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He Swings...He Misses! Another sale just slipped by!

By Kent Anderson

Real Estate Agent with Coldwell Banker Resort Realty, Sandpoint, Idaho SP37235

July 09, 2009 11:48 PM

This is like FIGHT CLUB. I NEED to let go!

I just got done showing a property that happens to be situated next door to another great Lake Pend Oreile waterfront property that I was actually very knowledgable about. LAKE PEND OREILLE When I was done with my customer, a new potential buyer drove up and started asking me questions about that adjacent waterfront. A gift from God perhaps?

We are not setting real estate sales records here in SANDPOINT, IDAHO and suddenly I've got customers flagging me down.

I answered all of his questions and was pretty proud of my ability to really speak with authority. There are some engineering issues with the property that need to be addressed to complete a successful build and I even knew the engineers the potential client should contact. We spoke for a half hour, I met his little kid and was even able to get the little guy to stop crying. There was a definite positive energy happening.

It eventually got to the point where I suggested we write an offer and see if we could make a DEAL on the lot. $700,000 is nothing to sneeze at and, in this market, we could probably make something work. The customer was pretty savvy and said he would enjoy working with me but, in this case, he felt he should go directly to the listing agent in the hopes of negotiating the "selling commission" out of the sale price. It could save him as much as $20,000.00.

My first reaction was..."That makes sense...how do I talk him out of that thinking?" I gave him some feeble response like, "Oh, I don't think the broker would accept a 3% total commission when his agency has both sides of the sale". Then I explained that commissions are negotiable and he shouldn't worry about that too much and that he would be in great hands if I were representing him through the sale. Plus, I know the listing agent well and we could make this happen!

He eventually walked away and said he might get back to me. I'm such an IDIOT! What a weak sales pitch.

While I am beating myself up I keep berating myself with, "Don't worry about commisssions Mr. Buyer! We'll just offer a price you can live with and let the agents worry about commissions!!!" LET THE AGENTS NEGOTIATE. I CAN GET YOU THIS PROPERTY!

He could show up again. He has my card. I'm pretty experienced with this stuff, I can't believe I was so far off my mark.

LIFE GOES ON ... MONARCH MOUNTAINS

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Ginger Moore

Wilkinson & Associates Realty - Gastonia, NC

Kent, I think we have all had similar circumstances. I guess the only thing you can say, is that we learn from these experiences,(myself included), and hope we will do better on the next one. Don't beat yourself up. He probably wasn't going to use you anyway. That is the only way I can handle some of these experiences. thanks for sharing!!!

Jul 11, 2009 04:10 AM

Jo-Ann Cervin Serving your Real Estate Needs!

Easy Street Realty - Las Vegas, NV

It's happened to ALL of us!!! As the saying goes...."Buyers are Liars"!

That person was probably not even going to buy anything. I've come across so many people that want to look, say they own this, that and everything else and then when it's time to get down to business they wriggle away with their tails between their legs. Some people just love to hear themselves talk, and why they keep doing this to us a agents I will never know.

If he does end up approaching the listing agent, let him enjoy the dual agency buyer's experience.

Jul 11, 2009 05:46 AM

Ruthmarie Hicks

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

Not much more I can add here. Just the other day a potential "buyer" called me on a listing and requested a showing and named two times. Neither was workable. But I also had a feeling... a feeling that this person was already working with someone. I don't know why, but it just felt wrong. Sure enough. When I said again that I couldn't come out at the times he requested, he mentioned he "knew" an agent in my office. I talked to said agent - and not only did he "know her" but they had been working together for months. ALWAYS get the EBA!!! Also, I really don't like to waste my time showing a listing if the buyer is working with someone else. I don't like dual agency even if I do double-end in any case.

Jul 11, 2009 06:48 AM

Kathy Opatka

RE/MAX CROSSROADS - Ocean City, MD

Serving Ocean City, MD, & The Delaware Beaches

Kent,

You did the NORMAL Real Estate Agent thing that we all do...... HELP the Buyer and HOPE for a deal!

