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"Open Mouth, Insert Fine" or "Real Estate Roulettel"

By
Real Estate Agent with Fathom Realty West Sound WA State 52404
 

roulette.jpgWith the advent of the Internet, information has become accessible at blinding speed. Want to know the migrating habits of the South African Gnu? What is the proper way to eat sushi? Or what was the original color of coca-cola? Powerful search engines enable us to locate virtually anything we want at the touch of a few keys. Websites, forums, and networks abound where we can obtain answers for every conceivable question. Information equips and empowers. It serves to form our opinions and guides our decisions.

This rapid accessibility and transfer of information is changing the way we conduct business as well. Companies and business professionals are moving away from one-sided, static websites to dynamic, interactive platforms, such as blogging, that allow consumers the ability to directly engage in virtual conversations.

Open and transparent dialog is a welcomed development in the real estate industry. The shrouds of mystery surrounding our profession have been quickly dissipating, offering consumers a well-deserved look into the inner-workings of the real estate world.

But there are inherent dangers to this new-found ‘free-for-all’ of information. And the potentially damaging ramifications exist for either side of the discussion.

Here’s an example of an actual ‘real’ question that was recently posed by a consumer on a popular real estate site:

“We just recently put our home on the market and we’re wondering, what is the selling market like now? What is the average time to sell a home in the $800K range?”

I’m not going to publish the various ‘responses’ to this inquiry (there were 5 answers at last look), but suffice it to say that all of the respondents chimed in with very detailed local markets statistics, jockeying and positioning themselves as the undisputed resident authorities. Almost all of them offered some measure of advice or counsel, and added the ‘perfunctory’ “for more information, my website/email is blah, blah, blah“….

What I found curiously missing was the question that should always be asked right out of the gate:

“Are you currently working with a licensed real estate professional?”

I’m thinking to myself, does this person have their home listed through a licensed agent, or are they attempting to market it on their own?

As real estate professionals, it’s ingrained into us from almost day one (Realtor Code of Ethics, Article 16) NOT to engage, counsel, or solicit someone who is, by contract, under representation by another agent. When in doubt, ASK!
And, as a consumer who is asking the question, how do you know if the individuals responding to your questions are actually ‘qualified’ to answer accurately? Are they licensed in the State where your home is located? Do they know and understand the unique nuances of your particular area? Who holds them accountable if they provide you with misleading or false information?

Now don’t get me wrong. I am thrilled about all the advancements in Internet technology and their impact on the real estate industry. Many of the applications are having a very positive effect, both for us professionals, and for consumers.

But as real estate professionals, in our drive and desire to be helpful, we need to be ethically prudent, and exercise caution on what we say, and to whom we respond.

And, as consumers, though the Internet opens up a unlimited wealth of resources, remember that ultimately, real estate is local. The best way to obtain a qualified response?

Ask a local expert.

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Rich Jacobson is a REALTOR® and licensed Broker with Fathom Realty. He's a Crab Hunter, Clam Digger, and Oyster Shucker, skilffuly vanquishing anything in a shell! He is the Social Media Evangelist for Life on the Kitsap Peninsula & The Western Puget Sound in scenic WA State.

Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

First question out of my mouth, Are you working with an Agent?  Funny, I had a sign call and developed a pretty good dialogue with a woman last week.  Asked the question 3 times, no agent. 

Get to my listing, disclose agency - the husband gets there first- I have only had dialogue with the wife.  He says, oh, we have an agent!   I told him I asked the question several times.  He told me Oh, we just want to see houses on our own first and not "bother the agent".  I said that is their job, to show you homes, and get you acquainted with the homes in your market.  He thanked me, they still didn't buy my listing!!

May 02, 2008 12:47 AM
Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

Rich,

I've see some of these Q and A but shy away from them. I don't mind answering question but I'd like more information before I do. I'd rather not jump in.

 

May 02, 2008 12:48 AM
Kelly Sibilsky
Licensed Through Referral Connection, LTD. - Lake Zurich, IL

We are offering information daily here on our blogs to many, many people who both are and aren't currently working with agents and are actively soliciting new business, don't you think? Makes me wonder...should we be putting that statement on our blogs that says: "If you are working with another real estate agent currently, this blog post is not intended as a solicitation" the way we do on our postcards? We don't do it on our websites far as I know. Of course, a postcard is not something the person requested and when they are on the internet, they are actively seeking information and requesting it. Hmmm...thought provoking.

May 02, 2008 12:58 AM
Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTOR®- myrtlebeachhomesblog.com
Rich that is so true and something I never even thought of asking when starting my responses to questions online.  I need to remember to ask them first off if they are working with someone!
May 02, 2008 01:09 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
I answer questions on Trulia voices for Michigan and that is it. There is always a few that chime in from other states. I don't answer the questions about a house in a different area that I have no access to. I probably should ask but never have wanted to be seen as pushing my services, unless asked. 
May 02, 2008 01:16 AM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Rich,
Great reminder, somehow we forget that all the rules apply online too!  
May 02, 2008 01:29 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Rich- Don't assume that everyone that responds to these questions are REALTORS (R) and are members of NAR. I have been coaching some top producers in different areas of our country and come to find out they are NOT members of any Realtor board, NAR and thus, are not bound by the NAR code of ethics. 

