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Refer My Motivated Cash Buyer to Another Realtor? No Way!

By
Commercial Real Estate Agent with Purchase Realty Group 41499

I recently referred my motivated cash buyer to another Realtor. A friend came in and asked me to sell them a house. It was tempting. They had cash. They knew what they wanted, and they wanted it right then. And, they had another house to sell as soon as they bought the new one with cash. The dream customer. Tempting? You bet!

I lost my mind for a minute, dollar signs flashing before my eyes. But, I said, “no.” Why?

Simple. I learned a long time ago that one cannot be an expert in every “thing.” My “thing” is Commercial-Investment properties. Not houses. What is your thing? If you’re a great home seller, then sell homes greatly.

“But, what if my customer wants to buy a commercial property for their business?” You say, “Aren’t commercial commissions bigger? Can’t be that difficult.”

I fell for that trap once. A friend talked me into listing their house for sale. I agreed. I really tried to be a great residential Realtor for ninety days. You know what? I wasn’t very good at it. I had to learn everything from scratch. I didn’t have a network of fellow Realtors to talk to about my listing. I didn’t have a “homes magazine” ad. I didn’t have any other inventory to direct prospects to when they didn’t like my only listing.

I wasted an untold number of hours attempting to do something I wasn’t an expert at. I failed miserably. I thought later about how much I could have made spending my time on my “thing,” doing what I’m actually pretty great at, and decided never to do THAT again.

What’s your worth? Do you know what your value is? Have you calculated much you make per hour doing what you’re great at? If not, do the math! Then, do only the things that earn you what you’re worth. Let someone else do the things that create less income than your hourly “worth.”

I can make $200.00/hour doing what I’m great at. I made ZERO/hour getting sidetracked into something I’m not great at. I learned to do what I’m great at, and refer the things I’m not great at to someone else.

How did that “easy” cash sale that I turned down work out? I just cashed my referral check, and I earned FIFTY TIMES my normal hourly rate for the few minutes it took me to refer my friend to another Realtor.

Not bad.

Now, I’ve found something else I’m great at. I’m great at referring “easy” sales to another Realtor.

Posted by

 

Donnie McKinney CCIM

Coldwell Banker Commercial

Purchase Realty Group

3906 Hinkleville Road

Paducah KY 42001

270-450-2222

Email

 

Kathleen Frawley
Keller Williams 916 730-4404 Elk Grove, Wilton, Folsom, Sacramento - Wilton, CA
South County Sacramento, 916 730 4404

A good decision, no other way to look at it.  Do what you are the very best at.  Good for you, good for your friend, and in the long run (not short run) good for your bottom line.

Dec 03, 2010 07:10 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Well realistically...we need to follow our code of ethics...and that states if youare not an expert then don't try to be at your client's expense!  So wise move on your part!!

Dec 03, 2010 07:18 AM
Jerry Dugan
Corpus Christi, TX

Nice! Smart thinking, too. You stuck with your core business and you did not deviate no matter how tempting that was. I had a similar story but in the opposite direction. I took up an opportunity to list a commercial property, but my bread and butter has been residential property since Day One. I failed miserably. I learned a lot, but it was a great disservice to my client at the time :(

Dec 03, 2010 07:28 AM
Donnie McKinney
Purchase Realty Group - Paducah, KY
Donnie McKinney CCIM, Purchase Realty Group

Jerry, I just started a new program to solve that problem ;) Check out htt;//www.commercial-re-academy.com

 

May 30, 2011 06:58 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

You sure did the right thing.

I work well with commercial professionals. I refer to them and they refer  their residential to me.

Perfect solution.

Margaret

Jun 11, 2011 08:55 AM
Not a real person
San Diego, CA

Hey, Donnie. I left a surprise for you in my blog post this morning. Let me know when you find it. What? You thought I was going to tell you exactly where it is? Ha! This comment is a clue, though.

Happy Saturday!

Dec 03, 2011 05:32 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Russell reblogged this and I missed it.  It is so true we can get sidetracked so easily in doing something outside our expertise.

Dec 04, 2011 04:11 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Good for you for referring a home buyer/seller vs. trying to work in that market.  Today's crazy distressed market can be frought with land mines.  You did the right thing! 

Dec 04, 2011 07:14 AM