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Do I represent my client or my pocketbook?

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Real Estate Agent with Summit Real Estate Group BRE# 01215778

Do I represent my client or my pocketbook?

Representation is the one and only concern when a Realtor works with a buyer or seller, period!  Most Realtors understand the incredible responsibility taken on when representing another in what may well be the largest transaction of their life.  However there are certain practices that may be interpreted as representing their own pocketbook far ahead of representing the best interest of their client.  Keep in mind that a Realtor has a Fiduciary relationship and responsibility to those they represent.  A Fiduciary is, in the eyes of the law, the highest degree of trust, honesty and integrity that can be given from one person to another.

 

Following are the practices that show a lack of client consideration, in my opinion:

·       Failure to promote a property online in order for the public to know the location, price, size and address.

·       Failing to have someone immediately respond to an inquiry from a potential buyer or seller.  Many agencies demand that these calls be handled by the person with the listing.

·       Failing to install a universal lockbox & a combo lock box in order to have the property shown by all Realtors local or not.

·       Failing to answer incoming calls concerning the property immediately or in a timely manner.

·       Failing to allow the property to be shown.  Homes that can’t be shown shouldn’t be listed.

·       Failing to offer a fair commission.  This practice shows lack of the ability to educate the public on the importance of bringing in the maximum amount of qualified and motivated buyers.

·       Failing to list a home at or very close to fair market value.  This practice leads to a stale listing that most likely won’t sell or will sell far below fair market value.

·       Failing to list the home in the local MLS system.  This is a mistake often made by out of area Realtors that are unaware that their MLS system is different than the local MLS.

·       Failing to put a sign on the property.  The number one selling tool for a home is the sign.  It is the Realtors responsibility to communicate and educate their client.

·       Failing to share a listings in the MLS.  A Realtor may list a home and install a sign but exclude the home from the MLS.  This is a self-serving practice and should be avoided for the benefit of the seller.

Can you think of others?

Your Friend & Realtor,

Tony Lewis RE/MAX of Valencia  www.TonyLewis.com  tonyglewis@yahoo.com  661-702-4720

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Show All Comments Sort:
Luis Iniguez
Option One Real Estate - Fontana, CA
Search Inland Empire Homes For Sale - Short Sale Agent

Very well put.  Make sure you hold your ethcics and be honest with your clients.

Jan 06, 2012 06:07 PM
Vanessa Saunders
Global Property Systems Real Estate - White Plains, NY
Real Estate | Done Differently

Your reputation is your passport. If you don't do right by your clients, you'll get nowhere quickly!

Jan 06, 2012 09:45 PM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

I have read the feedback that you have received and all are very true.  It's about trust - and trust can only be earned with people that don't know.  Reputations are what we have and if we screw them up . . . well we all know that answer.  :)  Thanks for you post.

Jan 06, 2012 10:02 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I have to disagree about the signs. .it is not number one thing to sell a homes. . maybe the #1 thing Realtors use to get buyers or other listings . .only a small percent of buyers actually buy from a sign. .

Jan 06, 2012 10:30 PM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
I agree with many of your points. Call me slow, but I am not making the connection between commission and the explanation. Also, the sign in the yard is not the #1 tool, it is #3 (behind the Internet, and buyer's agents). As I am writing this it just dawned on me that the commission statement reflects the fact at some agents show homes based on commission. Is that he point?
Jan 06, 2012 10:46 PM
Greg Gillespie
GumTree Realty / Genesis Realty Services,Inc - Tupelo, MS
CRS / Broker Owner

I've been reading comments about the sign in the yard being the #1 tool.  I think it depends on whether or not the sign calls go directly to you are an agent on duty...

 

Jan 06, 2012 11:42 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tony, our fudicary responsibility to our client entails six major categories: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care, and Accountability. You've covered a lot of these bases. have a great 2012!

