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Friends used another agent: Or you put the shaft into your own back

By
Real Estate Broker/Owner with Riverbend Realty, Cape Girardeau, MO 2004008944

NEW AGENT: "My friends just bought a house using another agent then texted me the good news. I showed them about a dozen houses! I've been in real estate for nearly two years, and I still haven't sold a house. I'm about to quit..."

It's time for the truth, New Agent. I am pretty sure that your friends texted you the good news because they did not know how the system actually works, and THAT is YOUR fault. Two things are at work here: You did not have a buyers' agency agreement with them (BIG mistake), and they did not really understand how you are compensated (if they truly understood that they were giving you the royal shaft, they would be hiding from you In Over Your Headinstead of joyfully sharing the "good" news with you).

Real estate is tough, and you have to learn to be proactive. If you've been at it for two years and have not made your first sale, it's time to change your method.

NEVER assume that any customer knows about commission only sales. Tell them, "Thank you for remembering me. I work on commission only. If you don't buy or sell through me, I make nothing--so I am very motivated to make you happy. I can represent you in the purchase of any listed property, so please call me first." Also, be sure to explain buyers' agency.

Of course I'm guessing here, but the sequence of events probably went something like this: They went to an open house (or saw an ad or drove by a sign in the yard), talked to the ever-so-helpful listing agent, viewed the house with the ever-so-helpful listing agent (maybe even went with the listing agent to view similar houses), and before you know it, they were under contract WITHOUT having a CLUE that they were hurting you.

You have to TRAIN the customer (I'm assuming here that they were customers instead of clients and that you did not have a buyers' agency with them) to call YOU and not any other agent, and then you have to keep reminding them. When they fall in love with a house, reason flies out of the window--just like in puppy love. If you didn't "raise them up right," they are going to make a mistake and burn you in the process.

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If you are looking for a foreclosure in Cape Girardeau, Perry, N. Scott, or Bollinger counties, I am the region's most experienced REO agent. As the area's ONLY Fannie Mae direct listing agent, I list more foreclosure properties than any other agent in this MLS. I am among the few local agents approved to both list and sell HUD properties. Give me a call if you are looking for help with the purchase of a foreclosure property.

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Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Liz, 2 years in the business without a sale is a long time unless you are part time, in which case there's the credibility issue. Be positive enough in your presentations so that you don't show too much enthusiasm or anxiety as that can certainly be a turn off.  Start writing Localism posts where you are perceived as the expert, the business will follow

Aug 04, 2013 07:18 AM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Ed, Ed, Ed: Thanks for your concern, but I need to clarify. I was speaking to a new agent, not speaking of myself (I am a broker/owner)! You have good advice, though.

Aug 04, 2013 09:41 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

Explaining Buyer Agency first not only protects the customer, it protects the agent if they become clients. If explained properly, there should be no reason they wouldn't want the protection a buyer's rep agreement offers them.

Aug 04, 2013 12:14 PM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Joni~How true...that is, if the agent is doing her job. Buyers have to be told, though, and the new agent in my scenario thought her friends were too loyal to her to use another agent. The really sad thing is that they probably didn't even realize what was happening...

Aug 04, 2013 02:37 PM
Bette Gottwald
UNITED REAL ESTATE | Central PA - Mechanicsburg, PA
"Bet"on Central PA Real Estate!

Liz, The way you phrased "Thank you for remembering me . . . so I am very motivated to make you happy" is clever.  I totally agree, we all need to explain Buyer Agency thoroughly.

Aug 05, 2013 09:58 AM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Bet~Thanks. We also have to explain commission-only pay!

Aug 05, 2013 01:51 PM