How to Chase Away Your Potentially Perfectly Qualified, Perfectly Loyal Buyers
September 30, 2008
There have been some recent lively discussions over the cyber-waves about whether or not to require buyer pre-approval and/or a buyer agency agreement prior to showing a home. Most real estate agents seem to be of the opinion that it’s a waste of time to work with a buyer who does not have a pre-approval stamped to his forehead and/or hesitates to sign a buyer agency agreement upfront.
Such discussions always rile me up. I have to ask myself… are real estate agents in today’s market So Darn Busy with qualified buyers and motivated sellers that they need to actively turn away those who show up at their doors looking for help? Wow! As I always say in these situations - I LOVE a full pipeline! Send ‘em my way! I’ll take great care of them and probably sell them a house eventually… as well as to all their friends through the years. And I’ll be happy to pay you a referral fee.
I have used the services of many real estate agents in my lifetime and I promise you that if any of them had shown more interest upfront in my financial qualifications than in my housing needs, I’d have found someone else … who showed me the respect I think I deserve. And I certainly would not be interested in obligating myself to anyone I barely know. Oooooh, I get bristly just thinking about it.
I submit that many agents are chasing away perfectly good buyers who are 100% sincere in their desire to purchase a house — and are likely perfectly well qualified to do so. But with these disrespectful efforts to tie them down, all they’re accomplishing is sending them elsewhere… fulfilling the prophecy that Buyers are Liars and confirming the belief that stronger “rules” are needed in the future.
I disagree. I believe that this approach simply irritates buyers, so they look elsewhere for more respectful assistance. I have to wonder if spending time with a buyer without a hint of obligation or pressure might be a much better use of time than fussing so much over whether or not they’re worthy of a little time?
Relationships take time. There’s no way you can know upfront if a buyer will buy, regardless of the pieces of paper they bring with them or are willing to sign. If an agent can’t afford the $20 in gas or the two hours of time it might take to create some trust and rapport, then by all means, he’ll probably do better referring his potential clients out. And please don’t forget - we get serious paychecks when someone buys. Our paychecks more than offset the risk of a little gas money and time.
My friends, most buyers are not liars… Most buyers have better things to do than waste our precious time. Their time is precious, too. They simply want to be treated kindly, and with RESPECT.
About the Author:
Jennifer Allan is a top producing real estate broker, a published author, a speaker and a trainer. She has written five books about the business of selling real estate, including her flagship book: Sell with Soul: Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect. Her book shows new agents how to jumpstart their career so that they can experience success before they become discouraged and risk being just another real estate statistic.
Jennifer began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her "soulful" message, hopes to encourage the real estate community to self-correct the negative stereotypes of the profession.
She is a regular columnist at Realty Times and RE/MAX Times, and one of the industry's most popular bloggers. She recently rejoined her former RE/MAX office as a broker associate and is thoroughly enjoying dividing her time between real estate sales, writing, and coaching.
To learn more about Jennifer's books and philosophies, please visit her website at http://www.sellwithsoul.com/.
I can count the number of times I’ve used a buyer agency agreement on one finger. Personally, I think they are silly. Other agents claim I’m an idiot for not using them. Oh well, I’ll get over that.
I always snicker at the claim “I only show your home to buyers I’ve qualified” that some agents make.
The problem with “pre-qualing” buyers is unless you run, and analyze, a full credit report, bank statements, and financials, then you’re not really qualifying them. In fact, all you’re doing is annoying them. So what is the point?
We come at it from a different angle.
We don’t work to “sell” buyers anything.
We counsel them on buying a home.
Yes we have agreements upfront. Just like a consumer hires an attorney or an accountant.
When I show buyers how I can save them thousand and sometimes tens of thousands of dollars, they are happy to listen and work with us.
Jon Boyd
Broker/Manager
Exclusive Buyer’s Agent
The Home Buyer’s Agent of Ann Arbor, Inc.