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Please Take Off Your Clothes

By
Managing Real Estate Broker with Howard Hanna Rand Realty License # 49FA1074963

I just finished my first day of CDPE (Certified Distressed Property Expert) class, and am reflecting on one of the more profound insights given by the instructor, Mark Boyland. Mark, who is an excellent presenter, compared the difficult issues we have to sort out with distressed homeowners with the rather matter of fact way a doctor handles another rather touchy thing:

“Please take off your clothes. “

At my last physical, the doctor hardly looked up from his clipboard when he said that. But he was pretty comfortable about the request- so comfortable, that it seemed as mundane as asking his secretary if anyone called while he was out.

Now, when a guy is that blasé about your prostate test, there is a lesson to be learned.

We have to ask clients questions that are probing and invasive in any other context but real estate:

  • How much do you owe on your house?
  • Are you current on your mortgage?
  • Why did you fall behind on your payments?
  • Are there any judgments or liens on the property?
  • Etc. etc.

These aren’t comfortable questions to ask. And the answers might be very difficult to examine for a seller who is facing foreclosure or imminent default. But we have to ask.  As I have blogged before, privacy does not reside in a vacuum. The more we know about a client’s situation, the better we can serve them.


A physician can’t give a physical to a person in a parka. We can’t help a distressed home seller whose equity position and status with their mortgage company is a mystery. We have obligations of disclosure to others in the market place, but more importantly the answers to the uncomfortable questions affect our pricing strategy, marketing, negotiation methodology, and literally dozens of other critical issues that arise in the obstacle-laden, serpentine maze of loss mitigation.

We are between borrowers under financial stress and a large monolithic financial institution. Information is crucial. Patients need to tell their doctor where it hurts or they can’t be helped. It is the same in real estate. It isn’t fun to ask these personal financial questions, and while some of us are more comfortable than others about it, we have to ask. The more honest and forthcoming the client is in their answers, the higher the likelihood that they can be helped.

 


Originally published on the New York Short Sale Blog

 

 

Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I'm sure there was a learning curve for the doc . . . :-)  But, this is a great post about being factual, and not personal in the matter.  I'm glad to you're taking that course.  I hear it's pretty good.  We have a few  CDPE's in our area, and I LOVE to see them disclose this in their listings.  Breath a sigh of relief on showing the short sale to my clients!

Mar 03, 2011 04:46 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Thanks John!

Carla, I am going to write a post on this later after I complete it but it is a very, very good course. 

Mar 03, 2011 05:00 PM
Jeff Lorenzen
Keller Williams Park City Real Estate - Park City, UT - Park City, UT
Park City Real Estate

Catchy title! But some good questions to ask. The doctor has no trouble asking the things he does. Neither should we. If our clients want us to help, we need to know all the relevant information. Even if asking it is a little uncomfortable.

Mar 03, 2011 05:01 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

A new agent once commented to me, when I was teaching them how to compute ratios, "I could never ask anyone who much money they make". 

All I could say was, "You'll learn". 

Learn she did.

Mar 03, 2011 09:57 PM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

We just don't portray that level of professionalism in this business Phil.  Many do, but that isn't enough to conquer our customers fears and put them at ease in our presence.

Mar 03, 2011 10:08 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Phil, I have let homeowners know up front that I will be asking them personal questions. I have found that most were fine and not uncomfortable. Sometimes I am but we have to in order to help them.

Mar 03, 2011 10:30 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Phil, We had a seller hide from us once just how much trouble they were in.  Got them under contract quickly, THEN found out.  Fortunately they had plenty of equity, just behind on payments, so it all ended well.  We learned from that experience to put every listing's address in the foreclosure database to check for proceedings.  Hasn't come up again!

Mar 03, 2011 10:33 PM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

So true.  Oh, and you are so right - Mark Boyland is an EXCELLENT presenter.

Mar 03, 2011 10:37 PM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

I always start off by telling them that if they are prepared to go down this path, they will no longer have secrets from me. And yes, I learn to be better with each client. And what I found out is that when they sincerely want your help, by that time, they have no shame.

Mar 03, 2011 10:59 PM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

No dout about it Phil. You have to ask the tough questions when interviewing a distressed home owner!

Mar 03, 2011 11:43 PM
Judy Jennings
Top Agent Plus - Middleboro, MA
Tap into Judy's real estate expertise & resources.

Phil - Excellent example. You need to be able to ask the tough questions, because you need to know the answers in order to assist them. If you can't, then you shouldn't be there in the first place.

Mar 03, 2011 11:58 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I'm always amazed when I read a blog post by an agent who "lost a contract" because the buyer didn't qualify.  It is often revealed that they knew nothing about the buyer. 

Mar 04, 2011 12:34 AM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

It is always easier to do the tough things up front, rather than at the end when your time and energy have already been expended.  It is really analogous to raising a child, better to be firm initially and then ease up when appropriate, rather than go easy early on and then have to fight the rest of the way through.

I agree with Lenn as well, "Know thy Clients"

Mar 04, 2011 03:00 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I've gotten so used to asking these questions that it's second nature.  Of course, having compassion (the equivalent of a good bedside manner) helps immensely when probing for these answers.

Mar 04, 2011 03:51 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

I love the title of this one - really draws you in.  And, it is so important for all clients to disclose & share information so we can give them the best representation possible.

Mar 04, 2011 03:55 AM
Gay E. Rosen
Julia B. Fee Sotheby's International Realty - Larchmont, NY
As Real as Real Estate Gets!

Hi Phil - AN associate wrote to me last night and asked me what CDPE stood for...  I replied Certified DItzy princess Expert...    He said that he latest designation was AARP....   Best, Gay

Mar 04, 2011 09:53 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

This analogy was perfect.  Those question will make any one squirm but answers are necessary in order to arrive at a solution.

Mar 04, 2011 03:04 PM
Not a real person
San Diego, CA

Love your analogy, although I’ve never had a doctor ask me to take off my clothes. Doctors out here don’t do mundane tasks like that. It’s always the doctor’s assistant. J

Mar 04, 2011 10:17 PM
Tim Bradley
Contour Investment Properties - Jackson Hole, WY
Commercial Real Estate Expert in Jackson Hole, WY

If you aren't comfortable asking those questions of your sellers, you better start practicing until you are!

Mar 05, 2011 04:26 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Philip working with distressed sellers just takes our "seemingly" invasiveness to another level.  Hopefully we've had good practice all along.

Mar 05, 2011 10:02 PM