What red flags indicate not to work with a potential client

Question

Obviously not a popular subject here on BP, or in general, but it is one of importance nonetheless, I believe.

This stems from my very first listing appointment ever and a FSBO who asked about any other names I had & stated they google searched me. This was after they requested I send over a copy of my license, which I did, and then I sent a business card with my contact info.

This seller has also over-valued their property by quite a bit. Doesn't want any recent comps because "wife's cousin is a Realtor in Oregon who has buddies here locally who can send him MLS data which he send to me." Believes it's worth 430k in a neighborhood of 300-360k. Gave arbitrary "values" per square foot to come up with his selling price. Hasn't updated the home, except for carpet, since 1982.

On another note, he openly admitted to "checking out" my personal FB page, which is fine, but then asked if I had ever lived in Michigan or Alaska. I said no. Seller: "Oh.... I saw a tag from those places."

Now it's starting to get weird.

Although this is a lead my gut reaction is to steer-clear of this seller. So, what do you look for or what are some tell-tale signs to bypass a lead based on their actions or other observations ?

Mindy Jensen · Answer

@Marc Anthony, it's not really anything tangible, more of a gut feeling.

I ditched a client after my gut kept saying "She's high maintenance" Turns out I was right - she got a property under contract, then walked. Property #2, same. Property #3, same.

She ended up under contract SIX times before finally closing.

I am fortunate to have the freedom to turn down clients I don't want to work with. But when your gut says no, listen.

Christian Manhard · Answer

@Marc Anthony

I’m not a realtor but I am a contractor. I can usually tell from my first meeting with the client if I’m going to work with them or not. From the sounds of this client when they don’t get an offer that they like (which it seems like they won’t from what they want for the property. $70sqft for wood panel basement!) I will bet they ask you to take less commission on their property. Or if they don’t get any offers they will blame you. They have already found you and stalked your social media and it would be real easy for them to troll you and your business now. There are always more clients!! I would pass my friend.

Irene Nash · Answer

Hi @Marc Anthony,

Very helpful question you raised, seeing as there's so much incentive to work with all prospective clients and disregard red flags. (And of course, sometimes we misinterpret red flags one way or the other and it ends up being a learning experience.)

I personally would be making a quick shuffle towards the exit. The comment about local agents sending him MLS data when you know he's way overpriced indicates that a) he is sure he's right and doesn't actually want your input (even if he says or even thinks he does), and b) he's getting poor counsel from other agents regarding how much expertise will be helpful to him - unless he has already spent years and years showing houses to buyers, hearing why those buyers will or won't buy the house, and analyzing MLS data to see why properties did or did not sell, in which case he has a good background.

The FB questions verge on the odd side - I might check out a prospective tenant's or contractor's social media pages seeing as that's someone whose trustworthiness is going to directly affect my life, but the questions he asked about it sound like they're meant to tell you how smart he is (aka, how much he actually does not need you... to list a former FSBO... which is significantly overpriced... :)

Good luck, would be curious to hear what you decide.

Steve K. · Answer

@Marc Anthony refer them to a more desperate/patient/greenhorn agent and get 25% of the deal for doing basically nothing. No risk if no sale. Well I guess I shouldn’t say no risk, as you may sour your relationship with the other agent, and they might return the “favor” one day ;) Sounds like a tire-kicker though, I’d probably find the best way to bow out now, unless you’re just looking for a learning experience/deal under your belt/good story to tell at happy hour.

Timofey Kramarev · Answer

@Marc Anthony

I’m fairly new to real estate.

Here are a few signs it’s time to let them go.

If you know they’re going to waste your time don’t work with them.

If it’s a buyer, make sure they have proof of funds. If they don’t have it or pre approved for a loan. Don’t work with them.

If it’s a seller, if they too attached to their property and have mixed feelings about selling it. If they refused all offers even reasonably offers. It’s time to let them go.

Marian Huish · Answer

I find these types only get worse when it comes to negotiating a contract...  I've brought one difficult seller I had 3 different offers that she refused to even counter on.  Clearly the property was over-priced as reflected in the low offers received.  The seller wouldn't budge and we ended up taking it off the market without even a 'thank-you'!  I would make sure you're aware of their financial situation or motivation for selling-   And just as a general rule, FSBO's are often difficult as they have the attitude of wanting to do it themselves- but clearly came to you for assistance.  Best of luck @Marc Anthony and chalk it up to experience and opportunity to get your name out there for marketing purposes.  You'll find that each sale has it's challenges-

Nathan Gesner · Answer

They sound difficult. It may go well if the sale goes without a hitch, but it's more likely to stay on the market too long because they've over-priced it. Then they'll start blaming you or demanding more work. Pretty soon you'll feel obligated to stick it out because you've already put so much time into it...

Better to walk away now. Just tell them you don't feel you're a good fit.

Marc Roberson · Answer

Just might.

I believe it's been on since mid-December and yes he insinuated he'd want to have it gone by Spring because their new house, in a different part of the country, is nearing completion and they are wanting to sell this sooner than later.

Also should note that those pictures I was tagged in were clearly outdoors, one in the forest while snowing and one on the side of a mountain in Alaska. I doubt either would indicate I "lived" there.

While giving me a tour I did get a weird look from him once. He also hesitated before answering when I asked what profession he had retired from years ago. Also his whole downstairs (basement) is wood-paneling which he valued at "70 bucks a square."

It's probably obvious what I should do at this point but still I am just a little curious myself what others here would have to say..

Marian Huish · Answer

Run!!  @Marc Anthony!!

What red flags indicate not to work with a potential client

Most Popular Reply