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I'm sorry, I don't speak Realtor-ese

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

In the process of doing our business, we as Realtors move in and out of our own language without the slightest hint of confusion or misunderstanding.  It's what I call Realtor-eese.  We are fluent speakers of Realtor-ese, but our clients may not be.

I am dealing with a client who is a wonderful professional with a world class education andPuzzled man widely known skills, but he is realty-illiterate. We've spend hours on the phone going over every detail of every form because he really wants to understand what he's agreeing to. 

That brings me to my point.  Buyers and sellers understand the simple basics of a real estate deal.  That means they know what it means to have a house for sale, and they know what it means to have a buyer who wants to buy their house that is for sale.  Beyond that, it's anybody's guess.

I recently had a client who wanted me to drop my commission rate because he had done the math and thought I was making an obscene amount of money for little work.  He didn't realize that other agents were involved.  He had no idea that I might not be the agent who sold the house.  That brought up another concern.  Strangers would be in his house.  If I wasn't the one showing the house 100% of the time, then no one would be there to monitor the buyer's agent or the buyers who were going through the house.

Then, another client had been told that it was illegal to sell his house below his original purchase price.  Here again, education was needed, and it needed to be in language that was understandable. 

What's an addendum?  What's dual agency?  What's a buyer's broker?  Who gets the commission and how much?  What is a jurisdictional addendum?  Why do we need all of these forms to sell a house?  What's a contingency?  The questions are voluminous, and they need to be addressed in clear-speak, not specially in Realtor-speak.  The lack of understanding on a buyer/seller's part can be catastrophic to a deal. 

When you're working with a client, make sure you speak in down to earth simple terms that make sense to the complete novice.  Don't be afraid to ask, "Does that make sense to you?"  It will pay dividends in the end, and you might just create a smarter buyer/seller. 

 

Comments (68)

Dylan Taft
Dylan Taft Broker/Owner Taft Street Realty, Inc. - Woodstock, NY
Ulster County Area Consultant

So right, Mike!  FAQ pages are important these days.  So much misinformation out there...

Our clients and customers need to be educated and brought up to speed on the realities of this business.  We do not make nearly as much money as people think.  That huge commission check gets cut in half at the closing (selling side & listiing side) and then what's left gets split again between broker and agent.  Thanks for sharing!

Jul 30, 2012 11:11 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Ain't it the truth!  One of the funnier things that happened concerning real estate jargon, happened while putting a transaction together with a buyer of mine.  The seller had been going through a difficult divorce, and coming to a meeting of the minds between all parties hadn't been easy.  Finally, once agreement was reached, and the home was put into escrow, the preliminary report shows up from the title company.  The buyer is reading through it while in my presence and says, "Well, I knew about the ex-wife, but who the Hell is this Lis Pendens?"

Jul 31, 2012 12:06 AM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtor® in the Nashville TN Area!

I do think buyers and sellers are much more educated on real estate practice now than a few years ago, and we forget that there are a lot of things they still don't know. It doesn't hurt to go with the basics to make sure they understand.

Sarah in Nashville

Jul 31, 2012 12:34 AM
Cheryl Thomson REALTOR Ret Army
United Real Estate DC Metro Region (703.216.5635) cheryltee47@gmail.com - Prince William, VA
Associate Broker in Northern Virginia

Hi Mike.  One of the things I have learned in this profession is to assume nothing...part of our responsibiilty is to educate. If we don't do it, who will?

Jul 31, 2012 12:50 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Mike:  I understand what you're saying.  My wife, who has to listen to an unbelievable number of my business conversations, reminds me of this very issue often.  But I will add, that in this current challenging housing market and mortgage financing atmosphere ... every client must also take the time and make the effort to educate himself and listen to the info being presented to them.  It's for their own good and protection.  Yet unfortunately and somewhat unbelievably, many many do not.  We professionals can't give up ... no doubt.  But the responsibility of educating and learning must be shared by the student too ...

Gene

Jul 31, 2012 01:03 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

This is spot on!  Dave Ramsey tells people that they should work with an agent or financial advisor that has the heart of a teacher.  This is why I created a Cheat Sheet that explains what each paragraph in the contract really means.  It helps so much!

Jul 31, 2012 01:05 AM
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

So true. What the world needs now .... not love.... smarter buyers and sellers!                

