I had a meeting with current property clients yesterday. They are moving to the Left Coast this summer and while they have their current home on the market for sale, they wanted to know their options in case it does not sell - so we met to go over their rental options and the timeline with regard to their sales listing.
During our meeting, they asked me about two would-be client referrals they had provided my name to and why I did not take their condos to rent. One I remembered as I actually drove to the property and realized it does not fit my property portfolio. The second referral I remembered as we only had a discussion on the phone and when I advised them of my fees, they elected to self-manage their condo.
It is interesting that the REASONS for me not taking their friends' properties were not discussed in the feedback with my clients; just that it was MY FAULT that they did not give their business to me.
My clients have a brand new townhouse in a desirable area that I rented within a month at an EXCELLENT rental rate. I'd like 10 more just like it; however, if I take every property prospect call and property that asks about my services, I won't get to devote the time and energy required to farm the area to GET the 10 more units just like it and my property portfolio will suffer as will my current clients.
Saying NO was hard; however, saying it NOW is easier in the long run - for everyone
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
Central Virginia
LandlordWhisperer
View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous
When I have to turn down a referral I always call the referrer and say "Thank you so much for thinking of me. I'm sorry that I'm unable to help Mr So and So, but it really is in their best interest to have a different kind of specialist for their needs."
Good for you.
It is in our best business interest to elect to be retained by consumers that need services within our niche.
Just because it's a referral, doesn't mean it's a good referral.
Kris * I'm going to do that in the future. My meeting yesterday made me realize I should have acknowledged their referrals AND thanked them although I would not feel comfortable telling them why I would not be managing their units.
My current clients were actually a referral from another client who I got from a direct mail of homes for sale in an area I want to manage property in - I have grown my business using direct mail!!!
Wallace- I like Kris's verbage and have used a similar one. Let them know that you appreciate them thinking of you, but it was not in their friends/family members best interest and you directed them forward to help them.
Thanks for sharing. When you receive referrals that are not desired, it is good to turn them over to other agents in the office that need the business.
The secret is handling the situation in a way that everyone is happy.
Honesty is the best policy. But you need to use the best word tracks with the honesty.
Tony
All * agreed. I did suggest another PM to the first referrals; however, the second referral indicated they wanted to try themselves so I did not make a referral. The PM I referred the first ones to had similar reaction as I did after viewing the interior of the unit so I think I made the right call there.
Wallace: I believe that we can never have enough business. Regards,
Wallace:
I like to use the phrase be in a win - win situation, I know the comments that you have gotten from several others state the same thing I would recommend. Be gentle, but firm, and let the person who refer the clients know that your appreicate the business.
Its hard to turn down business but if our gut tells us not to, there is a reason, and hopefully we can live with that reason. Thanks for the post.
Frank * I can get business * I've kissed a LOT of FROGS to get a property management portfolio of good, high-quality rental homes * 80% investors 20% owners who can't sell. Property managers will tell you that we spend 80% of our time with 10% of our property/clients * I elected to break that cycle when I started my current business over 10 years ago.
I glad I wrote this blog. This feedback is FANTASTIC!! Thank you
Wallace:
You have to choose who you are going to spend your precious time with, particularly if you are very busy. I always treat referrals from former clients with kid gloves, but sometimes you just have to politely explain that you are not really going to be able to assist a particular person and thank them very, very much for thinking of you.
I took a pretty much unsalable listing from soneone in my S.O.I. last year. Altho I generated activity for it , it DIDN'T sell ! I think it hurt me in the long run with these folks ! I. too should have just said NO thanks.
Being honest is part of our business. . .If I don't match for one reason or other, I simply go on
Wallace -
Truly, a quandry!
Sometimes, clients referred are toxic, demanding, and don't want to pay your fee. If you turn them down, however, it will get back to the referror for sure - and will that dampen their enthusiasm for sending you future referrals?
My suggestion, in this case, is to immediately call and thank the referror for their referral, but explain that it did not work out, BEFORE the potentially toxic client has his chance to call. Timing is critical here!
