No replacement for face time
Realtor Notebook
By Teresa Boardman, Thursday, February 5, 2009.
Image courtesy Teresa BoardmanI offer my buyers a service that is kind of old-fashioned. I present all offers on homes in person. The agents in my market who know me expect it; the agents I have never worked with are caught off guard by it. The new agents don't know how to respond so I have to explain the process.
The way it works is that I meet with the listing agent and the sellers and go over the offer. I hand the actual contract to the listing agent and I give the sellers a summary. Sellers are usually the most interested in the bottom line so I hand then the earnest money check and tell them how much my client is offering.
After that I go through the details, including contingencies and the closing date. I always wear a suit when I present an offer because I believe that the way I present myself impacts how the sellers feel about the buyers. In my presentation I always include information about the buyers and why they made an offer on the home.
When I am finished I ask if there are any questions. After the questions are answered I shake everyone's hand and thank them for the opportunity to present the offer.
The offers I get on my listings come in through the fax machine or through e-mail. It has been two years since an agent has asked to present an offer in person. Sometimes agents send me offers without ever calling to let me know an offer is on the way, and some don't even bother to follow up to see if I got the offer.
Our rules dictate that agents have the right to present in person unless the seller won't allow it. Sometimes offers cannot be presented in person because the sellers are not local. If at all possible I try to set up a conference call. With bank-mediated or bank-owned properties, offers cannot be presented in person.
Usually it isn't even possible to get proof that they actually got the offer, creating a system that is wide open for fraud and abuse.
The reason for all of this is that it adds a personal touch. The buyers become real people to the sellers, and instead of being "that other agent" I become a real person, too. It gives me the opportunity to represent my clients and negotiate on their behalf. I market the service to buyers and encourage them to ask other agents that they interview if they include the same service.
There have been times when my clients have been able to buy a home in multiple-offer situations without making the highest offer just because of how I presented the offer. I had one seller tell me after the deal closed that she wished she would have had me for an agent because of the way I presented the offer on my client's behalf.
It doesn't always work out that well. Last fall a seller wanted to throw me out of her kitchen when I gave her the bottom line. My client's offer was about 25 percent lower than the asking price. Her husband and their agent asked her to let me stay, stating that I was just doing my job.
We have a lot of technology at our fingertips and it is important to use it because if used correctly it saves us time and cuts our expenses. Presenting an offer is one of those times when a low-tech, hands-on approach might be best.
Presenting offers in person has become so rare that it sets me apart from the competition. Some of the newer agents don't even know that an offer can be presented in person -- no one has taught them how to do it.
Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog.
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Submitted by Jon Querolo on February 5, 2009 - 2:05pm.
Ok Teresa but I beg to differ. We are hired as professionals to represent the best interests of our respective clients. You can accomplish all that you state by calling me, the other Realtor, and presenting your offer and reasoning to me or with a cover letter. The concern is as you write above "...it doesn't always work out that well". At that point you have made things ugly for yourself and also the poor listing agent who was most likely blindsided by your offer. In that situation the lister would have been much better off without you there. In the 'old days' we all worked for the seller and hence we all made nice at the seller's home but we know what the buyer got (and in most cases had no clue no one worked for them). But we digress...and finally, as a top Realtor my response to any selling Realtor asking to come and meet and present to my client is by all means sure, and they I will join you, the selling agent, and go and present my seller's case/position to your buyer. Make sense? What is good for the goose, is good for the gooses.
Submitted by Marg Scheben-Edey on February 5, 2009 - 2:06pm.
Negotiating offers are part of the value we bring to a transaction. I too present all local offers in person and you are right, it makes such a difference. In our recreational market though, many of our owners live out of the area in which case they must be handled by fax. In those situations, I prepare a written and complete offer presentation that is delivered with it and, when appropriate, request a conference call. I love your idea of promoting this fact to potential buyers clients because the trend seems to be away from personal presentations. What a shame.
Submitted by konrad maier on February 5, 2009 - 2:31pm.
