This post is a follow up on the last installment entitled “Do What You Know.” In fact this piece should be called “Know What You’re Doing.”
I was at a gathering last weekend. I had anticipated that there would be an awkward moment or two. A friend of ours had just listed and sold his/her home through another broker. There’s always the laundry list of reasons for the redirected business, the sense of betrayal and the complete lack of loyalty. And, being a professional, you’re obligated to be polite and understanding. It’s all part of the occupation. I’m not saying that it ever gets any easier. All I’m saying is that it’s part of the landscape.
Now the misery doesn’t end there. Invariably, part two of the nightmare unfolds. The friend begins to tell you about the trouble he/she’s having with the transaction. That train is never late. Not only were you not hired as the representative you are now being asked for advice. And, even if you do have a solution to the problem you cannot render it. And, even if you could render it, it may be too late already to affect the outcome of the transaction. Things are already in motion that cannot be stopped or altered. It is a very frustrating experience because you know that this would not have happened if you were the listing broker. The seller, our friend, is looking at paying out thousands of dollars more than necessary. He/she was left unprotected and vulnerable.
Whenever you’re buying or selling property and you hire a realtor hire a professional! I know that the preliminary interviews help establish compatibility and rapport but be sure to take it further. It’s the most significant financial event of your life. Take the time to ask qualifying questions. Does the broker know how to handle negotiations around a home inspection or a leaking oil tank? Does the broker have experience selling condominiums? Does the broker have access to services and contractors that might be necessary to remedy defective wiring or plumbing? Will the broker provide several options or just one? How will the broker protect you from the other cooperating broker whose fiduciary obligation mandates that he/she does everything to advance the agenda of his/her client? Will your best interest be the primary focus here? Is this broker the best fit and the most qualified? This is serious stuff. Will you walk down the road with confidence knowing that you’re in capable hands or will you be sitting at a cocktail party knowing that you’ve been compromised and underrepresented?
Please make the right choice. Ask those questions. Align yourself with someone who understands the process and knows how to protect you.
Once again, thanks for reading this post. Your comments and suggestions are always welcome. I can be reached at gary@vppihomes.com or www.vppihomes.com.
As always, this information has been... On the House.
Showing posts with label professional. Show all posts
Showing posts with label professional. Show all posts
Monday, December 7, 2009
Monday, November 30, 2009
Do What You Know
Welcome back to On the House. We took a brief hiatus for the Thanksgiving holiday but are now back in business. We hope that everyone had a great extended weekend and that you were able to spend time with family and friends.
I had originally planned to chat about structured sales until I attended a seminar on bankruptcy. By the way, the structured sale is a fascinating vehicle and something about which everyone should have some understanding. However, there was something about the bankruptcy seminar that was very unsettling and, consequently, the inspiration for the topic today. What follows is directed toward my fellow realtors but is applicable for anyone that is in a position of trust.
First of all, the subject matter itself was daunting. We’ve all heard of the different types of filings that exist but do we really understand them? Do we know the difference between Chapter 7, 11, 12 (yes, there’s a Chapter 12) and 13 bankruptcies? Which one is a liquidation versus a reorganization? Which one is a business or an individual reorganization? Now, the answers are discernible but are they a part of our daily vocabulary? They are not.
It is at this point in the seminar that I became uneasy. The room was full of real estate professionals asking how to best advise their clients about the structure and disposition of a bankruptcy. Even more disquieting were the responses from the speaker; a lawyer who had been practicing law for nearly 30 years. There was seldom a yes or no answer. Most answers were conditional. Most answers had to be qualified. I was left with the impression that every filing was unique enough to rule out any definitive answers.
The only correct posture here for the real estate professional is to give no advice at all. In our challenged market we’re approached daily with the advice that we have to bring more value to the table if we’re going to be viable. We’re told that our survival depends on it. At the same time, our risk management experts tell us to avoid such behavior. We exist in a litigious environment walking a fine line between service and exposure.
The risk management people are right. When asked for advice about anything relating to legal or tax questions the only correct and honest position to take is to tell your client to seek that advice from a licensed professional in that field. I get approached all the time by friends and clients for advice on everything from how to manage an estate to where to make prudent and profitable investments. That last one always makes me smile. I mean, you’re talking to the guy who invested in Gardenburger ™ when it was at 18 ¾.
The final word here is to do what you know. Provide that market analysis. Direct your client to an attorney or CPA. Be available to assist in the marketing of the home if mandated by the other professionals. Don’t give legal advice. Don’t step out of your area of expertise. It’s entirely possible that you are putting yourself in danger and damaging your client as well. There is no upside here.
Once again, thanks for reading this post. I welcome your input on this or any other subject. I can be reached at gary@vppihomes.com or http://www.vppihomes.com
As always, this information has been… On the House.
I had originally planned to chat about structured sales until I attended a seminar on bankruptcy. By the way, the structured sale is a fascinating vehicle and something about which everyone should have some understanding. However, there was something about the bankruptcy seminar that was very unsettling and, consequently, the inspiration for the topic today. What follows is directed toward my fellow realtors but is applicable for anyone that is in a position of trust.
First of all, the subject matter itself was daunting. We’ve all heard of the different types of filings that exist but do we really understand them? Do we know the difference between Chapter 7, 11, 12 (yes, there’s a Chapter 12) and 13 bankruptcies? Which one is a liquidation versus a reorganization? Which one is a business or an individual reorganization? Now, the answers are discernible but are they a part of our daily vocabulary? They are not.
It is at this point in the seminar that I became uneasy. The room was full of real estate professionals asking how to best advise their clients about the structure and disposition of a bankruptcy. Even more disquieting were the responses from the speaker; a lawyer who had been practicing law for nearly 30 years. There was seldom a yes or no answer. Most answers were conditional. Most answers had to be qualified. I was left with the impression that every filing was unique enough to rule out any definitive answers.
The only correct posture here for the real estate professional is to give no advice at all. In our challenged market we’re approached daily with the advice that we have to bring more value to the table if we’re going to be viable. We’re told that our survival depends on it. At the same time, our risk management experts tell us to avoid such behavior. We exist in a litigious environment walking a fine line between service and exposure.
The risk management people are right. When asked for advice about anything relating to legal or tax questions the only correct and honest position to take is to tell your client to seek that advice from a licensed professional in that field. I get approached all the time by friends and clients for advice on everything from how to manage an estate to where to make prudent and profitable investments. That last one always makes me smile. I mean, you’re talking to the guy who invested in Gardenburger ™ when it was at 18 ¾.
The final word here is to do what you know. Provide that market analysis. Direct your client to an attorney or CPA. Be available to assist in the marketing of the home if mandated by the other professionals. Don’t give legal advice. Don’t step out of your area of expertise. It’s entirely possible that you are putting yourself in danger and damaging your client as well. There is no upside here.
Once again, thanks for reading this post. I welcome your input on this or any other subject. I can be reached at gary@vppihomes.com or http://www.vppihomes.com
As always, this information has been… On the House.
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