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Are Orphans Fair Game?

By
Real Estate Agent with RE/MAX Home Team

Real Estate Orphans

I went on a listing appointment today.  As we went through the kitchen, I noticed one of my calendars on the refrigerator. Mr. Seller had been receiving my "stuff" for 18 years - calendars, magnets, postcards, newsletters.  Mr. Seller was proud of the updates he had made to the house since I sold it to him 18 years ago.  He had me convinced.  When I went back to the office and went through the file from 1989, I realized I hadn't sold Mr. Seller the house after all.   In 1989, I added Mr. Seller as an "orphan" in my database.  The agent who had really sold him the house had been out of the business about 10 years. 

I get more than a few listings from "orphans" every year.  Most of the time they are convinced I sold them the house.  They say that when they call in to make the listing appointment.  "Remember us? You sold us the house about 10 years ago". 

A few days ago, Leigh Brown wrote a blog called What would you do?  It was about unethical behavior that occurred during one of her closings.  It generated a lot of comments.  In one of my comments, I  brought up the subject of "orphans".  There were a few commenters who didn't approve of the technique of adding another agent's client to my database.  I was a bit surprised about that. I never even considered I was doing something wrong. 

Think about it.  The odds are very high that with the exception of maybe a holiday card for the first couple of years, a client's own agent will abandon them.  And the odds are just as high that their own agent won't be in the business after 3 years.  In fact, you can count on it.  

I say adopt an orphan.  Orphans need care and feeding too.  What say you?

 

Edited to add:  Based on the discussion I am providing a link to a blog I wrote called - You are your database.

Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area
Linda...The practice of adopting orphan sellers and buyers has been an accepted business practice here for a while. When leaving a firm in many cases those past clients are given to another agent to "work".  No body wants to abandon potential future clients.
Jun 13, 2007 01:36 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
Sounds like a good idea since this must not happen in this market. I have herad very little of this but you are correct. I have a poor database program but when things slow down I can work on that. Eric
Jun 13, 2007 01:46 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I, too, see no issue with adopting those who are abandonned. Ths issue raised  by Leigh was that it occurred during the closing, in front of her, with her clients. Keep on doing it, Linda - it works well for oyu.

Jeff

Jun 13, 2007 01:46 AM
Stefan Scholl
Buyer's Broker of Northern Michigan, LLC - Petoskey, MI
Northern Michigan Real Estate

Linda,

While I don't see a problem with adopting orphans, I am not as excited about listing agents mauling my clients at the closing or shortly thereafter with business cards, promotional items, gifts, etc.  While it sounds like Broker Bryant does this, and it certainly is not unethical, I find it to be tacky at best.  I wouldn't even consider doing this to the listing agent's client.  Sorry BB :-(    

Jun 13, 2007 01:56 AM
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

True orphans are fair game.  Leigh's clients were certainly not orphans at the closing.  I remember reading Leigh's post and starting to reply with a similar story, but I deleted it because...  well because I don't blog about tacky agents in my market, or even comment if they would be identifiable and especially if it is someone in my company. Ick. 

The agent at Leigh's closing was being a celebrity buying a baby, didn't both Madonna and Angelina Jolie adopt babies who had families?  It's different IMHO. 

Jun 13, 2007 03:13 AM
Doug Lindstrom
eXp Realty - Loveland, CO
Heck yeah! Orphans are fair game. If their previous agent lost track of them, got out of the business, etc. who will take care of them. Besides, this is a very competitive business and one must be aggressive to make things happen.
Jun 13, 2007 03:31 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

Thanks for the link, that post generated a lot of heartfelt emotions that I didn't expect.  I too adopt orphans-the difference being that I don't adopt them until after the closing has occurred-in fact,they don't hit my mailing list for a period of time to let them get settled in.  It's smart business to stay in touch with folks since most agents don't and won't do it.  What's not smart is soliciting them right in front of each other.  I've since added an update to my post, that agent did apologize and won't do it again I'll wager.

