In 2005, my mother decided to purchase a condo.  She had been a renter ever since my parents divorced a dozen years prior.

Naturally, she turned to me.

All in all, it was a great experience.  I do remember one phone conversation turning into a shouting match and ending with us crying and apologizing to each other (for the record, other than that one time, I have never shouted at a client and I am also not aware of my mother ever shouting at a service provider other than me).  Not only was a big step for her, which naturally stressed her, I was stressed from seeing my mother stressed. 

Simply, I was emotionally attached to the transaction.  It was my mother, I could not help it...and we both expected it from the beginning.  I warned her beforehand that since my client was my mother, things would likely be different than if it were any other transaction.

She is an amazing woman and means the world to me.  Sometimes though, we are too much alike and it causes conflict.  I cannot count how many times we've gotten into a friendly argument over something only to realize at the end that we are both arguing the same point.  Not only is she my mother, she is also one of my best friends.  To say I put her on a pedestal would be an understatement.

I've heard many times that you should not work with family (whether in a business, representing them or having them represent you).

I strongly disagree.  The condo she decided to purchase was the third one she saw.  Knowing her so well, she didn't even really have to tell me what she was looking for -- I already knew.  Although I let her make the decision, we both felt the same way about the first two places.  Upon walking into the third place, we both knew it was home for her.

It was both a difficult transaction and one of the easiest I've had (if that makes any sense).

If she ever wanted to move, I would surely help her sell the current condo and find a new home.

The only downside I see is that it is a more "raw" relationship -- meaning nobody holds back when they probably otherwise would.

What are your thoughts on working with family?

 
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14 Comments on What are your thoughts on representing an immediate family member?

AUG
19
2008
Localism Sponsor

Hey Jesse,

I actually made it a policy not to take on any family members and my mom (had a story and relation close to yours) , the reason behind that being, on a transaction I did years ago, my buyers (family members) had a legitimate cause for a lawsuit regarding disclosure items 2 years after purchase. And because I was their buyers agent they felt they would harm me in the process and their lawyer advised me that me being there agent would make their case weaker in the courtroom. Hence that day forward, I have chosen to refer family business out and oversee the transaction as an independent and non biased source.

 

They have been much happier and I have kept my chair at thanksgivign over the years despite some of our family members being ousted.

Just a thought

James

10:11pm • #1
129,146 Points 3 Featured Posts

My parents are looking at a buying a house in the Kansas City area.  I will help them but I will not be a part of the transaction.  I do not like to be emotionally connected to a sale.  I feel that emotion clouds my judgment and I like my judgment to be clear.

10:12pm • #2
1 Featured Post

Working with family is fine as long as there is good communication. I represented an immediate family member in a purchase - REO property, months of delays, etc. If you communicate to the family member in the beginning that this is a business transaction and you will work like you always do (same diligence, tenacity, whatever else you can offer), then they should have the expectations that any client would. It's different for everyone, since family dynamics are sometimes crazy, and communication is key, so I would say it's an individual decision, but I didn't regret it.

10:12pm • #3

I've seen some deals go bad with the closest of family members.  Ask if it's really worth the risk...

10:34pm • #4
363,210 Points 9 Featured Posts Localism Sponsor Outside Blog

I guess there is no right answser.  I would prefer to refer them to someone I trust and then be there to counsel them if needed.  It is tricky indeed.

10:43pm • #5

James:  Interesting!  If I bungled my mother's transaction, I would encourage her to pursue the same avenues as she would with anyone else.  Having said that, I never thought about the appearance of it in the court room.

Justin:  Justin, my judgment was clear.  She got everything she wanted and even though the buyer had to make more repairs than she had hoped, she said at the closing table "I am glad that you are the buyer on my condo."

John:  I think you hit the nail on the head -- family dynamics do come into it.  One typically has a closer relationship with certain family than they would others; and it is often a different type of connection.

Joan:  It is tricky.  Luckily, my mother and I are enough alike that we are usually on the same page.  The same concerns she has/had are the same concerns I have/had.  It was much easier to anticipate her wants and needs.  In fact, I took things into consideration that she never thought of.  For instance, she said that she never wanted to move again.  I showed her ground floor condos that were handicap friendly.  If she never wants to move, then what she ultimately bought needed to be able to handle anything that comes down the road.  If she were to ever need to be in a wheelchair, she will not have to move, as her unit is already handicap friendly (outside entrance, wider door frames, large bathroom with turn radius for a wheelchair, etc).  It was much easier broaching that subject with her than it would be with anyone else -- plus, I already knew our family's health history!  I doubt any other agent she hired would have thought that far ahead -- especially since she made the "not wanting to move" comment in passing.  What she says is what she means though, so even the slightest comment made in passing is meant to be taken seriously...anyone else may have missed it altogether.

