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Are you acting in the best interest of your client?

I'd just like to say a few words about always acting in your client's best interests. Many agents I've seen over the years are more concerned with their paycheck, than with the best interest of their clients.

Examples of this are steering clients to a certain house because the commission is higher than other listings (while in itself, this isn't necessarily wrong... the problem comes in when the agent begins to tell the client that the home in question is a better buy than the others when in fact he/she is just saying that to generate interest in the home).

Another example would be if a client brings up a home they have great interest in (maybe that they've found online), and the agent knows the home to be in an undesirable neighborhood... but doesn't tell the client this because he/she can already see their commission check from the closed escrow.

I'm here to tell you that if you always consider your clients your top priority, you'll benefit tenfold in the long run. Believe it or not, they can read you like a book. If your intentions are not completely honorable, don't think it's your little secret.

I hope this gives everyone a bit of food for thought.

I am an experienced Short Sale Agent who regularly assists sellers in Corona & Riverside, California. I have contacts in other surrounding cities which I can refer to you, but I believe in working with ONLY those sellers I can help most effectively. If you own in Riverside or Corona, please give me a call.

Cameron Novak
Corona & Riverside Short Sale Agents
The Homefinding Center^TM
Corona, California
951-212-7479

Posted by Cameron Novak - Featured Short Sale Specialist on 03/28/2009 02:44 AM

Comments (6)

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6 Comments on Are you acting in the best interest of your client?

MAR

Cameron

Our code of ethics always places our clients' interests as our top priority.

Hope we won't have to be constantly reminded to do this. I had an agent huff tell me "this property may work for my clients, but it won't work for me. I don't do 2%!" Imagine!

Pacita- Thank you for stopping by and offering your opinion.

I must disagree with you though. As a Real Estate Agent, I DO NOT have to work for FREE. I do not have to work for $1, or $100, or $1,000 if I choose not to.

If a client wants to purchase a home which pays a cooperating broker compensation of $1, I will explain to my client that I'd love to represent them in the purchase, but I don't work for $1.

While we have an obligation to keep our focus on the clients interests, we don't have an obligation to represent them on ANY HOME they choose to purchase.

Just as you can choose not to list a home for $500, you can also choose not to represent a buyer on a home which is paying a coop of $500.

You are an independent contractor which can determine your fee for service.

What you CANNOT do is mislead the client as to the availability or suitability of the home BECAUSE you don't want them to buy it.

Cameron --- no, we don't have to work for free. But once we take on a client, we should always look out for that client's interest. If he chooses to do something we disagree with, we should explain and provide guidance. Doing that is still putting our client's interest and well being front and center. If the client won't listen, then at that point in time, we can choose to "fire" the client and move on. But s long as there is a client-agent relationship, we should fulfill our responsibility and obligation.

But if a house is right, and the commission is "only" 2%, why not? The house I referred to is listed at $599k. 2% commission is hardly "free".

MAR

Hi Cameron!
I never even think about looking to see what a commission is...it just isn't part of what I do. I was pleasantly surprised the other day when I found out a property I just put in escrow is a 3%! Whooppee!
My gauge on propeties is that I will never sell a client a home that I would not sell my children. If they choose to do so, I will refer them to another agent.

Cameron,

Right one! Whenever asked by my sellers if I think a higher commission to the buyer's agent will help my answer is a resounding no. You're trying to motivate buyers not their agents.

Brian - thanks for stopping by. I'm not sure if you were kidding or not. Here in Southern California, homes which offer 4% or more commission to buyers agents sell more than three times as fast as those homes that offer 3% or less.

Paula- You'd start looking at the CSO if you worked in SoCal. There are agents out here offering between $1 and $100 to cooperating brokerages.

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