Unfortunately that's life in sales. Unless there is something stated in a contract for payment for partial services rendered or some type of deposit, then we can only hope to make enough of a connection and bond with a client to hold onto them until we close the deal.

 I believe although yes we are trying to sell ourselves, what we are really selling and what people really buy is a result.

 Cheers

Darren

It is very frustrating that people think realtors are all rich & ripping them off.  My mom has a handout in her presentation about how a realtor gets paid to try & help them understand.  Good post.

Darren- Don't get me wrong, I am NOT upset at a potential client if I am not a good fit for the client, or another agent does a better job for them. I am upset at being used and then not being given the courtesy of the truth or even a heads up.

Chris- thanks, the handout is good idea!

Unfortunately I have to agree with Darren, but  I will add to what he said.

I think a big problem with Realtors is that many sell themselves short.Many Realtors are willing to fall all over themselves to work with a Buyer or Seller and because of this a perception of not really being "professionals" perseveres in our industry.

I think one thing that Realtors need to do is let the Customer know exactly how they get paid, what are the true costs to do business. They should  also explain to them that since we don't sell a house to every Buyer who comes into the office nor does every Listing we get sell; we have to make up for "lost business" by charging the fees we do to the Buyers/Sellers we end up getting under contract and to closing.

Would it surprise you to know that recently both a Buyer and Seller thought that Realtors share all the commission money that comes into the office!!!

As much as we think that consumers are more knowledgeable about our business, most are still not and don't understand how we work or get paid.

That's my two cents on the issue, and I know I ranted a bit, but I too get frustrated and your post has allowed me to vent.

Thanks

I totally agree with you, but I think one of the problems right now is the market.  People are sitting on the fence thinking that they might be able to find a house they like better or a better price.  I don't put anyone in my car unless they have a pre-qualification letter.  I think most people who are serious will go to a morgtage professional before looking for a home.

I agree with the posts above as well that most people have no clue what a Realtor exactly does.  People think you put a sign in the yard or drive people around for an hour and you get paid.  I think agents though that are deceitful and do not have their clients best interest in mind give other agents a bad name.  People assume that "All Realtors are out for one thing and that is money."  I mean don't get me wrong the money is nice, but we do not get paid unless we sell your house or find a house for you.

I think this has happened to all of us.  I find that some buyers.. more than sellers.... don't understand that the company you work under does not pay for gas, insurance or advertising (to name a few).  They also don't understand the split like Christopher said.  It depends a lot on your buyer or seller's demeanor.  Are they listening? or do they only hear what they want to.  Unfortunately you take a chance, give away your knowledge in the hopes to build some sense of respect for the time we put in it.

I too think the general public is mislead on what a Realtors role is. Most do think that we get paid to be chauffers and tour guides. A few do think we get to keep the whole commission. They don't understand about co-op or commission splits and then we receive a percentage of that amount. I am with Melissa all the way on general common courtesy. Please reply to the emails we send or the voice mails ... This is our LIVING not some hobby, in which we decided "oh I think I'll sell some real estate, I'm bored" - PLEASE!!!   

Christopher- Glad to help you vent, lol. You are right about the level of ignorance in regards to how we "get paid". Maybe a detailed explanation written out in each packet is a good thing to implement. I am astounded that someone thought we all share the commissions. Wow! If only...hehe

Andrea- I can see your point, mostly I think the media has portrayed our industry that way more so than "bad seeds". But anytime one is dishonest etc is harms the whole.

Jane- Yes, I too have had people think that my Brokerage pays some kind of salary or something. Most do not know we pay for everything!

Renee- Hi, my name is Vanessa...lol Yes, I really, really would appreciate the decency to return the call or email and just tell me. Simple.

I agree with other posts here, the MEDIA has not been a help to Realtors and their public image.  The thing that I find to be the most outlandish is that the public in general thinks that Realtors are rich and overpaid.  Anyone that works hard, is honest, fair, and does a good job should be paid for their services.  RIGHT?

 daniel

Vanessa,

Oops! I think I had just read one of Melissa's (Grant) posts and I mistakenly typed her name instead of yours. Sorry. Anyway very good post!

