It is the first thing many of us were taught in the real estate business. I can hear my mentor 10 years ago say now "You Can't Want the Deal to Close More than your Buyer or Seller".
We all know this, but why don't we always practice this?
- We need the deal to close because we need the lights on. We must pay the electric bill on the day of closing.
- We have such a vested interest in the deal closing because in our mind we already cashed the check.
- We need the deal to close because the last day to pay for private school is the day of closing.
- We need the deal to close so we can continue to take showers. We all know the water companies are ruthless and if we do not pay the water bill than it is going to be a little harder to sell real estate without taking a shower for a week or two.
- We need the deal to close because we do not want to continue to eat maccaroni and cheese and roman noodles for dinner. The kids are getting tired of jelly sandwiches too.
- We need the deal to close so when the ice cream truck comes around we can afford to buy our kids a Chipwich.
- We need the deal to close so we can pay back thee family and friends you borrowed from last month citing this deal would close on this date and I will pay you back then. I promise.
- We need the deal to close so we can stay in this business and continue to provide for the family. We love the real estate business so we do not want to leave it.
- We need the deal to close because our dog has cancer and needs surgery.
- We need the deal to close so we can go on a vacation as we have not been on a vacation since last Thursday.
We all want to take care of our clients, and sometimes our fear of losing the deal dictates how we react to our client, and perhaps is not in the best interest of our client. The amazing thing here is that if you truly take care of your client, and do not fear losing the deal it comes back 10 fold.
Buyers are very sophisticated now. Even the retired school teacher from the midwest will try and steal a home in South Florida. They will have all the statistics and information about the market. Buyers are very sophisticated.
Since Buyers are so sophisticated you must make sure you have their best interest or not only will you lose that buyer, but you will also lose your reputation. In order to stay in the business and be successful take care of your clients, and do not push deals on your buyers because you need to pay your electric bill. Push deals on your buyers because you believe it is the best thing for them.
David Serle
Vice President/Managing Broker
RE/MAX Services
561-912-3500 Office
561-912-3502 Direct
561-756-3104 Mobile
As a Realtor, you need reserves to be successful. I can remember originating a mortgage for a Realtor, she told me that this deal must close of she would not be able to pay her mortgage. I am thinking If you are that broke and desperate it may be time to reconsider a new career.
What really cracks me up is that there are finance companies who will give you a pay day advance on your tbd commission. Who are these Realtors using this service? These folks need to take a long hard look on taking care of there own situation prior to trying to help clients find homes.
SterlingChaseRealty.com
Hi David..Interesting read, and so true. Buyers can "smell" a needy real estate agent from miles away. When you are in that desperate frame of mind, you tend to attract the big time wasters. That's how it usually works for me, anyway. The harder you push,,the more they run in the other direction.
HAVE A HAPPY THANKSGIVING.
Integrity has a price but is also priceless. Doing the right thing always works, always. Even if it does not look like it at first.
Great post and a reminder to all of us that the client has to come first...always.
It is all about doing the right think. I can assure you that once you start doing anything just to get to closing because you need the income you will be in front of your local board or worse.
Your right David, the client comes first. I always look at each transaction as "what would I tell my MOM, if it were her house?" and that works for me. My mom isn't with us any longer but the theory still works for me. It helps you answer critical questions in the transaction too.
I was buying something from a salesperson one day and asked him "what would you sell your Mom?" And he answered quite sincerely what he would recommend.
This is a great post, David. I wish all Realtors lived by your suggestions. Unfortunately, like in any field, there are always those that spoil it for the rest of us. I am always honest and up front with my clients. I need to pay my electric bill, but I also need to be able to sleep at night.
Happy Thanksgiving to all!
Elyse Berman, PA, E-Pro, (Realty Associates Florida Properties)
Great post! We always put our clients wants and needs before our own. I have told buyer clients who were worried about taking up too much of my time that "the most important thing is finding them a home that they will love and live in for a long time."
I've been there and it did not close. I found a way to survive. We do need to but the client first. I am also not going to be so desperate I NEED A CLIENT or I die.
People can alway sense when someone is desperate and the outcome is never good. Real estate is the only industry in which getting paid is an all or nothing situation; so much of what we do goes for not and unfortunately, it does make people behave badly.
Professional people are paid for their work, the real estate industry needs to wake up...maybe these kinds of forums can help change the model. In the meantime, we have to continue to do the right thing!
Absolutely, the best way to avoid the pain of a deal falling apart is to have 3 or 4 that don't! Once you "let go", you are free to be successful
Hi David, Selling real estate to make the client's dreams come true is one thing. Selling real estate just to pay the bills is totally different ! Have a terrific Thanksgiving !
David
Well put and putting your client's first is not necessarily Pollyanna
Ty
Thank you all for your comments. I hope you all had a Happy Thanksgiving, and always put the client first.
In order to act as a true Fiduciary in this business, we need to get paid by the work we do, as we do it. Then, there would be no conflict of interest. Think about it.
We still run across people who do not even know we only get paid on a commission basis. I try to never even look at how much I would have coming from a sale until the day it closes. This helps to not set me up for any disappointments. I am usually more upset for my client if a deal goes sour than for myself.
Those that are in this business for a quick buck will soon be out of business.
In these hard times for many agents I can imagine that this has happened more and more this year. The problem is, it will get worse if this is how you wear your problems to the public. You will end up giving end to the sellers with credits and not looking out for your client's best interest. I was recently in the deal where the buyer wanted more and more in credits. The listing agent kept calling me to talk about throwing in money. GEEZ! Give me a break.
I like your title David. It is a sure path to trouble.
Thank you for your comment. I have been known to stir up the pot