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How to Deliver Bad News to Your Client

By
Real Estate Agent with William Raveis Real Estate RES.0772823

FRAMING IS IMPORTANT, SO WHY DON'T WE DO IT ALL THE TIME?

We all know that the way information is presented makes a huge difference in the success of our business  We are in sales after all.  We have to persuade sellers to list with us and buyers to work with us.  However, we often don't take the same care in our day-to-day communications with our clients regarding the transaction side of our business.  

We try to fit so many tasks in our day that breaking bad news to our clients becomes an unwelcome interruption to be dispatched as quickly as possible.  We may get the bad news that an offer was rejected, a laundry list of inspection items is demanded by the buyer, or the a buyer has backed out.  We have a fiduciary responsibility to inform our clients of this information in a timely fashion, so in the rush of our busy day we pick the phone and we drop the bare, naked bad news on their lap without any planning.

FOUR STEPS FOR DELIVERING BAD NEWS

I want to suggest that we take five minutes before picking up the phone to call our clients with bad news to plan our communications with them.  I know this seems elementary and most of us do this most of the time, but if we can make this a habit that is automatic, the chances are better we will do this even when we are rushed and exhausted:

1)  Get all the facts you can reasonably obtain before delivering the news.  Think about the questions your client will ask when you tell them this information.  In order to do that, you have to be able to get into your clients' head and both think and feel from their point of view.  If you deliver the news and they ask you a dozen questions that you can't answer, they will feel that you didn't think about all the ramifications of this news.  

Sometimes you have to deliver the news without having an answer to all their questions, but if you tell them upfront the questions you will be seeking answers to before they ask the questions themselves, then they will feel you are already on top of things.  If you have the answers to some of their questions, they will feel even better.  Of course, you have to deliver the news in a timely fashion, but sometimes a few quick calls will yield the information you need t
o verify the accuracy of the bad news and uncover
important facts about it.

2) Set the facts within a broader context.  If the sale fell through then it's about the likelihood of getting another buyer at this price and within a certain timeframe given comparable sales and the current market.  If it is an inspection item, then it is about the reasonableness of the request and the options for resolving the issue.  Frame the bad news within a broader perspective that helps the client interpret the information accurately.

3)  Understand your client's frame of mind.  Our clients have ways of looking at the world.  The information we give them will be interpreted in light of their own perspectives.  Some clients will react emotionally and some will be calm and pragmatic.  Think about your client's mindset as well as their situation.  If a client has to sell for urgent financial reasons, the fall through of an expected sale will be more devastating than for someone who has no specific timeframe in which to sell.  Adjust the framing of the bad news to include not just the broader context, but also the way your client will interpret the news given their mindset and circumstances.

4)  Have a plan for next steps.  Let your client know that you are a professional who understands their situation - both the emotions involved and the practical issues.  You need to convey that you have the experience and expertise to guide them through this difficult time.  Even if you don't have a plan for how to handle the situation right now, let them know a timeframe when you will get back to them with a plan.

 

 

BETTER RESULTS

Yes, you have a fiduciary responsibility to deliver bad news in a timely fashion, but you can take a few minutes to plan out your communication to your client.  You are the intermediary between the negative information and your client.  You need to think about how you will deliver the news to make the difference between a satisfied client who feels they are lucky to be in the hands of a caring, thoughtful professional or a dissatisfied one who won't be back as a repeat client in the future.

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Comments (53)

Janice Ruiz
Keller Williams - Westfield, IN

Great post Gail,  particulary relevant in our local market today.  Many homes are selling before the buyer can see it  or  goes quickly into a multiple offer situation.  It is good to use your guidelines to prepare to deliver the lost offer message.  

Thanks,

Janice Ruiz

Indy's Home team

Keller Williams Realty

Indianapolis, IN 

Apr 10, 2016 03:19 AM
Gail Robinson

Janice, Sometimes we can see the potential for bad news and prepare our clients ahead of time with some context and options.

Apr 10, 2016 09:02 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Hi, Gail.

I included this one in today's Last Week's Favorites.  Hope you enjoy the rest of your weekend!

Apr 10, 2016 04:26 AM
Gail Robinson

Patricia, Wow, I'm honored you chose my post!  Thank you!

