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Broker Bryant's advice. Sound or foolish?

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

OK, I put up a post yesterday,(you may need to read it first) sharing an Email I had received from a consumer asking me for my advice. As promised, I am going to post my response below. First, I want to thank everyone for their responses, by reading through the comments it should help Mr. Consumer make an informed decision on the way forward. The point for my previous post was twofold. First I wanted us to be able to learn from each other and secondly I wanted the consumer to get additional input to help him with his decision. After reading through the comments I think both of these objectives were achieved.

Several folks had responded that they would NOT give any advice since the consumer is already working with another REALTOR®. While I can appreciate this response, personally I disagree. The consumer contacted me and asked me for advice. I have no problem with giving it and do not feel I am interfering with the contractual arrangement, with his agent, in the least. Our REALTOR® Code of Ethics explicitly states that I can discuss business with any consumer as long as they are the ones initiating the contact.

Standard of Practice 16-13

  • All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client's representative or broker, and not with the client, except with the consent of the client's representative or broker or except where such dealings are initiated by the client.

The client is free to seek advice from whomever they want. My opinion is, that if their REALTOR® was doing their job properly, then their Buyer/Seller would not be calling me for advice. My responsibility as a REALTOR® is to protect the public.

Anyway, I have known this particular consumer for several months and have had numerous email communications during his home buying endeavor. He trust me, I like him and want to make sure he is making good decisions.

So, not only was I not hesitant to give my opinion but I felt compelled to do so. Here is my response to his Email:

Good morning,

First, there's a saying that I use in my business "I never hold the buyer responsible for the incompetence of his agent" So, I guess in your case "Don't hold the seller responsible for the incompetence of his agent" If I didn't take this stance I would drive my self crazy.

OK, were these the only two issues of concern in the inspection? If so, at least it's a very sound property. At this point these are your options:

        ***Move forward and close

        ***Walk away

        ***Renegotiate the deal

In Florida, a room must have a closet to be called bedroom. If it doesn't, it's called a bonus room, den or office. Depending on the particular neighborhood, it may or may not affect value. The sq footage is still the same, it's just the room has a different function. Would having a closet in the room add value for YOU? If it would and it is something you want, then get estimates on what it would cost to remove the bookshelf and put in a closet and ask the seller for a cash concession. If the closet does not add value to YOU then even though the agent screwed up it really shouldn't be a deal breaker for you.

Concentrate on the deal not the agent.

I would have the same thought on the central vacuum system. Is this something that you had your heart set on or is it just something that was mentioned, so would have been nice to have, but now it's gone? Would you NOT have been interested in the house if you knew it didn't have a central vacuum? Is it REALLY a deal breaker? If not, then either forget about it or maybe ask the seller for a cash concession.

You have to ask yourself what are you trying to achieve. Are you more interested in finding a reason to back out, or a solution to move forward? The agent will be gone in a matter of weeks the house will be yours for a long time.

"Don't hold the seller responsible for the incompetence of his agent"

If this is the house you want, "Don't let the incompetence of the agent prevent you from getting it" If these issues are really more aggravating than deal breakers, then move forward, close on the property and enjoy your new home with your family. Stay focused on what you are trying to achieve.

Then after it's closed, fire off some letters to the agent's broker.

Now, if I were the listing broker, my response would have been, "I'm so sorry, I made a mistake. What can I do to make it right for you? What I can I do for you, to move forward with this deal?"

Mistakes happen, but for him to just blow it off and make light of it is very bad in my opinion. But, as hard as it is, you have to try a separate it from your goal. I hope this helps. END OF EMAIL.

That's it. My intent is to get the Buyer focused on the end result. I could tell by his Email that he is letting his emotions dictate a financial decision. The Buyer has already agreed to get his emotions out of the deal and appreciated me pointing this out to him. He is not in my State so getting his business was not my motivation. My motivation was to give an honest answer to a legitimate and honest concern. So what do you think? How did I do?

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comments(71)

Anonymous
Stan

Heather -- No apologies necessary.....I love the expression.  I'm gonna "steal" it for later use.  ;o)

If AR ever gets to the point where people cannot let their guard down and speak plainly, openly, and honestly; it will be a lesser place for it.  We all have our "business face" we put on in the morning to do our jobs, but this should be a more relaxed atmosphere.  In my years of business, little gets done when everyone and everything is scripted and a lot gets accomplished when everyone pours a cup of coffee, takes off the tie, and communicates.