Jun 13, 2007 03:33 AM
Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

Is that a gerbil ???

Ok, this post got my attention and my lightbulb is blinking ! Good marketing ideas are coming to mind. Orphans are definitely fair game!

Jun 13, 2007 05:42 AM
George W. Miller
Keller Williams Realty - Naugatuck, CT
Naugatuck and Beacon Falls Real Estate
I normally hate technicalities but if a consumer is not under contract, go for it. I read the article you referred too and I think that was a little tacky but hardly illegal. I think the agent needs to loosen up. I hardly think some note cards are going to impress anyone that much. They are giving something of value in return for some low-cost advertising. Good for them.
Jun 13, 2007 06:24 AM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
Linda,yes that's the way of Referrals. By keeping in touch and stoking and providing something of value to past clients...they do eventually come around.  Love the orphan scenario and the nurturing photo.
Jun 13, 2007 06:49 AM
Joe Dallorso
Ocala, FL
Ocala Real Estate

Hello Linda

I think a Realtors agency relationship with the client ends upon successful completion of the sale at which time the consumer returns to the pool of potential future customers.

Jun 13, 2007 06:59 AM
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy
I am assu ming  you orphans are coming from agents that have left your office? Any other ideas for orphans?
Jun 13, 2007 07:42 AM
Linda Davis
RE/MAX Home Team - Gales Ferry, CT

Great discussion here!

Just to clarify based on some of the comments - I farm all orphan clients regardless of whether their agent is still in the busines or not. Most agents do not keep a database or keep in touch with their clients.  It is a golden opportunity!   I generally wait about 6 months before I add them to the database but always send a copy of the HUD in January of the year following their closing for their convenience when they prepare their taxes.  Most agents do not do this.

I do not farm the orphans of agents in my own office unless they leave.

I wrote a blog about You are your database awhile back!

It is fascinating to hear the different opinions!

Jun 13, 2007 07:59 AM
Daniel Gates
Insure Consulting - Palm Bay, FL
I am wondering how you find these orphans?  Do all of them have such short memories that they forgot the short, balding, overweight man that acutally sold them the house?
Jun 13, 2007 08:46 AM
Esko Kiuru
Bethesda, MD

Linda,

As far as I know, anyone can market to any prospects so long as they don't have a contractual relationship with someone else at the time. Even then you might not know about it. But still, it's the prospect's call whom he chooses to work with. Orphans shall receive proper customer service.

Jun 13, 2007 09:30 AM
Jeff Shields
RE/MAX Anchor Realty - Qualicum Beach, BC
REALTOR Qualicum Beach, BC

Here in BC you can market to any one, however all marketing materials are required to have a disclaimer "this communication is not intended to cause or induce a breach of an existing agency relationship". However if you intentional interfere in an existing agency relationship, you are subject to disciplinary action.

Here an existing agency relationship does not necessarily require a signed contract, it can be verbal. The client can fire you and then work with whomever they choose.

Jun 13, 2007 11:15 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty
A very timely topic - especially as I have been drowning in a 50K database for the past couple of weeks - but that's another story!
Jun 13, 2007 01:07 PM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate
Linda, I've been criticized for years about adopting orphans.  Tonight I put a home under contract that I adopted a few years ago - the sellers are now referring other to me.  Nothing wrong with it when the other agent fails to follow up.
Jun 13, 2007 02:10 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
Don't see anything wrong in making contact once someone is out of their contract and the deal is closed. If no one ever contacted an "orphan" a large portion of the real estate population would never make a sale.
Jun 13, 2007 06:00 PM
Jennifer Walker-Derby
Re/Max Westside - Marietta, GA
Real Estate Extraordinaire
I agree with George.  Once everyone shakes hands after the closing, clients are fair game.  I need to earn future business with my previous client and I hope to earn the future business of the previous buyer or seller across the table
Jun 14, 2007 02:57 PM