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A Real Estate Career is NOT for the Liability-Phobic**

By
Education & Training with Sell with Soul

Been watching a conversation elsewhere on the web about whether or not to put buyers in your car... as opposed to driving separately. While some of the comments are ridiculously snotty ("They can drive themselves!" or "Let THEM use their own gas!"), the most sincere objection seems to be that putting another warm body in your car creates liability for you.

We hear similar objections all the time to doing things that serve our clients. DON'T attend inspections! DON'T recommend mortgage brokers! Don't give any advice that might be construed as legal! Don't put buyers in your car! Blah blah blah.

Basically, in order to CYA to the best of your ability, you should, as one instructor put it - "stand outside and smoke" during most phases of a real estate transaction. To avoid liability, y'know.

Well, shoot, I don't buy it. My buyers and sellers pay me darn good money to be intimately involved with every facet of their real estate transaction. And I show up. Yes, to inspections. I get on the roof and join the party in the crawlspace. If I don't know three good inspectors, I recommend only the one or two I like. I write my own addendums that probably border on practicing law. And yes, I put buyers in my car.*

It's my job. And in my 13 years of doing my job, I can honestly say I've been richly rewarded for doing my job and only threatened legally once. By doing my job, I serve my clients, which not only leads to happy clients, but more paychecks for ME ‘cause my deals close!

I know what I'm doing. And I shall do it. Even if I risk being sued. This is a liability-ridden business. If you cain't take that heat... go find another kitchen to play in.

Judge

*Here's my opinion on putting buyers in my car:
In 13 years, I can count on one hand (okay, maybe two) the number of times I've ridden separately from my buyers. I usually drive, but if my buyer has a car-seat issue, I'll ride with them. The only times I've had a buyer follow me is if we're meeting at the house and only looking at a few others - then it just seems to make sense.

The time spent driving between houses is great bonding, rapport-building and information-gathering time. I can't imagine not having that time with my buyers as we're getting to know each other and figuring out what they want in a house. It also gives me the opportunity to demonstrate my expertise in the area and for them to ask questions which, assuming I can answer (!), builds my credibility.

I've shopped for houses in other markets and the agents always drove. I'm trying to imagine them leaving me in my rental car to follow them in an unfamiliar town... and I'm pretty sure I would think they were rude, antisocial, lazy or ashamed of their car. I certainly wouldn't think MORE of them if they made me drive myself.

That said, if I didn't feel safe with someone, I probably wouldn't want them in my car, but neither would I be working with them.

** Nothing written here should be construed as legal advice <grin>

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Comments(140)

Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I must admit my car often resembles the car of a man with 5 boys.  I frequently ask them to follow me.

Nov 12, 2009 10:40 AM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Jennifer, I totally aagree with everything you said except one thing.  I do attend inspection, but I do not go in the crawl space, or on the roof because I am not the inspector.  I cannot believe that some agents are not really willing to really help their clients because of legal liabilities.  You just have to be careful how you say what you say. I have never had legal proceedings against me.

Nov 12, 2009 10:40 AM
Scott Perry
Jireh Business Information Solutions, Inc. - North Huntingdon, PA

Interesting post, Jennifer.  It's truly sad that our litigious society has made practitioners of your profession so afraid of giving their clients the individualized attention that they deserve.  And some folks wonder why people don't like lawyers! 

Nov 12, 2009 11:21 AM
Anonymous
Vera L. Koon

Hi Jennifer~ What a great topic to blog about. I think your success proves you "GOT IT RIGHT!". I too agree with working hard and passionately for my clients, and YES, even for the ones that you really wonder appreciate it. I have learned that the emotions involved in buying and selling in today's market may seem to get the best of clients sometimes, but at the end when keys are handed out and gifts are given, that is the special moment, that you just know, you are doing is what you are meant to do! Great post, great attitude!

Cheers!

Nov 12, 2009 01:10 PM
#127
Anonymous
Bonnie Kappler

Great post.  It is sad that we need to even consider law suits, but it is reality.  We all have or should have, insurance.  If a person is wise they may want to ask their insurance agent if clients in the car are covered.  After that forget it.  If your clients want to ride with you let them.  If they want to follow then let them. 

