Firing a real estate client
In the utmost of seriousness, Firing a real estate buyer or seller happens. It happens by the real estate agent who has “had enough”.
Most, if not all, Realtors will work with most clients. Those real estate agents who are always looking for the “easy deals”, are not part of this equation. There are those real estate agents who only work with people buying in a particular price range, in a particular community, with a specific type of financing or clients with cash only. Those agents are looking for the easiest deals and do not take on anything outside of those parameters.
First things first for home buyers and sellers
When it comes to working with a real estate buyer, there are several things which have to be covered up front. If the real estate buyer is using a mortgage lender of their choosing, whom I do not know, I will have to vette that lender. I have to ensure their lender is going to do what they have told my buyer they will do. I have to ask the “right questions”, of my buyer’s lender, to guarantee that my real estate buyer is not going to be looking back wondering what happened when their deposit is forfeited and after they have paid for a home inspection (approx $500.00) and the appraisal fee (approx $500.00).
Real Estate is not as simple as some proport. In fact, there are a lot of moving parts to each and every real estate transaction. Vetting of a real estate buyer’s lender is only one.
In most cases, it’s not the “firing of the real estate client”, it’s a firing of their lender who is selling them a false set of goods. They are saying “it will be done”, when it cannot. For whatever reason, the real estate lender is not going to take the bullet themselves stating, “It was my mistake, you are not going to be able to get a loan at this time, even though I told you that you could…”
It is very important that the financing is set before approaching any of the real estate sellers with offers in hand. All the i’s have to be dotted and the t’s crossed.
Furthermore, the real estate lender has to be available for the other side of the transaction. The seller’s agent and the seller’s escrow company should have an open door of communication with the lender whom the buyer is working with. Without this, a real estate transaction is a waste of time for all parties, including your’s truly.
Firing a real estate client
Hard I can do. Impossible, I can work with. Unreasonable, that is where I’m going to have to draw the line in the sand.
Unreasonable from the vantage point of buying something that has “red flags” popping up all over the place regarding the specific property. It maybe there is mold present which the seller is not going to do anything about and that most is deeper than the surface of a counter top. It maybe that the home price is too steep for the market and the buyer wants to pay the difference against what my professional opinion is rendering. Maybe the real estate client has so much loyalty with the lender, that they themselves brought to the table, they won’t fire them even if they are being misled.
I have been hired for a job. I cannot do that job if I am having my hands restrained and my opinion dismissed.
At the end of the day, I want my clients to get what they want. You should be able to buy a home, condo, or townhome of your choosing. If there are “issues” and I have had an opportunity to explain why I have “doubts” to you moving forward, I’m good with that.
However, to stifle me from being able to voice opinion number one will cause a breakdown in trust and loyalty.
Trusting in me
I am not so arrogant to think that you are going to trust me at first glance. In fact, I’d never think that anyone’s trust comes that easily. I know that mine does not and it takes a long while to get me to trust anything, let alone any person.
However, the longer that my clients work with me, the more transparent they see me to be and find out that I only want what’s best for them. I know that as long as I have a happy client, the referrals will be awesome. If I have a sad client and don’t care to work to get the happy client, I’m shooting myself and my business in the foot.
When I speak with new clients, I always comment I want to earn their trust and then eventually their business. Not the other way around. I am all about showing what I know to be the best way to operate a real estate business and to interact with real estate buyers and sellers.
The final word
Sometimes, clients, just like Realtors, need to be fired. Both parties have to move along and work with others. Sometimes these separations are not without their own fair share of pain. A lot of the the client does not know what happened, and even after it’s explained, still wonders why and feels slighted. The same is applicable for the real estate agent who is being fired. They will look back and think the client fired them unfairly and was promised a “false bill of goods” by a predatory realtor.
In all cases, separations are not easy. They are difficult. At the end of the day it’s always best to leave, not looking back. Letting bygones be bygones. I know that some clients are better fits for certain real estate agents and visa versa.
Make sure you are well protected and interview several real estate agents before deciding on one, that action will pay off BIG for you.
I’m Connor T. MacIvor and have been in the real estate representation business since 1998. During that time I have had to fire a handful of clients. In each case it was for the fact they were getting run amuck by their real estate lender, who they have more loyalty to than with me.
While I would have loved to continue to work with these clients, I found that they were okay with being taken advantage of by their lender and would not allow me to speak as to my experience and how their lender was taking them for a ride.
There was also the fact, in most cases, where the lender was not being communicative with their real estate client and where their “non performance” was going to cause their real estate borrower harm due to the violation of time constraints which had been agreed upon within contract. When a client’s deposit is in jeopardy and when the client is going to be charged money for closing the transaction late, due to the fault of a non performing real estate lender, I have to draw my line in the sand.