Are You the Worst Type of Client a Realtor Can Have?

by David on January 20, 2010 · 3 comments

in Phoenix, The Business of Real Estate

What You Can Do To Make Sure You Aren’t the Worst Type of Client and Set the Client-Realtor Relationship on the Right Track from the Start

Okay, so I am using the word ‘worst’ here in a way that doesn’t talk to the nature of the particular individual but more a behavior and expectation that often takes place when someone is looking at purchasing a home.

I don’t mean to say these people are terrible personally or dastardly, it’s more the circumstances and resultant behavior that create the following scenario.  Of course, I am excluding the rare client who can be abusive and make life hell for any Realtor (and anyone else, for that matter).

So, What is the ‘Worst’ Type of Client a Realtor Could Have?

Here is the list of characteristics of the worst client.

  • Relocating to the area from out-of-state and unfamiliar with the Valley of the Sun.
  • Brand new lead and not a referral.
  • Interested in buying a home but may rent as well.
  • Doesn’t yet know their place of employment in the Valley which is critical to point them in the right areas given potentially long commutes.
  • Has heard about the ‘fantastic’ deals in the outerlying areas and wants to see homes there (Maricopa, Queen Creek, Laveen, Surprise, Anthem, etc.).
  • Home requirements range broadly which means that there are lots of houses that could work.
  • Wants to see homes before they have a set place of employment (assuming they aren’t retiring).
  • Hasn’t talked with a lender yet (not unusual depending on the out-of-state circumstances).
  • Hasn’t yet decided what to do with their existing home - keep and rent, or sell?

Why Are They the ‘Worst’?

Unfortunately, what makes them the worst is that the level of risk for the Realtor to expend a lot of energy, money, and time is high with a lower liklihood of eventual payout than other client situations.  Part of this is simply the Realtor community’s fault in terms of the number of Realtors in the market.

It is not uncommon for an out-of-state visitor to secure the services of a Realtor (maybe even more than one initially), ask them to do some research on properties and show them some homes, only to have the clients eventually go with another Realtor that they ‘discovered’ or had referred to them.

If you think about the fact that from Southeast Chandler to Northwest Glendale (a diagonal axis) is 52 miles by car and this doesn’t represent further distances in terms of cities like Surprise, Maricopa, Queen Creek and other fringe cities, a Realtor could end up spending entire days and hundreds of miles driving around with a potential client that has a low urgency with high uncertainty.  And despite the Realtor putting their best effort, the client could very easily opt to use another Realtor for no other reason than they just made a call off a signpost they saw and asked to be shown the home by the Listing Realtor.

So, after weeks and potentially months of effort and contact, the buyers opt to use another Realtor anyway.

Clients shouldn’t be surprised if they sense a level of apprehension on the part of the Realtor when your circumstances match up with the above.  They will be cautious in the level of work they do for you early on.  They are concerned for getting burned despite their best efforts to help you.

What Buyers Can Do To Make the Realtor Client Relationship Work Well in This Case

For buyers that fall into this category, there are a few things you can do to really excite the Realtor and get them committed to helping you for the long haul.

  • Commit to using them.  Communicate to the Realtor that you are committed to using them so long as their information and help is top notch.
  • Make it clear that you understand the process of how a Realtor gets paid.  A Realtor gets paid by the Listing Realtor who has an agreement with a homeowner to sell the property.  Buyers don’t pay the Realtor for their services, the Sellers indirectly do through their Realtor - (Some will argue this point but that is another conversation).  Understanding how a Realtor gets paid means that you understand that using two or more Realtors simultaneously entails that one Realtor gets paid in the end while everyone else is left used and abused.  Realtors work on commission and only get paid when a home sale closes.  They don’t get paid by the hour.
  • Communicate with them regularly to let them know what you are thinking.  The Realtor should also communicate with you regularly.
  • Listen to their guidance and answers to your questions.
  • Be respectful of their time, especially when you don’t know the area very well.  When first searching the Valley to learn about different areas, get in the car and travel around and take a look firsthand without the Realtor.  You may find that there are wholesale cities or areas of the Valley that you don’t want to live in.  You’ll also cover a lot more ground this way.  Let your Realtor know what you are doing and thinking after these excursions.  This will further telegraph to the Realtor that you are serious about a possible home purchase.
  • Talk to a lender as to your capabilities to purchase a home.  Get a Loan Status Report and provide this to the Realtor.

It’s A Relationship That Can Be Win-Win for Both of You

Keeping these things in mind can make the difference between a rocky start in the Client-Realtor relationship and a fantastic one.  Your Realtor really wants to help you but they have to watch out for the situations that could put their time and energy at risk without eventual payout.  The ‘worst’ buyer who doesn’t understand the risk a Realtor takes on could find that they don’t get the best service and attention that they could if they made some simple decisions as to how they are going to work with that Realtor.  So, as a buyer, ask yourself what you can do to make the process smooth and enjoyable for everyone and you will find the reward is well worth any adjustment in your thinking.


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Top 10 real estate posts of the day for 1/21/2010 : Tempe real estate and free home search
January 21, 2010 at 8:12 am

{ 2 comments… read them below or add one }

Austin Homes For Sale April 6, 2010 at 9:28 am

It’s A Relationship That Can Be Win-Win for Both of You - this is the key!

Arizona Homes For Sale April 30, 2010 at 5:46 am

i Agree with you Austin Homes For Sale, if it will be a win-win for both of you it would be less hassle

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