Ethics and You

By
Real Estate Broker/Owner with Publicover Realty Group, inc BK3013613

I encounter many Realtor that have 2 sets of rules, although none are willing to admit it.

One set for themselves and one for Clients. I'm sure many of you disagree with my conclusions and I certainly understamd. I think if you look at it objectively, even in your own experiences, you will see the differences.

Let's take a look at just 2 examples.

1. Commisions: You're doing reseach for your client. the client wants to look at 8 homes in a community. You find more than eight and start to eliminate some to get the list down to the 8. In doing so the agent has 2 homes that APPEAR to be exactly the same, price, square footage, everthing, and even a better match than the other 6. The one difference is the commission. one has 2% and the other has 3%. which one do you think the agent will eliminate to get the 8 require?

2. Home inspectors: Would you use the same home inspectors to inspect your buyer's home as you would a property YOU were making an offer on? I've seen it myself, Agents using/recommending the "none deal killer" inspectors to inspect their clients purchase and a tough pain un the A..S inspector for their own purchase.

These are just 2 examples of ethic questions that we see fequently.

What are your thoughts on this and do you have examples of others?

 

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Rainmaker
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Navona Hart
Real Living Cornerstone - Farmville, VA
Selling the Best Properties in Central Virginia

Bob, good thought provoker.  I have often been curious when I have had a listing and similar listing has sold, by an agent that never came in my listing...why?  Or the termite inspectors that never find termites? The list could go on!

Jan 18, 2011 12:03 AM #1
Rainer
146,975
Gary Pike
Better Homes and Gardens Real Estate Metro Brokers - Powder Springs, GA

I don't see an issue in either of your scenarios for myself.  More listings then what the client wants to see, push it back to the client to pick the ones they are most interested in.  With a home inspector I use the same list because I know these people good and do an honest job.  If it kills the deal it kills the deal, there are plenty of other homes for sale.  Great post.

Jan 18, 2011 12:34 AM #2
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Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I can only speak for me. .

I always give my clients a choice of home inspectors, title companies and loan officers.. .

And we show all the available homes for sale.

Jan 18, 2011 12:36 AM #3
Rainer
103,190
Keith Vermilyea
Home Buyers Marketing II, Inc. - Boise, ID

Great post Bob.  Personally I give my buyer clients a choice of inspectors that I have used on my own real estate purchases.  As far as I am concerned a competent home inspector is an insurance policy for both the buyer and their agent.

Jan 18, 2011 01:25 AM #4
Rainmaker
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Sondra Meyer:
Star View Real Estate - Colorado Springs, CO
See It. Experience It. Live It.

Hi Bob, I'll be falling over exhausted tomorrow, but I wanted to comment on your post.  Actually, you've got a great series of things that you've been posting.  I think ethics is an extremely important topic to be discussing.  In College Station, I almost always recommened one inspector - Dan Tucker, by name.   I always told my clients that they can use any inspector they want.  I also told them that conventional wisdom suggests that agents do not recommend a specific inspector.  I also told them that I trust this inspector with my professional reputation.  I fully realize that I could get sued by recommending someone.  Yet at the same time, I trusted this particular inspector enough to do his job that I was willing to risk my professional reputation by recommending him..... The ironic thing is that the "worst" inspection that he ever did was on a house that I not only listed, but I was living in.  And, that house did have it's issues. 

" competent inspector is an insurance policy for both the buyer and their agent."  I agree 100%. 

Feb 22, 2011 05:03 PM #5
Rainer
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Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Sondra: Thanks for your comments. This is always a subject that sparks a lot of debate.

I don't know about your experience but, I'm in Florida and I see Agents attitudes about ehtics vary in different markets. The further South in Florida one goes the more disregard for ethical standards there are. Let me make this very clear, there are great, honest and ethical agents in Soutern Florida. It's just that the number of back experiences increases in this area. habbel

Feb 22, 2011 11:40 PM #6
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

As far as commissions...this is something I explain to my sellers. You don't want other agents skipping your listing because your co-op fee is lower. Is this right for agents to do?   If they have two very similar homes and one has to be eliminated...which do you think will not be shown?

As far as home inspectors, I would, and do, use the same person for buyers and for sellers. He is good, thorough, knowledgeable, has a nice manner and knows what he's doing. In fact, I think I will write a  post about him. We just had an inspection today.

Margaret

Mar 24, 2011 11:49 AM #7
Rainer
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Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Margaret,

I appreciate your comments and believe your standard of ethics are high.

My question is, avoiding one listing due to a lower co-op commission, is it right or wrong?

Aside from explaining to your sellers the downside of offering a lesser commission, How do you handle buyers?

 

Mar 24, 2011 01:14 PM #8
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Rainer
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Bob Publicover

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