OK,
this started out as a
response to a post called, “Who
Do You Present Your Buyer’s Offer to?” by Mike Saunders,
that was apparently
inspired by one of my posts. But, while commenting to Mike’s post, I
realized
my comment was now well over 500 words and needed its own post. So, I
called
Mike and gave him permission to put a link on my post to his, and if he
was up
for it, to put his open to the public and I would put my post up in
response
for the world to see.
Mike, I can see where and
why you could think this could be a negative
thing
and your reasons area all correct… every one of them. The
thing is
though, I
lied in my post about personally presenting my offers to the sellers.
But, if I
posted what I really do, it would have taken more explanation than was
needed
in my dream of cloning
the perfect buyer.
The truth of the matter
is, and why it may change your opinion on
talking
directly to the seller: You said you were worried about
the seller
getting the
message that you don’t trust the listing agent to present the offer in
an
acceptable manner. Don’t look at is a control thing, but rather as a
relationship building opportunity.
When I show up at the
seller’s house I always wait for the listing
agent before
I ever even knock on the seller’s door. I walk in make the
introductions and we
all go to the living room where we can all be the most comfortable.
Then I
proceed to not present the offer, I proceed to present my buyers!
Yes, I present my buyers!
I tell the story of my buyers looking at the
house
and how they fell in love. I talk about their family and
how the kids
have
already picked their rooms out. I even show the seller the picture of
my buyers
in front of the house putting a SOLD sign on top of their sign. I make
the
seller realize the house they have loved all these years, will be loved
by
someone else. But, I rarely talk about the offer, when they do ask, I
hand them
the offer which is rarely an insulting offer. (I have presented a few,
but that
is for a different post.)
At this point I tell the
seller and the listing agent that this is
where I’m not
needed and I’ll go outside and let them discuss the offer
and when they
are
ready for me, or have any questions, they know where I am. I do let the
listing
agent present the actual offer, but I present the buyer. I make the
sale an
emotional one. In a multi offer situation, I can say that my buyers’
offer is
accepted 95% of the time, even when other offers are better, because
they
sellers like my clients.
Take the attitude of
presenting the buyer and not the offer. Never step
on the
listing agents relationship with their client, and never discuss
financials,
and you too will realize why I don’t present my offers to the seller,
but I
present my buyers to the seller.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - No, I don’t present my offers directly to the seller!
Thumbs up Todd. Good information and I have enjoyed your post as a Newbie in the Rain.
Todd - I was a little concerned after reading "The thing is though, I lied in my post about personally presenting my offers to the sellers." My first thought, oh my goodness, Todd lied on his post. I do always read to the end and this blog goes to show why you should give the author a chance to explain his reasoning. What a great way to set yourself apart from others.
Todd - thanks for the clarification. That is a very interesting approach. I was also worried about the listing agent feeling that I was cutting him/her off at the knees. I can see your technique doesn't do that. I would certainly get both they buyer's and listing agents buy off before doing this. And would also get the L.A. to get the seller's ok before showing up
TC,
You do it your way...!!! :) Thanks, Fran
I love that concept Todd . I do present my offers for my buyers to the sellers. But I was taught to deliver a short letter to the seller with a picture of the buyers. I then go into the fun financial. I am then told to leave the room like clock work. I will try your concept on my next delivery. Thanks...
Todd,
So much for representing the client!
"At this point I tell the seller and the listing agent that this is where I'm not needed and I'll go outside and let them discuss the offer and when they are ready for me, or have any questions, they know where I am."
I'm still impressed, but only because it's more than most do. What a shame.
Bill
Travis - Thanks, I hope you have learned something from it.
Libby - Welcome to the rain and stick around there is a ton to learn here.
Petra - Thank you, I hope buyers feel that way and I love it when they tell their friends about me.
Mike - Never cut the agent off, they are very important to the transaction and I just want to make sure that my buyers are protrayed in the best light and make sure their is a emotional connection that makes sure my buyers get the home.
Fran - I always do, I don't want to be like everyone else. They are boring!