Nov 12, 2009 01:34 PM
#128
Anonymous
Bonnie Kappler

Great post.  It is sad that we need to even consider law suits, but it is reality.  We all have or should have, insurance.  If a person is wise they may want to ask their insurance agent if clients in the car are covered.  After that forget it.  If your clients want to ride with you let them.  If they want to follow then let them. 

Nov 12, 2009 01:34 PM
#129
Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

I was setting at a red light with clients in my New truck. Someone ran the light got t-bond and then bounced into us.  I still sold them a house a few days later and am friends with them to this day.

Nov 12, 2009 01:46 PM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

With the green movement why aren't we all in one car.  I point that out.  I work mostly with investors and most of the time the client drives and I hop in there with them.

Nov 12, 2009 02:20 PM
Anonymous
DeeDee Riley

I'm with you Jennifer!  Great post!!!!

 

Nov 12, 2009 04:04 PM
#132
Ismael Jusino
ConnectRealty.com - Celebration, FL

Hi Jennifer,

I agree with you 100%.  For some reason or another, Realtors are afraid to say anything that may be taken in a different way and lead to a law suit - even to another Realtor.  I have been in meetings in which Realtors want to say something in general - AMONG - each other but don't because they are afraid that it may be taken out of content.  We should be able to say what we want without having the burden of getting sued.  The rules and reulations as well as the Code of Ethics are there for a reason, at the same time, we all are adults and should be able to have a conversation with other people without any worries as long as its appropriate.

As for buyers, I still put buyers in my car as it enable me to develop a better relationship with them.

Good Post Jennifer.

Ismael Jusino, e-PRO, GRI                                                                                              Lic. Real Estate Broker

Absolute Homes Realty, LLC      Ismael@AbsoluteHomesRealty.com   

 

Nov 12, 2009 11:25 PM
Stephen Kappre
KW Hometown - Mantua, NJ
Helping You Home

I don't get :car time: as a lender, but enjoy the bonding when we sit down for an hour + to sign documents and review their options. This car time is indeed an asset if used wisely.

Nov 13, 2009 01:23 AM
Sally Lawrence
Advantage Real Estate - Tehachapi, CA
Broker, CHS, e-Pro, SFR, REALTOR®

Great stuff, Jennifer!

When we were shopping for our current home, I was between licenses (lots of inter-state moving for a while).  The agent we were working with either rode with my husband and me or drove his own car.  We were relocating from 125 miles away and really didn't knwo the area.  He was new in the business and (he finally admitted) ashamed of his car.

The only time I choose to have clients drive their own car is at a first meeting if I haven't been able to get them into the office or some other public place where I can introduce them to someone I know.  That's my choice from a safety perspective.  I always let someone (usually my husband or a friend) know when I'm showing houses and what time I will be finished by.  If I don't call back, they should try to call me.  If I don't respond, they are to call the police.  So far, it's never had to happen, but I feel safer just from having a plan in place.

Nov 13, 2009 03:14 AM
Doug Patterson
Park Place Real Estate, Broker-In-Charge - Winston-Salem, NC
CRS, ABR, Broker-In-Charge

Jennifer, I agree with you.  I do all those things you do as you expressed in your post.   I think it's my duty to attend inspections...I don't advise on things I'm not qualified to speak about, but as REALTORS we can learn alot with each and every transaction.   Putting all those first hand experiences together is what I believe our clients are looking for in a REALTOR.

I must say though, that 99% of the time, I'm meeting them at a home, so they are driving themselves.  I like to get ther ahead of them when possible, to have the house opened, lighted, and "READY TO SHOW"....  Many times, it's the first visit for me too, so it gives me an opportunity to learn a bit about the property prior to their arrival.   

With Series of homes to see, they are always welcome to go with me!

Thanks for a good post!

Nov 13, 2009 03:49 AM
Martin E. Kalisker, Esq.
Natick, MA
Real Estate Law From A Practical Perspective

Although I am not an attorney, the way exclusive buyers agency was explained to me is that since you have a fiduciary responsibility to your client vis a vis the EBA agreement, you do not need to provide them with the names of three inspectors, three lenders, etc.  You can simply say - here is my "team" of real estate professionals that will guide you through the financing and inspection process.

