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Do You Refer Experts to Your Clients - And If It Goes Wrong?

By
Real Estate Agent with Ansley Real Estate/Christie's International 262285

Does it make sense to refer clients to folks that you’re comfortable using? I’m wondering if it’s best to avoid the “…you said” nonsense if/when things go wrong. Given the public perception of agents, I also wonder if despite our best intentions with recommendations, is that looked at by a client with a jaundice eye?

I recently closed a deal with a buyer that was impossible to please; found fault with everything and everyone. While the home remained a solid purchase and a great fit for their needs, their incessant haranguing and condescending approach to everyone involved in the process was off putting and rude.

Mr. and Mrs. Expert were self-important “internet professors”; you know the type, look it up on the web and whatever is found that works for them is to be taken literally. This isn't unique to real estate of course. In the past, “they say” was the route; now it’s “according to the blah blah website”…

These buyers found fault with everything; the appraisal came in at sale price and comps were challenged, GFI’s were tested by electricians but they had doubts and brought their own tester, a video inspection was demanded for a fireplace used 4-5 times in 10 years after being cleared by a fireplace inspection firm, a noted stucco inspector with 20+ years of experience doesn’t know what he’s doing, ground hornets were not eradicated in a week despite the expert saying the pesticide takes six weeks to impact the life cycle; the GFE was not prepared properly by the lender, not having the completed HUD days before the closing is unacceptable, and on and on and on.

Some of the folks excoriated were my recommendations and it bugged me. I usually suggest two or three folks in a trade that I’ve used in the past and trust to do a good job. Now I’m wondering if this was just a fluke with miserable buyers or if I might back off and let the clients do their own research and selections. Like all of you, my recommendations are targeted toward giving the clients trusted folks, that’s it.

Oh – I was their third agent….I could get a sense of why but I never expected the drama and really rude, condescending, disrespectful behavior that I saw. At the end of the day, they have a great home and things worked out but I just thought I’d toss this out here for opinions….

Comments (24)

Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA
I do refer people I can trust to my clients. In this situation, it sounded like they were going to find fault no matter what. Maybe with clients like this it is best not to refer....although they may find fault with that too!
Apr 26, 2012 01:18 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

We don't 'recommend' anyone, because of what you have described and liability issues.

As a service we provide a list of professionals in various industries, which they may or may not use.

Apr 26, 2012 01:47 AM
Brett Pehrson
Advanced Funding Home Mortgage, NMLS#13287 - Salt Lake City, UT

I think the distinction here is whether you "steer" them, or not.  I know there are a few different schools of thought here, but I say as long as it's made clear to them that any suggested/recommended professionals are just that...suggested and not required.  I don't believe it's necessary to suggest any more than one name, if that's the only professional's name you have to suggest.  The key point here is not to make the client feel forced or pushed into using that professional, and they understand they can use whomever they want.  The next key is to make sure you don't suggest anybody you wouldn't "put your name to," as it was so well put in Comment #2.  If you don't know their work, and give the name anyway, just use a disclaimer that you're not familiar with them...  If you're worried about liability issues, draft a "hold harmless" document for them to sign.

In your particular described case, these buyers are just hard-wired to complain and find fault...you were probably their third agent because at least one of the other agents fired them as clients.  Glad you got the transaction done and made it worth your while.  I'm sure it's a great house, but sleep well knowing they'll be miserable for the rest of their lives in it!

Apr 26, 2012 04:58 AM
Hank Miller, SRA
Ansley Real Estate/Christie's International - Roswell, GA
Associate Broker & Certified Appraiser

No steering...in fact, that's the reason I always toss out multiple names for each. The reason is simple, if I'm referring someone then it's because they've demonstrated a high level of competence and professionalism. If they screw up, I lose their name.

I'll attribute this to a buyer that's happy with having issues on the table...thanks for all the comments

Apr 26, 2012 05:08 AM
Marie Story
Coldwell Banker - Pinecrest (Miami) - Pinecrest, FL
Broker Associate, Pinecrest (Miami) Specialist

I always refer to three names of "whatever", I think it's my job to help my Buyers in that respect.  

We had an agent in our office who would never refer anyone and would tell the Buyers "look one up on the internet".    Well as I said "we had an agent...."

