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Is Honesty a Useful Character Trait in Real Estate?

By Mark Velasco

Real Estate Agent with West Shores Realty DRE# 01789768

April 28, 2009 09:25 PM

Ghandhi-Honesty

Honesty- Truthfulness, sincerity or frankness. Also, freedom from deceit or fraud.

Black and White or Gray?

Do we tell the truth all of the time? Do we tell the truth only when it is convenient and when there is no commission involved? Is leaving out a fact or two mean that we are being dishonest? Or is being truthful just telling the client what they NEED to know? Is honesty a matter of black and white or are there "gray areas" in betweeen?

My Experience:

A new Client of mine asked me the other day "Do you think that we should offer $900,000 on this property? I wanted to say YES so badly (everyone gets tempted, right?). I paused. Without even thinking the words that came out of my mouth were: "the property is not worth more than $800,000.

My client paused and looked over at me with a very serious, almost angry look. He cracked a smile and said "I think that I found my new agent."

What I Learned:

It is not always convenient to tell the truth, however, in the long run it pays off. Honesty...is it black & white (right or wrong) or are there many gray areas? Neither, my experience has proven that honesty is as good as gold.

Share your Opinion or Experience:

Feel free to share your experiences/points of view that you may have on this topic. I am looking forward to seeing what others think about honesty in Real Estate.

This is #1 of a series of 150 Great Traits for Realtors. I will post a new post every 1-3 days. Your input is what will make this series work. Thanks for subscribing and for your comments.

If you know of clients who may need some help in the So California, feel free to send them to my site:

www.SearchSanGabrielValleyHomes.com

Be sure that you send me an e-mail with you and your clients’ name and information. I pay 25% for referrals…so let’s get to work. Thanks-- velascomark@yahoo.com (626) 392-9499 Direct

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Patricia Aulson

BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH

Realtor - Portsmouth NH Homes-Hampton NH Homes

Without question, honesty is the best policy. That's the way I was brought up and the way I've brought my children up.You can put your head on the pillow at night and know you did the "right thing" whatever the outcome.

Patricia Aulson/Portsmouth NH Real Estate

Apr 29, 2009 02:22 AM

Jeani Codrey

RE/MAX Corridor - New Braunfels, TX

Director of Opportunity & Agent Development

You hit the nail right on the head! I hold my integrity and honesty in very high regard, at the end of the day, it is one of my great selling points. We operate in a business of trust. I want people to trust me with their biggest investment and I must be a person of honesty and integrity. During the boom times in real estate, I didn't sell some of the homes I could have. I actually advised people not to buy or not to buy at this time. Why??? Because it wasn't a sound financial decision for them at the time. They later thanked me and bought when their financial situation had improved and got the house they deserved, not the one they had to settle for! I sleep well at night and my clients come back for more and send their friends and family because they know I will make the tough choices and speak the truth. Thank you for this post!

Apr 29, 2009 02:52 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Robert: I am proud of you! You did the right thing. Now take out your list of all the people that you gave this advice not to buy. Tell them ALL to buy Now. Keep mailing them until they are ready to sell. When you have done all of this...send me a Starbuck's gift card. Do all of this and you will be twice as ready for the next slow time. Do refis or sell time shares during "Boom" times.

Kathleen, I agree. Ouch! The truth hurts (lol). I like the way you think.

Gail: Long term thinking equals REFERRALS, REFERRALS, and even more REFERRALS. Make one sale today or 10 tomorrow. Have multiple people (cosigners) to help qualify.

Lenn: You are doing our heroes in the armed forces a favor. You "saved their economic lives." You are a heroine in your own right. On behalf of our people in the armed forces I sincerly thank you for that.

Mary: Yes, it does feel good to do the right thing and YES it does get easier to do.

Gita: Yes Gita. We must love who we are...then others will too. Gandhi changed our world. Martin Luther King learned nonviolence from Gandhi. Ghandhi influenced MLK and MLK influenced the rest of us a lot. I love and admire people of courage.

Gabe: It's true. Lying requires too much memory because you have to remember what you told each person. The truth only requires 1 answer. Plus, you get caught lying...as my friend Donald says "You're Fired."

Gary: You did the right thing and you felt great, right?

Tim: Yes, the first answer is usually THE right answer but we still do our homework first.

Irene: It is not a sacrifice when they buy from you anyways. It feels like a sacrifice because of more time spent. HOwever, they will reger you to EVERYONE ehen you are honest. One client of min (a Sheriff) even told his gardener about me.

Mary: Yes, it does pay sown the road...and quite handsomely might I say.

Sharon: Yes, your reputation is KEY. With clients and other agents as well. I always remember the ones who told the truth AND the ones that lied. I will be doing a list naming the lying Realtors next week (Just Kidding! Lol)

Christine: I agree. Disclose everything in Real Estate AND in Relationships. You would be surprised how much trust, love and good will it brings to your life. YES, I do sleep like a Baby too.

Patricia: Our kids learn from us one way or the other. They learn more from what we DO more than from what we say. Our kids learn the value of Honesty and they are able to see the benefits too!

I sincerly thank you all for your comments.

