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Client Representation, Firing YOURSELF!

By Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

May 09, 2009 06:15 PM

Have you ever fired yourself?

I fired myself twice this week.

I usually don't fire myself, but I did, twice this past week. I had come to the spot in the representation process where I could no longer help the clients. The first I never started the second was lack of cooperation by the seller. They were not helping themselves and making it impossible for me to market Need to sell your home? www.flexitrealty.com their properties.

Here is something to keep in mind in the selling process. The original purchase price of a property does not mean then when you take out a second mortgage the property is worth more.

The property is worth the same the difference is you have less equity in the property. I had a client tell me that I took out a second mortgage so now I have to raise the price to cover the second mortgage.

OK...I am good with that unless your price is above market and your want me to spend money on advertising, hold open houses and try to sell your home for more than it is worth, according to market conditions. I may be good but I don't think I can sell anything for more than the competitive price within the market place right now.

If the price was close not a problem. I can justify home values and the features and benefits of specific homes.

Now when you price your home $10,000.00 over comparable homes we have to have some identifiable differences. It has to be more than you took out a second mortgage and you have to sell for this much to pay off both mortgages.

Can I share, if someone asked you to pay more for a home because they owed more than it was worth would you do it? NO? Why do you think someone else is going to do it for your home? Why do you think a Realtor that sees hundreds of homes is going to not know the difference? You pay a Realtor for selling your home.

You pay a Realtor for knowing the market values of homes.
You pay a Realtor for their market knowledge.
You pay a Realtor telling you the truth about the market.
You pay a Realtor to provide statistical price comparisons to help you price your home.

If you are thinking someone will pay more for your home than it is worth because you owe more than it is worth, maybe you should take time and look at the foreclosure market. Many of these people, now foreclosed, also tried to sell their homes for more than the home was worth before it was foreclosed.

The fact is, because you take a second mortgage or home equity loan on your home and do not invest any of the money into your home it will not increase it's value because you owe more.

I fired myself this week when one of my clients felt the home was worth more than the market by thousands of dollars after taking out a second mortgage. My data could not support their sell price. The lender told them to just price their home a little higher when they listed the home for sale to cover the second mortgage cost.

Hope that works. I found the home to be over priced and will actually help sell some of the lower priced homes in the neighborhood. Not good if it is your marketing dollars promoting the property.

Unfortunately the lender offered some bad advice.

The second client just kept making it impossible to show the home. Why have a listing like that? I have some great clients and work hard for them. When clients make it difficult to show homes and have all kinds of excuses....I can not continue to represent them. I share the business aspect and always ask for 24 hour notice before a showing. We have to keep it reasonable.

So have your fired yourself lately?

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Shelby Kyle

Texas Country Properties - Fulshear, TX

Some may say I have "cahoonas" bigger than a bull, but I actually fired myself on my very first listing!! I never listed the property. I interviewed the clients, and decided this one wasn't for me. They would not clean up, they didn't want to do anything, but they wanted $200K more than it was worth. I told them the only way I would be able to list this property was if they paid for all the marketing. Their mouth dropped open. I politely said... I am not the realtor for you. Have a nice day. My broker actually patted me on the back when I got back to the office and told him what I had done. My reputation is very important and I was not willing to put my name on a WAY over priced dump. When you have bad feelings about something.... walk away. It is not worth it.

