Skip to content

Posts from the ‘Mastermind’ Category


WTH!?! Your Client Walked Away Over That?!?!

broken microvaveI’m trying to be polite here. The “WTH” stands for ‘What the heck”. A few weeks ago at our Mastermind session we talked about how an agent lost a deal over a relatively small item. In this case it was a $500 Ikea cabinet. As soon as that story came out others piped in about some of their lost deals too. It was surprising to see what buyers and sellers would walk away from. I put it out to my Facebook friends and got some wild responses.

One person lost a deal over a pool table when the seller was moving out of province anyhow. Another lost over a broken snow blower. Apparently the seller promised it to a nephew and buyer walked without it. Other inconsequential items included a fridge, a $100 microwave, a bookshelf, drapes and a flowering shrub in the garden. Of course it isn’t always about possessions. Sometimes it’s a technicality. I heard from one friend who had a deal fall apart because the age of the home was reported as 14 years old when it was actually 18 years old, while another deal died over a 6 month discrepancy in the age of the furnace. Another fell apart when the seller signed back an offer to close on the same date that was the anniversary of a death of a family member and was taken as a sign that this “wasn’t meant to be”.

Often the argument is just an ego thing where the buyer and seller just don’t like each other and dig their heels in but other times it is the telltale sign of something larger. Our job is diffuse the anger and turn it into a positive. Here is my example; Once I went on a listing presentation on a condo. The exact same unit on the floor directly below sold for $365k. I suggested to the seller that if we listed at $369k we might do a little better (being one floor up). The owner was insistent on listing at $379k so I thought, sure why not. It’s not wildly off base. After a few weeks we got an offer for $375k so being already $10k ahead I pressed my seller to accept. She wouldn’t. Insisted on the full $379k. We couldn’t make the deal work and the seller walked. So clearly my seller lost on a great opportunity….or did she? About a month later the seller listed with someone else at $379k and the condo sold way over in multiple offers. In effect, it turns out the original buyer lost. There is a lesson in here somewhere.

Clearly buying or selling a home is an emotional experience. Both sellers and buyers think they hold all the cards. Getting them together is the real trick. If you hit this critical impasse the first thing to do is isolate it. Is this a buyer getting cold feet or a seller who’s just not ready to let go? Knowing the true motivation will help resolve the issues. Sometimes however, people are just stubborn jerks. Other times you step up and buy them a new microwave. In the end, the buyer and the seller just want to know that someone cares. Finally, I heard from one friend who tells it like it is. His client was his wife. Many years ago she dug her heels in when there was only a $200 difference between her and the seller. The agent husband managed to get the deal together and it has been their matrimonial house for 20 years. He loves to tell the story about how she almost let the deal die over $200. Hilarious.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.


Let Me See Those Cats

catsYeah, I know, that’s a weird title for a blog, but it will all be clear by the end. I promise. Years ago I heard about a buyer who had a very unusual way of purchasing a property. Now, this was back in the days when multiple offers were few and far between but her methods are worth mentioning. She would put conditional offers on over 5 properties then start negotiating with each seller until there was only one left. Strange approach but there was some method to her madness. First she could judge the motivations of the sellers and take advantage of the weakest one. It was a strategy that worked even if it burned out a few agents along the way.

In a round about way, I’m telling this story to illustrate a problem that we will face in our careers. No, I’m not just talking about high maintenance buyers, I’m talking about buyers who will use conditions to get out of deals. As agents we need to remind buyers that when they put the pen to paper they should be prepared to purchase. This is not just an opportunity to waste time.

Case in point, a buyer buys a condo through his agent, conditional on the status certificate. The lawyer reviews the documents. As time is of the essence, the listing agent calls the buyers lawyer to get an update and is told that everything is a-ok. At the same time, the buyers brother is trying to convince him to get out of the condo deal because a sweet income property just came on the market. The buyer calls his agent and tells him to use the status certificate to get out of the deal. Sorry, no can do. The seller’s agent knows everything is good and threatens legal action. As you can imagine, the deal firms up.

So what does any of this have to do with cats? It’s not just a catchy title. there was a story in our office about a deal that fell apart because of a status certificate. Apparently the buyer had 3 cats and the building only allowed two. The Sellers didn’t ask for verification but could you imagine a different time when that could happen? “Yes, sure. I will just need some verification that you do indeed have three cats”.

Someone once said that if you put a little effort into it, you can get out of any real estate deal. There are enough places to make mistakes in a typical agreement if you look close enough. Examples of discrepancies include wrong frontages and depths or mutual driveways and other easements, wrong maintenance fees, taxes and, of course, time limits. It is in our best interests to make sure our offers are bullet proof. Changing your mind is not an excuse and your clients can’t hide behind a condition. Like wise, please don’t tell your clients they can use a condition to get out of a deal. A recent RECO complaint resulted in an $8,000 fine to an agent for leading a buyer to think he could use a home inspection to get out of a deal.

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.


Woo Hoo. I’m The Client’s Second Choice.

agent number 2
A few weeks ago, at our regular Mastermind meeting, we were talking about how an agent managed to sell a client a new home. This wasn’t all that surprising until the agent told us that the client had worked with a few other agents before who without any success. So the conversation turned towards a discussion about why the first few agents couldn’t make a sale. What was it that made the client stop working with one agent and eventually buy with another?
Some of the answers were pretty obvious…that agent didn’t know the area, that agent wasn’t available on the client’s schedule, or that agent didn’t understand what the client was looking for. But to get more great answers I consulted the great oracle itself, Facebook’s Real Estate Corner. There I got a few to add to the list. Here are some of the best.

I made myself more available.
I made an effort to take the clients out more often, even when there wasn’t much to see.
I gave the client more information than what was on the listing.
I returned phone calls, texts and e-mails quickly.
I listened and didn’t waste their time.
I am more accessible.
I was truthful about a listing.

Now, to be fair, agents lose clients for lots of other reasons. It’s not always about failing at the job. I was reminded of a very good agent in my office who had long-standing relationship with a buyer client. After months of showing properties, the agent figured it wasn’t going to happen so she passed the lead on to a new agent who ended up selling the client a condo in about two weeks. Turns out the client never really liked the first agent and was thrilled to work with an agent who could devote more time and attention. Simple.

There’ an old saying about being the first love, second wife and third real estate agent. There’s probably some truth to that (well at least the end of that anyway).

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.


Get every new post delivered to your Inbox.

Join 5,226 other followers

%d bloggers like this: