Real Estate Gut Punches and How to Recover
Did you ever have that “sure thing” buyer client you thought was going to write an offer with you (after your showed 65 houses) call you to tell you how exited they were that their offer on the Open House they just walked into got accepted? Of course you have, you’re a Real Estate Agent.
You probably felt like you were punched in the gut and didn’t get out of bed the rest of the day. It was even worse than the time your neighbor listed with their cousin who just got his license but not as bad as the time your college roommate used someone else for his deal.
We call these things “gut punches” and they are part of the business. Get used to them because some variation will happen to you. Every year and sometimes multiple times.
What I want to tell you is:
It’s OK, happens to all of us, and
You can do things to help you minimize these situations
But they will happen and it doesn’t feel that great when it does. But you can still feel great.
When I started in the business I was told there are about 30 of these things that happen. Whatever the number is, there are things you can do to minimize how this affects your business and your emotions. And you can learn from the experiences to position yourself better for the next time because the next time will come.
Let’s take a look at my examples above and some others - but not all 30 because quite frankly I don’t remember them all. Well at least until the next time they happen.
YOUR BUYER DECIDES TO WORK WITH THE LISTING AGENT
Or the variation I mentioned - whoever is working at the Open House because they really don’t know the difference.
So here’s what I do to minimize that happening.
I go with my clients to all the Open Houses. Crazy right? Better than the alternative as far as I’m concerned.
Here’s what I tell my clients.
I will see things in these properties that they will never see. I’ve been in 1000’s of homes and sold hundreds. I know what I’m looking at, they don’t.
If I am with them, I can learn better what they like and don’t like and be a better resource for them.
Doing all showings including Open Houses also helps build the relationship and that’s what this is all about.
Some Agents will get their clients to sign a Buyer Broker Agreement. That’s great if you can get it signed but if your clients don’t honor it, your recourse would be to sue them which is not good for your reputation.
What I also do is educate my Buyer clients that just as they would not want the same lawyer representing both parties in a lawsuit, they really need their own representation when they make the biggest purchase of their life.
YOUR SELLER PROSPECT LISTS WITH ANOTHER AGENT
I’m not talking about the times you go on a listing appointment and lose out after the Seller interviews 3 agents and goes with someone else. That happens and is a gut punch. But you are not going to win every listing appointment. So think of that as a dis-appointment but not a gut punch.
What I’m talking about is when your prospect says “I’ll sign the listing agreement when (fill in the blank)” they finish the remodel, declutter, paint the kid’s rooms, etc, etc. Then you see the listing in the MLS and when you call them up they say “the other agent had a buyer” or “my friend just got his license and I want to help him out” or any other of a few dozen excuses. Assuming they take your call or answer your text. Truth is, they probably were never going to list with you anyway.
YOUR BUYER DECIDES TO CANCEL
Deals get canceled. I get it, it sucks. You skipped your kid’s soccer game and missed your sister’s wedding to show the buyer the house they are canceling the escrow for. You were on a 3 hour phone call with them to explain the entire purchase contract.
Cancellations will happen - whether it it on your listings or it is your buyer. Get used to it and get over it.
Here’s what you can do to minimize, but not eliminate this from happening.
Don’t force or push your client beyond their comfort zone. Communicate and understand their needs and motivation as much as you can - we are not psychologists but psychology is involved.
The best way to move forward when a buyer wants to cancel is to be supportive. Most buyers after they cancel the first deal are a lot easier to work with on the next deal and it goes through without incident. If you have a buyer who has canceled multiple deals, possibly you should cancel that buyer.
THE APPRAISAL COMES UP SHORT
As prices have been escalating, this comes up so often that it shouldn’t even be a gut punch. But it is.
A good practice is to communicate to your buyer clients up front that an appraisal is an “opinion” of value and not an absolute. Also explain that appraisers are looking only at properties that have sold and not what is in escrow or available. So when prices are going up as fast as they have been, some properties won’t appraise.
YOUR COMPANY IS SOLD OR MANAGER IS REPLACED
Expect to see this often over the next few years as the industry consolidates and streamlines. This can be very disconcerting. If you work for a firm that you think might be ripe for acquisition, best to have some feelers out in the market for making a move. If you are a producer, you will be a hot commodity.
And if you are not a producer, you should be signing up for coaching with me or someone else.
SUMMARY
A key to success is keeping an even keel and “rolling with the punches”. If you are a real estate agent, you will get knocked down. You have no control over that. But you do have control over how you respond. Getting the next deal into escrow is the best therapy.