Vanessa - I fired a client last week, because he was being unreasonable (among other things). When he called the next day to apologize, I listened, but told him I didn't have time to work with him anymore. He couldn't believe it. I don't have time for inconsiderate people, which is why I want referrals from my sphere.

Daniel- I agree whole heartedly. Most of the agents I know are not rich, those that are have spent years working for it. I do not see poeple telling the grocery store they want the dozen eggs for half price, or the gas station that they want free gas or the family Dr that they don't think he should get paid....

Renee- It's ok, I figured it was Melissa, several people call me Melissa around here, I could be called much worse- (smile) Thanks for the support!

Larry- You are right and that is the only way. We have to respect ourselves first..how you doing buddy? Miss ya!!

Vanessa, I feel the same way when I schedule an inspection and they back out the day I am to do the job. That is a time slot that I loose that I cannot make back up. My time is money too.

Michael- Or even worse, you do the inspection and they think you should not get paid for it, or for only part of it, or get a discount....that is what it amounts to for an agent to do a property search thoroughly and correctly, show houses and then get the bum's rush.

Vanessa- Don't you just hate that!! I use to feel the same way until I said enough already. Now I never take a Buyer out or do any research without them first meeting with me to 1) see if we are a good fit and 2) to explain to them how i work and how I get paid. I do the same thing with Sellers by doing a 2 step listing appointment. If we do not mesh or the house is a real disaster than I have the opportunity to walk away as much as they have the opportunity to. Saves time and money all the way around.

Vanessa, congratulations on the feature. I have to tell you that I stand by my commission. if people want something for nothing, then they need to find someone else to work for them.

This just struck a chord when I read your title. ABSOLUTELY they do. I work in a market where 80% of the sales are REO's and prices have dropped 40% in 18 months. Sellers think I should be able to sell their run-down place for more money than a bank owned property with new carpet and paint. It's my fault this has happened to them. But part of the problem, as somebody earlier mentioned, is that we sell ourselves short. So many agents who have never worked through a market like this and don't put a value on their time or effort. How do they expect a client to put a value on it if they don't? And it just makes it tough on all of us.

Martha- Good rules to work by! However, with quite a few out of town buyers in my area, often I am contacted prior to arrival. For me it seems to be the rudeness factor, I would not treat anyone with that amount of disdain.

Danny- thanks! Absolutely! I am well worth  the money I am paid!

Gene- I agree and thank you for reiterating that point. I think it is worth saying again;

We must believe in our value and put that forth! Not allowing anyone to subjugate us or what we offer.

We do spend a lot of time running around and showing property and then selling nothing.  BUT, on the other hand, when we do get paid, sometimes it is a very large amount of money.  We have to take the bad with the good, unfortunately. 

Vanessa - Very well said.  Unfortunatley I consider this a "Me Society" in which most are more concerend with thier own personal gain rather than what is good for everyone involved.  This is very sad but true. Great post and I wish you well.

Your post is correct and right on -- so many of the public seem to think we are all wealthy, have little respect for our time, and think nothing of calling one realtor and then turning around and calling another without any loyalty at all to anyone. More and more seems this way.

I just wrote a blog referencing this very same thing last night.  I removed it because there seems to be a conflict with a page from Wikipedia reviewing Maslow's hierarchy of needs.  We are the only profession that has to hold our breath and hope that we'll get paid. 

Vanessa, you are singing to the choir here! I can't understand how people can be so insensitive at times. Cop an attitude darling! It works. And, it's free. It often times works for me! Later in the rain~Deb

It may be the Realtors who need to reframe things.  We make a very good living and if it were easy, then everyone would do it and it wouldn't pay well.

What I hate is when they call you for a "listing appointmen" and it turns into a "Pick your brains interview" Then a week later I see the FSBO sign.  I'm now trying to work WITH the FSBO issue rather than against it. But I won't take an over priced listing. 

