I had an experience with a friend the other day I just needed to
share.  This friend is a successful real estate agent who spends a lot
of time analyzing the market.  Probably better than anyone else around,
he understands what’s going on in our market.  So I was surprised when
he told me (and continues to tell me) the market was strong, sales were
actually up, and the price was holding firm.

Now, my experience is something very different from that.  When I
sold my home a few months back, he told me I should take a low-ball
offer because it might be the only offer I would get (the offer was
about 10% lower than prices in my neighborhood had been six months
earlier.)  I took his advice and took the offer and I’m glad I did. 
Shortly after I sold my home, a friend had exactly the same experience
— about 10% below what the prices were a few months ago.  Last week, my
son-in-law had the same experience — 10% below.

That brings us to the question: What’s going on here?  There are
several possible answers.  1) The price in our area has dropped about
10% (which is what it looks like to me.)  2) This friend encouraged me
to take less money to ensure he got his commission at a time when maybe
he needed money (unlikely.)  3)  He’s clueless about what is going on
(also unlikely.)

At any rate, what we have here is a case of decreased credibility. 
What my friend says is happening in the market isn’t squaring with my
own experience (and that of other family and friends.)  Eventually I
began to question everything my realtor friend was telling me.  I still
question what he says.  Until the whole thing gets resolved, my friend
the realtor has a credibility problem (not just in my eyes, but in the
eyes of others, as well.)

I think perhaps my friend is trying to be optimistic about his
industry.  He’s trying to shore up sagging sales (caused by a national
down turn in real estate) by  saying, “all’s well,” when it clearly
isn’t.  There’s a point where optimism gets in the way of reality.

How differently I would have perceived my friend had he said, “Well,
Allan, this isn’t a great time to sell your home if you don’t have to. 
Prices are down about 10% right now, but if you have to sell, I’ll get
you everything I can.”  It’s not his fault the market is soft.  It’s
not his fault the prices are down.  It’s not his fault I just lost tens
of thousands of dollars.

It is his fault, however, that I question his credibility.  In his
fear of admitting a bad situation in his industry, he placed a wedge
between us.  Whereas I used to take what he said at face value, I now
question what he’s telling me.  Filtering through what I already know
to see if I can believe him.  What a shame.  Would I use him again if I
had a home to sell?  I don’t know.  Where I did so last time without
giving any other options a consideration, this time I’d have to think
long and hard before retaining my friend.

What have you done (if anything) that might have tarnished your
credibility in your business?  Hopefully nothing.  But if there is
something, fix it right now.  These things are insidious.  They grow
like a cancer.  The only way of getting rid of it is tell the truth and
let the chips fall where they fall.  Most people are a lot more
understanding than you give them credit for when you deal with them
honestly.  Don’t let a lack of credibility damage your business.