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Do you believe Buyers and Sellers are created equal?

By Barry Owen

Real Estate Broker/Owner with Pareto Realty TN #251071

June 18, 2008 09:48 AM

I was in a coaching appointment a few days ago, and we were working on ways to increase business. I encountered a mindset that I think might be more prevalent than I had imagined . . . In many agent's minds, Buyers and Sellers are NOT created EQUAL.

We are in a market that has a scarcity of Buyers (which makes them "Golden") and an abundance of Listings (Sellers) . . . yet the conventional wisdom is still along the lines that "If you don't list, you won't last in this business" . . . so there is emphasis on securing listings in the hope that they will attract more of the ever-elusive BUYERS who are so cleverly swimming around out there without representation.

This agent told me: "I don't REALLY want to work with Buyers, but they call off my signs and so I show them properties (my own listings) just hoping to sell SOMETHING and also to prove to my Sellers that I am working to sell their houses."

We continued to "Peel the Onion"

Coach: "So why don't you like working with Buyers?"

Agent: "Because they are not loyal . . . pause . . . face turns red with anger . . . I have shown SO many houses recently, and the Buyers have just gone off and bought from another agent without representation."

Coach: "When you were with these Buyers, did you feel like you connected with them?"

Agent: "YES! THAT's what's so FRUSTRATING!

Coach: "Did you begin your relationship with these Buyers by doing a "Listening Presentation? Did you sit with them and learn their wants and Needs and explain the process of Buying a house and let them know the BENEFITS of working with you as their EXCLUSIVE BUYER Representative?????"

Agent: (Sinks in the chair and utters) "no"

Coach: "Why not? Haven't we spent the past 4 months (in 443 and 36:12:3) talking about the importance of CONNECTING effectively with our prospects to secure them as LOYAL CLIENTS? Why are you not doing it with you Buyer prospects?

Agent: "I don't know . . . I guess I just didn't think it was that important for Buyers."

Coach: "Do you do Listing Presentations for ALL of your Sellers? Or do you just run over and plant a sign in their yard?

Agent: "I do presentations"

Coach: "What's the difference? Why are Buyers less important to you than Sellers? Don't they deserve the same level of treatment from you that you give your Sellers? . . . ESPECIALLY in a market with a shortage of Buyers?"

Agent: (literally melting in the chair) "yes"

Coach: "Get it out of your head NOW that there is ANY difference in Buyers and Sellers. See them ALL as CLIENTS. They are EQUAL. Do NOT discriminate by offering differing levels of service. Each client represents a transaction for you whether they are a Buyer or a Seller . . . and each clients hold a LOT of cards in the form of future referrals for you if you WOW them."

This market is one that DEMANDS deeper relationships. Superficial. lackadaisical approaches will create frustration for you. NOW is the time to take the time to build solid relationships with ALL of your clients and create referral streams that will carry through whatever barriers, twists and turns the market environment will put in front of you in the coming years.

Kinda puts a new slant on "Equal Housing" doesn't it?

Best,

Barry Owen

Principal Broker & 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!

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Veronica DeCarolis

Weidel Realtors - Flemington, NJ

Excellent advise. Buyers can run you ragged but it's worthwhile when they buy the right property. Plus if you keep in touch, they can become sellers! Thanks, Veronica

Jun 18, 2008 10:00 AM

Carey Pott

January Financial - Foothill Ranch, CA

It's definitely worthwhile to build that relationship from the get-go. That way it's not so nerve-wracking to ask a buyer for the exclusive relationship. Chances are, they've learned to know and trust you enough through the relationship building process that they don't want to entrust anyone else with their home-buying needs.

Great post, thanks!