We give away alot for free to the public. We work hard before we ever get a dime. If clients had to pay us upfront, like any other profession, we would get more respect.

Sometimes people just are so afraid that we won't leave them alone that they don't know how to tell us things. People just don't like any type of confrontation and well lots of people weren't raised right and are just plain rude and selfish!

Hi, Vanessa.  Great post.  In general, the public doesn't understand what we do and how we get paid.  We are underappreciated and not very well respected as a profession.  Folks have no problems asking for tons of advice for free, having us play taxi driver and tour guide, asking us to do hours of research and then walking away without even a thank you.  I have come up with a new rule as a result.  I take them out once to see how we mesh.  After that I put a Buyer's Rep Agreement on the table.  I used to lay it out with the offer package when we got to that point but I want them to understand how we get paid very early in the game.  If they won't sign, I wish them well.  I explain that I have loyalty to my clients and I need that same loyalty in return.  I have found that they get that.  Again, great post and congrats on the feature.

Real Estate can be a frustrating career at times.  People don't follow through, don't tell the truth, and generaly disappoint others.  But, the career has the upside of unlimited income.  Guaranteed income comes with restrictions and making others rich.  I guess you have to pick your poison.

Ah, the life of a real estate agent in a "normal" market!  Time to pull that armour out of the closet and start wearing it again...

The Daniel Hayes Team says it like it is!! Yes The general public makes assumptions! Great posting!
Tom Davis Delaware Realtor who is not overpaid!!

Vanessa, I agree with you, people should respect each other, period.  I am not just talking about the way that the public treats Realtors, but to everyone.  I really think that this is a huge black hole in our society, it amazes how many people that demand respect, give so little.  Great post! 

everything you said is true, and short of an attitude adjustment, just remember thick skin

To me its just common curtesey.... a lot of people don't practice it and I just don't get  it.....  drives me CRAZY!  Just pick up the phone.....Good for you, for firing him...its not worth it!

Vanessa - Excellent job with this post and I am very glad it became a feature ! You gracefully said what many of us are probably already thinking !

Qualify - qualify-qualify...this will solve the problem.  Create a one page document stated "This is how I work".  give it to your customer...if they don't like it...NEXT.

It is part of the business no different than many contractors that do free estimates and never get called back

I say don't take the listing unless it's at your price.  It's all about QUALITY, not QUANTITY.  If you're in a declining market as most of us are, you need to price below market value in order to get it sold.

Why take an overpriced listing?  Is it to reward yourself that you did a good job?

Your disappointment comes only from unrealiztic expectation.  Just don't expect courtesy from the public and you won't be disappointed. 

I understand perfectly well why the public doesn't contact us to break off a relationship.  They dread the debate about why they are doing what they are doing.  If they call to break an appointment, they'll be hit with "Would you like to reschedule?" rather than "Contact me if you need my help".

So much training that agents get is sales training, "overcoming objections", etc. 

One of the problems is that there is so much peer competition.  Out of about 300,000,000 citizens, 100,000,000 employed, about 2,000,000 licensed real estate practitioners, that makes one out of every 50 employed persons a real estate agent.  The real estate consumer is going to run into a real estate licensee around every corner. 

I believe that one of the problems begins with the title on the licenses.  In MD it says "salesperson".  If it said "brokerage agent" or something similar, perhaps the moniker "real estate sales" wouldn't be in the public eye.  Fact is, they expect to be "sold" with any contact. 

That's why they don't call. 

That and the constant drumbeat in the media that they are emplowered.  The public are drunk with power. 

Vanessa - Great post!  While I agree with everything you have said and how you feel, I also changed the way I was doing business.  I will still take potential clients out on the "get to know the area" tour but at that point they either sign an agreement with or they don't.  If they don't - NEXT!

I have had the same problem recently.  I think with the internet and all the info available to them, they feel they can do it themselves or just Realtor shop.  I am kind of good with figuring out those that are Realtor shopping.  One guy who refused to sign the buyer broker agreement called my broker to tell on me two weeks ago, that I wouldn't work with him.  When I explained the situation my broker sided with me 100%.