Paul - It is amazing when it is all emotional. The financials rarely become an issue, but sometimes even though we never agree to the pay the asking price. They are so happy to see their home loved, they don't care.
William - I hope you aren't saying I don't represent my client... I represent them very well and I get them the best deal without over stepping my bounds with them or the listing agent. If I come across as high pressure I would be sure to lose the deal for my clients... I would say that is representing them very well. How many other agents can say they get their client the home 95% of the time in a multi offer situation even if their offer isn't the best one?
I hope you aren't breaking ethics laws to represent your clients, but that is almost what I'm reading? I hope I'm wrong!
This is so not common down here that when i requested to do this on an offer last year, the listing agent had a complete cow and the seller "got irate" per the listing agent. The sellers sent me a letter stating that they did not want me to present the offer on behalf of the buyer.
You have to have listing agents that don't freak out about these things in order for this to work...
WOW! You really have the time to do that where you are? You actually have sellers who are in the same place at the same time? 99% of my offers are presented via email. I do talk to the listing agent about my buyers and their motivation but all that touchy feely stuff- ICK!!!!
Around here sellers are not that attached to their homes. A house is a house, like the offer? Move on.... I lived in my last one 28 years, raised a family, buried pets in the yard (should I have disclosed that?) and said WOOHOOO to whoever wanted the place. I could care less who bought it or why. Yes it was sold in a multiple offer situation and I went with the best bottom line, even though the agent of the "cute young couple" who offered less went to great lengths to convince me they were "the ones". I almost caved BUT I had dealt with her before and knew the deal would be a nightmare before it was over.
If your strategy works in your neighborhood, good for you. personally, the less I have to drive around town the better
One of the first things we learn when becoming copywriters is that people buy on emotion and justify the decision with logic. That's why every sales letter, web page, etc. begins with the buyer and the benefits to that buyer. Later on we present the features, proof, etc. that provides the logic.
I think you've just shown that sellers are no different than buyers - touch their emotional hot buttons and you've made the sale.
Great post - and a selling method that is no doubt helping you rocket to #1 in your niche!
I'm intrigued by the variety of comments you've received here...
Thanks again,
Marte Cliff, Copywriter
www.marte-cliff.com
You have an interesting approach, and I can see how it could be of benefit to buyers. The problem here lately is that many multiple offer situations involve bank owned properties.
We used to do that on every deal 30 years ago and we could get a great feeling about the buyer from t he selling agent. With technology sometime the listing agent doesn't even present the offer in person it is an e-mail or fax and wait for a response. Maybe some of the things we used to do were better.
Wow. I think this is a great tactic to use down the road. I've presented over 30 offers in the last month and they are all done via email. Of course every one was either a short sale or REO property.
Todd,
What I've said here and on William Johnson blog is that I'm disappointed! I went on to say your approach is better than most! It's just that anyone that good could be so much better!
"I hope you aren't breaking ethics laws to represent your clients, but that is almost what I'm reading? I hope I'm wrong!" There is nothing wrong with representing your principal! I've proposed nothing illegal, Ethics is open to interpolation, I've never been accused of such a thing, but I won't have 40 years experience until the second week of November.
Our differences are small compared to most and I'm sure we both simply want better representation for buyers. I didn't mean for this to become personal. Some of my friends are transactional brokers, I'm appalled, but I know several that could represent me anytime.
Bill
Hey Todd, I do the same thing, in regards to an emotional sale, although I do it in the form of conversation w/ Seller's agent as well as written letter to the seller. It is super successful for my clients!
Melina - That is a shame that the agent reacted that way and if they don't have it in writing they have to let you present your offer if you request it. That is probably why he was so mad, he had a day job and didn't want to take the time off from work.
Denise - We are a smaller community and I really don't have to drive more than 20 miles to present an offer. Had that person been a little more convincing on selling their clients you may have given them the home... It really works!
Marte - Exactly! Sales are very emotional and once you figure that out your sales will go through the roof!
