5 reasons you might not want that client

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Smiling man shakes hands with real estate agent while man's wife looks on.

04/18/2016 | Author: Editorial Staff

You know that a potential client might interview a few Texas REALTORS® before finding the one who meets his or her needs … but you may want to ask prospects a few questions in return before agreeing to help them buy or sell property. Determining their motives ahead of time can help you avoid red flags like these.

Unrealistic expectations
Think hard before accepting a listing from a seller who insists his house is worth more than the market will bear, or a buyer set on getting a bargain on a house priced much higher than his budget.

A transaction outside your experience
If you’ve never handled a short sale, managed a rental, or completed a commercial transaction, you may want to refer those prospects to Texas REALTORS® who have. You’ll save time and avoid problems—and you still can earn a referral fee. Remember, Article 11 of the Code of Ethics prohibits you from providing services outside your field of competence unless assisted by someone with that knowledge or if you disclose to your client your lack of experience.

Absence of authority
You will experience smoother transactions when those you’re working with can make final decisions. When that’s not the case, try to get direct access to the decision-makers.

Lack of motivation
Good screening questions will reveal how quickly a prospect wants to buy or sell. If that time frame is vague or long, you may want to keep in touch until the person is ready to act.

A track record of failure
If a client has failed to achieve his goals while working with other agents, ask why. His answers may indicate that you’ll get the same result.

Though you can decide not to take on clients based on factors like the ones listed here, remember to adhere to all fair-housing laws and the Code of Ethics.

Check out the May 2015 issue of Texas REALTOR® magazine, where this list originally appeared, for 52 other helpful tips to improve your business.

Categories: Business tips, Buyers, Sellers, Homeowners, Renters
Tags: texas realtor magazine, magazine, business tips, clients, prospects, buyers, sellers


Comments

Mark Ates on 04/22/2016

Unrealistic expectations - This is the one that causes me to shake my head.  Over and over again I see agents taking a listing and placing it on the market far above what the comps actually show.  The latest example was a property listed at $275,000 but actually sold for $213,000.  All for the sake of putting the sign in the front yard.  Actual outcome; agent is now viewed as opportunistic at best and incompetent at worst. Honest and truthful evaluation of a property is essential.  Perhaps if more REALTORS® would just learn to say no, we would see less and less homes stuck on the market for over 100 days.

Dick Richardson on 04/22/2016

Lack of Authority -  Lesson learned from a sale that is closing today. The seller is a busy professional and all issues, I mean all issues, were required to go through the seller’s mother. Once an item was approved, the mom would allow me to send the documentation to the seller for execution. This does not work. Too much is lost in translation and too much time wasted. Unless the seller is incapacitated, in which case you should require a power of attorney, discuss with legal, etc. insist on direct access to the seller of record.

Richard Spencer on 04/21/2016

Been doing this along time.
When a seller won’t come down to earth with a listing price.
Best explain that they will be the highest bidder.

Debbie Russell on 04/18/2016

A Track Record of Failure:  I love it!  Got a good chuckle and eye roll on that one.  Had a client whose home had been listed for sale and for lease on multiple occasions and by multiple brokers.  Although the client walked a good walk and talked a good talk at the end of the day - “half way person ruled”.  Did everything half way.  Not only did the client do half the things on the list of MUST do’s, the client did half - half way.  Nothing truly finished, nothing really right and of course everyone else to blame but self.

Scott Billingsley on 04/18/2016

Funny, but after 35 years and thousands of clients and transactions, I can come up with more than that quite easily.

Being a real estate agent is more than taking a few courses, passing a test, getting a license and waiting for the phone to ring at a big office.

It is a business and that means you are there to make money while helping others obtain their objectives.

Always do the math meaning don’t do a $20 drive by appraisal for that company that hints at future listings as they typically don’t come and if they do, they are a lot of work for a fraction of what it takes to make a profit.

Don’t take the listing on the ugly house that the guy says he has an appraisal for $1.8 million when your comps can’t get it to half of that (turned that one down 6 years ago and it is on agent number 5 now).

Think twice on focusing on corporate referrals as over the years, their cut has gone up, the commissions have gone down and the requirements have gone up making it very difficult to be profitable and they are as loyal as alligators.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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