Don't beat yourself. Just say "Next!"

Kathy Opatka

Jul 11, 2009 07:32 AM

Monica Bourgeau

Portland, OR

Business Coaching

It may still workout, if it's meant to be, it will. If not, maybe something better is on its way.

Jul 11, 2009 07:47 AM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

I can't possibly kick you any more than you're already kicking yourself. No talk of dual agency? Did you forget that one? As Lenn said, where's the buyers advocate on that scenario?

Jul 11, 2009 08:13 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

This guy is a Jack Ass. Call the Listing agent and tell him you are the procuring cause. In California you might have enough going to get you the fee if the Listing agent, or any other agent closes with this guy without you on the other end. You are the agent that provided him with the information that made him want to buy. If nothing else it will give the listing agent a pause to think.

Jul 11, 2009 12:06 PM

Linda Jandura

Raleigh Cary Realty - Apex, NC

Realtor, North Carolina Buyer & Seller Specialist

So sorry this happened to you, but it's good to see that others are dealing with this same situation. I've been very careful lately not to give out pricing information, staging info, etc without some kind of committment to list with me. From reading all these comments, I've learned not to give out the information to buyers either.

Jul 12, 2009 12:28 AM

Mary Kent

Five Star Real Estate - Grand Rapids, MI

Grand Rapids to the Lake Shore

Great post. It's happened to all of us one time or another. Just pick up and move along to bigger and brighter things! Best to you~

Jul 12, 2009 01:39 AM

Anonymous

Jerry Gray

Hi Kent,

When a buyer goes after your commission, they are not someone you want to work with. They will keep going after yor money. They picked your brains and used you. There is value in your knowledge and what you do.

Jerry Gray CRB,CRS,GRI / Prudential Carolinas Realty / Winston Salem, NC

Jul 12, 2009 08:05 AM

#58

Anonymous

Cyndi

BT-DT - I've done the same thing, even taken the buyer back 3 times to the home, answered multiple phone calls only to be asked later if I was the listing agent since he had been told only to work with the listing agent - since "the listing agents will give back half of their commission" - LOL - learned right away what to watch and listen for and not to fall for it again.

I was out showing a beautiful waterfront property yesterday to a "prospective client" - and I say prospective only because he let slip a few things before that made me be wise to this one. I wanted to line up other properties to show him when he slipped and said he had seen all the others from other agents - I knew now what was coming. I showed it to him anyway since I was already there and just waited for the words to come - and they did. He asked me if I was the listing agent, I said No and then (probably wasn't in the right mood for this one) told him that the property was bank owned, if the listing agent sells the home himself, his full commission will be cut, and then did he think the agent was going to split what was left with him? No, sorry, won't work. and then waited. He continued looking, asked for my card, said he would be calling (uh-huh, sure). He may or may not call me, but I'm not holding my breath and based on what I learned about him, I halfway hope he doesn't call back.

I want to work for clients that want to work with me, and a Buyer Broker Agreement will solve that situation. Works everytime now.

Jul 12, 2009 11:17 AM

#59

Anonymous

Familar Strory - I've have had Buyers Agency Agreements that haven't been worth the paper to write them on. Other agents have found loop holes or "talked" the client to cancelling the contract. I am learning the hard way to make sure my BA contract is completely filled out - no blanks - other agents are less tethical and respectful - very doggy dog.

It really does sound like you dodged a bullet. He may have done you a favor after all, sounds like a headache to me. I can sometimes educate an ignorant buyer and other times - guys like your guy - it's not worth the effort.

