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A Winning Combination Without A Breach Of Ethics

Many many moons ago when I started in this business, the Real Estate Agent was sort of a rainmaker, the facilitator of dreams. No questions asked, without a shadow of a doubt, you were trusted like the family friend or physician. After all, I know how much my customer earns, what they do for a living, about their significant other and their involvement in the process, very few stones are left unturned!

Most of my customers have never owned a home and in situations where their family members were home owners, it had been several years since they were part of the buying process. In cases such as this, it becomes incumbent upon the Realtor to educate the consumer. It is important for the buyer to understand that the process is one of a team concept. My role as Realtor is to help them identify the property that best meets their needs, beyond that I become the caretaker of the transaction. In order to fulfill my role I need other competent players engaged in the process. This is where it gets sticky! Since the passing of all of these moons, I have racked up a sizable number of transactions over the years. With these experiences come relationships. I have met other professionals whom I deem to be competent, like the lender Lender who specializes in 203K loans or the one who accepts B- paper. Helping the buyer to understand the importance of having the right people on board, as part of the team is crucial. However, today, my buyers are somewhat more informed, not completely the tabula rasa, that they were in moons gone by. They come equipped with a loan officer, home inspector and attorney. Clearly it is their right to construct the team of their choosing. But in their choosing, they may a have a lender that does not provide the 203K financing that they need or the attorney is the one who handled grandma's accidental injury lawsuit and the inspector is the favorite uncle Willie, making sure that the buyer isn't ripped off.

Inspector When did the tables turn? How did we go from being the revered trusted advisor to the team member least favored? Alas, it was the age of self help, you remember the wave of "How To Books" on the market and the buyer agency guru workshops - "How to Buy Real Estate Without A Realtor". All stoked by the least trustworthy amongst us and their unscrupulous deeds. All of a sudden the trusted relationships I had established over the years , were now suspect, most often referred to as collusion.

Clearly, I need the trust of my buyer if we are to have a successful transaction, with the least amount of stress. That is why I invite the buyer to look at the situation more closely. In my role as caretaker I refer the buyer to three lenders who can accommodate their needs, as well as three home inspectors and attorneys. I make it clear that I am not recommending anyone in particular. I state that I have come to know these professionals through past clients who have had successful experiences. The fact that I know these individuals, affords me the opportunity to pickup the telephone and make special requests on the buyer's behalf. It could be asking for a home inspection report to be issued in two days rather than the standard seven, it works to the buyers advantage.

The fact that I have industry related business relationships, is a benefit to my customers and clients. Those with whom I choose to work are ethical and my customers and clients come to know that the term relationship is not synonymous with collusion.

Posted by William Collins, Broker Associate on 12/16/2006 08:50 AM

Comments (8)

realtor, attorneys, home inspectors, lenders, mortgage reps, real estate

8 Comments on A Winning Combination Without A Breach Of Ethics

William,

Good post. Great Question!

Having been around a while myself I would say the trust factor left with the advent of nearly 20 years of great times. It's unfortunate but in good times almost anyone can sell real estate or mortgages.

The public doesn't need or demand professionals when the market is good and they have no unusual problems. The brokers have responded by providing the market with just what they except, the only losers are the good real estate people and those clients that need more than an order taker.

There are good gurus, I'd like to think I'm one. If you don't like me try Jeanette Fisher or John T Reed. We all have several "How To" books I don't think you'd have trouble with any of them.

The fact is that REALTORS® like Gurus earned their reputation. That doesn't mean that there aren't good and even great ones! Look around AR all these people looking to learn and share, there are some dam good people in real estate. I won't paint them all with one brush, how about you admit there are Gurus and there are Gurus?

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org

12/16/2006 11:58 AM

by William J Archambault Jr (The Real Estate Investment Institute )

Bill, Thanks for stopping by. I will concur that there's good and bad in all, including Gurus!

12/16/2006 12:04 PM

by William Collins, Broker Associate (ERA Queen City Realty)

From what I have seen in my market, Gen X and younger like to work with buyer's agents. They see the value in the service and most of them know that they don't "know". The other segement that likes to have their own agent are high income and high net worth people. These people are smart enough to know that it is best to hire a professional to get the job done right. I think that people in the middle of these groups, people in their 40's and 50's of moderate income are the least trusting of real estate agents. They grew up in a world where real estate agents always worked for the seller. Many of them have the mentality that they will get a better deal if they just deal with the listing broker.

www.southeastmassre.com

12/16/2006 12:09 PM

by Don Paradis (Realty Executives Metro South)

William,

I can live with that. Those of us born in the first half of the last century should stick together.

Bill

12/16/2006 12:37 PM

by William J Archambault Jr (The Real Estate Investment Institute )

I think the real estate industry created some of the problem by having rather low standards, get a license and you are in business.

12/19/2006 07:25 AM

by Jennifer Fivelsdal, Rhinebeck NY (Keller Williams Realty)

even though as Jennifer says the standards may be low, they are even lower in the mortgage industry where I work...this gives everyone a bad name. Education and Self Help may make for a more educated consumer, but we have to ask...Where are they getting educated? The internet while powerful is a scarry and dangerous place. And as for Guru's, the licensing and requirements for being one of those is lower than than being a realtor and mortgage professional combined...all you need to do is have a pen or a keyboard or a big mouth. Those who can, well they do...and those who can't...well you know the rest.

Do it yourself and How to books are great for fixing a leaky pipe or putting in hardwood floors. (I'm in the process of putting in new floors myself right now) but when it comes to say building a new house, I want an expert builder, and not the cheapest or the most expensive, just one that comes highly recommended by people who know what they are talking about...ie people who have been there and done it before. An expert is someone who goes to war, and practices his craft day in and day out, not somebody who sits around and tells everyone else how to do it.

12/20/2006 10:25 AM

by Joshua Plummer (NA)

Joshua,

Thanks for stopping by. You said it all in a nutshell. I love the analogies!

12/20/2006 10:32 AM

by William Collins, Broker Associate (ERA Queen City Realty)

Excellent post

05/20/2007 07:14 PM

by Janessa Mondestin, Rockland County Realtor (ERA TUCKER Associates, Inc.)

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