Christine - I don't personally present on short sales or bank owned properties, because with them it is really all about the bottom line!
Todd: I like your approach very much. With that said... I am very surprised that you, when you have an offer, are able to meet with the seller (with the listing agent there, of course) and actually present the offer to the seller. When I was a Realtor in Ohio before moving to Texas... I always presented my buyer's offers to the seller... again of course, with the listing agent there. It was such a big shock when I moved to Texas in 1982... and found that they do NOT do that here. The listing agent presents all offers to the seller. I never meet them, talk to them, or anything. It was really the biggest adjustment I had to make. I still do not agree with doing it that way.
Terry - I think technology really has ruined the art of the sale for many. People joke about it, but any one could work a full time job and present offers they way some are talking her... Well maybe they are!
Mike - With short sales and REOs there is no other way but to present them by fax or e-mail.
William - I didn't want it to get personal either, but being told that I'm not representing my clients seems crazy. What do you do that represents your buyers? Do you only present full price offers send the fax and hope for it to get accepted? I get a great feel from the sellers when I do this and I gather information. By being there I can react to any questions or concerns they have about an offer immediately so they don't lose the heat of the moment and we get the deal. The fear of loss is a huge sales tactic.
I'm confused by some of the comments and would love to hear how you do it rather than just being told my way is wrong.
Marian - If the seller is from out of state, I do send a letter with pictures and numbers to back up the offer.
Karen - I'm glad I do it the way I do it, it does the best job for my buyers and gets them the best deal because I'm presenting them in a positive emotional light that gets the sellers connected with the sale and they want to see the buyers get the home.
When I first started there were far more buyers than sellers. Generally speaking your offer had to go into the stack with the listing agent. Now all the homes are owned by the banks. Perhaps I should go by Wells Fargo and talk to a teller :) What your talking about is old fashioned real estate which I was told about by a trainer, but have rarely seen.
Hi Todd- Well, I see you've been busy. We all do what we think is best for our client, and reading your comments it appears presenting isn't accepted in some areas. Since Real Estate is local, we should know what works best in our area and do the best we can with our local customs.
Gene, Same here... this was funny, maybe I can go into a wells Fargo and talk to the teller : )))
Yes good luck trying to find an owner to sit down with in Phoenix these days/ most are REO and Short Sales. on a short sale the less touch feely the better. the sellers are already upset they have to let it go and to have someone else enjoy it and raise their family there white the seller's kids have to relocate I think is pushing a button too hard....
I just stress that agents representing buyers that are looking at short sales need to have had a few done themselves and be less hissy about the process towards the listing agent. if you come across as being a complainer than I will not want to work with you or your buyer as I know you will not be dedicated to the process.... if the home is in good condition is Worth the wait as you will get them a home in a much better condition than a trashed ABANDONED REO'S. Just make sure you write an offer that can be backed up by a BPO value for the area. I have to write a blog about this subject.
There are times that I, too, present my client to the sellers. However, I am finding, in today's Florida market, that I am presenting more and more to a listing agent on a short sale or foreclosure!
Thanks for ideas to implement when actually doing a "regular" sale!
Interesting approach and sound like its very effective.... Not sure one size fit all and we need to be flexible depending on market conditions. However, if it's not broke don't fix it.
I loved the idea of presenting your Buyers, before presenting your Buyers' offer. It is customary here to present all offers through the listing agent, not to the Seller. But I will still use the idea of presenting the Buyer, along with the offer. Great post, great discussion.
With fax, phone, and email as well as distances, traffic, and schedule coordination, the timeliness of the offer is more important than the style of presentation in 99% of the cases in my opinion. Most Sellers just want the bottom line and don't care so much about the buyers. For the few times where that might have an impact, a personal letter from the buyers would be just as effective. In a Sellers market, the personal presentation approach also might be more effective, but when the buyer is more in the driver's seat, a less personal approach could actually be more beneficial to your negotiations in my opinion.
