Most listing agents think they need to dazzle sellers with a listing presentation.

I guess the reasons might include:

• Ego gratification ~ it’s their big moment “on stage” where they can brag how they’re #1 (who really cares?), have the biggest team, how their company can beat up the other companies, etc.
• Wanting to impress the seller so they can get the listing, no matter what ~ even if it means taking an unsalable listing.
  

Listing presentations are silly and here’s why:

• Sellers are interested in WIIFM (what’s in it for me).
• Sellers aren’t easily-impressed by braggadocio, personal sales statistics, and agents driving Hummers with full body graphics proclaiming they’re #1 (again ~ who cares?).
• Sellers (and everyone, for that matter) want to be heard.
• Sellers want to be asked questions.
• Sellers want to be listened to.
• Sellers want to be respected.
• Sellers want to understand.
• And, more than anything, Sellers want to be understood.

The simple fact is that I can get a lot more information about a potential seller’s situation by asking questions and listening carefully than I can by putting them to sleep with my super-duper PowerPoint presentation.

Which is why I walk into a listing appointment with a blank yellow legal pad and ask questions.

Questions like:

• “Why don’t we start by having you tell me what you would like to accomplish?”
• “What are your top three concerns about selling your home?”
• “What do you think are the top three selling features of your home?”
• “What happens if your home doesn’t sell?”

You get the idea.

It isn’t about me; it’s about the seller.

Once I clearly understand the seller’s needs and wants, I can develop a custom marketing plan with creative ideas to get their home sold in our present, challenging market.

Is this any way to run a real estate business?

My thousands of delighted past clients enthusiastically shout “Yes!”.

To see what my clients think of my service, check out the Testimonials button on www.BoiseReal.com !

Why must a buyer’s agent be paid by a seller when they represent a buyer?

Doesn’t make much sense, does it?

But, that the way it’s almost always done in residential real estate.

You don’t have to be a rocket surgeon to figure out that this creates all sorts of questions, including:

• How can a buyer’s agent represent the best interests of a buyer when they must please the seller to get paid?
• Why should the seller dictate the amount of compensation to be paid to the buyer’s agent?
• Why can’t a buyer negotiate with their own agent to establish how much the agent will be paid?
• How can a buyer’s agent avoid the perception of a conflict of interest when they receive more commission with a higher sales price?

What if “the system” were changed to allow a buyer’s agent to be compensated directly by their buyer?

And, what if that compensation could be included in the buyer’s financing? (federal lending guidelines currently do not allow buyer-paid compensation to be included in financing).

That would allow buyer’s agents to structure their fees commensurate with the level of service provided.

Buyer’s agents could then offer ala carte pricing based upon the services they provide, such as finding suitable properties, previewing homes, showing homes, advising about value, arranging financing, preparing contractual paperwork, dealing with home inspection issues, negotiating, coordinating escrow details, attending closings, etc.

And, they could even get paid at the time they render specific services and eliminate contingent compensation (getting paid only if escrow closes).

Buyer agent compensation, directly-paid by the buyer, would allow true buyer representation while eliminating the above-stated conflicts.

Another challenge is buyers’ perception that they aren’t paying the commission.

But, buyers need to understand that they are paying it because it is built into the price of the home.

Will any of this ever happen?

Probably not in my lifetime.

But, I can dream

The following is an actual e-mail I received a few days ago from one of my buyer clients who closed escrow at the end of June:

My wife and I started exploring a move to the Boise region in early 2008. We were attracted to the Ada/Canyon area but concerned as we had never purchased a home in an unsettled, declining market. Some real estate agents we have met in the past were marked optimists who would never term a property overpriced or identify negatives. Many had never worked in a "bear" real-estate market.

I discovered Phil through his web site and blog and recognized that he both had many years of experience and was willing to discuss the positive and negative aspects of the local market and specific properties. From our first meeting we found him to be very professional, organized, knowledgeable, and remarkably attentive to detail.

After dragging him around Ada and Canyon Counties on two visits, we found several appealing houses. Phil helped us research and understand their individual advantages and disadvantages and also referred us to two very experienced, professional loan officers. With preapproved financing, he carefully crafted our purchase offer.

Through the initial (accepted) offer, inspection, financing, closing, and final home walk-through, Phil remained consistently organized, accessible, patient, and insightful. We not only appreciated his professional skills and wise counsel but those of the equally gifted professionals whom he recommended.

Thanks, Phil!

Bill England, MD

(reprinted with client's permission)