If Only You'd Ask Nicely - The Award Goes To Mutual Respect

By
Industry Observer with Get-Your-Best-Mortgage-Rate.com

We dropped our price. Now it's time for our agent to do her part and drop her fee.

The sellers featured on HGTV were in a tight spot. They just refinanced to overly upgrade a house in relation to its neighborhood and need to sell. The real estate agent has a frank talk about price. However sellers decide to price higher.

No offers follow. Frustrated sellers. Lack of home buyers. And then... The homeowners drop their price.

None of this story is unusual yet what follows catches my ear. The husband announces, "We dropped our price. Now it's time for our agent to do her part and drop her fee. "

Really?

Is it a given that an agent who never owned the house, had no say in its past refinancing, should automatically agree to less commission since the seller is running low on equity?

It's frustrating being a seller. Emotions fly higher than a kite. Spending 5 or 6% in equity to sell a house when the family home will barely break even to cover expenses is rough rough rough.

Today I see a dedicated group of Realtors taking care of homeowners in an economy rivaling the great depression. So all I could think to myself is, "If only you'd just asked nicely."

Now I am not debating whether real estate agents should or shouldn't lower commissions for distressed sellers. I am just observing that during times of stress, showing respect in our communication is just as important as in good times.

My heart goes out to sellers caught in a painful real estate market. I admire the sacrifice of real estate agents who continue nurturing home buyers and sellers.  Super duper kudos to both sellers and real estate agents able to work within the present confines, showing mutual respect.

Your Friend, Kate Ford

Get Your Best Mortgage Rate

 

 

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Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
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Jason, I have been a seller. Even with an insider's view, I saw my expectations unrealistic at times. So I know how difficult this can be for sellers. I have the utmost respect for agents who persevere through the real estate recession, gently guiding their sellers.

Sep 13, 2010 12:49 PM #11
Rainmaker
224,250
Suesan Jenifer Therriault
JTHIS-Professional Home Inspection Team - Blakeslee, PA
"Inspecting every purchase as if it were my own".

Imagine that! So you don’t think that the I want and you have to give it to me approach is best? LOL. I see so many Realtors going way out of their way to make some deals happen and I find myself wondering how they even manage to stay in business. I wonder how many sellers and buyers even stop to think about that.

"Thank you", "please" and "if at all possible" all go a long way when showing respect and appreciation. Great post and Thank you for this reminder, Super Kate.

Sep 13, 2010 12:50 PM #12
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Susan, And assumption is fueled by stress. These are times when showing respect might make the difference between a house getting sold... or not.

Sep 13, 2010 12:54 PM #13
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Super Suesan, I know... In Las Vegas, the values have really dropped. I lift my hat to our Realtors and real estate agents across the nation. Also to sellers caught in a tight market.

Sep 13, 2010 12:57 PM #14
Rainer
69,845
Christa Borellini
Prudential California - San Diego, CA

I agree to asking nicely and see where we can go.  Like you said, it isn't my fault they are in that situation.  I can do my best to help because that is my goal.  But assuming I will drop my commission will never work with me. 

Sep 13, 2010 12:59 PM #15
Rainmaker
207,985
Emcee M. Arah
Remax Excellence - Silver Spring, MD - Silver Spring, MD
Realtor w/Architectural Dimension, CRS, CDPE, CIAS

I think it comes back to sellers having unrealistic expectations of what is supposed to happen during their transaction.  Too many first time sellers have read all the stories about what they can expect of their real estate agent and mortgage broker and don't realize that half of it is pure malarkey.  Fortunately, when we sit down with (most of) them, and explain the real ins and outs, they come around to reality.

Emcee

Sep 13, 2010 01:29 PM #16
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
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Christa, What would happen attitude-wise about commission income if our entire economy was restructured to pay all workers on some type of commission. It's an interesting thought I've had for years. I keep waiting for DC to call me.

Sep 13, 2010 01:36 PM #17
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Emcee, Reconciling the seller net that is needed(or wanted) with market yield is not always easy. Your sellers are lucky that you take the time to educate!

Sep 13, 2010 01:40 PM #18
Rainmaker
453,505
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Kate - Being nice is always the best approach, regardless of the circumstances.  What the homeowner failed to understand in the HGTV segment is that the agent had already dropped their price by putting in effort and marketing towards a home priced too high to sell.  What that did to the agent was lower their effective income when compared to the time dedicated to the transaction. 

Difficult times require extra effort, and sometimes fees are negotiated, but when homeowners begin with the wrong approach and make invalid assumptions, they only lessen their chances for success. Great discussion--but I would expect no less from Super Kate!

Sep 13, 2010 01:55 PM #19
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Hi John!  Wouldn't it be great for HGTV viewers if we could add a comment or commentary at the end of HGTV segments?

Sep 13, 2010 02:03 PM #20
Rainmaker
453,505
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Kate - I like that idea.  Perhaps our remote could have a few extra buttons such as: Idiot - Shut up - Yeah, right - Did you get paid for this?  I'm sure there are lots more, and we already have interactive TV; let's make it more fun.

Sep 13, 2010 03:37 PM #21
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

John, Let's release remotes with obnoxious smilies for Holiday 2011. I'm also thinking they should hire you and me for short guest commentaries to wrap up each segment.

Sep 13, 2010 04:23 PM #22
Rainmaker
647,407
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

This is a great topic and I can empathize with both the sellers and the real estate agent. I think John has made a hood point about the extra effort it takes to sell a home priced too high. I personally know many hard working agents who do not always get fairly compensated for all their efforts. I would NEVER want to sell real estate, but I do love my job.

Sep 13, 2010 05:39 PM #23
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

James, There is room for lots of empathy. I also know you love your job. I can tell!

Sep 13, 2010 06:39 PM #24
Rainmaker
351,538
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Now it might be time for the agent to drop that client!

Sep 13, 2010 09:00 PM #25
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Damon, as the saga ended, the house was no longer listed and converted to a rental.

Sep 13, 2010 09:40 PM #26
Rainmaker
1,279,360
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Since I had nothing to do with this transaction, I think the agent should give ME part of the fee.

Oh, and I am entitled to her blog points.

And yours...

Sep 18, 2010 11:11 AM #35
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Jay, are you suffering from entitlement mentality today?

Sep 18, 2010 01:07 PM #36
Rainmaker
1,279,360
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Don't you remember my post?

http://activerain.com/blogsview/1663459/i-am-entitled-to-your-blog-points

Sep 18, 2010 01:48 PM #37
Rainmaker
166,025
Kate Ford
Get-Your-Best-Mortgage-Rate.com - San Diego, CA
Ask Kate a mortgage question...

Jayonomics, I knew that was what you meant but I'd missed your hilarious post.  Thanks! Katonomics/Nananomics

Sep 18, 2010 01:55 PM #38
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