Apr 10, 2016 09:02 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Fantastic post Gail! There will be times when bad news is the only news to relay. Trust plays a huge role in how the relationship moves forward from there.

Apr 10, 2016 04:59 AM
Gail Robinson

Wanda, I didn't address trust in my post, but getting bad news from an agent who the client has a long-term, trusting relationship with is very different from an agent the client doesn't know well and hasn't developed a trusting relationship with.  

Apr 10, 2016 09:04 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Gayle - Excellent post and very useful advice for a difficult but occasionally necessary task we need to perform as professionally as possible. Thanks.

Apr 10, 2016 07:58 AM
Gail Robinson

Dick, I'm glad you felt the advice was useful and like the post!

Apr 10, 2016 09:04 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Well deserved Feature!  Awesome tips for giving bad news. It's all in the delivery!

Apr 10, 2016 08:19 AM
Gail Robinson

Sharon, The delivery is so important.  There is so much emphasis on delivering the bad news fast, but taking the time to frame the discussion can preserve the relationship.

Apr 10, 2016 09:05 AM
Susan McCall - - Compass Realty Solutions
Compass Realty Solutions - Portland, OR
Listing and Buyer's Agent

Thanks for the outline.  I liked the idea of having choices of solutions at the ready.  Sometimes it is so difficult to deliver news that is the happiest.

Apr 10, 2016 11:15 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Gail Robinson - very nicely defined plan for us to 'break the bad news'.

One of the things - apart from these 4 steps - I do with my buyers who are willing to go as high as they can and don't get the home is - to prepare them for the worst in this 'hot' market. So if they hear they did not get the home - a bad news - they are disappointed but not that much.

Apr 10, 2016 04:42 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Gail Robinson,

So glad to see your post featured on Patricia Kennedy Sunday picks. Excellent outline to follow when delivering bad news.

Apr 10, 2016 10:00 PM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

For me, this is comparable to a doctor's bedside manner. They don't teach that in school either.

Apr 10, 2016 10:57 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Great post, especially for newbies and those that hate conflict. But, I agree. I get the whole story & a solution, before I drop a bomb. This way, the bad news is in the middle of my sentence and solution is at the end! Save the drama for your mama; get solutions!

Apr 10, 2016 11:38 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Sometimes I might wait until the next day just to gather my thoughts. Thanks for your great post!

Apr 11, 2016 12:00 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Gail, so well said and knowing our customers is so important especially with sellers and counter offers or inspection items that blow up in for them.  Be the consummate professional always goes a long way.

Apr 11, 2016 12:34 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

This is a great post, Gail:  rushing often doesn't yeild the best results!   Reflecting on possible pros and cons of the situation, trouble shooting it in our mind (or with others), and considering our clients' point of view before the phone call can make bad news a little easier for our clients to deal with.

Apr 11, 2016 01:10 AM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

This is great advice Gail. You would be surprised (or maybe not) by the number of loan officers that try to bury their head in the sand and stall rather than giving bad news. Most people would rather receive the bad news in a timely manner and be able to tackle it than to find out at the 11th hour that there is a problem. 

Apr 11, 2016 05:53 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I tried to deliver a good news first and say are you ready for a not good one?

Sam Shueh

Apr 11, 2016 08:55 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Nice tips to help make the bad news go down a little easier.  Ugh.

Apr 11, 2016 01:49 PM
Deleted Account
Fort Myers, FL

Great post!  I will think about the bad news several time prior to telling my clients.  Once I hear it, I will try to figure out why it happened, was there anything I could have done to prevent it, what questions might they ask me, are there any easy solutions, what are my clients options and which so I think is the best option for my clients.  Then I tell them in person, if that is possible, so I can ease the pain.  

Apr 12, 2016 05:49 AM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Excellent tips! It is never easy to deliver bad news, and having a plan and method to do so always helps the process. 

Apr 12, 2016 08:18 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Gail that is a wise approach.  Do not mess around and put off the bad news or deliver it in pieces.  Get it taken care of, but with a plan like you outline, and move on.  

Apr 13, 2016 10:14 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Your last step is key... have a plan ready! Excellent advice here!

Apr 15, 2016 03:38 AM