Occasionally a buyer will want to buy or a seller will want to sell -- and I will suggest that they may want to consider other options. Nothing seems to surprise buyers and sellers more than when I help them find an alternative to buying or selling.

For example, a couple called me some years ago saying that they were close to being behind in their mortgage and that they felt they had to sell in order to get out from under an unbearable debt. I helped them refinance instead. They had gotten bad advice from other agents and lenders and didn't think they had any other options. They managed to reduce their monthly payment by a large enough amount that they were able to stay in the house.

I've also begged buyers to wait until they were in a better financial position before buying. Sometimes they listen and sometimes they don't. Okay, usually they don't. It's not that I don't think they can buy, it's that I think they would be in a stronger position -- qualify for better interest rates or lower downpayments -- if they wait until their job situation has settled down or they've fixed their credit. A plan for increasing savings or for fixing credit can make a world of difference even just a few months later.

It's not that I don't want the business, 'cause I really do. The litmus test is this -- what advice would I give to my son, daughter or my mother-in-law. If I wouldn't give a particular recommendation to them, I won't give it to my clients. Putting commission first is a sure way to burn bridges. If the choice is to move forward with buying or selling, then I'm happy to move forward with them, but at least I know they've explored the options.

(C) Susan Pruden.

Several months ago, an agent called me to ask how to write a home inspection addendum. Turned out she had been licensed for a couple of years, had several settlements under her belt, but she had never been on a home inspection before. Remember that hot market? No inspections? Well, that's when she started selling real estate. She had no clue what to do, but at least she was smart enough to ask someone with experience.

There is an art to writing a good home inspection addendum. I've had real estate agents send me the entire home inspection and expect the seller to figure out what needs to be repaired. That's not acceptable, by the way.  I've gotten addenda that had lists like:

1) leaking drain pipe. (Really? Where? Thanks for letting me know.)
2) faulty outlet. (Oh, you want this fixed?)
3) stains in basement indicate water penetration. (Yep, there are stains allright. So what?)

What does that mean? Fix how? Which outlet? Repair it? Replace it? Waterproof basement? Clean stains?  This kind of addendum is a recipe for disaster. The buyer probably knows exactly what they expect from the seller, and the seller is going to take the path of least resistance. The seller will fix the faulty outlet himself, then the buyer will ask for a receipt from a licensed electrician. Oops! Can't provide that because a) there isn't one and b) the buyer didn't request one in the addendum.

Buyers seldom write these addenda themselves. They depend on their agents to look out for them by writing a clear and concise addendum that reflects what the buyer actually wants done.

I met a buyer a few weeks ago who said that he had no idea what was being done on the home inspection. His agent was taking care of it all for him. He didn't know what, if any, repairs would be done. I'm sure his agent thinks he's really looking out for his client, but the addendum will reflect what the agent thinks should be repaired, not what the buyer wishes. Since the buyer is the one who will pay money at settlement and will have to live in the house, I think this is about as backward as it gets.

Experience counts. Everyone is new at one point in his or her career, but that person should have someone competent looking over his shoulder to make sure the buyer or seller is protected. Too many agents wing it with little or no supervision.

(C) Susan Pruden.

Jennifer Allen (Denver real estate agent) writes a terrific blog and her post about prospecting (i.e., how we are supposed to get new business) struck a chord in me. I'm terrible at prospecting. I could no sooner pick up a phone and call 10 strangers and ask them for their business than I could...I don't know, cut off my own toes. I. Just. Hate. Doing. It.

The theory is sound. If you spend all your time working on your current business, eventually you'll find yourself with several settled transactions and no new business. Our business tends to roller coaster. We go out and prospect, then we get busy, then we suddenly have no more business, then we go out and prospect for more business. This also means that our income tends to follow a roller coaster path, especially when we're new to the business.

So, the idea is to put time aside on a regular basis to prospect, even when you're really busy. And it's true, the current transactions tend to need attention regularly. There's always something -- the lender needs forms, the appraiser needs comparable properties, the termite inspector needs to get into the house.

Then there are the "fires".  A typical fire might go like this... Everything is perking along fine and then you get an email from the lender, saying that the buyer's loan has been rejected. Yikes! We're two weeks from closing! The buyer is crying, the listing agent is screaming and the lender won't return your calls. So you leap into full fire-putter-outer mode, call every lender you know and work those phones like a fiend. Finally, you get it resolved, the closing is back on track and your entire morning is shot. You feel like you've been through the wringer.

Some agents always seem to be in "fireman" mode. One agent asked me recently how much time I set aside a day (a DAY!) to put out fires. Curious, I asked him how much time he set aside. He said, "Two hours every morning. What about you?"  "Well, none."  "None?" 

The truth is, I don't have many fires. Once in a while. But not often.  Sure, problems crop up all the time, but I'm seldom blind-sided by them. Frequent communication with everyone involved seems to take care of that. (Whoever invented email is a god to me, by the way.)

So back to prospecting. I spent this morning's "prospecting time" writing this, chatting with my husband about our plans for his 60th birthday, and reading the real estate news on the web. Much more relaxing than calling strangers. And I just don't worry about it. Most of my business comes from referrals and I thank each and every one of you who sends your friends and acquaintances my way.  You are all definitely saving me from "prospecting"!

(C) Susan Pruden.

There are some agents who feel they must create drama in order to prove to their clients that they are working hard on the client's behalf. These are the worst transactions to be involved in as just about everyone leaves it feeling battered and bruised.

I've been involved in a couple of these recently. 

In the first one that comes to mind, the listing agent worked seller into a frenzy so that she became convinced that my client was trying to cheat her. She then refused to cooperate with us on anything, even refused to comply with repairs that she had agreed to in the contract. I would have chalked this up to the seller just being unreasonable until I heard through the grapevine that this is typical of this listing agent's transactions. Virtually every agent I've spoken to has had a similar story about selling this agent's listings. My client is very happy with his new home, but he certainly has a bad taste in his mouth from the way we were treated by the other agent.

In another recent sale, the buyers' agent took every problem and made each one into a federal case, threatening that her clients were going to cancel the contract if my client didn't cooperate. The truth is, as is often the case, that neither side got everything it wanted. The buyers didn't get all the repairs they wanted, nor did they get all new carpeting and other cosmetic items that they requested after the home inspection.  The seller ended up spending considerably more money on repairs - may of them cosmetic) than she expected in order to get to settlement. I am ashamed to say I completely lost my cool on this one, but never with my client. Thinking back, I was successful in getting both of us to laugh over how unreasonable the repairs were. By keeping the end result in mind (selling the house and getting out from under the mortgage payment), I was able to help my client move past the problems.

I think that there is enough drama inherent in purchasing or selling a home without creating more. I can think of nothing better than a trouble-free transaction. This doesn't mean that there aren't problems -- they come with the territory. But when the agent on the other side is calm and professional, we can work through the issues with a mimimum of fuss.  It's such a relief when I have to call an agent with a request or problem and the other agent simply says "thanks for the call, I'll discuss it with my client". 

No drama. No fuss. Just professional behavior that serves both sides well. Sometimes buyers and sellers can be unreasonable. But that doesn't mean that we agents have to buy into it. I think we serve our clients best when we stay objective and don't get personal in our reaction to whatever the problem is. Buyers and sellers can find family and friends to fuel outrage.  They don't need us to pile on. Take it seriously, yes. Work towards resolving whatever it is in our client's best interests, absolutely. But not take it on as a personal affront. That doesn't serve anyone well.

(C) Susan Pruden.