Creating The Best Case Scenario To Your Disadvantage The Head Games That Can Cost You
Hello everyone I hope all is well! Its been a crazy week and been dealing with a few things I feel are important. Here is one! Let me know what you think?
Real Estate sales can be the most exciting career in my opinion for one factor and that is the unknown. One day you can have zero clients and a sleepless night thinking about who is going to hire you for a job to make ends meet because everything you are doing is just not working out. Next hour you have two new listings with buyers to purchase these homes and within 30 days a fresh $20,000 in your bank account. My point to this is imagine all the emotions you have just gone thru in a short period of time. These best case scenarios can happen but not likely everytime. Do not let your brain create a false reality or let yourself daydream your way to happy closings before they occur. Here is what I do to keep myself and agents on an even mental keel.
Dealing with Buyers
If they are not prequalified assume they have no money until they are willing to take the steps to prove to you that they can purchase real estate. If a person truely wants to purchase they will have no issue listening to you by either producing a proof of funds or pre approval. Do not fall into the hope trap of running buyers around that are not qualified you will be going thru the motions and not getting paid for it. I do not care if they tell you they own an oil rig.If you google them and their wikipedia says they are a hollywood movie director. My company policy is that you cannot see homes unless you qualify in writing that I, or the agent, can see. Buyers not being qualified hurts the agents mentality, wastes money and wastes other sellers and listing agents time. I ask for preapproval or proof of funds if they fuss I explain to them how to go about getting approved. I follow up in a day or so and at that point I can determine if I have a winner or a time waster! This is learned and I talk tough but I do remember showing a couple about 9 homes then they were denied a loan. I had created a dream commison check in my bank account and was to afraid to ask the clients to get qualified because I was not being honest with myself. I learned a great lesson and gas was expensive.
Dealing With Sellers
They are not off the hook making sure they are qualified is a must. Before we negotiate what I am going to be chargeing in commission and what they want to know I need to understand their situation. I have to remind myself I am the professional my system works and we need to move the way I want to. One of my old bosses use to say the tail does not wag the dog. I thought it was a crazy saying until I over priced a property and it sat on the market to be taken away and sold by another agent that was in control of the their business. What really got me was the purchase price was exaclty what my market analysis told me it should be but I went with what the seller told me to price their home. What I do now is keep control. I do a search and hold and request a payoff amount right away. I then do a current market analysis to see where I can sell their property. Then during a face to face meeting If what I believe does not match up with what the seller wants to do I do not take the listing. I am not rude about it, most of the time I tell them we need to wait until the market catches up to what they believe their home is worth. I follow up every quarter or month and usually the following spring there is a sold sign in their yard.
Being a broker owner I see agents doing crazy things that I feel I am personally at fault for being a poor coach. Now I cannot be everywhere at once and people will do things because they want the best case scenario to happen so they can cash a big check. In reality some of these lessons need to be learned on your own by being burned. If you find yourself showing houses to a person that has no pre approval or proof of funds STOP you are being a crazy person. If you find yourself being controlled by a home owner STOP again you have to be in control. Working hand and hand with a client is the goal with both you and the seller being on the same page for a smooth ethical transaction with a happy out come.
If I can wrap this all up the easiest way I can think of is be positive but do not blind yourself from the fact a lot can go wrong with all the moving parts in the transaction. Good luck this can take time to master.
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