Wednesday, June 29, 2016

Is There a Better Way to Deliver Bad News? (Repost)

SO.... You Got Some Bad News.... Now What?

Real estate will always be full of ups and downs. There's the thrill of finding the perfect home for your client, followed by the news the sellers JUST accepted another offer.

Hopefully you and your client's lives have been filled with more good news than bad.

But what do we do when the uncomfortable time to deliver bad news arrives?

The news that the buyers loan was not approved? News the appraisal came in below contract price? The news how during the inspection, it was discovered the entire basement is full of mold and the foundation is bad, and both heat exchange units are cracked? The news the buyer is cancelling the contract the last day of their due diligence period…for NO SPECIFIC REASON?

Or what about this one…It’s 2 days before closing and you have to go to your relocating buyer to advise them the closing attorney just discovered an equity line on the property they are purchasing and the seller is now is a short sale position…lacking the funds to cover the deficiency…Is there any possible way to legislate damage control in the delivery on these types of messages?

The answer is yes:

But first go back to when you first met your client. Pre-education is paramount! Let your clients know beforehand they always need to have a “Plan-B” because “Stuff” happens… and when it hits the fan if they have a good Plan B it will not be as devastating.

As a former Marine we had a saying ...“adapt and improvise” … we always had a Plan B, C, and D for every mission for when Plan A fails…(notice I didn’t say “if” Plan A fails…there is going to be disaster from time to time…that is just life…so be prepared)

Next: The significance of the when and how of delivery:

When: As soon as possible! Delaying the delivery of bad news is never a good choice. Plus it adds the advantage of time…Time to initiate their Plan B, or in a worse case develop one.

How: Make it personal! The delivery of bad news is always better in person when possible. Don’t hide behind an email or text…if you can’t be face to face, then do it voice to voice… (But tell them you wanted to do this face to face).

Never hide the facts…Give them all the information you have and if they have further questions find the answers promptly. Then follow up and follow through with what you say you will do. Get It Done!

Always look for a silver lining…and always…ALWAYS come to the table with options for your client. Bring them solutions to their problems and you will become their hero.

My Grandma used to say “if you have to serve rotten potatoes… pass them the whole bowl of gravy…and it better be good gravy!”. Be upbeat… but be ready for some fall-out, (there will most certainly be emotions)…The most common first reaction is anger so be prepared to explain the options they have available...if you aren’t prepared with multiple solutions, then fear will set in…so do your homework.

NEVER throw the other side under the bus….don’t place blame… it will only fuel your clients’ emotions. Blame usually causes the client to want to step away from the pain… where solutions will help move the transaction forward.

And finally: No matter how disappointed your client is…you want them to leave this meeting feeling you have done everything you can do to improve a bad situation…and that you are on their side 100%!

We hope you found this information valuable…to learn more about one-to-one real estate production coaching visit www.RealtorRescue.com


Eddie Brown

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