When Leasing Might be Preferred to Selling


A tough spot for homeowners, and for you

You might have experienced one of those listing appointments, where it suddenly dawns on you that it’s going to be a tough property to sell, and that the owners are going to lose money even if it does sell. You might have felt guilty when you quoted your listing commission, knowing that you were going to make more money on the sale than your clients could ever hope for. And that twinge in your stomach came when they signed your listing agreement, because you knew that you’d be spending time and money on a listing that would probably not sell, and that you’d have nothing but bad news whenever they asked if you had any interested buyers.

Some agents avoid, or even walk away, from those situations. They reason that those listings would be unprofitable and troublesome. Other agents take on those lost causes because they know the homeowners, and feel obligated; or the agent doesn’t think she has the right to decline a listing. And a few agents will take the listing without thinking about the consequences, but end up with a bitter experience and a broken relationship with the sellers.


Renters as a new source of business

Sometimes there are more renters than buyers in a particular market. But you might not be aware of that because you thought that working with renters is something only rental agents do—not licensed real estate agents. But in some markets, there are licensed agents who work only with renters and owners. Leasing commissions are generally lower than selling commissions, but the really good news is that leasing usually takes much less time than selling real estate (leasing transactions are not contingent on appraisals, financing, or title clearance), and the timeline from a signed lease agreement to getting paid is far shorter than for real estate closings.


Fools have rushed in

Unfortunately, some agents and brokers have entered the residential leasing business with no more expertise or knowledge than a FSBO has for selling. That can result in poor service at least, and legal problems at worst. While there are many topics unique to leasing, the good news is that you can learn them in our leasing course.