Tire Kickers and Deposits

Megan Manton ABR — Fri, 13 Jul 2007 13:50:00 GMT

Even though you pre-screen them and get a Buyers Brokerage Agreement signed, there will always be a Tire Kicker every now and then. For whatever reason they do not purchase a home and you have wasted your valuable time and gas on them pro bono. Maybe they were only in your car once or maybe you wasted several office hours and miles on them.

I have attended a local class where an ABR Instructor encourages you to charge your clients a deposit for buyers representation. This deposit could be anywhere from $250 dollars on up and will only be refundable at closing if the clients make a home purchase. This deposit will hopefully be a small compensation for your time and money wasted if the clients do not purchase. I have seriously considered making this a part of my business plan for all new clients. Do you charge a deposit or have you ever thought about it?

Friends without benefits?

Megan Manton ABR — Mon, 07 May 2007 17:52:00 GMT

The longer that I am in the business (now in my 3^rd year) I discover contacts in social settings that chose not to use me as their REALTOR®. Some are mere acquaintances, while others could be classified as friends. When someone tells me that they used another agent, I have heard every excuse in the book from “I used my parents’ friend” to “I do not want my friends to know my personal business”. Sometimes I wish they would just say “I did not want to use you”. I do market regularly to my contacts AKA “sphere of influence” through mail and email campaigns. I am always financially and physically supporting their causes: showers, charities, social events, etc. I also write many personal notes acknowledging their life events. I have been very successful over the past 2 1/2 years thanks to marketing to my sphere of influence; however I wish that I could have captured some of those missed opportunities. I do understand that rejection is all part of the game. How do I let my contacts in my sphere know that my business is dependent on them? Simultaneously I wish they could know that I do not receive a small salary or leads from my company. Also what do you say to those contacts when you learn that they used someone else? Finally, why do these people always like to talk real estate with you in social settings while working with someone else?