Have you ever had to fire a client?

We all have clients that are difficult.  I've found that you must draw the line where the client has become a liability rather than an asset.

I've only had to do this a handful of times in fourteen years however it was painful.  The grounds for dismissal;

  • Dishonesty
  • Total disregard for my time
  • Fraud
  • All the above

I've heard several cases where the agent just keeps avoiding the client.  This is all well and good when you're working with the buyer but what if you represent the seller?  The best way to handle a difficult situation is to sit down with a client and discuss the problem.  In most cases the client isn't aware of the problem.  In this case, the conversation gets the problem out in the open and you can move on with the listing or transaction.  On the other hand I have had clients who wanted me to commit fraud and when I've told them that this would be a violation of state law, they have threatened to fire me.  This becomes an easy situation, I quit.  The agent who took my place, also quit.

Don't be afraid to be the professional.  You know who will be hung out to dry when the fraud is discovered.  I can't afford some one to control my license being suspended.

Buyers, who don't show up for appointments and fail to call are another pet peeve.  I always council the delinquent client the first time and remind them that they're taking away from my business.  If it should happen a second time, which it has; I will follow up and release them from my buyer broker agreement immediately...  

Do you fire clients or endure the pain???

This post was authored by Paul Henderson. ©2012, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Paul Henderson, RE/MAX Professionals, Tacoma, WA.

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Courtesy of 

Paul Henderson, Residential Real Estate Broker

Realtor ® ABR, CRS, GRI, CDPE

RE/MAX Professionals

As a Residential Broker and Relocation Specialist, I sell homes in or around JBLM, DuPont, Tacoma, Gig Harbor and Hartstene Pointe in Washington State.
Please visit my website at http://www.phenderson.net to search for homes and information 
(all information is believed to be accurate but is not guaranteed or warranted in any way)


Referrals are always welcomed and appreciated, Thank-you!

(As a member of the NWMLS, this blog post is intended to comply with NWMLS rules as pertaining to blogging.)

 

 
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52 Comments on Do you fire clients or endure the pain???

20 Most Recent Comments Displayed Show All

JAN
05
614,965 Points Outside Blog

When it becomes apparent that there is a problem in the working relationship with a client it is best to end it as soon as possible. I have heard agents speak of tolerating whatever the client did beause they feel they have so much money and time in the relationship already.

Betty
11:21am • #33

We've only come across this a few times, but it's happened.  We always make a professional end to the situation.  Its not productive to continue with someone who does not respect your time or morals.
11:50am • #34
789,670 Points 112 Featured Posts Outside Blog Called Shot Master

Paul, in the five years I have been doing real estate, I only let one client go. His moods were up and down like a rollercoaster and he was sending me some pretty nasty emails. It was very stressful for me. I finally let him go because I thought I was going to have a nervous breakdown from the abuse. I found out later he was hospitalized because he was bi-polar. That certainly explained his manic behavior.
11:52am • #35
365,735 Points 29 Featured Posts Outside Blog Called Shot Master

Currently enduring the pain because, as our broker says, everything sells eventually But when a seller that we represent doesn't show up to sign the offer we (finally) got on his (stubbornly overpriced) home, we have to wonder how much more of our time we're going to waste. 
11:59am • #36
698,281 Points 15 Featured Posts Outside Blog Called Shot Master

I have fired three clients in the last year for dishonesty.  And, I can't believe it.
12:28pm • #37
976,790 Points 60 Featured Posts Outside Blog Called Shot Master

Paul, just like you... this has only come up a very few times in my many years as a Realtor.  I have "severed" my relationship with these clients... but when I did it, I did not have anything I said make it seem like it was the client's fault.

I simply said that, after analyzing the client's needs... I did not feel that I could give them the type of service they needed, and was ending our client/agent relationship.  Sweet and simple.

If they asked for more reasons... I simply repeated what I said above.  Nothing else, and I mean... nothing... else.

At first I felt awkward, but after a while, when I became more comfortable in what I was doing, and how I was choosing the words for it... all was fine.  Should others do this?  Well, everyone has things that work for them... and this, worked for me.

Maybe it was the chicken's way out, but my laying the blame at my inability to serve their needs, and being as ambiguous as possible... it totally absolved me from any liability.
12:49pm • #38
1,547,534 Points 281 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Paul.... I never did well with high maintenance people.... I always had too many new custom homes to deal with so I had no time to hand hold....they needed to do what I said or I'd cut them loose....happened only a couple of times in 35 years.... but when I cut them loose, it was done quickly....no time to think and negotiate....when I'm done with you, I'm done!!!  I bet you couldn't have guess that though...
1:47pm • #39
1,138,296 Points 91 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Luckily I am busy enough to be selective in choosing clients. I would fire a client for the same reasons you have outlined. 
2:13pm • #40
316,195 Points

I would hope that if anyone cannot work with another they would just politely sever the relationship and be done. 77% of our business is referal based so our customers seem to mirror one another.
3:59pm • #41
976,963 Points 103 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Suzanne, I don't believe that it is anything you could've done differently. Some of those things that people are dishonest about are just a preview of coming attractions situations... 