There is no better way than presenting the offer sitting across from the seller. You can read them like an open book and use this "inside" knowledge to your buyers’ advantage. If I am acting a behalf of a seller, I discourage the selling agent from participating at the offer presentation. Sellers and Buyers try to hide their real emotions, very few succeed! Trust me on this one! 35 years in business of selling Real Estate.
Submitted by Mott Marvin Kornicki on February 5, 2009 - 2:32pm.
Teresa~
I could not agree with you more! I've had situations where selling agents insisted on being present when the offer was presented and a few instances; it was a disaster. Often, sellers refuse to be placed in such a potentially volatile situation.
The personal touch and explaining the buyers motivation are very critical to establish a basis for the buyers offer.
The bottom line is the bottom line- whether present or not- I think that is the pivotal point.
Mott Marvin Kornicki,
Associate/Broker
www.SIBRealty.com
www.WaterwayRealty.com
305.935.3533 Main Line
Submitted by Robert A. Hulme on February 5, 2009 - 3:24pm.
That is one reason Buyer Representation was created not a long time ago. What you do and I do as well on each buyer offer, is represent our buyer in the best way possible, which should always include face to face offers with the seller. Jon begged to differ with you primarily because you take away a lot of the control the seller agent has over their client, you are doing what is best for your client.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
Loan Officer
Mortgage Xpress
www.UtahCountyRealEstate.us
www.LoansByRobert.net
801-885-2586
Submitted by Lenore & Alex Wilkas on February 5, 2009 - 3:57pm.
During the height of the real estate frenzy in our area when a listing could get upwards of 20+ offers, we still presented the offer in person, and demanded that all offers on our listings be presented in person. It is done for several reason, not the least so that the buyer knew that their offer WAS presented. How can you tell if an offer is presented unless you are there? What's to prevent the listing agent from presenting only an offer they write up? It happened all of the time. My seller's quickly saw well written offers, and could discern offers that weren't real. It was an education for them (and although we did talk to them about what to expect), until they actually saw some of the crap that was presented by agents who were supposedly skilled in our market, they and we, always could see the best offers and want to negotiate with those. Those offers aren't always the highest priced either but they are clean, well written and presented by well trained agents.
This industry has a long way to go until we get rid of the lazy incompetent real estate agents all across the country. It is our job to present and/or represent the best interests of our clients. If I can't present in person, I want to present to the seller over the phone at the time they are looking at the offer. That way I can tell my clients that I did my job and did the best for them.
Why are agents afraid of face-to-face presentations?
~~~~~~~~~~~~~~~
Lenore Wilkas
Prudential CA Fine Homes International
www.SanMateoRealEstateNews.com
www.WilkasGroup.com
650-696-2820
Submitted by michael Espiritu on February 5, 2009 - 5:11pm.
There is nothing wrong with presenting an offer to a seller as long as the listing agent is there when it happens.
There may be complexities in the offer that needs to be explained in person and sometimes the best person to explain is the selling agent.
I have had selling agents ask to present the offer and I have no problem with that. The selling agent knows that I will discuss any negotiation with my client alone.
Some agents do not want another agent presenting because they know their client will see how inept their agent may be.
When sending an offer it is imperative that you verify that the offer was received.
Michael Espiritu
Broker
Elite Realty Group
SoCal
Submitted by Mike Balsitis on February 5, 2009 - 5:32pm.
Present in person
Submitted by Diane B Aurit on February 6, 2009 - 5:36am.
Diane Aurit,
Teresa, In California where I began my real estate career in 1991 we always presented the offers to the sellers in person just as you described. It wasn't until the crazy times of the early 2000's when we were getting up to 60 offers on one property that we went to faxing them. When I moved to Lake Norman NC in 2005 I discoverd that they have NEVER presented offers in person so I write a cover letter as if it were a presentation. Perhaps I follow your example and ask to present in person!
Diane
http://BestRealEstateLakeNorman.com