Realtors’ “Free Sample” Problem
College-bound high school athletes routinely sign them.
So why not prospective home Buyers or Sellers?
In fact, having something akin to a “letter of intent” in residential real estate could fill a genuine void.
“All or Nothing”
Now, the decision to hire a Realtor can feel like a leap of faith for would-be Buyers and Sellers.
Depending on the client’s home — or the home they’re looking for — the agent might ask for a six month (or even longer) commitment.
That means trotting out an array of unfamiliar forms, walking clients through various legal verbiage, etc. (I suppose some agents simply say, “sign here!”).
All of which is why it can be tempting for Realtors to hold off formalizing the relationship until they’ve already invested a lot of time working with prospective clients.
Sometimes, too much time: I’m sure every veteran Realtor agent can cite at least one example (presumably earlier in their career) where — once they asked to be formally hired — found out that the “client” had other intentions.
Free Samples — Realtor Version
The solution (at least mine)?
Step #1 is to determine clients’ motivation, timetable, and financial wherewithal up front (for prospective Sellers, it’s making sure that they’re not underwater, i.e., owe more on their home than it’s currently worth).
Once that’s established, step #2 — at least with Buyers — is to ask for short-term commitment while we get acquainted and they have a chance to see at least a few homes with me.
If things go well, I then ask for an extension long enough to cover their home search, taking into account their price point, criteria, etc.
Signing Sellers
By contrast, working with Sellers doesn’t so readily lend itself to “free samples.”
Instead, I’m happy to spend an hour or two getting acquainted, fielding questions, and discussing the housing market generally.
Then, I give prospective clients time to do their “due diligence”: to check my references, review my credentials and track record, and — yup — check out my blog (and anything else they deem relevant) before I ask for a contractual commitment.
P.S.: Unlike many agents, I don’t offer to do free market analyses — what Realtors call “Comparative Market Analyses” — for prospective home Sellers.
In my experience, free CMA’s are usually worth — surprise — exactly what you pay for them. The way I do them takes several hours, and involves previewing “Active” homes that represent the competition.
