Ethics are NOT just for Realtors.....

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

. An agent told us a story that was sad and reminded us that "Ethical" does not...or to our minds...should not....just refer to Realtors.   A friend's son came to her wanting tips on writing on a FSBO with a home sale contingency...not having the agent profit...just doing him a favor..If the son's offer was accepted it saved him a healthy five figures on a luxury priced home with paying no commission. They would talk later about listing his home if he got the house.  Days passed....and the house, in ethicsMLS had an "active with offer" status.    It must be, she thought, that there was another buyer without a home sale ...she extended her sympathy to the Son in an email believing since she heard nothing...sorry that his offer was not accepted but assured him, he had written the best offer possible.

   Fast forward 30 days...Son writes the agent an email....the "active with offer" status WAS his offer....wait ,..wait...it gets better...make that WORSE...and he was listing ...make that ALREADY HAD listed with another Agent ! 

    Hmmm..."Sin of Omission" not telling the agent...her hard money ethicssaving work...paid off.  Violation number two...not even asking the agent to give a presentation. The agent who listed it...has less experience...does less marketing ....Our agent friend is justifiably disturbed by the actions of someone she trusted...and had done nothing but "come from contribution" in offering him advice....as a favor...saving him more than he would have spent hiring her.   Betrayed...oh yes...Uneithical....you bet.   It was probably not any comfort to her...we said people like that have no ethics...and most probably no conscience...Karma takes care of them at some point.  Unethical behavior by Buyers and Sellers can carry no other consequences. She could send him a link to this post...but that would neither right the wrong or teach someone with no conscience not to "use" people.

 garbage To some people...regrettably...relationships are disposable...and loyalty is just another word in the dictionary without any "real life meaning." 

Satisfaction in knowing SHE did the right thing...she "came from contribution"....and he...will just have to wait until Karma catches up to him.

   This has been a "best practices" post brought to you by Sally K.& David L. Hanson,  Broker Associares with EXP Realty honored to be of service for all things real estate in Southeastern Wisconsin.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
624,223
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Well...once again...I will be on the other side of the fence.  My take is this: 

Never write a contract...or explain how to... without compensation. The "discount" could have come on the listing side.  Why would anyone write a contract for free? To anyone? Including friends and family?

Was the buyer unethical?..nope. If you did not have it in writing...well we all know the answer to that. "

They would talk later about listing his home if he got the house."

That does not sound like a confirmed listing to me. That talk should have been done before she shared her knowledge. I would have suggested writing the listing contigent on going under contract on the home...which makes for a stronger offer than being a FSBO does.

Was the buyer's character in question? Only to the extent that he should have had the courtesy to talk to the "free" agent and let her know why he was doing what he was doing.

And finally...exactly what is "less experience" or "less marketing"? I have less experience than many agents in Nebraska and yet I consistently do a great job and have clients that have left the "experienced agents" to use me.

I just closed on two properties and will close a third in a few weeks...all at the highest list price per unit in their communities...with a total gross sales of over $2,000,000 and never put a sign in the yard...or an ad in the paper...nor were they in the MLS or advertised locally.   I received all of the commission. The local agents will think in a few days..."I did not even know they were available". 

Why? Because they are so hung up on their own methods...they forget that there are other methods that work splendidly.

I never assume many things:  That family, friends, or strangers will use me...that they are telling me the truth...that they can or cannot afford to do the deal...that if I help for free now, they will use me later...that someone who only has done one or two deals cannot do a great job...that because I do not know what they are doing, then they must be doing a poor job...that the MLS data is even remotely accurate...that everyone is ethical and fair...that the Bee won't sting me because I leave it alone.  

Sounds like someone got stung on this one.

 

 

Aug 30, 2018 06:04 PM #26
Rainmaker
32,751
Susanne Brown
RE/MAX Realty 9 - Howell, NJ
I work hard to make real estate dreams come true!

I agree that this story illustrates a total lack of charactor and ethics on the part of the "young man". I too believe in Kharma. Sometimes we are lucky enough to see it happen.  

Aug 30, 2018 06:05 PM #27
Rainer
247,612
Gretchen Bradley
Realty Source Inc. - Roseville, CA

I had a similar situation and felt much the same way this agent did.  I truly believe in Karma.  Karma is sweetest when we get to see it in action , though that rarely happens, it is amazing when it does.  Great post!

Aug 30, 2018 06:07 PM #28
Rainmaker
240,107
Sarah, John Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being Realtors® in the Nashville TN Area!

I sometimes wonder if the public really understands how we work. I think they may truly believe that we work on a salary, and if they do business with another agent after we have spent hours and hours with them, that it's no great loss to us, that we will be paid anyway. Theoretically, they may think 'commission' but deep in their heart, think that we're all paid a salary whether we close something or not. 