These days, you can't just sign on a client likely to give you a big headache, spend all that time and money servicing them, and getting a negative rep anyway from a very unappreciative referral. This will be a far worse review going back to the referror.
You agree?
Please, call or write anytime!
DEAN & DEAN'S TEAM CHICAGO
Wallace, I am glad they still called you, though! We really do need to let referrers know when/why we turn down business -- provided it won't upset them! :-) But your reasons were very valid, and sounds like these clients would understand. A great reminder to follow up with them! Thanks!
Saying no is hard, but doing something you don't want to do is even worse. I too have chosen not to do certain parts of the business, and I am very happy with all the work that I do.
I've had to LEARN to say NO as it totally effects my business' bottom line
I would have turned them down to, but I would have found them another agent and "handed them off" to the other agent. I would have told them I'm not the PERFECT agent for them but I know who is!
Then find a great agent for them, and also go back and thank referrer for the referral and let them know how you handled it, in a tactful manner.
Erica * these referrals were for property management and I did refer them to other property managers and they both choose to do their own property management * like going FSBO only more expensive!
WOW! My First FEATURED post!!! Thanks guys!!
Wallace... first of all CONGRATULATIONS on the feature!!! I am so proud of you - you make us look good in the Property Management Group! Your hard work of contributing excellent quality content has finally paid off!!! I am happy WITH You!
Like you, we too have to weed out. It goes with property management as in any other field. Sticking to your standards is what makes you reputable.
Thanks Diane * you are my inspiration!!!
Wallace, this is a very good point. If more real estate agents were more selective and would learn to walk away from listings, the consumer would benefit in the long run. Good post and congratulations on the Feature.
When I first entered the real estate business and I was interviewing brokers, one tole me that he thought I would make a good agent because I knew how to say no. I'm with you 100%.
That is a double edged sword, we try to go out of our way to accomodate referrals from past clients, sometimes it bites you but most of the time they are the best leads. We like to follow up with the original person and let them know what happened just to nip it in the bud if the person they referred didnt end up working with us.
Congrats on the Feature, Wallace! You totally deserve it. I like this blog, and I'm always happy to read about turning down, or referring out, business leads. If I could only get my wife to understand this concept. I'm still looking for some frogs to love on, as I continue to grow my biz! LOL
Eric * you are the PRANSOM HINCE in the story!!! As we say in NASCAR, it's going SLOW into the turns that allows us to go FAST on the straightaways!!!
Hard concept to get around!
I know of a local property manager here in my town that has had to turn clients away. He is getting calls from 20-30 miles away as well.
Kris' answer was the repsonse I usually give if the referral didn't work out. When your clients send you someone, they just expect it to work out. They work with you, so everyone elese should too.
Good for you Wallace. That comes with experience and is part of the business. Saying no is one of the first thing I teach new agents becuase in the end it only comes back to bite you!
Excellent choice - too bad more agents don't work like that - when I refuse a listing the prospective client is always shocked - they seem to think realtors are begging for listings and will take anything!
I have a number of people who have given me referrals where when I contact the people they really weren't ready or their idea of what their property should sell for is not realistic, etc, but I do always thank the referring party and without specifics, let them know that it didn't work out for the moment. Interestingly enough, I have had success with direct mailings. I think the secret is carefully chosen market areas, but most importantly sending quality information.
I like Kris's responses (number one). I would agree that it works!
Wallace,
Congratulations on your feature, definitely a good post.
Not every opportunity from a referral is going to be a fit. We are doing ourselves more of a dis-service to take something we can't do properly. Let's fast forward here, if you do take a referral and then they complain about you to referring party. That' worse, than if it just isn't right for the both parties at the beginning.
It's all about knowing and working your business model. Also, it's great to understand people and how they operate, some just won't mesh with how you operate your business. That doesn't make them bad, just not a good fit for you.
Last note in this, I agree it makes sense to still thank the referring party and put it simply, like has been said in the comments.
