In this season of low inventory, high buyer demand, unheard of low interest rates, and COVID regulations…your job as a Realtor certainly hasn’t gotten easier, I’m sure you’ll agree.
Sure, it’s great to have online leads pouring in as people have increased pressure placed on their timelines and life goals. Your sphere is hot to move, and new Actives indicate Pending Status almost before you even have a chance to pull up the listing on your new Matrix app. From the outside, it probably looks to consumers like we in the Real Estate industry are riding out the pandemic like it’s smooth sailing on a sunny day, but if you’ve listed a property or submitted an offer lately, you know that it can feel much more like riding out a dark storm in a rowboat with one paddle.
Of course, there are the usual challenges and struggles…timing your listing to take advantage of the hyper-local market, watching the Coming Soons constantly, and working 24/7 to avoid missing anything…but the current global environment is really piling it on in addition.
You have to be even more aware and organized than usual as a professional today.
It’s up to you to ensure that your clients are following CDC recommendations and State requirements, which change constantly.
You have to manage tight scheduling issues that sometimes mean being limited to a 15-minute showing window.
You have to be ready to write competitive offers, quickly develop rapport with co-op agents, and prepare your clients for possible rejection.
And you have to do it all while wearing masks + gloves on 100 degree days.
First of all, thank you for being the diligent, ethical and well-meaning professional that I am sure you are.
I also wanted to take a minute to talk about a trend I’m seeing as an Employing Broker that I have not experienced in almost 20 years in the business, and ways to avoid a probably stressful, potentially litigious situation which seems to be coming up more + more often: Client/Agent disputes.
Over the last several weeks, I’ve heard about from other Employing Brokers or advised on situations that seem highly unlikely, but, because they are happening more and more often, are worth addressing - situations where Clients terminate Exclusive Agreements while in the middle of a transaction, or ask that a Contract be re-assigned to another Agent because the relationship has devolved.
What the heck, y’all?
I have a couple theories about why this is more common than ever before:
Because of the COVID environment:
Are you signing Exclusives with people that you haven’t really had the chance to get to know because of time/space/distancing limitations? In a non-COVID world, the process is fairly intentional + systematic, and it works. Whether you managed to convert an online lead or received a referral from a friend, fan or family member, you likely arrange to meet at the office, or at a coffee shop…maybe even cocktails or a long lunch. You get to know one another, feel out the connection, decide if the vibe works. Then, it’s a mutual agreement party - they want to work with you, you want to help them make their Real Estate goals come true, thinking that maybe you’ll even become friends or at least enjoy the next 90-120 days of fairly constant interaction.
Usually, you get to tighten those bonds as you drive around together looking at homes, or pore over comps and prep their home for sale. You might text, talk, or spend time together several times a day while going through this process.
How different does this process look for you now? Is it more rushed, with the pressure of rising COVID numbers or fears of another shutdown? Is it more limited, because you have to stay at least 6 feet apart, and maybe you’ve never even seen each other’s faces unmasked? Are you still getting to know your clients + create a true bond, or are you just rushing to get Under Contract?
No judgement, by the way…I’m truly wondering if these barriers are changing your process, and how those changes might be impacting the strength of your Exclusive Agreements.
Because of low interest rates + low inventory:
Even though Sellers have been in the driving seat for many years (maybe even for as long as you’ve been in the business) there is a new level of desperation and urgency that has a different scent. And it sometimes…stinks.
Because Buyer demand seems to be increasing along with major life changes, listings that show well online and are priced appropriately are seeing unprecedented levels of activity. Over the last couple of weekends we have seen unique properties receive hundreds of showing requests. Listing agent phones blow up with questions and demands for information. The pressure is on Buyer agents to score their clients a showing appointment, and we’re seeing offers submitted prior to property viewings even beginning, contingent on Buyers being able to walk through their future home.
In addition, with interest rates consistently dropping, Buyers and their lenders are anxious to find the perfect place and win a contract before their rate lock expires.
What does this mean for you as an Agent? On the Buy side, the challenges are obvious. But being a Listing Agent right now isn’t all rainbows + unicorns, either. It’s up to YOU to vet the offers, to help your Sellers decide how they would like them presented, and to ultimately assist in choosing the offer that makes the sale smooth and hopefully has the best chance of making it to the closing table without an abundance of hassle.
Are you able to keep your clients satisfied throughout these complicated transactions? Are you figuring out the best style + pace of communication for each person and their situation? And did you get to know them well enough prior to the Contract stage in order to do so?
In some of the situations that I mentioned earlier, I seriously doubt it. When a Client/Agent relationship devolves to the point that I’m brought in…it’s usually pretty ugly. Whether mistakes were made, miscommunication occurred, or emotions are just so high and the stakes so big that trust is broken, it’s rarely as simple as just canceling an Exclusive.
Once you’re Under Contract, this becomes a very complex and expensive problem for everyone.
So, how do you avoid it?
No matter what role you are in, take deep breaths. Move a little more slowly. Control the process. You’re the expert here, so you might as well own it - because you definitely own the liability, every minute, every move, every conversation, every document, every transaction. Read and explain everything twice, sign once.
Don’t let other agents bully you into rushing your clients, into violating due process, or into breaking Clear Cooperation policies. Do what you say you’re going to do, and put your clients and their protection first, every time.
Put a ring on it. When you ask someone to sign an Exclusive Agreement, you’re asking them to trust you more than they trust Google, rely on you to navigate the tumultuous world that is Real Estate today, negotiate on their behalf, and get them home. If you can’t picture yourself handing them the keys on Closing Day, and taking a happy photo with them in that silly Title Company photo opp frame, or if your gut is telling you no, then let them go before you go any further, refer them out, or nicely tell them you don’t think you’re a good fit for their needs.
Double down on communication. Follow up important conversations with a confirmation email. Facetime or meet instead of calling if you can, so that you can not only hear what your client is saying, but you’ll see their body language and facial expressions, and ensure that you’re both paying 100% attention to the conversation, and have greater recognition of understanding.
As a Buyer Agent, take the time to develop rapport with the Listing Agent you’re trying to work with to put a deal together. Communicate clearly. Promise to make the transaction as smooth as possible - and deliver on that promise. Most of all, offer some extra space + grace with every interaction…because they’re just as stressed out as you are.
As a Listing Agent, commit the time needed to completely and thoroughly evaluate the entire offer and its players - not only the buyer and lender, but also their agent - and their relationship with their clients. It’s OK to ask how long they’ve been working with this client, how many homes they have seen, how many other offers they have written and terminated, and even how they met and how well they know them. Sure, any kind of relationship can go sideways, but it’s more likely to happen if the answers to those questions are “I just met them this morning, they fired two agents before finding me on the internet to request this showing, this is the only house we’ve looked at, and we haven’t even signed an Exclusive yet.”
Some red flags in there, yes?
Our work is always important - we’re helping people with what is likely the biggest investment of their lives, as well as the roof over their heads. But right now, it feels more important than ever to do it right, every time.
Commit to serving your clients at your highest level, every time - or don’t ask them to commit to you in the first place, and for goodness sake, don’t submit a contract for them without being sure that you’re all in it together, for the duration.