Aug 30, 2018 06:21 PM #29
Ambassador
3,184,632
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Oh, Sally, I am so sorry this happened to your friend. I absolutely cannot imagine a friend's son doing this to me. It would hurt like a dagger.

That said, I do believe in Karma and I hope that you and your friend are both present to see how that Karma paid back!

I do have to ask - is your friend still friends with the unethical son's mother?

Aug 30, 2018 06:42 PM #30
Rainmaker
442,536
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

And thus the saying we learned on Day of Real Estate School:

Buyers can be Liars

Sellers are not always "Tellers" (of the truth)

Aug 30, 2018 06:54 PM #31
Rainmaker
3,186,456
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

I don't know Debe Maxwell, CRS  that the mother relationship has or will survive he position was that she was "staying out of it" and don't know that she encouraged hin to be up front...or ethical...he is an adult not sure she has nuch influence.

Aug 30, 2018 08:20 PM #32
Rainmaker
1,509,131
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

This reminds me of the winter that I spent about 8 Saturdays showing homes to a friend's son. (Actually - to the son, his wife, their kids, his sister and her husband and kids, my friend, and her husband. What fun!)

When I found the house that fit every one of their requirements I called - and got no reply. After a couple more weeks they admitted they were in the process of buying the rental they were living in. It, by the way, didn't fit even one of their "requirements," but oh well.

Aug 30, 2018 08:22 PM #33
Ambassador
3,184,632
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

So, the snippy bitch in me wants to say that the Mom should have taught the son ethics, morals & built some character many moons ago! It might just be too late now!

Aug 30, 2018 08:24 PM #34
Rainmaker
254,360
Pam Jank
Coldwell Banker Schneidmiller Realty - Coeur d'Alene, ID
Your Coeur d'Alene & North Idaho Real Estate Pro

Unfortunately, way too many of these types of unethical people exist.  I think we have all experienced at least one in our lives.  I'm a firm believer that  “as you sow, so shall you reap.”    Just be sure to get everything in writing in the future, no matter whose son or friend it is... :-)

Aug 30, 2018 08:58 PM #35
Rainmaker
966,585
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Wow!  That's one messy issue. Can't imagine those hurt feelings, disappoinments and frustrations!! 

Aug 30, 2018 09:18 PM #36
Rainmaker
3,186,456
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

The agent comes from contribution and likely will never stop giving...and with that comes the disappointment that not everyone has the same values.

Aug 31, 2018 01:47 AM #37
Rainer
37,755
Marc St Martin
United Real Estate Infinity - Cape Coral, FL
Your friend in the business!

Unfortunately, not everyone is ethical.  It is hurtful when you act appropriately and someone else does not at your detriment. If you are in this business for any length of time, this will happen to you.

I'm curious....if this was a FSBO, how did its status show on MLS?

Aug 31, 2018 05:59 AM #38
Rainmaker
3,186,456
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

The Buyer was listed as an exclusion to the contract Marc St Martin 

 

Aug 31, 2018 07:50 AM #39
Rainmaker
1,217,687
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I think the change is in how many view an action of this type, Sally K. & David L. Hanson ... too many no longer see it as unethical or dishonest.  They see it as "smart" ... and an act of outwitting another person.  They actually take some pride in their actions.  Many have gone that one step further, IMO ... that's the difference ... 

Gene

Aug 31, 2018 09:07 AM #40
Rainmaker
3,186,456
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

I would have to say...Smart is not the term I would use to describe this kind of behavior Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ...Happy LABOR DAY !

Aug 31, 2018 09:09 AM #41
Ambassador
1,239,839
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Great article! Dishonest buyers and sellers out there and not always are upfront with agents Many times they have another agenda.

Aug 31, 2018 10:14 AM #42
Rainmaker
1,049,361
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Happens all the time a free favor gets a stab in the back as a thank you later.

Aug 31, 2018 11:52 AM #43
Rainmaker
3,186,456
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

You have it Kristin Hamilton CA Realtor  and Steve Loynd another agenda and a BIG OUCH !

Aug 31, 2018 11:58 AM #44
Rainmaker
496,265
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Sad story...and happens too often. So many buyers/sellers know agents, have no thoughts about asking for freebies.  There is an agent in my office doing a similar thing to another agent in my office--the second agent has experience with multi family investment property and the first agent does not.  Agent #1 asking her how to write up offers, do inspections, ROI etc and NOT offering her any cut of the commission.  That says a whole lot about agent #1 and her professional practices.

Sep 01, 2018 12:27 PM #45
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
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