You only have so much time to divide among your prospects and clients. Sometimes you simply have to make an executive decision that one client is going to pay off more than another client, and you adjust your workload accordingly.

For example, you may rearrange your schedule to accommodate a referral you received for a relocating family that needs to find a home in the next two weeks. So to make time for what appears to be a sure thing, you put the couple who have been looking for homes every weekend for months on hold. One weekend without you won't kill them, you reason. The next week, you can pick them back up, and have two closings instead of one.

That's only good time management.

But it is equally good time management to dump clients who are never going to pay off. No matter how much time and money and effort you spend on some people, what you go through to serve them will never be worth the costs.

Whether you are new or have years of experience, you can recognize these dump candidates if you simply learn to listen to your own instincts.

Your first clue is that the client will let you know from the outset that he/she will be difficult to please, and it usually gets worse from there. It starts with a stand-offish attitude that conveys a disdain for what you do, or a snide comment about high commissions agents make. The client is critical or suspicious of everything you do, and then accusations against you, your character, your industry, and so on begin. The client is stiffer and angrier with every encounter until you feel there is no way to salvage the relationship. So you offer concession after concession in the vain hope of trying to make this impossible-to-please person happy. When the deal is done, after you have lowered your commission to below-break-even, or paid for repairs yourself, you feel taken to the cleaners.

What you don't realize is that you fell for the oldest negotiation trick in the book. All the client has to do is feign unhappiness and a service provider will bend over backwards to the point of losing money to make him/her happy. This technique is used for everything from getting free meals from restaurants to getting you to undergo a commissionectomy. All a client has to do is make the service provider feel as if he or she is the one in error.

So why do Realtors put themselves through the damage? Most Realtors will go ahead and help a troublesome client because they can't really know if this is that rare impossible-to-please client who can be turned into a loyal, life-long advocate. Isn't that worth a shot?

Even if they don't buy that particular fantasy, many agents will reason that something is better than nothing, or that dumping a client isn't being "fair." If an agent has signed a listing agreement with a client, the agent may feel that the client might sue for nonperformance if the listing agent were to back out.

None of these justifications will save you from a litigious client, says Arizona attorney Robert Bass, who defends real estate licensees in lawsuits and license complaint cases. But listening to your instincts can.

"Way too often my broker clients tell me," says Bass, "'You know, there was something about this guy that gave me a bad feeling...' They tell me what caused them to feel that way, and usually finish up by saying, 'I should have gone with my gut!'"

According to Bass, attempting to please the difficult, reluctant, petulant, or belligerent client can land licensees in trouble. The more demanding and upset a client becomes, says Bass, the more likely it is that the client will file a claim or complaint.

So how can an agent get out of a situation that looks like it is going to end badly?

Contracts between real estate professionals and real estate clients are called personal services contracts, points out Bass. "Check with a lawyer familiar with your state laws on canceling contracts," suggests Bass, "but I always advise my clients and students that, if you get a bad feeling about someone, go with your gut. It is OK to fire a client. So you scrawl 'CANCELED' across their listing and give it back to them. What are they going to do? What are their damages? You are the one who is out of pocket all that time and money."

What if you have no contract with the client? "That should actually make it easier to jettison them," says Bass. "After all, most claims and complaints are filed by buyers."

Could this leave you open to a charge of discrimination? Bass recommends that all agents periodically take a course on the Fair Housing laws. "Refusing to do business with someone is not illegal unless it is for an illegal reason, such as racial prejudice," advises Bass. "Last time I looked, disagreeable SOBs are not a constitutionally protected class! You can gently explain to them that some personal issues have come up in your life, and you find that you are not going to be able to give them the kind of service they deserve."

And for those agents who simply want to hedge their bets that the client might pay off after all?

Bass suggests taking advantage of the referral system. "Call the guy who stole that listing from you a while back," laughs Bass, "and tell him you've got a client referral for him, and to send you a commission agreement. This is best of all worlds. If you're right about this client, the other guy will get the grief; if you're wrong, then you still get paid while investing no further stomach acid."

What about the person who starts out an angel and turns into the client from hell?

"While some of my clients saw the storm clouds brewing," says Bass, "others get totally blind-sided by a client they thought was a real gem. No matter how friendly and sweet that client seems, never let your guard down. Always document your transactions thoroughly; follow up your disclosures and confirm your conversations in writing. And never forget: today’s client is tomorrow’s plaintiff!"

Suggests Bass, "No client and no commission is worth getting sued or losing your license over. The lawsuit is bad enough -- what it will do to your life (and your E & O premium) is sickening."

Published: November 25, 2003

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.