Communication: Deal Maker or Deal Breaker

It seems obvious that clear communication is important in real estate. People are often making the largest purchase or sale of their lives. Hundreds of thousands of dollars change hands. Scores of details have to be worked out. And in the end; buyers, sellers, and real estate agents need to shake hands and part feeling that each has made a good deal.

Of all the things that can cause stress in a home sale or purchase, lack of communication is the one that can do the most damage. Both buyers and sellers need to talk openly with their real estate agents, and agents need to communicate clearly with each other. When things go wrong in real estate transactions, you can usually trace the problem back to a breakdown in communications.

I once referred my mother-in-law to an agent in her area so that she could sell her townhouse. That agent did a good job with the listing presentation, priced the property correctly and I assumed everything was going well. To my surprise my mother-in-law fired that agent shortly thereafter. Of course, I could not believe it because the agent I referred to her was no rooky and has a good track record. In addition, I also had the honor to sell a home that belonged to a family member of that agent. So why on earth would my own mother-in-law fire my referral agent?

The answer was that she took offense when that agent told her to get rid off “all that clutter” in her condo.

My mother-in-law has a Ph.D. in Anthropology and by nature she has some unusual items in her dwelling. Among these items that the agent referred to as “clutter” were a Maloof chair and some valuable artifacts from her travels around the world.

Of course, my referral agent was right, and had good intentions in wanting to make the condo more saleable. But that agent made a mistake in advising my mother-in-law to perhaps “get rid” of some items in a yard sale. That chair is a collector’s item worth thousands of dollars, and that partially broken pottery from a trip to the Amazon has considerable value. Not to mention the sentimental value that items can possess in the eyes of their owner.

I am not saying that REALTORS® need to be experts in Art and Design; however an agent should be careful when communicating on “touchy subjects”. It is in the presentation and how it is “served” up. A simple solution would have been for the agent to say something along the lines of that she understands that these items are of great importance; however she would recommend to put this items and sentiments in storage in order for the main stream buyer prospect not to be distracted from viewing the property. Just a little care on how to communicate could have made her a nice commission.

So here are some common sense communication tips for buyers, sellers, and real estate agents.

Buyers
1. If you are buying as a family or a group with several decision makers, make sure you talk about and agree on what you want. Make a list of the things that are most important to you and be open with each other. If you are buying as an individual, make your own list of priorities.
2. Get pre-qualified or even better, get pre-approved for a mortgage loan, and then use that as a guide to the price of houses you see. Your agent will be able to guide you in selecting a price range to view. Resist the urge to “just look” at houses that are way beyond your range; it only wastes everyone’s time and can make you unhappy with houses you can reasonably purchase.
3. Be honest with your real estate agent about what is most important to you in the home you seek and your price range. Do you care more about the neighborhood, school district or the size, the style or special amenities? If you know deep down that you will never really be happy without a fireplace, say so.
4. If something about your situation changes, let your agent know. Share both good news and bad news right away. The only problem your agent can’t help you solve is the one he or she does not know about.

Sellers
1. Before you put your house on the market, be sure that you really want to sell. This sounds obvious, but all too often real estate agents find that one person in a “couple” wants to sell while the other is not as sure. Don’t put the house on the market until both can honestly answer “yes, we want to sell.”
2. Tell your real estate agent what price you would like to get for your home, but keep an open mind. Recognize that the market has changed and aim for a realistic price that will attract buyers while being a fair price for the market.
3. Tell your real estate agent what is most important to you in the sale of your house. Are you willing to wait a while to try for a higher price, or is making a deal quickly important?
4. Your agent will have suggestions about how to prepare your home for showing. Keep in mind that these suggestions do not reflect on your decorating skill or the way you have furnished your home. Nor are they a critique on your taste. The agent is looking only at how to make your home most attractive to buyers.

Real estate agents
1. Learn how to ask your sellers and buyers what they need from a transaction. Make it part of your presentation to get the basic questions answered so you can provide what they need.
2. Be available and responsive. A simple question can turn into a complaint if your client can never get you on the phone and if you don’t return calls.
3. Be clear with your clients about what will happen during either the selling or buying process. Let them know what to expect and when. Buying or selling a home is inherently stressful; this is not the time for surprises.
4. Communicate clearly and frequently with the agent on the other side of your transaction. Confirm appointments and follow-up after showings. Recognize that making the transaction go smoothly for both sides reflects well on you and leads to referrals.

In real estate, common sense and considerate communication can help keep the stress level low and the success rate high.

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