The Ones that Got Away (Referrals for Listings); Asking Better Questions Next Time!

Referrals from other agents or from past clients and friends often makes up the lion's share of my business. If you have been in real estate awhile, that's probably true for you, too.

Usually I have a pretty good success rate with getting signed listings if I get in front of sellers - especially when they come to me as referrals.  Recently, though,  I had two referrals that didn't pan out and they had similar circumstances. So I wanted to chat about that today. Perhaps my situation will help someone else to avoid what I tripped on.

So here's the story:

Both referrals came to me from out-of-area agents. One found me through my company's relocation department and one from doing a web search for Silicon Valley Realtors. Both wanted an expert in the Cambrian Park area of San Jose, which I am. One was for a townhome listing, and the other was for a single family listing.

The townhome is very clean and pretty original. The seller is an older woman who was very pleasant with me. When we sat down to talk about marketing and her home's probable buyer value, she put in front of me (first thing) a couple of ads from discount or flat fee brokers and asked what that was all all about. Commission was her main concern. We discussed it at length. I explained what I do (full service and beyond) and why it matters to getting her the highest net.  I can demonstrate that my listings get more money to the sellers than other agents' listings. She was focused on the commission, though - not sure what I was explaining sunk in. (Ever had that experience?)

I did ask her if she was speaking with any other agents (often with agent referrals, they don't). She said yes, her son had a very good friend who's an agent and she planned on chatting with him too. The referring agent hadn't told me that I was competing against a family friend! That was a surprise.

Anyway, we chatted more and she listened politely and was thankful for my book ("Get the Best Deal when Selling Your Home in Silicon Valley") and kept it, but did not want to keep my marketing analysis binder. I asked permission to keep in touch and check back with her, and she said that was fine. When I left, I did contact my relo department and told them that I thought she was going to go with her son's friend, a discount broker.  Had she been leaning toward me, she'd have kept my binder.

The single family house situation was somewhat similar, except that the seller was an out of town person selling a house for her mother. I was referred to her by her agent in the other state and communicated a lot with her by phone and email. She told me a month ahead of time that she would be coming out "sometime" and I let her know when I was in and not in town (in 98%). She arrived on one of my gone days and was here just 24 hours, so I did not get a chance to meet her at all. I was let in to view the home by a neighbor and again communicated by phone and email, sending a CMA etc. 

I did not think to ask, this time, if she were talking with another agent. I should have!

The gal was nice, but not responsive after she got my CMA. Finally I did hear back from her. They'd hired an agent who had previously assisted her parents and her sibling! 

In both cases, there was a preferred agent in place and I was the "outside chance" or "just in case" agent. In both cases, I believe that the sellers were chatting with me just to get "another opinion" (which is a good idea). That is TOTALLY fine, but of course knowledge is power and I wish I had known this going into both situations. I would have prepared just a little differently.

The one thing I now am positive about, though, is I will always ask upfront if the seller is interviewing other agents, and if so, how many and have they worked with them in the past, are they a family friend or neighbor etc.  This is completely my mistake for not having done it, and it's a mistake I won't repeat!

I will also ask the referring agent what the situation is precisely - is there a preferred agent in place? Am I the "second opinion"?   Referrals are my lifeblood and I love getting them, but I do with that the agents had levelled with me and given me "full disclosure" on the situation.

And Ive learned that when I place an outbound referral, more info to the other agent is better!

I just need to know, upfront, if the odds are with me or against me!  I've learned from these two lost opportunities. Hope you will find my stories helpful too.