Published November 2003

Successful agents can assess others’ motivation

In an interview with a candidate for a commercial leasing/sales agent position at my firm, the usual subject matter was covered: education, experience, etc. The candidate, however, asked me a question that I thought was as insightful as it was provocative: “Tom, what’s the difference between a successful agent and one that isn’t?”

“The ability to assess motivation,” was my reply.

“I’m confused,” the candidate said, assuming, I suppose, that he was expecting something else from me like “hard work” or “it’s who you know” instead.

Successful real estate agents know the technical side of the business: how to write up a letter of intent, how to write up a purchase and sale agreement, how the escrow process works, etc. So these aren’t differentiating skills. No, the difference between the successful agent and the others is the ability to assess if the parties are motivated enough to move some distance from where they want to be to get a transaction done.

If buyer and seller, for example, are far apart on asking and offering price, the agent must assess who is most motivated and by how much in order to make the right, next move on their client’s behalf. It’s more art, really, than science. It’s often a “feel” sort of thing, say most.

Each real estate transaction takes on a certain flavor of its own. Good agents have an ability to determine early in the process if the parties are of one type or another. Some people like to negotiate; some do not. Some operate more out of emotion, others out of logic. The agent has to measure all of these factors to navigate the hoops through which any deal must jump in order to happen.

In the end, it’s an assumption that the parties involved can only go so far from what they want under any circumstances. Good agents don’t waste a lot of time on potential transactions that just “don’t get legs,” in other words. Some deals are just not going to happen at this moment in time.

Wasting time on these when there’s no potential transaction and resulting transaction brokerage fee is just that: a waste of time. The role of the real estate agent is, in itself, a useful tool in assessing motivation. As a third party to the transaction, the agent must learn why the client wants to buy or sell a particular property. That understanding helps the client, oftentimes, really assess their own motivation, and the agent is better prepared to enter into negotiations on their behalf.

Good agents can visualize how those needs are then applied in the marketplace, and a determination can be made early in the game whether there’s a high or low likelihood that a transaction could occur.

Tom Hoban is CEO of Everett-based Coast Real Estate Services, a property management and real estate advisory company specializing in multi-family and commercial investment properties. He can be contacted by phone at 425-339-3638 or send e-mail to tomhoban@coastmgt.com.

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