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Verbal agreements - Worth the paper they're written on . . .

By
Real Estate Broker/Owner with Pareto Realty TN #251071

Would you like to stand out in the field as one of the great negotiators in your market?

How would it feel to be known amongst the other REALTORS in your market as being the person who  gets fair deals done and QUICKLY?

Do you know where your money comes from?

Now . . .

Don't you get paid on a "contingency fee" basis? If it doesn't get under contract AND close, you don't get paid!

Right?

So . . .

Other than finding the lead and then converting that lead to a loyal client, our "job" boils down to negotiating a viable deal (agreement).

I began selling real estate in 1993. "Back in the day" we wrote offers and met the Listing Agent on their turf (in their office or at their home or in a parking lot somewhere) to "Present" the offer and physically hand off the paperwork and earnest money check. This was a very ceremonious happening. We would then negotiate - each counter would begin with a telephone conversation supported by the faxing (or delivery) of a signed counter offer.

We didn't DO "Verbal Agreements"

We were far less technologically adept than now. We could fax (but not email) and the market was FAR faster than it is today. We actually got to know each other as PEOPLE instead of just as agents. Most of the agents in my market knew where I live and would just drop by to talk about an offer in my front yard.

Nowadays, people feel this urgency to move more quickly - Technology has us all of us hood-winked into thinking that we really are NOT in the relationship building business with other REALTORS. We should be able to cruise along emailing and voice messaging offers and counters offers without any "flesh contact"

I have just had a wonderfully refreshing couple of negotiations. I have been working for a week pulling a deal together - The listing agent and I have a lively discussion humming along and we are exchanging paper with each counter. This is akin to a great dance. We have been dancing for a full week . . . and we have (together) pulled the deal together from FAR apart.I am confident we will find an agreement that BOTH Buyer & Seller will be pleased with.

The other negotiation?

My Listing - an Agent brought an offer to my office and delivered the ORIGINAL with a hand-written check . . . I grabbed the offer and called my seller and met with her to present the  offer - She signed a counter offer form which I then hand-delivered to the Buyer agent's office and called her with the news.

I may be harping on inconsequentlial BS, but the truth is that this "way" is SO much more satisfying for everyone . . . It's more personal and more effective . . .  It's REAL!

The heck with "Verbal" and superficial agreement . . . Let's find some good ole face-to-face - belly-to-belly laughing and sparring negotiating.

It takes a village!

Best,

b

Barry Owen

Principal Broker and Productivity Coach

Keller Williams Realty - Nashville, TN - Green Hills

www.theowengroup.net

www.creatingspaces.blogspot.com

Simply & BOLDLY Living the FourFold Way in Open Space!

 

Posted by

Barry Owen

Founder
Principal Broker
Pareto Realty
Nashville, TN

615.502.2080
www.paretorealty.co  
Call me: 615-568-2123
email me: barryo@comcast.net

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Mott Marvin Kornicki
Waterway Realtors® • Notary Public & Apostille - Sunny Isles, FL
Miami Notary & Apostille 786-229-7999

Things have changed dramatically! I remember when our listings came in a bi-monthly published book and a competing listing service's 5X7, 3-ring bound listing brochures were delivered by mail. There was really now way to know of the status without making a personal phone call. The listings were written by typewriter and the pictures, if any.. were snap-shots.

Technology is transforming everything!

Apr 21, 2008 12:27 PM
lin pileggi
Coldwell Banker - Saint Charles, IL
This is the very thing which surprised me the most when getting back into real estate - the very limited contact between agents.  Technology is wonderful, but we can't forget the personal connections.
Apr 21, 2008 01:35 PM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Barry,  I don't know how many times I have heard that a verbal agreement is a binding contract in Tennessee.  Your title says it all.
Apr 21, 2008 02:46 PM
Frank Schulte-Ladbeck
Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX
I am just curious: do you find that you could make a connection with someone through e-mail exchanges? Now, I am an inspector, and my situation is therefore different, but I have found on a few negotiations that I have been able to create a get to know you atmosphere through the internet. I do admit that eventually this leads to a follow-up in the flesh.
Apr 22, 2008 05:37 AM