May 11, 2009 03:28 AM

Carolyn Heilman

Century 21 Premier Realty - New Franklin, MO

GRI, SRS

Hasn't been too long ago that I did actually fire myself and it felt so good!!! My client inherited, at the death of his mother, a beautiful condo on a cul-de-sac with six other identical units. Two on the street were already for sale and he insisted we price his in the middle of the other two. This was a high maintenance clients. Constant calls and open houses. We finally got an offer after a year on the market. Although it was $19,000 less than asking it was a reasonable offer for the current market. When I called to tell him about the offer he went totally balistic and spent several minutes yelling at me about the low-ball offer. Calling the buyer names and blaming me for such a low offer. I advised him to counter back which he finally agreed to do but only $2,000 less than his asking and so the deal was done. When the listing expired a couple of weeks later I gladly fired myself and suggested that maybe some other agent might be better able to help him. It is listed with another agent...same price....and still sitting there. Meanwhile, another unit as come up for sale, even lower then the others. These are all identical floor plans, square footage, etc. I think he may be hanging on to this for awhile. What is weird is that he inherited the home free and clear so whatever he gets out of it is his to keep. Meanwhile he is paying utilities, insurance and HOA fees to keep it on the market. Greed is a funny thing!!!

May 11, 2009 03:33 AM

Anonymous

Gloria Todor

Thank you Gary and others for your posts.
My partner and I just had our first listing expire with a seller who after signing a contract would not do anything we suggested to help his property sell. We entered into this situation initially to help this client get out of a bad situation, but we found out that the desire to help someone in need who cannot work with our guidance is too heavy a situation. So the timing of our expiration on our contract was very welcomed on our part. Not quite a firing but a great release. We still wish this person the best.
(written by Gloria)

You can lead a horse to water but you can't make it drink

May 11, 2009 03:34 AM

#102

Steve Facella

ReMax Prestige - Lake Worth, FL

AMEN Brothers and Sisters! I haven't yet fired myself, but I am coming close with one. This seller customer keeps putting up obstacles. He has yet to get me all of the disclosures that I need to make this sale work... Did I mention that this is a short sale to boot? Oh well. My patience is wearing thin...

Steve Facella, 561-635-8393, www.stevefacella.com

May 11, 2009 03:53 AM

"The Lovely Wife" The One And Only TLW.

President-Tutas Towne Realty, Inc. - Kissimmee, FL

Gary...

In all honesty, I prefer to fire them. It's liberating :)

TLW...ROAR!

May 11, 2009 04:28 AM

Anonymous

Karen Fulwider

The sad part of this is that we are taught that we can meet the challenge and that we work for our clients to gain the result we need. Sometimes it's at great expense of time, money, and effectiveness draining emotion. Whether it's the seller who is clinging to listing at an unattainable list price, or the buyer who calls during a Sunday morning blizzard out of the blue wanting to see 6 homes in an hour, there are only so many hours in the day and so many promises one can keep. Neither scenario is worth the emotional drain or even your time away from clients who deserve it.

I have fired myself twice this year and walked away from the emotional mess having learned something. Gary, you are unfortunately right on this one.

May 11, 2009 04:39 AM

#105

Carrie Sampron

Home Smart Realty Group - Highlands Ranch, CO

ABR SFR & Kathy Sampron (303) 931-3629 Highlands R

Gary: I couldn't agree more with your stance in both of these cases. I have been the Realtor on the other side trying to show a property and not being able to get in because the seller isn't cooperating and I always wonder why their Realtor isn't giving them better counsel, or firing them which might teach them the lesson they so desperately need to learn if they have any hope of selling their home.

May 11, 2009 04:58 AM

Tracy Lynn

Milford, CT

After reading this I may have to fire myself. I keep saying I'm going to fire myself so I can get rid of these difficult clients that cannot be helped. I've done everything I can for them. There comes a point where it's time to end it.

May 11, 2009 07:23 AM

Lori Isaacson

Credit Restoration Consultants - Plantation, FL

I think it makes perfect sense to be selective with clients. I have had some clients who I have said no thank you to before even meeting them. A phone call can tell it all at times....

Happy Monday!!

Lori

May 11, 2009 07:52 AM

Anonymous

Sheila Reeves

Gary:

I've had to do that too a couple of times when people either made it impossible to sell their home by lack of cooperation, or it became apparent a buyer had no motivation to buy (2nd offer she opted out of). Sometimes it is just better to move on and work with motivated buyers and sellers.

There are many wonderful people out there to work with, move on and find those.

