Why Your Friend Listed or Bought With Another Agent!
A few weeks ago a good friend at church came up to ask me for a bunch of advice on a home they had under contract. The conversation went something like this, "Jared, I know you are a complete expert on real estate, and we have some difficult questions that our agent can't answer and need your help?" A lot of people would be irritated that their friend had not used them on the purchase of their home, but for me it was a wakeup call, and I was glad to have the conversation.
Over the last few years our market in Georgia had become an investors market, with tightening bank regulations and many people having credit that is, shall we say, less than perfect, it made a lot of sense to focus on foreclosures and on investors. Since I had a strong background in real estate investing I chose to focus on my several hundred investors. My friends knew that I was selling a lot of investment properties, and that they heard me on the radio on Saturdays. Frequently I got feedback that let me know that I was missing business that would have normally come my way. What business are you leaving on the table? Why did someone you have a great relationship choose to list with someone else? Why did they buy a home with a different agent? Perhaps your friends fall into one of these categories:
- They think you are so successful, so busy that you don't have time for their business.
- They think their business is too small, that you only work with million dollar investors.
- They think you only work with high end luxury homes.
- They think you only work with first time home buyers.
- You have not asked for the business.
- You lost touch and they aren't even sure you are still in real estate?
- They think you don't want to work with them because you didn't ask for the business.
- You haven't put them into a marketing database to keep yourself front of mind.
- You might not seem successful enough from the car you drive, the clothes you wear, the complaints you make, and they want to work with someone who they think knows real estate better because of their perception?
- They think they have to work with the agent who's sign is in the yard, and nobody explained anything to them.
- They don't even know you do real estate because you have never talked about it.
- They bought a new construction home from the host or hostess that sits in the house and didn't understand agency!
- Some other agent kept them in a drip campaign, and though they like you, they believe that agent earned the business.
- You don't have their neighborhood in your farm and they see another agents sign over and over.
- They might not want you to know their personal finances or credit history.
- You might not have been reliable at the PTA, volunteer/charity service etc that they know you from?
Evaluating how we come across to our friends and neighbors, and what our messaging and communication is telling them is very important to being successful in the real estate business. Your friends have to know you care the most, that you give the best service, have the most knowledge, are the best negotiator and can get them results! Personal relationships are important because they build trust, perceived expertise is important because it builds credibility. Understanding these issues will help you so you don't have to answer the question of Why your friend listed or bought with another agent!