Jan 07, 2012 12:40 AM
Frank Castaldini
Compass - San Francisco, CA
Realtor - Homes for Sale in San Francisco
You should be representing the client of course. But not everything on your list need be. What the client wants should come first. Example: client does not want lockbox...then no lockbox. Go down your list. We are here to make a living helping buyers and sellers buy and sell their real estate. We give advise and they let us know with what they are comfortable. Happy new year.
Jan 07, 2012 01:45 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Failing in any business is not welcomed and has only one purpose which is to teach us something...One thing I will say...today more than ever, being available is the core of any business. How much more so when we are dealing with hundreds of thousands of dollars?  Thank you and good post tony

Jan 07, 2012 01:55 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

If we put our clients first and perform our fiduciary responsibilities, the money will come!

Jan 07, 2012 03:36 AM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Regarding the commission, we are the professional.  It is our duty to help our client sell at the highest net to them.  Allowing them to list with a commission that limits the showings will bring less potential buyers and thus saving a few dollars will cost them greatly.  The self serving part is doing anything just to get a sign on the property.  This is also a flaw that a new agent may be subject to.  In that case the mistakes is more understandable.  However, reputation is everything.  Having a bad reputation hurts those served by that person as well!

Jan 07, 2012 04:23 AM
FN LN
Toronto, ON

Hi Tony - In my area, the seller has the option whether the listed property can be advertised online.  Some do not want their property advertised online even if the listing agent is acting in the capacity of a fiduciary (i.e. the seller is a client).

Jan 07, 2012 05:11 AM
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

I know several who calculate their commission check before actually writing up the offer.

At least the current housing crisis has helped clean the house.......albeit not completely.

They'll all be back after they get done selling insurance, loan modifications and used cars.

Jan 07, 2012 07:33 AM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

We should do our best to educate our clients.  They have the right to choose commission, sign, if listed online, having a lockbox or not, allow easy showings, having the home listed in the MLS.  However many Realtors forget that they have the right to turn down a listing and that sometimes this is the best way to deal with this particular home.

Jan 07, 2012 07:55 AM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

I have to disagree with some of these.  A sign is not the #1 most important selling tool for the house, but it is an important part of marketing yourself.   So I see that one as a total opposite of the way you do.   Some clients don't want signs if they travel a lot or are already moved out because it is a welcome mat for burglers.  I totally get that.    Also, not ALL homes need to be put into the MLS, if you determine a fair price with your seller and find a buyer willing to pay it you are selling the house, not doing a disservice at all.    And sorry to pick, but I also disagree with the combo lockbox.   Those are not customary here and they are much less secure.  I will meet an out of area agent if they don't have access, but don't put a combo on because there is NO way to track it.  And frankly if the client doesn't want a trackable lockbox, so be it.  It's a bad idea, but some people are insecure about strangers, even agents, walking through their home without the listing agent.  That doesn't mean the LA is doing a bad job if they comply with the clients' request.

I get your overall point that agents should represent their clients ahead of themselves, but some of these examples I believe don't necessarily do the job.  Congrats on the feature!

Jan 07, 2012 09:15 AM
Sue Ellett
Synergy Property Group | Spyglass Realty - Austin, TX
Austin, TX, Lake Travis, Dripping Springs

I'm a big believer if you look out for your clients best interest, it ultimately will come back to you and your pocketbook!  Unfortunately, there have been far too many times when I have been talking to an agent who says" I have to have this transaction close" (in other words, I need the money....).  You cannot look out for your client's best interests if it is your commission that is foremost in your mind....

Jan 07, 2012 09:17 AM
Mike Yeo
3:16 team REALTY - Frisco, TX
Great points. We do have to perform for our client since we do work for them.
Jan 07, 2012 10:55 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Well written post.  There's nothing to add to the list.  We do have to take good care of our clients.  If we don't somebody else will.

Jan 07, 2012 12:57 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

There are some examples where circumstances dictate otherwise, but overall this is an excellent list. I can tell when an agent is working for themself and not their client. 

Jan 07, 2012 03:24 PM
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Real Estate Faster - Los Angeles, CA

Well stated post. You provided a very thorough list!

Jan 23, 2012 05:46 AM