Hello all,
I was looking through a news feed and ran across this story I had to give vent to some rather poignant emotions:
http://www.inman.com/news/2008/08/7/brokers-property-id-agree-39-million-settlement
It is sad. As a real estate broker, one of the first things I was often told when I first got into the business as a salesperson, is that in general, real estate agents have a bad reputation. Is it any wonder why? When you read of how several of the large brokerages are looking out for their own best interest and not our clients, no wonder they think ill of us. I know that when I first started in the business of real estate I was told by my broker that I had to use a certain Natural Hazards Disclosure (NHD) provider. I found out later on when I got my license why, as I was offered a fee of $25 for "printing" out the report for every report I ordered through the NHD company that presented it to me (not Property ID). My conscience told me "no." I just didn't think it right or ethical to be pushing my clients business in any direction unless it was because I knew they the company I referred was the best I had found. Now I am really happy I listened. Had I compromised my integrity, I would have to live with it. Folks we have all got to do the same. Listen to our consciences. If there is anything other than our clients best interests at heart, it is probably the wrong answer. What is so bad about this story is that the practice is so common that even in my small brokerage of three people, me and my two assistants, I have had it offered to me by a smaller NDH company. It really disgusts me that the people that end up holding the bag for things like this, are the same ones we ask to refer us time and again. Make no mistake I run my business almost exclusively by referrals, but I earn them as many of my fellow agents and brokers do. This sort of under the table backdoor dealing should never be tolerated. Not that I would ever lump everyone in the boat and say that most do this, but it only takes a few bad apples to ruin the whole barrel, or at least the whole barrel's reputation. Let me know what you think.
Please remember that my business is built almost entirely on referrals. So, please let your friends, family and neighbors know that you have a friend in the real estate business.
It takes a full-time commitment - anything less and you'd be short changed.
Thanks again, your real estate consultant for life,
Nicholas S. Hoddinott
(530) 419-5054 Office
(916) 376-9328 Office
(800) 959-2549 Toll Free
(800) 959-2578 Fax
<Nick@BigNickSells.com>
http://www.NorCalHomeFinder.com
;)
;)
And the problem is not limited to the NHD. Home Warranties is another big one that provides a nice kickback to Realtors or anyone else who wants to violate RESPA.
Conflicts of Interest need to be removed from real estate. In-house title, mortgage and other controlled business arrangements eliminate comparison shopping, checks and balances and cause reverse competition. Attorneys shouldn't be "selling" title insurance to their clients either as it changes their interest in the transaction and their ability to represent their clients (yet in some states that's the way closings are done).
Dual agency and so many other conflicts exist. Do away with the conflicts and the real estate market will fix itself. As easy at it sounds, it won't happen so long as NAR is able to control the legislature...
www.caare.org