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sign-inRespect is a Two Way Street
Date: August 11, 2008 2:14 PM
Permalink: Respect is a Two Way Street
There are 3 comments.
This past week, a real estate agent opined in her blog that when agents make a practice of asking a buyer for a pre-approval, or even request that they sign a buyer agency agreement to show a commitment on their part, that this is a sign of "disrespect" to the consumer.
She further went on to say that she herself has used the services of real estate agents in the past and if any of them had asked upfront for evidence of her financial qualifications or willingness to make a commitment, she'd have found someone else who showed her the respect she believed she deserved as a consumer. I read her post and was frankly, speechless. And when I found at least two dozen comments from other agents on her blog exclaiming what a great post she made and how they agreed with her a hundred percent, I was even more so.
Sheesh! Is there any profession other than real estate that considers it "disrespectful" to ask that their time and expertise be valued? Is it so outlandish to have the expectation that if you do your job well and help the client to achieve their goals that you have the right (horror of horrors) to get paid? And why pray tell, in an industry that traditionally asks for no upfront fees and where one is required to pay all expenses such as (hmm, I don't know, maybe GAS!) out of pocket, it is somehow "disrespectful" to actually ask for some kind of a commitment to work exclusively so that when the consumer actually finds their home, that you can get paid for your efforts?!?!
Consider that if you have a doctor or dentist appointment and cancel less than 24 hours before that appointment, most will charge you for the appointment anyway. Do we find it "disrespectful" that a provider has such a policy? The answer is a resounding NO. In fact when a professional communicates that their time, as well as their expertise is valuable, it's amazing how many show up on time rather than call and say they decided to work with another dentist.
I guess professional real estate consultants are a different breed, viewing the real estate industry and our role in it quite differently. We discussed this subject extensively on our Coaching Forum and here are just a few of the comments:
"I advise buyers that they should be pre-approved before starting their search, not just to avoid wasting my time but to avoid wasting theirs. Buying a home is an emotional process and not being able to get the financing in place to purchase that home they just fell in love with is tragic. As a professional consultant, I owe it to a potential client to give them advice that is in their best interest and it's irresponsible to work with a buyer who doesn't know how much they can afford." Brent Fraizer, Kansas City, MO
"Respect is a two way street. This agent's approach invites the consumer to disrespect the agent. It sends the wrong, and very unprofessional, message. Why not grab a billboard and announce...I Don't Care If You Waste My Time...JUST CALL 1-800-USE-ME NOW!!!" Judi Bryan, Bloomingdale, IL
"Yes, why don't we all drive unqualified, uncommitted buyers around for weeks so they can write an offer at someone else's open house, or have their long-lost cousin from the hinterlands write it for them. Disrespectful? Where does a lack of respect result from a sincere desire to form a professional and mutually beneficial business relationship? I am all for folks helping the industry grow toward professionalism. Methods like the ones she proposes will only lead us backward." Jack Harper, Brentwood, CA
"Where I think she missed the boat was that it isn't being nosy to ask for some basics, it is business. And it isn't WHAT you say as much as HOW you say it. I have listings on houses I've never seen because it's about building trust and rapport. I wonder what her net is after paying expenses like gas." Paula Bean, Orlando, FL
As Judi Bryan said, respect is a two way street. To ask a prospective client for financial qualifications and a willingness to make a commitment during an initial consultation is not "disrespectful". It's professional. How sad that few agents dare to ask a prospective client to sit down for an initial consultation and explain how they work but rather run a free taxi service, spend their days putting warm bodies in their cars and run up gas bills, working for consumers who believe that agents are supposed to work for free.
They believe it for a reason - as an industry we shout it from the rooftops: "FREE CMA!" "MY SERVICES ARE FREE UNLESS YOU CLOSE!" We have shouted it for so long that we have stopped asking why our precious time and the expertise that comes from years of experience has no value.
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Paula Bean
Terrific viewpoint from all sides of the fence Mollie. The only thing I'd like to add to your comments is this:
I have had some medical issues lately, got sent to a specialist, called to make an appt, and guess what the first thing they wanted was?
My insurance information to make sure they would be paid for their services.