Apr 26, 2012 05:42 AM
Marty & Jaclyn Reiswig
GoodFit Homes (with Keller Williams) - Centennial, CO
Specialty: First-timers

I have no problem referring my clients to other professionals. I think of it a a simple way to add value. However, if one of the individuals I am referring business to fails to impress my clients, I'm eventually going to fail to refer him/her any more business.

Apr 26, 2012 06:18 AM
Anna Tolstoy
Coldwell Banker Residential Brokerage - Natick, MA

I do refer, however, I also suggest they ask  friends and relatives for a referral. If clients ask me for a name I happily refer them to be the recourceful agent who helps clients  in any way possible. But I'm cautious and never push "my guys". I once read in a forum, how a person asked "do we need a home inspection", and people responded "yes, but make sure you DON'T use the home inspector your agent recommends". While this is a strange thing to say, and would usually come from people who don't trust their agent, I'm aware of it when talking to clients. I know "my guys" are good, but if the client believes in his/her sphere of influence - so be it. In fact, I might meet another great professional that way to add to MY database, so it's good for everybody.  

Apr 26, 2012 06:21 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

We are in a small county and there are only so many licensed individuals so we include inspectors from Eureka as well. But I never push anyone. I will say that I have used so-and-so in the past and the client liked their work, for example.

Apr 26, 2012 07:17 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Sadly I'm dealing with clients that are almost as bad.  They are mad that they spent money on a home inspection thinking they did this for the sellers to let them know what's wrong with their home.  HUH!?!? After reading your post I don't feel so bad.  I'm only their second agent.  And yes, I do feel badly when I am asked for referrals and this type of buyer is asking.  I just tell the referred vendor the buyer needs a lot of hand holding.  I blame HGTV for this type of behaviour. 

Apr 26, 2012 08:56 AM
Hank Miller, SRA
Ansley Real Estate/Christie's International - Roswell, GA
Associate Broker & Certified Appraiser

The thing that irked me was the attitude and the idea that "everyone" was trying to just push the deal to the closing table. It's one thing to disagree, it's another thing to do it in a manner that demeans and insults pros in their respective fields.

Fortunately this is the rare exception and these folks will act this way no matter what the situation.

Apr 26, 2012 09:23 AM
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates
Is it their fourth marriage? consider the source and fuhgetaboutit.
Apr 26, 2012 10:16 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Hank, I don't think you could have pleased these folks no matter who you recommended.   Hopefully, they're behind you for good.

Apr 26, 2012 11:29 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I do refer some folks I know and trust... however, I always remind clients to check references, insurance etc. 

Apr 26, 2012 12:19 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Hank, I recently referred a buyer to a lender and a home inspector. I usually provide about three names for each vendor and then let them make the choice. I was a little embarrassed by one of the vendors responses but he did choose a home inspector and lender from my list. The buyer kept singing my praises at the closing. He was very impressed by both vendors. He felt they provided excellent service at a very good cost. As a result, the referrals made me look good. The guy who embarrassed me, won't be on my list anymore.

Apr 26, 2012 01:18 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Hank - I do recommend people, and I understand that if they don't perform it may reflect badly on me so I continue to check on my referrals.

Apr 26, 2012 04:41 PM
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Interesting, how when we spend time with a couple buying a house, we know exactly which is heading for a divorce...

Despite all, if you are "representing" a buyer it is still your job to take care of them and provide them with recommendations...

Eve in Orlando

Apr 26, 2012 08:42 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I didn't read your blog, I just love the pictures of your beagle!  Looks exactly like my River.  :)  Have a great day!              

Apr 26, 2012 09:38 PM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Just move on to the next one. But giving them three professionals from which to choose for anything sounds like a solid business practice.

Apr 26, 2012 09:44 PM
Darrin Carey
Dayton Capital Partners LLC - Dayton, OH
Real Estate Lender for Investors

It's amazing how the internet makes everyone think they are an "expert". Everytime someone says "I googled it" I cringe.

Apr 26, 2012 11:52 PM
Anonymous
Anonymous

OK so it seems like I'm not missing anything - just wanted to sample the audience. This wasn't an issue of incompetence or poor work by any of the folks I suggested, this was simply a case of a buyer that was just bound and determined to be miserable and toss grenades.

 

Apr 27, 2012 04:15 AM
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