Bernie -- I "met" BB here on AR.  We've struck up a friendship through email and participation on his blog.  I full well intended not using a buyer's agent, but family dynamics and circumstances dictated otherwise.  All in all, I'm not disappointed with my agent.  While I sounded pretty hard on them in the email, it was a moment of high emotion.  There are things I wish they were stronger at......but they probably feel the same way about me.  :o)  When the deal started getting squirrely, the first thing I thought was who knows more than I do, someone I trust, and I need some help figuring out what's going on.....so I sent BB an email.  I felt it best to seek counsel from someone completely OUTSIDE the deal.  As we say in the South....someone who doesn't have a dog in the fight.  

To all -- I have no problem with someone making a simple error in a listing and, in my comments, we made a joke of a few.  However, it raises a concern when the list continues to grow AND the errors have not yet been corrected after being brought to their attention.  THAT concerns me......

Was it done to mislead?.....I cannot believe it was.  NOBODY is THAT stupid!....even me.  One of my biggest frustrations during my search was exaggerations in descriptions.  I can't count how many "level lots" I wasted my time looking at which were so sloped, you'd roll to the end of the property before you could stop your momentum.  RealtorSpeak using "award winning schools", "much sought after", "must see", "won't last long" are so abused it's not funny anymore; but goes with the territory of agents fluffing up the listing to generate interest.

I kind of know the difference between a broker and an agent; BB is both if I'm not mistaken.  We, of the uneducated masses don't make that distinction.  They are all real estate agents and who cares whether they are a broker or not.  I know there is.....but nobody on the consumer side really cares or gives it a second thought.

Apr 09, 2007 06:16 AM
#52
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Maryland license law states that "without a written buyer agency agreement" an agent cannot evaluate, negotiate or prepare contracts for a buyer. 

I may discuss real estate in general with prospective buyer/clients, but never with advice to specific contract, negotiation or evaluation matters including inspections, property condition, etc.  One of the reasons I got rid of my agents was to reduce risk.  Giving advice really stakes one out, see Centennial, by James Michener. 

One of the problems with giving advice to non-clients is that, most of the advice given so freely is not always good advice.  If a buyer or seller is unhappy with the result of their transaction, any outside advice is going to sound good to them.  Therefore, whether the buyer is really being abused or not, outside advice, even bad advice will be considered.  That's the risk. 

While I am 100% sure that Broker Bryant's advice was beneficial to the buyer, that doesn't mean it's a good idea to get involved in another brokerage relationship, even if the intent of the advice is helpful, not to interfere with representation, or anything harmful to the buyer. 

That's my story and I'm sticking to it. 

Apr 09, 2007 07:01 AM
John Evarts
Classic Property Management of Santa Clarita - Santa Clarita, CA

Bryant, I always enjoy reading your posts. I was very curious to see how you handled it after reading the first post. I didn't know what the right thing to do was. After reading your response, I now know. Thanks for sharing useful, up-to-date, likely-to-encounter scenarios with us. I like reading your posts because I usually learn something good.

Apr 09, 2007 08:13 AM
Anonymous
laurie mindnich

NOW WE'VE GOT IT- 

Words directly from the buyer.  While lacking in a response from the listing agent, it provides credibility to the whole debacle.  My point, to ignore if you like, is to try, in every circumstance to have full knowledge from both sides before TAKING one.  Thanks for the comment!

Apr 09, 2007 08:39 AM
#55
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
I think you gave great advice. It's hard to separate the emotions from the actual business transaction.
Apr 09, 2007 09:11 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hey Stan, This is for you.

Your first gold star!!!!

Apr 09, 2007 09:39 AM
Rich Schiffer
Swarthmore, PA
Referral Agent, e-PRO
Bryant, your advice to the client is sound, though I thought a bit harshly worded:  I would have said "ommissions of" rather than "incompetence of" in describing the other agent's actions.  I just think that you may be crossing the line into the murky waters of libel by using language like that, especially when the facts of the scenario are coming to you in this manner, rather than first-hand.  Hearsay is what it might be called in court.  To call someone incompetent based on hearsay is a bit harsh...that's all I am really saying.  If the end result is that the consumer focussed on their goal, and went forward despite the emotional roller coaster they have been through, then the agent certainly was not wronged in the process.  In fact you help them out.
Apr 09, 2007 11:41 AM
Paula Wyatt
The Moore Agency/ Metro Brokers - Colorado Springs, CO

I made a comment yesterday quite similar to your email.  And I agree with you correct assessment about emotions.  I just got off the phone with a client regarding an inspection notice.  Buyer is upset over something very minimal.  Trying to bring her down was difficult.  The house is a great house and for its age minimal problems.

Like I was taught years ago in Real Estate you don't make or break deals over thousands of dollars.  You make or break deals over hundreds of dollars.  I have found that to be true.  That is when the emotions step in.

I am glad your friend has someone he can count on for down home honest advise.

