I recently had a dialogue with a fellow professional about short sales. In that discussion, there seemed to be a difference of perspective about just what the role of a broker is. I am interested in your thoughts of whether I am being too extreme or narrowly focused in my definitions of a broker's scope of work/practice.
Short question: Should a broker take on cleaning a home on behalf of a client (or cater/dog sit/help move/tend yard/paint/fix things, etc) or should a broker inform their party as to their obligations verbally and in writing and leave it to the parties to discharge their contract?
My position is the latter: A broker should inform their party as to their obligations verbally and in writing and then encourage them to discharge their contract. (But NOT take ownership of it.)
The other broker shared a story about how the sellers (again, a short sale) left a home unclean with two pick-up's worth of trash, which caused distress for the buyer (understandably). The story then spoke to the brow beating it took get the listing broker to clean the home for the sellers. NOT the sellers, the listing broker.
I was FLOORED. When is it the broker's responsibility to clean a house?!?!?
Permit me to share my response...your input would be appreciated. (Additions made for clarity due this being extracted from a larger context are bracketed thusly [ inclusion ] . )
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I disagree with you: It's [cleaning/removing debris from the home] not any moral obligation [of the listing broker]...at all!!! (Maybe of the seller's, but not the broker's.)
I would say that if you didn't inform your buyers about what happens during short sales - though I suspect you did - then you didn't do your job. That would be your moral obligation. I suspect the crying [of the buyer] was related to the stress of the event, not the "surprise" about the condition.
With regard to [a proposal to establish a practive of requiring] a Seller's "earnest money" [as liquidated damages], they do in Colorado. If the Seller defeats the contract with a ready, willing and able buyer, the sellers owe the commission. Also, they expose themselves to "specific performance" litigation from the buyer -- though highly unlikely, particularly on a short sale. ( As I tell all my clients, "I only play a lawyer on TV, consult a real lawyer to get specific legal advice as it relates to this transaction".)
Also, they risk a foreclosure vs a short sale on their credit report, or, alternatively, a lost time-value of money if a positive balance remains from the equity in the home.
In my short sales, I secure a non-recourse clause in the short sale agreement so there is some more seller skin in the game to "get er done". If you aren't, are you REALLY doing the seller any good vs a foreclosure?
Second, who's kidding who? Just in terms of Realtors, there are about 1.2 million of us, excluding the non-Realtor brokers. (In Denver and Northern Colorado, one not need be a Realtor to use the MLS. ) [This related to garnering a bad reputation in the local board for not making sure the home was clean.]
So, let's say there are 1.5 million practicioners nationally. Do you really think reputations - except for the top 2% or bottom 2% - really get around?
I mean we have brokers who were involved in crime syndicates of mortgage fraud here in Denver (and likely [other broker's town] too) and were INDICTED, CONVICTED AND ARE SERVING TIME. Ask 500 random brokers in Denver: Who would be able to name them? Probably 1 or 2 could of the 500 asked. So, please, an uncleaned house is not going to park on someone's radar! Who ya' kiddin?
Besides, if your buyer/seller says "take their contract" [when informed about how a prior home was not left clean], what position are you in except to share your prior experience, which the clients (appropriately) consider your problem anyhow -- which is likely related to the party to the contract and not the broker. For you to state differently is to do so from an uninformed perspective...you are just ASSUMING it was the broker's fault. The sellers could be the long, lost cousins of Charles Manson, for all you know. Seriously. [The story related, in my opinion, to the listing broker not 'enforcing' that the short sale home be cleaned by the sellers for the buyers.]
Thirdly, I agree that professionalism is a benefit to your client. It's also a key to remaining in business and growing. However, if you are a professional, you "Don't do what is needed". You do what you are contracted to do to the best of your ability.You do what is the "highest and best use" of your time.
We are not painters, therapists, caterers, cleaners, etc. Every minute you are not doing what your skills demand in the marketplace, you advantage your competition. I mean, while you're cleaning a home, your competition is marketing and getting a listing...unless a listing isn't important to you.
