MY BUSINESS CARD SAYS REALTORĀ®...NOT TAXI DRIVER!

By
Real Estate Agent with Thomas Waite Real Estate Broker
http://actvra.in/ypw

A lot of A R REALTORS® are making their cases, on their blogs, for how and why they feel "hurt or used" by "buyers"...who take their time, and gas, then buy from another agent...

They show them a bunch of properties, feel hurt or used, buy them a bunch of lunches and dinners, feel hurt or used, waste a bunch of gas and time and effort, feel hurt or used, lose important time with their kids and families (this is the point where the pathetic background music fires up), feel hurt or used, did I mention that they feel, feel hurt or used, when their "Client" buys a home (or Investment Property) from another agent...and they don't get paid...and they feel hurt or used...WELL...

 

BUYERS ARE NOT LIARS..."MOST" REALTORS® ARE NINNIES.

 

IN THIS MARKET, WHERE THERE ARE "TOO MANY" HOMES (INVESTMENT PROPERTIES) TO CHOOSE FROM, I BELIEVE THAT MOST BUYERS WANT AND NEED A STRONG REALTOR® TO GUIDE THEIR PURCHASE.

AND... it MAY be unethical and/or a Violation of the REALTORS® Code of Ethics, to take them for a first viewing tour...for free...WHAT IF THEY'VE SIGNED A BROKERAGE AGREEMENT with some other agent...and don't reveal that to you?

What if your FREE efforts lead them to a defective house, they buy it from some other "not too active Agent", and they sue YOU for defective agency...and win... and you don't even get paid?

What a bunch of "bunnies"...there ARE many more client prospects out there...WHO REALLY NEED YOU!

ASK "the questions" before you waste your time and money!!!  If this isn't the right prospect... RELEASE them and go on to the next!!!

They are customers...NOT CLIENTS or Buyers...until you have a written contractual agreement with them...then they qualify as CLIENTS.

I KNOW THAT BUYERS WANT AND NEED A STRONG REALTOR® TO GUIDE THEIR PURCHASE.

BUYER AXIOM:  BUYERS ALWAYS BUY!  THEY BUY EVERY STEP IN THE BUYING PROCESS...OR...THEY AREN'T BUYERS!  They will buy EVERY one of the following steps or they AREN'T MY BUYERS!

MY BUSINESS CARD SAYS REALTOR®...NOT TAXI DRIVER! Quote from Mike Ferry

When a BUYER prospect contacts me or visa/versa. About the third question on my FIRST follow up call is: "Are you working with any other agents in this area, (out of area prospects) in your area?"  I know, I know...IF THEY ANSWER YES...the answer may make you feel sad...but NOT USED!  Just think, you will have more gas money, food money, and you can go patch up that relationship thing...

Followed by, in no particular order:

Do you have any friends or family agents who will have hurt feelings if you buy from me? 

Have you signed a buyer broker agreement or written contract with any other agent or "relocation company"?

If the answers are all NO: I explain that I work by Exclusive Brokerage Agreement...sort of like we were going steady or engaged...(laughter).  We would work as a team to find their new home.  I then, briefly, explain Buyer Brokerage.

If the ansers is YES: I explain that I work by Exclusive Brokerage Agreement...sort of like we were going steady or engaged...(laughter).  We would work as a team to find their new home, however, they would need to be willing to release all the other agents and work exclusively with me.  I then, briefly, explain Buyer Brokerage.

I KNOW THAT BUYERS WANT AND NEED A STRONG REALTOR® TO GUIDE THEIR PURCHASE.

I set MY standards high on their behalf.  I actually have a Buyer Testing System.

BUYER TEST #1:  BUYERS HAVE TO BE ABLE TO FIND MY OFFICE, ALL BUYING PARTIES AND DECISION MAKERS MUST ATTEND, TOGETHER!

BUYER TEST #2:  When a buyer comes to my office they get the chance to know me and I get to know them.  I give them a 20 minute, presentation about ME and what I do, what Buyer Agency means, why they should use me and why they should sign a Buyer Brokerage Agreement.  We then fill out a comprehensive "Confidential Information Sheet"...like they do for a doctor or dentist, etc.  I get to KNOW them and their needs...school needs, investing objectives, ability to qualify, birthdays, anniversarys, kids sports, all of it is important. 