Apr 09, 2007 11:45 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Rich, I was trying to make a point to the buyer. If I hadn't known the buyer for quite a while and had not been aware of his constant struggles with trying to purchase a home I may not have phrased it as I did. The post IS anonymous though. No names or even the State where the deal is in has been mentioned. So libel is really not a possibility. I'm not talking about a particular agent I'm addressing the mid set of the buyer. Does that make sense? If a REALTOR(R) reads it and sees himself in this post, well that's a good thing in my opinion. I don't work for REALTORS(R) I work for the consumers. My intent with this Email was actually to just refocus the buyer on the house not the agent. You are right though I probably helped this transaction move towards closing. We'll see. I appreciate you taking the time to read and comment. I'll be the first to admit I do get carried away sometimes. My frankness, so far, has never got me into any trouble but it certainly may some day. But hey I got to be me:)

Paula, I have had deals kick over a $100 repair! We have to keep folks focused. That's why they are paying us.

Apr 09, 2007 12:33 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Sorry I missed the event, I was in Panama City Beach, but we left the day of the event and had a long drive back to MI
Apr 09, 2007 12:59 PM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

Whoa-what a discourse I've missed!  I, for one, am glad to hear that Stan is buying a home after stalking BB's blog for so long.  ;) 

Suppose I'd concur that the response was appropriate in that it was focused on the house-and the question that we all need to ask often-'do you want the house or not?'  Doesn't seem to me that it's anywhere close to being specific to any particular market-rather is a situation common to real estate.  I'd say that based on what I've read, if I were the consumer, I'd consider filing a complaint for puffery after it's all said and done.  I mean, if it were one mistake or even two, I could consider it to be erroneous...but several?  My grandma called that lying.  Which isn't fair to the sellers OR to the buyers. 

Stan, that was some money well spent on that inspection, wouldn't you say?

Apr 09, 2007 01:43 PM
Julie Ferenzi
john greene Realtor - Plainfield, IL
Julie Ferenzi

Bryant, I can only thank you for the day that I reference this particular blog in my mind when a similar situation arises!

That is what I love about Active Rain.  I don't have the luxury of "working" with other agents because I pretty much work from home, but hearing about experiences and situations like this make a better prepared for what may come my way. 

Living vicariously is the safest way to learn the best lessons from someone who has already attended  "The School of Hard Knocks"!

Stan, thank you so much for bringing to light the expression and emotion of the buyers side of this transaction.  YOU are the one who has to live with this decision and thankfully you had someone as ethical and honest as your friend Bryant, to help you make a decision in your best interest.  That's the great thing about friends... they know exactly what we need to hear!  :)

TLW... " You told me you have only been wrong ONCE :)"  Isn't that the truth?!  LOL!  Love it!

Apr 09, 2007 04:33 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Bryant,

Happy birthday and happy easter,   I was tought that if  the transaction is in the middle, we can not advise even if they ask for an opinion, unless the person who is interested sign an agreement with you and cancel the other one. Maybe it is state laws / regulations, but oh well. Good blog.

 

 

Apr 09, 2007 09:55 PM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

SVW for Julie...

Drama Llama...You did good. Real good. This was a great discussion and it's obvious that we all learned something here.

I also paid close attention to your thoughts about Active Rain. Thanks for pointing all that out to our peers here.

Some of them really needed to hear that it's okay to be human :)

Again...Thank you Stan.

TLW...ROAR!

Apr 10, 2007 11:08 AM
ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779
REAL ESTATE REFERRAL NETWORK - Asheville, NC
CONTACT janeAnne365@gmail.com

BB, Stan and All~ 

I have  spent the last half hour reading and reading ...catching up after some time off...OH BOY did I ever miss some gems...THIS one for example...great read from the initial article all the way through ALL the comments. Since I am arriving late to this party...I'd like just to add a couple impressions I have...1)not to be obnoxious, but from reading this entire piece from start to finish, I think we are a GREAT group of real estate professionals...full of spirit and caring 2) I appreciate the opportunity to share reality realty...and 3)it takes dedication and authentic communication to move forward in this business...thanks for that and for your generosity in sharing, Bryant......

Apr 11, 2007 04:08 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Thanks janeAnne, I too thought the community really stepped up and made this a great discussion. I love reality realty!!!
Apr 12, 2007 12:04 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty
BB - Great minds think alike - you and I are on the same page with this one - let us know what happens!
Apr 12, 2007 01:48 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
UPDATE: STAN DECIDED TO MOVE FORWARD WITH THIS TRANSACTION
Apr 12, 2007 01:51 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

I've stayed out of both of these posts, but very cool read.

Apr 12, 2007 06:02 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Thanks ARDELL. Consumer centric enough for you?
Apr 13, 2007 12:30 AM