Crazy Sh*t In Real Estate Episode 79: Gary Balanoff

Summary:

In this episode, Leigh’s guest, Gary Balanoff talks about the importance of managing the relationship between developers and agent—Gary will also share his crazy story about the time an indecisive couple asked him to see more than 80 homes, before making a decision that would cost him his commission and a little bit of his sanity.

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Time Stamped Show Notes:

00:39 – Leigh welcomes Gary Balanoff
00:52 – Gary has been in real estate for 33 years
01:10 – Gary worked as a broker for 18 years, and has lasted this long because he enjoys the process of working with buyers and sellers
04:06 – A pastor was moving to town and needed a place in one area but the availability wasn’t great
04:20 – They looked at more than 40 homes but there was always something wrong with each place
04:38 – After looking at all the homes, the pastor eventually decided to call it quits—they decided to rent so Gary set them up with the rental manager. However, Gary kept looking
05:02 – After 6 months, they resumed looking, and considered another 40 homes—more than 80 total now!—but again, told Gary there was just something missing in each home
5:26 – Gary said those were the only ones that fit in their price range and they decided to rent for another year
06:11 – Two months later, Gary closed a deal with a young couple and was welcoming them to the community when he asked if they had met their neighbors—they said YES, and dropped the pastor’s name!
06:48 – Three months before that, Gary had shown them that particular home
07:04– Gary went to the model center and asked why he did not receive his commission
07:28 – He was told that the couple signed the contract 40 days after they signed the 30-day registration period
07:51 – As a new home builder, they need the cooperation of agents
08:20 – Two months after that, the company declared bankruptcy and the builder went out of business
09:02 – Leigh says buyers and builders do not understand what value a realtor brings when they are buying – they serve as a 3rd set of eyes and ask the questions others may not think to ask
10:01 – Gary had a chance to work again with the young couple
10:40 – They spotted a new development and told the agent they were working with Gary and the agent called him
11:01 – Gary was present for the actual contract writing to make sure they got everything they were really looking for—he also helped them with the move-in process and Gary got an extra bonus on top of his regular commission
12:01 – The builder was kind enough to recognize that Gary was working with them and put him on the contract
12:15 – The bottom line is to be proactive in your relationships with all people
12:37 – Leigh says the main task of an agent is to make sure the clients is protected, that they have quality construction and a good location
13:18 – Gary says to always do the right thing by your client—if you make sure you take good care of people you’ll do well
14:38 – Gary always asks his client how they want to be represented
15:19 – Gary thinks there is a decline in the overall ethical standards as people are leaning on the state standard of transaction brokerage and clients do not get the first-class service they deserve
16:01 – Mess with a client’s finances, and you’ll get sued (and lose)
16:36 – Gary says he knows a productive realtor who is easy to work with, Gary always asks if they have a flexibility in price and the guy says to give him an offer and he can make it work
17:18 – They got a deal for $255k from the original $275k
18:18 – Gary says the guy was so willing to work with him, he thinks he might be a marketplace farmer, taking advantage of sellers
18:32 – Leigh offers that the guy might have been given instructions by his client that time was more important than the price, but agrees there are agents who will short sell their clients to get the deal done
19:04 – Gary says he is convinced the guy could have gotten a higher price if he was not so obsessed about getting the deal done
19:42 – Leigh says we never know what happens behind closed doors and all we can do is focus on our side
20:43 – Gary says people’s motivational status is a roller coaster
21:02 – People will change their mind with deals often and he has learned that people who have the most to lose always lose the most
22:08 – Those who are going into foreclosure will take the first offer that comes along and forgo any negotiation
23:16 – In a negotiation, if you are in the weaker position, agents can only do so much
23:57 – Check out garybalanoff.com or call Gary at 407-366-9797
24:24 – Tweet Leigh Brown for your very own crazy story in real estate

3 Key Points

As a new builder, you will grow your company by working well (ethically) with agents—fail to do it, and you will fail as a builder
As an agent, you must be proactive in all your relationships.
You never know what happens behind closed doors so don’t make assumptions about other agents.

Credits

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