I file taxes, and guess what they want? Money for their time and expertise
I go to the store, buy groceries, and guess what they want? Money or a credit card or a debit card, again, to make sure they get paid for the goods I purchased.
WHY IS THIS SO HARD TO UNDERSTAND?
If agents want to do pro-bono work, that is fine, attorneys do it all the time, but it is usually a high profile, PR case that will get them in the news ;-) and then again, some are just good people.
It costs me approximately $10K a year to stay in business. I have expenses, gas, web sites, time, etc. so it should be a choice if we want to work free, not a demand. I have a son I'm putting through school, I have a mortgage pmt, power, etc. I do this for a living, not a hobby.
From what I understand if this agent thinks that we should just do everything FREE, she is probably a 'hobby or new agent' person, otherwise, she could not afford to stay in this hard business we call real estate.
I see the REALTORS job as an educator because most consumers don't buy or sell that often, they don't know the market like we do, and we have the expertise to help them. If others want to do it for free......well....we've all heard that story, you get what you pay for. Not to say that I don't do pro-bono work, but it is a choice, a community service, NOT a requirement.
Paula Bean
Orlando, FL
Richard Burke
It's amazing that a professional would put personal time and effort, along with out-of-pocket expenses, into a transaction that costs hundreds of thousands of dollars without qualifying their prospect. These people are not good salespeople, let alone consultants. The problem might be training, or the lack of it. I fault their broker or company policy for the mistake. Any company that would advocate less than a minimum standard of competence for their salespeople isn't planning on sustained success. Professional salespeople, yes we are some of them, earn some of the highest income in America. They don't get to that level by taking a defensive attitude toward professional training. Part of the reason that I suspect is in the background details. The fact that many of these folks don't have a clue as to how to analyze financial data for qualifying and don't want to seem ignorant or expose their lack of training to a client. Though many successful Realtors put together a great team of people to qualify every aspect of a transaction, these folks didn't go to class that day and forgot to ask the top producer for their notes. To ask for the order and get a buyer's commitment is sales 101. I think its interesting that someone would take such an embarrassing stance, and then others to chime in celebrating mediocrity. I wonder how their brokers feel!
Cynthia (CJ) Sleppy
Is it just me or is the fact of the matter that when we fail to ask for the financial credentials of buyers up front we are failing the Sellers who have placed their trust in us to protect their rights and safety (and by the way, they have done so in writing, thereby creating an absolute Fiduciary relationship)?
One of the most important trust pledges that we make when we take a listing is that the buyers that we bring to their home will be actually able to to purchase that property if it suits their needs so that we are not wasting the seller's time and energies nor are we exposing them, their family and their property to those who may have malicious reasons for wanting access to the property.
How many transactions fall apart because "Buyer fails to qualify"? How many "buyer fails" would occur if:
1) agents would respect their buyers by asking the tough questions needed to qualify them properly,
2) respect their sellers by making as certain as possible that the people viewing their property and writing the offer are actually viable,
3) respect the other agents by not wasting their time and 4) not disrespecting the hard-earned knowledge, education and experience of all the agents who are proud to be members of such an important and honorable profession.
These professional agents are more focused on serving and protecting those they work with than they are about being too embarrased to ask simple, matter-of-fact questions about what the whole process is about - financial investment - how can anyone possibly discuss any aspect of an investment without knowing the finances of the person looking to make the investment?
Does it also not occur to people that think asking potential buyers about their finances is "disrespectful" that the housing crises that is traumatizing the entire economy is, in large part, due to the fact that buyers were not properly qualified to make sure that they could not only afford the home in the beginning but also in the long run?
I think the time is long past-due for people to realize real estate is not about "selling houses". Real estate is all about the advantages or disadvantages of investing in a particular "portfolio" to suit the investor's individual investment needs and goals - oh, yeah, it also just happens to be the largest investment they will ever make no matter who they are!
We disrespect potential buyers when we make assumptions about them (assuming without qualifying). We respect them when we get the facts so that we can provide the service they need and deserve - putting their requirements above our own.
Cynthia (CJ) Sleppy
Gresham, OR