Jul 31, 2012 01:34 AM
Heidi Kelley
Keller Williams Realty Leading Edge - East Providence, RI
Your Rhode Island Real Estate Connection

Hi Mike,

Great post!  As a new Realtor I sit down with my clients and go over every step in the process of buying or selling.  Education is a hugh factor during this process for clients as well as myself, and I am learning from my clients as I educate them.  

Jul 31, 2012 01:38 AM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

These are all very good points Mike, it's easy to assume that our clients might know a lot more than they do. A big part of our job is making sure that they know what they are getting in to.

Jul 31, 2012 01:41 AM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Wow, sounds to me like the listing appointment should be long and extremely informative along with visuals and handouts.

Jul 31, 2012 01:44 AM
Rich Gaasenbeek
IXACT Contact Real Estate CRM - Toronto, ON
Real Estate CRM & Marketing Made Easy!

Very good post, especially true when working with younger buyers or first time buyers!

-Rich

Jul 31, 2012 01:52 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I think a good agent answers a client's questions before the client asks them. In simple, easy-to-understand terms, without jargon. Still, it sometimes astounds me the things that we as agents take for granted, which buyers and sellers do not understand. I have been known to ask: You do realize, right, that selling on a short sale means you have to actually move out of your home and give up ownership? Not everybody understands this.

Jul 31, 2012 01:58 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Mike this is often a problem when the agent does not spend enough or any time informing or educating the buyer or seller on how the process will work. I take the time to sit and go over each step and alo to be there for my client to avoid such situations. I have been called old fashioned but it makes my client happy and keeps them coming back.

Jul 31, 2012 02:41 AM
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

I would tell him that the commission is none of his business when the seller is paying us.  I hate people who try to stick their hands in our pockets.  I tell them that they can do that if they will be giving me a piece of their paycheck when they get it in 2 weeks.

Jul 31, 2012 04:01 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Absolutely, Greg.  A current client of mine helped me realize how little people understand our language.  

You bet, Barbara Jo.  Have a sunny day.

You are so right, Ginny.  We can't assume anything.

Michael, and I'm still trying to understand English.  8-)

Yes we do, W&J.  I didn't realize how little people understand about the process until a recent client.  

I think I know some of those folks, Ron.

You're right, Dylan.  People just don't know. 

That is too funny, Myrl.

No it doesn't, Sarah in Nashville.  Pretty country down there

Absolutely, Cheryl.  And quit frankly, I don't want anybody coming back later and saying, "But you didn't tell me."  Especially if it has an attorney attached to it.

Gene, I would have thought buyers and sellers would have gotten savvy since the real estate meltdown, but they sure haven't.

You're a smart lady, Kathryn.

Well said, Sandy.

That's a great policy, Heidi.  

That is so true, Malcolm.  It's a daily journey with some folks.

C & D, that definitely works with a lot of folks.

Good point, Rich.

It really is the basics sometimes, Elizabeth.  

Hey, Scott, some things that are old fashion never go out of style.  Good job.

Jennifer, they have no idea what we do for our money or how the checks get split up.  Ignorance is annoying in this case. 

 

Jul 31, 2012 06:52 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa
Congrats on the feature! You are right, we take for granted that our buyers and sellers understand what we are talking about. Reality may be that they are embarrassed to admit that they don't have a clue! Thank you for reminding us to speak in layman's terms.
Jul 31, 2012 07:55 AM
Bryan Robertson
Los Altos, CA

I always make sure my clients understand the mechanics of what's going on without the technical jargon.  I work with a lot of professionals but they don't always know what we know.  Better to be clear than not.

Jul 31, 2012 09:14 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Karen, I think you're right.  I'm finding more and more are over their heads, but they don't say anything until it gets critical.  

You bet, Byran.

Jul 31, 2012 10:46 AM
George Lawson
Moreno Valley, CA

Great post, Mike! Especially with today's so-called "savvy" buyers and sellers, it's easy to forget that the glut of real esate data and advice out there might actually be providing our clients a great dis-service. And one aspect of our role as real estate professionals should be to correct those misconceptions.

Aug 01, 2012 05:54 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That is so true, George.  Lots of misinformation out there.  

Aug 01, 2012 10:15 AM