The story of the U.S. housing market is really a tale of two markets – a hot seller’s market where listings last less than three weeks before being snatched up and a slower buyer’s market in which buyers have the luxury of being picky and homes sit on the market for nearly two months.
That’s the picture painted by a new market study by Clever Real Estate, which found that in the ten slowest-selling U.S. markets, homes sell in a median of 57 days compared to a national average of 37 days.
Agents know the downstream effects of these slow markets; with little competition to contend with, buyers are often indecisive and pickier than usual. Some may even conduct an exhaustive, months-long home search, only to decide to wait until rates fall or for a more ideal property to hit the market. As an agent, this can be hugely frustrating, especially if you feel that the client has carelessly wasted your time or hasn’t been entirely honest about their plans. In these cases, you may have no choice but to “break up” with a buyer.
Let’s examine some tips to help with the delicate business of ending a relationship with a buyer without compromising your reputation as an agent and explore a few things you can do to limit “time wasters.”
Be calm
It’s no secret that some clients can be incredibly frustrating. Maybe you showed them a dozen homes that fit their needs and budget perfectly, only for them to tell you they were “just browsing right now.” Maybe they’ve been calling and sending texts after midnight and are angry that you didn’t get back to them right away, or maybe you found out they were talking to other agents even after signing an exclusive service agreement.
Regardless of what they’ve done to provoke a breakup, stay level-headed and unemotional when you explain why you’re initiating a separation. Don’t let things get personal, even if they may feel that way. Calmly explain why the partnership no longer works for you and wish them good luck on their home-buying journey. If you do it respectfully, they may reach back out in the future when they’re more serious about buying or refer friends and family to you.
Be honest
While it can be tempting to give a troublesome client a generic “I’m not the best fit for you” breakup talk, it’s better for you both if you go into detail about why you’re no longer working with them. There are two main reasons for this.
Firstly, if you tell them precisely what they did wrong, they may amend their behavior in the future. If they were late to showings, signaled that they weren’t serious by not being prompt in their communications, broke some specific clause in your service agreement, or were too picky or demanding, tell them that. Many clients will correct problem behaviors if you point them out.
Secondly, outlining the exact reasons you’re breaking up with them protects you from future accusations. For example, if an angry client decides to accuse you in public reviews of dumping them for problematic, unethical, or illegal reasons, you can rebut these allegations by pointing to the specific reasons you gave when ending things. For this reason, you should also strongly consider sending a “post-breakup” email to your client to create a paper trail, memorializing all the reasons you’re dropping them.
Make sure you’ve been comprehensive in your advice
Similarly, make sure you give your potentially troublesome clients a little extra attention before you decide to break up with them. Don’t leave them any openings to accuse you of negligence. Listen intently to their needs, and make sure you’ve exhausted all the possibilities of their home search before you tell them that they’ve exhausted your patience.
Protect yourself with a detailed service agreement
One of the easiest ways to avoid problems is to set expectations early and filter out troublesome clients with a detailed service agreement. Your service agreement should outline basic expectations like exclusivity, term length, compensation, and termination rights.
Something as basic as a requirement for the buyer to get a mortgage preapproval before you start taking them to showings can also be an easy way to filter out time wasters. If they violate the terms of the service agreement, initiating a separation can often be a simple matter of pointing this out.
Set boundaries early
It’s fair to say that different agents and buyers have different interpretations of what’s reasonable from their relationship. Some buyers think it’s perfectly reasonable to want an in-person showing for dozens of homes or to have their texts answered promptly at all hours of the day. Though there’s nothing wrong with going above and beyond, many agents should instead set clear, detailed boundaries and expectations about the partnership. Doing this early on can be vital to a fruitful professional relationship that benefits both parties.
Have a polished, comprehensive buyer consultation
Start your client relationship with a sit-down consultation. In addition to previously mentioned issues such as the service agreement and communication expectations, going over local market conditions and typical timelines can be a massive help in setting the tone for the home search.
Explain exactly what a mortgage pre-approval is and how to get one. Question them to find out exactly what they want from this process; what kind of home are they looking for? Why are they moving? What areas are they interested in? What have their past agent experiences been like? Let them know what you can and, crucially, what you can’t do for them as a real estate agent.
Give referrals
When you let a client go, give them a list of other agents they could use instead. Don’t leave them feeling abandoned, which can lead to anger and negative reviews. And don’t feel guilty about steering a potentially troublesome client to your fellow agents. If you’ve handled your breakup well, the client will leave with a better understanding of their problematic behaviors. By doing your job right, they may be a much better client for the next agent.
Luke Babich is the CEO at Clever Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: zeb@hwmedia.com.