11:01pm • #6
AUG
20
2008
179,902 Points 1 Featured Post

I see many agents get their start with family and friends.  But I prefer to keep them separate from business and so far have been successful in keeping them separate.  I've seen best friends on the road to worst enemies once the going gets touch in a business transaction.

3:04am • #7

I am kind of shocked that there hasn't been anyone really for it.  What about the hundreds of thousands (or more) successful family businesses out there?

My mother's transaction was one of my easiest and best.  It was smooth as could be, minus our one moment of stress.  If every transaction were as easy...

Is my family different than the norm?  Isn't there anyone else that has done it successfully, where both parties would wholeheartedly do it again?

It was not the first time I worked with family either -- just the first time in real estate.  The other times I worked with family (I worked for my mother when I was a teen -- and then she worked with me for awhile -- I worked with my brother's fiance, and other examples), were also great experiences.

Perhaps it comes back to family dynamics?  I think one thing that helps is the respect we have respect each others strengths.  I respect my mother for being my mother -- so even though sometimes she gives me advice that I already know, I know she is doing it as a doting mother.  When it was time for her to buy, she knew I was the expert and sat back and let me guide her without questioning me.

3:26am • #8
122,838 Points 16 Featured Posts Outside Blog

I work with family and I treat it like business.  I do all of the same contracts, etc.  I make sure that it's business and work to keep the personal side out of it.

10:14am • #9
2 Featured Posts

It's funny reading these posts. My first response was, of course I would work with my family and represent them! My brother will be relocating to VA and I will undoubtedly represent him. It's interesting to see all of these different perspectives and angles you would have never thought of before. Great post!

1:28pm • #10
2 Featured Posts

I do not even represent myself!  I have my own home listed with a colleague in my office, after all don't I deserve the experience and advice from a Realtor during my own transaction? 

2:44pm • #11
Hit Router

Jesse, I wish I had family members looking to buy or sell in the market areas I serve. When my dad sold his last home, he had his agent fax everything to me for my approval, half a country away. As long as your relationship with your mother is a good one, why not? Now, you need to ask your mom for referrals!

8:05pm • #12
AUG
21
2008

There we go... now I have some people helping me not question my sanity anymore!

Coeur:  I think that is key -- business and family seperate (during a transaction).  Our calls about the house were about the house -- three hours later, a call may have been about "how is your day going."  I did call her Mom though, except in front of the other parties.  I wasn't going to address her by anything different because I assumed a different role.  In Maryland, we disclose on an addendum that we are related to our client, but the actual relationship is not specified.  Since my mother and I have different names, it was decided that the other side would not know she was my mother (they only knew we were related) until the time was appropriate.  My mother did decide it appropriate at some point before closing though.  Nobody was surprised though.

Jane:  I would not recommend representing yourself, either.  In my state (and it may be nationwide -- or even an insurance company mandate), my E&O insurance does not cover transactions where I represent myself.  That alone is worth using another agent, on top of having their insight, unbiased opinion, etc.  Doctors shouldn't examine themselves, lawyers shouldn't represent themselves and agents shouldn't represent themselves.

Richard:  Well, at least your dad wasn't down the street and using another agent!  Did you at least get a referral fee? :)  Trust me, my momma talks about me every chance she can. ;)

12:04am • #13
AUG
25
2008
19 Featured Posts

Ouch, this is a tough one. If they are VERY close, then I do it for free with a 100% rebate. I just can't take their money. But I recently avoided representing my girlfriend's parents. Thank God. They "bought" a $1M place... but then changed their mind when they were under contract. I am glad I wasn't a part of that.

It also depends on how busy you are. If you take them on, and that means you have to turn down other clients, then you are effectively losing money (if you give them a refund).

Frank

10:53am • #14

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Jesse Barron, REALTOR® - Real Estate Made Easy™ in Anne Arundel County, MD

Annapolis, MD

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Keats & Co. Real Estate, LLC

Address: 8860 Columbia 100 Parkway, Suite 304, Columbia, MD, 21045

Office Phone: (410) 750-9130

Cell Phone: (443) 875-8224

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Jesse Barron discusses Anne Arundel County living and real estate, Maryland real estate, foreclosures throughout Central Maryland, general real estate news and much more!





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