Thread: Representing a friend?

Here's the issue with a lot of people be they clients, friends, family.

Unrealistic Expectations.

I would outline on paper exactly what you are going to do and when (calendar dates). If you put that you will advertise the site in the local newspaper on such date and that you will provide a Video Production and listing for the home on such date that you stick to that. Showing that you've done due diligence and skilled work is key.

With the outline agreement it should state that if the home does not sell within the first "x" days with the pricing chosen then a price adjustment will have to take place.

This way you keep it business and you've followed what has been agreed to marketing wise. If a home doesn't sell it is either in the marketing and/or the price (generally its the latter). You can get rid of the first issue by showcasing that all marketing options have been exhausted and the Seller runs a risk of being left on the market.

Proactive is the key. Let them know upfront that you may have to lower the price if the marketing options you have provided do not work. This is usually the biggest issue. I also have pre-inspections on a home so that the Seller understands up front what issues the Buyers will bring up.

I've never had a problem with a friend but I have had issues with Family members that think they know what they are doing and don't listen to reason. ie they take their home value advise from Zillow (ug!) rather than proven local data which turns out to be correct (and they lose more than they should have by not doing it right the first time).

Best,
John Perkins
BusinessVideoTour

The success/failure of this arrangement will depend entirely on two things: 1) you and your friend's personality types and relationship, and 2) your abilities as a realtor. I don't recommend mixing personal affairs and business, but if you and your friend are very close and can shrug it off rather than point fingers if the property doesn't sell quickly and/or there are snags along the way (which there almost always is), then I think you should be fine.