Opening November's issue of Riviera, a south Orange County magazine catering to the luxury lifestyle, I read in an article chronicling area events the following excerpt:
"We go to so many [parties] that by now we really know what we like when we throw one of our own: Lovely interesting and attractive guests, of course, food and plenty of it, music, fab fashion on gorgeous models, and here's a biggie: no waiting in line for a drink!"
Something about this definition seems lacking. I had at one point in my life categorized a meaningful party as this. Who doesn't like beautiful people, good food, good drink? But was this all?
Sometimes I wonder if we as real estate agents conduct business like this. We are quick to encourage our clients to a bigger house, a ritzier area, and even repeated upgrades. As agents, client business benefits us. The higher price increases our bottom line. We become a cog in the machine, and promote a lifestyle with which we even feel dissonance. We come to believe that it is for our client's best interest that they buy as much as they can afford, and have even betrayed ourselves into believing our own life can be given meaning in the same manner.
Is the definition above that of the authentic life? Can it be boiled down to mere material situation?
I have been fortunate in my transactions as a real estate agent. I have always genuinely enjoyed the clients I've worked with. I am not certain if this is because of how they respond to me, or that simply I repel those clients who might be a little less appreciative. Out of the whole batch, however, my heart has been broken to see how often people think that if they could only afford another 100k for their new home, they would be happy. If it doesn't happen financially (loan limitations, etc), they become discontent with even the many beautiful homes at which they can comfortably afford to live.
Is worthwhile living tied to the market price of own's home? Is "wealth" equivalent to "happiness"? Are real estate agents solicitors of this myth?
What should the role of a real estate agent be in people's lives? For a brief period of time spanning only a handful of months, agents find themselves poised in a position of influence in client's lives. How can we as agents add true meaning through our work and not merely promote a system of "Who dies with the most toys wins"?
Sara... Some very good points. A good topic and some good thoughts. It basically comes down to what you want and feel comfortable with....which would allow you to pick your clients.
Good luck.
Hi Jeff!
Good thoughts! I agree with you 100%. I have never bumped up a client to a higher price; in fact, I've even recommended to clients that based on what they're telling me, and under the circumstances, it might even be to their interest to wait....
I am not so much concerned about the Buyer's purchasing habits, as much as I'm concerened with the agent's influence over the buyer.
A skilled salesperson in any field knows how to subtlely promote a buyer from an entry level product to a middle or higher level product. An agent can do this subtlely by recommending an area slightly above the initial range the client wishes to start looking. For example, an agent can provide a client with a list of houses within the client range, and then provide an second "back-up" list, in the case the client doesn't like what they're seeing and would like to raise the price. Although the agent isn't directly pushing the price up, but just by "simply" giving the client the second back up list, in the case that the client doesn't find what they'd like in the initial search range, the agent has already planted the idea squarely in the mind of the client. That is what I mean with the term "influence".
I have never done this myself; in fact, I specifically state to my buyers that if their goal is to stay within a certain range, I am going to do everything I can to get them a house they love in that range. Obviously they chose that range for a reason, and if they wish to consider other alternatives later, that is always an option, but first I want them to see what is available (and mainly to be sensitive to their specific needs regarding financial comfort). This establishes rapport and a genuine show of concern and commitment to the clients preferences is often what most clients really earn for in an agent.
But despite the fact I feel this way, I am aware that other agents do not.
What do some of you other people think about this? How far should an agent go? What is the line where "sliminess" starts?
Very apt and very well written Sara. EXCELLENT first Blog, hope to 'hear' more from you in the future. I think it's wonderful that you have the integrity to keep your clients best interests in mind.
I have known SO MANY couples marriages fall apart over the stresses of a home they couldn't afford (many of them building their dream home).
Still though I love our house, and feel meets our needs perfectly, I find myself drooling over those 1.5 million victorians downtown all the time. I need to practice buddhism more :)
I can't really say from a real estate agents perspective, since I'm not one. But I have experienced agents who've shown me things WAY over the range I'd given them.
Of course some buyers are just unrealistic about how much house they can get for the price they want to pay; so that can be tricky. Statistically, the more houses you show a client, the lessl likely they are to buy from you. Maybe that's why some agents will introduce a nicer home that shows well but is more expensive.
Sara:
I don't know whether to hug you or throw you off of the pier. I'm kidding, of course. As a Southern California Lender, I have benefited greatly from the statusl seekers who overbuy for homes, only wear Prada, and only drive German.
I live a relatively simple life. My wife and 5 year old daughter and I live in a townhouse by the beach. We could have owned a larger home inland but opted for the lifestyle of ocean breezes and sand between our toes. We moved here from Phoenix 4 years ago and sold a house that was twice as large for half of the money we spent here. We both drive nice, older (German) cars; they're paid for.
I constantly wonder what kind of values we impart to our daughter. America is a very materialistic country and SoCal is at the epicenter of it. Now, I'm no communist. I'm all for people making money and spending it anyway they choose.
However...when you die...what will you be remembered for? A pretty smile, fab clothes, over-the-top parties and a glitzy lifestyle? Or will you be remembered as a person who appreciated the sunset over the Pacific, the easygoing and open way to make friendshipsr, the caring you showed for those less fortunate, and the difference you made in people's lives?