My concern is more for the liability factor of answering certain questions that are putting the agent at risk.  

May 02, 2008 03:49 AM
Scott Cowan
RE/MAX Professionals - Olympia, WA

Rich- You have brought up an interesting point. What we type could get us in trouble if someone was looking to press a point. However, if a consumer asks a question in a public forum I feel we should be able to provide a public answer. We are not soliciting the consumer they are asking for information and we are providing it. Am I missing something?

Best,

Scott 

May 02, 2008 08:05 AM
Bo Buchanan
Blue60.com - Oswego, IL
Blue60.com Directory, For Real Estate Pronulls
Rich - as Scott said, if a consumer asks a question in a public forum - it is akin to making a comment in a room full of people.  Are we prohibited from engaging in these kinds of conversations in public?  I don't think so.  It will be interesting to see the first case come to light in one of these kinds of situations - only then will we truly have an answer. 
May 03, 2008 10:17 AM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS
Rich - It is so hard to shut up sometimes.  When people ask a question of you, and you know the answer, but have to say, talk to your agent, it feels like you are letting them down.  But, you have to.  Thanks for the post.
May 06, 2008 04:56 AM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
I am not against engaging in meaningful dialogue with consumers. We don't live in a vacuum. My point here is that in this particular instance, the consumer was actively marketing their home already, and no one bothered to ask the question, "By Whom?"
May 06, 2008 05:01 AM
Jeffrey deJESUS
eXp Realty of California Inc. - Daly City, CA
Realtor®
This is some great info Rich! Keep these posts coming. I would say more but most of my points agree with what is already said. But again, great post.
May 06, 2008 07:56 AM
Peter Nikic
Broad & Bailey Realty LLC - Valhalla, NY

Rich - virginia makes a good point, sometimes people just don't know when to shut up. that's where you, AR and all this blogging stuff comes in to play. agents will learn how to respond better to online questions, comments, blogs.

practice is important, and the Internet is still new to many people, with new agents coming on-line for the 1st time every day.

thanks for what you do (I know it's your job, but thanks anyway:-)

May 06, 2008 09:19 AM
Elizabeth Cooper-Golden
Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL
Huntsville AL MLS

Rich, Sometimes it is hard to remember that we shouldn't give advice when asked, I'll admit. This is a great reminder. It does make me question when consumers post  needing market info, etc, when they obviously have an agent.  What made them hire the agent they have if they are not informing them of their market, etc.

On another note, I wanted to let you know how well you write and how interesting and very informative your posts are!

May 06, 2008 02:02 PM
Jon Mitchell
Classic Property Management - Santa Clarita, CA
I guess they will learn after they do a ton of legwork and have to watch the comission go to someone else!  Ha Ha!  If someone has a crappy agent, they should dump them before going to look for more info elsewhere.  I am with Elizabeth.  If they don't think their agent is on the level, they need to start shopping for a new one!
May 08, 2008 11:01 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Thanks for pointing this out.  You can never be too careful.  I always like to ask that same question in response to emails - occasionaly they are already working with an agent, but usually not.

May 10, 2008 03:55 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Rich , You do bring up some interesting points. I do want to make sure we are clear on the code. We only have to ask if they are working with another REALTOR(R) prior to entering into a representation agreement(16-9). In the case you have just pointed out I am under NO obligation to ask then that question. AND since they have instigated the contact I can freely answer any questions they ask. However answering questions that are out of my area of expertise is a violation of the CoE(Article 11). What I can't do is interfere with their current agreement or bad mouth their agent. 

It's important to remember that article 16 is not designed to put a strain on aggressive business practices and as Katerina points out it only applies to REALTORS(R). You don't have to be a REALTOR(R) to join AR or Trulia.

Now having said that, interfering with a contractual agreement may be illegal in most States. 

Here's a big one: If you do not have a Buyers Broker Agreement with your buyer then that buyer is open territory. They are not under a representation agreement and I do not have to ask them if they are working with you and even if they say they are, if there is no agreement, then I can very well choose to just snag that buyer and go sell them a house. Not saying I would but it is neither unethical or illegal for me to do so.

Of course we have to decide how aggressive we want to be. I've decided to be very aggressive in my business but I'm also very careful to do it in a polite way. I don't want to alienate any of my peers in my market.

May 11, 2008 08:17 AM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon

of course we also have the "professional" that makes the FSBO or the poster of these feel stupid - worthless and uneducated... boy that is the way to make them want to use a real professional... It always has amazed me - how people forget that this is the prime time to educate someone on the advantages of using a local REALTOR® or to direct the seller or buyer back to the person they hired... instead many will go on and on about how little the poster knows and push them further away from the answer... stepping off my soap box

May 11, 2008 10:22 AM
Alan 'AJ' Nisen California Contra Costa Mortgage Officer
A Large Bank in America - Lafayette, CA

Rich, I agree, the internet opens up a bunch of ethical situations.   And, we have to be aware the consumer may or may not be leading us there on purpose. AJ

May 11, 2008 02:42 PM
Alan 'AJ' Nisen California Contra Costa Mortgage Officer
A Large Bank in America - Lafayette, CA

Rich, I agree, the internet opens up a bunch of ethical situations.   And, we have to be aware the consumer may or may not be leading us there on purpose. AJ

May 11, 2008 02:42 PM