Transcript:
Hello. Andrew Fidler with LaPlante Real Estate coming to you as always from Toledo, Ohio.
Most of my videos are based on property management and property management theory investment theory I wanted to take a moment to share sales theory
If you are in a position of sales and I’m not even saying pure realtor real estate sales. If your job is to sell a car and I as the buyer – which I’m clearly referring to an experience I just had in the last 24 hours – if I as a buyer dial you up and you tell me that the pricing manager the approval manager over top of you will not come down on the sticker price of the car, in fact, he’s going to put a profit on top of the car and then I’m gonna have to pay that as well and I probably should go somewhere else to buy a car you’re not a very good salesperson. You literally have closed the door on that transaction.
In this example, I as a real estate agent passed an offer over to an agent and then I always text message the agent on the side. You send over a digital purchase agreement, but you follow up and say “hey, I’m Andrew. I’m a real person, easily approachable, very simple for you and I to have some conversation on the backside. And this agent literally, there’s no pop there’s no parts about it, they stated that my offer was declined and it was declined because the seller would not come down from asking price and the seller additionally would not pay commission so then my buyer was gonna have to pay commission like this was some kind of a wholesale off market deal which it better be so great that we can’t wait to get the deal so the commission could be added on top that’s not the case here.
If anything this property has been sitting on the market for 120 days and ultimately we have a salesperson, a Realtor, who is disgruntled and unhappy with their customer. They need to bring themselves to fire their client. They either have to adjust their client’s expectations or terminate that relationship otherwise you’re going to have what happened to me where I am told this is declined and this will never go anywhere.
Back on that analogy, the car, if you wanna buy the car, you better go to another dealership you’re not buying it here. And do you know what happened? As of this morning, when the realtor took the offer and handed it over to their client, they came back and said well they’re gonna come down five thousand and they’ll pay the commission. And unfortunately they already damaged the sale. I with an obligation to my client immediately passed back and said “hey, we’ve been declined. It will not be this and you will have to pay all the commission so you’re gonna have to take and add that onto the purchase price. This is a stupid deal. I’d walk away from the property” and I already guided my client to walk away from that deal.
So bad decision on the side of the salesperson. If you are having challenges in your job right, in this case, it’s a contractual relationship but if you’re having problems with your client you’re having problems with your boss and your job you need to bring yourself to be able to leave that relationship. At LaPlante Real Estate we try to keep our personal finances and the company finances as well to hold power on the word no.
If you’re trying to make ends meet, if you’re stretched too far, you lose the word “no” because it’s gonna cost you too much to lose that revenue, which also means you’re going to be doing jobs for people you don’t agree with, you don’t appreciate and they don’t bring the best out in you.
This event here was just a bad experience all the way around I don’t anticipate this property will end up closing, but I wanted to take a minute and just point out a simple relationship. It’s just a human interaction, societal relationship. If you don’t think a deal is going to go through and none of it makes sense, that whole sticker price, and then you gotta pay a bunch of money on top of the sticker price when all of us walk in and we get a little bit below the sticker price that doesn’t make sense.
So what should have happened in that case was the agent should have kept quiet. They should have gone and seen what they could do. I mean all they really had to do was write me back last night and say “hey, I’ll present it. Thank you very much”. They could have come back and said “hey, we’ve had a lot of activity; it’s a very tight market”. That’s stuff we hear every day. It was the additional detail that did not help the relationship and that I want each of us in any role that we’re in to keep that in mind.
Have a great day. Thank you for your interest in the city of Toledo and your focus on real estate and your trust in LaPlante Real Estate. It was just a good teaching moment so thank you.