We can't work for free!

Vanessa, lately I have been feeling the same way.  I have had several buyers decide that they can't find what they want, so they'll wait, or just disappear.  It's frustrating, not to mention discouraging, and I feel like sending them a bill for my gas money!  I have been called this week by two new buyer possibilities, and I am almost not looking forward to even meeting with them.

Vanessa, the only thing wrong with this post, is it should have  been made public so they could find it. This advice is good for everyone but it is really for the public to understand how we feel.

Vanessa, because so many Realtors voluntarily perform the types of services you describe, customers definitely take advantage of the situation. We need to start standing our ground and refusing to do that which is not necessary.

I totally know where you are coming from.  I am a mortgage broker and we see this all the time.  For example I drove 110 miles one way to take an application.  Spent a couple hours in consultation with them once I got there and gave them a good faith estimate before I left.  I had priced it to where I would make less than 1% on the deal.  It was an investment property purchase for 100K.  I knew that no one would be able to under cut my rate without charging the buyer extra money to get a lower rate.  The Rate was 6.75% which is excellent for an investment property.  Well 2 days later my borrower told me that their realtor referred them to their favorite mortgage broker and he quoted them over the phone a rate of 6%.  Well that immediately made my offer look fishy.  They called me back and told me what the other broker said and I told them that would be impossible to do unless they were going to pay about 3% in discount points to get that rate.  I asked them if that is what they wanted to do and they said oh no, this broker has agreed to cut his fee to 200 dollars which was 50 dollars less than my fee.  I proceeded to tell them that there was no way that they were going to get that rate because it was an investment property.  They told me that they would check into it.  Well I didn't here from them for 2 weeks and I called them back.  I asked them about the deal and they said that they were going to close in few days and that they would send me a copy of the HUD and the Note to prove me wrong and that this broker was going to honor what he said.  Well I called them back on closing day evening and ask them to send me their HUD and Note, they told me that they had to reschedule the closing for 2 days later because when they got to the table the interest rate was 7%.  So they protested and threatened to walk away but the broker came back and absorbed the cost and gave them my original rate of 6.75%.  The customers didn't come back to me once they found out the rate was different and it turned out like I told them it would.  So I know exactly what you are talking about.

good luck in the future with bone headed customers. :-)

If we had fewer "pop tart" Realtors (those ready to jump into their cars and rush out to show anyone anything without learning anything about them, their wants, needs, and what they can qualify for) and more that treated real estate as the business it is, it would become better for us all.

Customers and clients expect what you teach them to expect.

This will always happen.  I think the best thing we can do is present ouselves in such a way that people arent threatened to tell us exactly what they're thinking.  But it will still always happen.  I always try to engage them in enough conversation early on to "prequalify" them before I drive them around.

Jim:

You are right on target. Homes don't need to be seen by unqualified buyers or lookers and this would  most definitely show our time is valuable. Thanks!

Someone above wrote: I think one thing that Realtors need to do is let the Customer know exactly how they get paid, what are the true costs to do business. They should  also explain to them that since we don't sell a house to every Buyer who comes into the office nor does every Listing we get sell; we have to make up for "lost business" by charging the fees we do to the Buyers/Sellers we end up getting under contract and to closing.

I have to say that if a sales person told me that they get paid what they do because some many "clients" or "customers" dont actually buy anything, I would think they were barking up the wrong tree...

First: YOU get paid what you do because you are worth it... not because you waste a lot of time... I dont see myself paying you more because some other idiot used up your time and you did not get paid for it... that is a really bad selling pitch...

Rather, explain what you get, how much work goes into it, and why you are worth it. Dont tell me that you lost money on Peter, so you have to charge more to Paul... that is a dumb idea, and a bad rationale for charging a fee.... More about this on my blog  but suffice it to say here, that salesmanship starts with valuing, yourself, what it is that you do. And a value is not assigned by ANYONE to work you did for another unrelated client. 

