I’m saddened by an unfortunate experience with my clients.
And it happened because of the four difficulties that come from working with private sellers.
I share the story to encourage or equip agents when dealing with private sellers. Or perhaps to advise them to think again. I also share this story as a warning to sellers so they can experience success instead of loss.
Recently, a lovely young couple asked me to help them find a very specific kind of property. As soon as they described what they wanted, a property came to mind. It was a perfect fit. There was just one problem. It wasn’t listed.
I remembered though, that the owners had wanted to sell it in the past.
Allow me to stop here to tell you that I have helped my clients purchase for-sale-by-owner properties before. Every one of those experiences was painful either for me, my client, or everyone. So I wasn’t altogether excited about repeating the process. Still, the property was absolutely, completely, irresistibly perfect for my buyers. So I approached the owners. Perhaps they were still interested in selling.
What soon followed were four of the biggest, and most common, reasons that I, and many other agents, would rather avoid working with private sellers.
Five Reasons Agents Avoid Working with Private Sellers
Working for Free for Strangers
The thing about private sellers is that they don’t know what they don’t know. Like their house value for starters. How do they know any offer an agent would bring would be fair? The buyer’s agent often ends up educating, advising, and even assisting the seller without any compensation or even appreciation.
In one case, I advised a seller to get an appraisal. But I sure wasn’t about to do it. Conflict of interest much? In the interest of transparency and unbiased fairness, (and helping move things along for my buyers) I arranged and paid for an appraisal out of my own pocket.
Not only was I not compensated for the expense or even thanked for going the extra mile to be very clearly on the up-and-up, but I was treated with contempt for it. Unfortunately, this is a common thing with private sellers. Which brings me to the next point.
Being Treated Like a Slave
For some reason, people think a buyer’s agent should work for free. This is especially true for private sellers.
One couple who had once upon a time listed their house, built in a 5-6% commission for the selling agent. When I approached them with a buyer, they fought with me about payment, insisting I should get nothing for brokering the deal.
Basically, they think they can bully agents. There’s no relationship – not a personal one, and most certainly not a professional one.
Being Treated Like a Murder Suspect
Private sellers tend to treat buyers’ agents like they’re selling mismatched knives out of a trunk.
I’ve stood on the front stoop in winter, without being invited in, and explained how my buyer wants to buy their house, only to be looked over with a raised eyebrow. Do they think I’m trying to trick them out of the deed to their house?
One time I presented my buyer’s conditions, one of which was a satisfactory water test. I even did the sellers a favor by furnishing them with the sample kit. Their response? Accusation.
“You’re just doing this for the buyer’s advantage!” they said.
But it’s a standard requirement from the bank. They won’t even fund a mortgage without a water test having been performed. Besides that, I’m not actually a selfish creep who’s out to get you. Everything I do, I do for the benefit of both parties. Thanks for the implication, though.
Look, I can understand why sellers would feel guarded and protective. Between all the door-to-door scams, robberies-by-phone, and fraudulent emails happening these days, a person needs to be careful.
But that’s what seller’s agents are for – to protect sellers from any creepy, horrible, out-to-get you agents who try to bring buyers for your house.
Directing a Soap Opera
The thing about dealing with people is that everyone is dealing with something. Maybe they’re selling because of a divorce, or illness, or even death. Maybe there was a job loss and the financial situation is critical. Maybe the couple just doesn’t agree on anything, including the price, or whether to sell at all.
Wading through those waters is generally the seller’s agent’s role, and we’re happy to come alongside.
When there’s no seller’s agent though, there is no buffer between the seller’s drama and us, the buyer’s agent. Suddenly we have to navigate the personal stuff on both sides of the boat. It’s tricky, it’s demanding, and actually it’s pretty doggone impossible, given the previous three points.
The Biggest Deal Killer of All
This one’s not specific to private sellers, but they sure can sport a streak of it. The biggest deal-killer? Greed. Too many deals have fallen through and houses lost because of plain, old fashioned greed.
In one case, my buyers had offered the private seller Thirty Five Thousand Dollars more than the appraised value of the place just because they wanted it so badly. The seller’s response? They wanted more. They wanted an additional Twenty Five Thousand Dollars.
Allow me to gaze into my crystal ball here for a minute and tell you what’s going to happen to them and anyone else who overestimates the value of their house and refuses to accept less.
Ah, yes. I see it. A cloud looms in the distance. The house stands alone and sad looking, its original owners pining for the money they will never, ever see. Oh, and there – I see the banker raising an eyebrow in confusion. He shakes his head and snickers at the idea of lending more than a property is worth.
As long as sellers insist on getting more than a fair, sensible, and realistic price for their properties, deals will continue to die at the feet.
Sadly, the young couple I represented fell victim to some of these private seller behaviors. My buyers were respectful, flexible with the seller’s schedule, accepting of the seller’s terms, and even generous with their offer but, as often happens, the deal fell through. They were unable to purchase their dream property.
The not surprising final outcome.
My buyers found a much more appealing home that offered them way more value for their dollar. They have moved in and enjoy their new space.
The seller listed their property and eventually sold it for less than the offer that my buyer wrote and they paid a full commission for the sale.