Jimmy Homes just left a listing appointment with Bob and Sandy Jones. The couple had been referred to him from a friend and client, Bill Benson. Homes sold Benson's home three years earlier, and also acted as his buyer's agent for his new house. The Jones's were nice people, and prior to their meeting, Homes had been looking forward to the appointment. After the appointment, however, he opted not to take the listing. Even though Jimmy Smith was disappointed, he knew that he'd made the right decision.
The appointment started off well. Bob and Sandy Jones just saw their last kid graduate from college, and were looking to downsize from their 3,700 square foot home into a town house golf course community. Bob was a physician. He had an ego like many successful professionals, but it was understandable. Bob had graduated from Johns Hopkins many years ago, and managed to put together a successful practice over the past thirty years, and his patients loved him.
In addition to ego, Bob Jones also had a brother-in law (Jack Hartley)who worked in real estate sales for a few months back in 1991. He and Sandy asked their relative for advice, and Hartley advised the empty-nesters that commissions are negotiable, and they shouldn't offer to pay more than 3%. He also told them that they should ask their real estate agent to conduct open houses every Sunday. This, according to Hartley, would help them sell the home faster.
Jimmy Smith knew that no broker in town would be interested in showing a listing at the 3% commission level. He also felt that online virtual tours were better than open houses, and communicated this concern. Homes also advised the Jones's that open houses, more often than not, provide agents with new buyer clients, but rarely sell the home.
Bob and Sandy Jones, however, were pretty firm with their demands. They trusted their relative, and believed that his advice made sense. But they also had some other demands. The couple wanted AT LEAST 72 hours notice for each showing, and wanted all showings to be between the hours of 12 and 2, because this was the time frame that worked best for them.
Finally, Bob and Sandy were quite attached to their home. They had recently done some remodeling, and felt that their home should be priced in the $820K range. Jimmy Homes, however, did a market analysis, and was able to show them a number of comparable homes that were selling in the $730K range.
Homes cautioned Bob and Sandy that overpricing could keep the house from being sold in a timely manner. Nevertheless, the Jones's were pretty set on the price they had in mind.
After reviewing all of the demands, Jimmy Homes felt that he'd be better walking away. He wanted the listing, but this was not not a good bet. He politely told Bob and Sandy that he just didn't feel that he'd be a good fit to market their home, and recommended that they work with another agent.
Homes, however, still sent a "thank you note" to Bill Benson after the appointment. He also included a bottle of Benson's favorite wine to let him know that he appreciated the referral. After all, it wasn't Benson's fault that the Jones's had some unrealistic expectations. Homes also wanted to maintain a good relationship with one of his best referral sources.
In addition, Jimmy Homes also sent a hand-written note card to Bob and Sandy, thanking them for their time. He also kept the couple on his newsletter list, wished them well, and moved on.
Four years later, Jimmy Homes got a call from Bob Jones. Bob Jones told Homes that he tried selling his home with another agent, and gave up after the home sat on the market more than 18 months. Jones also said that he enjoyed the newsletter he was getting from Homes each month, and said that he should've listened to him when he met with Homes the first time.
After the conversation, Jimmy Homes found himself listing Bob and Sandy Jones's home. This time, however, the new clients followed the agent's recommendations, and saw the home sell a couple of months later.
As Kenny Rogers says in his song, The Gambler, "you've got to know when to fold."
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