There are many not-quite-professional agents out there, and we each need to both aspire to more professionalism, and to value what we do properly... with that, we will not have so many issues, with the public, or with other agents...

Just my two cents... 

Vanessa, I can relate exactly to what you are saying.  I just had a customer the other day tell me that when she bought a house in TN, that her Realtor just took her around and never asked her any questions and did not require her to get qualified first.  Now that was a "pop tart" agent if you ask me.  The general public only knows what the majority of realtor's teach them.  We really need to educate them and teach them about the whole process. Yes, some of it is common courtesy, which I wonder if there is such a thing anymore.

We just went public on this blog. Anyone who would like to modify their comments is welcome to do so.

I will be back later to answer you each one, got to run now though! Thank you for all the feedback, some great advice and opinions here! thank you for sharing them with me!

Vanessa - Hi!  Glad to see your post - I did sell that Antioch listing (yay!) for $86K. Anyway, I really do think that we teach people how to treat us.  I will go out of my way to give the best service to those that would like my service.  But to those who can't even make that commitment, I just let them know (politely and firmly) that they may be happier with someone else.  I have even heard of Realtors who go out with their Clients only 5 times and if they don't find the house that they want, they will tell them to call them back when they are ready!  I don't think I could ever be THAT firm, but it really would cut down on the wasted time!

 BTW, I had an agent on a contract I am working on right now say that something should not be on HUD-1.  I thought about you and said "no way, everything will be disclosed on HUD-1 or we won't have a deal".  That shut him up! 

We get what we deserve, really.  The truth is there are a lot of people in this business with little sales experience, a big head, and an eye on the commission instead of the customer.  It hurts us all.  I really can't blame the general public.

i hope you feel better...i know alot of REALTORS feel the same way you do! good for getting it out in the open.

I love your post! That is a frustrating experience.  You are worth more than that.   I love your post! You have encountered a frustration.  That is perfect!  That is the raw material to making your life better.  I like to compare it to an alarm clock.  Some people wake up in the morning with no alarm...some people keep pushing snooze.  And sometimes someone comes over and shakes you and says wake up!  :)   I try to be the type of person that wakes up as soon as my alarm goes off.

What do I mean?  You have an alarm going off...something that frustrates you.  So the next step is to write down what you intend to create.  (what you want to happen.)  You are now going to create the reality of the opposite of what is frustrating you!

 Id love to see what you write Vanessa!  Thats the next step to changing what is happening. You can change it.....it will be exactly as you want it to be...or as you create it to be.

So Vanessa, what is it that you expect to happen....write it down.

Vanessa:  It's sad but we live in a society that is totally wrapped up in themselves, what they want and when they want it delivered.  Service is demanded and expected but rarely appreciated.   Unfortunately some Realtors have given all Realtors a bad name so all must suffer the consequences.  I am a Certified Mortgage Specialist and have to deal with people who try to do their loan on the Internet.  Sometimes we just have to walk away from those who believe our services are not worth the price and believe we are "on call".   Have a great day Vanessa.  Patti - California

I empathize...however, I think we can only educate people one at a time. If you have a good buyers pack, and meet at the office and have them sign an agreement BEFORE ever showing homes, you set your own boundarys. I will no longer show houses with out a buyer interview and a signed agreement. They respect this for the most part, and if they don't...I suggest letting them go.

As far as sellers go...having a pre-listing package, and being armed with fatcs may help, but ultimatley it takes a commitment on both sides, and we can't force them. I think spending more time before taking on clients to ask the right questions and have a better sense of what we are getting into is wise.

Best wishes...

it's important that your attitude reflects your image. If you come across as rich or snobby it doesn't matter what information you give them to prove how poor you are. People suck when it comes to compensating service.        

I find the last comment IRONIC.   "Its important that your attitude reflects your image."     Than he said PEOPLE SUCK.   His attitude of people suck...now reflects his image.  That is unfortunate.   Vanessa,  People are awesome and so are you.  They will treat you awesomely if you reflect this attitude of people are awesome. I promise you that.

