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Listing A Friends Property

I actually Sold one of my friends a home a few years back. They had wanted me to list the home about two month ago and I encouraged them to try to keep making payments and rent the extra room they had in a separate part of the house with its own entry and full living quarters. The main reason for the advise was to have them make it through the down cycle of Real Estate.

I got the call again today! They ask me what they really could get in dollar amount. I mentioned to them a price and then she continued to say she needed a higher amount by about $50,000. Then she began to say she had a card in her door stating that this agent had a buyer for the home. I only again asked her to rent another room for the extra income and keep the home. I knew this agent from my experience in this area. He uses this type of approach to get the listings.

It was hard to tell her to list with him then and when this real buyer does not surface what might she do? My friend already has two rental incomes from this property with very little overhead. She will never be able to replace this type of home again. She owes very little on the original purchase price along with a small second mortgage. My heart said to let it go and my business side thinks to have the listing! My heart is bigger.

Posted by Gary Bland on 10/11/2007 12:17 AM

Comments (5)

5 Comments on Listing A Friends Property

OCT

2007

You did the right thing, and she should respect you in the long run for it. She wouldn't have come (and come back to you) if she didn't think you would treat her fairly.

Sometimes working with friend is not easy - but if you believe this other agent will take advantage of her you should step in. Tell your friend that if she really wants to sell her home and if the other "agent" does have a buyer she can sign a 1 week listing agreement. If he does have a buyer he should be able to the deal accepted within one week. If he does not have a buyer she is not obligated to a long contract

Although my scenario is different, I can appreciate your concern about listing a friend's property. Today I was showing a property in the neighborhood where a friend lives and was surprised to see a FSBO sign in their yard. I had just spoken to her about a month ago and there had been no mention of putting their property on the market. My immediate reaction upon seeing the sign was dismay that they had not called me for advice, even if they were certain that they were going to go it alone anyway. I mentioned this to my college age daughter and to another friend who does not know them and then thought long and hard what it would be really like to list their home for sale. A nightmare!!! We met by circumstance when living abroad, children enrolled in the same school, both of us eventually returning to the same school district here in the US. Aside from that, I don't think we would ever have been friends. I know my friend's husband would want to totally control the show, certain that he had all the answers despite working in a field not even remotely related to real estate and clearly not knowledgeable about it at all - ask his neighbors! He would be unable to take advice on staging, yard care, pricing, offers. She would take a back seat to whatever he said. In the space of about an hour, I realized that if they ultimately approached me about listing their property, I would tell them that I would be happy to take referrals for business but that listing property for friends was not something I would want to do. Too personal, too much room for the friendship to be endangered. The fact of the matter? The friendship would perish and the referrals would never materialize. What's that prediction? One happy customer tells one person about their experience and one unhappy customer tells ten people? My friend's commission check I can do without. My future income thanks me.

Gary, this person is your friend. Regardless of that, you have a responsibility to tell the truth. You did the right thing. All your friend can do now is weigh your advice and make a decision.

OCT

2007

Gary ... the heart rules every time! You did the right thing.

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