Kicking Back or Kickback, I know the ethical choice, but do you?

WOW! Thank you everyone for your wonderful comments. Certainly didn't expect this, going to be a busy Monday answering all these.

Anthony - Glad I could share my thoughts with you and everyone else, hopefully it really is food for thought.

Michael - As they should! Getting a gain from an unexpecting buyer or seller should be a violation.

Kristin - We shouldn't we should get those referrals based on a job well done, not because we are paying for them.

Julie - It really is a fine line isn't it when it comes to sending us referrals across the country, yet when we send them locally it is considered illegal?

Debe - I'm glad you found a good lender you can count on, but you do have to wonder if she is only sending her husband business, because it is her husband and not because it is what is right for the client.

Larry - I agree, if I don't think the person is good enough to refer them without getting paid, then they don't get the referral, plain and simple!

Beth - WOW, paying car payments and cell phone bills? DANG, if that person gets caught, I hope they like small rooms with bars.

Michael - It really is sad, but it doesn't make it right to have to try to buy the business.

Shane - I think the ones that think this is alright, just assume they will never be caught.

Jenn - Exactly, these people call us even when they aren't selling their homes for advice and if we do what is right for them at that time, they will help us when we need it.

Fran - So true!

Virginia - Good for you! You hired him because he did a good job, not because of the amount he cost or what he offered you.

Rita - Sounds like a simple enough question, but when they are offering me the money, the shoe is on the other foot I guess.

Angelia - Not necessarily a good deal, but good service!

Dustin - Is that like calling not raising taxes, but adding a fee the same thing?

Rebecca - I have had the same question asked of me, but you do have to wonder how many agents send referrals to other agents based on how much of a referral fee they are going to get versus how well they think the other agent will treat their client.

Kelly - Thanks!

Mark - That is a good question, why do so many mortgage brokers call us instead of consumers? Is it because they know we may have 4 buyers per call versus one buyer per 100 calls?

Cedric - Oh well said!

Nancy - Glad to hear it, hopefully you weren't doing it already.

Casey - I can see this type of thing happening over and over in Florida where there is one house sale for every 100 agents.

Steve - Great, he is probably teaching others to do it now instead of doing it himself. MUCH BETTER?

Debbie - Exactly and maybe a thank you card!

Debbie - I have told people that if they want to prove themselves without having to pay me, then offer their services free to a couple of my clients. If the client loves the service, then I will add them to my vendors list and they don't have to pay me a dime. But, if they screw up even once, they are off that list for good!

Christine - I don't think the consumer realizes that by taking kickbacks their agent maybe not putting their client's interest first and that is not the way we should do business.

Jim - I like that, that is a good suggestion, that way the client is deciding if they want the service and not on your recommendation, just because you know you would be getting 10%.

Rich - Refer to the person that will do the best job for your client not who will send you the most business. I've seen some mortgage brokers send to agents that are just crappy and their clients are happy, but that agent will send them 4 or 5 leads a year back. (Not the way to do business)

Sandy - Have you seen the market lately? That is why! You should have reported her, because that money had to go through her broker! Good for you on not paying for referrals!

Shirley - Oh you will be, just give it time as the market gets harder for construction guys, I'm guessing you will see it there soon!

Cat - Some people out there don't see anything wrong with it, but our clients sure do once they realize that we aren't doing it for them, but ourselves.

Sandy - I give kick backs "Right in the ASS as I kick them out my door!"

Allison - I know finding people like this is hard, but I believe that if they have to offer kick backs to get the business in the first place, it says enough to me about their business ethics.

Wolff Financial - I wouldn't put it past them?

Kerry - Or a nice homemade meal at their house would be cool too! I would rather get to know my business partners outside business than have a card or money from them.

Jim - Are we prostitutes? They seem to have a dollar amount for everything?

Missy - I pay for those, but I don't think I have ever heard of a kickback from those either... I wonder if that is a state by state thing.

Elizabeth - Since I have never seen that Elizabeth or Missy, does that appear on the HUD?

Russ - I know they have to earn our trust someway, but paying us certainly isn't the way to earn my trust.

Patricia - I think this is what I'm going to propose in the future.

Roland - I know when I get a referral from anyone, I know that I got that referral because I earned their trust, not because of the amount of money they thought they would get. I love the fact when I get a referral from the rain that they refer it to me without ever asking how much of a referral they will get. That tells me they are doing it in their clients best interest and I will pay them for the referral, but I'm glad they aren't basing the referral on how much they will get paid.

Lynda - Service should be what it is all about, not price, not kickback, nothing but the service they provide.

Heather - Good for you, than your clients also know that you are doing what is in there best interest and not yours.

Larry - The sad part is the public only gets to see what the news portrays and that is usually the stories of the agents that didn't have ethics to do the right thing for their clients.

Christine - Have you ever seen the Oregon Coast Line? It is always fuzzy and gray, I'm not walking away from it. (LOL)

Jack - You are kidding me? Home inspections are one service I certainly wouldn't want to bid out. You are one of the last lines of defense from buying a bad home, if I knew people were paying for the business, than I would lose total respect for the person.

Fran - Why should they Fran, they are making to much money from it. Hey if you pay me enough, I will be a Phillies Fan?

Christopher - Well, in a way that is what an unrepresented seller does when they offer a commission to a buyer's agent that brings them a buyer. But, if they want to be represented in their listing and get the home marketed and sold, then they need to work with an ethical agent that will work for them and not on an upfront dollar fee.

Paul - I don't care if a mortgage broker sends me a lot of business, if I don't think they will do good for my clients, I will not send them business in return.

Fred - I have no problem sharing in marketing expenses, but I also put in the marketing material that I'm not advocating them, I am just co-marketing with them. It should be the clients decision to hire someone, not mine.

Scott - So, true, in the end your good name is all we have and I really want to keep that.

Lane - Exactly!

Donna - Personally I don't see a difference, but I know RESPA does!

Susan - That is scary that he thinks that he "legitimately" gets paid. Now, he is breaking the law!

Tammy - Some cookies are darn good, I agree, but I doubt a $3 worth of homemade cookies count as a kickback. I guess it depends how good the cookies are. Good for you and I know we have a title company here that does that with a certain company and it bugs the heck out me. Yet, they say it is all legal, because they are part ownership of the real estate company.

Richard - I would love to see more and more people get caught, but I know that only about 1% will.

Catina - I wish some other agents and mortgage brokers could figure that out before they are on the six o'clock news lumping us all as unethical again.

Jennifer - Is a divorce chaser like an ambulance chasing lawyer?

Jason - I think we are going to see more and more people taking these kickbacks when times get tough.

MeLisa - OUCH, I would never work with that builder again. You could do all the marketing and then he would do the same to you!

Steve - I think a lot of people left their first principle brokers because they found out the truth about them, I know I did!

Jason - Exactly!

Charles - I have let people print my flyers, but I tell them that if they call them, than it is their client to do what they wish, if they call me, than it is mine and they may not get them as a client. I let the client choose who they want to work with based on personality, not who printed the flyer.

Vickie - Good for you and I would have taken that other agents name at the same time and reported them for talking to your sellers about listing their property and also the ethics violation of the kickbacks.

Morgan - It is sad they think we get money for everything we do, when sometimes we are there just to help.