All the best, Michelle
Thank you Michelle * I see where I should have acknowledged my clients who were referring these would-be clients to me and that I will do in the future.
Love the photo of the fox on the back of a horse. I live in NC, but grew up over the mountian from you (Harrisonburg). I don't work in the rental market, but I have never had the questions you got.
Have a great day
I'm going through this myself. I am going to have to call my past customer and thank her but tell her I can't find her friend what he is looking for. I hate it.
Jim * I'm the FOX in the picture HeHeHe
Terri * sometime it is better for everyone
You know what is worth your time and effort, so its best to go with that.
Thank you for the post, i am agonizing how to tell a referrer that I can not help the referee since their view of the market price is 50% higher then the market actually is for thier home.
Just had a client move who I sold her the house she is in, her relocation company wanted to not only take close to half of what I would make, but also weekly reports. My time is more3 valuable than that. Not all referrals are created equal.
Great post Wallace. I find it very hard to explain why I don't take referrals too but it has not worked in my favor if I do take a listing against my bettter judgment; it all matters in the end, however! I have several people who have not said anything to me directly but have talked to mutual friends and not very nicely I might add. I just keep telling those who will listen that I am not going to take a listing just to take a listing. It must fit what I feel is correct from a "clean and neat" category and also and more importantly, the price point must fit the times and the property!
I always explain to the referring person why I did not/cannot help their referral. Most of the time, the referral is from another realtor, and the people have wrong expectations of our area, and they don't end up relocating. There are lots of reasons, but they're not always on us, as a lot of the time it's on the buyers/sellers too.
There are some people who won't turn down ANYTHING - no matter how inappropriate. But I am learning that when my "gut" says "no way" I should listen. In the end it comes down to whether or not taking the listing makes sense - both for me and the client. If I can't possibly service the listing - then I am doing the client no favors by taking it and sticking a sign in the ground. If its too far away or not a sensible fit - I'm not helping myself, I'm hurting myself.
Not all referrals are good ones -- if they do not match what you do , it would not be smart to take them.
Great lesson for us all to give a call back to the referrer to tell them why we couldn't help.
kp
Many consumers, clients, friends and relatives will assume that because we are an agent we will take any listing, buyer client or property to manage. I was once told - it's your job! I told him no I don't have a job I have a business and this is a business decision - no personal offence meant but that's how he took it.
Wallace, good for you that you were able to say no, and having good reasons for doing so.
But, you mentioned in your response to Kris that you've grown your business from direct mail ...would you mind elaborating on that in another post? I think that it's phenomenal that agents can do well and get business from good ole snail mail.
Good post - and I agree that sometimes it will just not be in the best interest of the referred client (or me) to try to accept a referral that just doesn't fit my business model. Great ideas here in the comments for how to thank your client for the referral even if you are turning it down.
And I love your reference to them moving to the "left coast" - does that mean you are on the "right" coast?? And if it means they are heading to anywhere near the Olympia, Wa area, I would be delighted to help them at this end (speaking of referrals :) )
Wallace, it's great to be able to turn down referrals that don't fit your business plan. Congrats on the feature!
Although you are right, sometimes it's very hard to utter those 2 little letters! I recently got a referral (I love referrals!) from an out-of-state agent who has her license in a referral company. Her niece has a property to sell. The agent is a bit upset with me, because I wouldn't take an OVERPRICED listing, nor would I give the discounted commission rate that the Seller requested. I did request that I be contacted to be the SECOND Listing agent on the property, if/when the Seller is able to take my advice. I said "no"!
William * I've started 2 property management businesses from direct mail * mail to absentee property owners in areas where I want homes to manager using the tax assessor's records..
Wallace, you have a direct mail provider that you recommend.
Will * I DO IT MYSELF - create the labels, brochure, folding, stamps, ect.
Wallace - not all referrals are good business. Handling this issue with diplomacy, adn appreciation, is tha challenge.
Jeff
Jeff * I totally agree!!
Great job! Congratulations on your common sense, business acumen and featured post!!!
Don * thank you very much....It made my WEEK!!!