Real Estate Mom Post #4 (Competition)

Well it has been a long and tough week for me. I had my best 1st quarter ever in 2010 and was starting to get a little anxious about my second quarter slow down, and then the phone rang. The call was from a local bank for which I have listed and successfully sold REO properties. The caller asked if I was available to give the bank list and sale price opinions for 3 properties they acquired by deed in lieu of foreclosure. Then he warned me that the dollar volume of the properties is significant and therefore he is required to get 3 opinions on price and the board of directors will choose the listing agent. It turns out the combined property values are about $3 million dollars as the properties are located on a local lake and two are luxury properties. Keep in mind this is Wisconsin and that is a significant dollar volume for the area.

Needless to say I was pumped! I have successfully listed and sold properties for this bank and they have been happy with my professionalism, service and pricing accuracy. For me this was like the perfect storm. I have spent most of my seven years in real estate working for firms that specialize in high end properties and have extensive lake property knowledge. When the market slowed I worked like a dog doing BPO's and broke into the REO market which has helped me weather the storm of slow housing sales. I took this project on with more ambition than any other project.

The fact that I was in competition with other agents fueled me even more. No one would beat in the area of presentation data and knowledge and I would make sure of that. However politics is another matter. I knew one of the agents I was competing with was a board members son. However, his market area is in a different county where mine is the area of the properties, he does not know the lakes like I do, nor does he have an extensive marketing plan for luxury properties or experience with luxury properties. He is the owner of a small firm I work for a national firm with more web exposure and name recognition.

I had a short deadline so I worked virtually around the clock preparing property and lake data and statistics, custom marketing pieces and a comprehensive marketing plan for these properties. I knew that if I did not get the listings it would not be because I did a poor job on my presentation.

So Monday comes and I had a meeting planned to go over my marketing presentation with a detailed explanation of value and sale price along with lake data and what attributes to the different values around the lake. I prepared a separate binder for all three properties. My contact at the bank was impressed and acknowledged my organization and knowledge of the comparable sold and active listings and how they affect the values of the subject properties. Of course I was asked if that was the best I could do on commission, which luckily I had left a little negotiating room considering the dollar volume of the properties. Then he told one of the other agents would list the properties at a lesser commission and of course that included lowering the selling agent commission side. The crazy thing is I was already below 5%, I explained the detriment to lowering the selling side commission and that the national and local exposure the properties would get in my marketing plan I can confidently negotiate I higher selling price of the properties that would more than compensate for the little difference in commission.

At this point no other agents had met with him personally to go over there marketing plan nor had anyone given him a price for the properties...as you know from above only commission had been discussed by the one agent and the board was meeting the next day.

I waited, completely drained and with the knowledge I did my best. Of course I followed up and when the return call came in I was not totally surprised. The board decided to list with the other agent (the son of the board member) and supposedly due to commission. I was told by my contact that he pushed for me and felt that I would provide a far superior presentation and service to the properties.

Yes, blood is thicker than water. In business I cannot see how a whole board can be swayed by the interests of one in sacrifice to the best interests of the business. I know with faith and in my heart that I would have been the better choice and that there is a master plan that has not been revealed to me yet as to why I am better off without the listings. In time it will be revealed to me and I will write about it. For now I say, "Next!".