Expensive Mistake?

In Saint Louis, it is not the standard for listing agents to meet and accompany the buyer’s agent when the buyer’s agent is showing a property to a client.  However, it is a fairly common practice for many listings in the higher price categories.  There are some valid reasons in favor of the practice, but from my experience working with both buyers and sellers, sellers should be cautious:

1.      When working with a buyer, it can make scheduling more complicated.  Our buyers’ schedules, particularly on the higher end, are complicated.  Add in having to align with a listing agent’s schedule (or more likely their assistant) takes more effort and usually multiple phone calls.  Complicated showing instructions = fewer showings.  Properties that are easier to show may be shown sooner and a buyer may fall in love with one of those properties and never bother to see yours.

2.      When I represent a buyer, it is I who have the relationship with the buyer.  My understanding of the buyer is FAR MORE IMPORTANT than the listing agent’s knowledge of the property being shown.  If there are questions or more information is needed, we will cross that bridge together later.  There may be a James Bond-style shark tank underneath a retractable floor, but even if those sharks have laser beams strapped to their heads, I will call the listing agent if we have questions.  Seriously though, in many situations, an “outsider’s” presence is distracting.  A buyer may not feel comfortable voicing their reactions to a property.  Or may not even feel comfortable truly experiencing the property and projecting themselves into it.

3.      Lastly, and worst of all, some notorious listing agents who insist on meeting for showings simply cannot resist the temptation to open their mouths.  I have seen listing agents carelessly offend prospective buyers because the agent spoke the wrong thing at the wrong time, were rushing or (more likely) slowing up the pace of the showing, or were asking too many questions of the buyer.

When wearing my listing agent hat, I am reluctant to employ this practice for the same reasons listed above.  Anything hindering a strong, timely sale is to be avoided. 

Not long ago, the seller of a million dollar property in Town and Country asked me if I should meet for showings of their property.  I ran a report on their market segment.  I went back 3 years and pulled all closed sales.  I then looked up in the MLS the showing rules that were in place for each and identified the properties where the listing agent had to meet for showings .  Comparing “meet-for-showings” to the entire group, I found that “meet-for-showings” finished with almost the same Sold Price to Last Listing Price Ratio.  However, average days on market was significantly longer and Sold Price Per Square Foot was lower – indicating that “meet-for-showings” can be an inferior approach.  Had I compared “meet-for-showings” to “SUPRA access” (instead of just comparing to the average), I’m sure the difference would have been even more pronounced. 

Why do listing agents continue to operate this way?  There are some valid reasons for some properties and limited seller situations;  however, in many cases it is just a matter of tradition or a listing agent with too few arrows in his/her quiver.  In any case, if you are a seller, make sure you fully consider this aspect of your marketing plan and discuss the pros and cons with your agent.