[photopress:diversity.jpg,thumb,alignright] I have only one criteria when choosing a client. That criteria is very difficult to describe, because the best term to describe my favorite clients, I only know in the Greek language. I dated a Greek guy for six years, from the time I was 16 until I was 22. Whenever he introduced me to his Greek friends and relatives, they would lightly and quickly thump their fist on their chest and say
“kalu ka thYA” (emphasis on the YA). Generally, they were saying, “She has a good heart.”
When I meet a potential new client, I am actually interviewing them to determine whether or not I want to work with/for them. This can be a great business or it can be a miserable business. The difference between the two is the clients one chooses. Agents who view all people as “leads”, who think anyone wanting to buy or sell a property is a “potential client”, do both themselves and the client a great disservice.
My talents are best suited to people who need my “help”. To sellers who need to sell their home at the highest price they can get, and who are willing to roll up their sleeves WITH me, and get the house to its highest potential, spending little or no money to do that. To buyers who recognize that there are many potential pitfalls in the home buying process, and who want someone to tell them when they are about to make a mistake.
[photopress:winner.jpg,thumb,alignright] I have very little time for someone who wants to end up with all of the chips on their side of the table when the “deal is done”.
I have very little time for a seller who thinks his house is ready, because he shouldn’t have to do a thing to get top dollar and he can wait for “just the right sucker” to come along and fork over more than the home is worth, so HEcan WIN and THEY can LOSE.
I have NO/ZERO time for a buyer who wants to find some little old lady who can be tricked into selling her home for a great deal less than it is worth. (Yes, I have met people like that.)
All of of my clients are people raised with good values and who have a strong moral code, in other words…people who possess “kalu ka thYA”…”a good heart”. Once in a blue moon, I agree to represent a total bastard…but only because I feel sorry for his wife 🙂
So when a buyer or seller complains, “I guess they didn’t NEED my business because they never called me back after we met”, maybe the agent didn’t “follow up” because the agent chose you, not.
I think this is genius. We have never done business with people we don’t trust, and we’ve learned the hard way not to get involved with people we don’t like. Our client base is hugely diverse, and we love that we get to really know so many different people. But if something in ths gut says, “Just how badly can this person behave?” — we run away. We want to love what we do, and to have relationships with our clients forever. Plus, we don’t need the money so much that we’re willing to risk getting sued.
Well written Ardell. I posted about your article today, directing my visitors to check it out.
This was a hard lesson, unfortunately learned through experience for me as well.
Well written Ardell. I posted about your article today, directing my visitors to check it out.
This was a hard lesson, unfortunately learned through experience for me as well.
I think it is a shame that new agents are taught how to spin their wheels, and not how a “business plan” is really done. Before you can “start your own business”, (which is what every single real estate agent is doing whether they realize it or not), you have to define your product, who you are selling it to, and why.
My product is “full service”, real full service that doesn’t come with a list of what I am going to do. I’m selling it to people who both need it and deserve it.
When I get too old to do what I’m doing…and I’m getting there :-), maybe I’ll teach a class on representing buyers and sellers well. It clearly is “my passion”. I also never get tired of looking at structures. Which reminds me…I never did go to that “new library” downtown. Maybe I’ll go there when my kids are visiting next week.
Ardell,
Your aspirational view toward working with clients is very sincere and well-intentioned and I applaud it. Based on a pure numbers look at your business, however, it seems like the real world looks much different.
In 2005, there were approx. 7,000,000 existing home sales in the US. The avg. selling price of those homes was 220K. Let’s assume an avg. commission of 5% and let’s also assume that a commission was paid on all of these homes (ignoring FSBOs). That results in about $77 Billion in commission dollars (I think the real number is south of this figure but what the heck).
According to NAR, there are 1.2 Million Realtors in the US. Of this number, a certain small percentage are commercial folks, maybe 10%. There are also many (like you) non-Realtor licensees so let’s add back 10%. There are also many part-timers so let’s take away 50%. This gets us to 600K licensees who are actually trying to make a go out of this business as their chosen career. Lastly, let’s assume an average commission split of 70% to the agent.
If you do the math, this results in average annual gross revenue of about 90K per agent. Now, let’s subtract 20% in expenses (just a wild ass guess here…you would know better than I) and 15% self employment tax and we end up with gross income (still subject to income and regular employment tax) of about 58K.
Now, imagine you are that 58K a year agent who sees an opportunity to work with a real live buyer or seller who, notwitstanding their sleazeball persona, WILL generate a commission at some point in the process. Hmmm, let’s wait a nanosecond before the decision is made to subvert values in favor of the cash to make the car payment.
Isn’t this the real life situation for many agents, especially those that have entered the business in the last few years. Now, imagine a slowing market and fewer sales…..
Russ
Ardell,
Your aspirational view toward working with clients is very sincere and well-intentioned and I applaud it. Based on a pure numbers look at your business, however, it seems like the real world looks much different.
In 2005, there were approx. 7,000,000 existing home sales in the US. The avg. selling price of those homes was 220K. Let’s assume an avg. commission of 5% and let’s also assume that a commission was paid on all of these homes (ignoring FSBOs). That results in about $77 Billion in commission dollars (I think the real number is south of this figure but what the heck).
According to NAR, there are 1.2 Million Realtors in the US. Of this number, a certain small percentage are commercial folks, maybe 10%. There are also many (like you) non-Realtor licensees so let’s add back 10%. There are also many part-timers so let’s take away 50%. This gets us to 600K licensees who are actually trying to make a go out of this business as their chosen career. Lastly, let’s assume an average commission split of 70% to the agent.
If you do the math, this results in average annual gross revenue of about 90K per agent. Now, let’s subtract 20% in expenses (just a wild ass guess here…you would know better than I) and 15% self employment tax and we end up with gross income (still subject to income and regular employment tax) of about 58K.
Now, imagine you are that 58K a year agent who sees an opportunity to work with a real live buyer or seller who, notwitstanding their sleazeball persona, WILL generate a commission at some point in the process. Hmmm, let’s wait a nanosecond before the decision is made to subvert values in favor of the cash to make the car payment.
Isn’t this the real life situation for many agents, especially those that have entered the business in the last few years. Now, imagine a slowing market and fewer sales…..
Russ
Welcome back Russ! Your “comment” was so long that I answered it HERE.
Ardell, I’m glad you wrote about this topic because it needs to be said. Yes, many realtors are hungry for business because we are often hungry to pay our bills, our mortgage and eat regularly. But one of the reasons many of us enter this business is to do it our way rather then be dictated by someone else’s values and beliefs.
I was part of the high tech industry for many years and left so that I could envision my own business and run it as I saw fit. I want to work with those people that care about community, care about the home they live in and plan to grow roots in their neighborhood even for a short period of time.
Often we find buyers and sellers who are not about the home but are about winning, feeling like they beat someone out and are superior. These are not the people I care to work with. Neither do I want to work with people who feel they are always the victim and must screw someone else over before they might get screwed over themselves.
Realtors like everyone else must think about their intentions and integrity or we will get lost among all the scrambling for clients and loose the motivation for being entrepreneurs.
Phoenix,
First, LOVE the name. Second, I can tell from your website that you are one of the “good guys”. Some of my best friends are Realtors 🙂 Hope to run into you somewhere.
Pingback: The San Diego Home Blog » Blog Archive » Now Accepting Applications
Pingback: sellsius° real estate blog » Blog Archive » Real Estate How To Links
Pingback: Seattle’s Rain City Real Estate Guide » How to List a Homicide-challenged Home?