 01:18 PM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Kaye - I almost missed you. AMEN to that!! And those same people that worry more about commission end up regreting not paying attention to the important details of the home.

Eric - you are pointing out the most important detail of this whole discussion. It is about educating the consumer and proving all those myths wrong (with Cyndee's MYTHBUSTERS), if they don't want to listen, then we can at least know we tried.

Sep 09, 2007 01:18 PM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

)George - you are absolutely right - everyone in the real estate industry should learn to shot up and listen!! It is the single most important factor in establishing a relationship. Blogging is about humanizing us, and what do we accomplish if we can't listen.....once we are "humanized". Good Catch! (that last spammer dude was zapped!

Sep 09, 2007 02:05 PM

Sue Argue

Staged First Impressions - Hampton, NH

NH Home Stager

Ines, comment #72, whew that's a lot to read but well worth the effort. I learned a lot.

Sep 10, 2007 03:14 AM

David A. Podgursky PA

THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL

THE PODGURSKY GROUP - Make the Right Move!

very South Florida attitude

buyers think that if they don't have an agent then the listing agent and owner will give up the 3% they would have paid to the cooperating agent.

thus far I don't believe I've heard of that happening in many transactions. Sure, to get a deal done a good Realtor will come off their commissions but even still there is a place in the listing agreement where the agent can "bring a buyer" and get full or "slightly discounted" commission... like a 6/5 or 6/4 arrangement.

I just don't believe that buyers understand that when they come to work with the listing agent, most of the time there are dollar signs in that agent's eyes - not a sense of "hey this is one clever negotiator"

Sep 10, 2007 03:56 AM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Sue - your follow up article is excellent and worth a look by everyone!

Buyer's Agents: Am I Missing Something?

Hey David! LOL! "most of the time there are dollar signs in that agent's eyes" - unfortunately, as bad as that statement may sound, it can be true. I know many agents that would immediately say "home run!! - I get double the commission"<insert evil grin>, I also know agents that only show their own listings to buyers for the same reason. More the reason to find a buyer's agent that you trust!

Sep 10, 2007 05:52 AM

Sharon Simms

Coastal Properties Group International - Christie's International - Saint Petersburg, FL

St. Petersburg FL - CRS CIPS CLHMS RSPS

Ines - excellent post to get everyone thinking! I did read all the comments, and really like your question, "If you were a buyer and had the choice of reducing the commission of your home to benefit 3 people, which would you choose? yourself, the agent you hired and trust, or a complete stranger? : )" Your prospect obviously wasn't ready to listen to you, so forego the education - at this point - and just ask your question.

Sep 10, 2007 11:27 AM

Anonymous

Unfortunately in this market it often boils done to one simple question. Does the seller want to use the SOC to offset the reduced price being offer by an unreprsented buyer, and get the house sold today; or does he want to stands on "principle" and hold out, hoping for a represented buyer who will also pay a price that will net him the same.

I think most sellers don't give a hoot, who technically gets the soc, as long as they get the price and terms that they are looking for.

I think my job is not to worry if I'm going to convert a buyer or not; but to get the property sold for my client.

Sep 10, 2007 12:51 PM

#75

Leah Ross

Your Tampa Bay Mortgage Source - Tampa, FL

Tampa, Florida Mortgage

Great question!! Would you believe that even being in the business, I have thought the exact same thing!! It has been great seeing the different responses!

Sep 10, 2007 12:51 PM

Anonymous

The last post was from me. Sorry I forgot to imput the graphic.

Sep 10, 2007 12:54 PM

#77

Anonymous

Susan Peters Realtor/Staging Specialist

Okay I must be really losing it, the last to nameless comment were from me.

Sep 10, 2007 12:56 PM

#78

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Susan - I think we're back to square one with your question. The comission is agreed to by 2 parties (and the buyer is not involved). It's up to those 2 parties to agree who will benefit, not just the seller, not just the selling agent. The seller does not have to wait for a represented buyer at all, the problem is for a buyer to assume that they have a negotiating advantage when they really don't.

And I totally agree that the Realtor's job in this case is to sell the property, not convert the buyer.....that's why the discussion is so interesting.

Leah - I totally agree.....we can always learn in this platform, that's for sure!

Sep 10, 2007 01:38 PM

Ron Allen

KW Fayetteville - Fayetteville, NC

Fayetteville NC homes

I hate to let someone wallow in their own ignorance (that's another way of saying I like to correct people isn't it?) but some people aren't worth trying to correct. This buyer is no doubt clever and well researched but If I were in that position I'd focus on selling the house and letting the buyer have her silly idea..., or at least I hope I'd have the presence of mind to do so.

Sep 10, 2007 02:05 PM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Ron - here I go again playing devil's advocate. Since this buyer is so astute, so versatile and so educated. What makes you think anything you say could sell them the house. They obviously have a very particular set of criteria that would not be fullfilled by anything you had to say. In this case.....do you just act as a door opener and let them get on with their own tour?

Sep 10, 2007 02:49 PM

Ron Allen

KW Fayetteville - Fayetteville, NC

Fayetteville NC homes

After re-reading my comment I hope you don't think I was saying you're ignorant (I meant the buyer)

I don't think the buyer would listen to me..., but when I say focus on selling the house all I mean is., represent the seller client, even if that means shutting my mouth so the buyer is maybe slightly more receptive. I doubt I would handle it any better than you have. But I think we agree, she is probably not easily teachable and not worth your time. Ive run into this sort of person to (different circumstances) and its frustrating because you and I both know they could benefit from our help.., but getting them to realize it...? I haven't figured out a way.

Great post, I wrote one along these lines a couple weeks ago. Thanks for the dialog, Ron

Sep 11, 2007 02:31 AM

Thomas Weiss

Thomas R. Weiss - West Palm Beach, FL

Ines,

I am just reading the responses, this is a great question to be asked, and I am here t o see what everyone says, if you don't mind :0)

Tom Weiss

Sep 11, 2007 01:23 PM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Ron - I didn't think that AT ALL, I was just playing devil's advocate again. Somehow I like the part! : )

Thomas - please be my guest, there's some good stuff here!

Sep 11, 2007 01:55 PM

Anonymous

incognicky

i would tell them that if they shaved their head for charity, they might get a deal on the crib. no realtor(r), no shaving their head, no donation, no deal!!!

PS. http://www.shaveyourheadforcharity.com is believed to generate business for realtors(r) that donate money to such a noble cause. do i need to help you write that check?? hhhmmm?

signed- no one and you'll never ever ever ever know.

Sep 12, 2007 08:14 AM

#85

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

Incognicky - You are doing such an awesome job with your fundraiser and everyone that commented here should at least send you $20. DID YOU HEAR THAT PEOPLE??? - the money is going to a great chariy, go read www.shaveyourheadforcharity.com

Sep 12, 2007 08:29 AM

Nick M.

Certified Residential Appraiser- West Palm Beach Real Estate - West Palm Beach, FL

Realtor-Appraiser in West Palm-South Florida Real Estate Appraiser

at this point $10 each would work also. i think i put a clause in (very) small letters, that 5K turns the clippers on. not 1K :)

btw, that wasn't me above ;)

ok, donors get a 4 square photo, signed by yours truly.. before, during, mohawk and after.. all in one photo.. posage included in $10 donation. howz that?

better than that statue anyday!!

Sep 12, 2007 08:41 AM