You Want To Do What? - The Importance of Listening To And Evaluating Your Client's Plans
by Bob Foust, Fullerton real estate agent
The real estate business truly is amazing. No matter how long you've been involved in it, the same simple truths seem to present themselves year to year, and by default, we are bound to make some of the same old mistakes from time to time. Maybe the most significant of these truths is the importance of qualifying and listening to your clients. Here are a few embarrassingly recent stories about my mistakes in not listening to and evaluating my client's plan. Hopefully they will help to illustrate this lesson and prevent other agents from following suit.
Recently, a personal client called and inquired about the prospect of listing their home for sale. Any real estate agent knows the excitement a call like this can bring, especially when the subject property is of considerable value. Fellow real estate agents also can relate to the excitement-induced mental lapse that can occur from these special events causing ones brain to temporarily disengage from gear. Being that this client would be one of our favorite sell/buy clients (both sell and buy a home with us), the dollar signs were already beginning to permeate the brain before the conversation had really even started. Experience has taught me that this point should be the most critical in sizing up the ability, need, and desire of my prospect and this situation would prove no different.
It turns out that my client had a fantastic, albeit unrealistic, plan to sell his home at top of the market pricing, buy a home of almost similar specifications at today's discount prices, and use the difference to fund his retirement! I knew from the beginning that it just isn't realistic to conduct such a win-win-win orchestration but was too excited, and maybe a little too scared, to confront him. We all know how this turns out so there really is no point in rehashing the details.
The point is that had I listened better and had the confidence to point out the faulty plan without insulting its creator, I would have saved lots of time, money, energy, and spirit. As it is now, all we have to show for our efforts is an uncomfortable relationship in need of some mending.
Very shortly thereafter, a new client phoned about the prospect of buying one of my listings after I listed and sold her house. Great! Another sell/buy client and a chance to sell this "well seasoned" listing! In my excitement, I prepared all the listing paperwork, the purchase agreement, and spent considerable time agonizing over a comprehensive market analysis. Only then did I really sit down with the prospect and go over their plan of action. When all the smoke had cleared, another overly ambitious plan was all that remained and the details revealed that this person wanted to trade up houses without putting down any cash, increasing their monthly payment, or sacrificing any amenities. I'm still working on how to have my cake and eat it too so this clients dilemma will have to take second priority.
Needless to say, as real estate agents, our role is incredibly complex as it relates to the skills, experience, and knowledge that it takes to be successful. Possibly the most important role we can play is that of coach. We should listen, not pretend to listen or fake interest, but really listen to our clients and their ideas. We guide our clients, not sugar coat and posture up a poorly developed plan destined to fail, but compassionately hit them right between the eyes (figuratively of course) when their plans are doomed for failure. Take some time right up front to go over your clients plan with a degree of skepticism before even setting up a home search or preparing that CMA. In the end, the solid buyers and sellers, or rather, buyer and sellers with solid plans, will reveal themselves and the rest will at least leave with an understanding of your professionalism and respect for their time. Of course, many will leave you and go elsewhere to find somebody saying what they want to hear, but this is ok, let your fiercest competitor try to work the plan of these clients and you just concentrate on working yours!
About the Author: Bob Foust is the chief executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area's most informative real estate websites. To contact him or learn more about real estate in Orange County, please visit www.FOUSTonline.com. Current, relevant, and professional real estate content at www.foustonline.blogspot.com
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