BUYER TEST #3:  DID THEY JUST GET FORECLOSED IN ANOTHER CITY OR STATE?  Co-signed for a druggie kids car?  Buy out Home Depot or CostCo?  Are they Getting a divorce...maybe from two other families?  Who, What, Where, Why, When and How.

BUYER TEST #4:  This is when my loan broker is called for a pre-qual session on speaker phone.

If they're unhappy or hesitant, I need to understand why or they may choose to find an agent they feel more comfortable with.

YOU HAVE GOT TO DO THIS TO BE A PROFESSIONAL IN YOUR CLIENT'S EYES.

BEFORE WE GET IN MY CAR...THEY HAVE SIGNED A BUYER'S BROKERAGE AGREEMENT!  Sometimes I will accept a brokerage agreement just for a single showing where they agree to buy any of the properties "I show them" from me, as Procuring Cause, if they buy the property within the next 360 days. 

Kind of a get to know each other day with a written commitment (they sign a copy of each property info sheet).

Does every buyer buy ALL of the steps...NO!  About 75% of the "buyers" don't sign and go out and find another agent that they are more comfortable with. 

But the 25% who do sign have a 95% closing ratio...go figure...they're BUYERS!

In my normal follow up calls I find that the Non-Buyers, who chose not to accept my services, are VERY happily using 3 to 5 agents to find "just the right house/investment", sometimes 60 to 90 days later.  I'm glad I didn't give them any FREE Days!...and they're getting what they want.  Win, Win, Win.

BONUS BENEFIT OF ASKING:  I avoid wasting their time AND all that $4 per gallon gas (soon to be $5) and get to have a nice, inexpensive personal conversation instead. BECAUSE...

*WHAT IF THEY'VE ALREADY SIGNED AN AGREEMENT BEFORE YOU SEE THEM...OR HAVE A RELATIVE..."IN THE BUSINESS"? 

Are you "infringing" on someone else's contractual agreement?  It may be against the law, too!  So, it could turn out that: you don't get paid, may be sued by your Non-Client and/or the District Attorney may charge you with business related crimes...then what about your Association Ethics Committee?

I KNOW THAT BUYERS WANT AND NEED A STRONG REALTOR® TO GUIDE THEIR PURCHASE.

We are supposed to be professionals and supposed to have the Knowledge, courage and conviction to do the right and ethical thing

However, maybe you think I'm wrong and that I will make the Non-Buyers feel "hurt or used"...there's a comment section below...let me know what YOU think.

FYI:  Mike Cooper of VA is very good at Buyer service...in MY humble opinion.

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Tom Waite

THOMAS WAITE REAL ESTATE BROKER

PO BOX 3205,  CYPRESS, CA 90630

714-895-2174 Direct; 714-398-8292 Fax  Tom@TomWaite.com

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Topic:
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NATIONWIDE INVESTORS NETWORK
The Economics of Real Estate
Tags:
professional ethics
ethics
prospecting
buyer brokerage
agent education
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Rainmaker
506,395
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate

Ha!  I love the title of the post today.  So true, with the price of gas now or anytime for that matter, don't taxi around the buyer until you have a committment. 

 

I enjoyed the post.

Patricia Aulson/ Seacoast NH & ME REALTOR

 

Thanks,

March 09, 2012 09:34 AM
Rainer
23,379
dave bothell
NATIONAL REALTY CENTERS

Ride and Go Seek! I have talked to alot of agents over the year's it seems some things never change! some agents tell me they show 40 to 50 houses to some clients and they think this is what they are supposed to do:( Great post

March 09, 2012 09:39 AM
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785,272
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

Like all sales you have to prequalify the buyer. That means not just in a financial way. Your post is good , with the points you raise. Even then if you get stuck it happens. But catch and release is key. If the buyer doesn't meet the criteria as you have blooged about then they probably are not a buyer

 

March 09, 2012 12:47 PM
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Bryan Robertson
Broker, Author, Speaker
Catarra Real Estate, Inc

I don't drive people around and certainly don't waste time with them if they've got an existing agent.  Ask the question early, ask it often, and the chance of  being burned drop substantially.

March 09, 2012 01:20 PM
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Rainmaker
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Tom Waite

So Cal-Apartment Bldg Investments
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