Do you really want your agent to tell you the truth?

By Joel Persinger
YourRealEstateDude.com

Like most families, we have our little traditional games we play with our kids. One of my son’s favorite games when he was small has now become one of my daughter’s favorites. We call it, “this way or that way”. We drive along the neighborhood, pausing at every intersection so that our kids can decided whether we go “this way or that way.” The kids enjoy being in charge and exploring the neighborhoods at the same time. All of us were piled into the car playing that game earlier today with my daughter joyfully acting as navigator, when my wife observed, “There’s at least one house for sale on every street.” “Yes”, I said, “And the vast majority of them are overpriced!” The moment I said it, it got me thinking.

I have had several meetings this past week with prospective home sellers. In each case they asked to meet with me to discuss the market and the possible sale of their homes. In each case, I left the meeting without having listed their homes for sale. This is because, in every case the clients were expecting to sell their homes for much more than the current market will bear and knowing this, I gently but firmly told each one of them the truth.

They were disappointed to be sure, but each now has the information they need to make a well thought out and informed decision. In one case, the clients have decided to continue renting out the property. In another, the decision to stay put until the market changes was the best idea. But regardless of the direction each client chose to take, each situation has two things in common. First, I told the truth even though it wasn’t what they wanted to hear. Second, I didn’t make any money doing it. Which brings me back to my wife’s observation about the number of homes for sale and my comment about them being overpriced.

Real estate people make money when they sell a property, pure and simple. They may give advice to anyone who asks, but they don’t make any money doing it unless they get to sell a property somewhere along the way. Even if the client is left much better off after having received the advice, the real estate agent is still left without a dime of compensation and looking for the next client.

This explains why many agents are simply afraid to tell their clients the truth. It also explains why there are so many homes on the market that are hopelessly overpriced. After all, if the agent tells the client that her expectations are unrealistic, the client may simply hire an agent who will tell her what she wants to hear. The end result is that many agents list homes for sale, knowing full well that the price is too high because they are afraid to tell the client otherwise. Then they either wait for the seller to become frustrated and desperate enough to lower the price on their own or simply hound the seller to reduce the price until the property sells. Either way, the selling experience is an exercise in sleepless nights and excess stomach acid for both seller and agent. This, among other reasons, is why I decided years ago to just tell people the truth from the start.

So, if by chance our paths should cross and you ask me for advice about selling your home, don’t be surprised if I start out by asking, “Do you want me to butter you up like a Sunday biscuit, or would you like me to tell you the truth?”