Client vs. Customer: Semantics or a really big deal?

 

It has become one of my favorite sayings - “In real estate, representation is everything.”

 

I find that to be especially true in this current buyer’s market. So many buyers are missing out on great opportunities because they are unaware that they are entitled to a very special kind of representation.  They instead wind up working with an agent who is acting in the best interest of the seller.

 

In my most recent article in Dan’s Hamptons “Ask the Expert” column, I covered a few basics on how a buyer can tell who the agent represents and why that’s important.

 

Hopefully, the tables below will clarify any confusion as to the two very different relationships when it comes to buyers working with real estate agents.

 

Please don’t be thrown off by the word customer. People automatically associate that word with someone who is purchasing something - thereby relating it to the buying side of real estate.  Well, that’s not necessarily so, as a customer can be a seller as well.  In real estate jargon, the definition of customer is “the third party with whom the agent deals on behalf of the principal (client).  Sounds pretty unappealing, doesn’t it?

 

Hampton One R. E. Group

 

Your Hamptons Exclusive Buyer’s Agent - Where all our Buyers are Clients

 

CUSTOMER

              RESPONSIBILITY

HONESTY

Ensure all laws and regulations pertaining to the transaction are obeyed

ACCOUNTING

Safeguard money and property held on behalf of the customer

REASONABLE SKILL

Provide customer with standards of practice and competence that are reasonably expected

DISCLOSURE (Material Fact and Agency)

Disclose material facts about a property.  Disclose agency relationship.  Explain the difference between a customer and client relationship in a timely fashion SO THAT A CUSTOMER CAN PROTECT THEIR OWN INTERESTS

 

 

CLIENT

                DUTY

FULL

DISCLOSURE

Disclose all info that might affect the clients decision

LOYALTY

Do not conduct the client's business in such a way to benefit the customer or any other party to the detriment of the client’s interest

CONFIDENTIALITY

Do not divulge any confidential  information about the client told or learned by the agent within the agency relationship

REASONABLE CARE AND DILIGENCE

Protect the client from foreseeable risks or harm and recommend the client obtain expert advice or assistance when needs are outside the scope of the agents expertise

OBEDIENCE

Act subject to the client’s continuous control (following all lawful instructions)

ACCOUNTING

Safeguard money and property held on behalf of client

 

 

 

 
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4 Comments on Client vs. customer: Semantics or a really big deal?

OCT
27
2011
423,432 Points 9 Featured Posts Outside Blog Called Shot Master

Bill - great post.  I think there is a lot of confusion between the two and often the public assumes the client and consumer are the same thing.  Nicely done on identifying the difference between the two. 
3:57pm • #1
104,208 Points Localism Sponsor Outside Blog

Thanks Laura
4:58pm • #2
221,080 Points 2 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Terrific explanation, and congrats on Hampton One- love the H1!
5:26pm • #3
104,208 Points Localism Sponsor Outside Blog

Thanks Laurie.
8:18pm • #4

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Bill Carroll (Hampton One Real Estate Group) Rainmaker_large

Bill Carroll

Westhampton, NY

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Hampton One Real Estate Group

Address: 12 Oak Street, Suite 5, Westhampton Beach, N.Y., 11978

Office Phone: (631) 241-8168

Cell Phone: (631) 241-8168

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