Memorize these Commandments and keep them close to your heart:
1. There are no “real estate emergencies”: Every time an agent calls in a panic, with a deal that’s falling apart and people threatening him (or her) the inevitable “root cause” of the trouble is that the agent disregarded this rule. You are not brain-surgeons in a trauma center, you are real estate salespeople. The land is not going anywhere, in Italian the very word for real estate is “immobilaria” because it doesn’t move..take the time to sort your problems out and, if needed, seek guidance from your broker (me) when you are not sure how to handle an issue. Just because someone is shouting at you (except me) does not make a “real estate emergency.”
2. “I’m sorry, I’m not allowed to do that.”: This is a vital sentence. Stand in front of the mirror and practice saying it slowly and carefully ten times every morning along with your Tai Chi or aerobics. When someone asks you to let him use my computers in my office, or to take a listing at a discounted rate, or present a “verbal” offer, or whatever other forbidden mischief they want to embroil you in, just say, “I’m sorry, I’m not allowed to do that.” If you want to hear this done to perfection, call AT&T sometime and ask for a rate reduction or a night-time service call.
3. “No tickee-no shirtee.”: We have an agent in our office, who shall remain nameless, who is missing initials from a lease he/she worked on. The tenant was given the keys (which means, “put in possession“) for close to a month while the agent remains unpaid because we lack a complete and valid lease and walkthrough form. In sales transactions, of course, you have a settlement agent to keep you from making mistakes like this; if they do not have every last thing they need to close, there is no closing that day. In leases, you are expected to be professional. The thing the tenant (or his/her agent) wants is the key. Never, ever, ever, for any reason, give it away unless you have every last thing you need to complete the transaction. If this makes no sense to you, go back and re-read Commandment #1 above.
4. Never negotiate against yourself. This is a very important general principle you must internalize. Agents usually race to “give away” things they should retain or let go of little by little. This applies to taking listings as well as to negotiating on behalf of owners or buyers.
A more measured and careful approach allows you to prevail in a bargaining situation where blurting out all possible concessions from your side up front simply leaves you empty-handed when it comes to nut-cutting time.
Always try to get your counterpart to list all concessions it would take to “make the deal” rather than approaching them piecemeal or (worse!) simply informing the other side what you (or your guy) would OK giving up. Then when you have a full list of what it would take to make a deal, you often find some items that you were willing to give up are not a problem for your counterpart. Other items which they are “demanding” can often be whittled down by offering a tiny fraction of the items, or some of the goodies you were willing to give up and seeking a “compromise.” Patience is the key virtue and impatience costs you (or your party) money or, even a deal that could otherwise be made. You are playing poker, don’t show your cards while always asking to see the other guy’s hand.
5. Don’t be a “Weasel Enabler”: Customers are entitled to accurate and honest answers to questions about their options in proceeding under a sales contract. I expect and know that you will always give them accurate and complete information.
But many agents succumb to a kind of “Stockholm Syndrome” that benefits no one, least of all a Buyer trying to procure a property. Buyers who have not even signed an offer to purchase and who are obsessively focused on how they can weasel out of a contract they have not even struck should be discouraged from this mind-set, not humored.
A salesperson should assume that the Buyer’s intention is to actually close on and purchase the property, not start an endless cycle of “weaseling out.” If your Buyer seems to have an obsessive focus on how to “get out” of the transaction before he/she even “gets in” it would be wise to attempt either an attitude adjustment or, if impossible, to tell the Buyer to locate a real estate professional who likes “not” selling property. I am in no way suggesting you be careless about deadlines for performance of notice, simply that a Buyer needs reinforcement of the idea that he/she will is making a purchase, not deciding whether to proceed. Buyers almost always suffer from “Buyer’s Remorse” after signing a contract: a fear that they “made the wrong decision.” It is not doing them a service by pampering and promoting this natural psychological reaction to resolving an important decision. Buyers need positive reinforcement to help them attain their goal, and giving this support is a legitimate part of your job.
6. Don’t get ahead of the deal: This is a very common trap for agents and can cost you money and lose you business. This is usually a variation of #1 above “There are no real estate emergencies” but is generally the result of a misplaced optimism and lack of professional accuracy. For example, having a Buyer pay for and schedule an appraisal, an inspection or an application for condo approval before you have a complete, enforceable, fully executed (how many ways can I say the same thing to you?) contract. A counteroffer, missing one initial, is not a “contract” whether or not “everyone” says he/she/they are “agreed” on the deal, etc. As long as one or another party has not signed off on or initialed all the terms of a proposed sales contract, it is not a contract and no one is bound. (Yes, there could be a gray area if a term is considered immaterial, but avoid gray areas–get all initials and signatures as needed.) If a Seller, of for that matter the Buyer, later decides not to proceed with the transaction, there will be lots of unhappiness and claims for reimbursement of any money the Buyer spent to move the “deal” forward, such as inspection fees etc. Whether or not you explained the correct status to the Buyer, he/she/they will claim you never told them, that you “promised” they have a deal etc. Doing these things before you have an executed contract will not make things go “faster”, it will simply leave you open to complaints and demands for repayment of someone’s out-of-pocket expenses. If such claims are made and you are at fault in this manner, I will pay them myself and deduct them from any other earnings you may have coming or due. Be warned.
7. Illegitimi Non Carborundum: Every now and then you will find yourself working for an irrational, abusive or even insane Seller. The determination of how much abuse you will take in servicing a listing is up to you. Just know that you are not required to deal with an abusive Seller just because you accepted a listing agreement. If you are fed up with someone’s childish shenanigans, refer to Senior Management. We will either reassign or cancel the listing for you. Do this before it poisons your attitude for the many sane people we deal with.
8. Never meddle with another agent’s customer: Never deal directly with another agent’s customer, whether or not the other agent asks you to. This applies to transactions both with other Buy the Beach agents as well as those with outside agencies. No good will ever come of it. If asked by someone’s client or customer to accept documents, help with something etc., tell them nicely: “You did not select me as your real estate agent, you chose Agent “X”, as a professional I am required to channel all my business through him/her.” if they gripe about the poor service they are getting from that agent then tell them, “Sorry, next time please let me have your business and this will not happen.”
9. Be upfront and disclose. When you have a listing, you and the Seller are obligated to disclose any known facts that materially affect the property. This does not mean it has to be the first words out of your mouth at a showing, but at an appropriate time. An appropriate time is vague. It might be at the start of a showing if a buyer asks, “Are there any special assessments?” Your answer needs to be honest. If the seller renovated the entire unit without permits or the roof has an active leak that they painted over, the seller needs to disclose this information (highly recommended to be done on a Seller’s disclosure form), simply saying you told them at a showing is not sufficient or acceptable. If the seller refuses to disclose and you have knowledge, you are required to disclose.