We are marketers. We are (in Colorado) folks are able to perform a very limited scope of law as it relates to the Colorado Real Estate Commission approved contracts. (That relates to a decision called Conway-Bogue.) We are resources for lender referrals, craftsmen/craftswomen, movers, etc. We are knowledgeable about our neighborhoods and endeavor to ensure that an open and transparent contract takes place comporting with our state laws and highest and best practices.
We should know what the months of inventory are locally. We should know what paired sales analysis is...and do one to determine value in residential sales. We should know what sells are in any given area. We should know and counsel folks about the incremental challenges of buying a short sale.
I accuse those who muddy those professional waters with all the non-broker activities [cleaning, repairing, vacuuming, etc] are more the problem than those who were like the broker on the listing side of the transaction above.
It's this "Dump all your problems on me" attitude that empowers the public to do JUST THAT. Do you not get the number of lawsuits that stem from a broker taking on liabilities beyond that which they are licensed to do? Activities which your E&O Insurance do not cover.
I mean, selling a home is not life and death. It is a BUSINESS transaction.
The only home related emergency I know of is if it's burning to the ground. In which case, call 9-1-1.
We, as a business, get an immeasurable amount of ego-petting from feeling like the center of the universe for a defined period of time. We call ourselves "experts, [additional comments redacted] and any myriad of self-congratulatory accolades. Hell, I call myself the "Mile High Home Hunter", though I would claim that is more descriptive than self-congratulatory.
Because of that, we act like we have big, red "S"'s on our chests. We are not supermen/women. We are professionals.
If you have unfulfilled inclusion needs or self-esteem issues -- talk to a therapist. However, if you are running this like a business, run it like a business.
Yes, it is sometimes a dollars and cents decision to step up. However, that's not been ANY of the responses I read. It's all been about feelings, love, tenderness, happiness, kumbaya... If you want love, get a dog. A dog will make you feel like the center of its world, much cheaper. I prefer to get my love from my family.
Hey, want to market and sell your home? Call a Realtor. [This is my example of an elevator speech that all should have to understand the value they bring to a client -- value exceeding cleaning, vacuuming or repairing a home.] I will bring my entire suite of professional background, which includes:
- An MBA
- 20 years in Global Sales Experience
- A strong reputation for knowing the market which has had me featured on 3 of Denver's highest rated radio stations, the Denver Post, the Denver Business Journal and Realtor magazine. (See my own self-congratulation there.)
- Three of the world's top rated websites: www.MileHighHomeHunter.com and www.MileHighForeclosure.com and www.TheHomeHunterBlog.com (which are in the top 1% of websites worldwide according to Alexa.com). They are ranked in the top 800k to 1m or so out of about 130m website worldwide. (More self-congratulation - I am not immune.)
- This means folks permitted into my sphere get one of the top 3 or 4 websites for Colorado Real Estate, and get tons of view on my website.
- Strong contracting and negotiating skills
- A thorough knowledge of the laws, practices and markets in which I work.
- A database of referrals to work the niche that is best suited to my client's needs -- which means I refer deals, even if I really want the whole transaction. I won't transact something that isn't in my wheelhouse; my ego is not that invested in the deal.
- A deep resource bench of attorneys, tax people, lenders, craftsmen/craftswomen to support my clients.
That's what my clients get. Not Superman. A professional.
That's been the focus of my response and my source of incredulity in this thread. We are not of value because we are supermen/women; we are of value because we are a focal point for professional resources.
Don't dilute it by kidding yourself that cleaning a home makes one a better broker. It doesn't. It devalues oneself.
Sorry, this was so long. [Response ends]
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That is the response I wrote.
So, am I wrong? Or am I right?
If I am wrong, you believe that brokers are accountable to pick up the slack when sellers and buyers do not..
If I am right, then you believe it's the sellers and buyers contract and the specifics are for THOSE parties to complete.
I really would like your input.
Michael Clarkson
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