I think sometimes I am overpaid!

By
Real Estate Agent with One Sotheby's International Realty- Miami Beach Real Estate

Real estate is rewarding.  I like my job.  Sometimes, though, I get frustrated with my clients when they won't let me perform to the best of my ability.

For example, I once listed a spectacular Penthouse here in Miami Beach.  Against my better judgment, we list the property at a price that I know is waaaay too high, of $3,800,000.  We immediately get an offer for $3,000,000.  Of course the owner is appalled at the "lowball offer".  I try to reason with him, to let him know that we should be seriously considering this offer.  I present him with all of the comps and the rationale for my thinking, but I just can't get through to my seller client.

When you hire a professional to assist you in the sale of your home, do your best to take advantage of all that professional has to offer you.  Why pay for the services of a professional, and then ignore the  cold, hard facts?

Two years later I re-listed the property at $2.8M!  This is a text-book case of the frustrating part of my job.  I would have loved to help my seller client make more, than he now can, two years later.  My knowledge and intuition, plus the comps in front of us, told me we should have taken the first offer of $3,000,000..  I tried with all my might to convey this to my client.  The Penthouse sold for $2,600,000.  That is $400,000 LESS than had my client followed my original advices.

In this case I wasn't given the ability to 'work' for my commission. 

I guess you could say it was harder work to try to convince him, as that took many hours of my time.

But I don't see my value in increments of time.

I guess you could say having to list it twice, two years apart, was more work on my part.

But I don't see it that way.

Perhaps if he had listened to me the first time around and taken the offer of $3,000,000, he would have felt that he undersold it.  Clearly he knew it wasn't my fault, given he listed the property with me two years later.  He didn't blame me when he eventually received $400,000 less, than had he listened to me two year's prior.  I wanted to help him more than I did, but he just wouldn't let me.

When the owner made $400,000 less on the Penthouse; I still made my commission.  What bothers me the most is had he taken full advantage of my skills, to his benefit, he would have been happier and so would I.

Sure, agents in my office congratulated me on my "big sale" and my "big commission", but I didn't feel as though I earned it as much as I would have, if the owner had taken the $3,000,000 offer per my advices in the first place.  I sometimes think I am overpaid, when my clients ignore my best advices.

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Rainmaker
305,010
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
Excellent Article, and so true.  Sometimes people just don't realize that we really DO have their best interests at heart.
Apr 25, 2007 03:59 PM #1
Rainer
32,680
Michelle Way
AVALAR Pro Realty - Jackson, MS
ABR, GRI, WCR

People honestly feel that if we suggest take the offer we are only thinking about the quick closing.... Sometimes that is true.... Most of the times it's not.... We have their best interest at heart.

Apr 25, 2007 04:04 PM #2
Rainer
8,434
Johnnie Taylor
CFB - Lexington Park, MD

Veery good post.

Do you know where this type of bull-headedness comes from? Your clients want to trust you, but, they will only do it so far. Then they want to feel they have the final smarts to make it all happen.

The problem is that if you are truly looking out for them, they will learn that you are worth your commission...AFTER they see the downside of what you have warned them about.

I don't mind being wrong, but, I would rather be wrong and my client make more money, than be right and they have cheated themselves.

Apr 25, 2007 04:06 PM #3
Rainer
64,253
Jay Kinder
Kinder Reese Real Estate Advisors - Frisco, TX
I feel your pain. Sometime people have to learn things the hard way no matter how sincere the message is delivered.
Apr 25, 2007 04:35 PM #4
Rainer
32,950
Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Hey Kevin... you are so right.  We should get paid for what we know.  Nice post!
Apr 25, 2007 11:54 PM #5
Rainer
22,271
Luther Harrity - Saint John, Rothesay, Hampton, New Brunswick Real Esate
Royal LePage Atlantic/Harrity Real Estate Services - Saint John, NB
Hey Kevin, I don't think that you've been over paid. You knew exactly what you were supposed to, and tried hard to get your client to see the light. I don't think you should feel bad about it, maybe just try and find something different to try next time or something you can learn from? Great post though!
Apr 26, 2007 12:38 AM #6
Rainmaker
167,800
Mary Pope-Handy
Sereno Group Real Estate - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley
Been there, Kevin. It's frustrating. Luckily your client knew to rehire you. At times, clients just refuse to believe their homes are worth less than what they believe - and what they believe is based on emotion and not comps. It is very, very frustrating. And to me it's even more frustrating when the client later blames the agent - which at least did not happen to you now.

But you are right. Why hire a professional and then ignore professional advice?
Apr 27, 2007 12:43 PM #7
Rainer
510,216
Jacqulyn Richey
Prominent Realty Group - Las Vegas, NV
Las Vegas Real Estate
I'm not surprised at all, its human nature. People hire experts for their opinion, hear the opinion and then do exactly what they want regardless of the advice they were given. Its not surprising, the president does it all the time. -Charles
May 01, 2007 06:16 AM #8
Rainmaker
147,171
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Happens all the time.. and it makes no sense .. I had  clients who wound up losing their home to foreclosure a few years ago while they waited for a better offer.. it's Nuts.
May 01, 2007 05:35 PM #9
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Rainmaker
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Kevin Tomlinson

Miami Beach Real Estate
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