The Most Common (and Worst) Question in Real Estate Right Now

I don’t think it’s any secret that in any industry, there are better and worse “professionals” working together every day. Those that really know what they are doing, do their job well, and are rewarded for it. Those that are just fine, competent, maybe dependable. And those that you look at and think “how did they get here?”

Any industry, doesn’t matter what it is, this discrepancy in ability and talent is there. Real estate is no different. Maybe it’s even more obvious because a large portion of licensed agents either haven’t been licensed for very long, or don’t do a lot of business on a yearly basis.

In my opinion, this lack or difference in ability is most visible when you see how agents talk to each other and their clients.

Communication skills are paramount as a Realtor, shocking I know. I’m not sure that there is a more undeniable or unavoidable skill that you have to have in order to do this job well. And I’m not talking about being polite, I’m not even talking about being fluent in 1, 2 or even 3 languages. I’m talking about knowing what to say, what NOT to say, and when to say it.

Right now, in our market where most homes are selling under list price, there is one question that I hear more than any other and every time I hear it, I think “why are you asking me that?”

“Is the seller flexible on the price?”

Every single listing I have had this year, I have had either another agent or a buyer directly ask me this question. I have also had my own buyer clients ask me this question about homes that we have seen. My answer is completely different in these scenarios because one of these is a great question, and one of them is a terrible question.

Here is why a buyer’s agent should never ask this question of a listing agent: it doesn’t matter. It doesn’t matter one damn bit in fact.

If a buyer is interested, educated and has a capable representative, it doesn’t matter if the seller is flexible on the price. That buyer is going to assess the house compared to other homes they have seen, weigh the pros and cons of the house based on their own criteria, assign a value to that house and go for it.

That is a decisive buyer and in my experience, those are the buyers that end up happiest.

Now, I know why buyers and agents ask this question and it’s for one of two reasons.

Number 1: we don’t want to offend the seller!

Number 2: we don’t want to waste anyone’s time.

In response to number 1, in this market, no seller should be offended by any offer that comes to them. Getting emotional about an offer is not productive nor is it really that personal at all. So from a buyer’s perspective, they shouldn’t really care if a seller is offended by their offer. If they are, then obviously you are not going to see eye to eye on the value of the home and a deal is not going to materialize. That’s alright, it happens! Time to move on and not get emotional yourself.

My point is this: sending and receiving an offer shouldn’t be an emotional experience. Yes we are dealing with people’s homes but there is no room for being offended these days. And if you ask that question and follow it up with “we don’t want to offend anyone” you are opening the door for somebody to be offended. Whereas if you just put an offer on paper and say “hope we can put this together” there is no room for emotions.

And in response to point number 2 above, putting an offer together is never a waste of anyone’s time. In this market you never completely know what a seller might say or do when they are confronted with an actual offer in writing. It’s all talk and all hypothetical to that point. On the buyer’s side, it doesn’t take hours and hours to put an offer together, so who’s time is being wasted?

It’s our job as Realtors to work together on behalf of our respective clients and writing/reviewing offers is part of that job. Not all offers are accepted, its part of the business.

So why is it different if a buyer asks their own agent “do you think they would be flexible on price?”

Because that buyer’s agent works for the buyer and should have some insight and opinion into whether or not the seller should be flexible. They also work for the buyer, not the seller, so they have a lot easier time saying yes and why.

If my client were to ask me that, there are a few things that I can easily assess to help my client understand what might be going through the sellers mind.

How long has the house been on the market? Have they reduced the price previously or recently? What type of closing are they asking for? When did they buy the house and for how much? And lastly, what type of offer strategy are they using?

That’s just information I can get from the listing! Here are some things that I want to know from the listing agent when I call them before we write an offer:

How have showings been lately? Have you had any offers? What type of closing do the sellers need? (Either confirm what’s on the listing, but everything they tell you is good info) Are they willing to leave X, Y or Z? (Chattels) When are they moving to their new house?

Some agents will answer a lot of these questions (or all) some won’t. Regardless, it gives me information for my buyer client.

Let’s flip the script because if I am the listing agent, and I am asked if my seller is flexible, or any of those questions above, I don’t (and won’t) answer those questions unless the listing is exceptionally busy and we have actual leverage over a buyer.

But that’s my main point! By answering any of those questions and especially “is the seller flexible on price” you can give more leverage to the buyer very easily.

My answer is always very simple: price (or closing date, conditions, chattels, deposit etc) is only one part of an offer. I can’t and won’t answer for my client but I will gladly present them an offer so that they can weigh it out and make a decision. So if your client has interest, I would encourage them to make an offer so that we can have a real conversation that isn’t all hypothetical.

Simple, easy, to the point. Bring us an offer! We can’t go anywhere without one. And like I said earlier, both buyers and sellers might have a different answer when they are actually confronted with an offer on paper and not something hypothetical.

This is one way that I think agents can level up pretty quickly and easily. Learn how to talk to other agents (and your clients) effectively. Take emotions out of it, both positive and negative. Be matter of fact and don’t beat around the bush.

And most of all, understand how to act in your client’s best interest. Agents cross that line without knowing it all the time.