Karen Anne, you're such a class act I wouldn't expect anything less if you... 

Barbara, trust me, if I were your client I would toe the line...

Erica, I don't let my level of business at the time of the infraction reflect upon my decision to end the relationship. I have fired clients even when I really needed the business... 
4:04pm • #42
515,129 Points 26 Featured Posts Outside Blog Called Shot Master

Paul, like you, I've done this, but not very often. I do what I can to explain why I'm doing it, and try to get them to understand what the right way is for the future agent they torture work with.
4:16pm • #43
391,871 Points 3 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I chop them off at the pockets. I just tell them I am NOT the man for the job and wish them all the best!
4:28pm • #44
708,880 Points 39 Featured Posts Outside Blog Called Shot Master

FIRE! It's not worth it, just move along to another client that wants you to help them. I think that a good portion of it has to do with the fear that another deal will not come along.  If you keep trying to look for them instead of having them drop into your lap, you'll feel this way.

I've had sellers lie & I've fired them & still held them to the 30 days. They've screamed, kicked & gotten abusive & I just remind them they were the ones that were unethical. It's funny when scammers call you unethical when they can't get their way.
6:14pm • #45
1,363,759 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Paul - I've done both and have often found that the pain is just not worth it.
7:06pm • #46
470,318 Points 50 Featured Posts Called Shot Master

Paul, yes, I've fired clients, many in fact in almost 6 years and that includes both buyers and sellers. Sellers for dishonesty (which is a time waster). Buyers for dishonesty (another time waster). I won't put up with disrespect which includes cancelled appointments, forgotten appointments, dishonesty and lies to direct questions that I have to ask in order to do my job, going behind my back to other agents when we have a signed contract (yes, I do find out), and definitely I will not participate in fraud. Rant finished. Happy New Year and much success to you in 2013!

P.S. How I fire them varies from client to client. It's not always easy to do.
8:49pm • #47
2 Featured Posts Outside Blog

I fired my first clients this year.  They were very nice people, but they had very unrealistic expectations with regards to home prices.  They had just taken an investment course, and believed that they should be able to buy a property for about 1/2 of list price, (which doesn't happen in my market).  I knew that it was useless to convince them.  I gave them the name of another realtor who I knew would be willing to take them on. I found out that he later let them go as well. 
9:36pm • #48
124,321 Points 2 Featured Posts Outside Blog Called Shot Master

Paul,

Yes fire the client for all of the above reasons you mentioned.  Two have to do with you values and ethics which cannot be compromised and the other has no respect for your time.  You can't work with someone where there is not mutual respect.
10:43pm • #49
JAN
06
210,446 Points 1 Featured Post

I don't take clients who want me to be a lowball offer robot, i.e. generate 10 offers a week at 60% of list.

I explain how they can get their own license and then they can write all the offers they want!

 

 
9:38am • #50
2 Featured Posts Outside Blog

Very interesting post. We all know the saying "the customer is always right", but in any business, there are exceptions. The "total disregard for time" element hits home for me. When you're not a salaried employee, your time is your commerce...and if one client is expecting ridiculous levels of your time, it's taking you away from other clients and ends up costing you money. I've never had to outright fire a client, but I can see cases where it would be the right thing to do.
6:00pm • #51
JAN
12

Reason I got into the real estate business was my being told the customer is always right was pure BS.  It is not true and never has been. That saying should have most of the time tacked onto it.

When I started my brokerage I had a binder marked people and companies we do not do business with. And the agents were to check it, so we keep it by the receptionist in case an agent called in to check. Well one of our sellers stopped by the office and while sitting in the reception area saw the binder and leafed through it and saw his neighbors name and mentioned it to him,  I quickly got a hot phone call from our blacklisted person and just calmly told him his neighbor had gone into the receptionist's private area and found our binder, and yes your name is in it, I will make a copy of it for you and if anything is incorrect I will correct it.

A few days later I got a call from our blacklisted party, saying everything was correct and he was an idiot in those days, how about starting a probationary section. I thought his suggestion was a good one and did.
2:45pm • #52

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Paul Henderson, Broker, Realtor® Tacoma,Gig Harbor,DuPont,HartstenePointe (RE/MAX Professionals & Four Seasons Inc.) Ambassador_large

Paul Henderson, Broker, Realtor® Tacoma,Gig Harbor,DuPont,HartstenePointe

Tacoma, WA

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RE/MAX Professionals & Four Seasons Inc.

Address: 4801 S 19th St, Suite 200, Tacoma, WA, 98405

Office Phone: (253) 830-6003

Cell Phone: (253) 318-3493

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