How To Deliver Bad News

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When I am asked why our office is outperforming the local market by more than 20%, I reply that there are three factors: 

1.  Our agents know the truth about today’s real estate market,

2.  They are effective in explaining this truth to our clients, and

3.  They are willing to walk away from clients who will not listen.

It is #2 I want to explore deeper today – How to explain ‘the truth’ to clients effectively.

In today’s market, ‘the truth’ is not easy.  Sellers who hold inflated opinions of their home’s value simply are not going to be successful selling if they do not lower their price.  Buyers who think they hold all the cards may make an offer insultingly low . . . and not in their best interest.

The fact is ‘the truth’ is often bad news and most real estate people are not wired to deliver bad news.  We got into this business to help people.  We are ‘people’ people and it is not natural to for us to make others feel bad by delivering bad news.  Plus we are afraid the client may take out their anger and disappointment on us by firing us.

But the law as well as good business requires we share the truth.  So how do you deliver bad news without getting fired?  Here is a four step program:

1. Be certain that the advice you are going to give (lower the price, raise the offer, allow open houses or a sign, etc) is what needs to be done.  You need to be certain your advice is correct or your message will lack conviction.
2. Understand that HOW you deliver difficult news is as important as WHAT you say.
3. Relax yourself and prepare them for the bad news by using a brief, practiced segue – a bridge between the time you open your mouth to speak and the actual delivery of the bad news.
4. Deliver the news straight and in simple terms.  Do not be wishy-washy.

All four are important but #3 is the one that will protect your relationship with your client.  So what are these segues?  Here is one example.  You might use it with a buyer who is making an insultingly low offer – one that will result in him not getting the house:

“Jerry, I don’t want you to get mad at me but I also don’t want you to come back to me later saying, ‘you knew what I was doing was wrong – why didn’t you try to help me. Can I tell you what concerns me?”

Here’s one that works for almost any occasion where the client is doing something not in their interest:

“Tom, let me ask you a question – if I thought you were about to do something wrong – really wrong - would you want me to tell you?”

Another that works for nearly every occasion is this:

“I don’t want you to do anything you don’t want to do, but as your agent I have a responsibility to protect you if I think you are about to do something that is not in your best interest.  I think you are about to do something not in your best interest.  May I tell you what it is?”

These must be delivered expertly and with proper sensitivity.

As agents we are only successful if our clients are successful.  And if they are acting in a way inconsistent with success, it affects not only them, but us and those who depend on us.  Learn to help your clients understand the truth and you will go a long way to making their lives, and your business, better.

(If you would like more sample segues, send me an email to MattWilliams@RealtyExecutives.com )