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Real estate industry rule needs more clarity for staging industry

By
Real Estate Agent with EXP Realty Canada Inc. NSREC# 9421

I was in a lengthy discussion with an agent yesterday who was interested in using my services and wanted to promote that he uses staging in his listings on flyers.  During the discussion on how best to approach the wording it became clear that there was a real estate industry rule that needed clarity.

Rule: Agents must recommend no less than 3 names when referring to a product or service.

It is my understanding that Staging is a marketing tool, not a service such as a carpenter, plumber, inspector.  These services lend itself to being careful about liability.

How does an agent promote using a stager?  Can they include my logo on the flyer?  Does he have to recommend three or can he just call me when needed?

Kimberly Uksik
Independent - Pickering, ON
Home Stager - Durham, Toronto, On.

Good Questions Tina,

Something I had never though about.  From what I can see and in speaking to a few different agents is that some promote staging services in their marketing material but don't divulge who the stage is.  It seems the ones that are using stagers are using the same one exclusively.  Some others are also using the stagers information in their marketing materials.  Hopefully some agents will respond and can maybe shed some light on what they do or need to do.

~Kimberly~

May 15, 2007 02:31 AM
Anthea Click
Fresh Perspectives - www.InsideNashvilleHomes.com - Franklin, TN
Nashville Home Stager - Selling Nashville, TN homes quickly!

Tina,

The rules are different here in Tennessee, but what about the agent promoting you as part of his team like he would if he had a closing coordinator, assistant, or buyer's rep? You are just apart of his overall marketing plan to get the home sold.

May 15, 2007 02:34 AM
Lynette Lawson
Starlight Design - Yucaipa, CA
Inland Empire, CA Home Staging

It sounds to me like the agent is afraid of making an outright recomendation. So by listing multiple names he does not have to make a recomendation. I don't know how to overcome that though.

Lynette

May 15, 2007 03:24 AM
Tina Parker
EXP Realty Canada Inc. - Halifax, NS
Managing Associate Broker
The rule is written in the terms of sustaining the real estate license; a rule broken can lead a fine as much as $5,000!
May 15, 2007 05:17 AM
Sheron Cardin
California Moods Inc - Selma, CA
ARTIST - A Home Stager/Sellers Best Friend!
Tina - here in California, most agents have the same relationship with their stagers and they do with their title company, their lenders, etc., and buyers and sellers usually just follow their lead...it just isn't questioned. It will happen just like mentioning your favorite restaurant when someone is new to your area...they trust you. Referring a vendor is a whole separate subject and it has nothing really to do with staging. Often, agents have in-house stagers as well. 
May 15, 2007 12:53 PM
Toronto's 2 Hounds Design: Decorating + Staging
2 Hounds Design + Home Staging - Toronto, ON

The agents I've dealt with in Ontario have never mentioned this.

I think they look at this as if I am part of their team. My info package is given to the homeowner by the agent, but usually I just get a call from the agent to see a house or condo since they choose to pay for my service.

If plumbing or electrical work needed to be done, the agent wouldn't be making the call nor paying for it. If you are partnering with the agent on a flyer, it is like saying you are a team as well.

May 15, 2007 02:09 PM
Anonymous
Carol Ellis Luxury-Domain to Home Stage

Tina, I don't know what the practice is in Va. regarding the stager's relationship to the  agent's liability.  For my part, I am LICENSED, BONDED AND INSURED.    It is on my website, on all my printed materials and one of the first things I tell anybody.  I try to use only people with the same credentials for movers, housecleaners etc.  All of us are able to provide an insurance certificate upon request. 

This should end the agent's apprehension. 

May 15, 2007 10:54 PM
#7
Shell Brodnax
Real Estate Staging Association - Valley Springs, CA
CEO- RESA

Have  him promote you as part of his team and he can make it a value added service. He can pay for consults on lived in homes and then you have the opprotunity to upsel you doing the work and the home owner can pay.

WHere I live many agents pay for the entire staging because they know the house will sell and they make it back.

May 16, 2007 01:55 PM
Tina Parker
EXP Realty Canada Inc. - Halifax, NS
Managing Associate Broker
Great advice by everyone, thank you.  I'm going to email this blog to him.
May 17, 2007 12:39 AM
Karen Otto
Home Star Staging - Plano, TX
Plano Home Staging, Dallas Home Staging, www.homes
I never even thought this was an issue but truly now I see it can be legally where you are.  If the realtor is paying for any portion of your services I don't see where it would be a problem, however, if he's referring you to a client as a service (like painter or plumber would be considered) I can understand the rule of 3 choices so the client has the control and choice. But the other points made here as the "value added" service and part of a team would be another angle and would that be an issue of in- house marketing and not the same in terms of other services & the legalities you mention? Food for thought, always welcome - thanks Tina.
May 21, 2007 09:42 AM
Sue Riley
RE/MAXPrestige - Van Alstyne, TX
GRI

I am not sure about it being a rule to give 3 names and that may be a state rule. I have been given a variety of advice on this. One very experienced and seasoned agent says if the client asks you for a recommendation and you have someone that you know and trust make that recommendation. If you give them 3 names and they pick one and it does not work out it will still be your fault in the eyes of the client regardless of how many names you gave them.

Sue

May 21, 2007 11:04 AM
Home Staging
Reston, VA

The agents I work with generally pay my fee.  They also refer to me in their marketing materials. I have noticed that most realtors are loyal to one stager unless that stager becomes busy or is unavailable.

Denise

May 21, 2007 11:26 AM
Tina Parker
EXP Realty Canada Inc. - Halifax, NS
Managing Associate Broker
I personally think all agents abide by the rule of recommending 3 but emphasizes one, the one they trust. 
May 21, 2007 12:15 PM