My God, I sound more like Jerry Maguire than you. I just want you to know that your first blog made all the difference in the world to one other SoCal real estate professional this evening. More, not less, people like you need to practice real estate in Southern California.
:) Jess, make me laugh!!!
When you mention showing clients many houses, there is only one thing I think: bad qualifying!!!! I remember my first couple years in the business, I only had one couple I showed more than 15-18 houses (basically a Saturday-Sunday showing schedule), and that was because I hadn't qualified them well.
My experience has been that if clients are ready to buy and I've done a good job sending them properties that match their criteria, in one weekend we find their house. Even if you start out in their ideal price range and look at several houses, pretty soon even if the client didn't know the market, they will recommend a price raise if they sense the homes aren't meeting their minimum requirements. My point is that instead of pre-empting that experience by giving them higher priced homes up front (and thus breaking their trust, in the sense that you are pushing them upward despite their wishes otherwise) it is better to prepare a list of homes but keep that filed away (maybe in the briefcase) after their own expression of wishing to raise the price.
I think here the emphasis is on letting the client steer you while still professionally maintaining your position as agent in the situation. An agent can't "steal" control that isn't theirs; they can't pretend that they can raise the price when only the client can make that decision.
In sales, there is a lot that the salesperson can get away with, but clients know when they feel manipulated, had. It is a greater test and developer of skill to sell while respecting the client as an individial person.
Hi Sara,
Good blog--I think we ask what our client is interested in seeing and at what prices and follow-up with questions about their lifestyle so that we can make a good match with a property that will meet both their needs and wishes. I want them to be the ones to drive the prices up--not me.
I think you need to change your phone numbers in your profile--now that you have left us and gone back to California--I do miss seeing you around the office!
"He who dies with the most toys still dies!"
Unfortunately, we live in a very self-indulgent society where possessions serve to reflect the degree of our success. Homes are typically the center-piece of our trophy case.
The definition lacks meaningful substance and purpose.
"The Purpose-Driven Life" by Rick Warren addresses this issue quite well.
I work diligently and ethically to represent my client's best interests. I offer them experienced, professional counsel. I warrant their trust, earn their respect, and gain their friendship. And hopefully, along the way, they will see a difference in me and ask why.
Rich,
:) I just have to smile!!!
Yes, I know The Purpose Driven Life! I attend Saddleback, where Rick Warren is the senior pastor. God has used him in amazing ways to impact many people's lives! I think many people are finding a far more fulfilling life as a result.
:) :) :)
My goal has always been to match the house and the buyer if at all possible. This means that I've handled properties everywhere from $60,000 to $400,000 in the last couple of years. I've never tried to get someone to move up in price, though I do always do their searches about $5,000 above their top end, with NO bottom end to the search, because you never know, if they're looking for a home for about $150,000, say, when The House is listed for $153,000 that's been on the market a while and, after negotiations are through, it could come in at $149,000. But they only see those if they fit the criteria to a "t".
My real joys are in putting people together with fixer-uppers that just need a little love and attention when I know that the people are the kind that will bring that home back to its former glory and warmth. That's a special pleasure on top of making the sale.
Tricia,
Good thoughts!
Leslie, I like your idea of this too!
What you guys are describing is what I love about real estate, being able to really "bless" a person or couple through our work. Finding someone a house they love is compensating on its own, apart from our real estate pay.
Searcing a little above price is a brilliant move, for the simple fact of what you've mentioned, Tricia. It helps us as agents to really know what's happening in that price market, how do these homes in the ideal price range compare to those just a little above? This is how we also more easily identify a home in the ideal price range that is just priced to steal. A comparison of that home to its current range and then the range above it lets us know if maybe it could have been priced higher, which is always a strong selling point for a client who is interested in the home already.
Sara,
You might want to read one of my posts where I touched on a similar vein of thought....
http://activerain.com/blogsview/15821/-Is-this-unethical
Sara,
Great Blog. You bring up many good issues. When working with buyers I always try to find them what is right for them and not for me.
My first sale in real estate was to a lady who called my office looking for a 2 bedroom in the $800,000 - $900,000 range. She was specific about neighborhoods and certain streets. We met and I showed her an apartment listed at $899,000. She hated it!
We sat down at Starbucks and she drew me a floor plan of the apartment she wanted. She lived in Connecticut and wanted a duplicate of her Connecticut apartment in New York.
I went back to my office and I found an apartment that had the exact layout she described. It was listed at $625,000 and was only a 2% commission. I called and emailed the info to her.
She took the train in the next day, she loved the apartment and we made an offer on the spot. She got the apartment for $610,000. I was happy to have made the sale. Some agents never would have shown her that apartment because of the price and the commission.
Because I was new I assumed buyers were loyal. It never dawned on me that other brokers were showing her apartments too.
I received a letter from her that said God Bless you Mitchell you were the only broker that listened and found me exactly what I was looking for and saved me over $200,000 to boot.
Sarah,
I try to comment on as many blogs as I can and yours brings up a good point. I would rather let the chips fall where they may. By the way...I featured this post in my recent post.