When I was an active Realtor, the only way I would present an offer for a Buyer was in person, with the Sellers present. It wasn't always possible, but usually it was. And there is no question in my mind that I closed more deals this way because I was selling the sellers on my buyers. In the absence of a face to face, I would at the very least present a well-written, heart warming letter to the sellers.
Today, I have gotten away from being a Realtor. While my wife and I were seeking to buy our home, we made sure our Realtor understood that any offer we made had to be presented to the Sellers IN PERSON by our Realtor. If the Seller's agent refused, we would rescind the offer. Simple as that. We determined that our best shot at getting the deal we wanted was selling the seller on us, not just the offer.
Great post, Todd.
Selling a home is almost always an emotional thing - so presenting and introducting the Buyer's who will also enjoy the home makes sense. Then there's a connection.
Wow, excellent post! Preset your buyers! This is a very big thing with sellers. I have been on that end many times and also sat with relatives to whom,"who the buyer is" ended up being more of a factor than I would have thought. Cold heartless guy that I am.
All selling is a "transference of feeling."
Thanks Todd Clark!
Well done Todd. I am really impressed with your approach. Human factor - this is what is missing in our business.(Lets exclude the REO's where the Listing Agent is the Door Keeper and you are at his/her mercy wondering if your full price offer will be even submitted to the Bank/Owner, or if you even have a chance for your offer to be looked at all, since they do have their cronies lined up to snatch the deal for a lower price). Years ago (over 19 years in business) we were presenting our offers face to face. I was in the similar situations in multiple presentation when my offers were accepted, even though they were lower than competing offer. The reason: I introduced my buyers as a real people. With the technology taking over (not that there is anything wrong with it) we have less and less of human contact. In my area, nobody presents offer in person. When you ask for a meeting to present your offer, you are treated like you are from different planet (evolution - agents licensed for 10 years or less are not aware that this is how we did business). I am very fortunate to be associated with the office where people come first and than the numbers and dollar signs. Halina D. Kraszewski RE/MAX Suburban Mount Prospect, IL
Todd,
I've been reading your blog from Buffalo, NY for months now and this post made me make my first comment on AR ever. Great idea. I always wondered how the presentation of an offer to a seller was handled by a buyer's agent, and now I know. That is real relationship selling, which is what I strive to do.
Thanks for the super post and please keep it up.
Ryan
WNY Metro Polis
Buffalo, NY
Born in the first half of the last century (barely) as my daughter sometimes points out I can be rather set in my ways. Todd and I talked this morning there is very little differences in our positions that can't be explained by Todd's partial pragmatism! Now practical pragmatism, doing the doable, is a virtue I support.
If I were in the field everyday as Todd is I'd be pragmatic too. My current clients consist of a law firm and a designer. My real estate investment students and opportunity buyers are prepared to walk away from any one property, something the average home buyer isn't. I'm also a consultant not a real estate agent. I have the luxury and the ability and the obligation to raise the bar, that's not always practical when representing a single home buyer.
Placing an order rather than negotiating has become a common practice, many agents see attempts to present your offers as annoying, inconvenient, and embarrassing! Todd's approach eliminates the perceived embarrassment. It is both practical, pragmatic, and better than most.
Bill
PS: Thank you Halina! "agents licensed for 10 years or less are not aware that this is how we did business"
William, I really enjoyed our conversation this morning and I'm glad it was just a problem with what we were both trying to say via our witting. Clearly this shows why it is so important to meet with the buyers and sellers in person and not do everything via fax and email like so many do today.
If you are in front of the buyer or seller it is a lot harder to have a mis-communication if you are all in the room.
I did like some of your fear of loss tactics, I may have to give a couple of them a try myself.
Gene - It works and works well and the problem of offers going in to a stack with the listing agent are the exact reason I do this. I don't want my offer in a stack of other offers, I want mine to be the only offer. But, this does not work with short sales or REO properties though.
Kathy - I'm about the only agent in my area that does this. In six years of listing properties, I have never met a buyers agent putting an offer or even closing on one of my properties.
Elena - I completely agree with buyers agents calling every other day on a short sale, your calls aren't going to speed up the bank, if I hear something, I will call you!