Jun 18, 2008 10:07 AM

Alicia Mayoral Mercado

Tarbell Realtors - Alta Loma, CA

I can definately agree with your frustation with todays buyer. Seems like the market has given buyers the ok to have as many realesate agents running around for them as they want. Then they go ahead and write up the offer with what ever agent is there as if just by luck. I do agree with your coach this can be prevented by us. Setting up a strong and educational presentation will make the diffrence. Buyers must trust in your advice and the best way is to educate them on how you run your business.I myself try to do a buyers presentation with all of my buyers but yes it does get overlooked. I also think if all of the agents would make this a standard part of working with buyers it would make it easier for all of us. The buyers would feel a commitment with the realestate agent they chose and wouldnt have everyone else running around. Building a solid relationship with your buyer will definately help your transaction run smoother and with less worry for both you and your client.

Jun 18, 2008 10:14 AM

Frank Schulte-Ladbeck

Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX

Sound advice Barry. I ran into a Realtor the other day who made a similar comment to the agent of your story. I mentioned to him that I did not think that he was very buyer friendly. He asked me how did I come to that conclusion. I told him that I was one of those buyers, and I was so put off by his phone presentation, that I never considered using him. He was shocked, but I thought he should learn from the past.

Jun 18, 2008 10:23 AM

Bo Hussung

Bell Title /Triserv LLC - Nashvle, TN

Great post and as a salesperson, a good a consistently needed nudge. It is realationship building 101....ask the right questions to understand their needs /desires, etc. and very carefully show them solutions....make the process tranparent and "natural, so that they feel like they made the right decision.....it really simple, it is not really easy..... the needs of our clients always come ahead of ours.

Jun 18, 2008 10:31 AM

Larry Brewer - Benchmark Realty llc

Benchmark Realty LLc - Nashville, TN

I know that buyers are frustrating for some, but they think they have contol right now, and we feed them that garbage. I had a broker tell me one time that we needed to concentrate on listings and not to worry about buyers. I didn't like her opinion, and eventually decided to leave her company. I have always thought that customers all needed to know what we are doing for them, and what we expect from them. If they are not following the guidelines that we present to them, then let them go.

Sellers are the same. Treat them with respeect, but some need to be fired.

Jun 18, 2008 11:20 AM

Jeannette Kohlhaas

Keller Williams Jacksonville Realty - Jacksonville, FL

www.MoveFREEwithMe.com

Great Post Barry.

That initial buyer consultation is soooo important, so the buyers FEEL like they've hired you, instead of just using you. I'm amazed at the agents that don't use the buyer brokerage agreement, (the loyalty agreement) with their buyers. I have used it for many years, but recently have bonded with buyers so much that I've let it slip thru the cracks.

Then, I recently sold a clients listing (that was on the market for 6 months) with a 60 day closing . We had been looking at homes for a month or two before it sold, and when we got a contract, we quickly rushed to find that perfect home for them. They got nervous as we got closer, and they hadn't found one. THEN one magical day, they went thru a neighborhood (without me) we'd been through before, and found a FSBO, and bought it. I was SO hurt, I mentioned to them I didn't get any sleep the night they told me, wondering why they didn't ask me to help them, after all we'd been through!? and I think they were so embarrassed to have done it, since they KNOW the time I spent with them. I still kept them up to date with their closing, and kept asking if there was anything I could do to help them with their new home, however, felt a coldness. At the closing table, they didn't even talk to me, and did close on their new home a couple hours later without me.

So, even when you "feel" that bond, you should formally "List" your buyers!! But, I'm amazed I lost a client's friendship....because of that. I got over the fact that they bought it by themselves. I'm really glad they found the home they fell in love with, because the ones we had seen together, just weren't the right ones. BUt I guess I have to just say NEXT!....which is hard for me, since relationships mean alot to me!!

Jun 22, 2008 01:19 AM

Carol Zingone

Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL

Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Great post - there are many agents working through a paradigm shift right now, myself included. I'm not sure I believe everything that worked in th past is the silver bullet for today's market. I do agree, though, that we need to be as responsible with our buyer opportunities as our seller opportunities.

Jun 22, 2008 01:25 AM