May 11, 2009 10:17 AM

#109

Gail Robinson

William Raveis Real Estate - Southport, CT

CRS, GRI, e-PRO Fairfield County, CT

Gary - This post certainly deserves a gold star! Excellent advice! It's important to prequalify sellers, buyers, and even referrals. I turned down a referral today because I knew it didn't make sense business-wise. The other agent called me twice to argue with me that I should take the referral. Sorry, but I call the shots in my business. It's what we say no to that determines the profit we make.

May 11, 2009 04:35 PM

Ruthmarie Hicks

Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

I just had a dilly of a buyer on-line.. Not a clue....about prices or what to expect with respect to condition. They wanted a move-in ready older home. She did a "drive by" on the listings and said she didn't like them because they were too small and needed some work. Her price ranges was entry level and she was picking only prime locations. No way was she getting more than what was out there. I could just imagine how she would respond to a typical inspection report - she'd faint dead away and that would be the end of it. I just said that we weren't the right fit for each other. Noooooo thaaaank yooooooouuuuuu.

May 11, 2009 04:40 PM

. .

Adak, AK

With my accounting background I keep close track of expenses. Each listing starts out in the red, and my cost grows with time - and I'm going to promote each listing to the max so an overpriced home in the present market is a costly proposition for me.

The market speaks - sometimes by the silence of no offers and other times by low ball offers - I haven't had to 'fire' myself in a long time - but if its not working it's just good business to cut my losses and move on to the next transaction.

Kent Davis

May 13, 2009 02:51 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Gary - Congratulations on the "feature." I fire myself on a regular basis. I'm usually a good fit for most clients, but if they are unrealistic in what they hope to get from a sale by listing their house, or hope to get an unreasonable steal on a home, I'm probably not their agent.

May 14, 2009 10:59 AM

Marchel Peterson

Results Realty - Spring, TX

Spring TX Real Estate E-Pro

Gary, Congrats on the feature! I have fired my client but I guess another way of looking at it is firing myself. Life is too short to deal with someone who is being totally unrealistic!

May 15, 2009 01:43 PM

Donna Yates

BHGRE - Metro Brokers - Blue Ridge, GA

Blue Ridge Mountains

Gary: I like the way you look at this by firing yourself. I've never thought of it that way. Like Marchel above, I have fired the customer/client though. Like to think of it as firing myself instead. I have been known to say "next" a few times when it comes to difficult or unrealistic customers. Congrats on the feature, well deserved.

May 16, 2009 12:13 AM

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI

Real Estate Services You can Trust!

Hi Guys usually I don't touch such a nerve and get the response of this post and answer everyone that comments individually. The truth, I have been covered up with business....THAT IS A GOOD THING! The down side I appreciate every one's opinion and enjoy the diversity of the comments. To each of you, I read your responses and smile along with everyone else.

Thanks for your input. Sincerely, Gary White.

May 16, 2009 02:44 AM

Broker Patty Da Silva Da Silva

Green Realty Properties® - 954-667-7253 - Cooper City, FL

Top Listing Broker

Firing oneself (or one's customer) can sometimes be best thing for all involved. A unrealisitc and uncooperative seller can drain you out of money and of sanity.

Great post. =)

BROKER Associate REALTOR® & Licensed Mortgage Broker

Visit http://www.pattydasilva.com for SouthEast Florida's best properties.

May 17, 2009 04:31 AM

Treva Fox-Christy

INTEGRITY REAL ESTATE - Farmington, NM

Peace of mind and not dreading every minute you are working on a deal is worth its weight in gold. Good job!!

May 20, 2009 01:31 PM

Sonya Loose

Modern Realty - Beaverton, MI

Helping Buyers & Sellers of Waterfront Property

Yes I fired myself when one of my buying clients turned out to be perpetual lookers...I can't waste my time with them and take time away from my family and other motivated buyers to provide them with home tours! Part of being a good sales person is to know when to let a client go!

May 21, 2009 03:00 AM