UP NEXT: Nifty 150, Great Traits for Realtors #2-BEING PREPARED

Apr 29, 2009 03:23 AM

Lana Robbins Realtor ® Licensed Real Estate Broker

Aloha Kai Real Estate - Clearwater, FL

Licensed in Florida, Washington, and Hawai'i

I believe in honesty even though some people do not want the truth because it may hurt them. I'm very blunt and some people appreciate that. Unfortunately there are some people who want the truth yet when you tell them the truth they don't like it.

Apr 29, 2009 03:26 AM

Rebecca Levinson, Real Estate Marketing and Online Advertising Consultant

Real Skillz-Clear Marketing for Your Real Estate Vision - Lake Geneva, WI

Honestly is the most important trait. Integrity can't be bargained and if you feed the fuel of honesty it comes back to you in spades, referrals.

Apr 29, 2009 03:46 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Lana: The truth does hurt at first. However, in the end it causes much LESS pain that being lied to can bring. Even though they may be angry at first...they will remember who told them the way it really was.

Rebecca: I am a living testamony to that. Nobody that I have ever worked with has ever gone astray.

Apr 29, 2009 04:25 AM

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

If one commission is so important that I have to compromise my integrity, then it is time to dig ditches for a living. It is good honest work, and it gets you outside.

Apr 29, 2009 04:32 AM

Maria Mastrolonardo, IL Probate Specialist

RE/MAX of Naperville & RE/MAX Enterprises - Naperville, IL

Illinois Probate Realtor

I have always lived by that it's best to be honest, yes it has not done wonders for the pocketbook but hey, at least I sleep well at night. :)

Apr 29, 2009 04:46 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Joe: I admire your integrity. The good thing is that people are looking for Honest agents ;-)

Maria: Honesty will almost ALWAYS pay off.

Thank you for sharing.

Apr 29, 2009 04:54 AM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

Sometimes the truth hurts, like when sellers ask you what you think their home is worth. But, in this case, even if they do not get the property, they will respect and refer you because of your honesty and integrity. A++++

Apr 29, 2009 05:42 AM

Claudette Millette

The Buyers' Counsel - Ashland, MA

Buyer, Broker - Metrowest Mass

Mark: That's the way to build a long-term reputation and real estate business, particularly if you want to make it as a buyer broker. It really pays off in the end with repeat business, referrals and letters of recommendation. Continued success to you.

Apr 29, 2009 05:50 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Melissa: Price is one thing, Worth is another. I tell my Buyers the market price, however, I also tell them that sometimes having the home of your dreams is worth a little more than market price.

When I purchased my home in 2000, my home's Market price was $10,000 higher than the appraisal. I paid the extra money because it was what I have always wanted. All of you know what happened in California after 2000...the value of my home doubled and then was cut in half. Today I still have over $100,000 plus in equity today.

Honesty is giving all the information. However, part of being a great agent is providing the Big Picture for people. Today's price is not always the main selling point...The main selling point should be whether they would be happy with the home at a given price.

Apr 29, 2009 06:00 AM

Scott Baker

www.eHomeReports.com Coldwell Banker Realty - Liberty Township, OH

Realtor Homes for Sale Cincinnati/Dayton Ohio

Honestly is ALWAYS the best medicine. Even when it costs us months of showing more homes to the same buyers. I have buyers that wanted to buy a home that I aggressively talked them out of due to the cost of the home. Priced at $779,900, I had to convince them not to buy the home. It cost us months more of looking, but we found them a GREAT home that they love. The home was nice, but way overpriced. Now, they won't even THINK of doing anything without my counsel....and they tell their friends. I sleep well at night.

Apr 29, 2009 06:35 AM

Gabrielle Kamahele Rhind

KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ

Broker/Owner

HELLO MARK! The truth eventually surfaces so like Lenn said, just be honest and you don't have to worry about the rest! Congrats on the feature! -- Gabrielle

Apr 29, 2009 07:04 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Scott: Great job. You earned your Buyer's trust and, therefore, you will also have lots of referrals. Yes, the truth usually requires more work...but in the end it is worth it. Even if it didn't mean more referrals...doing the right thing is ALWAYS better.

Gabrielle: Yes the Truth ALWAYS surfaces. It is inevitable. I prefer to be up front with my clients. It causes much less confusion and explaining later on. Like Scott said your clients will not question us anymore (because we have earned their trust). Thank you for the kudos on the Feature Gabrielle.

This is my first of 150 Blogs. It is called The Nifty 150-Great Traits for Realtors. I hope that you will put your personal experiences. I love hearing people's stories...they are better than mine because I havn't heard them yet :-)

Apr 29, 2009 07:47 AM

Anthony Stokes-Pereira

Better Homes and Gardens Rand Realty - Nanuet, NY

Realtor

Hi Mark;

I agree that honesty is the best policy, I thank you for sharing.

Apr 29, 2009 08:43 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

Anthony: Thank you for taking the time to read and comment on my Blog.

Apr 29, 2009 09:16 AM

Anonymous

Honesty in real estate and in life. What a great way to live.

Apr 29, 2009 09:33 AM

#31

Lisa Udy

Platinum Real Estate Group - Logan, UT

Logan Utah Realtor

Hi Mark!

That's the only way to do this business, or you won't last that long. I think what you did should be the norm, unfortunately it seems as though some agents have a problem with this. Thanks for the honest post! :)

-Lisa

Apr 29, 2009 11:42 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

It's true Lisa. People see the truth over time. These people who lie fade away into another profession. Thanks for your comment Lisa.

Apr 29, 2009 05:19 PM