Debbie - Let us hope we get back to the regular sales so we can do more of this for our buyers.
Great post! In my market in Marin County, California not all sellers are banks. The best thing to do is to assess whether time is of the essence and deliver the offer via E-mail or if the emotional approach will be best suited for the situation. Our success depends on determining what the best approach is, every deal and every client is different!
Sylvie - where I come from "time is of the essence" with every offer and contract.
Halina D. Kraszewski RE/MAX Suburban
Todd - another way of doing this (perhaps not as effective, but more effective than not doing it) is to send a letter that presents the same things - and even more powerful, having the letter written by the buyers themselves.
Todd, I have been taught this for years and this strategy does work for many. Unfortunately not in my market which is primarily second home community. I'd have to drive 3 hours away (or more) to meet with the sellers most times!
Debbie - You just can't do this on a short sale or foreclosure unless it is a community bank.
Mark - It isn't broke and I certainly don't plan to fix it!
Margaret - I can't think of another agent that does this here either. I've been listing properties for 6 years and I have yet to meet a buyers agent on any of those transactions.
Don - I'll take my 95% success rate and call it a day!
Daryl - I know this great agent in Oregon that will do exactly that for you!
Ed - That is what I think, I think a lot more people have a connection with their home than they realize.
What a novel idea Todd. I have never asked to do this, nor has any Realtor that I have ever worked with but I can see that it might work in certain situations. If it produces great results for you, kudos to you.
Ed - Exactly, sales are emotional buying or selling something as personal as a home. But, people haven't figured that out yet.
Bill - I think I have converted a couple listing agents to my way of selling after they see the reaction of the sellers on offers that they thought the owner would have said no to if I had just faxed it over.
Halina - I'm one of those licensed for less than 10 years but I've been told I have a very old soul. I guess that will go with my 1951 Chevy DeLuxe when I start driving that around for real estate.
Ryan - WOW, Thank you, you don't know how much that means to me that this post touched you in such a way that it made you comment.
Todd,
That's great news, because it's head and shoulders better than most!
Keep after them it's a big step forward for them and I'll work on getting you to make the final step! o:)
You've got to love blogging. Almost every comment, every partisapant makes the blog better. This one is easy because they had a good start.
Bill
I still have mixed feelings about this. As a listing agent, I've seen buyer's agents rub my clients the wrong way at the outset. I've had circumstances where the sale is due to financial strain, divorce, and I think in those situations I've recommended an agent not present in person. There's a significant amount of strain already and the seller's feel an exagerated need for privacy.
I had one buyer's agent absolutely insist and that abrasiveness troubled my seller so much, they went with another offer, even though her buyer was a slightly better offer.
I think it's a great idea to offer to present but allow yourself to be open to presenting the buyer via letter if circumstances call for it. I'm not sure there is one right answer here.
Steve - Here all offers, time are of the essence, but I do everything to get in front of the seller ASAP!
Halina - EXACTLY, you beat me to it! (LOL)
Sharon - I have done the letter thing a few times if the seller is out of state or the other agent says there is a language barrier. The letter can be translated by the other agent and I have them initial it with the rest of the offer.
Sonya - I could see why in a 2nd home market this approach wouldn't work, heck I don't even think the letter would work. Their is no emotional attachment to most vacation homes.
Kelsey - I've never had another agent ask to do it to one of my sellers either, but that is fine, that is what sets me apart from the competition.
William - We will talk about that final step... Still not sure I can do all that we discussed, but some... YES!
Linsey - I'm a very laid back type of person and I've never had a situation where I've walked away from the table having anyone dislike the way I do things or me. I can understand why you have mixed feelings, because some use it to strong arm sellers, I'm not like that, I just present the facts and do what I do to get my clients a home at a good price without crossing any lines.
Wonderful post! I presented 'my buyers' to the seller on two different occassions and it was a very successful way to benefit my buyers.
Alice or Jim - People are amazed at my results and when I take a new agent with me and show them how I do it, they start doing it also.