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Ask any group of real estate agents if they've ever had a listing that they wished they'd have never seen? You'll get a unanimous response. They'll all say yes they have. What could be the cause of so many having a 'nightmare listing'?
Two Causes
- Agents will try to make the best of an inherently flawed situation
- Agents fail to have uncompromising criteria for selecting worthy listings
While the first cause is most laudable it is equally foolish. There are certain sellers, certain properties and certain situations that are simply untenable for discerning agents. To state it more graphically, they're not worthy of our time.
What are the characteristics of an unworthy listing?
- The sellers don't have to sell.
- The sellers don't like/respect real estate agents.
- The sellers will never price their property competitively.
- The sellers won't list without a major commission concession.
- The sellers demand a short term listing.
- The property is flawed. (bad condition, poor location, functional problems)
In reviewing these six characteristics, most agents would say they'd pass on taking the listing. That begs the question, what if only five of these characteristics were present? What if only four were present? How about just three? Two? One? What's the cut off for passing on a listing? In a competitive (I want to win) situation, agents tend to abandon common sense and accept a listing with too many of these fatal flaws.
Agents are renowned for ignoring the 'bad news' when taking listings. They always think their extra efforts will compensate for a listing with any number of fatal flaws. Perhaps they think something will change and mitigate these flaws. As long as this line of thinking remains with agents, they'll continue to take listings that they'll later wish they'd never seen.
The Solution
The solution for agent vulnerability is to adopt criteria for an 'acceptable' listing. More than having these criteria, agents must commit to never varying from them. They must resist their normal competitive nature and the "let's make the best of it" perspective. These criteria have to be thought out and adopted in a thoughtful manner uninfluenced by a pending circumstance. It might even be advisable to review one's eventual criteria with a respected peer, broker or manager. That provides validation and security that one is not acting in haste.
So what are some of the possible criteria that are worthy of consideration and adopting into one's mode of operation? Everyone is free to make that determination, but consider:
- Don't take the listing unless the seller is truly motivated to sell.
(Without this motivation, all other factors are adversely impacted.)
- Don't take the listing unless the seller will immediately (or eventually) price their property competitively.
(Pricing trumps all other factors when it comes to salability.)
- Don't take the listing if you'd be embarrassed to have this property in your inventory.
(Your current listings will, to some degree, influence the thinking of the public and other potential sellers toward you.)
Whether you agree or not with these three criteria, they each portray a circumstance that presents a 'sure-lose' result. It's been accurately said, we spend more time and aggravation on listings that never sell than on those that do. Taking unworthy listings from unworthy sellers is a time consuming and costly endeavor.
Expand or modify criteria that match your style, philosophy and business principles.
Caution
Don't interpret the 'worthy seller' 'worthy listing' concept as judging people unfairly. Some of our best friends, some of our closest relatives and some of the nicest people we encounter can be unworthy sellers. This concept is NOT to be construed as unfair practices or unethical behavior. For us to take on the expensive task of marketing a listing requires us to adopt objective selection process. Sometimes the best service we can render is the decision to render no service at all.
Review the strategy and dialogue suggestion entitled, "Exit Strategy for Turning Down the Listing"