As far as liability for taking someone in your car, yes, the broker is going to want to be named as an additional insured if you use your car for business.  It only makes sense.  You are an independent contractor and you are transporting the broker's clients.  And why wouldn't you want to have that buyer next to you as you drive to the next appointment?  You can develop rapport, talk about the property they just saw and the one that they are about to see.  It seems pretty simple to me.

Nov 13, 2009 08:16 AM
Lynn Afton
Greenridge Realty Oakmont - Big Rapids, MI
REALTOR® Near Big Rapids, MI, Mecosta County

Thanks for your post, Jennifer, and the discussion following!  I let the buyers decide, as there is plenty of time to talk at the listings or stopping for coffee or lunch.  Sometimes the listings are far apart and in different directions, so it just makes good sense to go separately and meet than to have to return to a car at the office.

Nov 13, 2009 12:11 PM
Nancy Deichman
Re/Max Premier Realty, Inc. - Ocala, FL
CDPE

Amen to that. You are so right. Fear of liablility can cause failure.  How must a buyer feel, havig to follow a Realtor around in his or her own car to see homes. Hasn't the internet narrowed the search enough for us already?

Nov 14, 2009 02:10 AM
Michael Ford
San Diego, CA
California+Hawaii+Oregon

good lord...in twenty years i've had so many folks in my cars and trucks that i couldn't count them.  if you're worried about lawsuits buy good insurance.  just send your agent an email that explicitly states that you do this and get  the coverage...adding additional insureds, such as your broker, is usually free, it is for me at least.  buy lots of insurance...it's a deductible expense and how nice would it be to tell someone suing you...talk to my insurance companys lawyers, here's their number.

i have noticed lately though  that the two cars thing is happening more and more as the buyers are very willing to do some drive-bys on  their own, and thinning the lists of homes to see.

as i think about it, i can't think of a single lawsuit that i have heard of from any agent i know or even anyone local who i don't know...i think  the fear is greatly overblown.

i always go on every roof and every crawl space if the inspector cites any issues there,  but only because i have been in  the building trades for way too long and just can't resist.   since i am a licensed General Contractor the onus is on me anyhow...i might as well have a look.  as far as a policy to not be at an inspection.  that is pure BS, and could only have come from some lawyer who dreams of suing anybody they can.   the law in california requires us to do a diligent visual inspection...is having a smoke diligent?  that said, i do forbid my sellers to be at  the inspections. 

lots and lots of insurance let's you live in peace

 

Nov 14, 2009 12:06 PM
Anonymous
denise

Liability be damned - I don't put people in my car because I live in it!  Figuratively of course, but it is full of signs and folders and lock boxes - don't suggest the trunk, I drive a truck with an open bed.  I could clean up my act and I do when I absolutely have to meet with people from out of town. 

 My regular clients, and even those who I meet for the first time always drive separately.  They usually have other places to be, and so do I, either before or after our appointments and meeting at a central location doesn't work in the large metropolitan area where I do business.  Especially when you are going from literally one side of the county to the other. 

If you listen at the houses and when you talk on the phone you get a good idea of their wants/needs and what floats their boat.  Quality time together is way overrated.

Nov 15, 2009 06:33 AM
#143
Cara Pearlman
Frankly Real Estate, Inc - Bethesda, MD
Realtor - ABR, SFR

I agree with many above on the thought that I am risk adverse but I do bring clients along in the car as it is a time to bond, build rapport and get feedback. We all have car insurance...

The reality of today's world is that people sue and are getting sued every day. There are very few jobs where that isn't a threat. As a responsible agent and member of society act in your client's best interests and hopefully you will be able to avoid the fire!  

Nov 17, 2009 04:48 AM
Patricia Beck
RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO
Colorado Springs Realty

I totally agree.  Agents who are worried about liability are probably in the wrong business!  We have to take risks to do our job.

Dec 08, 2009 12:58 AM