I'm "The Public" - and agree!  However,what I've found since entering the market is real estate agents that expect my business, without putting in any effort (not asking me what I am looking for, sending me garbage, interrupting me and ignoring my questions).  Personally, I have no problem sending the "thanks but, no thanks" email.

The public does this to everyone, I had a lady try to negotiate my fees down recently.  I figured up what all goes into staging a vacant property, it was 25 hours total from start to finish.  People have not idea, how much behind the scenes goes in to a job when your self-employed.

 Wanted  Real Estate Agent "Salary $0 Work for FREE"

Drive to the office Daily,Answer  phone calls from a cell phone you pay for. Take buyers and sellers out in your vechile using your own gas and insurance . Print flyers and marketing material using your own money, Dress well each day in professional work attire at your own expense!

What would it cost a buyer to hire a tour guide, or a Taxi, or a professional advisor?Great Blog!How much is our time worth an hour?Gas is very expensive! Mileage/Maintence on our cars!        

Hi!  Here's my two cents.  I now qualify, qualify, and then qualify again!   It's a tough business and if I lose a buyer that goes to another agent, that's the way it goes.  I would rather not take the chance of putting in the time and money.  I am a listing agent first and foremost!  I do get buyer referrals and I'm obligated to take them and some times i even get a deal, but I don't look for buyers except for my own listings.  I once had a buyer referral and put in several weeks of preparation and researching properties and helping them choose the ones that matched their ciriteria. After 3 days of showing 3-4 properties a day (my max in any day with one client), I finally said "if you are just looking, that's fine, but you'll have to find another agent.  I am in this business to make money and explained the process in a very professional way."  By the way I took them out to dinner 2X and lunch 2X.  The very next day they bought a house, cash deal and closed in two weeks. And now they want to sell the house and buy a waterfront condo. It never hurts to tell a client the truth........this is your livelihood!  I agree with Michael, you must be professional at all times.

I loved the way you put your article together.  I have been wanting to write something about this but I just couldn't nail it without coming across as angry.  It is frustrating.

I have learned that if I don't require a signed buyer/broker agreement then I'm setting myself up to waste my time.  Often I feel as though the buyer/sellers don't want to be proactive in finding a house or selling their property. 

I don't know of a single professional service that would give away so much for free.  Yes, we are sales people, but we are educated, skilled, experienced professionals in our trade.  Many escrows would not get to the closing table if the buyer and seller did not have agents and loan officers helping them get there. 

 We bend over backwards.  Might as well have a bulls eye posted on our backside.  <I'm being sarcastic.>  <g> 

One of the things I love about the AR network is that we have a place to voice our concerns and to come together collectively to make the changes in "how" we work our businesses so that our clients understand us better and appreciate the work that we do for them. 

Great articles well worth the read, and great responses too! 

I feel your pain. I really can't add any comments but trust me i do understand. They sometimes think i do this for a hobby.

Vanessa, I know what you are saying.  Unfortunately in our market we see more tire kickers than actual buyers so we get used to the come and go types.  I actually had a fellow call me a week ago to pull comps for him so his mother could refinance her house.  I suggested he hire an appraiser!  That is their job, not mine.  I was very polite but it sure irritated me.  Had another one call me last week to see if I could give him comps so he could sell his house himself.  I suggested he check the County Records.  Again, politely but still another time waster.  So, you are not alone.  We all feel your pain.  

Thus is the life of a real estate agent. I hate when it happens to. It's like they fall off the face of the earth. I had one guy that I spent months with. We looked at several homes and looked at comparables for price. He found one he liked and then nothing. About a month later I got an email from him saying he bought a home and thanks for the help! Ummm.....ok. 

Amen Vanessa. I thought it was just me that felt this way. I feel so much better now. People don't care what we do. If they did,they will have the courtesy to pick up the telephone,e-mail or do something and let me know if they do not want to work with me anymore. Some people suck. Great post.