Jul 12, 2009 04:10 PM

#60

Anonymous

Jo Baldridge

Sorry forgot my name -

Jul 12, 2009 04:10 PM

#61

John Juarez

The Medford Real Estate Team - Fremont, CA

ePRO, SRES, GRI, PMN

My most recent similar experience was with a couple who felt that I should share my commission with them. After all, several of their friends had recently purchased real estate and received 1% or more back from their agents. Funny thing - none of those buyers were willing to recommend their agent to my clients. Those folks could only complain about the lack of service from these demanding agents who seemed more focused on their own commission than serving a client's needs. In spite of that admission, my clients insisted that I should rebate part of my commission to them. I guess I am fortunate that, since I continued to refuse, they moved on. I don't really want to deal with people who are that obtuse, anyway.

Jul 12, 2009 04:57 PM

Kent Anderson

Coldwell Banker Resort Realty, Sandpoint, Idaho - Sandpoint, ID

from Schweitzer to the Lake

Kevin & Monica - Finally...Missoula Realtors chime in. Stay in touch! I love Missoula! (That's where I met my wife, bought my first home, had my first child, started my first business, etc, etc)

Jul 12, 2009 06:10 PM

Stuart Dobson

eLoanRates.org - Thornton, CO

Hi Kent,

I face this scenario with Commercial real estate transactions all the time. Most if not all commercial buyers are pretty aware that commissions become just another 'net cost' to the transaction and try to negotiate directly. And many of them try to get as much info, tips, and things to look out for from buy side brokers as they can for free, oftertimes contacting multiple brokers, then going directly to the listing broker.

Jul 13, 2009 03:35 AM

Anonymous

Doug MacCllum Calgary Alberta

There are solutions!!! You have one chance to turn that buyer and I have 6 tools to pick from...so I am just going to share One with You!!! This is not some gobbly gook answer from some prostitute trainer who has never had an original idea... This one is an original and it works.

The Key here is to show your VALUE !! Through your rapport, You already showed the customer you got Knowledge, Experience and great Advice...that you can freely share with a customer... but with dual agency or transactional or designated agency, turning them into a client you could be pend in by your Regulator...so let me teach you how turn this customer into a client...right now.

You warmed them up with info, like you did, showed your expertise... now you need to show your Value. My #1 favorite tool for this situation is... "The Listing Agent and the Seller on average know one another for 10 years and you for 10 minutes... who do you think has an advantage?" " Don't you think they discussed this situation amongst them selves, long ago when they Listed? Are you going to trust just anybody... This would be a good time to chat Agency wouldn' t you say?

So back to the experience you share and thousands like us can identify with you on this matter every day ... So as a Realtor you showed how wonderful you are and now the customer throws you a test objection about dealing with the Listing Agent. You either rise to the challenge or fumble the ball...what are you going to do next time. Now think what other good tools can you make to get over this hurdle. I read the other associates responses... and I was looking for a short sweet non threatening reply with a big thread of common sense that says, Hire Me? I did not see much in the way of a clear and concise answer... but there are 5 others I can think of... so put your thinking hats on and save the money!

Jul 13, 2009 11:49 AM

#65

Dan Magstadt

Paramount Residential Mortgage Group, Inc - Lake City, FL

That's a tough one...I'm not sure what I would have said in that situation. I don't know that there's a whole lot you can do when talking to someone that's savvy & realistically could save $20K in commissions....

Best,
Dan

Jul 14, 2009 06:25 AM

Gabrielle Kamahele Rhind

KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ

Broker/Owner

GOOD MORNING KENT! Congrats on the feature -- I'm a little behind catching up on things! If you couldn't secure this guys business after getting his little kid to stop crying - then the guy has no heart and substance. That's a pretty good size price to lose a deal over - understandably I would be kicking myself too - but like you wrote - life goes on and it will come around again in another way -- keep your chin up! -- Gabrielle

Jul 15, 2009 12:37 AM

Kent Anderson

Coldwell Banker Resort Realty, Sandpoint, Idaho - Sandpoint, ID

from Schweitzer to the Lake

Hey Gabrielle, Always nice to hear from you! ...and, NO KIDDING! The kid and I actually connected. I gave him a rock to kick around and he was in "heaven".

Jul 16, 2009 09:03 AM