To work with friends, or not to work with friends ... that is the question.
Real estate is a highly emotional transaction. Even in the best of circumstances, I find it's rare that there isn't one point where things get a little uncomfortable and contentious.
You've been there. Maybe tempers flare during negotiations, or before you even take the listing, you get pressed on commission. Now, imagine it's a good friend of yours. Is it worth it?
Is your friend known to be emotional or are they a savvy, seasoned businessperson? What is their threshold for the level of stress, anxiety, and uncertainty that comes along with moving? After all, it's one of life's most stressful events next to marriage and loss of loved ones.
There is a lot on the line even beyond this one particular transaction including the potential to tarnish your sphere of influence. People talk and word gets around. If the deal goes south and your friend assigns the blame to you, whether right or wrong, you can bet your bottom dollar each and everyone of your friends will hear about it. The worst part is that you won't even be present to defend yourself. Social and professional nightmare, right?!
Here are my Pro Tips and suggested considerations below:
By no means, push for a particular outcome during the transaction. Doing so will make your friend/client feel as though your interests are not aligned, even if they are. Only speak in terms of what's in their best interests and let them know you're perfectly fine if they decide to not sell altogether. I find it helps to remind folks that you're on the same team in moments like this. Let them sleep on it - whatever it takes to decompress the situation.
Stick to the facts and figures. Comps, # of showings, # of offers don't lie. Don't go anywhere near the qualitative aspects of their home. You'll find yourself in the gray with potential to offend your friends.
Manage expectations. This means having the sometimes uncomfortable conversations upfront before you start. Remind them that 'we are friends first" and that's what is most important.
Give a friends and family discount if you can. It's a nice gesture and I promise you they expect it. Think of it as word of mouth marketing that will come back tenfold. It also gives you an alibi that you started off on the right foot.
Lastly, if you're on the fence, refer it to a reputable colleague and reassure your friends that you'll keep close watch over the process. Folks without business experience, or experience in real estate, are bound to get frustrated and you'll be the target merely because they don't understand what's going on and feel victimized. Take 25% and remain friends - win/win.